SPETSNAZ

WHAT THE PENTAGON WON'T TELL YOU... Two EIR Special Reports will.

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tLOBALSHO WOO-... ll$CA1..AT£$ t). SPETSNAZ In the Pentagon's "authoritative" report on the Soviet military threat, Soviet MilitaryPower 1988, the word spets­ naz never even appears. But spetsnaz are Russian "green berets." Infiltrated into Western Europe, spetsnaz have new weapons that can wipe out NATO'S mobility, fire­ power, and depth of defense, before Marshal Nikolai Ogarkov launches his general assault.

ELECTROMAGNETIC PULSE WEAPONS At least the Pentagon report mentions them-but only their "defensive" applications. In fact, they can be trans­ ported by spetsnaz, finely tuned to kill, paralyze, or di­ sorient masses of people, or to destroy electronics and communications. With EMP, as strategic weaponry or in the hands of spetsnaz, the Russians won't need to fire a single nuclear missile to take Europe. Global Showdown Escalates, 525 pages, $250 Electromagnetic-Effect Weapons, 100 pages, $150 Order from: EIR, P.O. Box 17390, Washington, D.C. 20041-0390. In Europe: EIR, Nachrichtenagentur SPECIAL REPORT GmbH, Dotzheirner Str. 166, 0-6200 Wiesbaden, FRG, Phone (06121) 884-0. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh From the Editor Editoral Board: Warren Hamerman, Melvin Klenets1cy, Antony Papert, Uwe Parpart­ Henke, Gerald Rose, Alan Salisbury, Edward Spannaus, Nancy Spannaus, Webster Tarpley, William Wertz, Carol White, Christopher White Science and Technology: Carol White T his edition is being "put to bed" on the day Lyndon LaRouche Special Services: Richard Freeman Book Editor: Janine Benton goes on national television for the first of two half-hour presidential , Advertising Director: Marsha Freeman campaign broadcasts (Oct. 1 and 3) on the global food crisis-a Circulation Manager: Joseph JeMings pressing issue which has been ignored by the Democratic and Re­ INTELUGENCE DIRECTORS: publican nominees for President of the United States. Africa: Mary Lalev�e Agriculture: Marcia Merry The collapse of food production has a direct strategic dimension. Asia: Lindo de Hoyos That is the subject of our cover Feature, an exclusive report by our Counterintelligence: Jeffrey Steinberg, Paul Goldstein East bloc specialists Konstantin George, Luba George, and Rachel Economics: Christopher White European Economics: William Engdahl, Douglas. Laurent Murawiec One month ago in Chicago, a new organization, Food for Peace, lbero-America: Robyn Quijano, DeMis SmaIl Law: Edward Spannaus was founded to mobilize food producers from throughout the free Medicine: John Grauerholz, M.D. world to restore farming before it is too late. This week's Science & Middle East: Thierry Lalev�e Soviet Union and Eastern Europe: Technology section presents two reports to that conference, on the Rachel Douglas, Konstantin George scientific weapons that must be deployed to fight worldwide hunger. Special Projects: Mark Burdnum United States: Kathleen Klenets1cy This kind of political movement is especially needed in the face

INTERNATIONAL BUREAUS: of the "globalist" offensive of the one-world government crowd in Bangkok: Pakdee and Sophie Tanapura cahoots with Moscow. As reported on page 4, the Berlin IMF annual Bogota: Javier Almario Bonn: George Gregory, Rainer Apel meeting considerably advanced the plans for using economic black­ Copenhagen: Poul Rasmussen mail to destroy national sovereignty, keying off the November U. S. Houston: Harley Schlanger Uma: Sara Madueno elections. The national lead story on pp. 52-53 gives the political Mexico City: Hugo L6pez Ochoa, Josejina counterpart-exemplified in President Reagan's pledge of alle­ MeMndez Milan: Marco Fanini giance to the United Nations and the U. S. kowtowing to Moscow on New Delhi: Susan Maitra a series of critical issues-all to "help Gorbachov." Paris: Christine Bierre Rio de Janeiro: Silvia Palacios Concretely, "globalist" David Rockefeller says that the "Mexi­ Rome: Leonardo Servadio, Stefania Sacchi can model" (turning over the economy to IMF dictatorship) should Stockholin: Michael Ericson Washington, D.C.: Nicholas F. Benton, William be applied to the United States. Meanwhile, Norwegian "globalist" Jones Premier Brundtland told Mexicans that they don't have the right, as Wiesbaden: Philip Golub, Garan Haglund a nation, to decide whether or not they will have nuclear power! E1RIExecutive IntelUgence Review (ISSN 02734)314) is published weekly (50 issues) except for the second week In this context, Panamanian President Manuel Solls Palma's ofJuly and last week of December by New Solidarity 38-42) International Press Service P.O. Box 65178, Washington, vigorous call for defense of national sovereignty (pp. is a DC 20035 (202) 457-8840 rallying-point for all patriots. E",."...,. H."",,_rs: &ecutive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, Here in the United States, the efforts by corrupt Justice Depart­ Dotzhcimerstrassc 166, 0-6200 Wiesbaden, Federal Republic of Germany ment elements to silence Lyndon LaRouche and his political move­ Tel: (06121) 8840. &ecutive Directon: Anno HeUenbroich, Michael Liebig ment continue. We draw your attention to the appeal to throw out the ," De...-k: EIR, Roscnvaeagets AIle 20, 2100 Copenhagen OE, Tel. (01) 42-15-00 Boston case, comprehensively reviewed on pp. 56-59, and a back­ 1" Mexieo: EIR, Francisco Dfaz Covarrubias 54 A-3 ground piece on the treasonous nature of the ADL, a key player in Colonia Sao Rafael, Mexico OF. Tel: 705-1295. the "get LaRouche" operation (pp. 61-65) and other meddling in the JfIlIIII' ,"'ripIiort silks: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Sbiajulw-Ku, Tokyo 1988 election. 160. Tel: (03) 208-7821. Copyright C 1987 New Solidarity International Press Service. AIffights �ed. Reproduction in whole or in part without permission strictly prohibited. Second·dass postage paid at Washington D.C., and at an additional mailing offices. 3 montbs-$I2S, 6 months-$225, 1 y_-$396, Single issue-$10 �: Send all address changes to E1R, P.O. Box 17390, Washington, D.C. 20041-0390. •

TIillContents

Interviews Departments Economics

40 Manuel Solis Palma 10 Report from Bonn 4 IMF conference sets The President of Panama discusses A monetarist Hitler-Stalin Pact. November deadline the u. S. attack on his country and After the U.S. election, the plan is calls on the world's nations to 11 Report from Rio to make the International Monetary uphold the Canal treaties. The Brazilian Titanic. Fund the administrative center of a reorganized world monetary and 45 Report from Paris credit system, in which national creditand currency are taken out Voters reject "politics as usual." Book Reviews of the hands of individual sove�ign nations, and run for 46 Report from Rome them by the IMF bureaucracy. 23 The uneven frontier of Drug mafia organizes for 1992. American science 6 Currency Rates A look at W. Spindel and R.M. 47 Andean Report Simons's Frontiers in the 7 Mexico: New IMF scam Chemical Sciences, D.E. CAP, Latin America's Kissinger? Koshland, Jro's Biotechnology, the doolllS Salinas Renewable Frontier, and Ruth 48 Dateline Mexico Kulstad's AIDS. From Peccei to Brundtland. 8 Peru begs from IMF, is offered 'deals' 49 From New Delhi Demand death for drug traffickers. 9 Soviets soon to face energy Science & Technology shortages 72 Editorial 12 Gold 16 Food irradiation-a What is the Soviet Union? weapon in the arsenal All that glitters . against hunger "The greatest need for food 13 Agriculture irradiation technology is in AIDS Update Aflatoxins in the com crop. developing nations, where alternative methods of food 68 AIDS bill: Congress 14 Business Briefs preservation are either nonexistent refuses to face reality or too expensive," Dr. Martin A. Welt, president of Alpha Omega Technology, Inc., Parsippany, N.J., told the founding conference of "Food for Peace ."

20 Approaching the photosynthetic limits of crop productivity Plant pathologist and NASA life sciences adviser Frank B. Salisbury 's speech to the "Food for Peace" founding conference. Volume 15 Number 40, October 7, 1988

Feature International National

34 London's dirtiest network 52 Shevardnadze otTers U.S. out to destabilize Japan more 'new Yalta' plums "Tiny" Rowland's Lonrho firm is fe atured prominently in a major 54 The pro-Moscow bias of effort to destabilize America's the Dukakis team leading Asian ally. By Lyndon H. Some interesting connections to LaRouche, Jr. the East might explain why the Democratic candidate is "viscerally 36 Taiwan's version of anti-military. " Consumers lIock to Moscow from outlying cities to 'Green Party' seeks stand in line for sausages. Basic foodstuffs and other support in Western necessities are now simply unavailable in cities 56 Dismissal' of LaRouche throughout the Soviet Union. Europe indictments sought in Court of Appeals 27 Soviets join U.S. war 24 Food crisis makes Soviet In ordering a retrial, argue against Panama leaders more aggressive LaRouche's lawyers, the Boston District Court ignored the fact that More than ever before in the 38 Panama's Solis Palma the delays which gave rise to the dreadful postwar years, hunger and indicts U.S. war plans juror hardships that led to a famine stalk the Soviet empire, mistrial "were due entirely to the and this is shaping the factional before the U.N. prosecutor's conscious withholding brawls in the Kremlin. U.S. actions against Panama, he of relevant evidence and said, are neither pro-democracy information. " 26 Bitter fruits of the Soviet nor anti-drug , but "an act of piracy war economy without precedent in world history." 60 Dukakis mole in the Attorney General's inner 27 Eastern Europe is pinched 40 The world must uphold sanctum? between the Soviets and the Carter-Torrijos the IMF treaties 61 The case of the ADL of B'nai B'rith: agents of a 31 The deadly milk chain that An interview with Solis Palma. foreign power kills Polish babies 43 Israeli Mossad backs Arab The court ,*,cumentation. 32 The crippled agricultural fundamentalists 66 Elephants & Donkeys system of the Soviet Union 44 Terrorist guerrillas lay The Dukakis student loan rip-off. siege to Colombia 67 Eye on Washington 50 International Intelligence Tight money fanatics criticize the Fed.

68 CongresSional Closeup

70 Nationall News �ITillEconomics

IMF conference sets November deadline

by Chris White

With the world's top bankers , and other sundry so-called 'Mexican' prescription for U.S. worthies departing from Berlin, and their riot and demonstra­ This was the perspective l�id out on Mexican television tion-punctuated annual get-together, the word is being put on the eve of the IMF meeting by David Rockefeller of Chase out, through the usual press channels, that nothing much of Manhattan Bank. Full of praise for the so-called "Mexican interest happened at this year's gathering of the International Model," which has ruthlessly reduced that once prospering Monetary Fund and World Bank. country to hunger and penury over the last six years, David That was the line fed to the Sunday, Sept. 23 New York Rockefeller recommended that the same "Mexican Model" Times by representatives of Citibank and other powerful U. S. now be applied to the United States itself. institutions. It would be foolish, though, to take such remarks So, the behind the scenes word from the conference, at their face value. Both insofar as the public proceedings of about what was said to be agreed, happens to be coherent the conference are concerned, and insofar as the word, now with what one of America's finance community front-men being circulated through "channels," about what really hap­ was lobbying for in advance of the meeting itself. pened, this year's conference has set in motion some really Therefore be forewarned. The "Mexican Model" so­ nasty uglinesses. called, like the kind of policies that have been dictated to the To take the private side of things first. Here things are other major Ibero-American debtors, Brazil and Argentina, particularly ominous for the United States. According to is not only a specific combination of fiscal and monetary European insiders, the major powers from the Group of Sev­ measures designed to shift most rapidly a country's wealth, en industrial nations are supposed to have agreed among in the form of its production pot�ntial and labor, into the bank themselves to coordinate their efforts to maintain what they accounts of foreign creditors: It is also a method of "financial insist on calling "stability," at least through the U. S. elections shock" treatment, designed to create the conditions in which on Nov. 8. a country is forced to so submit. Afterthat , the report goes, anything can happen. Appar­ The shock package is invariably the same. In the Ibero­ ently, the decision has been made, that beginning the second American cases, in the Philippines, and elsewhere, it gener­ week of November, and proceeding through the fourth quart­ ally works as follows. Citibank, Chase, and Bank of America er of the year, the United States is going to be forced to deal will organize a capital flight hemorrhage out of the targeted with the so-called "twin deficits," in the federal government's country's currency and other financial assets. The capital finances, and in the balance of trade. exodus is the means by which a brutal devaluation of the By "dealing with" the deficits, the InternationalMonetary country's currency is enforced, generally in the region of Fund crowd means imposing the same restructuring policies between 50 and 100%. The combination of currency flight on the United States that have up to now been so brutally and forced massive currency devaluation is the means by imposed, with genocidal consequences, on the countries of which the treacherous are able to impose on the merely fearful the SouthernHemisphere . and incompetent, the kind of savage austerity through interest

4 Economics EIR October 7, 1988 rate hikes, tax increases and government budget deficit re­ is portrayedas a divergence between Nicholas Brady, on the duction which make up the "restructuring regime." one hand, now replacing James Baker at the U.S. Treasury The tax increase and deficitreduction side ofth is package Department, and Michel Camdessus, the director-general of was also laid out, on the eve of the IMF meeting, by Demo­ the IMF, Pierre Beregovoy the French financeminister, and cratic Party big-wig and wheeler-dealer Robert Strauss. The Satoshi Sumita, the Japanese central bankchief, on the other. occasion was a seminar for the economic advisers of the Bush What such a line-up might portend is by no means clear. and Dukakis campaign, organized by the Washington, D.C. However in the discussions the reports are that Brady ended public relations outfit, Smick and Medley, named after for­ up opposing the cited Gang of Three on the matters of, first, mer congressional aides to Sen. Bill Bradley from New Jer­ a proposal from Carndessus to increase member states' paid sey, and Rep. Jack Kemp from New York State. Kemp and in quotas by from 50 to 100%; second, a currency reorgani­ Bradley have taken the lead, within the United States, for the zation put forward by Camdessus, to downgrade the dollar, kind of policies put forward by the Basel, Switzerland head­ and a debt reorganization plan put forward by Sumita, and quartered Bank for International Settlements, the central associated with the absent Japanese FiIlance Minister Kiichi bankers' central bank, and the IMF and World Bank. Miyazawa. Foreign dignitaries, like Karl-Otto P6hl of the German The lack of clarity concerns what Brady was up to. He Bundesbank, were brought in to instruct the candidates' rep­ put himself forward as a proponent of continuity with the resentatives on the "realities" of the current financial situa­ policies associated with former Treasury Secretary James tion. Strauss's assignment was to tell the gathering, that no Baker, against the reorganization proposals put forward by matter who won, or what they were saying now, on the the Gang of Three. campaign trail, the requirements would be the same, tax In so doing he was roundly denounced by the senatorial increases and deficitcuts . office of Bill Bradley, on behalf of the Dukakis campaign. What all this amounts to is the determination, over the Since the Baker policy is in the throes of its demise, Brady course of the fourth quarter of 1988, to create the kind of and company will ultimately have to come up with something crisis conditions-if the shock tactics of the "Mexican Mod­ else. el" is any indicator, through capital flight and currency de­ valuation-that will force the incoming President to submit A world central bank to the creditors' demands, as represented by the "restructur­ If it's still a mystery what the new U. S. Treasury Secre­ ing" slogans and policies of the InternationalMonetary Fund. tary will do, there is no such around the intent of the other In this case the organizers of the capital flight would three. The Camdessus currency proposal, to establish the probably not necessarily include the usual villains, Chase IMF accountants' Special Drawing Right (SDR) currency and Citibank, but given their record of loyalty to U.S. inter­ basket unit as a reserve currency, including gold in the cal­ ests, it wouldn't be surprising if they were. More likely it culation of the basket, had been presented before the confer­ would encompass action by that allied section of the financial ence in an IMF background briefing. crowd which operates out of London, Switzerland, and Ja­ The aim of the proposal is to begin the process of replac­ pan, through insurance companies, investment houses, and ing the dollar as the world's reserve currency, while moving raw materials conglomerates. toward a system of currency blocs, interlinked at the level of One of the signals of their intent will be delivered right international institutions like the IMF and the Bank for Inter­ after the U.S. elections, in the second week of November, national Settlements. when 90-day commercial paper, floatedin August to help the The aim of the debt proposal is similar. Sumita and Mi­ U.S. financial system through the election period, has to be yazawa argued for the creation of an escrow account in the refinanced. IMF, into which Third World debtors would deposit their It should also be bornein mind that none of this excludes foreign exchange holdings, where such exist. The escrow things already beginning to come apart at the seams during deposits would then serve as the collateral for bond issuances October. If the decisions have indeed been made to force the which would be used to redeem a portion of outstanding Third crisispace in November, what that will now set into motion, World debt at some discount from face value. as insiders move to protect themselves from what they think The combination of both proposals aims at establishing they are about to unleash, could itself overturnthe proverbial the IMF as the core administrative center of a new reorga­ apple-cart. nized world monetary and credit system, in which national sovereignty is trampledon , and national credit and currency What is Brady up to? are taken out of the hands of inidividual sovereign nations, The public side of the meeting, of course, has a different and run for them by the bureaucrats at the IMF. emphasis, but if the above background is bornein mind, it is Apparently these proposals have been the subject of in­ readily explicable. Most press attention, and the Wall Street tense discussion between Camdessus, Sumita, and Berego­ Journal'scoverage has been exemplary, has focused on what voy for the last several months. Both the currency proposal

EIR October 7, 1988 Economics 5 associated with Camdessus, and the debt proposal associated urr C ency Rates with Kiichi Miyazawa and Sumita, were cooked up during the course of those discussions. Both are equally designed to The dollar in deutschemarks replace the currency regime, and the debt plan, associated New York late afternoon fixing with James Baker, and with the Plaza and Versailles agree­ ments on currency exchange rates. 1.90IA Brady opposed the debt scheme on the pragmatic and - - "- - technocratic grounds that it is ill-advised to transfer "the risk" 1.80 in private banking lending to Third World debtors from the private banks to public agencies. In other words , if the IMF 1.70 were actually to assume a portion of the debt as proposed,

1.60 then what would stand behind that debt, as guarantor of the issuing outfit, is the combination of countries which finance 1.50 and underwrite the existence of the IMF . 819 8116 8113 8130 9/6 9/13 9/10 9/17 The debt would thus not be a liability of the IMF, but a liability of the nations themselves. But who would then be The dollar in yen lender of last resort against the collapse of whichever part of New York late afternoon fixing the world banking system? While stealing Third World assets on theone hand, the proposal is also designed to put taxpay­ 150 ers' money, in bailout guarantee form , behind that portion of

140 the indebtedness which is proposed to be refinanced at a discount from face value . - ...,,--...... 130 "'-r- - - Both reorganization proposals were accompanied by de­ mands that the United States cut its budget deficit and in­ 110 crease taxes. Sopublicly then, the meeting heard proposals which were 110 designed to put major Third World countriesinto a dictatorial 8/9 8116 8/13 8130 9/6 911 J 9/20 9/27 bankruptcy receivership under IMF technocratic guidelines, The British pound in dollars while also elaborating proposals for downgrading the dollar New York late afternoon fixing in the current monetary system, and reorganizing the United States.

1.90 Camdessus, Beregovoy, and Sumita, it can safely be assumed, represent that section of the international creditors 1.80 of the United States who would deploy into capital flight mode to induce the "shock tactics" which would be designed 1.70 - - to force United States compliance with the whole hideous - [Y "V" scheme. 1.60

Fasten your seatbelt I.SO 8/9 8/16 8/13 8130 9/6 9/13 9/10 9/17 They certainly overlook the reality that unlike Mexico or Brazil, there is between $15 and $20 trillion worth of essen­ The dollar in Swiss francs tially unsecured liabilities bubbling the U. s. dollar credit and New York late afternoon fixing banking system. If, as the whispers of the private agreements portend,the intent is a run onthe dollar, in the fourth quarter,

1.60 � J... -- building into a firstquarter 1989 crisis for the next President, "'-"'" "'"� then fasten your proverbial seatbelt. I.SO That kind of shock cannot be organized without uncork­ ing the bottled-up genies of financial blowout. This would 1.40 indeed force changes in the world financial and banking sys­

1.30 tem, and since sovereign states will be among the institutions withthe powers necessary to survive, and bubbled banks not, 1.10 the changes will most likely not be those proposed by Cam­ 819 8116 8113 8130 9/6 9/13 9/10 9117 dessus, Beregovoy, and Sumita, nor will they be to their liking.

6 Economics EIR October 7, 1988 on its debt, in addition t<1 another $27 billion in interest payments." On Sept. 22, the Journal of Commerce published an article where, in language clearer than that of the pompous Petricioli and Gurria, it states that what is "attractive" about the new Mexican offer is that "foreign governments would Mexico: New IMF take turnsguaranteeing that Mexico will pay interest on the bonds over fiveyears ." , scam dooms Salinas It was Venezuelan socialist Carlos Andres Perez, ad­ dressing Harvard University Sept. 21, who revealed the crim­ inal backdrop to Gurria's "system of guarantees." Perez ar­ by Hugo L6pez Ochoa gued for the creation of a "multilateral agency" to manage the Third World debt with the same bond mechanism pro­ The new proposal of the Mexican governmentto its creditors, posed by Gurria, et a1. He also argued the necessity for "the to obtain a reduction in foreign debt payments through a participation of the creditor governments"and for "economic bond-conversion scheme, is being presented as a great "in­ and financial discipline" on the part of the Latin American novation" by Jose Angel Gurria, director of public credit of governmentsas "indispensable collateral." Perez also insist­ the Finance Ministry. We are acting on the basis of our ed that "isolationist or confrontationist"positions on the part "feelings," said Gurria on Sept. 21, to the XXVth Meeting of debtor nations had proven ineffective, an apparent refer­ of Latin American Bank Governors, "because we are doing ence to besieged Peru. things that have not been tried previously. And therefore, Not accidentally, the language of this so-called "Third there are no rules. One must test the waters." World" politician proved identical to that of banker David But even a brief glimpse of Mexico's new proposal sug­ Rockefeller, who received an honorarydegree Sept. 20 from gests that the only thing Gurria is testing is the patience of the Universidad de las Americas in Puebla, Mexico. In the the world's indebted nations. Gurria said, "We are in the presence of such recognized narco-bankers as Manuel Espi­ phase of involving the internationalorganizations in the cre­ noza Yglesias and Emilio Azcarraga Milmo, Rockefeller ation of a world system of guarantees that would favor the threatened: "The economic growth of a country today de­ real reduction of the debt and allow for the development of pends upon the credits it receives fromabroad , on the loans the highly indebted nations through new flows offresh mon­ it gets. Thus, if Mexico or another country takes a very hard ey." stance and shuts the doors to foreign loans, there is the risk According to Gurria, that "world system of guarantees" that that credit will be canceled." Rockefeller stressed that would be made up of "a group of nations . . . who answer his "solution" for Mexico is that the country become part of for the highly indebted nations to the banks of the world" a "North American Common Market." (Excelsior, Sept. 22, 1988). Mexico's debt negotiators, thus, are once more un­ On Sept. 22, speaking from Berlin where the Internation­ masked as the puppets of international usury. The scheme of alMonetary Fund was holding its annual assembly, Mexican Gurria and Petricioli fits in perfectly with the new suprana­ Finance Minister Gustavo Petricioli reported on his lobbying tional economic dictatorship being discussed at the IMF efforts to "convince" the internationalbanks to support his meeting in Berlin, which has already become known as the ministry's proposal to obtain new monetary flowsthrough a new Wannsee Conference, where Hitler prepared his "final bond issuance, as was done six months earlier, that would solution" for the Jews. convert some $7 billion worth of old debt into $4.5 billion That President-elect Salinas de Gortari will follow the worth of new debt at market discount. genocidal path of the De la Madrid administration is a fore­ gone conclusion, and yet to pursue that path will mean Sali­ A one-percent 'solution'? nas's political suicide. The economic depression in Mexico However, as analyst Enrique Quintana writes in the daily is already causing protests among the industrialist circles of EI Financiero Sept. 26, "the spending of one billion dollars Concamin, whom fascist Luis E. Mercado openly insulted in to guarantee the new [bond] issue could allow for a net re­ his Sept. 25 column in EI Universal for daring to say that the duction of the debt by slightly more than 2 billion pesos, and Economic Solidarity Pact caused the depression that is de­ an annual savings in interest payments of $180 million dol­ stroying Mexican industry. lars ....This savings of 1. 1 percent in debt service pay­ Sufficeit to say that if the next Salinas regime is already ments scheduled for 1989 (out of a total of $16 billion) does acknowledged to be still-born-because of the July 6 elec­ not seem to be a solution of the range required." Another EI toral fraud and because it is co-author of the current economic Financiero columnist wrote the same day that "between 1988 catastrophe-the ongoing negotiations with the IMF could and 1991 Mexico will have to pay $27 .4 billion amortization well prove the finalnail in its coffin.'

ElK October 7, 1988 Economics 7 reportedthat "my friends, who are important employees of theIMF," suggested obtaining bridge loans from "ourfriends" to pay the debts to the IMF and World Bank. Silva said that Peru's delegation in Berlin was sounding out Japan, Canada, the United States, and Europe. In return, Economy Minister Salinas declared that Peru Peru begs from IMF, was taking the decision to "reinsert ourselves" into the inter­ national financial community. Apart from his meeting with is offered 'deals' Camdessus, the Financial Times reported that he will meet shortly with the bank consortium led by Citibank, to which Peru owes billions in commercial debt, to "explain" Peru's by Peter Rush new austerity package.

Less than a month after Peru's economy was turned inside Is it all a swindle? out by a joint attack by the International MonetaryFund and Whether, and when, Peru will see any money, is another its Peruvian backers, Peru's Economics Minister Abel Sali­ question. The experience of Argentina and other Latin Amer­ nas met with IMF head Michel Camdessus in Berlin, while ican countries with "bridge loans" is one of delays, frustra­ reports circulated that the IMF was prepared to welcome Peru tion, and often broken promises. Moreover, a bridge loan "back to the fold"-provided it paid up its $0.5-$1 billion only means that Peru's total debt is increased by the amount backlog of arrears to the Fund. of the new loans, and Peru entered into a near moratorium on Salinas's meeting was the first direct contact between the its debt payments threeyears ago precisely because it couldn't Peruvian government and the IMF since President Alan Gar­ service its existing loans. Today Peru is even less able to cia took office more than three years ago, and it ended Gar­ resume debt service payments than it was in 1985. cia's policy of steadfast rejection of any and all dealings with Further, to "sell" the IMF, the banks, and countries like that body. Japan and the United States on the "rescue package," requires The decision to send Salinas to the annual meeting of the implementing even deeper austerity, that will doom any pros­ IMF and the World Bank on Sept. 26-29 in Berlin, was forced pects for economic recovery. The latest measures include on the Garcia government by a crisis that had collapsed the freeing almost all prices while keeping wages frozen, and national currency, the inti, and sent prices skyrocketing, over suspending all government investment projects. Already, as the last few weeks. Once unleashed, the crisis was utilized a result of the chaos created by the austerity measures an­ by certain political currents in the country, including some nounced several weeks ago, the Peruvian peasant federation within Garcia's own APRA party, to argue that Peru had no reports that its production costs have soared five to six times choice but to fold its tent and repeal the Garcia administra­ overnight, while the prices they are paid have only doubled, tion's decision not to deal with the IMF. putting Peruvian farmproduction in jeopardy. Lo and behold, hours after theannouncement that Salinas The entire "package" may prove to be nothing but a cruel would indeed crawl to Berlin, the inti recovered 25% of its joke, a charade intended to ensure the obliteration of the value, many prices that had been increased up to eightfold in nation of Peru. British journalist resident in Peru Nicholas a few days came back down to "only" two or three times their Asheshov, writing in Caretas, reports that when asked pri­ previous level, and food began reappearing on retail shelves. vately, bankers merely shake their heads and say "Oh, what Reports coming out of Berlin have been contradictory on a pity," and that both the IMF and World Bank have no exactly what, if anything, Peru will be offered as the reward concernto aid Peru, and consider it merely a minor "bother," for its capitulation. Peru's El Comercio, the London Finan­ all of which bespeaks of duplicity toward the impoverished cial Times, and other sources all reported that a "rescue plan" country. for Peru is on the table, involving an arrangement whereby Hoy newspaper, linked to the APRA party, ran an edito­ Peru would repay all of its arrears to the IMF. Peru would rial attacking the international Social Democracy and its tit­ receive "bridge loans" from a number of the creditor coun­ ular head Willy Brandt, for th¢ir support for the IMF and tries, since it lacks its own resources for this payment. The World Bank, showing that there is still strong residual op­ Financial Times says that Peru owes the IMF "more than position to returning to the arms of the IMF. Hoy states, $500 million" in arrears-and an additional $3 74 million to "Hence, it is not surprising that ...So cial Democracy today the World Bank. The Peruvian newspaperEl Comercio places assumes an ever less subtle defense of an unjust and oppres­ the figure of IMF arrears alone at a whopping $1 billion. El sive international financial order for the Third World." This Comercio reports that Japan is prepared to kick in some or is the first time members of the APRA party have correctly all of this $1 billion as a bridge loan. identified, in print, the crucial role played by the Socialist More detail was provided in remarks by independent Sen. International in undercutting Peru and Garcia in their fight Javier Silva Rueta to the Wall Street Journal Sept. 28, who with the IMF, and in abandoning them to their present fate .

8 Economics EIR October 7, 1988 Soviet blunders As Protsenko admitted, Soviet investment and manage­ ment practices in the civilian industrial sectors have led to inadequate or hazardous infrastructureand factories. The low wages for nuclear workers don't help, he added: An operator in charge of a reactor like Chernobyl No. 3 earns less than a city bus driver. Soviets soon to face In challenges to Soviet nuclear plants, the complainers had plenty of data to cite. (The spectacular blow-up of Cher­ energy shortages nobyl's third reactor, of course, has been used by anti-nuclear activists in the West, against the further development of cheap, safe nuclear power; the Soviets have given nuclear by Rachel Douglas power a bad name.) In late August, as Izvestia reported on Sept. 1, the Lith­ Nuclear power plant cancellations could lead to power short­ uanian SSR government cut off funding of construction of ages in the U.S.S.R., on top of the food shortages. The the third unit at the Ignalina Atomic Energy Station. The Chernobyl reactor explosion of 1986 sliced into Ukrainian grounds for cancellation were that the original "seismic safe­ energy production, did 8 billion rubles (officially acknowl­ ty margins"were too low-the region has had stronger earth­ edged) damage, made thearea surrounding it uninhabitable, quakes this century, than was assumed for a worst-case quake and caused serious food and health problems for the popula­ at Ignalina-and that "violations" occurred in construction. tion. Its political impact, too, is still being felt. In mid-September, Ignalina was the scene of a thousands­ Challenges to the expansion of nuclear power generation strong protestdemonstration organized by the Initiative Group are coming not only from protest groups, but from the gov­ for the Support of Perestroika, aftertwo firesbroke out at one ernments of some Soviet repUblics. The areas involved, such of its reactors. Radio Vilnius said that "the Lithuanian Gov­ as the Baltic states, are also hotbeds of anti-Moscow ferment ernment and the general public . . '. are resolutely against among non-Russian ethnic groups, so-just as in the case of constructionof the third reactor at Ignalina." food shortages-the energy problem heats up an explosive On Sept. 7, Izvestia said that "constructionof a nuclear­ political situation. powered heat thermal power station near Minsk, Belorussia The share of nuclear plants in Soviet electricpower gen­ has been halted," because of alarm after Chernobyl. It will eration was only 2% of capacity, as recently as 1975. By be reconfigured as a gas-fired powerstation, but will come 1980, it had risen to 12.5 megawatts (MW) or 4.7%. In the on line only in 1993 , not 1989 as originally planned. Radio next five years, it more than doubled, to 28.4 MW, 9% of Kiev reported Sept. 12 on agitation by "anxious residents" total capacity. against the planned expansion of the Nikolayev nuclearpow­ During 1986-90, the capacity of nuclear power stations er plant in the southern Ukraine. On Sept. 7, Izvestia carried was supposed to rise by another 75%, to a total of 50.5 MW. a letter from a reader who was "horrified" at a recent report In the westernpart of the Soviet Union, almost no fossil-fuel from the Zaporozhye Atomic Power Station, that concrete power stations are being added, so the majority of all power was poured for its sixth reactor's containment structure in growth was slated to come from nuclearpower. Nationwide, "half the normative time," even though Zaporozhye has been the growth rate of the nuclear power industry is supposed to the scene of non-nuclear industrial accidents, attributed to be nearly triple the'expansion of total capacity. breakneck construction speeds. Now, the achievement of that goal is in doubt. In Pravda The Soviet nuclear industry's problems, Protsenko said of Sept. 6, Prof. A. Protsenko, chairman of the U.S.S.R. in Pravda, come in the face of "a most acute shortage of State Committee for Utilization ofAtomic Energy, defended energy for the national economy." During his visit to Kras­ the nuclear power industry in tones of desperation, as having noyarsk, Siberia in September, party chief Mikhail Gorba­ contributed economic benefits "that are not fully appreci­ chov remarked, "We have problems both with the construc­ ated." tion of nuclear stations and their siting ....[Bu t] we cannot Chernobyl, he argued, was not a phenomenon peculiar to do withoutnuclear power. " the nuclear industry. Rather, all Soviet industry is falling The Soviets build large plants: Chernobyl's two downed apart! "Incompetence and conservatism . . . during the stag­ reactors (two more were planned) were each 1 MW, while nation years" (the Brezhnev era of 1964-82), Protsenko wrote, each unit at Ignalina is 1.5 MW. The elimination of any one caused "serious malfunctions . . . in various spheres of in­ of them noticeably dents power production. Chernobyl, Ig­ dustry. Numerous accidents in industry, on railroad trans­ nalina, Zaporozhye, Nikolayev-the capacity already can­ port, on ships, and in the aviation sphere were largely the celled or questioned just at these plants amounts to 6-10 MW, result of stagnation in technology and increasing irresponsi­ or from 12-20% of the nuclear capacity planned to be added bility. Chernobylwas one of them." between 1985 and 1995 .

EIR October 7, 1988 Economics 9 Report from Bonn by Rainer Apel

A monetarist Hitler-Stalin Pact vast array. of Moscow-controlled left­ The Soviets will join the IMF as a policeman against Th ird ist and radical groups in the West and the Third World, to assist in the polit­ Worid debtor nations. \- -, ical destabilization of disliked govern­ ments and currents worldwide. Mos­ cow will oversee the looting of the Western economies from inside the IMF. Never before in its more than 40 members of the G-7, the group of sev­ The Socialist International (SI), years of existence has the Internation­ en industrialized Westernnatio ns, the with great influenceand blackmail po­ al Monetary Fund received so much central bank governors of which met tential against numerous leaders of the media publicity as in the days preced­ in Berlin before the IMF session. They developing sector and the industrial­ ing and during its annual governors' resolved to keep the dollar stable by ized nations of Europe, has been as­ meeting in West Berlin Sept. 27-29. coordinated action until early 1989, signed a special role in this scheme. Staged riots by left-wing and radical gaining time to prepare massive aus­ What the SI , under the direction of its ecology groups against the "looting terity for the American people. chairman,. Willy Brandt, did to under­ policy of the IMF" were part of the The Soviets came onto the scene mine Peru's Alan Garcia, what it did orchestrated events in Berlin on those in Berlin prominently. Chief econo­ to destroy and distract the anti-IMF days. mist Oleg Bogomolov and Novosti ferment throughout Ibero-America Both sides, the IMF session and news director Valentin Falin an­ since 1982-with the help of Cuban the riots , were instruments of the same nounced Moscow's commitment to loud-mouth Castro-is now on the policy. Leading spokesmen of both join the IMF and cooperate in "efforts agenda for Europe and the Third World sides have played a key role in dirty to solve the debt problem." Bogomo­ as a whole. counter-operations against new world lov said that because of the dollar cri­ Shortly before the IMF governors' economic order spokesman Lyndon sis and the collapse of the Western session, the SI declared that it had LaRouche and outstanding Third economies, "Capitalism can no longer nothing to do with the "movement World leaders over the past 15 and hope to solve these severe problems against the IMF." On Sept. 9, the SI more years. When Fidel Castro, Willy on its own." The Soviets also offered passed its "Berlin Signal," which Brandt and his Socialist International, to make the ruble a convertible curren­ called for a cosmetic reform of the leaders of the German Lutheran cy, at least for East-West trade and IMF and World Bank, along the very Church, and numerous communist, joint ventures in the Third World. lines spelled out by IMF director ecologist, and liberation theology Most revealing, and surprising for Camdessus and World Bank director groups surfaced as alleged "spokes­ many experts, were Sept. 26 remarks Barber Conable two weeks later. No men for the Third World," it was clear by the former East German ambassa­ end to the conditionalities policy, the that something very phony was afoot. dor to Sri Lanka, Helmut Faulwetter: SI declared, but only a "modification" Why the big show? Remarks by "It would be an illusion to hope a new, of it, and more "consultation," more Michel Camdessus, the IMF general more just world economic order may say for the debtor nations on "eco­ director, shortly before the official come about in the next years. . . . The nomic adjustment priorities." In other opening of the sessions in Berlin, re­ IMF and World Bank deserve to be words, deblor governments should be vealed that all eyes are on the U. S. criticized for their policy of condition­ asked what part of their people they election. He said the consolidation of alities, but they are irreplaceable in­ wish to murder first. the world debt problem could "no stitutions for the foreseeable future. " The net effect of this alliance be­ longer depend on an unstable world What is all this supposed to mean? tween the SI, the IMF, and the Krem­ reserve currency like the U. S. dollar." Moscow is joining in the ranks of lin is to be a brutal, one-worldist re­ Camdessus called for reshaped SDRs Western usury, as a junior partner now, gime bleeding the economies of the (special drawing rights), eventually expecting to become the senior part­ world to death. It recalls the infamous pegged to a basket of several "stable ner soon with the projected decline of 1939 Hitlet-Stalin Pact, which was, currencies," to replace the dollar in­ the United States. after all, an agreement on the joint ternationally. On a parallel track, public attacks looting of the entirety of the European Next came a dirty deal among on the IMF are to be continued by the continent.

10 Economics EIR October 7, 1988 Report from Rio by Silvia Palacios

The Brazilian Titanic in history." Brazil's Congress is moving to nullify thelatest debt agreement According to his contented report, the package involves $82 billion, be­ with the international banks. tween so-called "new money" and re­ financingof old. What Rhodes did not say was that of the $5 .2 billion in new money, $4 billion will go to pay inter­ est arrears from 1987, due to the de­ T he Brazilian Senate has just been the Brazilian economy. clared debt moratorium, and the $1.2 handed a legislative bill which, if they For example, regarding the for­ billion remaining will go to pay 1988 approve it, would rip up the foreign eign debt, the Constitution establishes and 1989 interest charges, which are, debt agreement just signed by Finance that all international agreements must respectively $10.2 billion and $10.5 Minister Maflson da Nobrega with the be discussed and approved by the billion. In other words, 96% of the creditor banks in New York on Sept. Congress. As Planning Minister Joao interest charges due will be paid by 22. The legislative proposal calls for Bautista de Abreu confessed, the eco­ Brazil out of its own resources. the suspension of all international nomic team will have to operate as the Brazil also promises to permit the agreements which have not been ap­ "guerrillas" of the IMF if they are to issuance of $15 billion worth of exit proved by Congress as of Oct. 6-the achieve the goals agreed upon with the bonds, which will enable the creditor date the newly drafted Constitution banks. banks to cash in an equal amount of will be proclaimed as law . Thus, on Sept. 21, the National their debt holdings. "Those who consider themselves Monetary Council sneakily took ad­ That Brazil may fail to comply with experts and who accelerated the [debt] vantage of the fact that the Constitu­ certain clauses in the deal with the agreements to conclude them before tion's articles on the financial system IMF-as Manson da Nobrega sug­ the proclamation of the Constitution, will require complementary laws, to gested might happen when he asked are completely mistaken," said Sen. ram through a decree denationalizing for an IMF "waiver" at the signing­ Severo Gomes, author of the bill. the national banking system. The does not worrythe bankers, as long as Gomes goes on to cite an "American Council revived a 1964 law, written they have their guarantee of uninter­ economic analyst" (apparently a ref­ by free-trader and Gorbachov admirer rupted looting of the country's vast erence to the well-known formulation RobertoCampos, to permit up to 30% wealth. of Lyndon LaRouche) who "compares participation of foreign banks in their In fact, Rhodes has already taken the [debt] agreement to a kind of ar­ associations with domestic commer­ full inventory of Brazil's "converti­ rangement of the seats aboard the Ti­ cial banks. With this one move, they ble" wealth. "Potentially," declared tanic . The image fitslike a glove .... struck down an unwritten agreemel'it, Rhodes, Brazil could reduce its debt When the bankers discover that the imposed by nationalist sectors in 1968, with the commercial banks by more agreement is worthless, it is possible which had effectively suspended the than $18 billion between 1988 and thattheir appreciation of Mr. Maflson Campos law and kept foreign hands 1993, using debt-equity and other da Nobrega's services maychange ; and off the Brazilian banking system. The conversion schemes. his candidacy for the presidency of the Sept. 21 liberalizing measure was ef­ Rhodes's employee at Citibank World Bank will slowly sink, to the fectively imposed by the World Bank Claude Pomper, a renowned magician final strains of the orchestra on board (partof the "tacit" accords), which has with confetti-money, was more hon­ the Titanic." argued for a broader banking reform. est. Until now, he explained, debt for The government's economic team A congressional voteto nullify the equity has worked well in Brazil be­ has been running a race against time debt agreements would be the only cause the Sarney government has to execute all the agreements, both tacit natural response to the great fraud the shown "sufficient flexibility" to toler­ and explicit, that have beensigned with bankers have committed. With the ate informal (read, unregulated) debt the banks before the Oct. 6 deadline, backdrop of an immense Brazilian flag conversion schemes. If the rate of debt when those agreements come into flat behind him, Citibanker William conversion by the Brazil government contradiction with various aspects of Rhodes told the international press that continues, said Pomper, "the medi­ the new Constitution which seeks to the medium-term debt package signed um-term Brazilian debt could be re­ put a halt to the continued looting of with Brazil is "the greatest registered duced up to 36% by the end of 1990."

EIR October 7, 1988 Economics 11 Gold by William Engdahl

All that glitters some $800/oz. in the early weeks of A move by the Oppenheimers signals a global reorganization of 1980, when oil was topping $40/bbl and Russian troopswere marching into critical materials mining and production. raw Afghanistan, it has remained a re­ markably firm commodity, currently near $400/oz. On Sept. 22. a Luxembourg invest­ that you and I do not. The Russian interest in the yellow ment company owned by the Oppen­ Minorco is a Luxembourg holding metal is also far from passive. Narod­ heimer Group, Minorco, S.A., company which is part of a complex ny Bank has just joined the London launched the largest corporate take­ of cross-holdings 67% owned either Bullion Association. The Soviet over attempt in British history. At stake directly by the liberal South African­ Union, next to South Africa, has the was a bid to take full ownership of the London Oppenheimer family or by world's single most important re­ $4.9 billion British-based mining their two corporate groups, Anglo serves of un exploited gold. group, Consolidated Gold Fields. American and De Beers. Minorco al­ Within minutes of the Oct. 19, Minorco, should it succeed-as ready owns 29% of ConsGold, the 1987 stock market crash, the price of seems likely at this time-will trans­ world's second largest gold mining gold shot up to near $500/ounce. Skit­ form the Oppenheimer group, owners group. It wants it all. tish investors scrambled for some hard of the world diamond monopoly ConsGold itself is quite a choice item of value, in fear that the moun­ through De Beers Consolidated, and holding. In addition to two of the most tains of worthless inflatedstock paper the world's largest private gold min­ productive mines in South Africa, it churning around the deregulated ing group, Anglo American, into by owns 49% of a U.S.-based mining "globalized" financial markets would far the world's largest precious metals concern, Newmont Mining. New­ evaporate. Swift and highly secret and mining conglomerate. mont and ConsGold together are two central bank intervention dealt an While ConsGold's chairman Ru­ of the largest operators in what is de­ equally sharp counter-blow to the gold dolph Agnew rather hypocritically re­ scribed by one London gold analyst as holders at that time. jected the bid as a "front-door for the "the world's premier goldfield outside But now, the world is in the initial South Africans to indulge in asset­ South Africa," the Carlin Trend in Ne­ stages of what could be a global reor­ stripping," in actual fact, the bid is vada. They canreportedly extract gold ganization of strategic economic re­ part of a pattern involving global re­ there at a cost of $200/ounce , compar­ sources and metals. organization of critical raw materials ble to the low-cost extraction at South Imagine for a moment that Gov­ mining and production. In recentdays, Africanmines . ernorDukakis becomes President Du­ Canada's Noranda Mines group made Gold is perhaps among the most kakis, and signs the "Dellums Bill," a bid for Sweden's Graenges Explo­ controlled and byzantine of any traded imposing savage economic sanctions ration. Ascher Adelman of New York commodities. This owes to its mani­ on South Africa. This would have the has made a bid for the Lomho group fold role as a central bank reserve, as effect of benefiting all non-South Af­ of Tiny Rowland, which includes gold a consumer item in jewelry and indus­ rican gold and strategic metals inter­ and platinum mining assets estimated try, and as a "hedge against inflation" ests, especially the Soviet Union. at some $2 billion. Some six months for millions of nervous or simply pru­ North American and Australian ago, "junk bond" raider and Drexel, dent investors. Central banks period­ interestswould also benefit, of course. Burnham Lambert ally T. Boone ically sell significant volumes of gold In 1987, according to ConsGold, of Pickens made an unsuccessful bid to reserves through secret dealings with the 1,373 tons of gold mined outside grab Newmont Mining of New York private brokers to keep the attractive­ the communist world, 670 tons were and Denver. "World resources assets ness of the metalsubdued . A stampede mined in South Africa. But some 275 are being rearranged," stated one City into gold under conditions of stock and tons came out of North America, al­ of London financial insider. bond market panic would shift the lo­ most a 350% increase since 1980. The What is behind this, when the price cus of global financial power toward other significant new mining regions of gold has plunged some 20% from Johannesburg and Moscow, away include Australia and Brazil, in both its $500 level of January? Presum­ from New York, London, and Tokyo. of which, Oppenheimer and friends ably, the likes of Sir Harry Oppenhei­ While the market price of gold has would hold a handsome share if the mer's Minorco, S .A. know something come down from its record peak of ConsGold bid succeeds.

12 Economics EIR October 7, 1988 Agriculture by Robert Baker

Aflatoxins in the corn crop its density is reduced, and the number The already low corn crop is suffering a fu rther side effe ct of the of broken kernels increases because the mold consumes carbohydrates. summer' s drought: one of the deadliest toxins known to man. Thus, even afterthis year's drought is over, financial losses will continue to ripple throughout the farm produc­ tion system into 1989, as producers feed livestock the infected com. In Texas, wherethe fungus is more Besides the low yields in the U.S. reduced by as much as 20% if aflatox­ common because of the climate, state combelt, there is other damage from in is detected. officialssuspect that about one-fifth of the drought. One of the most obvious The elevator usually tests for af­ the crop is contaminated with aflatox­ now-as the com comes into the ele­ latoxins by using what is called the in, some at 20 times the level consid­ vators and is inspected-is the high "black light" test. This test is only ap­ ered safe for humanconsumption. Any rate of aflatoxin, a toxic substance plicable to com and consists of shining contamination of 5 parts per 1,000 is produced by microbes, especially in a longwave fluorescent light on whole automatically docked at least 50¢ per drought-stricken com. or, preferably, cracked com. bushel, or about $25 per acre on land Aflatoxin, in high concentrations, As this test gives many false pos­ yielding 50 bushels per acre. is one of the most deadly substances itives, it becomes a great income-gen­ The banning ofEDB (ethylene di­ known to man. Aflatoxin is capable of erating tool for the grain cartel, as al­ bromide) by fanatic action by the En­ wiping out livestock herds and caus­ most all drought com will test posi­ vironmental Protection Agency (EPA) ing liver cancer in humans. It has been tive. The grain conmpanies store this a few years ago has led to the current extensively evaluated in biological grain in separate bins from good com. spread of aflatoxin. This disastrous ef­ warfare research. In the past, its ap­ They can then legally mix a large pro­ fect of the environmentalists' cam­ pearance has been restricted mostly to portion of com infected with aflatoxin paign was predicted by EIR in 1985. the southerncrop-growing areas of the together with a small proportion of In addition to mycotoxins, there United States. noninfected com and sell it at full are other problems developing with But this year, most elevators are price-an old trick the grain compa­ this year's harvest. As farmers put checking new crop com for aflatoxins, nies know verywell . grain in storage, many must wear a and it has shown up in all the combelt According to Tom Romer, presi­ breathing device to filter out mold states, from Iowa to Indiana. Officials dent of Romer Labs, Inc. of Washing­ spores which cause "farmer's lung." in Illinois, South Dakota, and Mary­ ton, Missouri, which specializes in Allen Hamilton, a farmer from Al­ land were the latest to report the toxic mycotoxins, livestock producers face bia, Iowa who has had two episodes substance's discovery. a two-edged mycotoxin sword this of "farmer's lung," warnedin the Sept. In Illinois, a preliminary survey year. Not only is drought com infected 17 Iowa Farm Bureau Spokesman: by inspectors showed that 34% of 58 with aflatoxin, but, because of a com "There's probably been farmers samples randomly collected from grain shortage, com that has been in gov­ who've died from farmer's lung and elevators in the state contained dan­ ernmentstorage for two to three years no one knew it because they attributed gerous levels of aflatoxin. Another 269 will also be fed. Com in storage this it to pneumonia or the flu." The symp­ samples are now being tested. Previ­ long tends to develop a mold called toms of "farmer's lung -fever, chills, ously, aflatoxinhad rarely been found fusarium toxins, which is almost as etc. -are much like flu. in the Midwest, and authorities are at­ bad as aflatoxin. Hamilton reported, "I told the tributing it to the drought. The mi­ This could prove disastrous to doctor it couldn't possibly be the same crobes producing aflatoxin spread un­ livestock producers, as these myco­ thing, pneumonia." He conferredwi th der dry conditions. toxins cause many health and fertility a doctor in Des Moines, Iowa, and In Iowa, the leading com-produc­ problems when fed to livestock. Slow they concluded that he had "farmer's ing state in the nation, farmers are growth rates develop in livestock fed lung." "My doctor told me I only have finding that the price they are receiv­ com infected with mycotoxin molds. so much [resistance] in my system, ing for com at the elevator is being When mycotoxins invade the grain, and it can kill me."

EIR October 7, 1988 Economics 13 I Business Briefs

Debt Tornadojet fighters, anti-aircraft missiles, ropean Parliament members , and is a key and radar equipment. Malaysia will pay lobbyin� institution for "Europe 1992," with Mubarak tours Europe partly in oil and commodities. The sale of "wide support throughout national govern­ the Tornadoes, an advanced jet fighter, to ments , industry, and commerce ," reports the against IMF an Asian nation is unprecedented. Telegraph. The United States has just agreed to go Paris was the first stop on Egyptian Presi­ through with a sale of F- 16 jet fighters to dent Hosni Mubarak's European tour Sept. Malaysia. 27. Mubarak aims at rallying support to Earlier rumors had indicated that the deal Defense Egypt's decision to resist pressures for more would include a second-hand British sub­ austerity from the International Monetary marine, but there is no mention of this in Pentagon delays Fund. later reports . A week earlier, Mubarak had issued a Earlier, in Bonn, Mahathir expressed his contract payments blistering attack on the Fund , even as ne­ fears about the planned 1992 single Euro­ gotiators for his government talkedwith Fund pean market, the Financial Times reported The Pentagon has announced that payments officials. The IMF has been demanding , Sept. 26. At an official luncheon with West to suppliers will be delayed from the usual among other things, an end to subsidized German Chancellor Helmut Kohl, Mahathir seven days to 30 days. The new policy went food prices for the poorest Egyptians-a said, "Europe's move to develop a single into effect, unannounced, the week of Sept. measure whose implementation could top­ European union could turnthe continent into 19. Government officials admitted that the ple the government. Previousattempts to lift a fortress against free trade ." Pentagon's purchasing agents have been in­ subsidies have met with rioting. structed to :hold checks as long as possible Mubarak was scheduled to go from Paris without violating contract terms . to London and then Bonn. "Our companies are all calling us about Egypt is officially being boycotted by European Community it. It's a nightmare. They are seeing big per­ the IMF, which has asked Western creditors turbations in their financialplans . Some will to cut off further credits and is threatening Key 'Europe 1992' have to borrow hundred of millions of dol­ not to reschedule Egypt's $40 billion foreign lars ," declared Jean A. Caffiaux , the vice debt. figure dies president of the Electronic Industries Asso­ "No one can survive a 40% price in­ ciation. crease. It would be butchery ," the Egyptian Basil de Ferranti died in England on Sept. Whether the policy is connected in any President said of IMF demands . According 24 . He was a key figure behind the push for way to recent Pentagon procurement scan­ to the Sept. 27 Le Figaro, Mubarak showed an integrated Europe , embodied in the Eu­ dals is not clear. Pentagon officials say that French leaders a special report on the Egyp­ ropean Commission's "Single Europe 1992" it is motivated by "a cash shortage ." tian economy, describing how much of the act, which would drop all customs barriers IMF conditionalities he has already imple­ to the movement of people and goods begin­ mented. This has led to industrial strikes, ning in that year, preparatory to measures, especially among workers in the textile in­ including a single continent-wide central Poverty dustries. bank, designed to destroy national sover­ eignty. Moynihan: 'Make welfare The heir of the famous Ferranti Elec­ tronics Co. , Basil was descended from a an employment system' Trade 12th-century Doge of Venice, Sebastian Ziani, London's Daily Telegraph reported Mr. "Benign Neglect," New York Demo­ Malaysia, Britain Sept. 26. cratic Sen. Daniel Patrick Moynihan, has In 1973, Ferranti was appointed a mem­ called fot the welfare system to be turned sign arms deal ber of the European Economic Commu­ into an employment system. nity's Economic and Social Committee by Shedding crocodile tears over "the na­ Malaysian Prime Minister Mahathir Moha­ then-Prime Minister Edward Heath. In this tion's poor children," Moynihan wrote a mad arrived in Britain Sept. 24, after visits position, he developed many of the ideas commentary in the New York Times Sept. to West Germany and Belgium. He has been that later became incorporated in the formal 27 which .said that both Houses of Congress seeking to encourage foreign investment in "Europe 1992" scheme . have passed bills which address the problem Malaysia, as well as increased European Reentering the European Parliament in of the "�ent poor." trade . 1979 aftera IS-year absence , he helped es­ "We would take the present mainte­ Three days into his visit, Mahathir and tablish the principles of a movement now nance [welfare] system and tum it into an Prime Minister Margaret Thatcher signed a known as the "Kangaroo Group," and pub­ employment program, with child support preliminaryagreement for a$2 .5 billion arms lished something called, Kangaroo News. from absent fathers, transitional child care purchase by Malaysia. The sale includes 12 The Kangaroo Group now has 200 Eu- and health benefitsfor mothers leaving wel-

14 Economics EIR October 7, 1988 Briefly

fare , and unprecedented automatic funding which has wiped out relatively high-paying for education and training," Moynihan industrial jobs, leaving only the minimum­ • FIDEL CASTRO, the Cuban writes. "A mother cannot work without child pay hamburger-stand "services" jobs whose dictator, told an interviewer for care. A mother cannot work without skills." scale was at issue in the minimum wage France's leftist Lettre Internationale The Times seemed to back up Moyni­ debate . that the IMF/World Bank meeting in han's call with an editorial demanding that Berlin is pointless, because Third "poor children" become a major presidential World "debts can't, by any means campaign issue. whatsoever, be coYected any­ Moynihan does not indicate where the Energy way . . . . A debtors' cartel is still on jobs for the millions of Americans on wel­ the agenda ....In the longer run, fare are to come from, nor what kind of jobs Mexican nuclear plant objective conditions for a big inter­ those are to be, at what kind of pay-scale. will finally open national social revolution are ripen­ ing . "

Mexico's firstnuclear plant is finally sched­ Labor uled to come on line in mid-October. • A HARVARD study commis­ The Laguna Verde plant is set to begin sioned by Congress and the Health Republicans block operations between Oct. 15 and Oct. 20, and Human Services Department according to the head of that nation's elec­ would completely alter the Medicare minimum wage hike tricalworkers union. payment schedule to "reduce the in­ The director of the plant, Rafael Fernan­ centive for doctors to overuse tests , proceedures, and surgical opera­ A Republican filibuster in the Senate has dez de la Garza, called a press conference tions." Surgeons' fees would be cut successfully blocked a Democratic effort to Sept. 21 to defend the plant against environ­ by almost half. raise the minimum wage from the present mentalist attacks . "Either Mexico enters the $3.35 to $4.55 per hour. era of nuclear energy , or the development A U.S. RECESSION "is inevi­ After five days of debate in which Re­ of the country will be stopped," he said. • table, and is scheduled for the second publicans had twice blocked votes on Meanwhile, both the Mexican Socialist quarter of 1989," states the London amendments, Senate Democratic leader Party and the neo-fascist National Action financial journal Global Investor, Robert Byrd on Sept. 26 acknowledged that Party (PAN) have expressed themselves "although the central banks have done the Republican stall had worked. "categorically" opposed to the plant's open­ a remarkable job of holding the world "There is no point in our continuing to ing, Mexican media report . economy together. " pound at their door. I am now conceding that the Republican filibuster has been suc­ • JOSEPH MOBUTU, the Zai­ cessful," said the West Virginian. rean President, responded sharply to At present, 15 million Americans , most Food InternationalMonetary Fund director of them youth or members of families with Michel Camdessus's amazing charges more than one income, receive the mini­ Grocery chains target that "corruption" in Third World mum wage. Republicans and other lobbyists countries was responsible for their against the bill argued that it would cost jobs of hostile takeovers heavy indebtedness. Mobutu called and hurt the working poor. The Chamber of the charge "scandalous," and report­ Commerce, a key lobbying organization Even as the United States girds for potential ed, "The IMF programs cost us $2 against the minimum wage hike, predicted food shortages in the wake of this summer's billion in outflows against only $1 that up to 250,000 jobs would be lost in the drought and the no-production policies of billion in inflpws." An adviser to Mo­ next three years if the bill went through. the Department of Agriculture and food car­ butu called the IMF "neo-colonial­ But Sen. Edward Kennedy (D-Mass.), tel firms, the nation's supermarket chains ist. " chairman of the Labor Committee and the have become the target of hostile takeover bill's key sponsor, vowed, "We will be back. attempts. I am convinced we will be successful, if not Kroger, the nation's second-largest gro­ • THAILAND officially reports this year, then hopefully in the early part of cery chain, is now the target of two hostile 1 ,000 cases of AIDS, but a doctor in the next Congress. " takeover bids. The Haft family, owner of Chiang Mai, in an open letter to Prime. AFL-CIO chairman Lane Kirkland Dart Drugs, made a $4.32 billion offer to Minister Chatichai, said that there are chimed in with an attack on Vice President Kroger stockholders, while Kohlberg , at least 200 cases in that town alone , George Bush, who has said he is in favor of Kravis, Roberts & Co. made a $4.59 billion and that the real national figure may raising the minimum wage, but didn't tell offer. be 10 times the government's claim. Republicans to stop their filibuster. Earlier this year Kohlberg, Kravis suc­ "We have to act swiftly," wrote phy­ The real issue was addressed by no one: ceeded in taking over the Safeway super­ sician Thira Sirisanthana. America's 20-year "post-industrial" drift, market chain.

EIR October 7, 1988 Economics 15 �TIillScience & Technology

Food irradiation a weapon in the arsenalagai nst hunger

An address by Dr. Martin A. We lt, president ofAl pha Omega Te chnology, Inc. , Parsippany, N.J. , to thefounding coriference of 'Foodfor Peace,' Sept. 4, 1988, Chicago.

In 1955, almost 33 years from today, President Eisenhower Act that approved the low dose irradiation of fru its and veg­ proclaimed the Atoms for Peace Program. That program etables for insect disinfestation and increased the maximum should have been the genesis of Food for Peace, since the dosage allowed for the irradiationof spices, herbs , vegetable research on the radiation preservation of food, first started in seasoning, and enzymes. earnestby the U. S. Army Quartermaster Corps in 1943 under a contractto the Food Science Department at MIT, had shown Regulatory inaction remarkable potential . In spite of the eventual action of the FDA , commerciali­ Lack of governmental leadership, however, and bureau­ zation was still hampered by regulatory inaction because the cratic snafus held the program back until 1964, when Food U.S. Department of Agriculture (USDA) now became re­ and Drug Administration (FDA) approval was given for the sponsible for regulation of the labeling and marketing of the irradiation of potatoes to prevent sprouting, and for wheat irradiated product and for inspection of the irradiation facil­ and wheat flourto prevent insect infestation. Instead of rapid ities. In spite of the fact that the USDA had continually progress, the program floundered, and it was not until 1983, expressed interest in obtaining FDA food safety approval for when the FDA approved my petition for the radiation saniti­ food irradiation, particularly for poultry, pork, fruit, and zation of spices, that any positive action was taken by the vegetables, no machinery had been put in motion to gain any United States. We had previously submitted a petition to the benefit from the FDA action. In fact, after a USDA Federal FDA in 1978, calling for the radiation disinfection of poultry Register announcement Jan. 15, 1986 approving the irradia­ for salmonellae. That approval has been awaiting final sig­ tion of pork for trichinae control, administrative measures nature for at least two years, with no reason given for the were taken that have successfully prevented any pork from delay other than that it is "political." being irradiated in the United States as of this date. In 1985, we gained further FDA approvals for insect In spite of USDA pronouncements that government pol­ disinfestation and sanitization of herbs , vegetable seasoning, icy was to find ways to increase exports of U.S. pork, and and dried powdery enzymes, followed by our most important knowing that foreign buyers were sometimes reluctant to accomplishment, the approval for irradiation of fresh pork purchase our fresh porkbecause of presumed trichinae infec­ cuts to control trichinae parasites. The importanceof this last tion, there was still no leadership in overcoming the questions approval was that it represented for the first time FDA will­ raised concerningthe necessaryquality assurance documen­ ingness to endorse the safety of the food irradiation process tation, despite two years of intense and costly effort. for a major food commodity . We fe lt that this would surely open the door for the commercialization of food irradiation, Some basics of food irradiation since United States FDA approval was critical for acceptance To better understand food irradiation technology, let us by developing nations . answer several obvious questions. Food irradiation is a pro­ This optimism was intensified when the FDA shortly cess that utilizes ionizing radiation (energy) to assist in pres­ thereafter issued a lengthy amendment to the Food and Drug ervation of food or to bring about other beneficial results.

16 Science & Technology EIR October 7, 1988 FIGURE 1 Developing sector nations considering food irradiation

,v

The greatest need fo r fo od irradiation is in the developing sector, where now 60 to 75% of fo od products are lost to insects, rodents, or sp oilage.

What is ionizing radiation? Ionizing radiation is a form dards to prevent environmental impact or worker exposure. of electromagnetic energy that is capable of stripping an Why use food irradiation? Food irradiation is actually electron from an atom. In order to be ionizing, the energy more than one process, depending on the dose delivered, and form must be above the electronbinding energy holding it to can be compared to cooking food for varying times and at the atom. The electromagnetic spectrum contains both high different temperatures. Here is a list of the processes and the and low energy forms. For example, microwaves and in­ typical food products treated: frared rays have long wavelengths and relatively low fre­ Sp rout inhibition: Potatoes, yams, onions, garlic. quencies and energies, whereas x-rays, gamma rays, and Insect disinfestation: Fruits, spices, grain, cocoa. cosmic rays have just the opposite. Visible light, ranging Shelflif e extension: Fresh poultry, fish,mango es. from red to violet and ultraviolet have energies between the Pathogen elimination: Poultry (salmonellae), pork. types described. Very high temperatures can also strip an Shelf-stable meals: Prepared packag(!d meals (all). electron from an atom and cause it to be ionized. Virus inactivation: Meats and vaccinps. Can the form of ionizing energy used for food irradiation What are the benefitsof food irrai/-iation? No other meth­ make the food radioactive or somehow leave the radiation in od of food preservation can reduce spoilage for an expanded the food? Both the Codex Alimentarius Commission, an market, reduce energy costs beloW: those of canning and agency of the Food and Agriculture Organization of the United freezing, and eliminate the need fo.. post-harvest chemical Nations, and the U.S. FDA have endorsed only those forms fumigation. of ionizing energy that cannot cause any substance to become Where has food irradiation been ppproved? As of March radioactive. 1988, food irradiation has been approved in Canada, Chile, How is food irradiated? Alpha Omega Technology, Inc. Brazil, Holland, Belgium, France, Norway, U.S.S.R., has developed a computer-controlled pallet irradiation facil­ U.S.A., Japan, India, Thailand, Philippines, Australia, South ity that can transport bulk or packaged products into a spe­ Africa, Israel, Bangladesh, Hungary, Italy, East Germany, cially designed radiation chamber where the product receives China, Czechoslovakia, Denmark, Poland, New Zealand, a controlled dosage of ionizing radiation. The radiation Spain, U.K., Yugoslavia, Argentin�, Finland, Bulgaria, In­ chamber is designed in accordance with international stan- donesia, Korea, and Uruguay.

EIR October 7, 1988 Science & Technology 17 � Dr. Welt discusses his work with participants at 5i the Food/or Peace ]- conjerence.jollowing the if science panel.

. Greatest need in developing sector A commercial facility, such as the patent The greatest need for food irradiation technology in the pending AOT Model T6-V@> pallet irradiator can help a de­ world today is in developing nations, where alternativemeth­ veloping nation increase its hard currency export revenues, ods of food preservation are either nonexistent or too expen­ while extending and preserving domestic food supplies that sive. The ability to extend shelf life is critical where food are free offood-poisoning pathogens. For example, why ship distribution systems are lacking, and the ability to preserve spices from the developing nation to Holland or the United prepackaged balanced nutritious meals without freezing or States for irradiation? The valJe added can be had where it is refrigeration can mean the difference between life and death most needed, and the resultan product can be shipped to the for whole populations in time of natural or man-made disas­ end user for a lower unit cost. Further, methyl bromide fu­ ters. The current situation in Bangladesh and southernSu dan migation can be eliminated, tliereby excluding highly toxic are two immediate cases in point. bromide residues from the spice, while adding to the quality. However, the preparation and stockpiling of the shelf­ Mangoes and other tropical fruit are in great demand in stable (no refrigeration required) radiation-sterilized food must the United States, Japan, andlwestern Europe. Imports of take place prior to the disaster. This requires vision and these products would not impact domestic farmers since the nonpolitical determination to adopt the well-proven technol­ products are not grown or are in very short supply in those ogy that has been used by the U.S. Appolo and Space Shuttle economies. Yet, these products are cheap and plentiful in programs since the 1960s, and by cancer and other seriously many developing nations of the world and, with irradiation ill hospital patients in the United States, Holland, and Great technology, substantial export revenues can be generated. Britain for more than 30 years. Developing nations cannot and should not rely on surplus What about the U.S. farler? handouts from developed nations. Charity food lessens the What about the U. S. farme�, poultry, and livestock pro­ will to seek domestic self-sufficiency. The old proverb, "Give ducer? We sometimes wonder why these individuals are the a hungry man a fishand he is satisfied fora day, but give him only ones in our society who are penalized for being produc­ a fishing pole and he will be satisfied for a lifetime," is tive. If yields go up, prices go down, and economic disaster certainly relevant. Alpha Omega Technology, Inc. (AOT) is close at hand. Two years agb, I proposed to Secretary of believes in this concept and has developed a joint venture Agriculture Richard Lyng a ethodology using radiation program aimed at establishing our proprietary irradiation preservation techniques that might offer a solution. Unfor­ technology in developing nations, with relatively low start­ tunately, there has been no reply or discussion concerning up costs and continuing technology transfer by AOT to help the proposal. . I create economically viable situations. To be successful, the We know that radiation ste 'lization methods can provide program requires the support of the host government. shelf-stable meat, poultry, fish, and shellfishproducts , since

18 Science & Technology EIR October 7, 1988 FIGURE 2 TABLE 1 Typical irradiation facility layout How the experts rank the risks

The Seattle Post Intelligencer recently askedfive experts to rate Office potential health hazards. Here is what t� came up with-from the riskiest (smoking) to the almost risk-free (eating irradiated fo od).

The T6-V@l irradiator 1. Smoking one pack of filtered cigarettes per day 2. Driving in congested traffic every day 3. Removing asbestos containing plaster from a home ceiling without protection 4. Indoor air pollution 5. Drinking two glasses of wine per day 6. Using a woodstove regularly for heat in a home, or living in a valley where woodstoves are used by others 7. Getting sunburned during a two-week vacation every year to Mexico 8 and 9. A tie between (a) getting a full-mouth dental X-ray every two years and (b) using ordinary garden pesticides in a home vegetable garden

Unprocessed Processed 10. Eating a charcoal-broiled steak once a week product product 11. Eating a half-pound per week of bottom fish caught in Elliot warehouse warehouse Bay, Wash. 12. Flying an average of three hours per month on a regular commercial airline Receiving Shipping area area 13 and 14. A tie between (a) eating two peanut butter sandwiches per week and (b) living within one mile of a

Source: Alpha Omega Technology, Inc. Superfund site 15. Drinking diet sodas sweetened with saccharine twice a day In this schematic of a typ ical fo od irradiation fa cility, the 16 and 17. A tie between (a) living within one mile of a garbage unprocessed fo od enters at left, travels around the irradiator on incineration plant and (b) living downwind within 25 miles of a a conveyor belt, and exits at right. Alpha Omega's irradiator nuclear power plant shown here is designed to be economically viable in developing 18. Eating food that has been treated using irradiation sector nations, with relatively low start-up costs.

these materials lend themselves to enzyme inactivation or enzyme-inactivated product for future use by confection­ through blanching (heating or light cooking), so that they can ers, bakers, yogurt manufacturers , etc . be vacuum pouched and radiation sterilized after packaging. We believe this approach is far better than to have the The irradiation itself will not inactivate the enzymes, which farmerplough under a crop to preserve market prices because are very resistant, and withoutblanching , the sterilized prod­ yields were too high. We can never know when a blight of uct would deteriorate while stored. Frozen food is also some kind will hit our farms and eliminate crops we have blanched for this reason. We found that strawberries, stone always taken for granted. Further, it is an economic fact of fruit, and other fruitand vegetable varieties could be prepared life that it is cheaper to preserve what we now have than to in a similar fashion to the meat products and stored for ex­ produce new product. Radiation technology can bring . this tendedperio ds. option home to food producers. We proposed that a program be enacted that would permit Food irradiation, a well-proven method of food preser­ a farmer to maintain freshmarket prices with a portion of the vation, is available to take its place along with other preser­ crop while turning the surplus over to a regional radiation vation methods to help mankind eliminate hunger and star­ processing facility where the product would be preserved for vation. No one method provides a panacea for all food pres­ future sale and use. The farmer would maintain a financial ervation problems and needs, but certainly we owe it to interest in the product, which could be used as collateral for ourselves to use every weapon in the scientific arsenal in our bank loans. When the product is sold by the cooperative or fight to preserve and distribute the' food we are capable of other agency, the farmer would get his share of the profits. raising. We should no longer allow a well-fed and possibly Naturally, we cannot preserve a plump strawberry that well-meaning bureaucrat to deny this technologyto the needy will respire in a sealed pouch, but we can preserve the puree of the world.

EIR October 7, 1988 Science & Technology 19 Approaching the photosynthetic limits of crop productivity

by Frank B. Salisbury. Ph.D.

An address by Frank B. Salisbury, Professor of Plant Phys­ no one has attempted to consider all of them at once until iology, Department of Plant Science, Utah State University recently. at Logan, and member, NASA Life Sciences Advisory Com­ The impetus for finally trying to develop stress-free en­ mittee, to the "Food for Peace" founding conference, Sept. vironments for plant growth was the developing space pro­ 5, 1988, Chicago: gram. After our initial manned forays into near-Earth orbit and even to the Moon, planners of space exploration began Just how much could a crop produce if all the environmental to speak of extended trips such as a manned voyage to Mars parameters were set at optimal levels so productivity was or exploration of the asteroids and of permanent human col­ limited only by the plant's genetic potential? This question onies on theMoon and even on Mars. has interested plant physiologists... agriculturists, and ecolo­ Such projects would almost certainly require production gists almost from the time these sciences came into being. of food in the spacecraft or the lunar or Martian colonies. Although no one has tried to answer the complete question, Thiswould be expensive, since totally artificialenvironments agricultural productivity has increased tremendouslyduring for the growth of plants would have to be produced and the past century as parts of the question were at least partially maintained, but the expenseof resupply fromEarth might be answered. even greater. In the early 1960s , NASA, as well as Soviet Almost a century and a half ago, Justus von Liebig pro­ space scientists, initiated researchprograms to achieve max­ pounded his "law of the minimum" or (as it was later called) imum crop yields in controlled environments. The Soviets "the law of limiting factors ." This principle stated that plant have continued their program to the present, but NASA growth was limited by the one factor that was presented to it dropped theirs until the late 1970s. in the most limiting amount. Thus, it might not help to add In 1981, four projects were funded to study questions of phosphorus fertilizer if there was not enough nitrogen fertil­ maximum yield. One of these, at the University of Wiscon­ izer available in the soil. This principle led to incredible sin, uses potatoes as its crop; another at Purdue University advances as crop physiologists looked for the limiting factors studied lettuce (and now several other crops including oil­ and then supplied them so they were no longer limiting. On seed crops); a project at North Carolina State University a world basis, water is probably the most important limiting investigates soy beans; and we at Utah State University ex­ factor, but the level of carbon dioxide in the atmosphere also amine wheat. There are two or three other related or support­ limits yield, and nitrogen fertilizers are limiting on a world­ ing projects , including a rather recent one on sweet potatoes wide basis. Liebig's law had to be modified in several im­ at the Tuskegee Institute in Alabama. This discussion is based portant ways (for example, it is common for more than one on some of our results with wheat, which proved to be ideally factor to be limiting), but its impact was immense. suited for this kind of work because the nearly vertical leaves To find out how much productivity could be achieved if of wheat plants are capable of highly efficient absorption of all limiting factors were eliminated (by converting them to light and thus can achieve extremely high productivity. optimum levels) requires application of the most modem How can we know when we are approaching the plant's technologies of environmental control. Radiation (light), genetic potential? The key to answering this question is the carbon dixoide (and other atmospheric gases), water, and knowledge that the basic fu nction of plants is to convert light mineral nutrients must all be carefully controlled. Such other energy to chemical bond energy in the process of photosyn­ factors as humidity, wind velocity, acidity, and aeration of thesis, and the chemical bond energy (plant yield) can never the root medium, which often indirectlyinfluence radiat ion, exceed the light energy that is absorbed by the plant. Actual­ carbon dioxide, water, and mineral nutrients must also be ly , it can never exceed some maximum conversion efficien­ controlled and set at optimum levels. Once this is done, the cy. Plant physiologists have been studying photosynthesis plant can grow in a stressjree environment. Plant physiolo­ for many decades, and we now know enough to set some gists define stress factors as those environmental parameters limits on the efficiency of the photosyntheticproce ss. On this that in any way limit yield below genetic potential. Clearly, basis, it is possible to calculate the maximum possible crop the technological challenges are complex, so complex that productivity for a crop irradiated with some known amount

20 Science & Technology EIR October 7, 1988 of light. This calculated maximum productivity can be com­ pared with the observed productivity to see how close the TABLE 1 genetic potential has been approached. Some summary figures on wheat yields as a function of light levels Calculating maximum productivity Light levels There are several ways to calculate theoretical maximum (photosynthetic photon flux) productivity. Here is one approach: In photosynthesis, light (in moleslmeter"/day) 32 86 144 energy is absorbed as individual packets called photons or Potential yield based on quanta. The unit of measurement for these photons is the 15.4% efficiency (gramsl mole. which is a specific number of photons or other atomic meter"/day) 60 162 272 or molecular particles. (The number, called Avogadro's Life-cycle yield (grams/meter"/day) 43 95 137 number, in a gram molecularweight ofthe substanceis very Yield efficiency 11% 9% 7.8% large: 6 x 1023 particles per mole.) The energy in a mole of Short-term yield photons of white light, which is effective in photosynthesis, (grams/meter"/day) 150 is approximately 217 kilojoules per mole (kJ/mol), depend­ Yield efficiency 13.4% ing on the exact spectral composition of the light. The chemicalbond energies in protein, carbohydrate, and Original data in Bruce G. Bugbee and Frank B. Salisbury, 1988, "Exploring fat vary,but we have used an average value for carbohydrates the Limits of Crop Productivity: I. Photosynthetic Efficiency of Wheat in High Irradiance Environments," in press. of approximately 510 kJ/mol. Research on photosynthesis Plant Physiology, suggests that it takes about 12 moles of photons to produce one mole of carbohydrate, so we can calculate an efficiency of 19.6%, which says thatif photosynthesis were functioning TABLE 2 at an optimum efficiency, about 19.6% of the absorbed light Dependence of space-farm size on irradiance energy could be converted to the chemical-bond energy of Grain Farm size Power carbohydrate. Irradlanee (moll (gramal (met.ral (kW/person) But there is more to consider. To begin with,some of the meter2/day) met.ra/day) person) light energy will be reflectedor transmitted by the leaves and 32 18 43 10.3 thus not used in photosynthesis. In our system, 98% of the light energy is absorbed, so this reduces the maximum effi­ 86 41 19 11.4 ciency only to 19.2%. A more important consideration is the 144 60 13 15.6 fact that the plant is not only making carbohydrate and other compounds in the process of photosynthesis; it is also using themup in theprocess of respiration, a process thatis essen­ differences between the observed efficiencies and the calcu­ tial to maintain the plant and keep it functioning. Exactly lated ones. how much is used up in respiration will depend upon several factors such as temperature, but a good average number is The wheat experiments 20-30%. Taking the most optimistic value of 20% , we reduce To see if we could do better than has been done in the themaximum possible efficiencyof theplant to about 15.4%. field, we have purchased and modified three plant growth So, considering real plants that are respiring as well as pho­ chambers in which it is possible to produce light levels equal tosynthesizing, about the bestwe can ever hope to achieve is to sunlight at noon on June 21 and to controlsuch other factors about 15% of the light energy converted to the chemical­ as carbon dioxide, water, and mineral nutrients. The nu­ bond energy of food. trients are provided in solution in a hydroponic system. The Actual efficiencies have been measured in the field by solution circulates rapidly around the roots so that it always many workers . Typically, the efficiencies are less than 1 %, contains ample oxygen, and its exact composition is the best but world records for crops that photosynthesize by the C3 that we know how to concoct (although it is reasonable to pathway (wheat, rice, legumes, virtually all fruits and vege­ thinkthat we can improve it with furtherresearc h) . We have tables, etc .) have reached 7.4% for the short periodof max­ otherfacilities that we use in these studies, including a green­ imum growth, but only about 2% for the entire life cycle. A house bay that provides environmental control almost as good few plants photosynthesizeby the C4pathway (maize, sorgh­ as that produced in our growth chambers. um, sugar cane, other tropical grasses, and so on), which is High-pressure sodium and metal halide lamps provide somewhat more efficient when carbon dioxide levels are as the key to controlled-environment studies such as ours by low as they are in the Earth's atmosphere and when water is making it possible to produce high light levels. (These lamps limiting. These have reached 10.2% for themaximum growth arecommonly used for streetlighting .) Untilthese came into phase and 3.7% for the entire life cycle. It is reasonable to use a few years ago, growth chambers could only produce imagine that factors other than light are responsible for the about a fourth of solar light levels.

ElK October 7, 1988 Science & Technology 21 In one of our most successful experiments, plants were grown at a temperature of 20°C day/15°C night with 20 hours of light per day, providing, at the highest light level, about two and one half times as many photons per day as could be achieved with natural sunlight anywhere on Earth . Carbon dioxide was elevated to 1,200 micromoles per mole of air, which is three to four times the carbon dioxide levels in the Earth's atmosphere during the past century. (In earlier stud­ ies, we had determined this to be an optimum carbon dioxide level.) Water and mineral nutrients were provided as noted above, and humidity and air velocity were also controlled. We used the wheat cultivar Yecora rojo, which had performed the best in many previous trials; different wheat cultivars respond quite differently in our optimized conditions. We planted 2,000 wheat plants per square meter, which is 5-10 times as many plants per square meter as are normally planted in the field. We have gone as high as 6,000 plants per square meter

in some experiments ! We used six different light levels, two One of the growing chambers the experiment descr�bed by in each of three chambers. Salisbury. His co-researcher, Bruce Bugbee, here lifts up We found that total biomass (roots, stems, leaves, and the rock wool base of the nWnf- WrmnrT system to show the dense root system of the plants. The inside walls of wheat grains) increased with increasing light levels all the the chamber have mirror to maximize reflection of way up to the highest light level that we used; there was no light, and at left is the reflection the open door of the grow- sign of leveling offat the highest light level. The efficiency ing chamber. of conversion of light energy to chemical bond energy was highest at the lowest light level; about 11%, which is higher than anything ever observed in the field and not very far grow enough wheat to the necessary 780 grams per below the calculated maximum efficiency discussed above . day. At the highest light level, efficiency dropped to about 7%. I for one would hate to be dependent for my life's food on a farm that size that had to at maximum efficiency The harvest index with no foul-ups! Thus, a farm will probably be quite a From the standpoint of food production, the harvestindex bit larger to provide a margin safety and to allow the use is extremely important. This is the percentage of total bio­ of lower light levels, not to the growth of several mass that can be used as food. Harvest index increased in our crops besides wheat, many of will not be as efficient study from about 40% at the lowest light level to about 45% as wheat. Table 2 shows figures for productivities at at the highest light level. The calculated efficiencies are based differentlight levels based our experiment. At the low- on the entire life cycle, and thus will necessarily be lower est light level, 43 square would be required to feed a than the potential efficiency, because it takes time to develop single person. Assume an light level at which the canopy before light is absorbed efficiently. Based on 20 meters per person would be and consider a farm photosynthesis measurements that we made during the period about the size of an football field (5,000 square of maximum growth after the canopy had developed, we meters). Such a farm could food for about 250 peo- achieved efficiencies of 13.4%, which is getting amazingly ple. A farm that size, at the average present effi- close to the calculated maximum efficiencyof 15%. ciency for all the world's crops support only one or two Say that a person requires 11,700 kJ of food energy per people, to give some idea between everyday day (2,800 kilocalories). One hundred grams of oven dry Earth farming and an controlled agriculture in a wheat (or equivalent food) contains about 1,500 kJ of food lunar colony. energy. Thus 780 grams of oven dry wheat or equivalent These studies have at least partial answers to would be required each day for each person. If this food is the original questions, and important for NASA, they produced in a space farm with the maximum light level used have shown that space is an achievable and worthy in our experiment (60 grams per square meter per day of goal. Do they contribute to Earth-based agriculture? edible wheat), only 13 square meters would be required to So far, we haven't given much to such contributions, produce food continuously for one individual. That is an area but we have every reason to that consideration of our about the size of my office (a little over 3 by 4 meters , or 10 experimental results and their implications should indeed by 14 feet) . Such a farm, producing a crop in 79 days at contribute to the solution of some of the problems discussed which time another crop would immediately be planted, would at this conference.

22 Science & Technology EIR October 7, 1988 "interrogate" or probe. For example, high-power ultraviolet lasers can generate large numbers of fast hydrogen atoms Book Reviews which canbe studied as they collide with simple molecules. Lasers have also been used tostudy thedynamics of single molecules in the gas phase. Short-pulse lasers down to the range of femtoseconds (or a tiny fraction of a second which is one second divided by 1015) open new doors for study . Other broad areas discussed include chemical analysis, the­ The uneven frontier oreticalchemistry , chemical catalysis, organic synthesis, the chemistry of life processes, and the chemistry ofnew mate­ of American science rials. Among the new materials discussed are bioglass (sur­ face-active glass), conducting organic solids, microelectron­ ics, and new polymers with extraordinary physical proper­ by Warren J. Hamennan ties. In contrast, unfortunately, the volume on Biotechnology lacks bothan insi ghtful scientificorientation and a breadthof scientific selections off the narrow tight-wire of molecular Frontiers in the Chemical Sciences biology. Instead, the book is deluged with pieces on molec­ ed. by W. Spindel and R.M. Simon ularbiology technique, technologies, and engineering to the The American Association for the Advancement imbalance of basic science itself. Topics covered include of Science (AAAS), Washington, D.C., 1986 immunology, developmental biology and cancer, hormones 592 pages with index, $17.95 paperbound, and metabolism, food and pharmaceutical applications, vi­ $29.95 hardbound rology, plant sciences, and behavior and sensory phenome­ na. For some inexplicable reason, the editor chose to ignore rich areas of research where biology and physics intersect, such as magnetic resonance and particle imaging, bioelec­ Biotechnology. the Renewable Frontier tromagnetics, laser research of living systems, basic photo­ ed. by D.E. Koshland, Jr. biology research into photosynthesis, and the geometry of AAAS, Washington, 1986 DNA and otherkey biological molecules. 384 pages with index, $17.95 paperbound, The third volume on AIDS, ironically, which one would $29.95 hardbound have suspected to have the broadest interest, is, in fact, the most narrow and straitjacketed scientifically. This reflects thefact thatwe have not mobilized a crash scientific effort to conquer this virus. This also reflects the fact thatthe articles AIDS and areas of research which the journals Science and its ed. by Ruth Kulstad British counterpartNature allowed to be published in their AAAS, Washington, 1986 tightly controlled referee system were selected so as not to 653 pages with index, $19.95 paperbound, deviate from the predetermined official line of the day . $32.95 hardbound Thus, the book will certainly be a reference on the shelf of specialists, but of more limited value otherwise. The an­ Each of these three books consists of article reprints first thology documents how a hyper-specialized "in-group" of published in Science, the official journal of the American molecular biology cancer researchers and specialists in ab­ Association for the Advancement of Science (AAAS), be­ normalviruses isola ted, characterized, and broke the genetic tween 1982-85 and therefore gives a snapshot of how the code of the AIDS-causing virus in record time. Yet, after American scientific establishment evaluates the research ad­ fully cracking the 9, lOO-plusnucleotide sequence in the code vances in the areas of chemistry,biology , and AIDS research perfectly, the researchers were seemingly more in the dark during these critical years . thanbefore . Using variations of basicallysimilar approaches, Of the three scientific domains covered, I was surprised science has fallen further behind the tricks of the virus, the to discover that the Chemical Sciences anthology presents more that molecular biology learns. A breadth of fresh ap­ the most dramatic and exciting research because it was the proaches on research is what we urgently require from such most "tuned in" to the modem laser age. Physical chemists areas as: studies of mitosis, the magnetic field and resonance studying the dynamics of chemical reactions have experi­ properties of living tissue, and the functioning interfacebe­ enced a revolution by using lasers and other precisely tuned tween the brain and neurological and immunological sys­ coherent radiation sources. Laser pulses can create initial tems. One hopes that future research anthologies will not chemical reaction states which additional laser pulses can seem so ingrown.

EIR October 7, 1988 Science & Technology 23 �TIillFeature

Food crisis makes Soviet leaders •

( more aggressive

by Konstantin George

The Soviet Union is now in the midst of its worst food crisis since the dreadful early postwar years of 1946-47, although this time there is no war and occupation to blame for the disaster. The food crisis is the top item on the Soviet agenda. It is shaping the intense factional brawls in the leadership, and it has momentous strategic implications, because of the probability that Moscow will be propelled into military adventures. The food crisis in the Soviet Union and Eastern Europe marks the end-phase of the postwar Soviet empire. It has occurred as a result of the economic arrange­ ment within that empire: long years of deliberate neglect of the Soviet civilian economy, offset by Soviet looting of Eastern Europe. This process accelerated during the 1980s, under the forced tempos of military-strategic build-up, known as the Andropov-Ogarkov War Plan. EIR 's founder and contributing editor, Lyndon H. LaRouche, Jr. , commented on these Soviet developments, in a Sept. 24 memorandum. "In the July 1985, first edition of EIR 's Global Showdown report," LaRouche recalled, "I emphasized that the Soviets' [Marshal Nikolai] Ogarkov Plan of pre-war economic mobiliza­ tion of new military potential, which had begun during 1983, would run its course after approximately five years . I forecast that if Moscow continued to follow the mobilization policy then in progress, which I identified by the label 'Plan A,' the Soviet economy would reach the threshold of a worsening physical-economic crisis about 1988-89. We have reached that point, and the first signs of a severe physical-economic crisis are in full eruption." On the causes of the Soviet crisis, LaRouche explained: "In the Soviet lexicon, the relevant term is 'primitive accumulation,' a term which 1920s Soviet econo­ mist Yevgeni Preobrazhensky adopted from his studies of the work of Rosa Lux­ emburg. This term references the looting of previously accumulated physical capital as a source of wealth for capital formation, or, for military mobilization. 'Primitive accumulation' draws stored-up, previously invested physical wealth from land, basic economic infrastructure, human bodies, and even sectors of manufacturing. One analogy from Westernpract ice, is the case of the firmwhich ,

24 Feature EIR October 7, 1988 Eastern Europe has been savagely looted to allow the Russian war build-up . Now, the limits of that policy are being reached. Shown here are Romanian peasants, and a Soviet T-72 tank on parade . by failing to spend for needed repairs, treats 'saved' costs of food crisis and related economic disJters within the Bloc. depletion, depreciation, and maintenance as current gross At the moment, one of the more likely prospects for a Soviet operating income of the firm; if this continues, the firmcol­ military adventure is the chain-reaction effects of a Balkan lapses into bankruptcy. crisis akin to that which set off World War 1. As I warned "So, during the recent fiveyears , Moscow has intensified back during 1986, the prospect of the now-erupting crisis in savagely its looting of the captive nations of EasternEurope , Yugoslavia could be the trigger which embarks us all along has cut back on essential projects in Soviet basic economic the road in the direction of a threatened general war." infrastructure, has depressed the physical income and con­ ditions of life of most of the Soviet population, and has even No quick fix I allowed its vital Soviet machine-tool industry to fall out of The urgency of the food crisis was underscored by Gor­ repair. All for the past five years' mad drive for absolute bachov in his Sept. 14 speech in Noriilsk, Siberia, where he strategic military superiority over the West. called the food crisis "our top priority." At a Sept. 23 meeting "The Soviet strategic plan, for achieving a state of war­ with Soviet media leaders, Gorbachov said that a Central readiness by the end of 1988, was the work of a team of Committee plenum early in 1989 would deal exclusively with leaders under the direction of, chiefly, former KGB chief the agrarian problems. Yuri Andropov and his long-standing crony, Marshal Nikolai The food crisis will not go away tomorrow, or even in the Ogarkov. The unexpected death of General Secretary Andro­ next few months. Leonid Abalkin, director of the U.S.S.R. pov caused a lag in implementation of the Andropov-Ogar­ Academy of Sciences Economics Institute, already predicted kov 'reforms' over nearly two years, until the appointment even worse food shortages in 1989 and 1990. of an Andropov 'crown prince,' Mikhail Gorbachov, in March The worst Soviet food crisis since 1946-47 occurs under 1985. Gorbachov resumed the implementation of the Andro­ conditions of drastically reduced Wdstern food production, pov-Ogarkov Plan fu ll-force, by aid of a rather desperate caused by policies of underproduction, and aggravated by game of 'catch up .' ... this year's North American drought. As the crisis worsens, "Essentially, Moscow is caught, increasingly, in a choice Moscow will be increasingly tempted to undertake aggres­ between extraordinary military adventures, during 1989-1990, sive thrusts outward, to seize or otBerwise guarantee food and dismantling the Plan's implementation, to a large degree, supply rights from such areas as We tern Europe, which, in at least, to redirect political and economic resources to the Moscow's eyes, are "food surplus" r gions.

EIR October 7, 1988 Feature 25 This was the state of affairsbefore the 1988 grain harvest. Now, Soviet announcements have made it clear that the har­ vest is a failure. In August, Soviet television acknowledged that drought in Siberia and Kazakhstan and floods in the southwest "black earth" regions had caused major damage, while Pravda reported from the Kazakhstan com belt, "You will not be able to call this a rich harvest." On Sept. 16, Bitter fruits of the General Secretary Gorbachov stated that this year's harvest would be "below that of last year," which was reported at Soviet war economy 211 million metric tons, because of poor yields in drought­ stricken Kazakhstan, Siberia, �nd the Volga region. Prelim­ by Konstantin George inary estimates put out from Soviet government sources are that the grain harvest will reach, at most, 205 million metric tons, but could, as the Frankfurter Allgemeine Zeitung con­ According to a September survey of 140 towns and small veyed it, "very well be only 190 million tons." The woefully cities in the Russian Republic, published in the weekly Mos­ inefficient Soviet storage and tnlnsportsystem will, as usual , cow News, supplies of meat, fish, and dairy products have reduce the actually consumable grain by as much as 20% . vanished in most of them. Every day, reports the weekly The minimum required for Soviet consumption is ap­ Ogonyok, hundreds of Russians arrive in Moscow by train proximately 235 million tons of grain. In other words , there from outlying cities, in search of sausage for sale. Through­ is a deficit of at least 40 milliop tons, probably more, to be out the U.S.S.R., sugar has long since disappeared, while covered with imports . (Only with the 1978 record harvest of fruit and vegetable supplies are limited and highly erratic, 237.2 million tons did the Soviet Union come within range even in season, except at the private peasant markets and of producing its own requirements in grain. In 1979-85, the cooperatives, where they fetch exorbitant prices. grain harvest averaged around �90 million tons. In 1986-87, The situation is no better in the Ukraine, and is disastrous it supposedly made it back up to the 210-211 million ton in even the traditionally food-surplus regions of the Tran- range, although those figures were likely puffed up so that . scaucasus. In the Transcaucasus republics of Georgia, Ar­ they would portray a positive impact of perestroika .) After menia, and Azerbaijan, which are chief Soviet fruit- and average imports of 30 million tons per year since 1979, ex­ vegetable-growing areas , these items have disappeared from cept for 47 million tons in 1981-82 and a record 55 million the shelves, as has meat, which is strictly rationed. In fact, tons in 1984-85 (these followed harvest disasters of 158 mil­ rationing has already been extended to most of the Russian lion tons and 173 million tons, respectively) , the Soviets are Empire. heading toward an import total of 40 million metric tons or Worst off, however, are the Turkic republics of Soviet more of grain for 1987-88. Central Asia. Meat consumption in Uzbekistan, the Many observers see a "winter of discontent" looming U.S.S.R.'s third most populous republic, is officially report­ inside the Russian Empire. ed at a mere 30 kg . (66 lbs.) per person per year, or a little over l Ib. per week . The average for the entire U.S.S.R. last Priced out of reach year was only 2Yz lbs. per person per week, and this year, 2 The other aspect offood shortages inside the Soviet Union lbs. at the most. is that many food items are for sale only in the cooperative These official statistics must be taken with a grain of stores, at prices which a worker can afford either never or, at salt-or dollop of tallow , as the case may be. For one thing, best, once a month. The Soviet press, starting in late summer, the "meat" weights above include saiD (pork fat) , other "un­ began to overflow with articles and letters protesting price­ processed animal fats ," not to mention, according to Pravda, gouging by the coops, whose prerogatives were expanded "category II subproducts with no meat content." The latter under legislation sponsored by Gorbachov. During his early include "heads, trotters , ears , tripe ." Meat products in gen­ September tour of Krasnoyarsk Territory in Siberia, Gorba­ eral , Pravda wrote on Sept. 1, "have gotten worse over the chov was pelted with complaints about the coops. past years; ...sausages have a displeasing look and taste." The average income of a Soviet factory or office worker And as the food crisis worsens, the figures are continually is about 200 rubles per month . How much can he buy of the revised downward, while articles and letters in the provincial Slavic meat staple, cooked sausage? newspapers and eyewitness reports made available to EIR One kilogram (2.2 lbs.) of cooked sausage costs 2.30- indicate that there is no meat at all in the shops, in city after 2.90 rubles, when available, in the state stores. But since city. For example, sources with access to first-hand infor­ June , with the exception of Moscow, Leningrad, and a few mation from Uzbekistan have told this author that the 30 kg. other large cities, cooked sausage and most other meats have figure is "at best somewhat exaggerated, if not a purely ima­ vanished from state shops throughout the country. In the ginary statistic. " cooperatives stores, however, cooked sausage is freely avail-

26 Feature EIR October 7, 1988 able at a price of 9-11 rubles per kilogram-a price-equiva­ ping light industry with new machinery has not been done lent that is more than double what a WesternEuropean work­ for decades. 40% of its plant and equipment passed its point er would pay for the very best filet steak. In order to have 2 of amortization long ago." Ibs. of cooked sausage available per week for a family, the He proceeded to document the collapse of living stan­ average worker would have to spend 20% of his monthly dards, already by 1987, down to the levels of the early 1960s income. To make it 2 lbs. of actual meat on the table per or late 1950s: "Today ...17 % of all Soviet families do not week, when it is found at the cooperatives for 15-25 rubles/ have their own apartment or house, half of all apartments in kg . , he would have to allocate at least one-third of his month­ the Soviet Union, above all in the rural areas, have no toilet, ly wage. no sewage, no running water, let alone hot water, telephone This calculation reflects July prices. As the shortages in or central heating ....Compared to other developed coun­ the state shops have worsened since then, the prices in the tries, we have very low per capita meat consumption-62 cooperative stores, which in effect are a ruble-denominated kg . per year-in other countries it is 75-80 kg . per year and black market, have risen. even 85 kg . per year. ...In the consumption of milk and milk products, the Soviet Union is far behind most other Low investment, high looting countries; and the variety of these products is very limited Since the end of W orId War II, the Soviet economy has and the quality is very poor. The Soviet Union is far behind depended to a great extent on Moscow's power to milk its other countries in the consumption of vegetables ....Our colonies, the captive nations of EasternEuro pe. Their "trade" population consumes only one-third of the amount of fruit arrangements were rigged so that the satellite nations paid recommended by the medical profession, and this has espe­ for over-priced Soviet energy and raw materials imports, by cially negative effectson the health of our children." exporting to the U. S. S .R. under-priced industrial goods, ma­ The shortages of 1988, if one makes the relevant com­ chinery, equipment, ships, transportation equipment, and parisons, have taken living standards down to the level of the construction vehicles. This license to loot Eastern Europe early 1950s-the last years of Stalin. allowed the Soviet Union to underinvest in its own civilian manufacturing sector, the better to concentrate on its war 'Joint projects' machine. Aganbegyan failed to list one crucial area that Soviet The year 1982, when Yuri Andropov succeeded Leonid investment has neglected: energy andraw materials projects Brezhnev as Communist Party general secretary , marked the and related infrastructure. Compensation has come from inception of an increased-tempo Soviet war plan, which EIR Eastern Europe, by means of what are called Council for has labeled the Ogarkov War Plan. This featured a buildup Mutual Economic Assistance (CMEA) "joint projects." of the Soviet war economy, under what has since been named From the mid-1970s to the present, half the cost of every perestroika (restructuring), and a dramatic increase in the Soviet oil and natural gas pipeline, running 4,000 kilometers rate at which Moscow looted Eastern Europe to sustain the from Western Siberia to Eastern Europe, has been paid for Soviet civilian economy. The pattern was discernible already by the EasternEuropean nations. They also supplied half the in the mid- 1970s, when then-Chief of the General Staff Mar­ labor force to build these projects. The same "50-50" rule for shal Nikolai Ogarkov began to put his policies into effect; "joint projects"-though these, t()o, are entirely on Soviet Russia increased investment in the military-industrial sector soil-has been applied to other energy investments, such as and related heavy industry, at the expense of already overdue power plants in the U.S.S.R. and electric power lines from modernization of light industry, the consumer goods indus­ the U.S.S.R. to Eastern Europe, and to multi-billion ruble try , agriculture and food processing, and a wide range of investments in raw material projects, for iron ore , pulp and infrastructure, including housing, health care, energy, and paper, and asbestos, to name but a few. raw materials. The connection to food? The oil and gas pipeline "j oint The gaps in Soviet light industry, which Eastern Europe project" form of looting EasternEurope enabled Moscow to was pillaged to fill, were described at a February 1988 Mos­ develop and sustain a level of oil and gas exports to the West, cow seminar on "Problems of Radical Change in Economic which earnhard currency to pay for the massive food imports Management," where Gorbachov's economic adviser, Abel from the West, without disrupting: the investment dictates of Aganbegyan, was the main speaker. His report and recom­ the Andropov-Ogarkov War Plan. mendations were published in the March issue of Nauka i The Ogarkov Plan's acceleration in the 1980s demanded Zhizn (Science and Life). more raids against the Eastern European satellites, which "For a long time," said Aganbegyan, "we obviously were forced to vastly expand their export of industrial goods, underestimated the production of mass consumer goods. . . . equipment, and consumer goods to Russia, to plug gaps Although this branch of industry accounts for 37% of all caused by Soviet disinvestment in the civilian sector. This income generated, it has received [since the late 1960s] only looting was accomplished by colonialist pricing policies, 8% of all investments. Light industry is still operating unsat­ established by Moscow in the CMEA. Figures 1-3 show the isfactorily. . . . The reasons for this are rather deep: equip- dramatic shift in the structure of-Soviet foreign trade, into a

EIR October 7, 1988 Feature 27 FIGURE 1 FIGURE 2 Percent of Soviet trade with socialist Percent of Soviet trade with OECD countries countries* 35 34 68 33 67 32 66 31 65 30 64 29 63 28 62 27 61 26 60 25 59 24 58 23 57 22 56 21 55 20 54 19 53 18 52 17 51 16 50 % ��--�--�----r---�--�----T----r---- 49 Year 1981 1982 1983 1984 1985 1986 1987 1988 48 47 % ��--_r--�r_--._--_r--�----�---r----- Year 1981 1982 1983 1984 1985 1986 1987 1988 FIGURE 3 *The Soviet category "socialist countries" includes the CMEA Percent of Soviet trade with developing (Council 0/ Mutual Economic Assistance) countries, and the countries People's Republic o/ China, North Korea, and Yugoslavia . 20 19 Soviet-directed CMEA autarchy policy during the 1980s. 18 17 The colonialist pricing works as follows. The prices of 16 EasternEuropean countries' exports to the Soviet Union were 15 14 constant over the six-year period , 1982-87. Therefore , an 13 increase in exports denominated in rubles, faithfully reflects 12 the stunning real increase in the flow ofgoods to Russia. For 11 - 1 0 the six Eastern European CMEA members, these increases 9 in the ruble amounts of goods shipped to the U.S.S.R. in %.L-r----r--�----�---r--�r_--._r__r----- Year 1981 1982 1983 1984 1985 1986 1987 1988 1982-87 were:

From East Germany: by 23% importsfrom Rus sia. In 1986, for a somewhat smaller amount From Czechoslovakia: by 46% of oil, the Czechs paid 23 billion koruny. From Poland: by 55% In 1980, Moscow exported to EasternEurope 90 million From Hungary: by 32% tons of crude oil, maintaining such a level through 1982. By From Romania: by 68% 1986 however, the figuredropped to 84.2 million tons. From Bulgaria: by 53% These shifts have placed an impossible burden on the economies of Eastern Europe. At present, 45% of total During the same period, traffic in the other direction, real Czechoslovak trade is with the U.S.S .R. But for Russia, even Russian exports to Eastern Europe measured in tons of oil, this brutal consolidation of CMEA autarchy is not enough. metals, etc. , remained flator even declined. Only if measured Moscow is presently complaining that its trade with Eastern in rubles, would it appear that Soviet exports to the colonies Europe has "stagnated" at an "intolerably low level," to cite grew sharply, because Moscow tripled the price of oil and Prime Minister Nikolai Ryzhkov at the July 5-8 meeting of hiked prices on most other raw materials it exports to these CMEA prime ministers in Prague; but in reality, the plateau captive nations. at which this trade has "stagnated�' (as can be seen from our The case of Czechoslovakia illustrates the experience of graphs) is a very high plateau indeed. EasternEurope as a whole. In 1981 , the Czechs paid 8 billion Our next article will show how EasternEurope has been koruny for Soviet oil. Crude oil comprises 41 % of all Czech looted during the 1980s from the West as well.

28 Feature EIR October 7, 1988 Eastern Europe is p inched between the Soviets and the IMF by Konstantin George and Rachel Douglas

Eastern Europe is being looted from the West, as well as by West. Reportingin August that the worst drought in 30 years the Soviets. During the 1980s, in parallel with the vast in­ had "decimated" grain production in Yugoslavia, the official crease in Soviet looting of the region, Westerncreditors also news agency Tanjug highlighted that much of the destroyed took their huge share . Under the post- 1979 regime of usu­ grain and other products had been intended for export. Yu­ rious interest rates worldwide, the hard currency earned by goslavia, where people are " 'squashed' ...between star­ exports from East European countries to the West no longer vation and poverty ," sells food to earnfore ign exchange. went for badly needed machinery and equipment for indus­ So do Hungary, Czechoslovakia, and Poland. Newspa­ trial modernization, but only to service their foreign debt. In pers in Austriadisplay advertisementsfor Hungarian turkeys. addition, the collapse of world market raw material and en­ Polish poultry-chickens, turkeys, and geese-is abundant ergy prices meant that the dollar earnings of East European in West German food markets. A Czechoslovak company exports fell, even as the volume of goods increased. has become a powerful force in egg sales in West Germany. For 1987, the estimated debt service to exports ratio, the The Hungarians even charge hard currency for their wheat amount paid out on debt in a given year, compared with that exports inside the Soviet bloc. year's export revenues, was 30% for Bulgaria, 47% for Hun­ The case of Poland shows most clearly, how Western gary, and 71% for Poland; Hungary and Poland are the Soviet financial interests, with the go-ahead from Moscow, loot satellites most subjected to Western creditor looting. Their Eastern Europe. The World Bank advocates so-called "mar­ foreign debt, $40 billion for Poland and $ 18 billion for Hun­ ket-oriented reforms" to improve Polish agriculture. Poland gary, is higher per capita than Mexico's or Brazil's. Hungary, joined the InternationalMonetary Fund in 1985. Do the IMF whose debt climbed from a mere $ 1.9 billion in 1975, this and World Bank want Poles to eat more? No, the World Bank year earmarked 75% of its hard currency export earnings for demands an improvement in "domestic demand manage­ debt service. ment," as they put it. In a 1987 report, the World Bank Here are some cases of how the debt changed during the identifiedfood processing as the best target area, where loans 1980s: would directly boost Poland's export capacity. One Radio • Romania has not only met all interest payments on its Warsaw broadcast, during the strikes of August 1988, wamed hard currency debt, but reduced the principal from $ 11 billion the population that Poland may only expect "an investment in 1982, to $5 billion at the end of 1987. The Ceaucescu boost" from the West "if it starts a program of adjusting the regime did this by starving the population, and reorienting to economy to the requirements of debt servicing. " trade with the Soviet Union. Since 1982, the Rockefeller Brothers Foundation has been • Yugoslavia's debt was approximately $21 billion in visiting Poland and making proposals for Polish agricultural 1981, and is $20 billion today . From 1981 to 1986, Yugo­ "reform." Early this year, this involvement came to fruition, slavia paid $ 11.2 billion in interest and repaid $ 17. 1 billion when David Rockefeller met Polish leader Wojciech Jaruz­ of principal, while receiving about $ 13 billion in new credits; elski and established the so-called Foundation for the Devel­ on balance, the debt was scarcely reduced. opment of Polish Agriculture, to finance Polish ham exports • Poland, since martial law came down in 1981, has had to the United States. almost no access to new credit. It conducts trade on a cash In 1987 alone, Polish processed-food exports rose 84% basis. The tradesurpluses Poland achieved through austerity, and overall agricultural exports rose 62%. This was not such as $ 1.2 billion in 1985 and $ 1 billion in 1986, were matched by any increases in production. According to official insufficientto pay even the interest on its debt. From the level figures, Poland's meat production had recovered by 1986, of $26.8 billion at the end of 1984, the Polish debt has after the crisis of the early 1980s, only to the level it was in climbed to nearly $40 billion, with many rescheduling deals. 1978. Milk production in 1986 was 90% of the 1978 level. In May 1988, one West European banker said that Poland is regarded as "a 'permanent economic miracle' because, con­ Hungary: from showcase to rags sidering the gloom of its economy, it has never interrupted The result of the Western debt squeeze on Eastern Eu­ paying interest on its foreign debt to Western banks." rope, in combination with Soviet-exacted tribute, is ever These East European countries, where there is hunger worse immiseration and the potentialfor unrest in these coun­ and staggering inflation of food prices, export food to the tries. Hungary typifiest he process,

EIR October 7, 1988 Feature 29 Hungarian Communist Party Secretary Miklos Nemeth, socialism, Hungary, lives below or just above the officially at a July 13-14 party meeting, confirmed that from January definedpoverty level. In 1987� the Hungarian Central Statis­ through June 1988, at least 70% of export earnings had gone tical Office placed 24% of the population below the poverty for debt service. In those six months , trade with the West level of 4,000 forint per month. This number grossly under­ increased by 25%, but imports from the West fell 5%. At that states the number of poor people, by counting only rent as a same Central Committee plenum, Hungary adopted guide­ housing expense, even though the regime has been pushing lines for a vicious austerity program, as dictated by the IMF families to take mortgage loans to purchase their homes, for in May, when it granted Hungary a $350 million standby a monthly payment far higher than the rent. Omitting mort­ credit. These guidelines include the elimination of state sub­ gage payments (in the case of many young couples and fam­ sidies to state enterprises operating at a loss, which the gov­ ilies, the largest single monthly expense item) in computing ernmentconcedes will throw at least 100,000 workers out of net income magically raised the "net income" of an entire their jobs; continued prioritization of hard currency-earning stratum of the population to above the poverty line. exports over domestic consumption; and a new assault on Before 1988, the great bulk of poverty cases were among living standards , by price increases and stifftaxes on income the pensioners, whose suffering was hidden behind the lonely earned from second jobs. walls of their tiny apartments. This spring, poverty such as Hungarians keep themselves above misery levels by there was during the Great Depression or the early postwar working two or even three jobs, so the tax will hit most years , came out into the open. Beggars and homeless people ordinary people. So will the price hikes; inflation is running wander the streets of Budapest. In June, the Hungarian press at 15%, but there were 25% increases for meat in April 1987 , admitted that "a growing number of homeless people" were as a result of the IMF-dictated austerity program, imposed in spending the night in Budapest's railroad stations. In addition 1987 and 1988. to the "street people," Budapest is flooded by unemployed Nearly half the population residing in what the Western and their families from the provinces, who take over empty, media has portrayed as a "showcase" for market-oriented usually dilapidated apartments, as squatters .

funds nor the personnel to keep milk production facilities sanitaryhave been allocated. The milk from Poland's 1.5 million farmers is poured The deadly milk chain into huge vats at 10,000 collection points. No checks are thatki lls Polish babies made to determine whether the vats are clean, and most are not. In addition to the private farmers , Poland has 295 milk cooperatives. A July inspection found only 10 of The infant mortality rate , which has risen to 18 deaths per them meeting minimal hygienic standards required in food 1 ,000 live births in Poland, is related not only to infections production. Sample inspections of powdered milk for­ contracted in hospitals, but to a shocking lack of powdered mula for babies on the market in April found 30% of the milk for young children and formula for babies. (The samples contaminated with staphyloccocus and 66% with infant mortality rate in the United States is 12 or 13 per coli bacteria. 1,000 live births, and in Japan it is 7.) Milk can contain an even worse array of unpleasant Baby formula is hardly ever available in Polish stores. surprises. For one thing, farmers often dilute milk with Scarce supplies are strictly rationed for babies requiring water, to raise their income. Beyond that, due to ineffi­ special diets. Vitamin-enriched powdered milk for young cient transport, milk oftens turns sour. This taste is dis­ children has disappeared this year from stores. guised by adding chemicals and even detergents. In late June, the Polish governmentadmitted that even Several thousand Polish infants die each year from though the production quota for baby formula was 32,000 food poisoning, caused mostly by contaminated baby for­ tons per year (which the governmentcla imed through mid­ mula. The infant mortality rate in Poland is three times June was being met) , annual output had fallen to 7,000 higher than in WesternEurope , and Poland has one of the tons. Minimum requirements are 21,000 tons. Powdered highest death rates in the world among children and young milk production has fallen to 25 ,000 tons per year, as adults. against a minimal need for 35,000 tons. This unhygienic environment is compounded by the The production collapse is only the first part of the near total lack of any kind of diapers , either disposable or problem. The dairy industry, like all other industries which cloth, and for that matter, baby underwear as well. Poland meet domestic basic needs, has been neither modernized, has arrived at Third World conditions, in a historically nor maintained. For years on end, neither the required and culturally WesternEuropean nation.

30 Feature EIR October 7, 1988 Poland's crisis Russia has doubled since 1986, and coal is sold to the West The stage was set for Poland's latest strikes and protests, as well. by a plunge of the living standard to its worst since World War II. Inflationis running at a 45% annual rate. By the end Romania: mass hunger of 1988, the cost of living in Poland will have doubled since In Romania, the popUlation barely subsists on a hunger the end of 1986 and increased nine-fold since 1979. On Jan. diet, yet exports food to both Russia and the West. In addi­ 1, 1988, there was an abrupt price increase on many products; tion, a large part of Romania's annual production of agricul­ it averaged 40%, but included in that average was a 110% tural machinery infrastructure, such as tractors and railway hike on many food prices, and a tripling of rents and energy cars to carry grain, is exported (in the latter case, to Russia). costs. As of early 1988, an estimated 25-33% of the Polish Near-starvation has been caused by Romanian ruler Nicolae Ceausescu's forced-march policy of debt repayment, plus stepped-up deliveries to Moscow. Food rationing was introduced in 1981, for the first time since 1954. By the close of 1987, even salt and onions were Meat is generally unavailable in rationed. Many products cannot be boughteven with a ration Poland, electricity is rationed in card. Meat and fish have all but disappeared from the Ro­ manian diet. Official rations include: 3.5 kilograms of cheese Romania, and Hungary, the (about 7.5 Ibs.) per person for the whole year; 1.5 kg (3.3 "showcase" qfEa stern Europ e, now Ibs.) of butter per person for the year; 128 eggs for the year; has homeless people sleeping in and so on. Romanian austerity also extended to home heat­ ing, where citizens were forbidden to have their apartments the streets. Thus, thefo reig n debt is heated to higher than 57°F last winter, and electricity-only paid. one 40 watt lightbulb was allowed per household. According to reports reaching Western Europe, ambulances from the state-run hospitals do not pick up any emergency patient who is 60 years old or older. The return to the hunger of early postwar Romania has population lived below a poverty level established by econ­ spawned another phenomenon from those days, the black omists from the Solidarity trade union movement. market. For astronomical prices, almost any food item is For months, non-food essentials such as toilet paper, available. The average monthly wage is just under 3,000 lei. soap, and detergent have been nowhere to be found for sale Items that can readily be found on the thriving black market, at any price. During the summer, toilet paper was even being but never in state shops, are priced per kilogram: 160 lei for handed out only by the squares to guests from the West meat (6% of the monthly wage), 120 lei for cheese (4% of staying at some of the best hotels in Warsaw. Hotel personnel the monthly wage), or 1 ,000 lei for coffee (34% ofthe wage). dared not leave such a "luxury" item as a roll of toilet paper in the guest's room, because it would disappear within less than an hour, headed for the black market. In August, food shortages, too, became really serious. Meat is largely un­ available in the state shops, while large quantities of ham, pork products, and poultry are exported to the West. Weekly EIR Basic medicines, including antibiotics and anesthetics, are virtually unavailable-but Poland is forced to export Audio Reports medicine to Russia. According to Prof. Marek Okulski, the life expectancy at birth, for Poles, declined from 67.3 years Cassettes in 1982 to 66.5 years in 1986. Diseases of the circulatory system have doubled. In Warsaw, only 30% of the children • News Analysis Reports have been vaccinated against the principal childhood dis­ • Exclusive Interviews eases. Tuberculosis and measles cases are on the rise; Poland $250/Year has a density of TB cases nine times greater than in another North European country, Denmark. Hospitals are crowded Make checks payable to : and have poor sanitation; patients often end up sleeping on EIR News Service, Po. Box 17390 the floorin the corridors. Wa shington, D.C. 2004 1-0390 Attn : Press Poland is one of the world's largest coal producers, yet the population faces severe shortages of coal, the main home MasterCard and Visa Accepted. heating fuel, this winter. The tonnage of coal exports to

EIR October 7, 1988 Feature 31 The crippled agricultural system of the Soviet Union by Rachel Douglas

How could the country that built the Energiya heavy space partitional tenure; the land was constantly divided and redi­ launch vehicle, for example, only be capable of growing a vided into ever smaller strips, for all the sons of the next little more than half the grain per acre that the American generation. farmer does? Readers may find it useful to know some of the Pyotr A. Stolypin, prime minister of Russia under Tsar history of agriculture in the Russian Empire and its imperial Nicholas II from 1906 until 1911, said in 1908 that de fa cto dominions . "serfdom to the commune [mir] and the oppression of family property provide bitter bondage for 90 million people. "1 Un­ Obliteration in the name of collectivization der Stolypin's Agrarian Law of November 1906, the govern­ Of the 559 million hectares of land in agricultural use ment threw its support behind the creation of individual, as (excluding forestry and some other uses) in the Soviet Union opposed to communal or family, land ownership. The law in 1986, 553.2 million hectares belonged to state farms (sov­ gave incentives for the consolidationof the tiny strips of land khozy), collective farms (kolkhozy), or the private plots of into larger plots to make individual farmsteads , and penalized kolkhoz workers. The process that led to this arrangement attempts to block this reform. was one of the greatest agrarian upheavals in history and one By 1911, nine million households of independentfarmers of the most terrible mass murders , by starvation and outright had been established under Stolypin's reform. He held this butchery, of any people during this century. That was the development to be essential for the improvementof Russian collectivization of agriculture in the Soviet Union. agriculture and the prevention of peasant insurgencies, which Up until the second half of the 19th century, most peas­ he knew were being manipulated against the regime. "In ants in the Russian empire were serfs . The serf was obliged another 10 or 15 years," Stolypin said, "we will be able to to toil on the landowner's estate for life. Within the villages turn up our nose at all the revolutions. If only history will on the estates, his affairs were ordered by thepeasant collec­ accord us this delay. "2 tive, the mir, which is also the Russian word for the whole That was not to be. In 1911, Stolypin was assassinated world . by an agent of the Okhrana, the secret police that was the The abolition of serfdom, decreed by Tsar Aleksandr II instrument of the land-owning noble families, whose leaders in 1861, occurred with much confusion and with compro­ by that time were committed to overthrowing the Romanov mises to satisfy the powerful landed aristocracy of Russia. dynasty and considered a peasant rebellion to be their ulti­ The supposedly emancipated serfs were required to pay a mate weapon. "redemption fee ," a tax , so that the landowners would be compensated for the loss of their "souls" (as the serfs were Stalin's collectivization called) , and of the 20% or so of their land that was turned Six years later, the Bolsheviks were in power. It is not over, not to the individual peasants, but to the mir. But the possible, in this space, to describe the trammeling of agri­ ex-serfs had scant hope of obtaining funds to pay the fee­ culture during the Russian Civil War (1918-20), nor the ag­ except if they continued to farm their former masters' land ricultural policy debates of the 1920s. Suffice it to say that for decades. The mir persisted, as did the system by which when Stalin and the Bolshevik Central Committee decreed land was divided among the peasants from generation to the collectivization of agriculture in 1929, the axe fell first generation. There was no rule of primogeniture, or inherit­ on the somewhat-better-off peasants, many of whom had ance by the first-born son, the way estates and farms were gotten started under the Stolypin reforms. Such a peasant was kept intact over the years in many Western countries. In the a kulak, from the Russianfor "big fist." They comprisedsome Russian empire, the system of land-holding was called re- 20% of the peasant population and they held 40% of the land.

32 Feature EIR October 7, 1988 The collectivization drive soon rose to the task of "liqui­ tural zone of southern Russia. dation of the kulaki as a class. " The targetlist spread to middle Soviet agriculture afterthe war was rebuilt by the people peasants and anybody who opposed collectivization; they who were left after collectivization. The most productive , could be deported to Siberia or shot as a sub-kulak or even as enterprising peasants were gone, the remaining population kulak-minded. traumatized and resigned. The full dimensions of what happened in the Soviet coun­ Especially in the Russian peasant population, it is most tryside during the 1930s are still not known. At the time, it clear to this day how economic success is fundamentally a was hidden from the outside world. Statistics should not be question of culture. The Soviet government says that agri­ allowed to blur a tragedy or substitute for the full revelation culture receives more than one-fourth of all investment in the of a crime, but in this case the numbers begin to tell the national economy, yet production and productivity have stag­ terrible story . As more becomes known, the numbers go up. nated. The reported average per hectare yield of grain crops In 1968, historian Robert Conquest wrote that "exami­ fell from 16 centners/hectare (a centner is about 110 pounds) nation of all the estimates, and all the accounts, seems to in 1976-80 to 14.9 centners/hectare in 1981-85 , before an show that over 5 million deaths from hunger and from the alleged rebound in the next two years. diseases of hunger is the best estimate" for the U.S.S.R. in It is not thatSoviet science does nothing for plant hybrid­ the 1930s. That doesn't count executions and deaths of de­ ization, machinery design, fertilizers, or insecticides. The portees on the road to Siberia, where at least 3 million peas­ fate of a new technology or a new machine, sacrificed into ants landed in labor camps . the hands of the kolkhozniki, is oblivion or destruction as Stalin told Winston Churchill that 10 million kulaki had often as not; many stories in the Soviets' own press attest to to be "dealt with."3 In December 1987, Soviet demographer that.

Mark Tolts revealed in the weekly Ogonyok, that Stalinhad On Aug. 6, the Communist daily Pravda interviewed overstated the totalSoviet population as 168 million in 1934, Vasili A. Starodubtsev, chairman of the All-Russian Council afterthe height of the famine, when the real number was 158 of Kolkhozy, on the deep demoralization in the Soviet rural million. This past spring, Academician Vladimir Tikhonov areas. The countryside was battered and ruined long ago, he of the Soviet Academy of Agricultural Sciences said that the said, and "there is where the peasant lost the remainder of his number of farm families dropped by 3 million between 1929 faith, and cracked up himself, and fell into apathy-or worse, and 1933. into drunkenness ....No , the past has not gone without a The killings and famine in the Ukraine, the richest grain­ trace." To this day, "some people try to besmirch the expe­ growing area in the Soviet empire, were a massive act of rience of the best [workers]. They claim that 'kulakism' has genocide against Ukrainians. The London Independent re­ robbed resources. What do they mean, 'kulakism'? We are ported last July on the finding by an international commission behind U.S.A. agriCUlture in capital intensity, and if you of inquiry into the Ukrainian famine, that "more people died include storage and processing ...many times behind." during the famine-around 7.5 million-than in the Jewish Gorbachov's legislation to allow peasants to take out 50- holocaust, yet this catastrophe is little known outside the year leases on land, which is supposed to inspire higher Ukrainian exile circles. " productivity than on collective farms, got a lot of pUblicity Collectivization, Conquest summarized, "destroyed about in the West. Nobody should think for a minute that such 25% of theproductive capacity of Soviet agriculture." As the reforms will reduce the Soviet demand for food from the rest collectivization teams approached, terrified peasants slaugh­ of the world. Soviet agriculture is the most intractable Soviet tered their livestock, rather than surrender them. Half the economic problem, because to fix it would mean to shift the horses in Russia died in a five-year period. In two months deeply ingrained, demoralized cultural outlook of the Rus­ during 1930, 14 million head of cattle were killed, and so sian peasant, which subsumes a real hostility to technological were one-third of the hogs in the entire countryand one out improvements, such that increased investment in Soviet ag­ of four of the sheep and goats. 4 riculture has been like pouring rubles down a sinkhole. Pre­ Those who joined the collectives were then faced with cisely that sour, cynical view of the world, however, is what forcible requisitioning of their crops. Farmers who buried an empire needs for its slaves. grain to keep some for their families could be shot for stealing Notes from the state. "If the peasant had produced only enough for 1. Alexander V. Zenkovsky , Stolypin: Russia's Last Great Reformer, The his own subsistence, leaving none for the state, local enforce­ Kingston Press, Princeton, 1986, p. 14. This new translation of a memoir ment officialsreversed that procedure. The last sacks of grain by one of Stolypin' s associates records the debates surroundinghis economic and administrative reforms and gives the text of the 1906 agrarian law. were taken from the barns for export while famine raged. 2. Aleksandr V. Gerasimov , Tsarisme et Terrorisme, Paris, 1934, p. 297 . Butter was sent abroad while Ukrainian infants were dying 3. Robert Conquest, The Great Terror, Collier Books, New York, 1973, for lack of milk."5 pp. 46-7. 4. Alex de longe, Stalin and the Shaping of the Soviet Union, William After the 1930s came World War II, during which, battles Morrow & Co., New York, 1986, p. 237. raged across the whole Ukraine and the black-earth agricul- 5. Conquest, p. 45 .

EIR October 7, 1988 Feature 33 TIillInternational

London's dirtiest network out to destabilize Japan

by Lyndon H. LaRouche, Jr.

Presidential candidate LaRouche issued this statement in for sucli possible aggressive action occurred in response to Wiesbaden. West Germany on Sept. 27. stiff U. S. demands in the naval-parity, disarmament negoti­ ations of that period. Highest-level sources report, "Tiny" Rowland's Lonrho firm Then, the U.S. military anticipated that, in case of such is featured prominently in a major effort to destabilize Japan. a war, Japan would attack the Pearl Harbor naval base, and Rowland, although despised by most well-informed Brit­ devised a defense based upon that estimate. This element of ish patriots, is the immensely wealthy, Soviet-linked dirty­ "War Plan Red" was firstmade public by Gen. Billy Mitchell, work arm of a powerful, left-wingfac tion of Britain's intel­ during the course of his court-martial, long prior to the offi­ ligence community, and linked, financiallyand otherwise, to cial declassification of the war-pIan's documents. the circles of former CIA officialTed Shackley in the U.S. The conflict in which Lonrho is pinpointed today, dates According to the sources, Rowland is utilizing the old back to the Pacificconflict between Britain and the U. S. deep 19th-century, Lord Palmers ton connections into Japan, the into the 19th century. Then, the U.S. military had acted to pro-London Mitsui interests, as the most conspicuous chan­ offset British efforts, through Anglo-Dutch East India Com­ nel of influence. Named in this connection, is the firm of pany channels, to develop Japan as a British client-state; the Nissho Iwai, a representative of the foreign trading and ship­ government of Abraham Lincoln had supported the actions ping interests of the Mitsui interests. leading into the Meiji restoration. Rowland sits on the board of the Mitsui London interests. The forces in Japan supported by the American Whigs' In the U.S., Nissho Iwai's leading business connections East Asia policy had laid the foundations of the successful include Rockwell International andthe Bank of America. economic development of that island nation, by studying the This operation is modeled upon the British operations work of Wilhelm von Humboldt's circles as a model of law into Japan's internal political affairs during 1936-38, when and parliamentary government, and by adopting the model British meddling steered Japan into an orientation toward of U.S. Treasury Secretary Alexander Hamilton's "Ameri­ war against the United States. This time, the central target of can System of political-economy," in opposition to Adam the political operations directed by Rowland's circles, is the Smith's "free trade" dogmas. Japanese royal family. During that period, and since, the Mitsui were the Japa­ nese business interests closest to the British East India Com­ The 1920s U.S. war plan pany and its later offshoots. To place this current Lonrho connection in its proper The conflictbetween the U. S. and these London business global setting, one should note that the last full-fledged, interests peaked beginning the l890s, as the U.S. govern­ classical war-plan developed by the U.S. military was that ment moved into a position of strong competition with Britain firstdesigned during the early 1920s. in East Asia. This conflict was shaped by Britain's conflicts At that time, Britain had activated its 1902 treaty of with French Minister Hanotaux's global diplomacy. London alliance with Japan for possible joint Britain-Japan military acted to neutralize Hanotaux's policies by aid of orchestrat­ operations against the United States. Britain's preparations ing the Russo-Japanese War, a war whose included purposes

34 International EIR October 7, 1988 were to counter Hanotaux' s influencethrough Russia's Count financial connections to Beij ing military intelligence, and Witte, and to set off the 1905 Russian revolution, in which upon which the Nixon administration's Henry A. Kissinger latter events British intelligence services played a significant relied significantly for guidance in his dealings with the Beij ­ secondary role . ing government. The 1902 London-Tokyo treaty of alliance broke the close Zbigniew Brzezinski's delusions on the subject of China, relations between the U.S. and Japan, and set the stage for reflectthe sweeping incompetence of establishment thinking that Russo-Japanese war. London's tentative arrangements and doctrine toward East and South Asia generally, Japan for mobilizing British and Japanese naval forces in joint included. The Harvard Law School's China experts are a action against the U.S. during the early 1920s, were a contin­ prominent part ofthis stubborndisorientation in officialU.S. uation of that configuration. thinking.

In the 1930s Britain's pro-Soviet factions' This U.S.-London conflictover Asia interests continued In the Western world's policy-shaping establishment as through the 1930s, and even during the period of the wartime a whole, there are three leading factions. This matter has alliance, and later. This was an included feature of the war­ been referenced recently, in my letter to Newsweek, replying time conflictsbetween Prime Minister Winston Churchill and to the lengthy Henry A. Kissinger piece in the Sept. 25 President Franklin Roosevelt. Until the Yalta period and edition. The first, is committed to: the delusion of global later, the President was committed to a colonialism-free post­ power-sharing with Mikhail Gorbachov's Moscow . This fac­ war world, and the opening of the former colonial regions tion is opposed by the nationalist patriots in the establish­ for "American methods" of economic development. ments of Britain, continental Western Europe, and the U.S. Although the U . S. governmentcapitulated to Churchill's Between the two is the large establishment faction which postwar policies during the 1943-45 period, the underlying Kissinger is assumed to represent, i a faction which favors conflict between London and the U.S. over Asia persisted, increased global power-sharing with Moscow, but within the even beyond the U.S. Anglophiles' manipulating President limits of maintaining an Atlantic alliance and a credible Truman into firing Gen. Douglas MacArthur. Western deterrent. During the 1930s, London continued its earlier bitter In Europe, the "pro-Gorbachov�' faction is composed of hostility to the policies of China's Dr. Sun Yat-sen, and was two competing elements, a northernone , centered upon Lon­ determined to eradicate pro-U.S. influences via such chan­ don, the Hague, and Hamburg, and a southern one , centered nels as the Kuomintang and the pro-American System cur­ upon Venice's reinsurance cartel. "Tiny" Row land's Lonrho, rents in Japan. It was London's mid- 1930s meddling into the his London Observer daily, and the press empire of the most internal political affairs of Japan, which was crucial in con­ distasteful, pro-Soviet British multi-millionaire, Robert tributing to the conditions for the war between the United Maxwell, are arms of the section of the British establishment States and Japan. committed to this delusion. This is! the left-wing faction of The forces in London responsible for this were not acting British intelligence engaged in the 'fostering of destabiliza­ out of pro-Japan motives; they wished the U.S. to be forced tions throughout all of East and South Asia. to crush Japan in war, and to provoke the United States into The nations already undergoing pro-Soviet destabiliza­ doing so. With Japan crushed, and defeat of the Kuomintang tion with leading assistance from this left-wing faction of by the Communist assets of Bertrand Russell et aI ., it might British intelligence, include the Philippines, South Korea, be presumed that East and South Asia would be reduced to Malaysia, Burma, India, and Pakistan. Additional cases, conditions like those of the mid- 19th-century colonial period. nations targeted to be destablized by 1990 , include Singa­ pore , Thailand, Taiwan, and Japan. The prime targets in Harvard Law School Thailand and Japan, are the two nation's monarchies. During and following the two decades preceding the ini­ International agencies involved in these operations in­ tial design of the cited U.S. war plan, there emerged a U.S. clude the World Council of Churches, former U. S. Attorney­ component of the Atlantic liberal establishment which has General Ramsey Clark's international association of left­ shaped U. S. policy toward China since the Yalta treaty. This wing lawyers, and Amnesty International. Tiny Rowland's is a circle chiefly responsible for the current drifts in U.S. Lonrho and London Observer have been caught red-handed foreign policy toward China, Japan, and South and East Asia recently in Southeast Asia operations, just as Rowland and generally. One of the important centers shaping this policy his frequenthou se-guest, the U. S. State Department's Ches­ toward Asia, has been based at Harvard Law School since no ter Crocker, are working to tum over entire chunks of Africa later than a meeting between China experts from that center to Moscow. and Communist International agent Agnes Smedley, shortly The surfacing of Lonrho's meddling into the internal after the Bolshevik Revolution in Russia. political affairs of Japan fillsin the last gap of information on This is the channel, via Canada, through which former known policies for destroying the tntirety of the Asian Rim Boston U.S. Attorney William Weld secured his personal complex of nations traditionally friendly to the United States.

EIR October 7, 1988 International 35 Ta iwan's version of 'Green Party' seeks support in We stern Europe by Our Special Correspondent

Beginning Sept. 12, a delegation of the leadership of the don's Fabian Society-linked Amnesty International,and sev­ West German Green Party-modeled and officially illegal Tai­ eral Washington, D.C.-area groups, including Asia Watch, wanese opposition Democratic Peoples Party has been mak­ the Asian Research Center, the International Center on De­ ing an unpublicized tour of WesternEurope . The delegation velopment Policy headed by former U.S. Ambassador Rob­ has sought to win Liberal, Social Democratic, and Christian ertWhite , the National Democratic Institute, and the Center Democratic parties' support for its campaign to destabilize for National Policy. the Republic of China/Taiwan by overthrowing the ruling The latter two are officialinstitutions of the U. S. Demo­ Kuomintang Party (KMT) regime. cratic Party, and, hence, of the Dukakis campaign. NDI head The DPP tour began on Sept. 12 in Rome. Then, from Brian Attwood, several of his NDI underlings, and CNP Sept. 14-17, the group attended the annual conference of the acting president Maureen Steinbrunner attended the Liberal Liberal International in Pisa, Italy, at which West German International's Pisa meeting. Attwood's NDI is a leading Foreign Minister Hans-Dietrich Genscher, a notorious ap­ institution of the U.S. Project Democracy/Iran-Contragate peaser ofthe Soviet Union, was awarded the Liberals' "Prize configuraton, and has been involved in destabilizations of for Freedom," and at which Socialist Internationalinfl uential pro-U. S. forces in the Philippines, Panama, and elsewhere. Willy Brandt delivered an address. For the rest of the month Ramsey Clark is a particularly critical figurein this nexus. of September, the DPP group has been stopping over in He was instrumental in overthrowing the Shah of Iran, and Austria, West Germany, Belgium, Holland, and France. The has been involved in dirty trickS in the Philippines. In 1986, tour concludes with four days of confidential meetings in he accompanied the unstable emigre Taiwanese dissident Spain, from Oct. 1-4. Hsu Hsin-liang in a failed effort to return to Taiwan. Hsu In Europe, the DPP has been feted by leading liberal and hopes to become the Taiwanese version of the late Philippines socialist party leaders in various countries, and by rotten opposition leader Benigno Aquino. The pro-Soviet Clark is elements in the Christian Democracy. Reliable reports are also a semi-official legal adviser to leaders in West German­ that Willy Brandt has helped open doors for them across the y's Green Party. continent. They have also been patronized by leading offi­ cials in the Evangelical Church (the EKD) in West Germany, The Green connection and by a senior official in the World Alliance of Reformed The DPP tour has been built around a fraud. While they Churches in Switzerland. That latter connection is particu­ proclaim their goals with liberalistic verbiage about "self­ larly important, since the DPP opposition is predominantly determination," a "referendum" to decide the future of the Presbyterian Christian. country, etc., the real hardcore ofthe party is devotion to the Crucial political-logistical support for the trip is coming Nazi-communist ideology of the international"green" move­ from the InternationalCommittee for Human Rights in Tai­ ment. wan, in The Hague, Netherlands, which publishes the mag­ The DPP flag, for example, is green and white, with a azine Taiwan Communique, and from the World Federation green form resembling the shape of the island of Taiwan in of Taiwanese Associations. The head of the Hague group, the middle. The color, DPP sources stress, is explicitly adapt­ Dutch engineer Gerich van der Wees, has enough clout inside ed from the Greens of Germany. The party's activists harp Holland to have arranged meetings in Amsterdam for the on about Taiwan being horribly "polluted," and spread an DPP on Sept. 27 with the chairman of the ruling Christian ideology of hostility to Taiwan's remarkable economic and Democratic Appel, and with J .J . C. Voorhoeve, a member of industrial advances. the Trilateral Commission and a senior figure in the Peoples Furthermore, the political ideology could be defined as a Party for Freedom and Democracy, Holland's liberal party. Taiwanese form of "national Bolshevism." The DPP advo­ Both the International Committee for Human Rights in cates "Taiwanese independence" (officially considered a se­ Taiwan and the World Federation work closely with former ditious policy in Taiwan), which means giving up the ruling U.S. Attorney General Ramsey Clark, U.S. Congressmen KMT's claim to represent the sole popular governmentof the Stephen Solarz of New York and Jim Leach of Iowa, Lon- entire Chinese people.

36 International EIR October 7, 1988 There are two ironies about this "political independence" demand. One is that several core DPP influentials or sympa­ thizers are from families which collaborated with the Japa­ nese, during the long Japanese occupation of the island. Sovietsjo in U. S. Second, a serious move for 'Taiwanese independence" would provide a perfect pretext for the mainland Chinese Commu­ war against Panama nists to invade the Republic of China. This is virtually ad­ mitted by the liberal Far East Economic Review's week-of­ by Gretchen Small Sept. 29 edition, in an article documenting the growing Pe­ king military threat to Taiwan. While a military confrontation between the two is unlikely, FEER says, "this situation could Moscow has not only come up with a new scheme to get its change ...if Peking considers hopes for peaceful reunifi­ hands on the Panama Canal, but is now signaling that it will cation are threatened as a result of a strengthening in pro­ help Washington overthrow the nationalist government and independence sentiments in Taiwan." military in Panama, to implement the plan. In any case, the DPP program adds up to quite a violent The gist of the proposal is that the Panama Canal be and hardly democratic package, reminiscent of the violent "demilitarized," and placed under "international" control. trends in the Green Party. One person who helped arrange Tailor-made for "regional matters" negotiations with the the DPP tour in Europe and who has accompanied the DDP United States, the proposal boils down to a deal: The Soviets group to several of its destinations, is a certain Li Hsien-jung want U.S. military bases removed from the Canal Zone, but (a.k.a. Shane Lee), a Taiwanese emigre who is a Canadian want Panama's Defense Forces removed, too. That Soviet citizen and Canadian governmentofficia l . In mid-August of troops would be volunteered to participate in policing the this year, he addressed, by video, a World Federation of Canal is only unspoken. Taiwanese Associations meeting that was taking place in The proposal surfaced in the August issue of America Taiwan. He denounced the ruling Kuomintang Party as a Latina, the monthly of the U.S.S.R. Academy of Sciences' "regime of robbers devoid of the rule of law," and called on Latin American Institute. In an Institute-sponsored round­ his listeners to topple the regime and set up "a legal govern­ table on the causes and possible consequences of the Panama ment representing the Taiwanese people." He charged the crisis, America Latina's deputy director, Vladimir Gavrilov, KMT with having transformed Taiwan into an "ugly island argued that the current crisis over Panama stems from the of garbage." United States' insistence that it maintain control of the Canal The "Green connection" in the DPP is otherwise quite through "the old model" of a system of military bases. direct. Two DPP leaders were trained in West Germany since "It is logical that this provokes suspicion throughout the the mid- 1970s, and collaborated with individuals involved in world because of the possibility for blackmail of the world founding the West German Greens. One, Chu Kao-Cheng, community," Gavrilov warned. "Basically, no one threatens gained notoriety in Taiwan in April of this year, when he the security of navigation in the Panama Canal. Except, per­ physically assaulted the head of the Taiwanese Legislative haps, internationalterrori sm. Therefore, new models for op­ Assembly during a parliament session. In his campaign lit­ eration of the installations, in the service of humanity's in­ erature, Chu boasts of modeling his activities on those of the terests, are needed. This presupposes their demilitarization." Greens in Germany. Chu spent the period from mid-June to He suggests that this "new dimension" be taken up by those mid-September of this year at the University of Bonn , gaining proclaiming "international solidarity" with Panama. a postdoctorate in "philosophy of law. " He had earlier gotten So much for Russian concernfor Panama's sovereignty. a degree from Bonn University, during the late 1970s/early 1980s. Anti-PDF propaganda gears up DPP Central Committee member You Ching studied at The very fact that the debate which occurred in the course the Faculty of Law at the University of Heidelberg from of the roundtable was published, marks a shift in Soviet 1974-78, and is an open advocate of "green" policies. He policy. Throughout the currentU. S. -Panama conflict,except was part of the DPP delegation touring Europe, until his Sept. for attacks on Gen. Manuel Noriega allowed in several Latin 22 returnto Taiwan. American Communist Party newspapers, the Soviet media Also, from Aug. 4-18 of this year, the West German have adhered strictly to the line that Moscow wishes to defend Green Party's "foreign secretary," Jiirgen Meier, was in Tai­ Panama from the Reagan administration's crazy war against wan on invitation from the DPP, and met several DPP lead­ it. ers. Meier later traveled to South Korea, and was arrested The'Latin American Institute experts who participated in and thrown out of South Korea over the Aug. 27-28 weekend, the roundtable along with TASS's Panama correspondent, for attempting to attend an illegal conference on "peace and Igor Klekovkin, warn that Panama's Defense Forces-and reunification. " specificallythe two commanders who have led the fight for

EIR October 7, 1988 International 37 Panama's sovereignty, Gen. Omar Torrijos and Gen. Manuel Noriega-are no friends of Moscow. While the experts de­ bated over what role Torrijos and 'Torrijismo," the political movement founded to continue his nationalist project, should be accorded in history, all participants agreed that Torrijos and his followers had failed to implement the domestic "pro­ gressive changes" which they had promised, instead compro­ Panama's Solis Palma mising with the bourgeoisie. A particular bias against Panama's Defense Forces had U. S. war plans before shown through the debate. All participants agreed that the PDF cannot, and must not, be viewed as either anti-American by D.E. Pettingell or pro-left. Two of the Institute's Caribbean and Cuban ex­ perts reminded the others that the PDF, under both Torrijos and Noriega, participated in over 20 joint military exercises In his first trip abroad since he took over as Constitutional with theUnited States, asserting that Noriega has been on the Chief of State in February, Panamanian President Manuel Pentagon's payroll for years . They demanded that "contra­ Solis Palma laid out before representatives of the world 's dictions" within the military be studied carefully, in light of nations attending the United Nations General Assembly, the charges by Panama's communists that thePDF has displayed truth of the United States' escalating economic and military an increasing "appetite for bourgeoisification." war against Panama. This war is no defense of democracy, Then, in mid-September, the widely circulated New Times nor a fight against drugs, but "an actof piracy without prec­ weekly (No. 38, 1988), carried an article which not only edent in world history" which seeks to strip Panama of its attacked Panama's Defense Forces, but signalled that the right to national sovereignty, Panama's President stated. Soviets have opened contactswith Washington's Panamani­ He emphasized that, without support from other nations, an opposition movement. Mikhail Baklanov, Novosti's cor­ Panama now faces the danger of military invasion. respondent in Panama, penned the new line: Panama's civilian and military leaders, by sticking to "A compromise is needed ....Panamanians are tired of their defense of Panama's right to sovereignty and economic the crisis. There is a pressing need for a gust of fresh air, for development, have become an obstacle to the liberal U.S. new ideas. The government is trying to maintain the status Establishment's efforts to set up a joint world dictatorship quo. As for the opposition ...is it capable of carrying out with the Russian imperialists. President Solis's decision to the long-awaited reforms? This is no rhetorical question. take the global "Big Lie" campaign against Panama head-on, Over the past year, any political action against the regime by personally bringing Panama's case for sovereignty before has been identified with the extreme-right 'civil crusade' as many nations as possible, exemplifies the international movement, which the U.S. embassy in Panama has certainly potential Panama's nationalists represent. had a hand in organizing ....However , not all of the op­ Solis Palma's speech shook the delegates, who com­ position are prepared to betray the interests of the nation." mented upon both the bluntness of his warning, and the Baklanov then reports that he was invited to the Union dignity with which he delivered it. The U.S. delegation was Club, the oligarchy's most exclusive whites-only club, to notably absent from the General Assembly hall. lecture opposition leaders on perestroika in the Soviet Union. "I categorically state that my government has abundant His conclusions from the meeting? "Even Panamanian big reason to fear direct U. S. military aggression against the businessmen are tired of the old ways and also want Republic of Panama, "he said. The United States has installed change ....The atmosphere grew warmer as the evening "commandos of surprise attack specialists, an elite bataIlion progressed. " of the 82nd Airborne Division, electronic warfare experts, His New Times article makes no mention of the Soviet's and over 300 attack and personnel transport helicopters; in new Canal proposal, but suggests that Panamanian interests addition to units for the control and occupation of urban in recovering sovereignty are motivated solely by greed. centers." He added that the U. S. military presence in Panama Panama's "army is looking after its own corporate interests has increased by 1,300 troops and 800 marines and her "of­ in the matter," when it demands that the Canal be returnedto fensive military equipment" has expanded beyond that re­ Panama, Baklanov charges-just as Panama's "big busi­ quired for the defense of the Panama Canal. nessmen also want theCanal back ...to reap the dividends." "Fighter planes have taken over the Panamanian skies; Was this the agenda Karen Brutents, deputy chief of the not only do they carry out with significant frequency threat­ Soviet Communist Party's International Department and a ening maneuvers against Panamanian military installations, top controller of Soviet operations in both the Middle East but also against internationalcommercial planes," he stated. and Central America, brought with him when he visited Pan­ Solis Palma's presence at the U.N. was in itself a triumph ama City on Sept. 15-18? since, up until the last minute, the U.S. government, the only

38 International EIR October 7, 1988 in order to carryout its "designs of continental domination." He explained before the world forum that the U.S. gov­ ernmenthas used as a "pretext" the lack of a "formal democ­ racy" in Panama to try to "overthrow the legitimate Pana­ manian government, and impose a de facto regime headed by figurescommitted to the renegotiation of those clauses of indicts the Panama Canal treaties which guarantee the Panamanian people definitive consolidation of an independent, free, sov­ the U. N. ereign, and neutral nation."

The 'October surprise' The U.S. reaction to Solis Palm�'s charges did not wait. Two hours later, while Solfs Palma was still inside the U.N. one in the world that still recognizes the invisible government headquarters, a defensive U.S. Ambassador VernonWalters of "President" Eric Delvalle, tried to sabotage his appear­ called a press conference to answer Solis Palma. He called ance. The State Department did all in its power to show its the speech a "litany of false accusations against the United hostility to the U.N. guest; no secret service protection was States," and denied that the United States was preparing a provided to Solis Palma, while there were attempts to confine military intervention against Panama, but promised the U.S. his movements to U.N. headquarters. At the same time, the will "continue its efforts to help bring democracy to Pana­ State Department-controlled Panamanian opposition Civic ma." Crusade was allowed to demonstrate against Solis Palma in In response to insistent questions about Solis Palma's front of the U.N., an area normally off-limits, for security charges that the U. S. military bui1d�up inside Panama was in reasons, to demonstrations while the General Assembly is preparation for a military action, Walters shocked a group of taking place. The anti-Solis Palma rally was a total flop. journalistsby replying, "not by the United States," and then In contrast, the Schiller Institute organized a warm recep­ blustering, "The United States do�s not engage in military tion for Solis Palma upon his arrival at Kennedy Airport on aggression!" He brushed off Solfs Palma's argument by say­ Sept. 25. "America Loves Solis Palma" and "Just Say NO­ ing that Nicaragua has also been warningabout an imminent riega," were some of the signs displayed by a group of 50 U.S. invasion for the past four years. Americans and Panamanians. Solis and his delegation were Walters's affirmation, "not by the United States," and his pleasantly surprised. comparison of Panama to Nicaragua, further confirm reports that the United States is backing politically and logistically a Portraying Panama in a 'monstrous fashion' group of mercenaries and "Panamanian Contras" based in In his speech, Solis Palma delivered a blistering attack Costa Rica under the orders of former Panamanian Col. Ed­ on the U. S. government's attempt to "manipulate conscious­ uardo Herrera. According to reliable reports, the Panamanian ness" by introducing into "world public opinion an image of Contras are getting ready for an "October surprise" -an in­ Panama and its leaders which is nothing more than a product vasion of Panama to try to kill General Noriega. The Contra of its own invention, a fiction manufacturedby its agents." operation would be openly backed militarily by the United He denounced the "massive disinformation campaign" States. against Gen. Manuel Antonio Noriega, head of the Panama­ Any U.S. military action against Panama would be dev­ nian Defense Forces, as a "sinister tissue of lies and false­ astating for the entire Ibero-American continent. In calling hoods," organized and carried out by the U.S. government. upon the world community for "solidarity" with Panama, He said that the way that campaign had been carried out was Solfs Palma warned that only the immediate integration of a "new war of conquest," and the details and techniques Ibero-America could prevent Panama from becoming "the should be observed carefully by other nations. The Panama­ last link in a chain of similar cases." nian President praised the Panamanian Defense Forces, un­ Asked about his reactions to Panama's appeal to the U.N., der General Noriega, for carrying out an "exemplary war Peruvian Foreign Minister Luis Gonzalez Posada stated his against drug trafficking." country's position: "Latin America's sovereignty is a com­ In appealing for an end to the U.S. aggression against his mitment that we all share" and added, "our main concern is country, Solis Palma reminded the American people of the that, yes, we have to accelerate the process of Latin American most "distinguished and illustrious citizen" of the United integration. " States, John Quincy Adams (President 1824-28), who warned "Latin America is in crisis, and in a great crisis ....The his governmentof the danger of going beyond its borders "in only way out of this crisis is advamcing deeply, without bur­ search of monsters to destroy." He then charged that the U. S. eaucratism, without delay, in an Ilrgent and vital process of governmenthas gone to the extreme of "inventing monsters" integration. "

EIR October 7, 1988 International 39 Interview: Manuel Solis Palma

The world must uphold the Carter-Torrijos treaties

Panamanian President Manuel Solis Palma granted EIR re­ ing with the Pentagon pn,'vf'rltain any to date . Thus we civilians, or civilians above them. It's a matter of simple tend to think that the funds of the Panamanian people are I unity-a consolidation of the two forces, in order to carry being used in an unprecedented, irresponsible and inexplic- forward a country's progress and development. able way , for actions of such a indo If this is so, I simply But to believe that Panama can go back to the times when think that very few things can remain in the world which will we civilians dominated the military and could have them at still surprise us. our beck and call, is unreal. Neither can the proposition be ! maintained that the Army should totally dominate civilians. EIR: There are various bills before the U. S. Congress which It's a matter ofjoint responsibilities. But they don't want this go as far as demanding the abrogation of the Canal treaties­ theory applied in Panama, although I'm sure that the civilian the one presented by Rep. Phil dane, for instance. How do governmentof the United States doesn't act without consult- the government and people of Panama plan to enforce those

40 International EIR October 7, 1988 treaties in 1999? Solis Palma: The signing of the treaties was possible be­ cause General Torrijos, in a moment of great historical scope, sought the world's support for them. I think we would have to follow the same course. It's a matter which we must put to the world community, because Panama alone wouldn't have AMERICA the strength to stop any action of a contrary nature. The entire world, which was co-responsible for the signing of these � LO Treaties, has the obligation today of backing Panama in this VE'S difficult and perilousmoment . PALMA EIR: High-ranking officialsof the Peruvian governmentre­ cently said that the International Monetary Fund is trying to retaliate against President Alan Garda of Peru, because he broke the rules of the game with his debt policies, and hopes to teach other debtors a lesson. What potential is there for the people and governments of Ibero-America to jointly defend Panama and Peru, which suffer similar aggressions? Solis Palma: I couldn't say how much potential there is, but that is one of the things I plan to bring up [at the General Assembly]: that our countries must go beyond verbal state­ ments and rhetorical support, toward true, concrete support for countries such as Panama and Peru, which are being attacked economically for the most part. Demonstrators greet President Solis Rhetorical support has been very positive for us. To some airport on Sept. 25 . extent it has thwarted actions by the U.S. government, but on the other hand, there has been no concrete aid to help us EIR: The United States insists that anama's main problem avoid the economic calamity which now besets us and con­ is a lack of "democracy" The United States has been criticized sequently, of course, creates anxiety and unrest among the in Ibero-America for thinking that it has patent rights on poor. democracy. How do you feel about that? Solis Palma: Panama's "lack of democracy" falls in the EIR: The New York Times said recently that Panama has context of two or three facts. First, that we've closed a few only two options: either become another Cuba-"cubanize" radio stations; that in some cases we

EIR October 7, 1988 International 41 allow itself to be overthrown, much less when these gentle­ EIR: The International MonetaryFund is meeting presently men answer to some internationalgame , rather than an inter­ in West Berlin, and the possibility of certain changes has nal struggle. come up. Do you think it possible to attain a solution to the On the other hand, what is the concept of democracy? Do foreign debt problem within the IMF framework, or would it we want to bring in the same patterns, the same standards? I be necessary to create new institutions, a new economic myself just saw here a few people who were protesting, and order? they were fe nced out so that they couldn't come through. But Solis Palma: If the InternationalMonetary Fund were to act here they respect the barrier. In Panama we must employ according to the current reality, in which all countries have other means to prevent demonstrators from taking aggressive difficulties dealing with their foreign debt-and it is an un­ action against national sovereignty. So this isn't the stuff of deniable fact that the foreign debt constitutes a drain on the democracy; we can't be establishing rigid and equal stan­ economies of all our countries-then it would have no alter­ dards for all countries. Every one has its own culture, its own native but to change its policy, modify it. Otherwise, it will traditions and forms of government. And every one practices have to disappear, because new internationalfinancial mech­ them afterits own fashion. Democracy involves fundamental anisms will have to come into being, which are more in tune aspects, which are far more serious, far more substantive, with the experience our peoples have had, and which will than the formal democracy which they sometimes wish to make up a whole new orientation and reality. impose. Let Panamanians deal freely among themselves, and you'l! see that we not only allow liberty of expression-we EIR: What importance does John Paul II's latest encyclical, allow even libertinism when we are leftto ourselves. Sollicitudo rei socialis, hold for Ibero-America in its fight for integration? EIR: Recently Panama hosted the Meeting Towards a Sec­ Solis Palma: The Holy Father's position, as always, has a ond Amphictyonic Congress. How important was that meet­ great unifying force which makes understanding among our ing for Ibero-American integration? Do you feel, Mr. Presi­ peoples, our masses, more feasible; it is a very important dent, that conditions are ripe for such integration, or shall it foundation for political layers to act upon, on the basis ot remain a dream, a utopia? such a holy blessing, which is extremely important to all our Solis Palma: That conference was really, extremely impor­ peoples. The Holy Father's statements are a kind of tranquil­ tant. Yet, it was but one step toward the work still ahead, izer and an aid to communities with a high level of Catholi­ which won't be easy, or simple. We have differences in Latin cism and faith. America which would have to be overcome, and above all, there isn't a Latin American country which doesn't have EIR: The American people have been subjected to a very some greater or lesser degree of penetration by the long hand intense misinformation campaign about Panama. Newspa­ of the United States, as Bush has said, which is always pers distort reality nearly every day; the subject of General touching every country, so that we don't, in fact, unite, for Noriega even had a prominent place in the Bush-Dukakis they know what the effectof Latin American unity would be debate. Supposedly the only thing those two gentlemen agree for the hegemony of the United States. on is the need to depose Noriega. What message would you But that doesn't mean that we won't try to continually like to convey to the American people? strive ahead toward that dream, that ideal, which sooner or Solis Palma: Your questions seem to anticipate the speech later we must transform into a reality. I'm giving tomorrow, because that is one of the themes I'll present. EIR: Are you optimistic about being able to attend theGroup I maintain that the American people have been fooled, of Eight presidential summit in Uruguay next month? and that such misinformation is one of the most dangerous Solis Palma: I don't know if I'll be able to go, if some weapons that highly developed countries use against weak problems will have been solved by then. At this time, I am ones. We must do something to face this new weapon of far more optimistc about Panama's re-entry to the Group of aggression which has come into play. The American people, Eight, because there have already been very important state­ of course, have fallen for such misinformation, which is ments, like the one by Peruvian Prime Minister Armando totally deliberate and scientificallytuned to attaining the sub­ Villanueva, and also the ambassador of Uruguay. Up to this jugation of small, poor nations and now particularlyPanama . point, Uruguay had not had a positive attitude toward Pana­ We have no alternative but to denounce it, since we ma. They have admitted that they acted precipitously and that haven't the resources to counter-penetrate them, because we the matter calls for reconsideration. are not at such a technological level yet, nor do we have the Perhaps Panama's return will not at first immediately means to do it. That takes a lot of economic resources; com­ open the doors to my own presence in Uruguay, but the mere mand of so many communication media, so many technical fact of returning would allow us again to assume our leading aspects that are not within our reach, precisely because we role in that group. That's what's important. are underdeveloped.

42 International EIR October 7, 1988 in Palestine is the Hamas (Zeal), acronym for the Islamic Resistance Movement, whose main base is among the poor in the Gaza Strip. Contrasted with the PLO, which favors a secular state of Palestine, Hamas wants to found an Islamic Republic similar to Iran. Hamas also rejects the "two-state Israeli Massad backs solution" that the PLO has increasingly adopted, which would accept neighboring states of Palestine and Israel, living to­ Arab fundamentalists gether in peace. Originally, Palestinian sources report, the Israeli Estab­ lishment thought it had an added ace-in-the-hole, because by Scott Thompson Hamas rejected the "armed struggle" preached by the PLO. It was at this time, Palestinian sources add, that Israeli Mos­ Shortly after the Palestinian uprising began in the Israeli­ sad funds went for the training of members of Hamas with occupied territories, Prime Minister Yitzhak Shamir warned the Muslim Brotherhood in Egypt, which is banned as a party that the uprising had been taken over by Islamic fundamen­ because of its role in continual destabilizations-including talists. Shamir sounded this alarm in WesternEurope and the the assassination of Egyptian President Anwar Sadat by a United States, in an attempt to break support for the Palestin­ radical wing of the Brotherhood known as Jihad (Holy War) . ians, whom he portrayed as having turnedtoward the funda­ Thus, Israel had, as a matter of "security policy," arranged mentalists' concept of Jihad, or Holy War. for the covert alliance between Hamas and those forces that Now, several reliable sources have confirmedthat it was murdered the Arab leader who had undertaken the "Camp an Israeli intelligence operation that encouraged the growth David" peace negotiation with Israel. of that very Islamic fundamentalism against which Shamir There are Palestinians today, who believe that Israel may had warned. The Israeli Mossad's purpose was to pit its now recognize that it has created a "Frankenstein monster." homegrown fundamentalists against the Palestine Liberation Where Hamas initially rejected "armed struggle," it is now Organization for control of the uprising . Shamir has not only Hamas that rejects attempts by PLO chairman Yasser Arafat been caught crying "wolf," but the security services of his to tum the uprising into diplomatic gains. An even more country are now found playing with Islamic fundamentalist radical wing of Hamas emerged after the Islamic Revolution forces in a fashion that could mean suicide for the state of in Iran, known as Islamic Jihad, which has launched a series Israel by the tum of the century. It was the same suicidal of assassination attempts against Israeli occupation officials impulse, following Anglo-Venetian imperial policies of the and Jewish settlers. Last year, Israel cracked down upon "Great Game," that led a significant faction in Israel to sup­ Jihad in the Gaza Strip, arresting dozens of activists and port the policy of dumping the Shah of Iran in exchange for expelling six others, including Sheik Abd Aziz Odeh, who the Ayatollah Khomeini. This policy, begun in consonance was the publicly identifiedleader of the group. with the Carter administration, continued into the second Despite this crackdown on Jihad, Hamas has continued Reagan-Bush administration, when the Israelis suckered the to operate unhampered by Israeli occupation forces, who United States into attempting back-channel deals with Iran regularly shoot, beat, and arrest members of the PLO-linked over release of the hostages. council that runs the uprising . Lately, Hamas has come to criticize the PLO openly, on the basis that Hamas claims all The rise of the Muslim Brotherhood of Israel/Palestine as an Islamic trust. Hamas has also called The Muslim Brotherhood, an Islamic fundamentalist cult lately, through public spokesman Sheikh Ahmed Yessin, spawned by the British Secret Intelligence Service out of head of the Islamic Center in Gaza, for a Jihad against Israel. Oxford and Cambridge, has been officiallyactive in the Mid­ Also, in mid-August, Hamas made a bid for increased influ­ dle East since 1928. British SIS has used the Brotherhood ence in the West Bank, where the uprising was previously repeatedly to destabilize such governments as Egypt, where under solid PLO control. Hamas called for a general strike to it has sought to erode any progressive political current. After mark the 19th anniversary of the first attempt to destroy the the death of its British-trained leader Sabri al-Banna, the Al Aqsa Mosque on Jerusalem's Temple Mount, which has Muslim Brotherhood went underground, with a secret lead­ been a repeated target ever since for Jewish fundamentalists ership, to become the scourge of any Middle East government who seek to rebuild Solomon's Temple on the mount and that sought moderation. The Muslim Brotherhood's reach expel all Arabs from the occupied territories. extended into Palestine in the 1940s, where it remained a During the one-day general strike, youth linked to Hamas minor force until the recent period, when the Israeli Mossad openly clashed with PLO leaders to enforce the strike, while picked it up, to foster it in the occupied West Bank and Gaza Israeli occupation officials let them carry out these attacks. Strip as a counterweight to the PLO. In its covert support for Hamas, Israeli authorities are truly Today, the most active wing of the Muslim Brotherhood playing with national suicide.

EIR October 7, 1988 International 43 at least six priests have been murdered in the last few years. The fightinghas intensifiedsince the guerrilla kidnaping of 11 police officers and 11 soldiers in Cordoba on Aug. 23. Despite a successful military encirclement of the several­ hundred-man guerrilla unit holding the hostages, the govern­ Te rrorist guerrillas ment ordered a military demobilization in the area to permit the release of the kidnap victims on Sept. 16. Not one guer­ lay siege to Colombia rilla was captured, the country was embroiled in foolish ne­ gotiations for weeks, and in the end, the governmenthailed the hostage release as a "positive response" to its peace ini­ by Val erie Rush tiatives.

The Colombian government, under the influenceof the inter­ A crippled defense capability national human rights lobby, is enmired in illusory effortsto The military has not only been hamstrung by a govern­ secure a "democratic" peace for the country. While it engages ment more concernedwith the "human rights" lobbyists peer­ in endless rewrites of its draftpeace proposal to the country's ing over its shoulder, than with defense of its national sov­ mocking guerrilla movement, the nation is under permanent ereignty; it is also victimized by a finance ministry unwilling siege by Moscow's "irregular warfare" batallions. to budget for even the most minimal requirements for its A score or more confrontations are occurringeach week troops, by terrorist apologists within the country's political between the Colombian military and thousands of heavily elites who are on a permanent witchhunt against "military armed narco-terrorists, whose leaders are trained for the most abuse," and by a justice department which has been repeat­ partin Moscow, Havana, and Managua. This undeclared war edly blackmailed by narco-terrorists into releasing witnesses is wreaking havoc with the economic infrastructure of the and buryingevidence against the dope cartelsgathered through country and is taking untold numbers oflives. A sampling of military offensives. such incidents over the course of the past few weeks includes The Armed Forces have repeatedly, if diplomatically, the following: criticized the Barco government's shackling of their defense • A police patrol was lured out of its barracks and am­ responsibilities. Air Force Commander Gen. Alfredo Ortega bushed by guerrillas in Putumayo; three were killed. A sim­ Caicedo told a military ceremony that the guerrillas could not ilar action took place the same day in Cauca; three police be trusted in any peace negotiations: "On the one hand, they agents were killed. A combined assault by the FARC and M- propose peace, and on the other they shoot bullets." Armed 19 guerrillaforc es on a police substation and town in Caqueta Forces Commander Gen. Manuel Jaime Guerrero Paz de­ killed 2 policemen and wounded 12. Five towns in Cauca clared in a public forum Sept. 2 that "the situation of Colom­ province were hit simultaneously by FARC guerrillas, with bian violence is the most critical in the Americas, and has as a toll of five dead. In nearly every case, weapons included its origin a geostrategic factor-the location of the country grenades and rockets. within the American continent-which falls within the • The administrative headquarters of Colombia's Sec­ framework of the East-West conflict." ond Division in Bucaramanga, which oversees 30 batallions As the fighting intensifies, the Colombian economy is and 3 brigades in three guerrilla-infested Colombian prov­ being shattered. Major income losses from terroragainst the inces, was hit by a powerful car-bomb. The Second Division oil industry have led to shortages of foreign reserves for debt is under the command of Gen. Farouk Yanine Diaz, a re­ repayment, leading the government to cut deeply into such nowned counterinsurgency specialist. Ten civilians and 3 budget categories as defense, infrastructure, and social ser­ military men were wounded. Simultaneously, 15 guerrillas vices. This in turn has triggered widespread discontent among assaulted a military air base in Barranquilla. the population, which is already lliving under wartime con­ • Three armed members of theNational Liberation Army ditions. (ELN) were shot and killed during an attempted assault on In what could prove the first of many such cases, the oil­ the New Granada Batallion protecting the oil-refining city of refining Pacific port city of Tumaco, near the Ecuadorean Barrancabermeja. border, has just declared its determination to secede from The list goes on. There is not one province in Colombia Colombia. Having gone for months without energy, water, which is not witnessing heavy combat between guerrilla and education and health services, the inhabitants have grown military forces, and in several places, peasant exoduses out desperate. The mayor's office, the police barracks, and other of conflictzones and into the cities are being reported. Car­ administrative government centers have been sacked and dinal Alfonso Lopez Trujillo reported Sept. 21 that his life burned, and mobs reportedly infiltrated by guerrillas have has been repeatedly threatened by terroristsand drug runners, left at least one dead and scores wounded. A curfew was that he has escaped several assassination attempts, and that imposed and a military chief assigned to keep order.

44 International EIR October 7, 1988 Report from Paris by Laurent Rosenfeld

Voters reject 'politics as usual' politicians who joined the cabinet, The victory of absenteeism, and the relative breakthrough of the "Durafour crematoire," the expres­ sion four crematoire meaning crema­ European Labor Party, marked the countyelection results . torium), created an uproar in the coun­ try, not only among the liberal finger­ waggers, but also in traditional Cath­ T he clear winner of the county elec­ pany, or how to reorganize the "French olic circles who had previously voted tions in France on Sept. 25 was absen­ Audiovisual Landscape," i.e., who for him. So, even the Le Pen protest teeism. Less than half of the voters controls which TV channel. No dis­ did not make much sense anymore. affected by this election covering half cussion whatsoever on such "second­ The obvious result of these com­ " of the country went to the polls, an ary issues as economic policy, de­ bined elements was that many people abysmal figure comparedthe usual 70- fense, or the infamous "Europe 1992," found it useless to take the trouble of 80% participation of the French elec­ which will strip the country of its sov­ going to the pons. torate. Why did the French voters "go ereignty by deregulating the money The important other result is the fishing," as the saying here goes? markets and set up controlled disinte­ relative breakthrough of the European Admittedly, there have been five gration of the food supply. Labor Party (POE) candidates who, votes this year (two rounds for the In the aftermathof the presidential by addressing real issues such as the presidential elections, two legislative election, the big game of "opening," destruction of agriculture and the ne­ rounds, and now the county elec­ i.e., trying to include some center­ farious implications of the Single Eu­ tions), and two more are ahead (the right-wing factions in the left-wing rope Act of 1992 for citizens' living county run-offs, and a referendum on government, made matters even standards, frightened the well-estab­ New Caledonia coming up in Novem­ worse. Many voters, who voted for lished political honchos so much that ber) . That is, in total, seven in one people like Raymond Barre against every trick in the book was used to try year, to which will be added, early Fran<;ois Mitterrand, now see Barre to prevent the POE from campaign­ next year, the city elections in March trying to ally with the President by ing. (another two rounds), and the Euro­ having several of his friends become These methods, aimed at intimi­ pean Parliament election in June. Too members of the cabinet, and feel they dating POE candidates, achieved only much voting? Yes, of course, that is have been swindled. very limited success: Out of 378 can­ part of the problem. In brief, the French voters have didates, only half a dozen dropped out But there is more-much more. In had enough of what is called the of the race. normal conditions, most French vot­ "wooden language"-technocratic The others reached the highest ers would nonetheless vote in such cir­ jargon used by politicos to beat around scores ever for this party-as much as cumstances. A recent opinion poll or­ the bush and avoid any issue-some­ 5%-especially in farming districts. ganized by a TV channel may be the thing similar to what was inflicted on None got anywhere nearvictory-lack tip-off: "Do you still understand U.S. TV viewers who decided to watch of recognition factor due to financial French politics?" was the question to the Bush-Dukakis debate. It is in this limitations is still very high-but the which 80% of the polled individals framework, of course, that extreme POEis theonly partywhose scorewent said, "No!" The traditional right-left right-wing populist demagogue Jean­ up in many places, often doubling opposition has gone out the window, Marie Le Pen gave many the impres­ compared to previous races, despite as both sides are perceived to promote sion of courageously raising the real the fact that one-fourth of the usual the same austerity policy-no wage issues, and this is the reason for the voters did not vote! increase to avoid inflation, high un­ high results scored by Le Pen and his As it does not seem very likely that employment because of high taxation National Front in this year's polls. this comes as .a lesson to the petty­ on corporations, etc. But Le Pen's mindless ideas, or minded other parties, one can assume The battlefieldis strewn with emp­ rather lack of ideas, could not appeal that this take-off of the POE is but the ty images, grandiloquent statements, very long to most voters. His way of first step of a process which may well and petty debates on such issues as grabbing media attention by making soon rock the French political scene. who is to be appointed the head of tasteless puns (he called Michel Dur­ And, as we said at the beginning, oth­ such and such state-controlled com- afour, one of those center-right-wing er elections are. soon coming up.

EIR October 7, 1988 International 45 Report from Rome by Antonio Gaspari

Drug mafia organizes for 1992 Opium War against China and dictat­ Two companies that should come under scrutiny are Philip ed the conditions of peace, including Morris and the new Jardine Insurance S.p.A . in Italy. legalized opium trafficking. Accord­ ing to Beeching's book The Opium Wars, Jardine, Matheson has kept ac­ tive participation down to the present in heroin traffickingwith the Far East. Jardine Insurance S.p.A. will be T he publicity barrage depicting traffic, which is in constant expan­ the Italian correspondent firm of 1992 as the threshold of a new, polit­ sion, confers today an unprecedented Lloyds of London. The president of ically and economically integrated powerto mafia-styleorganized crime. " the new company, Jardine Insurance Europe is providing a smokescreen for Referring to the UnifiedEuropean S.p.A., is Alberto Cordero di Monte­ a host of unsavory schemes. Not only Marketof 1992, Parisi said that it "will zemolo, whose brother Luca chairs the will the projected abolition of customs see the progressive dissolution of the organizing committee for the world controls clear theway for multination­ present national frontiers with events soccer championships to be held in al firms to gobble up independent small that outstrip . . . every possible fore­ Italy in 1990. and medium businesses, but the free cast." The Philip Morris story is a bit traffic in capital will bring easy im­ The commander ofthe Tax Police, more complicated. The well-known munity to "Dope, Inc." Gen. Gaetano Pellegrino, showed his leader in production and sales of to­ The mafia we are talking about is concernabout the 1992 liberalization bacco products (Muratti and Marl­ not the kind stereotyped in films like of the markets in an interview of Aug. boro) has been tempted for some time The Godfather, nor even the bloodier 20 which was printed in all the press. by profits from marketing drugs. and truer version of the clashes be­ General Pellegrino said: "The mafia is According to a Tax Police report tween crime kingpins Luciano Liggio already capable of moving billions published on June 24, 1983 by the and Tommaso Buscetta. Atop the pyr­ fromone countryto another. We favor Rome news agency OP, collusion has amid controlling narcotics smuggling liberalizing currency, but we demand emerged between Philip Morris, the are the world's biggest financial insti­ that there remain traces of the opera­ Italian Radical Party, and the busi­ tutions. tions so that the dynamic of flows can nessman of the outlawed P-2 Free­ The ex-chief of the Italian domes­ be reconstructed. For this, coopera­ masonic lodge, Roberto Memmo, with tic secret services (SISDE) Vincenzo tion with the Bank of Italy and the the aim of liberalizing the laws on Parisi, now head of the Prefect Police, Italian Exchange Union is indispen­ marijuana and hashish consumption in during a conference last May 18 at the sable . . . to be able to carry out a Italy: "a target," the report says, Tax Police training school, called or­ broad-based investigation on the in­ "which, if achieved, would allow them ganized crime an actual "anti-state." ternational scale." to make huge earnings from the man­ It is a "seedbed of the universe of Two companies worth looking at ufacture of cigarettes containing such crime, an amalgam of all the criminal more closely in the context of the pre- substances. " pathologies emerging in post-indus­ 1992 reorganization of major firms The Tax Police probe began in trial society, a peril which presents suspected of ties to the dope traffic, 1980, when they were informed that alarming symptoms above all regard­ would be Jardine and Philip Morris. Philip Morris was stockpiling mari­ ing economic criminality, which cor­ The English group Jardine Insurance juana and hashish to get ready for a rupts persons above suspicion and Brokers, ninth in the world ranking of rise in market prices, in a long-term penetrates the legal economic system insurance brokers , has launched itself expectation of liberalized drug laws. and the public apparatus, polluting in Italy by sewing up a joint-venture On June 16, 1988, the left-wing daily them. The complexity of the system deal with the brokerage firm Area. IlManifesto, always well informed on offers countless instruments to eco­ Jardine for more than half a cen­ drug matters , published an article stat­ nomic criminality: creation of ficti­ tury ran the opium trade from India, ing that Philip Morris and its sister tious companies; fraud against credi­ then a British colony, into China. Jar­ tobacco companies met secretly in tors; computer data manipulation; dine, Matheson was so influentialthat Lausanne, Switzerland to "support all stock market , banking, and currency it convinced Lord Palmerston, the the way the campaign for legalization infractions; food swindles ....Drug British prime minister, to start the First of drugs."

46 International EIR October 7, 1988 Andean Report by Val erie Rush

CAP, Latin America's Kissinger? countries, will be indispensable in any Carlos Andres Perez bears the Soviet/Wall Street seal of scheme of negotiation that is adopt­ ed. . . . A decade of crisis has con­ approvalfor his debt strategy . vinced the developing countries that it is worthless to adopt isolationist or confrontationist positions in an inter­ dependent world." Perez's insistence on "reconcilia­ During one of his frequent visits to grams and accept the fact that incen­ tion" also echoes the Soviets. Acade­ the United States on Sept. 21, Vene­ tives to private investment-foreign mician and Latin American specialist zuelan socialist and presidential can­ and domestic-is the only path to sus­ Victor Vol sky has argued against a didate Carlos Andres Perez addressed tained growth." declaration of moratorium by debtor a Harvard University seminar on Third Just a coincidence that socialist nations, and reports that General Sec­ World debt, at which he announced demagogue and "Third W orldist" CAP retary Gorbachov told President Rea­ that "the hour of reconciliation" be­ should sound so like bankers' mouth­ gan of the need for an international tween creditors and debtors had ar­ piece Kissinger? Not really. Perez is conference on the debt, "because it is rived. He proceeded to offer what he providing a critical service to the in­ a global problem, and not merely a described as a novel plan for resolving ternational financial community, Third World one." the debt problem. which intends to put him in the presi­ The coincidence between Perez His novel plan, however, proved dential seat in Venezuela for the next and the Soviets is not accidental, for to be virtually identical to the propos­ five years. Already, the ruling elites the Venezuelan bears Moscow's stamp als published over the past few years in Mexico and Colombia have em­ of approval. In early August, speak­ by former Secretary of State Henry braced Perez's proposal. Even the Pe­ ing of the debt problem, Fidel Castro Kissinger. ruvian governmentof President Alan told his friend Perez: "You are going "Substantial reduction of resource Garcia has been driven to follow suit, to be the President of Venezuela, and transfers abroad, at the same time cre­ thanks to brutal pressures from Per­ you should head up this unity move­ ating mechanisms to guaranteethe flow ez's Socialist International. ment in defense of Latin American in­ of new resources . . . and as indispen­ Perez's claim to a novel approach terests." sable counterpart, the governmentsof to the debt problem notwithstanding, On the day of his Harvard presen­ Latin America must commit them­ he has admitted to sharing his "long­ tation, Perezgave an interviewto UPI, selves to conducting a disciplined eco­ term objectives" with such "presti­ in which he was asked whether, if nomic and financial administration, gious personalities" as "Henry Kissin­ elected President of Venezuela, he with the adoption of policies that pre­ ger, Sen. Bill Bradley, Saburo akita, would act on his long-standing prom­ vent misuse of resources, for which and banker James Robinson." He also ise to "promote a meeting of Latin one cannot object to the participation embraced their "different proposals for American heads of state on the matter of international organizations .... creation of a multilateral agency for of the debt." Perez responded: "As my Thus will the way be paved for invest­ management of the debt ... [that] victory already seems to be a reality, ments by the industrialized coun­ would be in charge of buying the com­ I have to think a good deal about these tries," declared Perez. mercial bank debt of the developing problems and weigh my words very Compare what Kissinger wrote in countries at discount." well, so that what I said as a candidate the New York Post of June 25, 1984: Gone is the rhetoric against the does not contradict what I do as Pres­ "Latin American debtors [should] be "poisonous" International Monetary ident. " prepared to do their part to restart Fund, the dramatic calls for a debtor Making clear why both the Soviets growth, through great efforts of eco­ front, the diatribes against imperialist and Wall Street have endorsed his nomic reform: brake inflation; modify usury. In his Harvard presentation, candidacy, Perez added: "Absolutely factors that discourage savings and in­ Perez opposed the notion of any uni­ nothing will be achieved by a rupture vestments; eliminate subsidies to in­ lateral action on the part of the debt­ of the international financial sys­ efficient industries; administer a sen­ ors. "The participation of the govern­ tem ....There are no longer any na­ sible exchange rate policy. [They ments of the creditor countries, and tional economies and we will gain should adopt] serious adjustment pro- dialogue between them and the debtor nothing with a rupture of the system."

EIR October 7, 1988 International 47 Dateline Mexico by Ruben Cota Meza

From Peccei to Brundtland ance, through use of the law, with the The policy itinerary of lame-duck President De la Madrid has proposed objectives. run the gamut of the world' s most infamous malthusians. However, Brundtland herself is nothing more than the political tool of a handful of financial oligarchs and usurers committed to the task of de­ populating the world. It is they who While the debate over whether Environment and Development over have turned Brundtland into the "su­ Mexico's Laguna Verde nuclear plant which she presides, a new legal, fi­ perstar" of world ecology. will open or not was heating up in mid­ nancial, economic, and political order A look at some of the members of September, Socialist International is proposed, "to be enforced globally" Brundtland's I,OOO-member Com­ Vice President and Norwegian Prime based on the genocidal notion of "sus­ mission is revealing. They include: Minister Gro Harlem Brundtland tainable development." Such a goal Susanna Agnelli, sister of Fiat mag­ stonily declared to a Mexican audi­ would be reached, according to the nate Gianni Agnelli; Saburo Okita, ence that "the risk of nuclear energy report, by "transforming" the Brundt­ Club of Rome member and president transcends national borders; its use is land Commission into "a permanent of the Japanese chapter of the aristoc­ unacceptable. " program of the United Nations for sus­ racy's World Wildlife Federation; Mrs. Brundtland was in Mexico tainable development," which "would Maurice Strong, Canadian energy on the invitation of President Miguel change human attitudes" through an magnate and member of both the Club de la Madrid, who has asked her to "extensive campaign of education, of Rome and Aspen Institute; Sir Shri­ preside over a forum entitled "Our debate and public participation." dath "Sonny" Ramphal, secretary Common Future. Analysis of the Re­ A statement of the Brundtland general of theBr itish Commonwealth port of the World Commission on En­ Commission issued in Tokyo last Feb. and leader in the Inter-Action Coun­ vironment and Development." But 27 asserts that "a successful transition cil, etc. Brundtland did not come to Mexico to sustainable development for the year Particularly striking is the fact that merelyto wave the ecologists' flagand 2000 and beyond requires a massive President De la Madrid has overem­ provide new arguments to Mexico's change in society's objectives. This phasized his agreement with Brundt­ anti-nuclear forces against the open­ also requires the concerted and vigor­ land's Nazi-like proposals. De la Ma­ ing of Laguna Verde. ous pursuit of strategic imperatives. drid, in fact, declared in his speech Her mission was much more am­ The World Commission on Environ­ inaugurating Brundtland's seminar that bitious: the regrouping of the world ment and Development calls upon all she shares "the political thesis of sus­ malthusian movement in pursuit of a nations of the world to integrate the tainable development, above all when new goal-the subjection of the sov­ notion of sustainable development, framed within the need for a new con­ ereign nations of the world to a supra­ both individually and jointly, within cept of integral development. . . . I national dictatorship of the world's their own goals, and to adopt the fol­ agree: the Earth is one, and we already banking oligarchy, under the innocu­ lowing principles as a guide to their know that we cannot live in separate ous-sounding title "World Federalist policy actions." compartments. " Government"or "New Globalism." The principles proposed can be Miguel de la Madrid's readiness It was thus no accident that in her summed up as follows: 1) "Limit" to serve as the instrument of the finan­ statements against nuclear energy, she population to appropriate "ecologi­ cial oligarchy's world globalist strat­ argued that "the risks of nuclear ener­ cal" limits; 2) Reinforce the notion of egy has come full circle, from the days gy are latent, threaten national bor­ "limits" within the minds of the world when, as Budget and Planning Secre­ ders, and generate different kinds of population; 3) Orchestrate deindus­ tary, he sponsored a meeting of the contamination, making it impossible trialization, eliminating energy-inten­ Club of Rome in Mexico, then run by to make an exclusively national deci­ sive industrial forms; 4) Condition in­ the late unlamented Aurelio Peccei. sion" (emphasis added). ternational financial flows and assis­ Peccei's anti-human zeal was so fer­ Brundtland's entire doctrine is tance to the execution of the previous vent, that he once praised cannibalism suffused with such arguments. In the points; and 5) Establish an interna­ as a creative means of survival under report of the World Commission on tional legal system that forces compli- extreme conditions.

48 International EIR October 7, 1988 From New Delhi by Susan Maitra

Demand death for drug traffickers special police training and laboratory The C ongress-I youth organization campaigns fo r an anti-drug facilities, and ensuring the destruction amendment, as the addiction probLem grows. of illegal opium production and strengthening of the counterintellig­ ence networks, among other things. It is not surprising that in the past 10 years, Dope, Inc. has zeroed in on India, situated as it is between the Golden Crescent of Iran-Afghanistan­ Pakistan and Southeast Asia's Golden On Sept. 16, the youth wing of the months, to mobilize supportfor mov­ Triangle-the world's major opium­ Congress-I Party launched a nation­ ing the death penalty legislation in the producing regions. A large country, wide campaign demanding the death next session of parliament, which be­ with open international airports until penalty for drug trafficking, at a day­ gins Nov. 29. 1985, India had virtually no laws long rally in the capital. The Narcotic Drug and Psycho­ against narcotics. For instance, acetic Haroon Yusuf, chairman of the tropic Substances Act of 1985 re­ anhydride, one of the principal chem­ youth Congress Anti-Narcotics Cell, placed the archaic three-year maxi­ icals required fQr the refiningof hero­ appealed to the governmentto amend mum sentences for trafficking with a in, was freely available for sale and the tough anti-narcotics laws adopted minimum penalty of 10 years' impris­ export, and regularlyfound its way to in 1985 to include capital punishment. onment, and a stifffine , and set up the Burma tosupply the refineriesthere. Without such a rigorous step, he told Narcotics Control Bureau to coordi­ By 1984, as the strategic destabil­ the press, it would be impossible to nate a nationwide enforcement drive, ization of the region took hold, begin­ eradicate drug traffickingin India. but legal loopholes and jurisdictional ning with the Khomeinirevolution in Though there are no definitivena­ problems have hobbled the effort, as Iran, the Soviet invasion of Afghani­ tional surveys known to this writer, is reflected in statistics from Delhi. stan, and the rise of Khalistani sepa­ estimates of the number of drug ad­ Only 932 of the 4,931 cases brought ratist-terrorism in Punjab, India had dicts in India range from 500,000 to 2 before the courts in Delhi under the become a major transit point for dope. million-concentrated in Bombay, law fromNovember 1985 to May 1988 In the next several years, what was New Delhi, Calcutta, and other major were ever decided, and of these, there piously hoped to be "merely a transit cities, as well as in the northeast along were only 195 convictions. problem," was quickly transformed the border with Burma. Official esti­ The governmenthas already taken into a consumption and production mates of heroin addicts alone are 500- several steps to strengthen law en­ problem. As the otherwise inexplic­ 700,000. forcement. In July, an ordinance was able large increases in Golden Trian­ Limited surveys do indicate plain­ promulgated providing for preventive gle and Golden Crescent opium out­ ly that the drug trade has spread out detention of suspected traffickersand puts in recent years indicate, Dope, from the confines of the wealthy jet­ their accomplices-including those Inc. had included India in its "market set, to engulf the lower and middle who safehouse and launder the drug survey," as a potentially huge con­ classes generally, and that the users' money-for up to two years. So far, sumer from the outset. age group has shifted from 31-40 years some 200 individuals have been ap­ While the principalmarket for the to 21-30 years. The problem is now prehended under the new regulations. increased production of the Golden acute on many college campuses in Earlier this year, Prime Minister Triangle was the West-both West­ particular. According to a recent study Rajiv Gandhi, who is known to view ern Europe and the United States­ by the Indian Council of Medical Re­ the drug menace as an urgent national still the most massive expansion in search, 25% of the students in large security concern, established a special drugconsumption has beenwithin Asia cities experiment with drugs. New cabinent subcommittee under the itself. In addition to the 500-700,000 Delhi tops the list with 35%. Home Minister to coordinate the anti­ estimated heroin addicts in India, there It is these realities which are Yu­ drug work of the different ministries. are now 300,000 in Thailand, 600,000 suf's main concern. He will tour the Gandhi outlined a 14-point agenda for in Pakistan, 20,000 in Nepal, 35,000 country and bring his message directly the subcommittee that included ensur­ in Sri Lanka, and 100,000 in Malay­ to the people during the next two ing quick destruction of seized drugs, sia.

EIR October 7, 1988 International 49 International Intelligence

suicides, almost 20 per week, committed by 'Bizarre cult'prom pts youth who are dressing in black, wearing Gilbertta kes heavy teenage suicides white make-up on their faces, and sleeping in coffins! In many cases, they would leave toll in Mexico notes explaining their suicide, "The Lord of New Zealand, West Germany , and Yugo­ Darkness called me up ." Hurricane Gilbert, the most violent hurri­ slavia are among the nations experiencing a cane ofthis century, wrought havoc in Mex­ wave of teenage suicides linked to a satanic ico. rock cult. In Yucatan, 400,000 were left home­ Under the headline, "Teenage Suicides Syria talks tough less; 100% of Yucatan's grain and citrus Dash New Zealand Illusions," the Times of fruit harvests were destroyed, and 2,000 London F;ported Sept. 26 on a "surge of on Lebanon boats were wrecked; the salt industry, sec­ teenage suicides," most connected with the ond-largest in the country, was wiped out; "bizarre cult" of listeners to the British heavy Syria will oppose any schemes to partition 20% of the roads were damaged; 80% of the metal/punk rock group "Gothic." Lebanon into sectarian enclaves, according fishing industry, which employed 80,000, Suicide has become the "second-biggest to Syrian Vice President Zuheir Masharqa. was affected; 65,000 buildings were seri­ killer of New Zealanders aged between 15 His remarks were made to Syrian students ously damaged. and 24 ," reports the Times. in Warsaw , Poland, where he is on an offi­ In Quintana Roo state, 35,000 were left The rash of suicides has come among cial visit. homeless, 47 are dead or missing , 50% of young people who dress in the "distinctive "Syria confronted and will continue to the fishing fleet was destroyed, and more black and white garb of the Gothic cult." confront all conspiratorial schemes aimed at than 40 communities suffered serious dam­ They paint their faces white , and wear black partitioning Lebanon into sectarian can­ age. clothes. tons," he told the students. Farther north, 25 ,000 people are isolat­ The music of Gothic is "despondent" "Syria's position toward Lebanon is ed in Nuevo Le6n state , with 30,000 left and "obsessed by death." firm," he continued. "It will continue to homeless; 1.2 million have no clean drink­ Furthermore , youth who get involved in shoulder its nationalist responsibilities to­ ing water and are suffering food shortages. this play "role-playing board games," one ward the brotherly country of Lebanon." In Tamaulipas State, 10,000 were left of which "supposedly originated in the 14th Syria is the main power-broker there, homeless. century ." with 20,000 troops on Lebanese territory . The Times points out that the problem of But its attempt to impose a puppet president youth demoralization is being "aggravated when the term of Amin Gemayel expired Witness absolves SAS by growing unemployment and economic Sept. 23 was rejected by well armed Chris­ pressures." Unemployment in New Zealand tian forces. in killing terrorists is "running at a record high of 9 percent." Currently, there are two rival govern­ Over the past year, in West Germany, ments, a Muslim-led caretaker cabinet led An ongoing inquest in Gibraltar into the kill­ too , especially in the economically collaps­ by Acting Prime Minister Selim Hoss and a ing by elite BritishSpecial Air Service (SAS) ing Ruhr region, teenage cults called "Gruf­ Christian Maronite interim government led troops of three IRA terrorists earlier this year tis" have sprung up , from the German word by Gen . Michel Aoun. Syria has given its has heard a witness against the SAS reverse for "grave ," and they match the description support to Hoss. his story. from New Zealand. Momentum for a military confrontation The witness has admitted that he com­ Youth dress in punkish style, with black is now building. Local observers report that pletely fabricated his earlier story that an clothes and white paint on their faces, ex­ Syria is expected to impose an economic SAS soldier repeatedlyshot an IRA terrorist plaining their appearance by saying they have blockade of East Beirut and the Christian while standing with his foot on his throat. "given their soul to Satan." Suicides linked region. The first confrontation among rival Spanish bank clerk Kenneth Asquez had to this cult have been reported . Similar militias was feared for the end of Septem­ told this tale in an interview with a British phenonema, on a lesser scale, are reported ber, when the existence of two governments Thames Television interviewer, for the in the northern part of West Germany , in could endanger the payment of regular wages Thames TV-expose, "Death on the Rock," West Berlin, and, recently , also in East Ber­ to the army and governmentfunctionarie s. which created a sensation with its anti-SAS lin. Meanwhile , both the PLO and Iraq are "revelations . " Yugoslavia's economically depressed said to be stepping up their aid of the Le­ But at the inquest Sept. 24, Asquez said Zaghreb region also reports a rash of teenage banese Christian forces. he had told this story because he was being

50 International EIR October 7, 1988 Briefly

• SOUTH AFRICA must seal its borders against guerrillas and end apartheid to survive the worst revo­ continually pestered by one of the producers while Western backers are prepared to lutionary onslaught of its history. Law of the show to say it, and because he had 'dump' him in exchange for guarantees that and Order MinisterAdriaan Vlok said been offered money in return ! the 50,OOO-strong Cuban task force in An­ in Johannesburg. Vlok also told gov­ After the TV documentary was aired, gola will be withdrawn on a fixed times­ ernment supporters at an election ral­ British Prime Minister Margaret Thatcher cale ....Cries of alarm in Jamba, Unita's ly in Pretoria: "If we want to survive branded it trial by television. southeastern Angolan base, are being echoed the revolutionary onslaught then we in Lisbon, Washington, and Johannesburg. must rid ourselves of this [apartheid] Dr. Savimbi is facing the harsh reality of cause, this excuse.... We must take being sacrificed in the interest of an entente Soviets propose this stick from the enemy's hands ." between the United States and the Soviet Asian ministers meeting Union." • THE SOVIET UNION has been The Telegraph is now confirming warn­ forced to modify strict anti-alcohol Soviet Ambassador to the Philippines Oleg ings about a conspiracy against Savimbi, laws. Under eased regulations, beer. Sokolov has called for a meeting of regional which had earlier been exclusively reported wine, and champagne will be readily foreign ministers to discuss Moscow's offer in Executive Intelligence Review. A deal available, while vodka will remain to close a garrisonin Vietnam if U. S. forces worked out between the State Department's difficult to obtain. pull out of the Philippines. Chester Crocker and Angolan, Cuban, South Sokolov told reporters in Manila the African, and Soviet negotiators is accom­ • ISRAELI Foreign Minister Shi­ week of Sept. 19 that the offer should "war­ panied, say intelligence sources, by a plot mon Peres and his Czech counter­ rant a meeting of the foreign ministers of to kill Savimbi. part, Bohuslav Chnoupek, held the countries in the region to create a mecha­ first open talks between their two nism addressing the security situation" in countries in 21 years the week of Sept. Southeast Asia. He said Gorbachov 's pro­ 26. posal could be further discussed in negotia- . East-We st fo undation tions "not necessarily confined to the U.S. HELMUT SCHMIDT, former and the Soviet Union," but which include opens in Moscow • West German Chancellor and head of "other countries in the region. " The first "philanthropic" foundation in the the malthusian Inter-Action Council Sokolov said the naval facilities the So­ Soviet Union has begun its activities from a of Former World Leaders , arrived in viets enjoy at Cam Ranh Bay in Vietnam headquarters in Moscow. The International China Sept. 25 for meetings with were as important to the Soviets as Clark Air Foundation for the Survival and Develop­ Deng Xiao-ping , Zhao Ziyang , and, Base and Subic Bay Naval Station are to the ment of Humanity is funded by wealthy U. S. as one of his aides put it, "fifty-year­ United States, "if not more so." financiers, including Armand Hammer and olds who will be China's leaders in Vietnam predictably endorsed Gorba­ the Rockefeller family. The board includes the future ." chov's proposal. But Philippines President leaders from 18 countries and it has been Corazon Aquino does not seem likely to en­ endorsed by Mikhail Gorbachov. THE CIA is behind an attack in dorse the meeting proposed by Sokolov. She • The governing board of the foundation London's Financial Times on Italy 's earlier stated that the military bases were a leaves little doubt that the new institution is Fiat for selling missile technologies matter for the two superpowers to decide. slated to be a joint think tank for the admin­ to Argentina and Egypt, say well­ istration of global crisis management and placed London sources. "It is well Superpowers ready to power-sharing arrangements between the knownin the City of London that Alan oligarchies of East and West. Friedman," the Milan correspondent sacrifice Savimbi Board members include: David Ham­ who authored the Sept. 24 article, "is burg, president of the Carnegie Endow­ a CIA man." Friedman wrote, "The "Superpowers Ready to SacrificeSavimbi ," ment; Jerome Wiesner, president of the U.S. and Soviet Union will on Mon­ headlined London's Daily Telegraph Sept. Massachusetts Institute of Technology; for­ day hold high level talks in Washing­ 24 , in a story datelined Lisbon. mer U. S. Defense Secretary and Lucis (Lu­ ton to discuss the Argentine-Egyp­ Any "peace" in Angola, writes the pa­ cifer) Trust figure Robert S. McNamara; tian missile as well as the prolifera­ per, "may be at the expense of Jonas Sav­ Notre Dame University president Fr. Theo­ tion of other systems capable of de­ imbi, leader of the anti -Marxist Unita move­ dore Hesburgh; and Yevgeni Velikhov, livering nuclear weapons ." ment. . . . There is every sign that his erst- Gorbachov's top science adviser.

EIR October 7, 1988 International 51 TIillNational

Shevardnadze offers U. S. more 'new Yal ta' plums

by Nicholas F. Benton

Prior to his sudden departure forthe hastily called Communist to institutionalize, with the supportof Reagan and Secretary Party Central Committee plenum in Moscow on Sept. 28, of State George Shultz. Soviet Foreign Minister Eduard Shevardnadze's latest ven­ ture onto U.S. soil provided the strongest evidence yet that a The Soviet chess moves new global strategic order, based on the new climate of "de­ To call this a deadly arrangement for the United States is tente" between the United States and Soviet Union, is well an understatement. This was made clear during Shevard­ on its way to realization. nadze's latest visit-both his meetings with Shultz and Rea­ As EIR has warned, the "peace offensive" by the Soviets gan in Washington Sept. 21-23, and his following visit to the has aimed at exploiting President Reagan's desire to go down opening of the United Nations General Assembly in New in history as a peacemaker, in order to deceive the United York. States into embracing a "global condominium of the super­ Consider the developments that occurred duringthe short powers." visit of Shevardnadze to Washington and the U.N.: Under an arrangement of such U.S.-Soviet cooperation • Krasnoyarsk radar. Shevardnadze reiterated Gor­ for international crisis management, the United Nations is bachov's cynical proposal to convert the giant phased-array intended to play a more important role as the policeman of radar at Krasnoyarsk into a peaceful center for international the Third World and the "newly industrialized countries" scientific cooperation. The radar is a violation of the Anti­ (NICs) of Asia, which are now replacing the Soviets as the Ballistic Missile (ABM) treaty, and the strongest material perceived major strategic threat to U.S. interests. evidence, experts say, that the Soviets are preparing a nation­ The Nobel Committee underscored this by its announce­ wide ABM defense system-the kind of system which could ment that the U.N. peacekeeping forces, which have present be used to augment a Soviet nuclear first strike against the and anticipated roles in policing Third World hotspots all West. over the globe, would receive the Nobel Peace Prize this The mere fact that Gorbachov made such a proposal, year. The Committee's first preference, to award the prize during a speechhe gave while standing in front of the facility jointly to President Reagan and Soviet leader Mikhail Gor­ in August, was taken as a signal by Western strategic experts bachov, was passed over, because some feared it might influ­ that the Soviets have no intention of derailing their plans for ence the outcome of the U.S. elections. The committee was a "breakout" of the ABM treaty. His proposal was seen as an also leery of the outcome of what most analysts considered a attempt to influenceWestern public opinion against previous preemptive power play by Gorbachov at the suddenly called U. S. demands that the radar facility, larger than a football Communist Party confab Sept. 30. field, be tom down entirely. Experts know that allowing the However, the combination of choices before the Nobel facility to stand, while claiming merely to remove the radar Committee-Reagan and Gorbachov, on the one hand, and disks, leaves the Soviets with the capacity to re-convert it the U.N. peacekeeping forces on the other-point to exactly back to a radar installation at virtually a moment's notice. thedeadly "condominium" combination theSoviets are trying Nonetheless, Secretary of State Shultz indicated that the

52 National EIR October 7, 1988 United States is considering swallowing the Soviet offer, try and infrastructure development in the West and the Third during a press conference at the White House following his World. three-day visit with Shevardnadze Sept. 23. "We're taking The Soviet "environmentalist" push would work hand in another look at the Soviet proposal," he said. hand with the West German Greens and other anti-technolo­ When an EIR reporter challenged Shultz to say what the gy movements in the West to shut down the nuclear industry Soviets were demanding in exchange for their "offer," noting and large-scale development projects. Shevardnadze said, that "Krasnoyarsk has been a pawn, a part of Soviet efforts "Faced with the threat of environmental catastrophe, the di­ to get us to abandon our Strategic Defense Initiative," Shultz viding lines of the bipolar ideological world are receding. retorted, "No, no, no ! What we're working on now doesn't The biosphere recognizes no division into blocs, alliances or

have any links to those kinds of things. " SYSl" .. lS . All share the same climatic 'system and no one is in During his press conference at the Soviet embassy an a position to build his own isolated and independent line of hour later, Shevardnadze confirmed that the United States environmental defense. It is much more sensible ...to abol­ ; was "rethinking" the Soviet "offer, ' but instead of saying ish some planned or on-going military programs and channel there wereno strings attached, added, "We think it would be the funds thus released toward instituting an international good for the U.S. to give thought to dismantling its radar in regime of environmental security. " Thule, Greenland, in exchange." • Sino-Soviet rapprochement. It was announced at the • Afghanistan stall. Shevardnadze announced at the United Nations that the foreign minister of the People's Re­ United Nations that the Soviets are putting the second phase public of China would visit Moscow before the end of the of their troop withdrawal from Afghanistan on indefinite year, the first such visit since the breakdown of Sino-Soviet hold, because of continued military attacks on the Kabul relations in the 1950s. This is perhaps the single most omi­ regime by Afghanistan rebels. This announcement came as nous development coming out of Shevardnadze' s visit, given no surprise to those analysts who doubted that the Soviets how far the United States has committed itself to the "China were serious about withdrawal in the first place. It merely card." underscored what the new Soviet policy toward the Third The thought of a new Sino-Soviet alliance, relieving the World actually is: Direct military intervention will only be Soviets of their military obligations on the eastern front and pulled back under conditions where client states and puppet shoveling all the technological concessions the United States regimes are thoroughly stabilized. has made to the P.R.C. right into Soviet hands, sends chills Predictably, State Department spokesman Phyllis Oakley down the spines of Westernsecurity analysts. said Sept. 28 that the United States has told the Afghan rebels that "it is not in their interest to fire on withdrawing Soviet The deception is working troops ." These are all ominous signals that the new global con­ If this policy were applied to southern Africa, where dominium of the superpowers is nothing but Soviet decep­ Moscow is ostensibly cooperating with Washington to en­ tion, exploiting the "warm fuzzy" media reaction that Presi­ courage peace talks between the ruling MPLA party of An­ dent Reagan received for the signing of the INF treaty, after gola and the Republic of South Africa, then it can be assured his harsh experience with the Iran-Contra scandal. The reality that the Soviets would never permit the withdrawal of Cuban remains that the Soviets are moving ahead as ruthlessly as troops and Soviet materiel from Angola, unless the anti­ ever to achieve global hegemony. communist UNITA movement of Jonas Savimbi is shut down. But what impact has all this had on President Reagan or • Electronic warfare. During his press conference, Secretary Shultz? Shevardnadzewas confronted by EIR with information about Shultz bubbled at his Sept. 23 press conference, "I think the Soviet development of battlefield electronic warfare ca­ what we have in place is something that works , and that has, pabilities-both electromagnetic and radio frequency weap­ on the whole, produced a lot of results. If you take the situa­ ons-which has been published in EIR , and some of which tion today and compare it with the situation in the middle of also appeared in a recent issue of Aviation Week magazine. 1985, it's practically night and day. Thisprocess has worked." Shevardnadze refusedto answer the question, and instead Then Shultz went to New York to hear Shevardnadze went into an evasive dissertation on the alleged effort the give his speech to the U.N. He cut short a press conference Soviets are undertaking to shift their military posture from an so as not to miss a word of Shevardnadze's speech, and, offensive orientation to one based on "defensive sufficiency" unlike years past, when Shultz was ordered to walk out during in EasternEurope-even though militaryexperts in the West the Soviet speech at the U.N., this time he stepped forward see no concrete signs of this. to warmly embrace the Soviet foreign minister in front of the • Global'environmentalism. In his speech to the U.N., U.N. General Assembly. Shevardnadze singled out the "importance" of superpower As for Reagan, his reaction was similar. Commenting on cooperation on the issue of global environmentalism, calling the special Communist Party plenum in Moscow, Reagan for the formation of an "internationalregime" to slow indus- said, "I hope Gorbachov succeeds ."

EIR October 7, 1988 National 53 convinced that Dukakis would prove to be more congenial than Bush would." Just who are the individuals Who will shape U.S. foreign and military policy in a Dukakis administration? To a man, they come out of the Pugwash networks which have been loudly proclaiming the virtues of working out a "New Yalta" deal with Moscow for the past 30 years . To a man, they suffer the fatal delusion that the momentous upheavals now taking place in the Soviet Union mean that Moscow is more prone to making deals with the West than at any time in recent The pro-Moscow bias memory. All agree that getting rid of the Stategic Defense Initiative of the Dukakis team is an absolutely necessary aspect of their proposed deal with the Soviets. Blindly ignoring all the signs that the internal turmoil by Kathleen Klenetsky within the Soviet Union will actually impel Moscow to war, and that the West must beef up its defenses to deter World Michael Dukakis's recent, highly publicized "pro-defense" War ill , Dukakis's advisers insistthat the United States should turn is just the latest in a string .of "con" jobs which the seize the "golden opportunity" to strike a deal with the So­ Democratic presidential candidate is attempting to pull on viets, even if that means dismantling American defenses. the American electorate. Several of them have been involved up to their eyebrows in The candidate can pose all he wants in tanks, but his various "back-channel" operations with the Soviet Union, antics cannot alter the fact that he is "viscerally anti-mili­ explicitly aimed at undermining various aspects of U.S. na­ tary," as former Defense Secretary James Schlesinger put it tional security. in Time magazine this summer, or that a Dukakis administra­ Perhaps the most blatant case of pro-Moscow bias in the tion will preside over the final dissolution of the Western Dukakis camp is Jerome Grossman, a member of the cam­ alliance. paign's national financial committee. Grossman serves as Dukakis is a front-man for that faction of the Eastern executive director of the Council for a Livable World, a Establishment which lusts aftera global power-sharing rela­ Boston-based, one-worldist outfit, established by Bertrand tionship with Moscow, and is consciously committed to sur­ Russell's collaborator Dr. Leo Szilard in 1961. rendering the national security of the United States and its Grossman admits that one of the CL W' s main goals has allies to show "good faith." been to "put people in office in the legislative branch who Although it is certainly the case that Dukakis holds a believe in negotiating a deal with the Soviet Union." personal bias against Western security interests, it is the Judging by its record, the CLW has had great success. In advisers who surround him who actually determine his cur­ an expose that rocked Walter Mondale's presidential cam­ rent and future policies. As a top Establishment insider con­ paign to its foundations, EIR revealed in May 1984 that the fided in the spring: "We've decided to go with Dukakis, Soviet embassy in Washington was actually drafting some of because he knows how to take advice and will appoint the the key anti-SDI and anti-ASAT legislation then being intro­ right kind of people to his government." duced in Congress. The legislation was conduited through an The Soviets share that view: According to a well-in­ obscure Washington think tank, called the Institute for Se­ formed source, two of Dukakis' s top strategic advisers, Gra­ curity and Cooperation in Ourer Space, to the ad hoc ham Allison and Joseph Nye, spent the afternoonof Aug. 31 Congressional Space Policy Working Group. CLW's Wash­ in Washington closeted with several leading Soviet "Ameri­ ington director, John Isaacs, was a friend and collaborator of canologists," among them, Literaturnaya Gazeta's Fyodor this space institute's director Carol Rosin, and also had con­ Burlatskii, who "wanted to know everything about their po­ tacts with the Space Policy Working Group. sition on issues of concern to Moscow," beginning with the One of the sponsors of the Soviet-drafted anti-SDI legis­ Strategic Defense Initiative and ranging through U.S.-East lation (House Joint Resolution 120) was Rep. Joe Moakley­ bloc economic relations, South Africa, the Mideast and other a Massachusetts Democrat who has just been named to an regional "hot spots," and a variety of arms-control questions. important post in the Dukakis apparatus. "The Soviets know that the best way to find out how a Dukakis administration will handle these issues is to findout 'Let's make a deal' what Dukakis's advisers think," said the source. "They're Dukakis's other key advisers, Nye and Allison, along well aware that, for all practical purposes, advisers generally with Madeleine Albright (a protege of Carter National Se­ determine policy." He added that Burlatskii et aI. were "clearly curity Adviser Zbigniew Brzezinski and prime architect of

54 National EIR October 7, 1988 the Mondale-Ferraro "kill SDI" campaign in 1984), have all ments in American and allied conventional forces, they ar­ been major players in various "back-channel" operations with gue, a reduction in nuclear weapons would lessen the chances the Soviets. This is particularly true ofNye and Allison, who, for nuclear war. This line of thought is clearly reflected in as EIR was going to press, were about to hold a special forum Dukakis's defense policy statements, in which he has called in Cambridge, featuring Fyodor Burlatskii, on the future of for emphasizing U. S. conventional defenses, at the expense glasnost and perestroika . of nuclear and other weapons. Deanof Harvard's Kennedy School of Govemment, where This conventional versus nuclear debate is completely Dukakis spent time getting retooled after his disastrous elec­ specious: The Soviet Union's war plans call for utilizing toral defeat in 1978, Allison is a longstanding member of the every option in its arsenal-conventional, nuclear, strategic one-worldist Trilateral Commission founded by the Rocke­ defense, as well as such new technologies as radio-frequency feller family. In 1976, he co-authored a Trilateral report, weapons. Were Dukakis to follow through on his so-called "Remaking Foreign Policy," which called for a total overhaul "conventional defense initiative," Moscow would have no of the federal governmentfor the express purpose of elimi­ military reason not to launch a strike against the United States nating constituency input into foreign policymaking. or WesternEurope . Although he styles himself as an "owl," as distinct from On top of this is the fact that Dukakis-again echoing a hawk or a dove, Allison has been among the most vocal advisers like Nye and Allison-has repeatedly stressed that propagandists on behalf of the glories of glasnost. In an essay he will put conventional force reductions on top of his admin­ in the Fall 1988 issue of the Council on Foreign Relations istration's arms-control agenda, meaning that his vaunted journal, Foreign Affairs, Allison details his proposals for conventional build-up is simply a rhetorical "bargaining chip" dealing with Moscow. Although it's titled "Testing Gorba­ to be sacrifiedon the arms-controlaltar. chov," the essay-which Dukakis repeated almost verbatim Nye-who held a post in Jimmy Carter's State Depart­ in his recent spate of "pro-defense" speeches-should have ment-has been actively involved in the Aspen Institute's been called "Giving Mosc:ow What It Wants." strategy group, which is helping to organize the decoupling Allison's basic premise is that Gorbachov represents a of the NATO alliance. Although Dukakis in his public state­ wonderful new direction in Soviet policy, and that the West ments has paid lip service to the sanctity of NATO, Nye should be willing to make concessions to encourage the ex­ explicitly stated, during a tour of WesternEurope last June, pansion of glasnost and perestroika. that an American troop pull-out is inevitable. "Gorbachov represents a rare combination of pragmatic Nye doesn't try to hide his belief that the U.S. should realism, on the one hand, and creative policymaking and never again strive to create an "American Century ." Nye public relations on the other. . . . [His] new thinking holds spells this out in an article in the Fall 1988 issue of Foreign the promise of fundamental improvement in U. S.-S oviet re­ Policy, published by the ultra-liberal CarnegieEndowment , lations," Allison insists. A "new strategy is emerging" in where he formerly served on the staff. Moscow "that calls for arms control agreements to reduce the In between spouting the same nonsense as Allison­ Western threat [sic] and thereby allow Gorbachov to cut "Gorbachov sees a period of external calm in order to con­ Soviet defense expenditures." centrate on restructuring the Soviet economy," he writes­ Moreover, Allision claims, "because Gorbachov is es­ Nye claims that the U.S. position in the 1950s represented sentially dealing from internal weakness, his unilateral ad­ an "artifici�l high." justments of Soviet policy are producing significant gains for No wonder Nye received lavish praise from the U.S.S.R. 's the West" such as the Soviet "withdrawal" from Afghanistan, Dr. Andrei Nikoforov, assistant chief editor of the Soviet and the INF agreement. publication U.S.A. -Economy, Politics, Ideology. At a To encourage these marvelous developments, the U.S. meeting last summer in West Berlin, Nikoforov specially should be prepared to "help" Gorbachov, including by ex­ cited Nye's advocacy of East-West "interdependence" in . panding U.S.-East bloc economic relations. world economy questions, as a principal reason why Moscow Allison frequently collaborates with Nye, who directs favored Dukakis over Bush. Harvard's Center for Science and International Affairs-a Rounding out the pro-Moscow clique around Dukakis is hotbed of anti-SDI activity. Together with another Dukakis his wife, Kitty, who's traveled several times to the East bloc adviser, Albert Carnesale (a leading anti-SDI spokesman), and belongs to Peace Links, an organization denounced on they have just published a new book, FatefulVi sions, which the floorof Congress for being influenced by East bloc intel­ urges the United States to adopt a policy of greater interde­ ligence services. pendence with the Soviet system. In an interview in the July 25 issue of New York maga­ zine, Kitty gushed that Gorbachov is a "fascinating leader The fraud of 'conventional build-up' for the Soviet Union. There's obviously some feeling of They recommend that the United States scale back to a positiveness with him. . . . I think the openness and changes "modest residual nuclear force." Combined with improve- I keep hearing about in the Soviet Union are to be applauded."

·EIR October 7, 1988 National 55 Background to the 1988 Presidential Campaign

Dislllissal of LaRouche indictments sought in Court of Appeals

Independent presidential candidate Lyndon LaRouche and A. Procedural history other defendants have asked the U.S. Court of Appeals fo r A grand jury returnedthe original indictment in this case the First Circuit in Boston to dismiss the indictments against on Oct. 6, 1986. That indictment charged 10 individuals, two them on grounds that a retrial would violate the U.S. Con­ 1984 political campaign entities, two non-profitcorporations stitution's prohibition against double jeopardy. and a membership association with a credit card and loan The case ended in a mistrial on May 4, after 92 days of fraud scheme and a conspiracy to obstruct the grand jury's proceedings. investigation of that allegedly fraudulent scheme. In Decem­ In their appeal brieffiledSe pt. 23, the LaRouche defen­ ber 1986, a superseding indictment expanded the indictment dants accused District Judge Robert Keeton of erroneously to include three more individual defendants, additional credit ruling that a retrial could take place. Argument on the appeal card and loan fraud counts and a count of criminal contempt is scheduled fo r Oct. 5. Following are excerpts from the of the U.S. District Court. In June 1987, the principal target defense's appeal brief. ofthe entire investigation-Lyndon H. LaRouche, Jr.-was added in a Second Superseding Indictment. Statement of the case In the course of pretrial proceedings, a number of sever­ This is an interlocutory appeal from the District Court's ance motions were filed. By agreement of the government, denial of defendants' dismissal motions on double jeopardy three individual defendants (Greenspan, Black, and Billing­ grounds. After 92 days of trial, only 47 of which the jury ton) were severed and their trials are still pending. Among actually heard testimony, the District Court declared a mis­ other severance motions, all defendants sought severance trial when its excusal of five jurors on hardship grounds from defendant Frankhauser on grounds of prejudicial join­ rendered the pool of jurors inadequate to proceed. The hard­ der and inconsistent defenses. Those motions were opposed ships were caused by prosecutorial misconduct. As a result by the governmentand denied by the Court. of the misconduct, the trial was longer at its half-way point In late September 1987, jury selection commenced. A than the entire trial was originally represented to be. jury questionnaire was used to aid in early detection of bias The District Court, in refusing to dismiss the indictments, or other reasons for excusal. To uncover hardships of poten­ erroneously placed the burden of proof for demonstrating tialjurors, the questionnaire included representations that the there was no manifest necessity of a mistrial on defendants. trial would last "three months or substantially longer." After Moreover, the District Court ignored the fact that the delays nearly three weeks of screening, 12 jurors and four alternates which gave rise to the juror hardships were due entirely to were selected and empaneled on Oct. 19, 1987, with opening the prosecutor's conscious withholding of relevant evidence arguments scheduled to commence the next day. and information. Instead, the lower Court asserted its opinion Immediately after empanelment, defendants renewed their that the mistrial was "foreordained" and masked that opinion motions to sever from Frankhauser. This time, however, the in an erroneous and unsupported "conclusion of fact." Given prosecutor changed his position: He no longer opposed sev­ the District Court's error and the enormous burdens upon the erance, but agreed to sever Frankhauser and try him alone defendants which have already been incurred, this Court first. The court granted the severance and proceeded with the should conduct a plenary review of the record and therafter, separate trial. dismiss these indictments. The Frankhauser trial ended on Dec. 10. At a status call

56 National EIR October 7, 1988 on that day, the prosecutor represented that the case would was greatly increased by defendants' strategy of de­ last four to six months. On Dec. 14, the Court represented to fense which was quite properly withheld from the court the jury his estimate that the trial would last six months. by defense counsel at the time the court required dis­ On Dec. 17, 1987, trial commenced against seven indi­ closures from the governmentand invited (but did not vidual defendants and fiveentity defendants. require) disclosures from defense counsel in order to During the first weeks of trial, the jury was told the case determine what the jury panel should be told about would last six months and that it would be over by mid-July the length of the trial during jury selection. App. 1.6- or by the late summer in any event. 7.d (Memorandum and Order, Aug. 11, 1988, pp. 6- On Feb. 23, day 55, the prosecutor disclosed to defense 7) counsel for the first time FBI interview reports (302s) on a listed government witness (Emerson) who was also an in­ Thus the District Court's determination of the double formant. The disclosure was required, by agreement, to have jeopardy issue turns on a finding of fact. But that finding been made pre-trial. Defendants immediately protested that of fact was made in a context entirely unrelated to the double the disclosures not only breached agreements with the pros­ jeopardy inquiry, and under an entirely different, and, as ecutor and violated the demands of Brady v. Maryland, but applied to double jeopardy questions, completely inappro­ also contradicted two of the prosecutor's central theories of priate burden of proof. As finding number 155 itself makes the case: The Emerson documents supported defendants' clear, the finding was made in the context of determining contention that their notebooks were mere reportage (rather the scope of potential remedies for the government mis­ than inculpatory references to the conspiracy as the prose­ conduct and violations of disclosure obligations in the Emer­ cutor would have it) and that they did not act, when they son affair. In such hearings, it has always been the case that acted, with the specific "corrupt intent" to obstruct justice. the defendant has borne the burden of proving the appro­ Though the trial continued fromFeb . 23rd through the 26th, priateness of a remedy. Once the disclosure violation has colloquies were conducted outside of the jury's presence been shown, the burden is on the defendant to show prej­ regarding the prosecutor's conduct and its implications with­ udice. out the Court determining what to do about it. Finding of Fact number 155 merely expresses the Court's view that the defendants did not meet their burden of proving Argument thatthey were prejudiced by the government misconduct in In presenting their double jeopardy claim to the District the loss of jurors which resulted in the mistrial. Court, the defendants demonstrated that the proper focus of In the context of a constitutional claim of double jeopardy the Court's attention was the question of whether the mistrial however, the allocation of the burden of proof is precisely was declared as a result of "manifest necessity." See United the opposite. Once the defendant has demonstrated a non­ States v. Perez, 9 Wheat. 579 (1824). Accepting that stan­ frivolous prima fa cie double jeopardy claim, the burden dard for the purposes of its decision, the District Court at­ shifts to the government to demonstrate facts which show tempted to resolve the question by making reference to a the double jeopardy clause is not a bar to reprosecution .... previously entered findingof fact. The Court's Memorandum Thus, where the manifest necessity determination turns and Order of Aug. 11, 1988 states: on a question of fact, the government has the burden of proof. The governmentbears the "heavy burden" of showing I need not decide whether the government's mis­ that "taking all the circumstances .into consideration," the conduct in this case is the type that, if it caused a mistrial was manifestly necessary. It was anerror for the mistrial, could be considered as having a bearing upon trial court to decide the factual crux of the double jeopardy "manifest necessity," because I have found as a fact question by simply importing a finding of fact made under that the government misconduct in this case did not a different and opposite burden of proof. cause or in any way contribute to causing the mistrial. Where the District Court erroneously shiftedthe burden As stated in finding number 155 of the Findings of of proof, this Court, rather than remand, should conduct its Fact filed on Aug. 10, 1988: own examination of the record to determine whether the Even if there had been no violation of disclosure government has met its burden of showing the manifest obligations and no hearing to determine the scope and necessity of this mistrial. . . . effect of any violation, a mistrial would have been necessary. I had been foreordained by the fact that the A. The mistrial was not foreordained length of thecase drastically exceeded the expectations A plenary review by this Court of the record does not of the court and the jury at the time of jury selection. permit a finding that the governmenthas sustained its burden The discrepancy between the court's expectations re­ of proving that a mistrial wouldhave occurred in the absence garding the length of the trial at the time of jury of government misconduct. Without the suspension of the selection and the court's expectations by May 2, 1988 jury trial from early March until early May, the government

EIR October 7, 1988 National 57 cannot establish that a mistrial was "foreordained." The re­ independent of any government misconduct" (App. 1.9) is cord reveals the contrary. Based on the pace of trial, estimates wholly unwarranted. That statement is no more than an ar­ of the prosecutor and Court, and the nature of the juror hard­ bitrary opinion masked as a factual finding. The "indepen­ ships, completion was likely by mid-July. To determine dent reasons" the trial was "foreordained to last more than a whether the government has sustained its burden of proving year" are never disclosed because there were none. If any­ that a mistrial was foreordained, this court should look to the thing, the record supports a conclusion that in the absence of time estimates made and evaluate whether the trial could have the delays caused by misconduct, the trial would have more been completed by mid-July, in the absence of delay. probably than not been concluded by mid or late July .... At the very outset of the trial in mid-December, the Dis­ Therefore, in reviewing this record, subjecting it to the trict Court represented to theju ry that the length of trial would strictest scrutiny and applying the correct burden of proof, be six months. It arrived at this conclusion by taking the this Court must immerse itself in the world of governmental prosecutor's estimate of direct testimony, multiplying by two misconduct, overreaching, misrepresentation and deceit, as for cross-examination, and adding 50 percent to this total as revealed in the Emerson hearings, which underlay the unnec­ a margin of error. essary hiatus of the jury trial and the resultant loss of jurors In mid-February, prosecutor Rasch told the Court that due to hardship. None of the misconduct in this case is im­ after some 30 witnesses had testified, that the government's mune from this court's review. case was four to fivedays behind schedule, but that some of As demonstrated below, that review will compel the con­ the testimony already elicited would make some future wit­ clusion that the government bears the responsbility for this nesses unnecessary. At that point, the credit card portion of mistrial and that the mistrial itself was under all the circum­ the case was over and a substantial portion of evidence re­ stances manifestly unnecessary. . . . garding organizational structure, the state of mind of defen­ In applying the balance to the present case, the weight of dants, and evidence relating to the government's theory of the defendants' interest cannot be overestimated. The defen­ the motive for the conpsiracy to obstruct justice, had been dants were forced to endure a cumulative total of over 100 completed. The remaining testimony involved the specific days in detention, 92 days of trial, weeks of delay devoted to overt acts of the conspiracy alleged, and no more than four examining the scope of the governmentalmisc onduct in the or five witnesses relative to a charged loan fraud scheme. Emerson affair. The defendants incurred massive legal fees The clear inference of prosecutor Rasch's statements was and costs. Ten attorneys, including four out-of-state attor­ that the government's case was either on schedule or ahead neys, were necessary for nearly a year of pre-trial proceed­ of schedule. ings and six months of trial. The defendants lost the benefit Moreover, it was just at this point in the trial, March 7, of a jury they had every reason to believe would exonerate that the District Court implemented its new, expanded trial them. Enormous resources were expended, and as a result of schedule, including a significantly longer time during each the mistrial, wasted. It is obvious that the more deeply into trial day for the jury to hear evidence. The District Court's the trial the mistrial is declared, the greater the defendants' projected calendar ended on July 15, at a time it is fair to interests weigh in the balance. infer, when the Court anticipated the case would be at or near On the other hand, the governmentalmisc onduct here not completion. For the few days in March that the jury heard only undermined the defendants' interests, but the general testimony, the expanded schedule was in effect. Particularly societal interests in fair trials and just judgments as well. given this expanded schedule, had there been no jury trial From the beginning, the governmentused its superior posi­ suspension, the trial would have been well into its finalstages tion to withhold exculpatory evidence, and on that basis, to (the conspiracy and loan fraud counts) by early May and there freely mischaracterize evidence to the jury without fear of would be good reason to believe the trial would be over by contradiction .... mid-July. This case demonstrates one of the chief evils the Double This conclusion is supported by three additional consid­ Jeopardy Clause was meant to protect against. At the heart erations. First, the last government witness list, submitted of the clause is the notion that the government should have just prior to jury suspension, makes it clear that the trial but one fair chance to put its evidence before the trier of fact would be completed by July. The government's original wit­ in search of a conviction: ness list was paired down at the commencement of trial. On March 14, Markham submitted an even shorter witness list The underlying idea, one that is deeply ingrained with his estimates of direct testimony. Based on this witness in at least the Anglo-American system of jurispru­ list, and applying the District Court's formula of multiplying dence, is that the State with all its resources and power the estimates for direct testimony by two and adding 50 should not be allowed to make repeated attempts to percent, the trial would have been over by the second week convict an individual for an alleged offense, thereby in July .... subjecting him to embarrassment, expense, and ordeal Thus, the District Court's statement that the length of the and compelling him to live in a continued state of trial was "foreordained to last more than a year for reasons anxiety and insecurity, as well as enhancing the pos-

58 National EIR October 7, 1988 sibility that even though innocent he may be found guilty. Green v. United States 355 U.S. 184, 187-188 (1957).

Thus the courts have singled out for special condem­ nation those cases where a mistrial, declared as a result of governmental misconduct, has the tendency to operate as a "post-jeopardy continuance to allow the prosecution an op­ portunity to strengthen its case." That is precisely how the prosecutor views this mistrial (caused by his own misconduct): a post-jeopardy continu­ ance to strengthen his case. He forthrightly admitted that on retrial he would try a different case. This Court should strongly disapprove such a blatantly prejudicial manipulation of the judicial process and attempted impoverishment of the defendants' double jeopardy interests...... [Tlhis Court must examine the conduct of the pros­ ecution from the inception of this case to the present, and consider whether the numerous discovery violations, Brady violations, ethical violations, misrepresentations, and other of Mo misconduct already detailed in this brief demand the finding that the prosecutor knew or should have known that the delay caused thereby was substantially certain to provoke a No t ifwe can help it! mistrial. If so, the Court must reverse the ruling of the District Court. That inference of culpable prosecutorial intent is com­ The "Israel Jobby" is udt workingfor pelling in this case. Unlike circumstances which have given the future of Israel's peace and Jell-being, much rise to findings of excusable inadvertence, negligence or less for the interests of the United States. misunderstanding, the prosecutor's misconduct here has been deliberate and pervasive. The prosecutor's action before, during and even afterthe trial-when he conceded he would Two exclusive EIR SPil Reparts try a different case on his second effort-compel the con­ name the names, andtell the of how a clusion that he knew or should have known that were his powerful faction in Israel, and U.S. allies, are conduct uncovered a mistrial would result. That conscious­ really working to promote the plan for world ness of wrongdoing is supported by Mr. Markham's repeated dominion. The facts in these must be used to free the next U.S. misrepresentations as to the expected length of the trial. from this "false flag" so-called Israel lobby. Those misrepresentations, consistently unrealistic even in the face of the District Court's overt skepticism, point to Mr. Markham's hope that he would not be exposed and Moscow's secret weapon: that, in the absence of discovery, the trial, played out on a Israeli mafia. 1986. $250 posrpaJ.O. tilted field, would end in the time he predicted. Given the set of circumstances here presented and as they painstakingly The Kalmanowich Report: �'SCI[)W'S moles in unfolded, Mr. Markham is chargeable with the foreseeable the Reagan-Bush 1988. $150 consequences of his malfeasance-that hardships would postpaid. inevitably surface before the end of the trial as a direct result of his denouement. The prosecutor should have been charged with knowledge that his misconduct was certain to cause a mistrial, and the District Court's failure to do so was clearly erroneous.

Conclusion For all the above reasons, this Court should reverse the EIR News Box 17390 ruling of the District Court denying the defendants' motion P.O. Wa shington, D.C. to dimiss on grounds of double jeopardy, and order the in­ dictment dismissed with prejudice.

EIR October 7, 1988 National 59 of a coverup of the Iran-Contra affair,it was Richard himself who was the senior DoJ officialworking in tandem with FBI Dukakis mole in the Deputy Director Oliver Revell to shut down a Miami U.S. Attorney's officeprobe of Oliver North's role in conduiting Attorney General's arms to the Contras. According to published depositions by Miami Assistant inner sanctum? U.S. AttorneyJeffrey Feldman and FBI Special Agent Kevin Currier, Miami U.S. Attorney Leon Kellner "sat on" the North-Contra case for six months after receiving orders from by Jeffrey Steinberg Richard. At the time of the coverup, Richard's boss in the Criminal Division was William Weld, who resigned from the EIR has learnedthat a key player in the Dukakis campaign's department early this year in "protest" over AttorneyGeneral recent dirty-tricks effort to smear prominent Eastern Euro­ Meese's alleged "corruption." pean backers of Vice President George Bush as "Nazis" and In his own deposition before the congressional Iran-Con­ "anti-Semites," has been promoted to a sensitive position tra panel on Aug. 18, 1987, Richard denied any role in the within the officeof Attorney General RichardThornburgh . Irangate coverup. He did, however, catalogue a career built Mark Richard, a Johnson-era Justice Department careerist upon the patronage of key Democratic Party activists, includ­ who was appointed Deputy Assistant AttorneyGeneral under ing Carter era Criminal Division chief Phillip Heyman, now Jimmy Carter, has been recently elevated to the special status on the faculty of Harvard Law School. of senior adviser to Attorney General Thornburgh. While Old school ties die hard, as Mark Richard demonstrated retaining his post as Deputy Assistant Attorney General in in December 1987 when he took a six-month sabbatical to the Criminal Division, Richard is serving as a counsellor to study at Harvard Law under his old boss Heyman, and under Thornburgh, a role that was filled by Bradford Reynolds Dukakis-Weld mentor and ex-Watergate Special Prosecutor during the tenure of Edwin Meese. Archibald Cox. Richard's arrival at Cambridge coincided Richard's role in the Dukakis campaign's "Nazigate" with that of PRA, Inc. "research director" Chip Bedet, the against Bush was that of a conduit for Soviet and Israeli­ publisher of the "Bellant Report" and a former bureau chief manufactured allegations against a dozen Captive Nations for the dope lobby's High Times magazine. activists in the Republican Party's Ethnic Heritage group. These allegations, heavily laced with KGB- and East Ger­ Purging a Meese ally man-authored forgeries and perjuries, were contained in a Now back at the DoJ in Thornburgh's office, Richard, 100-page dossier published by a Cambridge, Mass. front for according to Washington, D.C. sources, has continued to left-wing and dope lobby interests called Political Research play a behind-the-scenes role in the purge of Reagan-Meese Associates, Inc. The nominal author of the Soviet propagan­ allies from the department. da tract was Detroit "investigator" Russell Bellant, a paid According to the Washington Post of Sept. 27, a team of staffer of the pro-Dukakis United Auto Workers Solidarity "career prosecutors" staged a protest over the nomination of House, and, as of 1986, a researcher for the Democratic a former Meese aide, H. Robert Shower, to the post of Dep­ National Committee. uty Assistant AttorneyGeneral , replacing Victoria Toensing. In his capacity as Deputy Assistant Attorney General, Shower's job would have placed him in charge of all DoJ Richard maintains oversight over the Office of Special Inves­ fraud prosecutions. tigations, the "Nazi-hunting" unit of DoJ created in 1979 According to department sources, Ted Greenberg, a pros­ under the sponsorship of then-Rep. Elizabeth Holtzman (D­ ecutor in the fraud section, teamed up with Richard to foist a N. Y.). Holtzman has been widely mooted as the next Attor­ complaint against Shower with the Dol's inhouse ethics unit, ney General if Dukakis is elected. the Officeof Professional Responsibility. As the result of the OSI maintains formal ties with both the KGB and the allegation that Shower sought to destroy a department memo, Israeli Mossad, drawing heavily on East bloc and Israeli Thornburgh temporarily suspended him and took fraud sec­ "archives" in pursuing criminal prosecutions against wartime tion oversight out of his hands, giving control over that unit victims of Hitler and Stalin who allegedly falsifiedtheir im­ back to Richard. migration applications, and are therefore subject to deporta­ Months after William Weld's departure from Washing­ tion. It was the OSI-accessed files that provided much of the ton, Republican conservatives have figuredout that the Bos­ material for the Bellant manual, "Old Nazis, the New Right, ton Brahmin had been a longstanding "mole" for New Eng­ and Reagan." land interests backing Dukakis. With the final month of the Richard has already been implicated in the Watergating election season promising to be a mine fieldof dirty tricks, it of his former boss, Ed Meese. While Meese and longtime remains to be seen whether the Bush campaign will take note Reaganite Lowell Jensen were being tarred as the architects of the danger in their midst.

60 National EIR October 7, 1988 The case of the ADL of B'nai B'rith: agents of a foreign po\Ver by Joseph Brewda

A little-known slander suit initiated back in 1967 sheds new firingfrom his 20-year position as the organization's director light on why the Anti-Defamation League of B'nai B'rith is of international operations. Depositions taken in one of the now assisting a Soviet propaganda effortthat depicts the Bush suits, loftes v. Rabbi lay Kaufman(CA 3271 -67 District of campaign as run by "Nazi war criminals." The suit, by former Columbia), and later EIR investigations prove: B'nai B'rith official Saul I. Joftes, proves that both the ADL • In 1960, Dukakis adviser Philip Klutznick, then pres­ and its parent organization, B 'nai B'rith, were wittingly act­ ident of B'nai B'rith, wittingly established a B'nai B'rith ing as agents of a foreign power, Israel, as far back as 1960. cover for an Israeli intelligence operation, ostensibly dedi­ Some of the agents exposed by Joftes, such as former B 'nai cated to penetrating the U.S.S.R., at its New York offices. B 'rith chairman Philip N. Klutznick and retired ADL General • The Mossad case officer for the operation was Uri Counsel Arnold Forster, are today playing a central role in Ra'anan, then the director of the Israeli Consulate 's Infor­ the phony "anti-Nazi" campaign directed at Vice President mation Department in New York, and today a leading "So­ George Bush's entourage. vietologist" and CIA consultant at Boston University. Ra'anan The black propaganda campaign against Bush surfaced later recruited Jonathan Jay Pollard to work for a joint Soviet­ on Sept. 12, when Washington lewish Week began a series Mossad cell penetrating U.S. Naval Intelligence. Pollard's of wild stories based on a recently released pamphlet entitled, controller was based out ofthe New York headquarters ofthe "Old Nazis, the New Right, and the Reagan Administration." ADL. The pamphlet was written by Russell Bellant and Chip Berlet, • Key figures in this Ra'anan cell and related Israeli long-time agents of the ADL, and Philip Klutznick. The operations include ArnoldForster, the counsel for both B 'nai charges in the pamphlet and in the stories were originally B'rith and the ADL, and Moshe Decter, a long-time flunky peddledby East German disinformation specialist Dr. Julius of "Bukharinite" Soviet intelligence asset Sidney Hook. Dec­ Mader and KGB propagandist ErnstHenry back in the 1950s. ter's former wife, Midge Decter, together with her current They have been kept alive in the United States largely through husband, Norman Podhoretz, direct a vast "social democrat­ the efforts of the ADL, including its role in the creation of ic" mole network within the U.S. intelligence community the Justice Department's "Nazi-hunting" Office of Special still closely linked to both Ra'anan and Hook. Investigation (OSI). The ADL and Soviet line is that anti­ It was Joftes' hostile attempt to block the B'nai B'rith's communism, nationalism, or a commitment to military aid to Israeli foreign intelligence operations which led to his strength, are all equivalent to fascism. firing. Joftessummarizes his dispute with the B'nai B'rith as Although the ADL triggered the smear through Berlet et follo'Ys: "Under the leadership of Mr. Klutznick, it [B 'nai al., it has also continued to duplicitously support Bush pub­ B'rith] has become an international organization engaged, licly. So, ADL national chairman Abraham Foxman has by Rabbi Kaufman's admission, in other things besides char­ loudly defended former Bush deputy chairman Fred Malek, itable, religious, and educational activities. It engages in who was fired for "anti-Semitism"-based on an ADL op­ internationalpolitics and more oftenthan not does the bidding erative's charges. At the same time, the ADL has quietly of the governmentof Israel. " advised the Vice President that the best way to respond to the Joftes protestedthat the B'nai B'rith assistance to Ra'anan slanders is to fire the people unfairly accused, and to charge constituted a violation of the Foreign Agents Registration thatthe Democratic campaign is staffedby anti-Semites linked Act and related legislation, at the very least. In response to to Jesse Jackson. Thus, the ADL hopes to secure key posts this charge, future B'nai B'rith president William Wexler in a Bush administration, while purging it of any elements rejoined, "Here's to Joftes. The All-American Boy. True objectionable to Tel Aviv or Moscow. Since Michael Dukak­ blue and loyal, too." Joftes contin1iled to protest. He was is's wife, Kitty, is a member of the ADL's New England purged. regional board of directors, it has nothing to worry about if While Joftes' fightagainst foreign intelligence operations Dukakiswins , either. in the United States is commendable, his belief that Israel In 1967, Saul Joftesbegan a series of slander and related has been the sole foreign power behind the B'nai B'rith and suits against B 'nai B'rith regarding the circumstances of his the ADL misses the mark. This is shown by Uri Ra'anan's

EIR October 7, 1988 National 61 background prior to his coming under Joftes' scrutiny in know the inner workings of the operation." 1960. In a memo written to Philip Klutznick dated Sept. 1, Born Heinz Felix Frischwasser, "Ra'anan" was trained 1960, Korey reports: by British intelligence's intellectual elite at Oxford immedi­ "I met yesterday with Avis Shulman (she has just returned ately after World War II. Among his academic advisers were from her vacation) and Uri [Ra'anan] . Some of Avis' think­ Sir Reginald Coupland, who devised the postwar phase of ing on the method of her operation has been crystallized and the British plan of pitting Arabs against Jews; B .H. Sumner, had already been, before we met, transmitted to Uri. This British intelligence's Soviet expert; and F.W.D. Deakin, crystalization involved certain problems, among them are British intelligence's wartime liaison with Yugoslavia's par­ tisan leader, Josef Tito. This was the same British network that had earlier trained KGB spy Kim Philby. It was only after being schooled in "Zionism" at Oxford that Frischwas­ ser emerged as "Ra'anan," and was deployed into Israel to Jqftes summarizes his dispute with join the Mossad. the B'nai B'rith: "It has become an Ra'anan's operations as an Israeli consular official in the international organization engaged United States, beginning less than 10 years later, bear an unmistakable British stamp. Moreover, Ra'anan's role in the . . . in other things besides recruitment of KGB-Mossad mole Jonathan Pollard further charitable, religiOUS, and suggests that Ra'anan may have been recruited by Soviet educational activities. It engages in intelligence as far back as his postwar training by Sumner. international politics and more The A vis Shulman cell of ten than not does the bidding qf Joftes' most violent opposition to B 'nai B 'rith 's treachery the government of Israel." centers around the case of Avis Shulman, the widow of a prominent Riverdale, New York rabbi. A Mossad agent, Shulman had been placed in a secret cell at B'nai B'rith's New York offices, with the purpose of infiltrating U.S. intel­ ligence agencies by providing purportedly juicy information ...an officeor space in an already established office, pre­ about Moscow. ferrably this one. She needs-she says-a place to hang her As Joftes shows, Mrs. Shulman was controlled and fi­ hat where she can receive mail, phone calls, and visi­ nanced by Uri Ra'anan, then the Israeli Consulate's Infor­ tors .... mation Department director, and a Mr. Eliav, then the Israeli "She needs some identification, in effect a title, for sta­ Consul General in New York, among others . Through tionery purposes as well as appropriate stationery. Is she to Ra'anan's efforts, and with Klutznick's sanction, Shulman be secretary of some committee of the B 'nai B'rith Interna­ was placed at B'nai B'rith's New York officesin the summer tional Council? The later point raises a question which I am of 1960. Shulman's job was to facilitate Israeli intelligence not certain about. Was it your intention to have it understood debriefings of American Jews visiting the U.S.S.R., and that she was to work for the International Council (while I Soviet citizens touring the United States. understood that she was to work under my supervision, I was In her correspondence with B'nai B'rith regarding this never advised as to precisely what you conceived her public Mossad operation, Shulman noted, "Jewish organizations, identificationto be)?" particularlyB 'nai B'rith, are especially useful" as a "base of Shulman identifiesher job as follows in a 1960 memoran­ operation." She requested, and Ra'anan demanded, that B'nai dum to Korey: B'rith provide her a suitable title, office, stationery, and "A. The Job: telephone. She asked that a subcommittee be "invented" with "1. Concentratingearly information on all Americansto her as the "secretary" to give her "a handle that could be the Soviet Union and Soviet visitors to the United States­ relatively inconspicuous, but meaningful." as far as is ascertainable. Dr. William Korey, then the head of B'nai B'rith's U.N. "a. Channelling this information to the relevant quar­ bureau, and formerly the ADL's Washington, D.C. repre­ ters. " sentative, discussed Shulman's arrangmentswith Israeli con­ Shulman further specifiesthe need for "saturation brief­ sular officials, including Ra'anan. He cited Ra'anan et al. as ings of Jewish tourists to the Soviet Union by creating suita­ "our friends" in interoffice correspondence released to the ble nation-wide machinery via Jewish organizations, suitable U.S. District Court in Washington in connection with the individuals and especially through the use of tourist agen­ case. Shulman reported that Ra'anan et al. insisted that she cies ....Jewish agencies, particularly B'nai B'rith, are es­ "report only to them. They wanted but very few people to pecially useful because of mass organization and trained and

62 National EIR October 7, 1988 experienced personnel throughout the country." Documents submitted in the suit showthat Joftesrepeat­ After informing B'nai B'rith that "I have been asked to edly warned Klutznick that aiding Israeli intelligence opera­ centralize activities, to find, choose and to establish person­ tions in the United States was illegal. In one memo dated nel wherever necessary" for this intelligence operation, Shul­ Sept. 16, 1960, Joftes denounces the Shulman scheme, and man states the following requirements: concludes, "I ask only one thing: before I am overruled, take "1. In order to set the machinery into motion whereby the a look at U.S. code Title 22 Sec 611-621 (1938 as amended) job can be done, it is essential that I be provided a proper and Title 18 sec 951 (revision of 1 Sept 48)." The sections base of operation which includes the following items: refer to registration of foreign agents operating in the United "a. A name and a title. A sub-committee under the Office States. of International Affairs B'nai B'rith, with a name invented Despite Joftes' resistance, and even Korey's queasiness that is natural for the purpose would be ideal and the best about "our friends," Klutznick went ahead and placed Shul­ base from which to operate. Such a committee might consist man at B 'nai B'rith. All evidence suggests that her secret cell of Phil Klutznick as [sic] myself as secretary. In this manner, still exists. I would be provided with a handle that would be relatively inconspicuous but meaningful. " The Fulbright investigation Even before the 1967 Joftes suit, numerous U. S. intelli­ 'She was working for them' gence officials were concerned aboutZionist lobby facilita­ Who ultimately controlled this intelligence operation is tion of foreign intelligence operations in the United States. shown by a confidential Korey memo to Klutznick dated Reflecting this concern, in 1963, Sen. J. William Fulbright, Nov. 2, 1960, in which he reports: then chairman of the Senate Foreign Relations Committee, "Last Friday, I met with our friends plus Moshe [Decter] convened hearings into " Activities of Agents of Foreign Prin­ and Avis. Our friends wanted to know about the future budget cipals in the U.S." One session of the hearings, held May 23, for Avis. I made it clear that this was a matter for the Inter­ 1963, proved that planting Avis Shulman at the offices of national Council which meets late November. I said that B'nai B'rith was merely one of severaloperations directed while the present period was provisional, we looked forward by Uri Ra'anan at the time. to seeing how it would work and the hope that it could work Other Israeli spying operations exposed by Fulbright in­ successfully. They indicated that they were looking forward clude the Jewish Minorities Research project at the American to its success but wondered out loud whether the project could Jewish Congress, directed by Ra'anan agent Moshe Decter; run into difficulties with B'nai B'rith structure. They stated the "Russian research project" of the Jewish Agency, direct­ that if it did, then perhaps as an eventual alternative and ed by the ubiquitous Philip Klutznick; and the American simpler method, there ought to be formed an independent Conference on Soviet Jewry. The overall purpose of these committee made up of Jews within which the project would Russian projects was to penetrate U.S. intelligence by pro­ operate. viding Washington purportedly high-quality information on "Concerning her title, I proposed the term 'liaison' but Moscow. That the project was not a one-way street was later they objected, indicating that they wanted something with exposed in the Pollard case. The policy of Israeli intelligence greater dignity and status-like 'consultant.' They said that has always been to sell U. S. secrets to Moscow. they would think about it and come up with a proposed American Jewish Congress documents subpoenaed by alternative. Again they indicated they wanted her name on Fulbright showed that "the Jewish Minorities Research proj­ the letterhead. ect, of which Mr. Moshe Decter is the director, has for "They then surprised me by (for the first time in our several years specialized in research em the status and prob­ discussions) noting, that her instructions would come only lems of the Jews in the Soviet Union, and secondarily of the from them, that her program would operate independently of Jews in other East European countries." Toward this end, B'nai B'rith, that she would report only to them, the only Decter was allegedly only involved in "discussions with in­ exception being that she would keep me abreast of her activ­ dividuals who have had personal experience of life in the ities approximately once a week. I objected, stating that I had U.S.S.R.," and "discussion with American and foreign assumed that she would be technically under our jurisdiction, scholars and experts in the fieldof Soviet and East European that I would be in a position to place limits on any specific affairs. " activity of hers that might prove embarrassing to B 'nai B'rith, Left unsaid by this memo is that Decter, a protege of that, in effect, she would clear with me. lifelong Soviet asset Sidney Hook, was working under the "They stated, that in the nature of the case, this was direction and funding of Ra'anan. Assisting Decter in this impossible, she was working for them, that her instructions project was Avis Shulman. came from without. . . . They indicated that they wanted but Funding for this American Jewish Congress operation very few people to know the inner mechanism of the opera­ did not come solely from that organization, or even the Jew­ tion." ish Agency, a de jure arm of the Israeli government. Some

EIR October 7, 1988 National 63 indication of the covert laundering of funds for the Decter exposed by the Joftes case is that showing that the ADL has project is indicated by a Jewish Agency interofficememoran­ spied on various Arab embassies in the United States, and dum dated July 7, 1961, where director Isidore Hamlin states: Arab governments abroad. Long-term ADL operations against "Furtherto my memorandum to you dated June 16, about such natural U. S. allies as Egypt have disrupted U. S. policy the Russian research project, you will find attached hereto and diplomatic initiatives to Soviet advantage. U.S. Zionist copy of a memorandum dated July 6, from the Consulate to Lobby operations in the MiddleEast continue to be a major the Treasury of the State of Israel asking them to transfer to block to peace needed by both the Arab states and Israel our account the sum of $5,500. You are asked to carry out alike. Testimony and documents taken from then-ADL na­ the following: tional chairman Benjamin Epstein, and ADL and B 'nai B 'rith "I. Inform the Treasury office that the $5,500 has to be General Counsel ArnoldForster, shed some light. applied to the joint fund. . . . In a subpoenaed letter to Joftes dated July 7, 1961, Ep­ "2. Of the $5,500 transferred to us by the Consulate , stein reveals: $4,375 has to be added to our monthly remittances to the "As you know, the Anti-Defamation League for many American Jewish Congress for the Russian research project years has maintained a very important, confidential investi­ in proportionate amounts ...." gative coverage of Arab activities and propaganda. In terms Under questioning, Hamlin confessed that the joint fund of our interest, the anti-Jewish and anti-Israel propaganda was administered by the director of the Officeof Information programs for which the Arabs are spending millions of dol­ at the New York Consulate, in 1963, Mr. Amon. In 1960, lars, emanate primarily fromthe United Nations, New York, the fund was administered by Uri Ra'anan. Washington, D.C., and Cairo. Their impact is worldwide Joftes' attorneys' 1967 deposition of Maurice Weinstein, and include anti-Jewish and anti-Israel programs affecting then chairman of the International Council of B'nai B'rith, almost every nation in the world where they have diplomatic shows that Klutznick continued to push his Russian project relations. In the course of our work, we have maintained an as late as 1966: information-gathering operation since 1948 relating to activ­ Q: Now look at the last paragraph [referencing an internal ities from the Arab Consular Offices, Arab United Nations B'nai B'rith memo] ....'T he Israelis are adamant we must Delegations, Arab Information Center, Arab Refugee Office, keep the American Jewish conference on Soviet Jewry, make and the Organization of Arab Students." it a permanent body, and they will help us raise the funds. In Asking for increased funding for this spying, Epstein this they are now giving directions and will brook no oppo­ states: sition.' ...Does the B'nai B'rith International Council take "In order to obtain complete and thorough data on these orders from the Israelis? activities, we must follow the Arab diplomatic corps in their A: No .... political efforts, lobbying activities, and propaganda pro­ Q: Now I see your report . . . to the Triennial Convention grams emanating fromtheir embassies, as distinguished from in Washington in 1968. . . . It said, • At the London meeting, the Arab League, Arab relations with organizations like the October 1966, the International Council adopted a proposal American Friends of the Middle East and all their profession­ by former President Philip N. Klutznick to establish, with al publicity efforts. the International Councila special budget of$I00,OOO.OO for "Our information, in addition to being essential for our work on the problem of Soviet Jewry.' . . . Was that special own operations, has been of great value to both the United budget $100,000.00 created? States State Department and the Israeli government. All data A: Yes. have been made available to both countries with full knowl­ Q: Now, where is that $100,000.00 in the B'nai B'rith edge to each that we were the source. International Council budget? Do you know? . . . Here is "The nature of these activities has supplied us with sub­ ...the B'nai B'rith International Council budget. Where is stantive, documented information which has been the basis the $100,000.00 special budget in it? ...Do you know for exposes of anti-Semitic activities, anti-Israel programs whether any of that $100,000.00 has been spent? and political manuevers. In many cases our information has A: Yes. exposed Arab plans before they have been put into effect. " Q: How much of it? During deposition, Epstein is asked: A: I don't know. "I notice this letter, which is dated July 7, 1961, plain­ Q: You know where that money is deposited? tiff's exhibit no. 1 for identificationin your deposition, states,

A: I don't. • As you know, the Anti-Defamation League for many years Q: Isn'tthis the $100,OOO.OObudget the Israelis demand­ maintained a very important, confidential investigative cov­ ed be set up for the American Conference on Soviet Jewry? erage of Arab activities and propaganda. ' "Do you have investigative agents of the ADL in Cairo?" Other instances of B'nai B'rith spying A: First of all, I won't answer the question. Among the other examples of B'nai B'rith operations Q: First of all what?

64 National EIR October 7, 1988 A: I don't care to answer the question. ing grounds. Even following his arrest, Ra'anan praised Pol­ Q: Why not? lard's alleged capacities. A: I don't see its relevance to what we are talking about. Information presented before the U. S. District Court in Q: Let me determine that. Washington regarding Pollard's arrest shows that Pollard's A: You are entitled to your view. I am entitled to mine. handler from 1984 on was one Col. (now Gen.) A viem Sella, Q: Is there something of a confidential nature that you then a New York University graduate student. Sella's wife, might reveal to me if you answer the question? Ruth, was an employee at the ADL's legal department at its A: I don't care to answer that. New York headquarters. Pollard admits being "tasked" by Q: Of what possible interest to the Anti-Defamation ADL officialMrs . Sella during this period. League would anti-Israel propaganda be? During this same period another one of Ra' anan ' s stu­ A: The line between anti-Israel and anti-Jewish propa­ dents, Myra Boland, was already directing the Washington ganda is a very faint line, about which many people might offices of the ADL's Fact-Finding Department, its intelli­ differ. gence unit. We are concernedabout its impact on the status of Amer­ From its inception in 1938 through 1979, Arnold Forster ican Jews. In many cases, attacks have been made on Amer­ directed the ADL legal department, which employed Ruth ican Jews, under the guise of attacking them as Zionists and Sella. Forster also served as the B'nai B'rith's counsel. Fors­ using anti-Israeli propaganda to attack American Jews. ter's knowledge of Ra'anan's operation within theB'n ai B'rith Q: Is it the policy of the ADL to activate its organization is established by documents submitted in the Joftes suit. In to protect Israel from anti-Israel propaganda? fact, Forster and Joftes had repeatedly clashed over Joftes' A: I think our basic concernis to protect American Jews charges that the ADL was making wild claims as to the extent from any attack upon their security and position. of anti-Semitism in South America. Q: Israel is an independent nation. That is correct; isn't In his recently published memoirs, Square One. Forster it? admits having been a friend of Mossad official Rafi Eytan A: Yes. since Eytan' s kidnaping of Adolph Eichmann in 1961. It was Q: How could propaganda that is anti-Israeli affect the Eytan who oversaw Sella's deployment of Pollard . Forster Jews in the United States? admits meeting with Eytan in 1987, two years afterthe Mos­ We see here, incidently, one of the reasons that the ADL sad officialwas exposed for directing Pollard's theft of clas­ insists that anti-Zionism, or for that matter, anti-Sovietism, sifiedU.S. documents on behalf of Moscow and Jerusalem. is the same as anti-Semitism. If it did not do so, it would be Speaking of his relation to Eytan and Israel, Forster frankly admitting to being in violation of the Foreign Agents Regis­ states: "Among other Israeli intelligence operations, the tration Act. To combat anti-Zionism or anti-Sovietism is to Mossad-an acronym for the Hebrew name of the under­ act explicitly in the interest of a foreign power. ground service assigned to operate abroad-constantly sought leads fromreliable governmentsand from other contacts and Current operations sources. I was a source." It is not just the ADL effort to smear the Bush campaign Until recently, Ra'anan's former agent, Moshe Decter, as Nazi-connected which shows that Ra'anan's 1960s secret held a job at the American Israel Public Affairs Committee unit at B'nai B'rith remains operational. The role of the ADL (AIPAC), whose empire of political actioncommittees con­ and Ra'anan in recruiting and protecting Jonathan Pollard trols whole blocks of congressional votes. Under the pretext shows an unbroken continuity of foreign intelligence opera­ of defending Israel, AIPAC has strong-armed Congress into tions. denying vital arms contracts to the Arab states, and other When Jonathan Pollard was arrested outside the doors of actions overtly against U.S. interests. This behavior trig­ the Israeli embassy in November 1985 with classified U.S. gered the recent Saudi agreement to purchase several billions documents, the ADL predictably screamed "anti-Semitism," of dollars worth of arms from Ra'anan's Britain. Decter's just as it is doing now. From 1982 through 1985, Pollard had former wife, Midge, meanwhile, directs the Committee for funneled top-secret documents, estimated in the thousands, a Free World, which paved the way for the disastrous INF to the Israeli government, dealing with such matters as the agreement. The Decters' son-in-law, Assistant Secretary of identities of U. S. intelligence operatives on the ground in the State Elliott Abrams, oversees the handing of Central and U.S.S.R. and Soviet analysts within the CIA. These docu­ South America to Soviet interests, by enforcing usurious IMF ments were duly passed to Soviet intelligence agencies which policies. As recently as 1985, Ra'an$Il was consulting with had jointly deployed Pollard with the Mossad. the CIA on Soviet defectors, indicating that the "Russian Investigations indicate that Pollard was recruited to what project" is alive and well. he naively believed was merely a Mossad operation by his When ADL national chairman Abe Foxman, bornin the professor, Uri Ra'anan, then based at Tufts University's Soviet military town of Baranovichi, complains about "Na­ Fletcher School of Diplomacy, one of the CIA's top recruit- zis" in U. S. politics, this is the network for which he speaks.

EIR October 7, 1988 National 65 Elephants and Donkeys by Kathleen Klenetsky

under the Dukakis scheme, borrowers quarter of one percent per $1 ,000 bor­ could end up repaying the government rowed. Unfortunately that doubles the more than 1,300% of their original cost. loan. According to several estimates, "The negative amortization con­ participation in the plan would trans­ tinues for the first seven years. But late into a 12% lifetime tax, over and while the principal is finally paid off above income tax and Social Security in year 20, ever increasing annual The Dukakis student deductions. payments continue for the next two A telling analysis of the plan comes decades. In other words, the middle­ loan rip-off from consumer finance writers Jeff income borrower ends up paying The student-loan plan which Michael Blyskal and Marie Hodge. Writing in $104,000 in interest versus $48,000 Dukakis unveiled in early September the Sept. 22 New York Times, they in the previous case-both are exor­ has to be one of the biggest frauds in slammed STARS as a "perpetual-mo­ bitantpricesto pay for an $8,000 loan." recent memory. tion debt scenario." Exorbitant isn't strong enough a Far from being the solution to the They take the average case of a word. Dukakis's plan would bring college financing dilemma facing the student who borrowed $8,000, and back indentured servitude. Can you bulk of American families it purports after graduation, finds a job paying imagine the insanity of having people to be, STARS (Student Tuition and $19,000 a year. The required annual mortgage their whole lives to pay for Repayment System) is a thinly dis­ loan repayment (at the one-eighth of a college education? And this from the guised lifetime supertax which could one percent) would be $190. man who advertises himself as the have been borrowed straight from ma­ But, they note, that does not in­ "education candidate!" fialoan-shar ks. clude interest payments, and the Du­ According to the Dukakis camp, kakis plan specifically states that mar­ Bestiality charges STARS would work like this: A stu­ ket interest rates would apply. Assum­ dent would borrow X amount of mon­ ing a 7% interest rate-a very opti­ plague Dukakis ey, and then repay it at the rate of mistic figure-this same borrower Charges that Mike Dukakis favors between one-eighth of one percent to would have to shell out $560 in fi­ bestiality-i.e., sex with animals­ one-fourth of one percent of his or her nance charges alone during the first have proved so embarrassing that his monthly income. Loan repayments year. After annual payments and in­ campaign aides have had to put out a would be deducted from the borrow­ terest accrual are accounted for, they briefingpaper clarifying his position. er's paycheck by the federal govern­ point out, the balance outstanding The charges have a very real basis: ment, in the way that Social Security would rise from $8,000 to $8,370. In 1970, Dukakis, then a Massachu­ is. "Bankers call that negative amor­ setts state legislator, introduced five The scheme's main selling point is tization," Blyskal and Hodge write. bills to abolish state laws against por­ that borrowers would have to shell out "Consumers know it as a perpetual­ nography, abortion, and various "un­ smaller payments than they would for motion debt machine. Under a best­ natural and lascivious acts," including standard student loans. case scenario-the borrower never sodomy and bestiality. But that would be true for a short loses his job, never takes a pay cut, Protestors dressed as animals and time only. The plan's most important never stalls his income in a lateral job wearing signs like "Wag your tail if feature-its supposedly "innovative" switch-negative amortization would you're against bestiality and Dukak­ part-is that it is "income contin­ continue to year 23. is," have turned up at numerous Du­ gent." That is, as the borrower's in­ "Unlike other loans, a STARS loan kakis campaign events. come rises over the span of his career, depends on inflation to make the But the campaign's attempt at so would his loan repayment. scheme work. In this example a pay­ damage-control isn't likely to placate The "income contingent" idea check that balloons to $457,629 by the those who find Dukakis's actions de­ comes from monetarist economist year 2028 would save the day. To re­ plorable: The explanation offered by Milton Friedman, the same fellow who duce negative amortization, Mr. Sum­ the briefingpaper is that Dukakis in­ argues that heroin and cocaine should mers [Dukakis's chief economic ad­ troduced the bills as a favor to a con­ be legalized so they could be taxed. viser Lawrence Summers] says the re­ stituent-anti-abortion activist Bill Given its origins, it's no surprise that payment rate may have to be one- Baird. Great excuse, Mike.

66 National EIR October 7, 1988 Eye on Washington by Nicholas F. Benton

from an 11.7% growth in June to 3.5% ary, if the money is used in a particular in August. way. "This has created a destabilized This idea caused a most perplexed environment of expectation both here look to come over the face of Profes­ and abroad," he warned. He added that sor Brunner. I trie(ito explain how, if the U.S. policy of "being willing to credit is directed toward areas of pro­ destabilize the domestic economies of ductive, as opposed to non-produc­ Tight money fanatics its allies" by forcing higher interest tive, investment, it will not be infla­ rates and currency devaluations in or­ tionary. It can even have a long-term criticize the Fed der to manipulate exchange rates, is deflationaryeffect, if it is used for ad­ Constituting themselves as the "Shad­ "unfortunate" and a political time vances in applications of technologi­ ow Open Market Committee" of the bomb. cal innovations that lower theunit costs Federal Reserve Board, an eight-man All these criticisms were true of production. committee of economists held a press enough, as far as they went, but com­ I tried to use im example. I cited briefing following their annual pow­ ing up with effective solutions to the the case of agricultural production, wow in Washington last monthto blast problem is another matter. Especially noting how improvements in produc­ the Fed and its chairman, Alan Green­ with this bunch. They revealed them­ tion, increasing the yield per acre on a span, for leading the nation down the selves to be a cadre of tight-money farm, lower the cost of food. road to economic ruin. fanatics, who insist that the ogre of It follows, then, I argued, that the The committee's most prominent hyperinflation can only be slain by relationship between growth in the member is Beryl Sprinkel, who is list­ holding down growth of the money money supply and inflation is simply ed as "on leave for government ser­ supply to a flat3%. a function of how that new money is vice" for the time being. He is the When I inquired what effect such invested. If it is used only to repay chairman of the President's Council of a policy would have on the economy, outstanding debt and for other non­ Economic Advisers. given the estimated $10 trillion in productive purpo!ies, such as fueling Ironically, it is Sprinkel's job to public and private debt obligations speculation in real estate and junk come before the White House press currently outstanding, I was told that bonds, then it will be hyperinflation­ corpsperiodically with stacks of charts "there is no way to avoid certain ad­ ary. But if there is legislation that di­ and graphs to rebut the "doomsayers," justments, but the choice is between rects the use of new money into pro­ as he always calls them, and boost the whether you act decisively to correct ductive areas, fostering moderniza­ so-called "Reagan recovery. " the situation or you allow conditions tion and build-up of new markets, then This occurs even as his dour col­ to worsen even further. " the relation between money supplyand leagues of the "dismal science" on the In a word, these "experts" have inflationtends actually to move in the Shadow Committee warn of catastro­ accepted the inevitability of a world­ opposite direction. phe, unless their own economic for­ wide deflationarycra sh. Simple? The concept seemed to mula seizes the agenda at the Fed. elude Professor Brunner completely, With Sprinkel on leave, the group which I do not blame on his personal is led by Prof. Karl Brunner of the The blinders of mental powers, so much as on the William E. Simon Graduate School at blinders that he has accumulated from ideological dogma the University of Rochester. Profes­ so many years of digesting the hocus­ sors and bank economists make up the What amazed me was the apparent pocus of the Mont Pelerin Society and rest of the group. complete inability of these economists related monetarist institutions. One of them, Brown University's to grasp a fundamental concept about This is a common malady in Prof. William Poole, took the point in economics that comes from outside Washington, D.�., where bureau­ attacking Greenspan's policy of mon­ their ideological dogma, from the crats and politicianshave become bri­ etary crisis management at the Fed. American System tradition of eco­ dled by the constricts of dogmas they By operating from month to month in nomlCS. commonly confuse with reality. an effort to "fine tune" the economy, For example, I suggested to Pro­ Whatever the issue is, if it does not he said, the Fed has caused "wild fessor Brunner that an expansion of conform with their party or factional swings" in the money supply, ranging the money supply needn't be inflation- line, they finda reason to protest.

EIR October 7, 1988 National 67 Congressional Closeup by William Jones

calling for the testing of all prisoners it. The problem is the longer we wait, C ongress approaches and routine testing of hospital admit­ the more difficultit is going to be, and Gramm-Rudman limits tees, if the hospital is located in a state the more millions of people who are As the Congress rushes to get all the where the incidents of AIDS infection going to die." appropriations bills passed before ad­ is more than 0.1 %, were resoundingly The real question facing the nation journment, congressional aides indi­ voted down. More significantly, a is, at the point Congress begins facing cate that Congress is within about $200 Dannemeyer amendment which would the reality ofthe AIDS epidemic, will million of over-shooting the $146 bil­ allow public health authorities to lo­ it then be too late? lion deficit ceiling allowed under the cate any individual who has tested As one congressional aide put it, Gramm-Rudman-Hollings law. positive for HIV infection, was also "This bill throws the ball back to the If spending exceeds that ceiling, defeated. individual states. If anything's going there will be automatic, across-the­ An amendment by Rep. Bill to be done about the AIDS crisis, they board reductions. At that point, the McCollum (R-Fla.), which would re­ are goingto have to do it." only way for Congress to avoid agen­ quire physicians and counselors to no­ The AIDS Federal Policy Act of cy-by-agency cuts, would be to come tify the spouses of infected individu­ 1988 in effect penalizes those trying up with new revenues or to offsetcut­ als, was also rejected. More broadly, to stop .the spread of the killer disease. backs elsewhere in the budget. the principle of reportability of those infected with the AIDS virus was to­ tally rejected by this piece of legisla­ tion. The legislation does not allow AIDS bill: Congress giving an AIDS test, unless the tester House okays trade refuses to face reality has received the written permission of sanctions against Iraq After a rather heated debate, the House the person being tested. The bill also On Sept. 27, the House approved by a of Representatives passed the AIDS imposes a fineof up to $10,000, under 388-16 vote a bill to impose trade Federal Policy Act of 1988, by a 367- the pretext of respecting confidential­ sanctions against Iraq for its alleged 13 margin. The dissenting votes were ity, on anyone revealing that a person use of poison gas against its Kurdish by conservative Republicans, who has AIDS, except under very narrow­ minority. didn't believe that the bill would stop ly defined circumstances. The Senate had earlier approved a the spread of the disease. Rep. Wil­ It was clear to a few congressmen, much stronger bill, and the differ­ liam Dannemeyer (R-Calif.), who did however, that the reality of the AIDS ences in the bills must be ironed out in more than anyone to try to mold this issue would at some point force leg­ a House-Senate conference commit­ bill into a halfway workable proposi­ islators out of the dream-world they tee before being sent to the White tion, in the end voted against it. are now living in. Rep. Dan Burton House for approval. The House mea­ In committee, Dannemeyer had (R-Ind.) commented, "I am absolute­ sure would initially ban shipment to done his best to put some content into ly convinced that we are going to not Iraq of arms, other items that could what can best be characterized as an only have reportability, we are going have military use, and chemicals that AIDS civil rights or an AIDS educa­ to have testing and on a routine basis could be used to produce chemical tion bill, initiated by Rep. Henry for everybody in this country, and we weapons. Under a second tier of sanc­ Waxman (D-Calif.). Primarily due to are going to have contact tracing down tions, the President would be allowed the efforts of Dannemeyer, the final the road. It will happen because, as to impose furtherpenalt ies, including version of the bill did, however, in­ the epidemic spreads, the American a ban on U.S. agricultural exports to clude provisions requiring testing of people are going to demand it. . . . Iraq and a prohibition on imports of individuals convicted of prostitution, This thing is not going to go away, oil from Iraq. of a crime relating to sexual assault, unless we find avaccination or a cure, The Senate bill would halt U.S. or of a crime relating to an intravenous yet we act in this body as if it will. It credit and sales of most materials to substance. will not. It will spread in an exponen­ Iraq, bar oil imports from Iraq, and Other Dannemeyer amendments tialmanner until we come to grips with requirethe United States to vote against

68 National EIR October 7, 1988 loans to Iraq by internationalfinancia l the great skepticism up here about it, drugproblem?" organizations. President Reagan is ex­ and I think Mr. Carlucci himself now As one of the NORML people pected to veto any sanctions bill. recognizes there are problems. " gleefullyput it, "The genie is now out of the bottle."

C ongress re-works Rangel launches drug Speaker Wright DoD authorization bill legalization debate does it again The Department of Defense Authori­ On Sept. 29, hearings were held by House Speaker Jim Wright (D-Tex.) zation bill, which President Reagan the Select Committee on Narcotics again became the center of controver­ had vetoed on Aug. 3 because of the Abuse, chaired by Rep. Charles Ran­ sy, in responding to the accusations cuts made by Congress in the Strategic gel (D-N.Y.), to "investigate" the that he had revealed confidential in­ Defense Initiative (SDI) and certain possibility of drug legalization. The formation from CIAintelligence brief­ arms control provisions, has now been "honored guest" was Mayor Kurt ings. Wright said that it was the right revised, with certain minor changes, Schmoke of Baltimore, the foremost of congressmen to disclose or criticize and approved by the House and the proponent of drug legalization since secret intelligence matters, saying that Senate. The changes do little to alle­ his election last year. even though "a matter is classified­ viate the financial squeezeon the SDI. The hearings were "loaded" in fa­ secret-doesn't mean it is sacrosanct The amount of money allotted to vor of drug legalization, with many or immune from criticism." the SDI for Fiscal Year 1989 will re­ representatives from the National Or­ Most House Democrats would not main at the $4. 1 billion level. This ganization for the Repeal of the Mar­ comment on the issue. Rep. Beverly was the amount permitted by Con­ ijuana Laws (NORML) present. An Byron, a Maryland Democrat, said, gress in the vetoed bill-down from exception to this was Jerald Vaughn, however, that Wright's remarks have the $4.9 billion requested by the Pres­ executive director of the International effectively disqualified himfrom act­ ident. The new bill, however, elimi­ Association of Chiefs of Police, who ing as a broker between the Marxist nates the restrictions of the firstbill as pointedly asked why hearings on drug Nicaraguan government and its civil to how the money was to be spent. legalization were being held at all, and armed opponents. Needless to say, In the first variant, Congress tried since the whole idea was so patently House Republicahs were in a fighting to cripple the SDI research by shifting insane. mood. "The Speaker is dead wrong the emphasis of the SDI monies from New York City Mayor Ed Koch about what's been done and what he space-based missile defenses to testifiedagainst drug legalization, re­ said," said Henry Hyde (R-Ill.), rank­ ground-based systems. These restric­ ferring to the failed attempts in Great ing Republican on the House Intelli­ tions were taken away, although De­ Britain to legalize heroin: The number gence Committee. "He has totally de­ fense Secretary Frank Carlucci, who of addicts quadrupled in five years! stroyed the reputation of Congress to was negotiating on behalf of the White Koch emphasized that we have to do be able to keep classifiedinformation House, had to give assurances that any more, not less, in the War on Drugs: secret." cuts the Pentagon makes in money it "It is time to raise the battle flag, not In a straight party-line vote on devotes to development of the land­ wave the white one," said Koch. And Sept. 28, the HouseIntelligence Com­ based systems would be no deeper than this is indeed what any form of drug mittee refused a request by Republi­ the overall cut in the anti-missile pro­ legalization would be-a surrender to can members to provide classified in­ gram. the drug lords. formationto the ethics committee that The bill also puts limits on the Congressman Rangel says that he would clarify whetherWright had vi­ planned space-based interceptor sys­ is opposed to legalization. The ques­ olated House rules in discussing the tem. "The reason we put that ceiling tion should then be repeated: "What issue. Republicans have threatened to on the space-based interceptor," said purpose do such hearings serve, if not press the issue, saying that it could Sen. Sam Nunn (D-Ga.), chairman of that of introducing the 'legalization' tum the final days of the 100th Con­ the Armed Services Committee, "was issue as a legitimate response to the gress into a partisanconfrontation.

EIR October 7, 1988 National 69 National News

tied astronaut yelled out, "Oh yeah? Who? Actually, the 1960s project, which in­ Jane Fonda?" volved experimentation with mind-altering substances, was conducted at the initiative u.s. faces severe of the British Establishment and British in­ telligence's "left wing," typified by such shortage of scientists creatures as Bertrand Russell and the Hux­ The United States is facing one of the worst ley brothers . shortages of scientists in its history , accord­ Russians declare Cameron, now deceased, was responsi­ ing to a federal researcher. Dukakis debate winner ble in 1945 for advising the court in Nurem­ The shortage is worse than it was in the berg on the mental state of captured Nazi late 1950s, when the Soviet Union took a Michael Dukakis was the winner of his tel­ leaders . Ironically, in the upcoming case, e lead with the 1957 launch of Sputnik, said vised debate with George Bush, insists witnesses for the plaintiffs will draw paral­ Pravda, Bassam Shakhashiri, assistant director of the the newspaper of the Soviet Com­ lels between what Cameron did, and what National Science Foundation. munist Party. Nazi doctors did at Auschwitz and other Pravda "The situation the country faces is more reported that the Sept. 25 debate concentration camps . critical ...than we faced in the post-Sput­ only touched on Vice President George According to the Sunday Telegraph, nik era," he told the annual meeting of the Bush's attitude toward Soviet reform and on "Cameron's work was funded by the CIA as American Chemical Society in Los Angeles the personality of the Massachusetts gover­ part of a secret project, code-named MK­ Sept. 26. nor. The debate focused, however, on do­ Ultra, and received about $60,000 in re­ The country will be short about 400,000 mestic problems. search grants through an intermediary or­ graduates with bachelors' degrees in science "And here , Dukakis ... spoke more ganization called the Society for the Inves­ and engineering by the year 2000. strongly, repeatedly reminding viewers of tigation of Human Ecology." Shakhashiri called for a "scientifically such 'achievements' of the administration literate society" composed of citizens who as the gigantic budget deficit, millions of can "distinguish astronomy from astrolo­ homeless people on the streets of American gy." cities, and reductions of federal higher ed­ ucation aid to the poor," said Pravda. Most viewers fe lt that neither Bush nor Schmoke repeats call Dukakis had scored a "knock-out" in the for drug legalization first of their two planned television debates. Baltimore Mayor Kurt Schmoke, who "However, considering that Dukakis is lag­ spearheaded the Eastern Establishment's ging behind for today , even a draw can be drive to legalize dangerous drugs in May, NASA astronauts deemed a victory for him," it concluded. when he called for a "wide-ranging debate" 'briefed' by rock star on the issue at the National Conference of The entire NASA astronaut corps was forced Mayors in Washington, has now called for to listen to a "briefing" by rock singer John outright legalization of marijuana in Denver the week of Sept . 19. congressional testimony . Denver is trying to get the Soviets to take MK-Ultra victims Testifying at hearings of the House Se­ him on a trip to the Mir space station. The lect Committee on Narcotics Abuse and Soviets said they will charge Denver $10 go to court Control, Schmoke called for "a redefinition million and require him to live in Russia for Former mental patients who were victims of of the role of the criminal justice system in one year. the CIA's "MK-Ultra" project will appear the fight against drugs," including immedi­ NASA officials, after consulting with in a Washington, D.C. court in the firstweek ate elimination of criminal penalties for pos­ the State Department , scheduled the brief­ of October, to charge that British-born Dr. session of marijuana. ing while Denver was in Houston to receive Ewen Cameron, former president of the All other criminal statutes on drugs, he a space readiness physical, as requested by World Association of Psychiatrists, used said, should be revised in accordance with the Soviets. them as guinea-pigs in the CIA's secret re­ the findings of a commission which would All astronauts were required to attend. search project, Britain's SundayTelegraph assess the "relative potential for harm which Most were reportedly extremely angry that reported Sept. 25. a drug possesses." on the eve of the most crucial shuttle launch These patients, who were at Dr. Cam­ Schmoke also called for the expansion ever, they and other NASA personnel were eron's hospital in Montreal between 1957 of methadone maintenance programs, and wasting time with Denver. and 1960, are each claiming $1 million in for other forms of narcotics maintenance, During the briefing, Denver, who said damage, from the CIA. The case, expected including cocaine and heroin maintenance . he was personal friends with Mikhail Gor­ to last a week, "will embarrass the CIA," He recommended institution of a clean needle bachov, said the Soviets have invited other and challenge the entire practice of psychi­ exchange program, as a way to reduce the Americans to go on the Mir. One disgrun- atric medicine, the Telegraph commented. spread of AIDS.

70 National EIR October 7, 1988 Briefly

Air Force Secretary Edward Aldridge, • FATHER Junipero Serra, the Jr. claimed that satellites are good enough Franciscan monk who founded Cali­ to track storms, but Mark A. Zimmer of the fornia's Christian missions in 1796 Allies sign space National Hurricane Center in Miami argues and is known as "California's first that aircraft surveillance is essential for ac­ citizen," will be beatified by Pope station agreement curacy in certain forecasting situations, such John Paul II. "Serra has been honored The United States, Japan, Canada, and Eu­ as Hurricane Gilbert, this century's largest. in U.S. history with his statue in the ropean nations formally signed an agree­ To make matters worse, one of the two Rotunda in Washington, D. c., rep­ ment to cooperate on the U.S. space station key weather satellites over the United States, resenting the state. Now we see Freedom, in Washington Sept. 29 . The space GOES West, is about to cease functioning, Church officials allowing him to take station is scheduled for launch in the mid- which will force its twin, GOES East, to be his place in Church history as well ," 1990s. moved away from the Atlantic to provide said a spokesman of the Diocese of Signed were Intergovernmental Agree­ cover for both coasts, much reduced. Monterey . ments on the station-umbrella agreements Due to both budget cuts and the repeated for completing and delivering the foreign failures of U.S. satellite launches over the • FYODOR BURLATSKY, a top components and laboratories for the station, past three years, the next GOES weather policy adviser to the Soviet KGB , told satellite is not expected to be launched and and which definethe legal parameters under a select group at Harvard University which the internationalfacility will operate. in operation for more than a year. Sept. 28 that Democratic presidential According to Margaret Finarelli of Should anything happen to GOES East candidate Michael Dukakis is "more NASA, the station is the largest cooperative during its orbital change, then the United in my heart," even though GOP can­ scientific and technological venture the States will be almost completely blind to the didate George Bush is "more in my United States has ever entered into . movement of air masses and storms in the mind." Dukakis, he said, is "more NASA has given multiple briefings to adj acent oceans . liberal-like me ." the press on the space station program at the Kennedy Space Center, trying to increase • MIKE TYSON, the undisputed public support for the program. heavyweight boxing champion, has Congress has funded the station through "personal problems" which have been March to the tune of $400 million, with an­ Canada won't guarantee the subject of much press sensation­ other $500 million placed at the discretion alism, but EIR ' s sources says the me­ of the next President. He must quickly de­ New England power dia coverage actually reflects a battle cide whether to go ahead with the effort. Hydro-Quebec, the Canadian utility com­ between organized crime groups for Without a space station, the United States pany that steadily supplied New England control of his contract, one repre­ cannot go back to the Moon, let alone con­ with electricity last winter, has announced sented by the late Roy Cohn's inti­ sider a manned Mars mission in the decades that it cannot be counted on to do the same mate, Donald Trump, and the other ahead. this year. by the Jacobs brothers. Last winter and this summer, the New England Power Pool barely had enough • MARIO CUOMO'S fundraising power to supply the needs of its customers . group in New York State, the Friends The Pool had to initiate rationing and power of Mario Cuomo, has announced that cutbacks at least 20 days last year, while it plans a Nov. 30 dinner to raise $2 U.S. to lose storm Boston Edison cut its voltage 5% on numer­ million to add to his campaign war­ ous occasions to meet peak summer de­ chest for reelection as governor. The tracking capabilities mand. war-chest already contains $3.5 mil­ Budget cuts may cause the United States to On one August afternoon, Edison had to lion. lose a large chunk of its severe-storm track­ cut off all power to four large office towers ing capabilities, at a time of unprecedented in Boston. • RAYMOND DONOVAN'S case weather phenomena globally . In the winter 1987-88, Hydro Quebec is not quite over. Bronx, New York At issue is the $25 million cost of con­ supplied roughly 3% of New England's total District Attorney Paul Gentile said tinuing to operate 12 specially equipped WC- needs. Sept. 29 that ,he was reopening the 130 aircraft in an active duty squadron at Massachusetts Gov . Michael Dukakis investigation of jury -tampering in the Kessler Air Force Base in Mississippi. has argued that the state does not need New trial in which the former labor secre­ Last year, all U.S. Air Force tracking of Hampshire's Seabrook nuclearfac ility or any tary and co-defendants were acquit­ storms and typhoons in the Western Pacific additional power, claiming that any in­ ted of fraud and grand larceny was eliminated due to budget cuts, and this creased demand due to growth could be met charges. The probe had been dropped year, the Atlantic squadron may be elimi­ by conservation or by buying the power from by the FBI in May 1987. nated. Canada.

EIR October 7, 1988 National 71 Editorial

What is the Soviet Union?

Now that Mikhail Gorbachov is officially President of of their thesis that the Soviet Emprire is crumbling and the Soviet Union , the firststage of a dramatic leadership the KGB being dissolved, are in for a series of rude shake-up seems to be winding down with a major ap­ shocks. Unfortunately, these shocks will have a crucial parent consolidation of power by Gorbachov . Many in impact on the future of our entire civilization. The pres­ the West are already wishfully trying to see these moves ent leadership shake-up may well be a preliminary to a as indications of a fu rther "liberalization." far more openly aggressive policy toward the West. In this , they can point to the transfer ofGorbachov ' s Certainly, under present circumstances, there will be opponent, Yegor Ligachov, to head a commission of no question of reducing the power of the secret police. agriculture as an indication of Gorbaov's strengthen­ Indeed, the replacement for KGB head Chebrikov, Vla­ ing. Approximately one-third of the policy-setting Cen­ dimir Kryuchkov, appears to outrank him in political tral Committee has resigned from office , including the clout. former Soviet President, Andrei Gromyko . But while While there is always a certain friction between Gromyko at 79 was known to be ailing, the resignation other sections of the Soviet leadership and the KGB , of Anatoly Dobrynin was more of a surprise. and a leading faction may well seek to use the military Dobrynin has played a key role in shaping Soviet to curb KGB power should it pose a threat at the top , policy toward the United States since he assumed his the military can never replace the secret police as the Washington embassy post in 1960. It was assumed that glue which holds the Soviet state together. his recent recall to Moscow under Gorbachov's rule The essence of the Russian Empire has always been meant an extension of his already significant power. that of a "captive house of nationalities," as Lenin la­ Certainly he is a major architect of the New Yalta ar­ beled the Czar's Russian Empire , and as the popula­ rangement which has been consolidated through the tions of the East bloc think of themselves. Whereas , in Gorbachov-Reagan summit meetings. What then does Western European culture, most groups of different his ouster portend for a shift in Soviet policy? ethnic origins are assimilated into the general popula­ Not only are the Soviets suffering from a disastrous tion , the anti-Western culture of the Russian empire food crisis, but as a result of shortages of food and other tends to preclude this. Under intense pressures, such as essential consumer commodities there has been an up­ the acute food crisis now escalating there , the natural swelling of national discontent throughout the extended tendency of Soviet society to fracture along lines of Soviet Empire . Indeed, in spite of their attempts to traditional ethnic and religious differences, comes to maintain a liberal facade for Western consumption, the surface. they have been forced to impose martial law upon the In a situation which threatens to get out of control Armenian and Azeri populations of their country , and as in Nagorno-Karabakh today , the Soviets do not hes­ they have stiffe ned police powers throughout the coun­ itate to bring in the military. However, to sustain the try. pacification process beyond that point, if they are able The East bloc as a whole is in turmoil, and the to bring insurgency under control, they rely upon quie­ appointment of Mieczyslaw Rakowsky as prime min­ ter methods of secret police infiltration of every aspect ister of Poland is a signal of political repression to come of popular life. in that country . Similarly, the Soviets have indicated So, today, despite shifts in personnel , the leading that they do not intend to give up either military or item on Moscow's agenda remains the interrelationship political control of Afghanistan . between the food crisis and the resulting tendencies Those wishful thinkers who would see confirmation toward eruption of intense degrees of nationalist unrest.

72 National EIR October 7, 1988 ...... ,u�t------+------360 -+--

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1987 1988

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did not report . • • You Dukakis's mental health: an objective assessment can read EIR 's 16-page supplement begins with Lyndon LaRouche's article, "I never claimed Dukakls had been cured." It includes: a profile of the historical parallel between Dukakls and Mussolinl; the leaflet that started the controversy, and the full docu­ for $21 mentation to substantiate it; the case of Stellan Dukakls; and the story of Dukakls's official witch, Laurie Cabot.

Pablo Escobar, the kingpin of the "Medellin Cartel," world's biggest cocaine trafficking ring, sent Dukakis a letter last spring praising his "very realistic" stand on drug control, accord­ ing to the Colombian weekly Semana. r------, Daniel Ortega, the Sandinista President of Nicaragua, thinks ..the victory of the Demo ­ fIR Please send me copies of the supple­ cratic candidate for the White House, Michael ment, "Dukakls's mental health: an objective assessment." Dukakis, would improve the situation in Cen­ I enclose . tral America," according to the Italian Com­ Prices (postpaid): 1-24 copies, $2.00 each. 25-49 copies, $1 .00 each. 50-99 copies, $.70 each. 100 or more, $.50 each. munist Party newspaper, Aug. 16, 1988.

Name ______Dukakis is lIa very efficient governor, very ac­

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City ______Slale ___ ...L 7;p,__ _ big popularity in the state of Massachusetts," says Radomir Georgevich Bogdanov, vice­ Telephone ______director of the U.S.A.-Canada Institute in Mos­ Make checks payable to: cow, inan interviewwith Ital y's La RepubbUca EIR News Service, Inc. newspaper on Aug. 15, which predicts that Du­ P.O. Box 17390, Washington, D.C. 20041 -0390 kakis will beat Bush in November. ------�