Giscard out to stop 'otherwise inevitable war' Lehman's Peterson: 'take the world to the brink' Will dictatorship follow a 1980 election deadlock?

Abscam/Brilab attacks progress and the American labor movement [THIS PAGE IS INTENTIONALLY BLANK] Editor-in-chief: Daniel Sneider Associate Editor: Robyn Quijano Managing Editors: Kathy Stevens, Vin Berg Art Director: Deborah Asch, Martha Zoller Circulation Manager: Lana Wolfe From the Contributing Editors: Lyndon H. LaRouche, Jr., Editor Criton Zoakos, Nora Hamerman, Christopher Wh ite, Costas Kalimtgis, Uwe Parpart, Nancy Spannaus

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot Asia: Daniel Sneider Counterintelligence: Jeffrey Steinberg Economics: David Goldman Energy: William Engdahl and Marsha Freeman Europe: Vivian Zoakos Latin America: Dennis Small Law: Felice Merritt Middle East: Robert Dreyfuss Mifitary Strategy: Susan Welsh Science and Technology: Morris Levitt "� ft degree of controlled disintegration in the world economy is a Soviet Sector: Rachel Douglas United States: Konstantin George legitimate objective for the 1980s ... " stated the Council on I;oreign United Nations: Nancy Coker Relations in its "Project 1980s" blueprint for depression. This Trila­ INTERNATIONAL BUREAUS: teral Commission economic policy, the same as that of the Carter Bogota: Carlos Cota Meza administration, is well on its way to shutting down American industry George Gregory Bonn: and deregulating trucking and all American transport, throwing this and Thierry LeMarc crucial "conveyor belt" of production into chaos and bankruptcy. Brussels: Christine Juarez Chicago: Mitchell Hirsch But the total implementation of the controlled disintegration Copenhagen: Vincent Robson policy requires that the American labor movement be destroyed and Mexico City: Josefina Menendez labor connected urban machines along with it. Such defenders of Milan: Muriel Mirak New Delhi: Paul Zykofsky living standards and industrial progress cannot be allowed to get in Paris: Katherine Kanter the way. and Sophie Tanapura This week's Special Report, "AbscamjBrilab attacks progress and Rome: Claudio Celani Stockholm: Clifford Gaddy U.S. Labor," demonstrates just what most of the victims of the Washington D.C.: Laura Chasen Justice Department's "sting" operations have in common, and the and Susan Kokinda gestapo style entrapment procedures being used to rid the country Wiesbaden: (European Economics) Mark Tritsch and Laurent Murawiec of any and all opposition to Trilateral policy. The goal is a consolidated coup against all traditional American institutions by Executive Intelligence Review is published by no later than the close of election year 1980. New Solidarity InternationalPress Service This expose was researched by an intelligence team from EIR's 304 W,58th Street, New York.N. Y. 10019. In Europe: Campaigner Publications; counterintelligence newsletter, Investigative Leads in preparation for Deutschl. GmbH. + Co. Vertriebs KG a more extensive document on the subject. Scott Thompson authored Postfach 1966. D. 6200 Wiesbaden the report. Copyright c 1980 New Solidarity International Press Service All rights reserved. Reproduction in whole or in part without permission strictly prohibited.

Subscription by mail for the U.S.: 3 months-$125, 6 months-$225, 1 year-$396, Single issue-$lO ISSN 0146- 9614 ITillContents

Departments Economics

1 From the Editor-in-Chief 6 'Industrial restructuring' comes out of the closet 5 Editorial The Federal Reserve, What cracked the alliance? "futurology" think-tanks and many others are suddenly crying 46 Military Strategy out on the need for a V.S. "industrial policy." At best, they Reagan's advisors sold intend incompetent "quick fixes" Nixon the All-Volunteer Fo(ce for troubled defense concerns, but more generally, to 48 Middle East Report "streamline" both industries and Khomeini's kooks urban centers into small-scale and V.S. spooks models of their former capacities.

49 Dateline Mexico 8 Lehman's Peter Peterson: A new environmentalist cult 'Take the world to the brink' 58 Campaign .1980 Report on an exclusive EIR interview with a leading Brandt 59 InSight Commission member American System living standards 10 Gold Europe puts a floor 60 Congressional Calendar under the price

64 Facts Behind Terrorism 11 Foreign Exchange Red Brigades threaten Giscard 12 World Trade Carter's impact in just six months

13 Trade Review

14 Corporate Strategy International Harvester's saboteur

15 Science and Technology

MHD improves fo ssil fuel efficiency

16 Business Briefs Volume 7. Number 21 June3.1980

Special Report International National

26 Giscard out to stop 52 Will dictatorship follow 'otherwise inevitable' war a 1980 election deadlock? The French president, without The mouthpieces of the informing the United States, backroom boys at the Council on suddenly went to Warsaw to Foreign Relations have been meet with Mr. Brezhnev. French "predicting" a constitutional press say he listened to Edmund crisis, one resulting from a Muskie talk in Austria, and presidential election thrown into immediately made the decision the House of Representatives. Teamsters demonstrate against trucking that war was "otherwise Just to be sure, they're running deregulation in Detroit. Photo: NSIPS inevitable. " John Anderson.

28 Muskie's first 54 FEMA is running 18 Abscam/Brilab attacks official provocation the Miami riots progress and U.S. labor The game is 'planned shrinkage' Few stopped to ponder who was 29 No hope for Africa in of America's urban centers being hit and why, when the Club of Rome 'Trialogue' Department of Justice's 56 Exclusive: independent entrapment operations, Abscam 30 Lopez Portillo's oilmen-endangered species? and Brilab among others, first became public. It's an operation meeting with Giscard to destroy those labor and The Mexican and French 62 National News industry combinations that have presidents discussed Mexico 's been the backbone of American need for nuclear technology, and industrial strength and republican France's effort to prevent nuclear institutions. war. Documentation: The joint 21 How Abscam and communique, the speeches, and Brilab "sting" an interview with Mexico's no. 2 industrial official. 24 Kennedy Justice: 36 U.S. policy on Abscam/Brilab's roots Cuba leads to war

25 Who is Benjamin Civiletti? 38 Is the end near for the Khomeini regime?

40 Is the end for Bani-Sadr near?

43 Japanese security, Korea and one Richard Sneider Plus: Japan's faction fight: key to Asia's future

50 International Intelligence

Editorial

What cracked the alliance?

Since the Giscard/Brezhnev summit in Warsaw for a moment. Your V.S. ally is rushing into con­ and France's refusal to go along with the V.S. frontation with the Soviets, has buried detente and olympic boycott, much hysteria has been generated is simultaneously plunging the West into a "con­ about the problem of "the allies." Secretary of trolled disintegration" collapse. State M uskie railed against the French, and the Can you count on your ally to assure that you press bemoaned the "cracked alliance." are not "eradicated as a geographical entity if not "Without support of allied dollars, armaments altogether from the memory of man?" and men, the French nation would have long ago What have the allies to depend on? been eradicated as a geographical entity if not According to a confidential memorandum re­ altogether from the memory of man," howled the leased recently by Defense Secretary Harold Brown Atlanta Journal and Constitution. in London, American youth do not need to be Em otions run high on this issue. After all, the trained in science and mathematics in order to use allies, particularly France, "owe us something." high technology weaponry since it will be scrapped That they do. But what the allies owe us, they in favor of "more practical weapons that we can owe to the American nation-state, to the national buy in greater quantities." interest. They owe nothing to the Carter admini­ Brown seems oblivious to reports of Soviet stration, madly on a drive toward war that could breakthroughs in electronic beam weaponry that mean the end of civilization as we know it. may soon have the ability to knock out V.S. mis­ Giscard met with Brezhnev "to stop otherwise siles in their ascending stage. inevitable war," reported the French media. The Two subcommittees of the House Appropria­ American population, because of the hideous dis­ tions Committee recently slashed the budgets of the tortion of reality painted by the V.S. media, has yet magnetic fusion program and the National Aero­ to understand that fact. nautics and Space Administration (NASA), the The French have demanded a war-avoidance two most scientifically advanced programs left in strategy based on trade and cooperation with the this austerity wracked nation. Soviet Vnion and a development strategy fo r the The Solar Polar Mission was cancelled, termi­ Third World. The allies want to negotiate a lasting nating a joint project of NASA and the European peace in the Middle East. They know this is the Space Agency (ESA), thereby abrogating a treaty. only way to ensure that their oil supplies are not The allies invested $30 million and designed one cut by Brzezinski's arc of cirsis provocations. of the spacecraft fo r the cancelled solar mission. Not unreasonable demands. Nor do they con­ Roy Gibson, the ESA director, concluded last week flict with the real national interest of the Vnited that NASA is now considered "an unreliable part­ States. In fact they constitui� the only potential we ner in international cooperation." have for national survival. They do conflict, how­ As an ally, the Carter administration has not ever, with the present interest of the administra­ done well. As a maker of policy fo r the future of the tion-a Trilateral Commission entity-and its nation and the world, it has done even worse. As policy of war provocation and economic collapse. one NASA official complained, "they want us to If one is to usefully question the nature and pull in our tentacles and become a Dark Age fu ture of the alliance, one must "think European" society." Such a nation is not a dependable ally.

EIR June 3, 1980 Editorial 5 �TIillEconomics

'Industrial restructuring' comes out of the closet

by Lydia Schulman

"The escalation of energy prices and recurrent threats of Present Danger, are circulating discussion papers calling oil shortage have forced harsh adjustments and new ways fo r a big increase in government defense spending to stay of thinking on the average citizen, calling into question the U .S.'s waning military strategic position. a style oflife dependent on cheap and abundant energy." The Club of Rome-linked Academy for the Study of With these words to the convention of the National Contemporary Problems, the Urban Land Institute, and Association of Mutual Savings Banks in Florida on May allied urban development think tanks held semi-secret 14, Federal Reserve Chairman Volcker made explicit the conferences around the country last week on the topic of long-range policy objective behind the Fed's restrictive rehabilitating the nation's older urban centers "on an monetary regime: to force a fundamental restructuring appropriate scale"-Le., around white collar, "informa­ of the U.S. economy. tion" industries. According to one ULI staffer inter­ Tight money will be a continuing element of the viewed, the consensus at these fo rums was that the reality Federal Reserve's program, Volcker emphasized. He of the energy crisis and the breakdown of public transit warned that the dramatic drop in interest rates over the systems dictate new development patterns for the coun­ past month was a reflection of "a fall in the demand for try. The trend must be toward "compacting" and "in­ money and credit, not an increase in supply"; the Fed is filling"urban centers on a scaled down basis; the suburbs fully commited to a policy of "restraint on growth in the are a thing of the past. The only question is, what do you money supply and credit." The post- 1975 economic ex­ do with the blue-collar workers and lumpen population pansion, which added 14 million to the employment rolls, now residing in the cities? "Are they suitable for any had a "false glow" to it, and is an unrepeatable experi­ work?" ence. "I suspect you already realize there can be no Earlier this month, the Harriman-sponsored Ameri­ simple retreat to 'business as usual' ," Volcker said. can Assembly held a seminar at Arden House on the Volcker's comments were followed by a rash of calls topic of "The City and the Farm," which reportedly last week for the forging ofa national "industrial policy" treated the mutual benefits of "recentralizing" the cities from such diverse quarters as the Kennedy and Reagan and turning the suburbs back into farm land. presidential campaigns, private thinktanks of left and The policymakers who are dreaming up such propos­ right persuasions, and the Department of Transporta­ als are ignoring the obstacles to so neat a "restructuring" tion. The common theme of all these calls was the need of the U.S. economy, not the least of which is the out-of to "streamline" America's crumbling basic industries, control nature of the economic unravelling unleashed by such as auto and steel. chairman Volcker. The other major obstacle to an "in­ Reagan's defense and fo reign policy advisory group, dustrial recovery" program keyed to a defense build up centered at Georgetown University's Center for Strategic is the depleted state of the U.S.'s capital goods infran­ and International Studies and the Committee on the structure and its skilled labor pool.

6 Economics EIR June 3, 1980 The EIR's recent series on the loss of American fo r Economic Cooperation and Development and the military superiority, which located the problem in the Spanish Ministry of Energy. neglect of broad-based scientific research and in-depth The DoT study, according to sources in the depart­ basic industrial development, is now being echoed ment, will recommend a comprehensive government pol­ widely. An op-ed in the May 19 Wall Street Journalby icy on auto which could include import protection, tax Harvard sociology professor Ezra Vogel, for example, breaks for the industry, and some relief from clean air noted that contrary to the myths about cheap labor and and safety regulations. The present government assist­ protectionism, the key to Japan's industrial success has ance package for Chrysler, which has already entailed a been its "better educated" labor fo rce and its govern­ 35 percent permanent reduction in Chrysler's workforce ment-business collaboration for strategic development. and a dropping of all the auto company's full-size cars, "Japan will soon be investing more in absolute terms in points up the actual content of the "industrial policy" modern plant and equipment than the U.S.," Vogel under discussion: government-directed shrinkage and reported. (This compariso"n doesn't even take into ac­ cartelization of basic industry with only the most limited count the superior composition of Japanese capital in­ assistance for "modernization." This is precisely the vestment.) "The proportion of GNP going into R&D policy of the Italian and German fascist regimes put into has been fa lling in the V.S., but rising rapidly in Japan." effect in their respective countries. Despite the sudden alarm that has gone up in leading "When you have a deepeningeco nomic crisis, people V.S. policy circles, the solutions that are being proposed start thinking about the need for a national industrial by these same circles are incompetnet "quick fixes," policy," Gail Garfield Shwartz of the Academy for the typified by the Committee on the Present Danger's pro­ Study of Contemporary Problems said in an interview posal to have a manpower training program for the last week. Ms. Garfield was a featured speaker at the armed forces alone. Council on V rban Economic Development conference in The occasion fo r the new discussion of economic Washington on May 19, where "Industrial policy" was restructuring is, of course, the deepening of the V.S. the leading item on the agenda. "There are some very economic collapse. Orders for durable goods plunged important people in government who realize that we 4.2 percent in April, as orders for machinery and capital must fo rmulate an industrial policy and fast. We need goods joined the collapse. The steel industry's operating policies for 'mature' industries like steel, auto, and elec­ rate dropped to 71.6 percent of its usable capacity in mid­ tronics, and fo r our growing industries like biochemicals, April. The auto industry now has 217,000 workers on medical instruments, and environmental devices. The indefinite leave and 55,000-70,000 per week on tempo­ government is going to have to step in with revolving rary leave. On May 16 the Chrysler Corp. made the loan funds, interest rate subsidies; government is going expected announcement that it will close its Lynch Road to have to share some of the risk." plant in Detroit permanently and get out of the full-size As fo r the future shape of V.S. industry, Ms. car business for good. This decision, industry sources Schwartz predicted that the older industrialized centers report, was one of the conditions that had to be met "are going to shrink. Younger people are going to have before the Chrysler Loan Guarantee Board would release to move." The government must undertake a compre­ $1.5 billion in loan guarantees to Chrysler earlier this hensive approach to the basic industries, she emphasized: month. "If government is going to assist the steel industry for In this atmosphere of economic doom, the May 20 example, it has to look at the whole industry. Last year New York Times gave prominent coverage to an ongoing the Economic Development Administration of Com­ study by the Department of Transportation on the via­ merce granted a subsidized loan to Wisconsin Steel, a bility of not just Chrysler, but the entire automobile small company in Chicago. The company recently fold­ industry. The study, which was initiated last winter by ed.Had we had a comprehensive program, we would be Transportation Secretary Neil Goldschmidt, reportedly able to decide which companies can recover and which raises the broader issue of "industrial policy": what must can't. Now everything is done on an ad hoc basis; you government policy be vis-a-vis the aging basic industries always have a cliff hanger-a Chrysler crisis." of the advanced sector? As the Times noted, both the The recent speeches of Alexander Trowbridge, cur­ Trilateral Commission and the New York Council on rent president of the National Association of Manufac­ Foreign Relations have undertaken major research proj­ turers, fo rmerly of Allied Chemical, are taking up a ects on industrial policy, the latter of which will be the similar theme. Felix Rohatyn recently made a renewed next volume in the CFR's "1980s Project" series and is pitch for a new Reconstruction Finance Corp. to "aid" being conducted by William Diebolt. "Industrial Policy" V.S. industry. Left and" right are converging in the was also the topic of a major international symposium in restructuring discussion. As Ms. Garfield put it, "There Madrid May 5-9, jointly sponsored by the Organization are some strange bedfellows in the industrial policy bed."

EIR June 3, 1980 Economics 7 A Brandt Commission Rlot

Lehman's Peter Peterson: 'Take the world to the brink'

"I reject taking the world to the brink and international was nearing breakdown-after two years of stone-wall­ " brinkmanship, but this may be needed in the Middle ing against Third World demands for a "new interna­ East. I think a country or two may get overthrown in the tional economic order" that would entail provision of Middle East and oil may get shut off." debt-relief followed by credits fo r real industrial and This is the view of Peter Peterson, one of the two U.S. agricultural growth. Since Henry Kissinger, in Third members of the Brandt Commission. Created in 1977 World eyes, was the principal culprit sabotaging the and still run by the World Bank, the Brandt Commission, negotiations, the North-South meetings were maintained so named after its chairman, Willy Brandt, is supposedly through 1976 only on the basis of holding out the pros­ dedicated to a "new international economic order." pect of the "new, pro-Third World" Carter administra­ As the remarks of Peterson, given in an exclusive tion-and the dumping of Kissinger-coming into office interview to EIR earlier this month disclose, the Brandt in the United States. Commission is in the thick of world destabilizations. So, the Third World nations waited, and of course, Moreover, discounting arguments issued for public con­ discovered that Jimmy Carter and company were indis­ sumption, including their recently released 300-page tinguishable from Henry Kissinger. The talks collapsed North-South: Strategy fo r Survival, the Brandt Commis­ in 1977. sion and its members are committed to sharp cutbacks in At this point McNamara made his move. The Third world industrial production, living standards and popu­ World was handed the prospect of "a new independent lation. commission" under nice-guy Willy Brandt. So, for two According to Peterson, the Brandt Commission must more years, the Third World leaders waited for a report work up a two-fold strategy to implement their plan. fr om the commission that would satisfy their needs for a First it must so destabilize the governments ofthe world real development program. Of course, Brandt came out as to push the world economy to the brink and force fo r nothing of the kind. The Brandt report, denouncing change. Second, it must then gain control of the interna­ "advanced technologies that deny human values," pro­ tional institutional means that propose and bring about poses "appropriate technologies" like sticks, cowdung such change. and windmills, and "One World Government" empow­ Let it be said at the outset that the Brandt Commis­ ered to enforce and regulate the growth rates that would sion's program is, apart from sweetened rhetoric, indis­ result-which is none at all. tinguishable from the programs of the International The Brandt Commission, however, did offer a sweet­ Monetary Fund and World Bank because the Brandt ener, by purporting "opposition to the conditionalities Commission itself is indistinguishable fr om the Interna­ policy of the International Monetary Fund." That is the tional Monetary Fund and World Bank. It was, after all, essential in the Brandt Commission's role-to capture World Bank president Robert McNamara who ordered Third World governments fo r the IMF-World Bank Brandt to create the commission in late 1977, when it economic policy that the IMF and World Bank them­ became apparent that the World Bank-IMF program selves are politically unable to put across. Enough desper­ wouldn't wash in the Third World in the form that the ate Third World leaders have fallen for the ploy to keep World Bank and IMF were compelled to present it. Brandt and Mr. Peterson's tactic very much alive-and In particular, at the point McNamara set Brandt's please Robert McNamara and the IMF no end. commission up, the "North-South Dialogue" in Paris The Brandt Commission's major concern at the mo-

8 Economics EIR June 3, 1980 ment is the control of new margins of liquidity intro­ Minister and warhawk Gen. Ariel Sharon. "I had a little duced into the world's banking system. The central dinner party fo r Sharon, with George Ball and others at question: who will control the OPEC surplus, estimated my place," reported Peterson. "But after listening to him to be $120 billion this year, and toward what end? for an hour with all those crazy Biblical references, I Currently, the European Monetary System of French couldn't take it. Israel's security needs are real, but not President Giscard d'Estaing and West German Chancel­ the way Sharon presents them. They're too much. My lor Helmut Schmidt has had increased access to the Jewish friends at my firm feel the same way." OPEC surplus by virtue of increased deposits of OPEC Sharon, Begin, et. al must be replaced with a more funds into the German and French banking systems. moderate Israeli government fo r strict financial reasons. These fu nds are then redeployed into high-technology "An Israeli government that will work toward a Palestiil- . Third World industrialization. ian state is not only politically important, but is impor­ To stop that strategy, Peterson and the Brandt Com­ tant financially and monetarily. Without a Palestinian mission have launched a stratagem to both induce and state, we are not going to get the Arabs to give any blackmail the OPEC nations to stop their flow ofcredit money to petrodollar recycling and that's the most im­ to continental Europe and instead place those funds into portant financial question in the world today." The some international recycling mechanism that (either di­ Camp David Treaty Peterson dismissed as an obstruc­ rectly or discreetly) will be under the control of the tion. International Monetary Fund and World Bank. Thus, while the Brandt Commission stresses the "attractive­ The guts of the ness" of such a new facility, claiming that it will "liber­ Brandt Commission alize" (lessen) the genocidal conditionalities ofthe Inter­ Peterson discloses much of the rhetoric ofthe Brandt national Monetary Fund, in private, such leaders of the Commission's official documents to be so much excess Brandt Commission as Peterson insist on something baggage. Peterson is, in fact, prepared to throw over­ quite different. board most of the proposals of the Brandt Commission . In an internal memorandum on the Brandt Commis­ to take the OPEC fu nds into the controlling sphere of the sion circulated by Peterson in April to Lehman Brothers' IMF and City of London. "We should soon call an clients and excerpted below, Peterson states: international concordat meeting, involving the West, "Thus, we can no longer avoid the issue: how much OPEC nations and the LDCs [lesser developed coun­ genuine adjustment to reduce the deficit and how much tries]. At this meeting we'll propose several concretes financingto fund the deficit?" (emphasis in original). about oil-dollar recycling. But as I've told my friends at The answer, Peterson says, involves severe, outright the Brandt Commission, as well as Bob McNamara and austerity: Kurt Waldheim, we must make sure that the recycling is "It is widely and wisely said that the developing the only item on the agenda. Take the discussion about countries will have to make 'adjustments' in their econ­ SDKs [the IMF's Special Drawing Rights], about com­ omies [a euphemism for a further reduction in their modity funds and what not, ·and keep them off the already low standard of living] by reducing their imports agenda. Don't clutter up the agenda with this stuff, or significantly. In suggesting this, we of course realize that nothing will get discussed." such reductions will be painful not merely to them, but While throwing out its various programs, Peterson also to the industrialized nations, for developing country and the Brandt Commission hold in the background the imports are increasingly developed country exports" (em­ ultimate weapop. of war and destabilization. Not only phasis in original). does Peterson think it necessary to take the Middle East "to the brink," but he proposes to use that threat to force Getting the Brandt Commission proposals through the U.S. Con­ big potato gress and the U.S. presidency. Peterson gloated: "I'm Peterson recognizes, therefore, that to sell this strat­ not new to this game, and I realize the difficulty we'll egy to the OPEC nations he must accomplish two tasks: have in getting these views accepted. But I'll tell you put forward a "realistic" and attractive proposal fo r their what I think could happen. All that is needed is a handful funds, and then blackmail them with war. of advisers around the new President ofthe United States The problem of selling the strategy, as the Brandt who replaces Carter. A crisis or set of crises concerning . Commission sees it, is the intransigence and st.upidity of debt maturities and what have you develops and grows. the Israeli government of Menachim Begin, which, by The advisers tell the President that either he responds to refusing to discuss the creation of a Palestinian state, is the conflagration with the sorts of proposals we have for blocking financial collaboration with the Arab world, reform in the Brandt Commission or else, within one­ which holds a great deal of the wealth. and-a-half to two years, his presidency will go up in Exemplary of this problem is Israel's Agriculture flames."

ElK June 3, 1980 Economics 9 Gold by Alice Roth

Europe sets a floor under the price Even without the central banks' Gold didn't suffer too much from the new col/apse in silver­ support, the West German banks after rumors of a new Fed attack on the Hunt brothers. have plenty of financial muscle with which to sustain a high gold price. During 1979, West Ger­ many's number two bank, the Dresdner Bank, emerged as the world's leading gold trader, over­ shadowing even the Swiss banks. The Bundesbank recently pub­ Western European central loan negotiations between a group lished some figures on the West banks may have an informal agree­ of banks and the Hunts had fallen German banks' gold business ment to support .the gold price through. The rumor-apparently which served to underscore the whenever it falls below $500 an wholly fallacious-began with the growing hegemony of German ounce, according to New York seemingly casual remark of Fed­ banking in the world market. The market sources. The existence of eral Reserve chairman Paul Volck­ Bundesbank reported that the this secret agreement could explain er on May 21 that the negotiations banks' total involvement in the the recent unusual stability in the had not yet been completed. Some world gold trade, including gold gold market in the face of defla­ traders speculated that the Hunts bought abroad for foreign cus­ tionary pressures in the U.S. econ­ might be forced to liquidate their tomers, jumped from 15 billion omy and continued fallout from silver holdings more quickly as a DM to a whopping 24 billion DM the Hunt silver collapse last result of a delay in or complete (about $13.3 billion) in 1979. month. absence of bank financing. By the Arab sheiks are not the only It could also be a prelude to a morning of May 22, the spot silver ones who have come knocking on major monetary initiative by price had plummeted to $10.80 an the doors of the Dresdner and French President Valery Giscard ounce, down from $11.70 at the Deutsche banks in search of a d'Estaing at the late June econom­ close on May 20. The bearish at­ "hard" currency. Private citizens ic summit of leading Western mosphere in the silver market also in West Germany have accumulat­ heads of state. Giscard is expected pulled down gold, which at one ed a substantial hoard. The Bun­ to propose a fa r-reaching reform point fell to $494. desbank estimates that private. of the international monetary sys­ This downward pressure on holdings of gold coins in the coun­ tem, possibly including gold re­ gold was immediately countered try amount to 1,000 tons with a monetization and the harnessing by what one source described as market worth of 28 billion DM. of gold-backed liquidity for Third "very aggressive demand" on the This represents about 2 percent of World industrialization. part of West German and other the total financial assets of private "There's been a tug of war in large private European banks, with individuals in the Federal Repub­ the gold market during the last few much of the purchases believed to lic. weeks," one trader observed. "One be on behalf of Middle Eastern The value of gold imports into group, which includes Middle customers. The gold price imme­ West Germany has quadrupled Eastern interests, private European diately rebounded to $515, drag­ since 1973 from 900 million DM banks, and some European central ging silver back up in its wake. to 3.5 billion DM ($6.3 billion), banks, buys whenever the price "It's obvious that the European accounting in part for the sharp dips under $500. The other group banks have a substantial stake in . decline in the country's trade sur­ sells as soon as it reaches $530." gold at $500, commented a trad­ plus. Should Chancellor Schmidt The battle in the gold market­ er at a leading New York com­ decide to join Giscard in a call fo r and the superior strength of the modity firm. "It could very well be a return to some form of gold "bullish" European forces-be­ that the central banks are also standard, he would certainly not came highly evident on May 22, committed to supporting gold at lack a constituency for this step when a rumor was floated that the this level," he added. within his own country.

10 Economics EIR June 3, 1980 The dollar in deutschemarks Can the American ,.\\ 'IJrk lal. afternoon fixing _.__ . economyrecover? 1.95 .A , 1.90 A series of seminars on 1.85 1,...1\ ...

...... ,. , the LaRouche-Riemann 1.80 '"'- .A - .....",.10"'"- Economic Analysis 1.75 4/'1.. 4/9 4/16 4/23 4/30 5j7 5/14 5/21 sponsored by the Executive Intelligence Review The dollar in yen and the Fusion Energy Foundation. New York late afternoon fixing Treasury Secretary Miller recently asserted that 260 "all economists have been wrong. I think we have to recognize that there isn't an econometric 250 /\ - model of any type that has been able to predict IV what has happened." 240 --"\.. .A � MR. MILLER IS WRONG 230 '-""" '" � I'- The LaRouche-Riemann economic model is the 220 only econometric model to forecast with accu­ 4/2 4/9 4/16 4/23 4/30 5/7 5/14 5/21 racy the impact of the Carter administration's "anti-inflation" poliCies.

The dollar in Swiss francs New York late afternoon fixing

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2.20 ..r """"'" 2.15 r For more information about seminars planned " for your area, contact: 2.10 Leif Johnson, EIR. 304 W. 58 St., 4/2 4/9 4/16 4/23 4/30 5/7 5/14 5/21 New York, N.Y. 10019 or call (212) 247-8820

EIR June 3, 1980 Economics 11 WorldTrade by Richard Schulman

Carter's impact in just six months new armored tanks; Italy is sup­ Two embargos from the u.s. government have both changed plying Iraq with naval ships in re­ the volume and changed the nature of world trade patterns in turn for oil; and The Netherlands the first halfof this year. is negotiating to purchase up to $1 billion in fighter jets from the U.S. Thanks to the Carter admini­ stration's "encircle the Soviets" W orId trade has deteriorated in European countries, as Saudi Ara­ policy, China has received a $1.3 the six months since the Nov. 4 bia is now doing for West Ger­ billion steel mill from Japan's Mit­ terrorist seizure of the U.S. Em­ many. Even here, however, the em­ subishi and a $254 million steel bassy in Teheran and the Soviet phasis is on narrow energy-related plant from West Germany; $600 incursion into Afghanistan. development or military purchases. million in tractor supplies fr om Italy; $1-1.5 billion aluminum • Exports from the advanced Major Saudi purchases and sector to the underdeveloped sec­ agreements during the past half smelter fr om a Western consor­ tor have collapsed, with the excep­ year include: Mobil's joint con­ tium; and a $600 million multipro­ tion of OPEC, India and one or struction and operation of a $1.6 ject venture with Austria. There is two other countries; billion ethylene plant; the purchase a fe ar that much other, military­ related trade is occuring unre­ • Anglo-American trade with of a $1.1 billion polyethylene plant the Soviet Union has plunged; from Exxon; construction with ported. Meanwhile, the anti-Soviet pol­ • War-hungry China has been Royal Dutch Shell of a $1 billion importing significant capital goods naval order with France and $300 icy has cost the United States $25 from all industrialized countries; million in military construction or­ billion in lost exports, featuring cancellation of a $20 billion long­ • Nuclear exports are minimal, ders with a South Korean concern. Another exception has been In­ term Occidental Petroleum deal with the U.S. almost ent-irely out of the picture; dia, nailing down an aluminum with the U.S.S.R. as well as the smelter to be supplied by France's grain embargo. The West Ger­ • An estimated $30 billion in Pechiney and paid for in surplus mans and Japanese have tentative­ cancelled trade deals has resulted output; $176 million in steam gen­ ly gone ahead with their own mul­ from Jimmy Carter's two boy­ erators from West Germany; and tibillion dollar pipeline sales to the cotts-Iran and the U.S.S.R. a steel plant now in negotiation Soviets, and Italy has not cancelled The exports of capital goods with a consortium led by British its $2.5 billion "Togliattigrad II" to the underdeveloped sector has Steel Corporation. India's fortun­ project or $1.7 billion chemical­ virtually ceased in the past six ate position is largely a product of plant agreement. The French still months. This is principally a result Western fears that without such intend to supply the Soviets with of the imposition of credit restric­ succour, Indira Gandhi's govern­ $110 million in deep-water oil drill­ tions by Federal Reserve chairman ment will move toward the Soviet ing equipment. Carter's Iran em­ Volcker and his international al­ Union, a reliable supplier of capi­ bargo, on the other hand, threat­ lies. Third World project loans tal goods, at least. No other mo­ ens Italy with a loss of up to $3 have either been simply withheld 'tivation was involved in the U.S. billion in planned construction (the majority of cases) or can­ State Department's lifting of its projects there. celled-as a Dutch company can­ ban on uranium shipments fo r In­ Meanwhile, Poland is purchas­ celled a harbor development proj­ dia's nuclear program. ing $275 million in machine tools ect in Morocco on the pretext of In military trade, in addition to from West Germany and East and Polisario guerrilla activity. Saudi purchases, Canada has pur­ West Germany have inked an The exceptions are the OPEC chased $2.5 billion in fighterplan es agreement for a $270 million co­ nations, who have the wherewithall from the U.S.; the French and operative effort to improve rail­ to continue imports even as they West Germans have agreed to road infrastructure in the Berlin finance payments deficits in some jointly build $10 billion worth of area.

12 Economics EIR June 3, 1980 TradeReview

NEW DEALS

Cost Principals Project/Nature of Deal Financing Comment

($) Over China fr om Chugai Ro Kogyo Ltd., a Japanese Winning bid $20 mn. V.S./Japan affiliate of Midland-Ross Corp. announced (Cleveland, Ohio) will supply three walking-beam reheat furnaces for a new steel mill in Paoshan. ($) 10.4 Mexico from V.S. GTE will provide and install for Petro­ mn. leox Mexicanos (state-owned) a micro­ wave communication system to serve a natural gas pipeline route extending almost the entire length of Mexico's East Coast. ($) Over 9 Thailand from V.S. C-E Natco. a Tulsa-based subsidiary Contract mn. of Combustion Engineering, Inc. will awarded design and fabricate gas production equipment for installation in Gulf of Thailand offshore fields. Argentina/Brazil A series of economic, political, scien­ Agreements tific, and technological cooperation signed May agreements under which Brazil's nu­ 17th clear equipment company Nuclep will build the core vessel for a 600 mega­ watt power plant to be constructed in Argentina under a contract with West Germany; the electric power systems of the Parana River will be integrated; hydroelectric stations and canals will be jointly constructed on the upper Vruguay River as will be an interna­ tional bridge over the Iguassu River. Spain/Morocco 15.5 mile bridge linking Morocco and At consultative Spain at the Straits of Gibraltar. A stage. dam would be built and over it a road and railway. People's Republic of Computers, air defense radar, and Approval China fr om V.S. other advanced military equipment. expected during end of May visit of Chinese Deputy Premier Geng Biao to Washington

Update

Mexico /France Nuclear research cooperation agree­ Signed ment and exploration for uranium. 3.2 bn. Iran from Japan Mitsui and Iran have come to an Agreement agreement for the completion of the concluded 85 percent completed Bandar Kho­ following East meini petrochemical project, owned 50 Bloc offer to percent by a Mitsui-led consortium, 50 complete percent by the National Petrochemical proJect. Company of Iran

EIR June 3, 1980 Economics 13 CorporateStrategy by Leif Johnson

International Harvester's saboteur By April, as Fortune reported, Archie McCardell's profit drive has cost the company, and he was widely considered to have gone off the deep end. the Midwest, plenty. He meant it to. But, as a director of the Chi­ cago Council on Foreign Rela­ tions, of Amex and Amex Inter­ national Bank, and a Xerox oper­ ative, McCardell was simply car­ rying out an industrial sabotage operation. In 1977, Archie McCardell be­ in Chrysler's position, at the mercy The bankruptcy of IH subsidi­ came chairman and chief executive of its creditors and the "industrial ary Wisconsin Steel exemplifiesthe officer of International Harvester, restructuring" crew. point. the giant manufacturer of farm McCardell has forced Harvest­ In 1977, Harvester decided to equipment, construction machin­ er to turn to large infusions of sell the decrepit plant instead of ery, components, trucks (and now expensive, short-term credit, bal­ investing in the $100 million need­ solar turbines). He declared a new looning its debt-equity ratio. And ed to modernize the facility or cov­ high-profit regime. it has reduced its capital expendi­ ering $30 million in pension obli­ This month, Harvester declared ture program by one-third. This gations. a loss of nearly half a billion dol­ situation was achieved by Mc­ The only buyer it fo und was a lars for the two quarters ending Cardell's "cost-cutting spree. " little consultant firm called Envi­ April 30. Archie came to Harvester from rodyne, which got Federal Eco­ Did Archie McCardell miscal­ Xerox in 1977, where he was nomic Development Agency guar­ culate? He had come to Harvester known as "a tiger on costs." His antees on 90 percent of the Chase from Xerox, which' is secondarily arrival coincided with pressure on Manhattan loans that funded the a manufacturer and primarily a Harvester, John Deere, and Cat­ purchase, while Harvester guar­ center for funding and directing erpillar to stop seeking expansion anteed 10 percent and retained programs to brainwash American of sales volume, and concentrate liens on Wisconsin Steel coal and businessmen away from corporate on returns on sales and paper prof­ iron holdings. strategies of industrial growth. We its. McCardell began an "efficien­ The deal wasn't clinched until doubt if he miscalculated. cy and discipline" campaign that November 1979, when Harvester Within two years, McCardell primed the United Auto Workers had known for months there would has jeopardized the viability of one for the strike, while launching a be a strike. The strike collapsed of America's most important cap­ purge and bringing in executives Wisconsin Steel, 40 percent of ital goods producers. fr om Xerox and Ford (where he whose business depended on Har­ • He forced a strike that ended had earlier trained as a Robert vester. last month after idling 35,000 McNamara-style finance man). Harvester proceeded to line up UAW workers for 172 days. He began contract negotiations other steel suppliers and fo reclosed • He put hundreds of Midwest last August by announcing that on Wisconsin Steel's coal and iron, suppliers on the edge. there would be a strike. Then he goading Chase in turn to force the • He bankrupted Chicago's managed to draw the strike out for steel firm to declare bankruptcy Wisconsin Steel. five and a half months, refusing to March 31. Harvester has written • He has also supported Fed­ "get practical" with the union on off $27.7 million on the deal to eral Reserve Chairman Volcker's the relatively secondary work rule date, while Chicago area labor and credit strangulation, which is wip­ issues involved, while making well­ politicians scramble to retrieve ing out his farm and construction timed provocations on the main 3,500 steel jobs- and may even customers. issue, his threats to increase the fall for a "workers ownership" Is this a high-profit strategy? company's non-union employ­ scheme, according to union Or a strategy for putting Harvester ment. sources.

14 Economics EIR June 3, 1980 generated electric power is the fact that MHO is an Science&Technology environmentally excellent system. Combustion is com­ plete, reducing particulate emissions from the system by more than 90 percent. Potassium used in the combustion process to increase electrical conductivity chemically bonds with the sulfur in the coal, reducing sulfur dioxide emissions by 99 percent and eliminating the need for costly stack gas scrubbers. It has been found that the sharp 2,000 degree drop in temperature from the inlet to the outlet of the MHD channel decomposes nitrogen oxides, another polluting emission. MHO systems can also greatly reduce the heat a power system releases into MHD makes fossil the atmosphere by, for example, directing the exit gas into a steam cycle. fuels efficient The basic open cycle coal-fired MHO generator sys­ tem that uses exhaust heat for the steam turbine bottom­ ing cycle has three major systems: the fuel combustion by Marsha Freeman unit, the MHO generator and the bottoming cycle. The last is already operating technology; the challenge in the Taking coal, partially ionizing it in the process of burn­ MHO system has been designing new components for ing it at high temperatures, and passing this ionized fluid the generator. across the lines of force of a magnetic field will produce an electrical current. This is the area in development of Briefly, design and experimentation is ongoing in the magneto hydrodynamic technologies that has received following: the most attention and has the most immediate large­ • Electrode designs to maximize power output from scale potential. the complex interaction of the magnetic fieldand electri­ Compared to conventional steam turbine cycles, cal field configurations in the MHO channel. Here the MHO requires higher temperatures and, at higher tem­ problem is to mitigate the effects of the electrical field peratures, more electric power can be extracted from the that is generated when the current-carrying MHO fluid fuel. MHO combustion temperatures range from 4,000 is placed in a magnetic field so that the electrodes which to 5,000 degrees Fahrenheit; the upper limit for steam draw off the current are not shorted out. Another prob­ generators is about 1,800 degrees because of material lem is to develop electrodes that can withstand both the constraints and the stress of rotating huge pieces of temperature and corrosive environment of the hot coal machinery. The exit gas from an MHO generator drops gas. Work on electrode development is ongoing at Gen- about 2,000 degrees from the inlet temperature, creating . eral Electric, Reynolds Metals, Westinghouse, the Mas­ a larger temperature differential and therefore a more sachusetts Institute of Technology and Avco. efficient conversion system. The exit gas is also at low • Combustion temperatures. This is the major deter­ enough temperatures to allow its transfer into a steam minant of the electrical conductivity of the gaseous work­ turbine cycle. ing fluid. This temperature can be increased by preheat­ In terms of fuel consumption, first generation MHO ing the air used in combustion. There are three methods: coal fired plants are expected to achieve a cycle efficiency independent burning of a clear fuel to provide heat; of 48 to 52 percent (compared to steam cycle efficiencyof direct use of MHO exhaust gas recycled back into the 35 to 40). Second generation plants are expected to combustion chamber; or use of the MHO hot exit gas convert up to 70 percent of the thermal energy in the through a heat exchanger system. combusted coal to electric power. Put another way, the • Magnetic field strength. Conventional water­ MHO conversion system would extract twice or more cooled magnet systems cannot exceed field strengths of electric power from each unit of fuel than present tech­ more than about 3 tesla or 30,000 gauss. A baseload nology. Therefore, although some of the components of MHO power plant will require magnets in the range of 5 an MHO system would be more expensive than off-the­ to 7 tesla. To provide such field strengths without the shelf steam turbines, the fuel cost would be about half. A magnet needing more power than the plant produces will 1978 projection has placed the cost of delivered power require superconducting magnets-like the one used on from an MHO system near 32 mills per kilowatt-hour the ETL Mark V MHD generator in Japan. Develop­ compared to 45 mills for a conventional plant with the ment and fabrication of these magnets is ongoing at same capacity. Argonne National Laboratory, General Electric, MIT, Another factor that would lower the cost of MHO and Stanford University.

EIR June 3, 1980 Economics 15 Business Briefs

himself a fo rmer ITT man (1943-1959), tries to stage a recovery in the months Corporations who came directly fr om ITT to City ahead. Auto and construction together Investment Company through the lat­ account for about a third of domestic ITT spin-off bids for ter's affiliate, the Kellogg Company of carbon steel shipments. Citibank's Dope, Inc. Battle Creek, Michigan. U.S. Steel has closed down blast Another member of the City Invest­ furnaces in Fairfield, Alabama, Gary, spin-off ing Company management team is its Indiana, South Chicago and Pittsburgh. president Peter C. Huang. Huang is also Republic Steel has shut down two of its The intelligence apparatus of I.T.T. has president of the Home Insurance Co. II furnaces. National Steel has closed just announced its intention to acquire Prior to coming to City Investing Com­ three of ten furnaces. The worst hit area Citibank's Dope, Inc. spin-off, the City pany, Mr. Huang was with Boise Cas­ of the country-apart from depressed Investing Company. cade Company, a: wood and paper-based steel towns of long-standing like City Investing Company is a holding conglomerate which is the principal U.S. Youngstown, Ohio-is District 31, en­ company for various real estate, motel, holder of bonded debt expropriated by compassing Gary and South Chicago. insurance, and manufacturing interests. the Chinese Communist government According to district leader James Bal­ Although New York-headquartered, it after 1949 and now due to be settled as anoff, some 8,000 out of 40,000 United is heavily oriented to the U.S. narcotics part of Carter-Peking arrangements. Steel Workers members are now out of port-of-entry, Miami. A major stock­ The debt which Boise Cascade holds, work in his district. holder in City Investing Company is interestingly enough, is in the Shanghai The shutting down of a blast furnace Victor Posner, the Miami real estate Power and Light Company, the noto­ is an expensve and risky business, espe­ tycoon. rious funder of Shanghai's Green Gang, cially with old furnaces that are suscep­ The company is a spin-off of First which ran China's illegal opil.lmtrade­ tible to cracking. Thus, the recent deci­ National City Bank (now Citicorp). Ci­ in its day, the largest in the world. sions were taken in preparation for a tibank Senior Vice President Eben Pyne, prolonged downturn in the industry. active in the U.S.-East Asian narcotics U.S. Steel, which has long pursued trade, sits on the board of directors of Industry a strategy of hedging its bets and diver­ both the City Investing Company and sifying out of steel production, i's cur­ its affiliate, the Home Insurance Com­ Steel industry rolls rently renting out vacant office space in pany. its Pittsburgh headquarters to pull in Besides Pyne, two other City Invest­ over and dies extra cash, according to rumors. ing Company officers, Edward P. Sher­ idan and John J.C. Herndon, came to "We're digging in for a sustained low City Investing Company from Citibank. order rate," U.S. Steel Chairman David Capital Sp ending The company bidding to take over Roderick told reporters at the annual City Investing Company is Tamco, a convention of the American Iron and West German investment billion-dollar mystery company headed Steel Institute in New York May 21-22. by Lyman C. Hamilton, president of Roderick predicted that the industry's on the rise ITT until very recently. Hamilton owns operating rate would drop to 60 to 65 Tamco jointly with Victor H. Goulet, a percent of capacity over the next three The latest monthly report of the West wealthy Chicago real estate operator. months, from a current low of 70 per­ German Bundesbank announces that in Since Hamilton's basis of ownership of cent. U.S. Steel, the industry leader, 1979 gross business investment in the a billion-dollar-plus company can hard­ recently shut down six of its blast fur­ Federal Republic including all plant and ly be his former ITT executive salary, naces, and is already . operating at 60 equipment and inventory expansion, his connection with ITT or its financiers percent of its usable capacity. rose by $26 billion. Non-inventory in­ such as Lazard Freres and Lehman Other industry executives predicted vestment accounted fo r $12 billion of Bros. Kuhn Loeb is presumably a con­ that steel shipments for the year could the increase. The central bank chooses tinuing one. drop to as low as 80 million tons, a to see this as a problem insofar as it Hamilton, in making his bid for City twenty percent drop from 1979. Most occurred through increased borrowing Investing Company, stated that he ominous of all, no executives were pre­ abroad, which contributed to West Ger­ wished to keep City Investment Com­ dicting any upturn in sales for the fore­ many's current accounts deficit; and pany's entire management team, includ­ seeable future, because none of them they add that the inventory increase ing chairman George Scharffe nberger, expect the auto or construction indus- reflects fear of price increases for raw

16 Economics EIR June 3, 1980 Briefly

• MARGARET THATCHER saw British inflation rise to 21.8 percent in April, a jump of 3.4 materials and oil and semifinished producers to sell out for whatever cash percent from March and double goods. they can get. Recent surveys by the the rate twelve months ago, ac­ New foreign orders for West Ger­ Chicago Federal Reserve Bank, the cording to the latest retail price man industry in the first two months Northwestern National Bank of Min­ index. It was reported May 19 of 1980 have risen 8.5 percent above neapolis and others show no let-up in that increased property taxes, November-December and 12.5 percent either loan demand or banks' loan-de­ rents, and government increases !lbove January-February 1979 seasonal­ posit ratios, and emphasize that banks in the price of gasoline, drinks ly adjusted. Overall, new orders were up are continuing a tight-fisted policy to­ and cigarettes were the leading 4 percent, or 8 percent higher than the ward the fa rm sector. factors. The Thatcher government same period of the previous year. Ex­ The bubble could burst any moment. is committed to an economic pol­ ports showed a 25 percent increase over Producers cannot afford to hold com­ icy of budget cuts, tax increases, 1979, and the merc handise balance modities back for a decent price at fi­ reductions in real wages, and remained in surplus, although because nancing charges nearly doubled from other "free enterprise" measures. imported jumped 36 percent, it was 3.5 last year. Continued farm price drops billion marks lower than 1979's at .8 will completely undermine land prices. billion marks. • CHARLES PARTEE, a mem­ ber of the Federal Reserve Board, Agriculture Dairy told the Senate Banking Commit­ tee last week that the number of Watch farm land prices Fighting inflation "problem banks" was "well be­ low" the level of the mid-1 970s in Wisconsin and at an "acceptable" level. The wind has been taken out of the sails "Recent data on the condition of of soaring land prices over the past six Alfred "Genghis" Kahn, President commercial banks indicate that months, various reports indicate. But Carter's chief economic advisor, trav­ the banking system has worked for the moment the market is virtually eled to the state of Wisconsin this past out most of its problems of the frozen, buyers comfortably sitting it out week to announce the administration's mid-1 970s and is in generally fo r the duration. The average value of determination to fight inflation. By in­ good shape," Partee reported. farm real estate rose 200 percent be­ flation, he made perfectly clear, Kahn EIR was unable to learn which tween 1970 and 1979. In the year ended meant milk price supports, set at 80 nation's banks Partee was discuss­ February I, the Agriculture Department percent of parity. Kahn, who is the key ing at the time. estimates the gain was 14 percent. executive-level initiator of the effort to The slowdown in land prices is in­ dismantle the federal milk marketing dicated in reports from across the farm system by deregulating the price . of re­ • PHILIP KLUTZNICK, U.S. belt that banks and auctioneers have constituted milk, received an honorary Commerce Secretary, recently actually called offfarm sales for lack of degree fr om Ripon College after making told a group of businessmen that "satisfactory" bids. At a public auction the speech. because he has lived through six in Illinois a high-bid of $2400 per acre Observors noted that Mr. Kahn's recessions and the 1930s Depres­ was refused for land that would have performance is a good example of the sion, he has the right to point out gotten a $3,000 minimum bid in mid- unique mixture of evil and plain stupid­ that small decisions made by cor­ 1979. In some areas farm land sales are ity in the Carter administration. Ripon porations will determine the down 50 percent from a year ago. is situated in the center of some of the length and severity of the current According to the Doane Agricultur­ state's most efficient dairy-farming. slump. "But somehow," he · said al Services of St. Louis, the only kind of In defiance of the Administration's later, "neither that observation transactions taking place are seller-fi­ policy of "controlled disintegration" of nor my words of encouragement nanced at 9 to lO percent interest. Other the economy, the dairy industry is still at the end overcame even momen­ sources reportthe sharpest slump to be relatively intact, especially compared to tarily the group's desire to chal­ in livestock-oriented land. other agricultural sectors. But knowl­ lenge the administration's poli­ If the financial squeeze of scarce and edgeable Wisconsin sources indicate cies. " high-priced money together with col­ that with a continuation of present eco­ lapsing farm prices and income contin­ nomic-busting policies, dairy will be hit­ ues, there will be increasing pressure on ting the skids by October.

ElK June 3, 1980 Economics 17 TIillSpecialReport

Abscam/Brilab attacks progress and u.s. labor

by ScottThompson

Since last February there has been a constant drumbeat of press, TV and radio leaks from the Justice Department's new undercover operations that implicate some of the nation's top political and labor leaders in major corruption scandals. With exotic names like Abscam, Brilab, Pendorf, these cadillac models of the more than 50 "sting" operations the Justice De­ partment claims to now have underway, promise to reveal the inner­ workings of machines that link organized crime, violence, and the most greedy unionists to politicians. Adding to the drama are tales of the mansions, yachts, mysterious sheiks and champagne dinners that sketch out the Justice Department's plots to catch these "Mr. Bigs" in wrongdo­ ing. Abscam, Brilab, Pendorf do constitute a scandal of unprecedented proportions, but this scandal has little to do with the trial-by-press that has been used to condemn "sting" victims without due process. The real scandal of Abscam is that, under Attorney General Benjamin Civiletti, the Justice Department has been turned into a domestic "dirty tricks" arm of political warfare against those labor-based, urban machines that are fundamentally committed to an ever-expanding economy through indus­ trial progress. To crush these machines, Civiletti has assembled a team of swindlers, assassins, and international dope pushers, who have been let loose against labor and industry in the name of combatting "white collar crime." In this, Civiletti is merely following orders from the Trilateral Com­ mission-an international body of 300 powerful public figures-which rigged the 1976 election of its member, President Jimmy Carter. As the Trilateral Commission mounts super-Watergate operations against poten­ tial opponents to pave the way for austerity economic conditions, waiting in the wings is the Federal Emergency Management Agency (FEMA)

18 Special Report EIR June 3, 1980 Photo: NSIPS

which is prepared to step in with emergency powers Justice Department"dirty tricks" designed to break once opposition has been weakened in this manner. down resistance to these policies, it is important to know Presidential Review Memorandum 32 (PRM-32), what the future will look like under the Trilateral Com­ which set FEMA into operation, was drafted in 1979 by mission's planned FEMA dictatorship. Samuel Huntington, a former Trilateral Commission Once FEMA declares a national emergency, "peace­ member who retired to join the National Security Coun­ time" or otherwise, a new Cabinet-level Office of Defense cil with ex-Trilat chairman, Zbigniew Brzezinski. Resources will be established to "reorganize all resources Huntington, one of the outspoken planners of the in the V.S. economy: natural resources, industrial re­ Trilateral Commission, announced in a 1975 study for sources, manpower resources, transport resources." the Commission entitled, Th e Crisis of Democracy, that: What this means in practice is that under FEMA's "We have come to recognize that there are potentially National Labor Mobilization Subplan, a "Standby desirable limits to economic growth. Th ere are also poten­ Committee" will be called upon to rubberstamp a labor tially desirable limits to the indefinite extension of political policy which precisely parallels the Labor Front policy democracy. " of Nazi Finance Minister Hjalmar Schacht. FEMA, which will become the V .S. government with William McLaughlin, Emergency Coordinator for fu ll dictatorial powers once any of several Reichstag FEMA in the Department of Labor, told EIR recently Fire-type "emergencies" prepared by the Trilateralists' how FEMA's "Standby Committee" will oversee a pro­ are triggered, is the Commission's vehicle to eliminate gram of "retraining, certification and relocation:" political democracy. It is FEMA in tandem with Federal • Retraining: "We will use the Comprehensive Em­ Reserve chairman Paul Volcker that will also implement ployee Training Act (CEfA) programs nationally to final phases of the "controlled disintegration" economic retrain the workforce on an emergency basis. This will be policy that was announced by the Trilateral Commis­ controlled by FEMA and the Labor Department sion's sister body, the Council on Foreign Relations, in a through the regional and state offices of the DoL which 30-volume report entitled " 1980s Project." Released this now run CETA on a national priorities basis." spring, the report states: "A degree of controlled disinte­ • Certification: "We will also control the certification gration in the world economy is a legitimate objective fo r of workers. That is, a worker will not be able to leave his

the 1980s ... " job, nor an employer to hire new labor, without complying Before taking a detailed look at Abscam and other with FEMA/DoL certification. This will be coordinated

EIR June 3, 1980 Special Report 19 by FEMA, establishing policy on the national level as to it is enacted by Congress. Thus the Teamsters, who were which geographical and industrial areas need which the motive force behind an integrated transportation kinds of skilled labor . ... Workers wishing to switch jobs, grid in their battle for a national Master Freight Con­ or employers wishing to hire new labor, would then have to tract, are also among the most aggressive protectors of be certifiedthat they were acting in coherence with national their industrial allies' interests. priorities before they would be able to do so. " To pave the way for FEMA, an escalating series of

• Relocation: "This is a problem. We must induce attacks are planned by the Justice Department and other people to relocate. The easiest thing is, first, to impose an government agencies. Once the national leadership of across the board wage/price freeze severely throughout key trade unions have been "softened-up" by the Gesta­ the economy, and then selectively lift the freeze-or po tactics employed in "stings" like Abscam, a series of perhaps the reduction-on labor wages in target indus­ hearings are planned by Sen. Sam Nunn's Senate Per­ tries and target geographical areas." manent Investigations Subcommittee (SPIS) to "mop­ While many of the jackboot features of the Hitler up" any remaining resistance by the close of 1980. regime are as yet missing, this FEMA program is in no SPIS staff director William Goodwin informed EIR essential way differentfrom the Nazi Labor Front policy in a recent interview how the DoJ's "sting" operations of work books and box cars. FEMA's certificationpow­ will fuel the hearings: "Brilab will give credibility to the ers, for example, precisely parallel those Hitler gave to charges that parts of organized labor are in fact run by the Employment Service Board in Germany in 1938 to organized crime. '" The FBI will produce some indict­ oversee the conscription and allocation of all labor on a ments. They will scare some people. Then Congress will "national security," priorities basis. come in and 'mop things up'. We intend to break the power of the Teamsters and the ILA all over the country." Targeting the labor-industry alliance Following sensationalist hearings on "organized The main bulwark against this planned FEMA dic­ tatorship is the alliance of labor and industry that built this country under the American system of progress and "Huntington, one of the outspoken technological development. Included in this set of rela­ planners of the Trilateral Commission, tionships are labor leaders, business entrepreneurs, heads announced in a 1975 study fo r the of ethnic groups, and political powerbrokers who have formed machines to run America's cities and foster a Commission entitled The Crisis of climate for growth. Nuclear power, a national transpor­ Democracy, that: 'We have come to tation grid second to none, a heavy construction industry recognize that there are potentially that can build anything, anywhere, are among the fruits desirable limits to economic growth. of these labor-industry combinations. There are also potentially desirable It is the national leaders of this system that have been limits to the indefinite extension of targeted by the major "sting" operations, while literally hundreds of investigations that involve over 1,100FBI political democracy ' .... FEMA is the agents and all 13 of the Justice Department's Organized arm of the Trilateral Commission that Crime Strike Forces are being conducted against region­ will impose the limits on political al machine leaders. Special targets on both the local and democracy and a zero-growth national level are the International Longshoremens As­ economy. " sociation (ILA), the International Laborers Union (ILU), and the International Brotherhood of Teamsters (lBT). It is these trade unions which form the core of the crime and violence" which began on April 28th, Good­ labor-industry relationship by providing the money, win states that the Subcommittee "will move slowly and manpower, and nationwide communications that allow deliberately ... It will not go public until the time is right, machines in particular cities to coordinate with each until we will have the most impact." other. According to Mike Levin, a former member of the These unions are also the frontline of the battle Gulfcoast Organized Crime Strike Force now on the against the "controlled disintegration" economic meas­ SPIS staff, the Subcommittee will be ready for "spectac­ ures demanded by the Trilateral Commission and Paul ular hearings" by early fall, 1980 when it will train its Volcker. Exemplary is the Teamster-led fight against guns on the ILA.'"The ILA situation is particularly ripe deregulation of the trucking industry, which EIR com­ and ready because there have been two major prosecu­ puter projections demonstrate will not only cause the tions completed (Anthony Scott and Fred Field) and one immediate bankruptcy of several trucking firms, but a which will be completed within the next few months $20 billion loss to the U.S. economy in the firstye ar after (Michael Clemente). Also, we've got manpower here on

20 Special Report EIR June 3, 1980 the Subcommittee who are intimately familiar with ILA matters." By late fall the IBT will be the subject of hearings timed to coincide with indictments from Pendorf and 15 criminal investigations into the Teamsters' Central States Health-Welfare and Pension Funds. Running along a parallel track overseen by the DoL and House Ways & Means' Subcommittee on Oversight is a plan to seize control of th� $1.3 billion liquid assets in the Central States Funds. This move, which will rob regional ma­ chines of investment capital for construction and related How Abscam projects, is equivalent to the nationalization of General Motors. and Brilab 'sting'

White Collar Crime When the first sensational "leaks" from Abscam and This program of economic warfare and "dirty tricks" Brilab appeared on the front page of newspapers across is being run in the name of combatting "white collar the country last February, few people stopped to ask the crime." One of the leading polemicists of this new Justice most basic questions about these operations. "Precisely Department program is "James Q. Wilson, a close collab­ who was 'stung' and why?" What is the press doing orator of Trilateral Commission "gangster" Samuel with the results of 'top-secret' investigations?" Since then Huntington at Harvard University, who also has the enough has emerged for many people to begin to suspect distinction of being the "brains" behind the Murphy that the public as a whole was fooled by the way the Commission Watergating of the N.Y. Police Depart­ Justice Department orchestrated Abscam and Brilab. ment. Among the revelations that have given rise to these In an article entitled, "The Changing FBI-The questions is the fact that the DoJ passed up literally Road to Abscam," which appears in the Spring, 1980 dozens of congressmen whom it had a similar opportu­ issue of the Committee on the Present Danger-linked nity to entrap. Further, it has been learned that the journal, Th e Public Interest. Wilson states: "Attorney Washington, D.C. home from which the phony sheik of General Edward Levi and (FBI) Director Kelley pledged Abscam for a time operated was rented by the FBI from that the Bureau would reduce its interest in domestic Lee Lescaze, a reporter for the Washington Post. Similar­ security cases, especially of the sort that led to such ly, it has been revealed that three weeks before the story abuses as COINTELPRO ... (because) domestic security was "officially broken," the New York Times' Leslie cases were constitutionally and politically vulnerable." Maitland, Bob Greene of Newsday, and a team of NBC Yet, Wilson continues, Levi simultaneously charged the reporters had been provided with documents and briefed FBI with "identifying ('targeting') individuals, groups, on when and how to break the story by Neil Welch, the and organizations for intensive scrutiny on the grounds recently retired FBI Assistant Director in charge of that they were suspected of being involved (emphasis Operation Abscam. added) in organized crime, major conspiracies, labor These "leaks" were a critical part of the project. racketeering, or political corruption." Three months since grand juries were convened to hear Wilson has inadvertently put his fingeron the central evidence on Abscam and Brilab, it has been announced of many ironies that attend the DoJ's "war on white that indictments are momentarily expected. But, in many collar crime," namely that it violates the infamous "Levi cases the damage has already been done, with leading Guidelines," which make it illegal for law enforcement citizens' names ruined before they are indicted, let alone officers to gather intelligence on terrorists until aft er a convicted. It is to contain further damage that EIR crime has been committed. Under Levi, the Justice De­ examines the "how" and "why" of Abscam-Brilab. partment would not investigate a known terrorist who publicly advocates violent overthrow of the American Project Alpha government until afterhe throws a bomb. Yet, congress­ Project Alpha, the prototype "sting" operation, was men, labor leaders and other responsible citizens are to launched in 1974 to destroy the political machine cen­ be "targeted" -i.e., placed under a microscope, subject­ tered on trucking and waterfront activity that until re­ ed to wiretaps, entrapped by thieves and cutthroats cently ran New Jersey's Hudson and Union counties. bearing "sting" propositions, or, possibly even framed Funding for the project was provided by the Law En­ by an informant promised an easier sentence if he indicts forcement Assistance Administration, a branch of the others-all on mere suspicion. Justice Department that has pioneered many compo-

EIR June 3, 1980 Special Report 21 nents of the Trilateral Commission's coup d'etat apparat the Anti-Defamation League of B'nai B'rith-one of the from the covert arming of gangs fo r urban riots to the chief fronts for Israeli intelligence "dirty tricks" in Amer­ DoJ's war on "white collar criminals." ica-which begins to answer this question. The firstfive The Project was run by N.Y. FBI Special Agent-in­ pages of the memorandum call for imposing restrictions Charge, Cyrus T. Falls, who coordinated the activities of against high government officials "corrupted" by the the FBI with local law enforcement in N.Y. and N.J. Arab states. This memo coincided with a series of muck­ Permission fo r the project was obtained from N.J. Gov. raking exposes by newspaper columnist Jack Anderson, Brendan Byrne who has turned his state into a virtual whom these sources identify as a frequent conduit for laboratory for such "social engineering" projects. "leaks" by the ADL and Kennedy Justice Department One of the chief "breakthroughs" that made Project elements. This 1978 public call-to-arms, however, merely Alpha possible was Attorney General Edward Levi's announced an operation well underway. 1974 reorganization or the Federal Witness Protection Harvard Law professor James Q. Wilson provides Program which allowed the government to offer even even earlier evidence of joint Zionist lobby-Kennedyite professional hitmen deals if they would entrap others in complicity in laying the groundwork fo r Abscam. Ac­ undercover operations. Despite stipulations that these cording to Wilson it was the Subcommittee on Civil and "informants" are to be "carefully monitored," the Constitutional Rights of the House Judiciary Committee FWPP became a new sort of federal equal opportunity who "began with criticism of the domestic security pro­ employment program which gave thieves a license to grams, but came to include criticisms of the Bureau's steal. weaknesses in the area of white collar crime." Among the The main "informant" in Project Alpha, fo r example, was Patrick J. Kelly, who was set up with several business fr onts-including Atlantic Trucking and Alamo Trans­ Project Alpha ...was launched in portation-to infiltrate targeted machine layers. Kelly 1974 to destroy the political machine turned these firms into fronts for federally protected centered on trucking and waterfront swindles that are now the basis of several lawsuits against the Justice Department. Herb Jaffe , a reporter for the activity that until recently ran New Newark Star Ledger who works closely with the N.Y. Jersey 's Hudson and Union counties. Strike Force, admitted this in a Feb. 10, 1980 article Funding waspr ovided by the Law entitled, "Informants Vital Link for 'Scams'." Jaffe stat­ Enforcement Assistance Administra­ ed that these crimes "were sanctioned, as long as the tion, that has pioneered ...the covert informants continued to provide data vital to Alpha and arming of gangs fo r urban riots to the subsequently to Abscam." In between swindles, Kelly "developed" testimony to DoJ's war on " white collar criminals. " convict Tino Fiumara, a major powerbroker behind the New Jersey docks. A federal grand jury subsequently indicted 40 labor and ethnic leaders in the target counties most outspoken members of the Subcommittee were based largely on Kelly's testimony. Zionist lobby "spokesperson," Rep. Elizabeth Holtzman (D-N.Y.) and Kennedy family protege Rep. Robert Dri­ nan (D-Mass). Operation Abscam It was Holtzman who simultaneously sponsored the Abscam was phase two of Project Alpha. This time creation of another witchhunt body, the Office of Special the priority target was the political side of the labor­ Investigations, which has used its nominal mandate to industry alliance that runs New York, New Jersey, and track down Nazi war criminals to establish an outpost the Greater Philadelphia region. Many of the operational fo r Israeli intelligence in the Justice Department. U.S. details of Abscam are well-known due to the trial-by­ intelligence sources have confirmedfor EIR that the OSI press leaks that were sanctioned by both FBI Assistant has played a major, though secret, role in Abscam and in Director Neil Welch and Attorney General Benjamin other Watergate-type operations having nothing to do Civiletti. This is especially true of the phony sheik who with Nazi war crimes. baited the hook with a $550 million bank account Whatever long-term gains the Zionist lobby expects vouched fo r by Trilateral Commission fo under David from thus disrupting U.S./Ara b relations, Civiletti's pa­ Rockefeller's Chase Manhattan Bank. trons on the Trilateral Commission got an immediate The one question never raised in Abscam was why an payoff in the form of blackmail against leading political "Arab-scam" was tried out? Last week U.S. intelligence allies of labor. As a result of Abscam targeting of Sen. sources made available a Nov. 18, 1978 memorandum of Harrison Williams (D-N .J.) and Pendorrs of Sen. How-

22 Special Report EIR June 3, 1980 ard Cannon (R-Nev.) Senate opposition collapsed to then chairman of the Permanent Investigations Subcom­ deregulation of the trucking industry-an essential fea­ mittee, to look into "Labor Union Insurance." IBT ture of the Trilateral Commission's "controlled disinte­ president Frank Fitzsimmons, Allen Dorfman, consult­ gration" of the world economy. A partial list of those ant to the Teamsters Central States Funds, former Attor­ "stung" in Abscam makes clear the economic warfare ney General Richard Kleindienst, and others were aspects of this political blackmail plan: dragged before the public to explain their dealings with

• Sen. Harrison Williams (D-N.J.) is chairman of the Hauser. The press leapt on the hearings to justify the Labor and Human Resources Committee through which Labor Department's demand that the Central States every piece of labor-related legislation must pass. Wil­ Funds be placed into receivership. liams not only caved in to Abscam blackmail on the In a recent EIR interview, Peter Sullivan, the SPIS trucking dereg fight,but hearings on the proposed merg­ staffmembe r reportedly in charge of anti-Teamster op­ er of the Teamsters with the AFL-CIO have now been erations, revealed the hidden purpose served by these shifted to the Senate Permanent Investigations Commit­ hearings-namely, to give law enforcement a "how to" tee. One SPIS staff member confided to EIR recently: course for setting up "stings" like Brilab: "Once we get the probe underway (AFL-CIO president "I think the idea for Brilab ... I gotta be careful how and Trilateral Commission member, Lane) Kirkland will I phrase this .... From what I understand ...the Subcom­ really dig the knife into the Teamsters." mittee's investigation of Hauser prompted official law • Rep. Frank Th ompson (D-N.J.) is chairman of the enforcement interest in labor union racketeering. .., powerful House Administration Committee and also When you read the material (from the hearings), you'll number two man at Education and Labor, the House seere adily how law enforcement people may have gotten equivalent of Williams' committee. Thompson, who the idea to try a Brilab out. ... " fa ces an uphill reelection battle, has backed down on SPIS staff director William Goodwin was even more trucking dereg and aides say he will do nothing to fight explicit on another purpose served by the hearings. Ac­ Abscam publicly. cording to Goodwin SPIS staff members helped the DoJ • Rep. John Murphy (D-N.Y.) is a member of the "pick their targets ... We identified the weak points, Interstate and Foreign Commerce Committee and chair­ Teamster and ILA leaders who could be hit .. , We had man of the Merchant Marine and Fisheries Committee. the profiles of the people who could be broken. Now the He will oversee hearings on the maritime deregulation FBI goes in and sets them up. It's like a duck shoot." bill and has done an about-face since Abscam to an­ After the hearings Hauser was himself selected to be nounce that he will support the measure's passage. the "decoy" for the FBI's Brilab. Hauser and two FBI • Camden Mayor Angelo Errichetti has for years tried agents set up a phony insurance company in Beverly to modernize his city's port and build a nuclear power Hills called Fidelity Financial Consultants. They were plant that will attract new industry and jobs to this vouched for as legitimate agents by Prudential Life economically devastated section of New Jersey. It was Insurance, a subsidiary of the Anglo-Dutch Unilever "to line up money-money to rebuild this city's port and Corp. with a long record of involvement in political to replace empty lots and burned out homes with fine, Watergates since its agents toppled Newark Mayor Ad­ new rowhouses"-that Errichetti was drawn to the donizio. phony sheik of Abscam. This trio toured the Southwest leaving a trail of $IO- 15,000 fees doled out in $100 bills on the desks of influential labor leaders and politicians whose support Brilab was sought for insurance contracts. In Feb. 1980 a team Brilab ("bribery-labor"), which targets Southwestern of FBI agents followed these trailmarkers around Loui­ members of the labor-industry alliance, is merely the siana, Texas, and Oklahoma delivering subpoenas to latest phase of ongoing economic warfare against the grand juries convened in New Orleans and Houston. Teamsters and their political allies. Among those targeted in Brilab are: Gov. Edwin George Hauser, the chief "informant" in Brilab, is Edwards of Louisiana, a spokesman for high-technology known to have been under Justice Department surveil­ development who was also hit by Civiletti's Justice De­ lance fr om 1973-76 during which time he was running an partment in Koreagate; and Texas Speaker of the House insurance scam on labor union fu nds. The Justice De­ Billy Clayton who is a leader of forces committed to partment let him swindle Teamster and other union industrial progress throughout the Southwest. Via Bri­ members out of millions. lab, the Trilateral Commission has been able to· force its In March, 1977 Hauser was finallyindic ted to make economic policy of "controlled disintegration" more sure he would tow the line of the Justice Department. deeply into the Southwest, one of the few regions that Hearings were called by Sen. Henry Jackson (D-Wash.), has maintained pockets of growth in the current crisis.

EIR June 3, 1980 Special Report 23 Luther King. Aborted at the last moment by President Johnson, the operation became the model for race riots throughout the 196Os. The OCSFs in operation in 13 cities today have carried on this tradition. One recently retired veteran of the Detroit Strike Force told EIR last month: "When there were no fightsin the Teamster leadership, we'd hire a professional hitman to go out and blow a couple of Teamsters away to get it started." The roots of Another tradition set by Bobby Kennedy, whose father made his initial fo rtune bootlegging whiskey, was to protect the "Mr. Bigs" of organized crime in America. Abscam/Brilab In fact, many graduates of Kennedy's "Get Hoffa Squad" went on to become top staff members of Dope, Attorney General Benjamin Civiletti, just-retired FBI Inc., the international network of offshore banks and Assistant Director Neil Welch, and other leading dra­ front companies whose annual income from drug traf­ matis personae in Abscam were trained in blackmail, fickinghas been conservatively estimated at $100bill ion. trial-by-press, entrapment and other Gestapo tactics now Among them was Robert Peloquin who was named standard operating procedure at the Justice Department head of the first official OCSF setup in Buffalo on orders during the "Kennedy Justice" years. from Attorney General Ramsey Clark in 1966. Together It was under Attorney General Robert Kennedy that with Neil Welch, then FBI Special Agent-in-Charge fo r the first unit of what were to become known as the Buffalo, Peloquin slapped Stefano Maggadino with a Organized Crime Strike Forces (OCSF) was formed. death bed indictment. Amidst great publicity, Welch and Headed by Kennedy family protege Walter Sheridan, a Peloquin announced that the indictment of "Don Mag­ veteran of the FBI and fo rmer chief of the Counterintel­ gadino," who died before his trial, marked the end of ligence Section ofthe top-secret National Security Agen­ organized crime in Buffalo. cy, the original Strike Force had a single prioirty: get In their investigation, Welch and Peloquin carefully Teamster president Jimmy Hoffa by any means neces­ sidestepped the Jacobs' families Emprise/Sportsystems sary. Toward this end, Sheridan could draw on the files empire, which law enforcement personnel have since of the 1956 McClellan Committee hearings on the identifiedas a nexus for Dope, Inc.'s narcotics trafficking Teamsters fo r which Bobby Kennedy (trained as an aide and dirty money laundering. Later, Henry Peterson, of Sen. Joe McCarthy) served as chief counsel. head of the DoJ's Organized Crime and Labor According to Victor Navasky, author of Kennedy p.,acketerring Section, and five other Kennedy Justice Justice, the Strike Force was "in touch with grand juries "Old Boys" took top-level executive posts with Emprise/ throughout the country. It had an undercover air of Sportsystems, whose fo under ran whiskey with Joe Ken­ mystery about it. Its modus operandi was cloak and nedy, Sr. dagger." Robert Peloquin and his fo rmer boss, William Hun­ It was also grossly illegal. One of Bobby Kennedy's dley, who had been Kennedy's Assistant Attorney Gen­ firstacts as Attorney General was to order massive illegal eral in charge of the Criminal Division, went on to fo und wiretaps drawing on the expertise of NSA-trained Strike International Intelligence, Inc. which today provides Force head Sheridan who established fronts like Inter­ security for casinos in Las Vegas and Atlantic City. national Investigators, Inc. for this purpose. Intertel is believed to form the core of the Kennedy Only after 30 indictments had been filed agains.t family'S private intelligence establishment, working Hoffa and Bobby Kennedy arrived at a near perfect closely with Walter Sheridan, who is today chiefinvesti­ "frame-up" was the Strike Force deployed on other gator fo r Sen. Ted Kennedy's Judiciary Committee. cases. In 1964,for example, Kennedy sent Neil Welch, Today, this Kennedy "Old Boys" network is believed who would later run Operation Abscam as Assistant FBI to be the real power directing the Strike Forces. They Director, into the South with his "Get Hoffa Squad" and work through such holdovers from the Kennedy days as with John Doar, his chief civil rights "troubleshooter," Neil Welch, who was ironically selected to oversee the on a mission to turn "Mississippi Summer" into a racial pilot phases of the DoJ's new war on "white collar crime" conflagration. U.S. intelligence sources report that this despite the fact that his record as a "dirty trickster" was team set in motion a triple assassination against: three so bad he could never be named FBI director. Under this civil rights leaders Chaney, Goodwin and Schwerner; new cover, the same old policy of protecting the big guys Sam Bowers, head ofthe Mississippi KKK; and, Martin was continued.

24 Special Report EIR June 3, 1980 Who is Benjamin Civiletti?

u.s. Attorney General Benjamin Civiletti, chief Stephen Sachs, one of Civiletti's close friends on architect of the Justice Department's assault on the Tydings' staff, handled the "Dump Agnew First" labor-industry alliance with Abscam, Brilab, Pendorf, phase of Watergate as then U.S. Attorney for Balti­ has built his career watergating others. Civiletti's more. Sachs also "mopped up" Agnew's local politi­ initial exposure to the Gestapo tactics essential to cal machine by prosecuting Md. Gov. Marvin Man­ these "sting" operations, was gained first hand as one del. of the "bright young men" brought into the Justice Sen. Paul Sarbanes (D-Md.), formerly a Congress­ Department by Attorney General Robert Kennedy. man who drew the first bill of impeachment against Fresh out of the University of Maryland Law Nixon for the House Judiciary Committee, had been School, Civiletti was named Assistant in 1962 to then a patron of Civiletti's at Venable, Baetj er and Howard U.S. Attorney Joseph Tydings. "He was hard-work­ and later recruited him to be treasurer of his 1966 ing. Not fr om a prominent family, but hard­ congressional campaign. Robert Shelton, another for­ working," the son of a former Maryland Senator told mer Civiletti law partner,joined Sarbanes as associate EIR recently. Tydings had himself been awarded his counsel to the Judiciary Committee, whose members appointment fo r managing John F. Kennedy's 1960 were instrumental in redirecting the DoJ into its "war Maryland campaign . on white collar crime" after Watergate. Tydings and his staff fe atured prominently in Bob­ Appointed Assistant to Attorney General Griffin by Kennedy's "war on organized crime," and the Bell in repayment fo r running Carter's 1976 Maryland Baltimore U.S. Attorney's officebecame a model for campaign, Civiletti used his Watergate experience to others to follow. Kennedy frequently visited to map handle a series of follow-up scandals with which the out new tactics with Tydings. "We got away with Trilateral Commission sought to further consolidate things no one else in the country could do," Tydings power. Among these were: Koreagate which heavily told EIR : "Of course, that was in 1962. Today, our targetted the machine of Louisiana Gov. Edwin Ed­ methods have become standard operating wards; and, Lancegate which threatened to sink the procedure. " Carter administration when Jimmy Carter leaned too Introduced into the old-guard Episcopalian and heavily on his "Georgia Mafia"frien ds. Zionist families who run Baltimore, Civiletti was in­ Civiletti has earned a reputation as a "killer pros­ vited to join the elite law firm of Venable, Baetj er and ecutor" in his dealings with congressmen, labor lead­ Howard. He remained with this firm until named ers, and others in Abscam and Brilab. Yet, he has set Assistant Attorney General at the DoJ's Criminal an all-time record by freeing 20 terrorists since taking Division in 1977. office. Many of Civiletti's Baltimore associates played Among these are four Puerto Rican terrorists who prominent roles in Watergate, the first phase of the are the symbolic heroes of the FALN. Three were Trilateral Commission's current "sting" operations jailed fo r an armed attack on Congress and the fourth against the labor-industry alliance. The infamous fo r attempting to assassinate Pres. Harry S. Truman! "plumbers unit" which carried out the actual Water­ "Civiletti was the brains behind the release," Rep. gate break-in fo isted itself on the White House in the Garda (D-N.Y.) told EIR . "They never would have same way the "sheik" did Abscam victims. Informants been released without his efforts." No sooner freed, "leaked" the coverup to reporters at the Washington than the four unrepentent terrorists called for "the Post and Boston Globe who were complicit in the liberation of Puerto Rico from Yankee Imperialism "scam. " by any means necessary."

EIR June 3, 1980 Special Report 25 Giscard out to stop 'otherwise inevitable' war

by Rachel Douglas

On Sunday, May 18, President Valery Giscard d'Estaing in Europe during the previous week, was reportedly of France flew to Warsaw, Poland for a summit meeting "mad as hell" that France proceeded without informing with Soviet President Leonid Brezhnev. Arranged secret­ the U.S. His protests over not being consulted, expressed ly and announced only at the last minute, the unsched­ at a May 20 press conference in Washington, sounded uled summitry shocked the NATO alliance-especially feeble, however, because of the Carter administration's the Carter administration. failure to consult or inform the allies before the abortive Brezhnev and Giscard met for five hours. There was raid into Iran just three weeks earlier. no communique from their discussions, but when the In London, the British Foreign Office said tersely, French president landed in Paris, he said the summit had "Our feelings are not for the record." achieved its goal of "explanations at the highest level, At the end of his talks with Brezhnev, Giscard en­ with the aim of reducing tensions." French radio de­ dorsed a Soviet call to hold an international summit of scribed Giscard's journey as an attempt to avoid a war world leaders to discuss ways to prevent war. Giscard which would otherwise be "inevitable," adding that the suggested that it be held with a smaller number of president sought to strengthen Mr. Brezhnev's policy countries participating, but the effective commitment of line in the U.S.S.R. since it favors cooperation with the France to work for such a meeting is a major event. Europeans. Informed political sources indicated that as long as The firsthigh- level East-West contact since the Soviet an international summit is on the agenda; a critical invasion of Afghanistan just before the first ofthis year, margin of global security will be preserved. In anticipa­ the meeting in Warsaw shattered the fragile facade of tion of the summit, these sources said, it is understood in alliance unity constructed in NATO by the Carter ad­ France that the U.S.S.R. will exercise extreme caution in ministration over several months. The snub was deliber­ responding to what Moscow considers to be provoca­ ate; when Giscard talked personally with Carter by tele­ tions carried out by the United States or NATO. The phone on Thursday, May 15, concerning the proposal to Soviets will do "nothing," with the exception of a possi­ boycott the 1980 Olympic Games in Moscow, his immi­ ble military move into China under certain circumstan­ nent trip to see Brezhnev was not mentioned. ces, as an ultimate warning to the West. Both Washington and London reacted to the dramat­ Neither Washington nor London confessed any un­ ic diplomatic development in Warsaw with a mixture of derstanding of what the summit had accomplished, nor outrage and misevaluation. Secretary of State Edmund what prompted it. In fact, the stage was set by two Muskie, who had met his fellow NATO foreign ministers meetings held the weekof May 12: the NATO ministerial

26 International EIR June 3, 1980 Brezhnev, with Gromyko, meets Giscard d'Estaing in Warsaw May 19. Photo: Sygma

session in Brussels and the summit of the Warsaw Treaty Euromissiles, as they are known. It said that negotiations Organization countries in Poland. on this class of weapons could commence if NATO Giscard finalized his plan to meet Brezhnev after revoked it or delayed its implementation. Thus, Moscow witnessing pressure tactics applied to the allies by Muskie and its allies made official an opening to talks previously and U.s. Secretary of Defense Harold Brown on the ques­ only hinted at. At the time of the NATO decision in tion of harnessing the whole of NATO to American contrast, Gromyko had declared that anything short of policies in the Middle East. When on May 15 in Vienna, complete annulment would make talks "impossible." with the Soviet fo reign minister sitting five feet away, The Soviets evaluated the December 12 decision as a Muskie delivered a tirade against the U.S.S.R. as com­ fundamental capitulation by Western Europe to the parable to Hitler Germany, Giscard accepted the Polish Carter policy of confrontation and, probably, thermo­ and Russian bid for a meeting. nuclear war. Moscow military analysts repeatedly called Also in Vienna, the French received a hint from the Euromissiles part of a NATO attempt to create "first Gromyko that proposals fielded by Giscard for a solu­ strike" capabilities against the Soviet Union. The Soviets tion to the Afghanistan crisis might serve as a basis for pointed out that while Washington-following the so­ negotiation, contrasting sharply to a British "neutrali­ called "Schlesinger doctrine"-foresees a European zation plan" fo r Afghanistan that Moscow had rejected. theater-limited nuclear war, utilization of these weapons would mark the beginning of full-scale nuclear combat Euromissile question revived between the Soviet Union and the United States. The question of NATO's deployment of 600 new, The Paris daily Le Figaro underscored the pivotal medium-range nuclear missiles in Western Europe-with nature of the Euromissile questions in a May 19 commen­ 4-minute flight time of Soviet targets-was on Giscard tary by Serge Maffert, after the Giscard-Brezhnev talks. and Brezhnev's agenda. Paris, not party to the December The present international crisis, he wrote, could more 12, 1979, decision fo r this deployment because France is accurately be dated to December 12, 1979 than to the not part of NATO's military organization, had previ­ Soviet move into Afghanistan. ously steered clear of this crucial issue. In April, Chancellor Helmut Schmidt of West Ger­ The May 13 communique of the Warsaw Pact sum­ many proposed a "freeze" on implementation of the mit, the document which called for an immediate summit missile plan. At the time, Moscow commentaries dis­ of leaders from "all regions of the world" to cool out a missed the idea as meaningless, but in a May 1 interview pre-war situation, once again raised the issue of the to the Hungarian daily Nepszabadsag, Soviet informa-

EIR June 3, 1980 International 27 tion chief Valentin Falin stated that Western Europe, to the brink of a big war during which entire countries especially West Germany, understood better now than it might burn up." had in December that the decision was a threat to its own Afghanistan, the Euromissiles and an international security. summit were the chief items reviewed by Giscard and The Warsaw Pact accompanied its initiatives with a Brezhnev. But the French made clear, as Maffert wrote loud drumroll of military preparedness and warnings to in Le Figaro, that Giscard intended, not to serve as an the United States. Pravda on May 12 accused Washing­ East-West "intermediary," but to reestablish the condi­ ton of attempting "nuclear blackmail" in the Middle tions fo r global detente in East-West relations, to break East, while Commander in Chief of Warsaw Pact forces down "the total wall of incomprehension which separates Marshal V. Kulikov said at the gathering in Poland that the West and the Russians on all security matters." the organization was set to achieve a new, tight centrali­ Headlines in America trumpeted that West Germany zation and streamlining of fo rces that would make pos­ had been "the most offended" over Giscard's diplomatic sible a "permanent mobilization capability." foray, because Chancellor Helmut Schmidt was slated to In a commentary on the NATO meeting, Radio go to Moscow to talk to Brezhnev in June. In reality, Moscow focused the point the Kremlin wanted Europe Bonn expressed satisfaction. Government spokesman to absorb: "It is hard to recall a NATO meeting which Klaus Boelling called the Warsaw summit a step for took place in such an alarming atmosphere .... There is detente in the right direction, "a valuable contribution to a psychological attack by the U.S. on its allies .... They a revival of the East-West dialogue." Giscard's foreign threaten them with the consequences of the allies' depart­ minister, Jean Fran�ois-Poncet, flew to Bonn May 20 to ing from solidarity. Western Europe follows ... with brief the West Germans on the talks. reservations. But the fact remains that they follow. The Following Schmidt's decisive landslide victory in pricemight be too high for them. U.S. policy might lead North Rhine Westphalian elections May 11, where he

area, to abandon their independent efforts to achieve a Mideast settlement, and to shift their economies Muskie's fIrst toward military production. Muskie in his press con­ official prov cation fe rence back in Washington frankly admitted that his ? aim was to impose a "limited sovereignty" on Western Secretary of State Edmund Muskie's firstdiplom atic Europe: "I hope to make clear the limits within which engagement with Western Europe and the Soviet our allies are expected to cooperate, the limits of Union has convinced both that the United States detente with the Soviet Union," he said. government remains committed to a policy of con­ Europe's leaders were also shocked at Muskie's frontation, the same policy which led to President provocative treatment of Soviet Foreign Minister Carter's abortive "rescue aid" in Iran. Gromyko when the two met in Vienna last week. In M uskie's firstoffic ial State Department press M uskie announced before the meeting took place that conference May 20 upon his return from Europe, he it would be a mere "fencing exercise" or "diplomatic sharply criticized the French government for failing minuet," in which it would be up to Moscow to decide to consult with Washington over the French-Soviet whether detente should be continued-on Washing­ summit in Warsaw. France was undercutting western ton's terms-or not. Muskie dismissed as "cosmetic" solidarity by pursuing its own negotiations with the a proposal by the Afghan government fo r withdrawal Soviet Union, he charged. of Soviet troops provided that the United States, Iran In fact, it was France's perception that the new and Pakistan would agree not to financerebel activi­ Secretary of State would do nothing to reverse the ties against Afghanistan. By contrast, Bonn, Paris Carter administration's foreign policy-which France and London described the proposal as worthy of believes could lead rapidly to World War III-that thorough examination and consideration. induced Giscard to travel so hastily to meet with But, as the Paris daily Le Monde May 18-19 point­ Brezhnev in the firstpl ace. Commented the newspaper ed out, Muskie's attempt to bluff and bluster at Gro­ France Soir: "Giscard knew that he ran no other risk myko backfired against the Secretary of State: than to give one more chance to safeguard peace." "Widely displayed on Thursday, the smile had This European perception was the result of Mu­ gradually disappeared by Friday. At 2000 hours on skie's and Defense Secretary Harold Brown's stren­ May 15, when the American Secretary of State left his uous efforts to arm twist continental Europe to agree tete-it-tete meeting with M. Gromyko and walked to an extension of NATO outside its treaty-mandated toward the journalists, he was slightly pale. The few

28 International EIR June 3, 1980 campaigned for his party on the issue of war or peace, he is politically in an improved position to join Giscard in initiatives to the East. A revived Franco-German power play points the way to the real basis fo r making emergen­ cy war-avoidance efforts like the Giscard-Brezhnev talks succeed. Just before flying to Poland, Giscard met with No hop e for Mrica in President Jose Lopez Portillo of Mexico, on tour in Europe to seek political and economic support for Mex­ ico's industrialization effort: including nuclear power Club of Rome development. This emphasis in Lopez Portillo's consultations 'trialogue' plan pointed to the soundest element underlying French poli­ cy: commitment to economic development of the third by Mary Brannan. Wiesbaden correspondent world. The French and German effort to create the European Monetary System was aimed at fo stering inter­ The Organization of African Unity (OAU) held an eco­ national stability through financing such industrial de­ nomic summit in Lagos, Nigeria on April 28-29, to velopment, overriding institutions like the International discuss Africa's disastrous economic plight. The OAU Monetary Fund which couple developing sector loans Secretary General Edem Kodjo declared at that summit: with demands for austerity and, eventually, population "Africa is living through difficult times, such difficult reduction. Giscard's proposals for a new, gold-backed times that its survival is in question, its future is an world monetary system, due to be announced in June, enigma. It is far from our wish to blacken the situation require Bonn's wholehearted backing to succeed. which is being laid out in broad daylight in all its precariousness and desperation ... it is enough for people to look hard at the continent, to count its problems, to phrases that he dropped in passing leftno doubt: after analyze its impasses, to establish the situation without three hours of meeting-checkmate. He could not complacency for its weaknesses, to recognize the hard announce anything positive, and suddenly no longer and implacable fact, the unbearable fact: Yes, Africa is even thought of reaffirming the American positions. in danger of death ... yes, Africa is dying." "The power which launched the boycott of the Africa is indeed facing a plethora of severe economic Moscow games and adopted economic sanctions after problems. A ten-fold increase in the price it has to pay the invasion of Afghanistan has just been shown the fo r oil has occurred since 1973. Falling fo od production door by the country it wanted to place in the dock of and starvation threaten hundreds of thousands in East the accused .... Africa. It is becoming nearly impossible to obtain loans The meetings of May 16 were a trial for Muskie, on the international market-German banks, for exam­ who fo und disagreements with the foreign ministers ple, ceased lending one month ago. Africa is left with of France, Britain and West Germany at every turn. virtually no alternative to accepting the International "[And at the state speeches honoring Austria's 25th Monetary Fund's (IMF) dictatorship. anniversary] M. Muskie placed his hands on the speaker's stand but his foot in his mouth. After a few Civil war and coups glowing sentences fo r his hosts, he got right to the These are not the only problems facing African lead­ point: 'The principles of neutrality, of independence ers. In the last month, civil war in Chad has intensified, and territorial integrity, so respected in the case of there have been military coups in Liberia and Uganda, Austria, are today being violated . ... An aggression an attempted coup in Rwanda, rumors of a coup in the anywhere threatens security everywhere. The United Ivory Coast, and an attempted assassination of Guinean States and the countries which support it ... have head of state Sekou Toure. And beginning May 20, the decided to continue to say that the price for aggression branch of British intelligence known as "Amnesty Inter­ must be paid.' Despite progress in America's will to national" will launch a destabilization attempt against maintain the East-West dialogue, on the whole it was the government of Zaire, accusing it of "repression." like a punch in the jaw. Africa is indeed in danger of dying, but it is not the "Austrian Chancellor Kreisky took on that distant unfortunate victim of arbitrary processes. Africa is the air that one assumes when a guest uses rude words at victim of Malthusianism, centered in the Club of Rome , the table. A mocking, eloquent smile crossed Gro­ the International Monetary Fund, the W orId Bank, the myko's face. His entourage was to call him 'shocked' Council on Foreign Relations (CFR), the United Na­ tions Organization, UNESCO, OECD, etc. Malthus was at this political usage of a ceremonial occasion. ... " an employee of the British East India Company, and his

EIR June 3, 1980 International 29 zero-population growth policy was aimed at preventing the development of large, republican nation-states in the colonies. Today's Malthusian aim is almost the same: destroy the nation-states in embryo in the Third World. Peace and nuclear�ower What are the Europeans doing? Giscard d'Estaing proposed the concept of the Tria­ logue to help Africa, i.e., European-Arab-African coop­ eration for development. The idea was unanimously Lopez Portillo's approved at the French-African summit held last week­ end in Nice. The summit heard declarations of despair by Tim Rush from the Africans. However, the communique published at the end of the summit proposed the use of "soft technology" and Mexican President Jose Lopez Portillo arrived in West alternative energy sources like biomass, stressed the Germany May 19 for the second leg of an extraordinary "positive role" of the IMF and W orId Bank in Third European tour which had begun in France three days W orId development, and said France was considering earlier. The theme stressed by Lopez Portillo and his increasing its contribution to the IMF and World Bank. hosts in both capitals was the same: the imminence of a These proposals will do nothing to help Africa. Bio­ nuclear world war and the need for total war-avoidance mass and solar energy are extremely inefficient energy mobilization by the nations aware of this danger. sources. The energy efficiency in megawatts per square At the state dinner offered by French President Gis­ meter of biomass is 0.000000 1. For fossil fuels, the effi­ card d'Estaing in Paris, the Mexican leader warned that ciency rate is 10, while for fissionener gy the efficiency is the "international situation had degenerated to such a 50-200. Robert Galley, France's Minister of Coopera­ point" that "generalized war" is close. Conflicts in the tion, would never propose such an energy source for "small and medium-sized countries ... can be the spark France, as he knows perfectly well that an industrialized which lights the bonfire." This da nger "demands the economy cannot fu nction with such a low efficiency in joint and immediate action of countries ... which believe its energy base. in detente and refuse to return to the Cold War of two The current Trialogue proposal, as published by the decades ago." Elysee, seems to have been rewritten by the Club of In Bonn his words were no less grave: "The prospect Rome. It calls for the use of 'soft technology, adapted to of a global war continues as the major problem of the Africa,' alternative energy, and the creation of a club world." inspired by the Club of Rome and the Club of Dakar (an Equally strong were his words of praise for the African version of the Club of Rome) to organize a French and German peace efforts. To Giscard he stated, "cultural trialogue" as a substitute fo r the transfer-of­ "We have followed (your) actions to reduce the tensions technology orientation. The Malthusians' "cultural ex­ in various parts of the earth ...with attention and hope." change" will publish books, organize exhibitions, etc., To Sc hmidt, "We recognize the contribution of the will emphasizing the most backward aspects of these current government of the Federal Republic of Germany cultures. One example of a book they would publish is by to the cause of detente." Abdel Khader, a member of a mystical Sufisect . "I wish to make two tributes," he added in unpre­ All this no doubt delights Africa's closest collabora­ pared remarks at the end of the Bonn state luncheon tor of the Club of Rome, Leopold Senghor, President of May 20. One concerns Giscard, he said, "a great contem­ Senegal, inventor of the racist ideology of negritude, porary statesman": the other, Chancellor Schmidt. "Our follower of Jesuit Teilhard de Chardin and close friend fear, or alarm, is tempered when we realize that there are of Willy Brandt and Franz Josef Strauss. two statesman in theworld of this great calibre." If Giscard d'Estaing and Helmut Schmidt seriously The timing of his visit placed the Mexican leader in want to prevent genocide on the continent, they must the very center of the dramatic peace offensive under­ implement the European Monetary System, which would taken by Giscard with his sudden and unscheduled sum­ provide longterm, low-interest credits fo r industrializa­ mit with Brezhnev in Warsaw May 18. Giscard made the tion of the Third W orId, and which would end the preparations for the Warsaw initiative during the two hegemony of zero-growth institutions "donating aid" to days Lopez Portillo was his guest in Paris, and Lopez the deserving poor in Africa. The consequence of avoid­ Portillo arrived in Bonn on the day Schmidt gave his ing such responsibility is genocide ... which will not be backing to the French leader's move. restricted to Africa. Lopez Portillo threw the weight of one of the Third

30 International EIR June 3, 1980 meetingwith Giscard

World's most influential countries behind the French­ West German initiatives just at the moment that the Washington and London governments were responding The jointcommunique with fu ry. Primary among the hotspots treated in depth by the Th e fo llowing are excerpts fr om Lopez Portillo and leaders in both capitals were the Caribbean and Central Giscard'sjoint communique, signed May 17: American situations. In fact, so serious was the threat of war in this area or Palestine the Mideast that reliable Mexican sources say the Lopez The two presidents stressed the urgency of a Portillo trip was almost cancelled in order to permit the peaceful, just and lasting solution in the Middle president to devote complete attention to possible devel­ East. This solution must -be based on withdrawal opments on Mexico's doorstep. from occupied territories, the right of all states in the region to security, and the exercise by the 'A scale model Palestinian people of the right of self-determina­ of broader cooperation' tion within the terms of this solution .... On the bilateral side of the French-Mexican talks, Lopez Portillo declared that the accords under negotia­ Economic growth tion will be a "scale model of the broader cooperation They studied the world economic situation that must exist as the new world economic order. We are which they both fo und worrisome. They stressed interested in mutually beneficial conversations, transfer the need to seek forms which permit fighting infla­ of technology and greater volume of trade transactions." tion and world monetary disorder without reduc­ What was actually signed in Paris-a $300 million, ing economic activity. two-part financing package and expansion of nuclear technical exchanges-remain signposts toward future Mexican-French cooperation developments rather than the destination itself. They expressed their willingness to give a vig­ The overriding element was political agreement, both orous push to Mexican-French economic coopera­ in terms of world strategic assessment and the fr amework tion in sectors of mutual interest and to favor the of transfer of advanced technology. The way Lopez successful conclusion of major projects now being Portillo put it in a press conference was that "France is studied or negotiated, especially urban transport adjusting to the type of policies and relations which the and railroads; telecommunications; automotive in­ Mexican government seeks." Thus a wide range of eco­ dustry; chemicals and petrochemicals; mining and nomic deals, paced by advanced nuclear negotiations metalurgy; steel; nuclear energy and renewable (see accompanying article), are moving forward rapidly. energies;oil industry equipment; fishing and ports In this context-and only in this context, as Mexico infrastructure .... They celebrated the start of im­ vehemently reiterates-will Mexico consider increases in plementation of a contract signed between Pemex its oil export program. The excellent prospects fo r France and the Companie Francaise de Petrole providing in this regard were underscored in the final communique fo r shipments of 100,000 bpd of crude oil. These from the Paris visit, where the two countries note that the shipments and their future increase form an impor­ current export target of 100,000 bpd and its "future tant part of the global scheme of cooperation be­ increase" form "an important part of the global scheme tween the two countries. of cooperation between the two countries."

EIR June 3, 1980 International 31 This language and the understandings behind it con­ repeatedly with Brandt and his lieutenants to map out trast sharply with the discussions with Japanese Prime implementation of the Brandt report. Minister Ohira in Mexico City at the beginning of May. ,Ohira criticized Mexico's efforts to move away from the Tribute to Beethoven London and Washington-dominated Bretton Woods Lopez Portillo's flirtation with the Brandt Report system, and attempted "shrewd" bargaining to get was strikingly at odds not only with his recent designa­ promises of more oil before technology agreements were tion of nuclear energy as the most important future discussed. The final communique read like a battle re­ technology of his Global Energy Plan, but also his port, not the cooperative'discussions of friendly heads of glowing tribute to German culture, and particularly the state. music of Beethoveen, in his own fo rmation and that of his generation in Mexico. The Brandt problem "It is a unique privilege to be in this sanctuary of A cloud was thrown over this interlinked war avoid­ human genius, the sacred site of Beethoven's birth," he ance and high-technology development strategy how­ wrote in the guest book at the Beethovenhaus in Bonn. ever, by the substantial credibility Lopez Portillo and "Beethoven-mankind's glory, if any there be, along Schmidt gave the Brandt Commission proposals for with a handful of others who are his equal but not his "renewed North-South dialogue." superior, a profoundly human musician and thinker." The Brandt Commission, a tool of the World Bank After seeing the original score of the Ninth Symphony, comprised of Anglophile, social democratic Third World the Mexican President exclaimed, "If I had to die today, figures, proposed in February the separation of "north" I could go in peace, after seeing this." and "south" development strategies, to be linked only in Apparently it did not occur to him that the spirit of the future by mechanisms to channel OPEC petrodollars his remarks-the concept of universal human culture and into Third World debt repayment and transfer of "appro­ universal advances for mankind-frontally challenges priate" low-level technology rather than advanced indus­ the assumptions ofthe Brandt report, cultural relativism try and science. and the "appropriateness" of "indigenous The proposal would emasculate any successful peace technologies. " strategy by eliminating the basis fo r renewed global economic growth. They were drafted consciously as the alternative to the institutional framework which holds the promise of real growth-the European Monetary System and, in particular, its contemplated Phase II 'The worldsituation extension of credit to high technology Third World needs immediate action' projects. Yet, Lopez Portillo's first meeting upon arriving in Jose Lopez Portillo's statement at a May 16 dinner hosted West Germany, was with Willy Brandt. Brandt emerged by French President Giscard d'Estaing included the fo llow­ from the 45 minute private talk to say he had Lopez ing: Portillo's backing to a Commission proposal fo r a heads­ of-state meeting to "relaunch" North-South negotia­ We insist that efforts at peaceful solutions of on­ tions. Subsequently Mexican Foreign Minister Castane­ going conflicts be redoubled. Under the present condi­ da confirmed that Lopez Portillo would attend. tions of grave tension, any of them could overflow its Before leaving Paris two days before, Lopez Portillo regional locus and become generalized. Thus, we also had endorsed another fe ature of the Brandt plan by insist that the runaway arms race be halted. name, "international taxes on trade" in a speech at the During the last few months the international situa­ Sorbonne. tion has deteriorated so much as to require immediate Helmut Schmidt, for his part, told Lopez Portillo at united action by those countries able to sustain independ­ the state luncheon May 20 that his government "fully ent policies, those which are not responsible for or direct­ supports" the Brandt Commission's insistence that "the ly involved in-although definitely threatened by-local interests of North and South" must "be balanced" if and regional conflicts which could lead to generalized "lasting world peace" is to be maintained. war. Recent events clearly show that conflicts involving The Mexican President's disorientation on the Brandt small and middle-sized countries today present the great­ Commission can be traced to the role of his Foreign est risks. They could be the spark which lights the Minister, Jorge Castaneda. Castaneda, the product of bonfire. The most powerful fo rce capable of being coun­ over 20 years' service in the tainted "one world" anti­ terposed to the danger of war is the active unity and growth United Nations apparatus, has been meeting solidarity of those countries which believe in detente and

32 International EIR June 3, 1980 refuse to go back to the cold war of two decades past. We have fo llowed with attention and hope your efforts and those of your government to reduce tensions in various parts of the world. Your proposals on security The no. 2 industry problems in Europe, the Middle East and Asia are real­ istic, firm, and conciliatory . offi Cial talks to EIR ... In the short term we live in the shadow of inflation, unemployment, monetary disorder, external disequili­ Dr. Nathan Warman. Undersecretary of Industry in Mex­ brium, and growing indebtedness of the poor countries. ico's Resources and Industrial Development Ministry These problems cannot be resolved separately, nor by (SEPAFIN). was one of the principal speakers at two days means of formulas whose obsolescence is proven by their of high level talks between Mexican and French business­ inefficacy. men May 14-15 in Paris. Here are his remarks to Sophie ,We understand the sickness of our times and the Tanapura. EIR Paris bureau chief. during a break in the formulas for curing. However, we lack the political discussions: agreements indispensible for founding new structures, mostly because, on one extreme, there are narrowly Q: What is the state of affairs now between Mexico and nationalist perspectives of economic problems, and on the United States? the other side, multinational actions which, on shedding A: Our policy towards the United States is identical to nationality, represent total social irresponsibility and no the one that we have towards industrialized countries in political commitment general. We have a finite amount of oil and its allocation We must fight inflation and put the international will be adjusted bilaterally on the basis of preferential monetary system in order to assure increased economic terms, and financial resources. We have brought up our activity which would permit backward countries to de� oil policy several times in ad hoc committee meetings and velop and industrialized countries to achieve better utili­ during other meetings with representatives of the Amer­ zation of their productive capacities. ican government. I think that the point is now well­ We desire our bilateral economic relations to provide understood by them. American officials in Mexico have a scaled down model of the much greater cooperation told me that they would respect Mexican policy on oil which would surely exist under a new international eco­ whatever it may be. And I take that as their official nomic order. We seek mutually beneficial discussions, position. technology transfer and increased trade. Q: Apparently Japanese Prime Minister Ohira was not very welcome in Mexico during his last visit. Could you explain why? I A: Japan wanted Mexico to increase its oil production. 'Today have met During Mr. Ohira's visit, we made the fo llowing point an exceptional man ' very clear to him: Mexico will export only a limited amount of oil, and this only in respect to its financial Th e fo llowing is excerpted fr om a speech by Lopez needs fo r development. Portillo to the Latin American diplomatic corps in Paris. May 18. Q: What do you think France can offer that the United States and Japan have not yet offered? Mexico is our most palpable demonstration of North A: During President Giscard d'Estaing's last visit to South relations. As you all know, we have a 2,000 mile Mexico, a fu nd has beencreated fo r special investments border with the United States, so that, quite literally, to be used by governmental firms. The Japanese are also North South relations take place in that great scar, discussing this ... healed by now, probably already pardoned, but still a scar at the end of a major amputation ... Q: What is the state of nuclear energy policy in Mexico I have had the profound satisfaction of speaking and will anything be concluded with France in this today with an exceptional man who understands contem­ context? porary problems better than almost all other statesmen: A: For the moment, we have a nuclear test reactor The President of France became deeply immersed in our through technical cooperation with Westinghouse. And description of Latin America's problems, which are no we are presently very interested to see what the French dangerously critical not only for Latin America, but fo r and the Canadians can offer us. For the moment, we are the entire world. just looking around.

EIR June 3, 1980 International 33 point. According to press reports, France has offered Mexico "all the reactors it wants," and Mexico is report­ edly already sharing French know-how from the "Phe­ nix" breeder reactor. Mexican-French cooperation in the nuclear field dates from Giscard d'Estaing's historic visit Lopez Por�illo takes to Mexico City in February of 1979, at which point a number of training and other projects were agreed to. a pro-nuclear stand The specific deals agreed to between Mexico and France on this trip are limited, and involve only training Mexican nuclear technicians in France and joint explo­ by Dolia Pettingell ration for uranium in Mexico. Before and during the trip there were rumors that further accords would be reached "I believe that the 21st Century will be the nuclear on French help in the construction of nuclear plants in century. As soon as the problems are overcome, and it Mexico, and on uranium enrichment. Nothing was seems to me that they are extremely exaggerated by the agreed to publicly on these points, although a very defenders of the environment, there \\·ill be no choice but positive political climate was established within which nuclear," Mexican President Jose Lopez Portillo told the further agreements are likely. French daily Le Monde on the eve of his European trip. The Mexican government was fo rced to respond to This statement, and the reiteration of the same idea in a the widespread rumor-mongering in the Mexican and press conference a few days later, are the strongest European press that extensive deals with France were statements to date from the Mexican president commit­ about to be signed. Industry Minister de Oteyza told the ting his country to a course of energy development which press that all reports published so far on Mexican pur­ centers on nuclear power. It also .constitutes the first, chases of nuclear plants were "pure fantasy," and that precise definition of the content of his "global energy Mexico would reach no final decisions on the matter proposal" presented to the United Nations in September until all offers from the rest of the trip had been fully 1979. Since its first presentation-which Lopez Portillo analyzed back in Mexico. left deliberately vague-there have been extensive po­ lemics both inside and outside Mexico between those Mexico's nuclear program who favor Club of Rome-style "soft technologies," and The beginnings of the Mexican nuclear program date those who see nuclear power as the fundamental solution back, as they do in numerous developing sector coun­ to the world energy crisis. Now Lopez Portillo has come tries, to the period of the Atoms for Peace program of firmly down on the side of the latter faction. Dwight D. Eisenhower. Lopez Portillo backed up his strengthened verbal This introduced training and research facilities in the commitment to nuclear energy by also making it one of country. the central topics of his discussion with the heads of state In 1964, as noted by the Mexican daily Th e News this he is visiting. Significantly, he will be touring three of the week, it was French Presid6nt Charles de Gaulle who major countries-Sweden, France, and Canada-that brought with him a proposal for the first commercial have made nuclear offers to Mexico. In fact, the entire nuclear reactor on his Mexican state visit. The timing trip has been viewed by some observers as a virtual worked against the idea, however. Mexican President "shopping trip" for nuclear technology. Adolfo Lopez Mateos was at the end of his term and The Mexican government recently commissioned nu­ incoming president Diaz Ordaz did not mov� strongly clear fe asibility studies from companies in several coun­ on the project. tries-including the three mentioned above. The French It fell to then-Federal Electricity Commission direc­ company Sofratome released a study stating that Mexico tor Jose Lopez Portillo in the early 1970s, under Luis was in a very "good position" to go ahead with the major Echeverria, to take the plunge and begin the construction nuclear program it plans to carry out between 1990 and of commercial reactors. These were the twin Laguna 20 15. Mexico plans to bring on line 2-3 9OO-MWunit s a Verde light water plants on the Veracruz coast, each 650 year between 1990 and 2000, 3 per year over the next MW. The technology was contracted through the U.S. decade, and four yearly after the year 2010, according to firms GE and Westinghouse, with Ebasco participation Sofratome. on the construction management side. The French leg of the Mexican president's trip is Delays slowed construction to a crawl, until in 1977 viewed as particularly important from the nuclear stand- Lopez Portillo, as President, ordered a priority effort to

34 International EIR June 3, 1980 complete the project. Inauguration is now slated for late water CANDU reactors-alleged by the left to be the 1982. more "nationalist" course-or French light water reac­ Simultaneously Lopez Portillo mandated a sweeping tors. Environmentalists and other antigrowth forces have upgrading of the infrastructure of the Mexican nuclear argued nuclear is not necessary at all because of Mexico's effort, under the direction of Mexican Nuclear Energy enormous oil reserves. Institute chief Francisco Vizcaino Murray. The result Outside the country, Mexico faces unremitting hos­ was the 1979 nuclear energy law which established an tility from the United States. James Schlesinger unilat­ enhanced research and training capability and a separate erally embargoed deliveries of enriched uranium to Mex­ entity charged with locating, mining, and refining Mex­ ico in January 1978, imperiling the Laguna Verde con­ ico's hefty uranium reserves-Uramex. struction timetable. The deliveries were only resumed a During the same years the government officially year later when Lopez Portillo and Giscard included a adopted the goal of 20 nuclear reactors by the year 2000, clause in their March 1979 joint communique threaten­ and began preliminary work on siting for the firstunits . ing that France would make good on any deliveries sabotaged by Washington. Political problems The depths of the continuing Mexican distrust of with U.S. American motives and interests was shown in the midst With the stage thus set, the question of actually of the European trip as recently as last week. Emerging signing the contracts for the next plants has been subject fr om a private meeting with U.S. energy secretary Dun­ to acute political pressures both within and outside the can in Paris, Pemex director Jorge Diaz Serrano instruct­ country. ed a spokesman to make clear that "any bilateral, region­ Within the country, there has been considerable de­ al or continental criterion is inadequate to provide effec­ bate over whether to proceed with the Canadians' heavy tive solutions to the energy crisis of our times."

considering with great interest, both for our own development and as an aspect of the world energy 'The 21st century: plan ... which is based on the need to prepare the transition from the petroleum age to the age of other The nuclear century ' energy sources which will replace it, the most impor­ tant of which is evidently nuclear. Lopez Portillo made the fo llowing statement to Le Mexico, which five years ago imported oil and Monde May 16 before departing fo r France. decided to build nuclear electric installations, now is sure of the advantages obtained from bringing in Nuclear energy is a question which we want to link technologies, and naturally we are interested in what with the world energy plan we proposed: take advan­ France offers, but we are also open to other countries. tage of the time before oil runs out-fortunately in ... We judge that large-scale projects must necessarily our case that is a very long time-in order to move use enriched uranium. We believe that large-scale into a new epoch; and I believe that the 21st Century projects must necessarily use enriched uranium as will be the nuclear century. As soon as the problems things now stand; less ambitious projects, boiling are overcome, and it seems {o me that they are ex­ water. tremely exaggerated by the defenders of the environ­ And I will visit Canada, and I'm sure we'll discuss ment, there will be no choice but nuclear. these things there. Mexico is thinking that in the ,immediate future, during the next few decades, supe­ A t a press conference in Paris, May 17, the Mex ­ rior technologies will certainly be developed-they ican president was asked about nuclear agreements are now being worked on in the laboratories and are with France. approaching commercial feasibility; ... industrial-lev­ el applications are being studied. Mexico is interested We have not signed any contracts. We have agreed in obtaining these technologies ... and is signing to study relations in this energy field which Mexico is agreements to do so with the countries having them.

EIR June 3, 1980 International 35 by the late Nelson Rockefeller. Two Georgetown Uni­ CARIBBEAN versity pundits, James Theberge and Roger Fontaine, wrote its Latin America Report. Reviewing varied scen­ arios for interactions between the United States and Cuba based on the "carrot and stick" approach, the CCC Report concluded: "Making Cuba the Socialist camp's firsttrue deserter is good policy because it is a possibility ... Cuba is a test case for the United States." Roger Fontaine, now an adviser to the Reagan cam­ paign, restated that policy in a March interview, this time u.s. Cuba policy with a sense that plans had moved into the operational phase. Cuba must be "put on notice that they either break their military alliance with the Soviet Union, or leads to war pay the price," intoned Fontaine. "We should turn the screws tighter and tighter against Castro, and then come by Gretchen Small in with a substantial carrot." The current economic crisis "gives us opportunities to help Cuba out if Cuba plays Tensions between Cuba and the United States, after a the game," he said. near military incident between them last week, were During the last week, the prospect of pulling Cuba momentarily cooled yesterday when Cuban Foreign away from the Soviets emerged in the press. "One ulti­ Minister Isidoro Malmierca delivered an officialapology mate goal inevitably asserts itself," wrote Kissinger-bud­ to Wayne Smith, head of the U.S. Interests Section in dy Joseph Kraft in the Washington Post May 15 in an Havana. Cuban MIGs had "buzzed" a U.S. military article on the refugee situation, "Making Cuba Desert helicopter while it was searching for four missing Baha­ the Bloc." How? "A new bout of confrontation may manians in the Bahama Straits. The apology included a open one route to that goal," Kraft opined, but "perhaps promise that no more such incidents would occur, ac­ it would be better to give Cuba the kind of help that cording to the New York Times. facilitates the shedding of a Soviet connection that is U.S. officials were quoted as "pleased" over the becoming increasingly distasteful-even to Castro." apology. The United States has decided to "send them a The consequences of this policy are not unknown to signal, too," an unnamed State Department official re­ the Trilateral crowd, whether of the Carter or the Reagan portedly stated. "We want to see if they will bite on this, stripe. In one of the wildest scenarios to appear so far, and be a little more forthcoming on some of the other Washington Post columnist Ernesto Betanco urt called issues that divide us from Cuba." this week for Washington to begin working out "op­ The resolution of this one immediate military trip­ tions" to face the Soviets' inevitable response. Speaking wire, however, has not pulled Washington back from the of the "disintegration" of the Castro regime, Betancourt brink of confrontaion in the region. The high density of warned that the United States "must be prepared to face Cuban and U.S. military units and equipment circling in the eventuality of a Soviet move to replace Castro," tight proximity to each other a few miles off the coast of noting the likelihood that Soviet fo rces may be used. Florida, in the climate of extreme hostility between the "That is the moment for which we had better start two countries, makes that area a ticking timebomb for preparingcont ingency plans," Betancourt concluded. another, more dangerous incident and an outbreak of war that would bring in Soviet forces. Havana spring? The present situation, however, is the result of the In effect, the Carter administration has been carrying Cuban policy adopted by the Trilateral Commission . out an undeclared war against Cuba, using every covert before it installed Jimmy Carter in the White House. and overt option available. The desired outcome is the Cuba has been targeted to become the "test case" inter­ eruption of a new "Havana Spring," like the famous nationally, to prove a Soviet ally can be pulled out of the "Prague Spring" in 1968 where British destabilizations Soviet orbit and into the "Western fold." This would be of the Czechoslovak regime led to the flowering of a the signal for a wave of uncontrollable dissension and hippy-oriented opposition to the ruling regime. turmoil within the Warsaw Pact nations. The "soft"and The war against Cuba has ranged from economic "hardline" swings in Washington policy over the last sabotage inside Cuba to biological warfare against its four years have remained within that policy framework. crops, military operations in Cuba's immediate environs, The policy was stated in a 1975 report on Latin revival of Cold War propaganda, and the instigation of America by the Commission on Critical Choices, headed internal unrest. Even intelligence agencies friendly to the

36 International EIR June 3, 1980 into a virtual international deployment center of guerril­ la-styled "radicalism," particularly in the Third World. Following the beginning of the U.S. economic blockage and the Bay of Pigs, Cuba encouraged "guerrilla strug­ gles" for "national liberation" across the developing sector, a strategy exemplified by Che Guevara's travels and finaldemise in the Bolivian mountains . . Under the impetus of this suicidal course, Cuba became a hub of the "ultraleft"antigrowth radicals: K.S. Karol, Rene Dumont, Regis DeBray, Jean Paul Sartre, Caribbean Sea "" and so forth. Today these same men support and "ad­ vise" the Iranian experiment in a return to the Dark Ages and control terrorism of the Red Brigades type. Nearly successful in setting up a terrorist-guerrilla international A-Key West, depot for flood of Cuban refugees with Cuba as its launching point in 1968, these networks B-Port of Mariel, point of departure for Cuban refugees hoped to get Cuba to adopt a full "Chinese" strategy C-Ragged Island, Bahamas, site of Bahamian Coast Guard vessel sinking by Cuban MIG plane. internationally, pushing labor-intensive agriculture, cul­ tural revolution, and anti-Sovietism. United States view the steady flowof refugees from Cuba Castro's earlier stupidity and the immediate success as the work of the Central Intelligence Agency. ofthat little project was halted ironically by the develop­ State Department officials feel their operations ments of Prague Spring itself. When Soviet troops rolled against Cuba have been successful, yesterday's Washing­ into Czechoslovakia in 1968, Castro made a near 180- ton Star noted. "The Cuban economy is stagnant, living degree policy aboutface, coming down hard on the standards have declined, and people are demoralized." Czechoslovak destabilization and the networks that ran Rumors are circulating of a serious "debate" among it. Cuba's leaders over how to respond to Carter's unde­ Most taken aback were several hundred "radicals" clared war. Differences reportedly exist between Defense attending an international conference in Cuba. Intending Minister Raul Castro, a pro-Soviet hardliner, and his to use Cuba as the springboard for an international brother President Fidel Castro who allegedly favors a Jacobin campaign against the Soviet Union, the assem­ more "radical" Third World approach. bled agents and fools were started as Castro leveled a But how far advanced is the Brzezinski-run strategy blistering attack on the Czechoslovak "radicals" and for a "Havana Spring"? their backers as "agents of imperialism." Castro defend­ In the past weeks millions have marched in support ed the Soviet action as strategically necessary. of the Castro government. Intensely nationalistic after Shortly thereafter, Rene Dumont, Regis DeBray, et twenty years of living under near siege, one-half the al were booted out of Cuba -under the charge of being population of Cuba-an estimated 5 million people­ "CIA agents." were scheduled to again demonstrate that support again Apparently Fidel Castro has so far missed the parallel today. between 1968 and now and is seeking an alliance with the The country is preparing for war, both psychologi­ Khomeini regime, whose agricultural adviser is Dark cally and militarily, throwing already scarce resources Ages advocate Rene Dumont! Perhaps he should have into military preparedness. Castro announced May 1 paid more attention when Foreign Minister Malmierca that plans are being made in case of a new naval blockade was received by Bani-Sadr in Iran with the message that that would sever the country's oil supply lines. before speaking of mutual defense with Iran, Cuba must However, operating from a paranoid "fortress men­ denounce the Soviet action in Afghanistan. tality" in response to the real threat against Cuba, Presi­ It was the strategic significance of the Prague Spring dent Fidel Castro in particular has retreated into the caper, where NATO forces came very close to pulling worst excesses of his Third W orldist radicalism in an off a fullscale destabilization in the Warsaw Pact na­ attempt to findallie s against the United States. Castro's tions, that brought Castro up short the last time around. stated support for Khomeini in Iran and his cooperation Trilateral Commission planners who want a Cuban and support for Puerto Rican terrorism exemplifiesthe break with the Soviet Union, shattering the Cuban problem. Agents linked to the Society of Jesus who have economy and its political structure, are forgetting the worked their way into the Cuban government, are feed­ dominant "realist" factor in the Cuban government. ing the "radical" tendency. Their strategy is much more likely to put them in a Once before, British intelligence efforts turned Cuba showdown with Cuba.

EIR June 3, 1980 International 37 MIDDLE EAST

Is the end nearfo r the Khomeini regime? by Robert Dreyfuss

The Islamic Republic of Iran and the Ayatollah Kho­ Iranian middle class that seethes with hatred for the meini might not last out the next few months. perverse mullahs of the Khomeini clique. According to According to Iranian sources, the exile opposition to Iranian sources, the temperature is right for a mass the regime of Khomeini and his entourage is preparing uprising that would spread in ripples throughout the to deliver the coup de grace to the tottering government country as early as the summer of 1980. of Abolhassan Bani-Sadr and the ayatollahs of the Islam­ Earlier this month, according to Iranian sources, ic Republican Party. With each passing day-unreported broadcasts of a newly established Radio Free Iran began by the Anglo-American press-the anti-Khomeini forces beaming into the country from a transmitter believed to are building up their strength inside the country from have been erected in neighboring Iraq. In one of the first bases in continental Europe and the Middle East, espe­ boradcasts, General Oveissi-former military governor cially Iraq, and making the alliances needed to topple the of Teheran-told to the Iranian people to prepare for Khomeini regime. "difficultdays ahead" and to store up foodstuffs, water, At the same time, a multi-level factional struggle has and medicine for the coming struggle. Soon, he said, erupted in Teheran over the past fe w weeks that, accord­ Iran would be rid of the Khomeini regime. Indicative of ing to Iranian and American sources, will shortly lead to the fragile hold of that regime on the population, many the downfall of President Bani-Sadr. Outflanked by his thousands of Iranians all over the country went on a factional enemies, Bani-Sadr is losing a rearguard battle panic buying spree to prepare fo r the counterrevolution, to save his presidency to a coalition of the so-called creating shortages of necessary goods in several cities. "Syrian faction" in Iran and the Islamic Republican In Azerbaijan, whose capital, Tabriz, is the second Party of Ayatollah Beheshti and his clerical mafia. largest city of Iran and the political center for the The result of the external pressure on Iran and the populous northwest, former National Iranian Oil Com­ threat of an organized uprising by the Iranian population pany Chairman Hassan Nazih is reportedly organizing an against Khomeini, combined with the fr actious political extensive political network opposed to Khomeini situation in Teheran, is that the very same Anglo-Amer­ throughout the whole province, which comprises as ican intelligence circles that put Khomeini into power in much as one-third of Iran's entire population. Many of 1979 are now themselves deeply divided and uncertain Iran's military commanders and moderate Ayatollah about how to proceed. While the secret services of Great Shariatmadari, now under house arrest in Qom, come Britain and the United States are still fu lly committed to from Tabriz and other parts of Azerbaijan. maintaining the Khomeini regime in power, at the same In a recent interview in Le Monde, Nazih declared time they have begun to cast about fo r strengthened links that his goal is the establishment of a "secular, republi­ with the exile opposition in order not to be caught short can" government to replace that of the mullahs. Accord­ if and when Khomeini's clique is ousted from power. ing to Iranian sources, N azih is working closely with exiled Prime Minister Shahpour Bakhtiar, the last Irani­ Bakhtiar and the generals an government chief before the revolution. Bakhtiar, Inside Iran, a clandestine army is being assembled who presently lives in Paris, has made several trips to among the dissident tribal and ethnic groups in the Baghdad, Iraq, for strategy sessions with other Iranian provinces, among the army, and in the once prosperous leaders to prepare fo r the actual counterrevolution.

38 International EIR June 3, 1980 Rallying to the support of Bakhtiar and Nazih, in in a show of hatred for the United States and the Shah. particular, are the leaderships of the Iranian Arabs, the Naturally, the sudden show of hostility to an "outside Kurds, and the Azerbaijanis, as well as other tribal and enemy" caused the Khomeini opposition to lose the ethnic blocs including the Bakhtiaris, the Lurs, and the momentum needed for an uprising to develop. Qashquis. Further, according to Baluchi sources in Second, nations like Iraq and the Bakhtiar forces Western Europe, within the next two to three weeks a were put in a difficult position to the extent they planned major revolt along the lines of the Kurdish civil war will any intervention militarily from the outside. In such an erupt in Baluchistan in southeastern Iran near the Paki­ event the hostages would likely have been killed by the stani border. Khomeiniacs, with the blame falling on the forces about The Kurds, reported to be led by General Palizban of to become the new government. Moreover, U.S. and the old Iranian armed forces, are engaged in what can British intelligence agencies, for the same reasons, could only be called a full-scale war against the Khomeini openly, so to speak, oppose the overthrow fo Khomeini, regime. Earlier this month, the latest attempts to mediate and undermine the opposition's efforts to prevent "dan­ the conflict broke down and heavy fighting broke out ger to the hostages." again. The general staff of the Iranian armed forces, Leading Iranian sources have indicated that they which is unwilling to pursue the campaign against the believe that this was the chief reason that the Carter Kurds, has seen itself shunted aside in favor of the fascist administration invited the Shah to America and spon­ Revolutionary Guard, which has borne the brunt of the sored the takeover of its own embassy, to protect the fightingin Kurdistan. In mid-May, several officersin the regime of the Ayatollah Khomeini. army were summarily executed for refusing to obey Both Iranian and European sources make the same orders and lead attacks on the Kurdish rebels. point concerning the supposed U.S. attempt at militarily In Khuzestan, inhabited by Iranian Arabs, the level "rescuing" the hostages last month. Of course, every of civil unrest and sabotage actions is rising significantly, feature of the operation, as both European and American with its major effect beingthe sharp reduction in Iranian sources point out, was predesigned to fail as far as a oil output, now down to less than 500,000barrels a day, rescue was concerned. Now, top French officials have compared to more than 4 million last fall and over 6 been quoted by the May 17 Washington Post as saying million barrels per day under the Shah. That has had a that the "fiasco" of the U.S. action against Iran "stopped dramatic impact on the Iranian economy. Virtually every the counterrevolution" against Khomeini. sector of the economy has ground to a halt, and shortages It is EIR 's information that Israeli intelligence, which of meat, milk, and other goods are widespread. The army controlled the Shah's air force officer corps and thereby of millions of the unemployed is swelling every day. played a key role in bringing the Ayatollah to power in Publicly, the Iraqis have let it be known that they are February 1979, has also been involved in operations . willing to support the opposition to Khomeini, giving against the Bakhtiar opposition to keep Khomeini in political support to the Azerbaijan rebels and arms and power. The same May 17 story in the Post quoted exiled ammunition to the Kurds and the Arabs. In addition, Iranian sources complaining that Israeli intelligence, several Iraqi Shiite leaders including Ayatollah Kho'i are pretending to offer its support to Iranian groups seeking in clandestine contact with several ayatollahs in Iran who Khomeini's overthrow, is actually helping to "sabotage" are said to be prepared, at the right moment, to make a any plans by the opposition "that displease Washing­ series of announcements supporting the anti-Khomeini ton". opposition. In such ways, the Carter administration which According to the apparent timetable of the revolt, the brought Khomeini to power and has solicited and ex­ exiles expect the rebellion to begin in earnest in late ploited the hostage crisis to keep all of Europe on the spring or early summer and then �nowball into general verge of economic disaster, has placed as many obstacles strikes and finally a popular upri'sing. That process ac­ as it can muster in the way of any operations from within tually began during September and October of 1979, but or outside Iran that would overthrow the made Ayatol­ it was halted with the seizure of the 53 U.S. hostages by lah's regime. the Khomeini regime in November 1979. That act, per­ Nevertheless, tension does remain between the civil­ petrated with the full knowledge and encouragement of ian, republican leadership of the opposition movement the Brzezinski National Security Council and the U.S. and the military. Bakbtiar and Gen. Oveissi, although Department of State, was calculated to provide a pretext they have met, do not get along, and it is felt that the for propping up the Khomeini regime. generals around Oveissi are less principled and more The U.S. government's solicitation of the embassy ready to work with Anglo-American circles. One Iranian seizure by inviting the Shah to the United States created source says that within a few months of the establishment a political rallying point for the Khomeini regime, and of a new Iranian regime the civilians would be shunted permitted the Ayatollah to mobilize the Iranian masses aside by the generals in a de facto military coup.

EIR June 3, 1980 International 39 the Anglo-Americans against the Soviet Union over Afghanistan. That operation, however, collapsed in Feb­ ruary when it was undercut by the Beheshti-IRP faction which convinced Ayatollah Khomeini not to go along. Bani-Sadr proved unable to win enough Iranian support for his proposed deal. Now, despite repeated urgings from the British, Bani­ Is the end for Sadr has been incapable of even putting together a government, and Iran is still without a prime minister and a cabinet. Bani-Sadr near? Moreover, the recent parliamentary elections, which resulted in a majority fo r the IRP, have given Beheshti a by Nancy Coker political power base upon which to relaunch his bid fo r power. In this context, Beheshti and the mullahs around "The overwhelming majority of the people want a prime him-including Ayatollah Khalkhali, the head of Iran's minister who represents order, security and moderation. Muslim Brotherhood, and the radicals around Ahmed They are gradually getting fed up with personal and Khomeini, the son of the ayatollah, Ayatollah Monta­ group anarchy and with the tendency that wants to zeri, and the so-called "Libyan faction"-are much clos­ consolidate murder instead of decisiveness." With those er politically to the Brzezinski faction in Washington plaintive words, Iranian President Abolhassan Bani-Sadr than the relatively more sane Vance-Carrington clique. pleaded his case in an interview in his own newspaper, With Foreign Minister Ghotbzadeh trailing along be­ Islamic Revolution. In the interview, calculated to answer hind them, the radicals are building up for an immediate the Islamic Republican Party led by Ayatollah Beheshti, confrontation with the Soviet Union over Afghanistan Bani-Sadr denounced what he called attempts to put the and with Saudi Arabia and Iraq in the Persian Gulf, as country under "religious fascism" by groups "seeking to Brzezinski seeks. reestablish political despotism under the guise of reli­ Last week, in the firstacti on of the attempted come­ gion." back by Bani-Sadr, he announced the dismissal of Aya­ Beheshti, said Bani-Sadr, is trying to place Iran under tollah Khalkhali as revolutionary judge. a fascist and "obscurantist dictatorship." To build a base for himself, Bani-Sadr has been But the interview represented the crying out of a seeking to forge alliance with both the left and the politically dead man. Almost entirely lacking a political military. Concerning the latter, he let it be known that base when he was elected, Bani-Sadr is now scrambling his choice fo r prime minister was Admiral Ahmed Ma­ to put together a coalition that can withstand the intense dani, who is very close to British Petroleum, and who has pressures of the IRP mafia and Beheshti. His chances of a reputation fo r being relatively anti-clerical that gains success are rated nil. Increasingly, Bani-Sadr is being him support among the middle class. The Financial pushed into a bloc with the Iranian left,in particular the Times, reporting on Bani-Sadr's activities, said that Bani­ Islamic Mujaheddin party, and fu rther and further away Sadr �'has correctly tapped the public mood of intense from the mainstream of the country. To that extent, weariness with revolutionary confusion and the intoler­ Zbigniew Brzezinski and the National Security Council ant swaggering ofthe mullahs." are ready to dump Bani-Sadr in favor of the Beheshti When Beheshti's IRP attacked the armed forces for IRP faction. trying to stage a coup d'etat with the "cooperation of FifthColumnis ts, Free Masons, British intelligence, and London's Bani-Sadr Israeli intelligence," and when Khalkhali also accused Since his election in January, Bani-Sadr has been the the army leadership of plotting with the CIA to over­ darling of the Anglo-American circles associated with throw the regime, Bani-Sadr defended the integrity of Cyrus Vance's State Department and Britain's Lord the armed fo rces. According to Iranian sources, Bani­ Carrington and the Royal Institute for International Sadr desperately needs to build up the regular army as a Affairs. political counterweight to the Revolutionary Guard, When he was elected, he was viewed as the Great commanded by Abu Sharif of the so-called "Syrian White Hope by the Vance-Carrington faction. Immedi­ faction," including Ghotbzadeh, Defense Minister ately after his election, Vance and Carrington put togeth­ Chamran, and acting Prime Minister Tabatabai. He thus er the United Nations Iran Commission whose mission seeks to defend the army against its critics. was to seek a way to reconcile the United States and Iran Partly this is designed to prepare the way, eventually, and have Bani-Sadr lead Iran into a de facto bloc with for an actual military alliance between Iran and NATO.

40 International EIR June 3, 1980 But for now, Bani-Sadr is just trying to stay alive politi­ cally. This has taken him so far as to defend the army and the air fo rce when members of the IRP noted that the U.S. helicopters on the ground in Iran, abandoned after the aborted American raid, were bombed by the Iranian Air Force, thus destroying precious papers and evidence concerning the raid. Iran embraces The Stanford mafia In the pages of the Iranian press, the IRP has taken Mghan rebels to attacking the so-called "Stanford mafia"around Bani­ Sadr. This group derives its name from the fact that many, if not most, of them have been trained at Stanford by Judith Wyer University in California. Bani-Sadr is well-known for statements following the Iranian Revolution that "Teh­ The Islamic Conference of Foreign Ministers ended this eran is a monstrous parasytical city ..." which "I propose week sharply divided over the issue of challenging Soviet to depopulate." He called for the Cambodianization of military presence in Afghanistan. Iranian Foreign Min­ Iran "by persuasion and not by force." Bani-Sadr's ister Sadegh Ghotbzadeh led the call for an Islamic prime intelligence contacts in Europe are with the an­ opposition to the U.S.S.R., with Pakistan's military thropology and sociology departments of the Sorbo nne strongman General Zia ul-Haq supporting him. They and the Ecole Pratique des Hautes Etudes of Paris. He is were opposed by Syria, Algeria, Libya, South Yemen a protege of French radicals, Jean Pierre Vigiers, Rene and the Palestine Liberation Organization. Dumont, and Michel Foucault who worked with Jean Ghotbzadeh issued the most virulent anti-Soviet dia­ Paul Sartre in running French enviromentalist and ter­ tribe at the conference and stunned the participants from rorist networks. In Britain, Bani-Sadr is associated with the 38 Islamic nations when he paraded eight Afghan the Bertrand Russell Peace Foundation and in Italy, with Muslim insurgents into the conference hall as part ofthe the Lelio Basso Foundation which works closely with the Iranian delegation. Ghotbzadeh called for full backing Mujaheddin. by the Islamic nations of the Muslim rebels' insurgency According to travelers recently returned from Iran, against the Soviet-backed government of Babrak Kar­ numerous government ministries are presently staffed mal. In his speech to the gathering he called the Soviet with young Iranians who were educated either at Stan­ invasion of Afghanistan "a flagrant violation of inter­ fo rd University or Georgetown University in Washing­ national law carried out in total disrespect for the sover­ ton. eignty and territorial integrity of Afghanistan." F or every step that he takes toward bringing Iran Ghotbzadeh later told the press that "for us the liberation into alignment with the Anglo-American camp, Bani­ of Afghanistan is not less important than the liberation Sadr is thus fu rther tarred by the IRP-Beheshti crowd as of Palestine." He warned that if the hostilities do not an American "agent." cease between the Muslim rebels and Soviet occupying According to sources close to Bani-Sadr, the Iranian troops, "we have no choice but to help them with every­ president is also seeking to form an alliance with the thing we have.. .. We will go all the way" with the Afghan Mujaheddin. Recently, the leader of the Mujaheddin, rebels. Massoud Rajavi, served as a mediator between Bani­ Western diplomats were surprised by Ghotbzadeh's Sadr and the rebel Kurds, although the mission failed to vitriolic denunciation of Moscow in view of a newly ' reach any positive result. Rajavi'� international connec­ agreed upon Iranian-Soviet trade package. One source tions reveal his close links to the same political circles noted that Iran "has never taken such a blatant public that, in the days before the revolution, backed Bani-Sadr. stance against the U.S.S.R." Attacking the U.S. raid into Iran last month, in an Also a little unnerved by Ghotbzadeh's performance interview in an Iranian newspaper, Rajavi made an ar­ was Pakistan's General Zia, whose country hosted the gument that sounded exactly like something that Cyrus affair. In his keynote speech, Zia issued a more low key Vance might have said just before he resigned. The denunciation of the Soviet occupation of Pakistan's hostage-taking episode in Iran "enabled some forces in neighbor and in this context urged the conference to the United States to overcome the public'S Vietnam back his plan to create an "Islamic Army" to contain complex, push moderate elements aside, ensure that "the Soviet threat" to the region. The Islamic govern­ Brzezinski's line prevails over Vance's, isolate Iran ... ments of Pakistan and Iran are the prime client states of and blackmail the European allies." Great Britain in its effort to forge a NATO-controlled

EIR June 3, 1980 International 41 Islamic military pact against the U.S.S.R. Britain's For­ Babrak Karmal. Pakistan's Foreign Minister Agha . eign Minister Lord Carrington made public such a plan Shahi and other speakers made a concerted effort to last month in Washington following talks with President center the conference on the issue of the Arab-Israeli Carter. Britain and its Islamic fr iends have attempted to conflict, Palestinian rights and returning the city of use the "threat of superpower aggression" in the strateg­ Jerusalem to Islamic control in order to rally the confer­ ic Persian Gulf-Indian Ocean region as justification for ence to unity. the Islamic pact scheme. The Afghanistan rebels were met with reserve by Unlike Ghotbzadeh, Zia, however, has not flaunted most of the attending Islamic delegations. Abdul Rah­ his support for the Afghan rebels, knowing such a cava­ soul Sayaf, the head of the Islamic Alliance for the lier action might yield direct Soviet military reprisals Liberation of Afghanistan, spoke to the conference's against his shakey regime. Iran got a taste of such plenary session but later told the press that "unfortu­ reprisals yesterday when Soviet helicopters flew across nately, the conference did not do what we expected." He the Iranian-Afghan border and attacked a border village also bemoaned the fact that the wealthy Islamic oil in northeastern Iran. This was the first military adventure producing nations such as Saudi Arabia and the other launched from Afghanistan since the December Soviet gulf states have not been forthcoming in financially invasion and the first time since the 1946 Soviet occupa­ backing the rebels. At this conference, unlike the January tion of northern Iran that the Soviets have made any conference of Islamic Foreign Ministers, there was no incursions there. resolution condemning the U.S.S.R. Iran's border with Afghanistan has been one route A strong undertone of the conference was the build­ for smuggling logistical support to the Muslim insur­ ing rivalry between the Iranian regime and its neighbor­ gents in Afghanistan. And Pakistan has become a prime ing Arab states. Ghotbzadeh backed up his call for a conduit for Chinese arms shipments since Zia worked Pan-Islamic challenge to Moscow's presence in Afghan­ out an agreement with Peking during a recent visit there. istan with threats to the leadership of the Arab world. Ghotbzadeh threatened that Iran will export revolution A cosmetic reconciliation to moderate Arab regimes, notably Saudi Arabia, who During the last day of the conference Pakistan made refuse to back the Afghanistani insurgency as well as a proposal to the conference that a committee of Islamic fund a Pakistani military build up. Riyadh's hesitation Foreign Ministers be formed to help resolve the Afghan has brought strong criticism from the London Times crisis by facilitating a Soviet troop withdrawal. Earlier, May 19, a cloaked statement from the Thatcher govern­ there had been reports in numerous European newspa­ ment. pers that Iran and Pakistan would jointly attempt media­ Le Figaro reported May 19 that Ghotbzadeh had tion in Kabul. announced that Iran is prepared to export Islamic revo­ But according to senior diplomatic sources, the only lution through the Persian Gulf "from Kuwait to the country with the credibility to work out such an agree­ Straits of Hormuz" if the Arab world does not back up ment with the Kabul government and Moscow is India. his anti-Soviet stance. Last month he toured several Arab The Indian Foreign Minister Ram Sathe arrived in Ka­ nations. The trip, just days fo llowing the U.S. invasion bul for talks of the 22 or May, the same day the Indian of Iran, was calculated to provoke strong anti-U.S. Information Minister met with Gromyko in Moscow. sentiment aqd with it, militance against the Arab gulf The French government is known to be heavily involved regimes traditionally associated with Washington. behind the scenes in such a diplomatic effort, the baseline Concident with Ghotbzadeh's warnings, Iran is cur­ of which is a fo ur-point plan fo r neutrality and peace in rently conducting naval maneuvers in the gulf and the the Indian Ocean region worked out jointly by India's Oman Sea. European sources report that Iranian vessels Prime Minister Indira Ghandi and French President were seen Close to the Shatt al Arab area off Iraq's Giscard d'Estaing earlier this year. coastline, a region which until 1975 was a source of Pakistan's proposal is primarily aimed not at resolv­ conflict between Iran and Iraq. Iran launched these ing the Afghanistan problem, but at unifying the confer­ maneuvers from the Abu Musa island in the gulf, the ence. Arab sources noted that Pakistan was even reluc­ center of dispute with the Arab emirate of Bahrain, a tant to make the Afghanistan situation such a vital issue strong ally of Saudi Arabia. at the conference, knowing it would seriously factionalize It is said that the swashbuckling Ghotbzadeh nearly the participants and make Pakistan's key proposal, the provoked a fistfight with the Foreign Minister ofIraq at Islamic Army plan, that much more difficultto sell. Syria the conference. Tensions have been high between Bagh­ and the PLO, who reportedly almost walked out fo llow­ dad and Teheran in recent months, since Iraq, with ing Ghotbzadeh's display of the Afghan insurgents, covert support from Saudi Arabia, has been backing called on the conference to recognize the government of various anti-Khomeini movements in Iran.

42 Internatiomil EIR June 3, 1980 ASIA

Japanese security, Korea and one Richard Sneider

by Daniel Sneider

Over the past fe w weeks. the long-simmering battle fo r the In direct language, this means that the Japanese will military and political fu ture of East Asia has broken out become the cornerstone of the Eastern NATO alliance of into the open. Th e collapse of the Ohira government in the V.S., Great Britain, China and the two Koreas-and Japan. the chaos reigning in South Korea. the launching of sitting ducks for Soviet missiles anytime the V.S. decides an ICBM test missile by China. all relate directly to to set up an anti-Soviet provocation in that part of the whether East Asia will be reshaped-in some cases fo rci­ world. bly-into a military bloc aligned against the Soviet Union. But Sneider, who was ambassador to South Korea led by the Brzezinski fo rces in the Carter administration. from 1974 to 1978, and who prides himself on his repu­ In this special report on Asia. EIR Editor-in-Chief tation as "Japan's best friend in the V.S.," wants to keep Daniel Sneider brings some unusual insights to the current all talk about the "obvious" to a minimum. He loudly political turmoil in both Japan and Korea. making clear chastised George Ball in a Wall Street Journal opinion the strategic policy underlying the recent developments in column two months ago because Ball insisted on "push­ both countries. In an accompanying piece. the prospectsfor ing" the Japanese to take a "regional defense role." "We the upcoming Japanese elections are discussed. especially simply want to point out the situation and leave it to the the prospect that the current drift in Japan toward virtual Japanese to draw the conclusions," Sneider said recently. integration into NA TO will be reversed. The set-up The key to unlocking the secret behind the current The set-up to get Japan to join this Eastern NATO political upheavals in South Korea lies neither in Seoul, strategy has ranged from the Lockheed scandals, to nor Moscow, nor Peking, nor even Washington, D.C.'s economic warfare, to oil blackmail, to Korea. It is in the Foggy Bottom. Oddly enough, it is to be found instead Korea operation where "the Ambassador" -as Sneider's in the hands of both 'retired" State Department careerist friends call him, possibly in consolation for the post to Richard Sneider and Kiichi Saeki, president of the Japa­ Japan which he never got-played his first key role. nese Nomura Research Institute-the major organizers Sneider's modus operandi closely parallels that of of an unofficial State Department conference to be held Henry Kissinger in the Iran crisis. Loudly professing his in Tokyo in mid-June. disdain fo r the "radicals" and "human rights advocates" The conference is entitled "Security Conference on such as Zbigniew Brzezinski, Sneider maintained a close Asia and the Pacific," which has the ironically appropri­ friendship with former Korean President Park Chung ate acronym-SCAP-of the Allied postwar command Hee, just as Kissinger does with the Shah. From the over Japan. Its aim, according to Sneider, is to explore "inside" Sneider was then able to coordinate with the the global defense problems arising from the "instability "outside" destabilization effort against the Korean in V.S. Middle East oil supplies," and the "vacuum" in leadership. He told this writer personally that it was Asia which will be caused due to V.S. military deploy­ directly as a result of his own quiet personal diplomacy ment into the Persian Gulf. The "obvious point," Sneider that key opposition leader Kim Dae Jung was released tells interviewers, is that the Japanese are going to have from prison after Park's death. to move in militarily to fillthe vacuum. And why, like the Henry Kissinger who bugged his

EIR June 3, 1980 International 43 subordinate's phones, including Sneider's, would Snei­ ing Japan's military production over the traditional 1 der work to undermine his own and the V.S.'s staunch percent limit, including in providing supplies to China. allies in Korea? Because those staunch allies-including Leaks from Ohira's recent meetings with Carter in Wash­ the current Korean strongman Lt. General Chun 000 ington say that the Japanese prime minister also agreed Hwan-adamantly oppose NATO strategy of allying with Carter that the power of Korean strongman Chun with the Chinese lunatics for a suicidal war against the "had to be curbed." Soviet Vnion! While the vote of no confidence which greeted Ohira The oppositionists, on the contrary, like Kim Dae on his return home could derail this scheme, it is currently Jung in Korea and the "anti-Soviet Islamic fundamen­ being used fo r a Trilateral Commission drive to break up talists" in Iran are prepared to join that insane policy. the industry-connected ruling party (LOP), and soften The Baltimore Sun quoted a Korean opposition leader up the country for a "liberal" government more amena­ universally identified as Kim Dae Jung in an article two ble to Ohira's pro-China aims. months ago to that effect. The V.S. should put me in Sneider's co-organizer of the SCAP conference epit­ power, he said. I can make the deal with the North omizes the forces within Japan who are in cahoots with Koreans which would be beneficial to the V.S. strategy the NATO crowd. of an alliance with China. Saeki is a leader of the London-based International Institute of Strategic Studies which supervised the New York-based Council on Foreign Relations scheme for establishing NATO as the global policeman of the 1980s. "The Korea destabilization has The deadly enemy of the IISS plan, as the CFR reveals in worked to put more pressure on its Project 80s series, is the "mercantilist" industrial Japan tojoin the U. S. and China ... growth perspective of Japan and the Western European nations. The natural tendency of this mercantilist faction, Its political volatility raises the which includes economies based on the ideas of first bogus, but usefu l flag of 'Soviet American Treasury Secretary Alexander Hamilton, and threat'-soft ening the Japanese up his influential German follower Friedrich List, the CFR fo r China's op en arms." hastily notes, is to ally with the "Marxist" economies in a perspective of international industrial growth. Saeki's Nomura Research Institute operates effec­ tively to the IISS end of destroying Japanese industrial The Korean destabilization has worked to put more growth. It is the close collaborator with the Stanforp pressure on Japan to join the V.S. and China. Korea's Research Institute in America in that evil institution's plans once thriving economy has been brought nearly to its to conform human behavior to the zero growth mold knees by the oil crisis and constant political instability­ which the Anglo-American financial oligarchy has decreed thus threatening its Japanese backers. And its political necessary. Simultaneously, Saeki has pushed the NATO volatility raises the bogus, but useful flag of "Soviet link fo r Japan directly. threat"-softening the Japanese up for China's open arms. Conclusions At the moment, the Korean operation has taken on a The Japanese, and whatever allies they have left in the · life of its own, threatening a succession of coup against CIA-wracked country of South Korea, should take a countercoup that can only play into the V.S. NATO close look at the goals of their "friends" like Richard plan. The fo cus fo r the squeeze has turned to Japan. Sneider. Sneider himself ranted and raved about French Sneider is again playing the "inside" man, the man President Giscard d'Estaing's recent peace effortsin the the Japanese can trust. Besides his jobs as a member of Persian Gulf-j ust as the V.S. State Department did the international advisory boards ofthe Marine Midland about the sane strategies Japanese industry had for Mex­ Bank and Gulf Oil Co., Sneider serves as a paid consult­ ico. For the Anglo-American plan for a global NATO is ant to both the State Department and the Defense De­ based on oil austerity, constant political upheaval, and a partment on Japan. It was in this capacity that he met commitment to "sacrifice" fr ontline nations like West with Ohira last fall to discuss-ever so discreetly-what Germany up against the Soviet Vnion in a "war of Japan should do on the defense issue. attrition" and "disintegration" in the wishful delusion of Sneider's bosses' success so far can be measured by "wearing them down." the trend of statements from Kissinger-favorite Ohira How would Japan fare in this geopolitical game? and independent nationalist Nakasone toward increas- Draw your own conclusions.

44 International EIR June 3, 1980 end Ohira's career through a public campaign against his policies.

"Everyone wants him out" Opposition to Ohira has been steadily building in Japan for some time. Ohira's failure to procure oil for Japan's faction vulnerable Japan, the rising military tensions in Asia, and widespread skepticism about the sanity of the Carter fight: the key to administration, all contributed to undermining Ohira's rule. Miki and Fukuda, however, went beyond all bounds of precedent in joining with the Opposition to allow a Asia's future vote of no-confidence to succeed against Ohira. Never before has the unity of the LDP been broken and its rule threatened in this way. As one Japan watcher comment­ by Richard Katz ed, "it has ended an era in Japanese politics." The political situation is so volatile that Miki and Fukuda are The power struggle that erupted in Japan last week could reportedly considering leaving the LDP and forming a become the single most important factor in determining new party. the fate of East Asia, including the stability of Korea and Whether or not they bolt, Miki and Fukuda are in a whether a military alliance between Japan, China and the fight to the finish with Ohira. As LDP President, Ohira United States will be formed. intends to use his control over party funds to deny By siding with ailopposition no-confidence vote last campaign financing to members of the Miki and Fukuda week and forcing the resignation of the cabinet of pre­ factions and move to strengthen his own power within mier Masayoshi Ohira, former premiers Takeo Miki and the LDP. Should the LDP win in June, Ohira will attempt Takeo Fukuda have opened the door to a possible dra­ to claim this as a mandate for his own continued rule. If matic change in Japanese leadership and policy. Whether the LDP should lose its narrow majority, then a coalition Ohira is fully dumped from power and a Japanese foreign with some of the Opposition parties, such as the Demo­ policy shift occurs will largely be determined by the cratic Socialist and the Bhuddist Komeito parties would actions Miki and Fukuda take over the course of the become likely. In the latter case Ohira might form a election campaign leading to the June 22 polling. coalition with these parties and continue in power, or the Former premier Miki, who is particularly sensitive to Miki-Fukuda alliance might findthe mselves at the head the danger of war, together with Fukuda, has been of an unstable Italian-style coalition government con­ engaged in a bitter struggle with Ohira for more than six stantly threatened with breakup and paralyzing any pol­ months. Throughout his stay in office, Ohira has aban­ icy initiatives. doned traditional Japanese caution on military matters In this situation, Ohira's "rule or ruin" strategy has and has strongly supported the Carter administration's given him a certain position of strength relative to Miki provocative policy of linking China, Japan and the and Fukuda. Thus, it is critical for them to battle openly United States in a military bloc against the Soviet Union. against Ohira on the issues of Japan's economy and In fact, Ohira's commitment to Carter during a recent national security, while campaigning for a victory of the visit to Washington that Japan will increase defense LDP. spending in cooperation with the United States was one Up to thispoi nt, Ohira has remained in power largely of the main issues in the no-confidencemot ion. because the political and business leadership of Japan Despite the Miki-Fukuda action however, it is by no has developed no clear alternative to Ohira's "no choice means certain that Ohira will be ousted from power. but ties with Carter at all costs" policy. It is known that Violating all norms of Japanese tradition, Ohira is now a number of business leaders, the most important consti­ refusing to take responsibility by resigning his post as tuency of the LDP, have urged Ohira in private to resign president of the ruling Liberal Democratic Party (LDP). on the grounds that his continued presence undermines Ohira plans to maintain his grip on the LDP through the political calm in Tokyo. A decision by them to contrast June elections, and hopes a victory for the party at that Fukuda's 1978 war-avoidance alliance with Germany time will enable him to stay in power. and good relations with OPEC to Ohira's wrecking of The election will be determined by whether Miki and the economy and the peace of Asia would be the only Fukuda abandon the "back room" maneuvers that have basis of rallying the now-cynical voters of Japan to the failed to dislodge Ohira in the past, and instead move to idea to both strengthening the LDP and removing Ohira.

EIR June 3, 1980 International 45 Military Strategy by Susan Welsh \ �'> I?E&I5T/?ATION

Photo: Meyer/NSf PS

and the mid- 1 960s, under the influenceof the "reforms" Reagan's advisors of Defense Secretary Robert McNamara and his fe llow "systems analysts." World War II vets began leaving the sold Nixon the service in droves, fed up with the way the U.S. military was being transformed into a sociologists test-tube, a All-Volunteer Force parody of its humanist-republican tradition. From 1956 to 1962, the rate of retirement among military personnel American conservatives who are supporting Ronald more than doubled. Reagan for President in hopes that he will rebuild this Disaffection and cynicism increased through the country's military might are in for a big surprise. Our Vietnam war, as drug usage and "fragging" (murder) of ghettoized and drug-ridden All-Volunteer Force (A VF), officers by enlisted men reached epidemic proportions. whose average enlisted man reads at a fifth-grade level, Now under the volunteer army and the doctrinal and was created thanks to the years-long organizing drive of budgeting policies that have gone along with it, the U.S. two of Reagan's top advisers-Milton Friedman and military is entering into a decline which could soon Martin Anderson. Reagan himself supports the A VF become irreversible. This "phase change," which paral­ concept, provided pay levels are increased to make the lels that in the civilian economy as a whole, will be service more attractive. discussed in future articles. Here we fo cus on the strange Free-enterprise economist Friedman and political history of the All-Volunteery Force. scientist Anderson of the Hoover Institution sold Rich­ This was a fight which witnessed some of the most ard Nixon on the idea that conscription is a violation of seemingly unlikely tactical alliances ever seen in Ameri­ conservative-libertarian principles, and he made repeal can history. Sen. Edward Kennedy, Sen. John Stennis of the drafta plank in his 1968 campaign platform. With and Selective Service Director Gen. Lewis B. Hershey the "winding down" of the Vietnam war, the AVF passed were on the prodraft side, pitted against Sen. Barry through the Congress in 1973. Goldwater, Sen. George McGovern, Rep. Donald This policy set into motion a second "phase change" Rumsfeld, Milton Friedman, William F. Buckley, Noam in the post-World War II American military. The first Chomsky, Dr. Benjamin Spock, John Kenneth Gal­ such dramatic change occurred between the Korean War braith, Margaret Mead, and the Berrigan brothers on the all-volunteer side. (Mead and Galbraith supported Photo: New York anti-draji demonstration. May 1980. the idea of universal service, not necessarily military

46 International EIR June 3, 1980 service.) Ted Kennedy argued that abolition of the draft pro filers that had been created since the war by Great would mean an unfair black man's army, and therefore Britain's Tavistock Institute, the Stanford Research In­ advocated a lottery system and the repeal of all occupa­ stitute, the Rand Corporation and like institutions. These tional deferments which, he said, discriminate against are the theoreticians of what is now called the "Aquarian the poor. Kennedy's tactical ally, Gen. Hershey-the Conspiracy." Morris Janowitz, dean of the military so­ chief target of the left-radical draft resisters- opposed ciologists, proclaimed the obsolescence of the mass army the lottery system since the occupational deferments were in a nuclear age, urging its replacement with a small vital to the strength of the civilian industrial economy: "constabulary force" whose purpose is "managing the instruments of violence when national policy is designed "I am convinced that this Nation has paced the to avoid general war, and [to] manage limited war to world technological advance of recent years in avoid general war . ... The military establishment be­ large part because scores of thousands of people comes a constabulary force when it is continuously pre­ have become scientists, engineers, teachers and pared to act, committed to the minimum use of fo rce, applied other technical skills because they were and seeks viable international relations rather than vic­ deferred to do so."-Congressional hearings, June tory because it has incorporated a protective military 22-Aug. 30, 1966. posture." These sociologists took the experience of Great Hershey lost out, and was fired by Nixon in 1969; in Britain as their model, and bolstered their support for the 1970, occupational deferments were cancelled. AVF on Britain's abolition of conscription in 1961. After Nixon was elected, he set up the 15-man Gates The wooing of Richard Nixon Commission to plan the transition to an all-volunteer Pressure fo r draft reform began to get under way in fo rce. It wa was headed by Thomas S. Gates, chairman December 1966, when the Ford Foundation sponsored a of the executive committee of Morgan Guaranty Trust conference on the Selective Service at the University of and a former secretary of defense during the last year of Chicago. Among the participants were Milton Fried­ the Eisenhower administration. The Commission includ­ man; sociologists Sol Tax, Morris Janowitz, and Roger ed Milton Friedman; Thomas Curtis, vice-president of Little; General Hershey; Sen. Kennedy; Harold Wool of Encyclopedia Britannica; economist Alan Greenspan; the Department of Defense; and Margaret Mead of the Stephen Herbits from Georgetown University Law Cen­ American Museum of Natural History. Following the ter; Theodore Hesburgh, president of the University of conference, Friedman continued to write in favor of a Notre Dame, member of the New York Council on volunteerarmy, demanding "the elimination of compul­ Foreign Relations and the Trilateral Commission; and sion which now makes military service synonymous with former Supreme Allied Commanders in Europe, Lauris enforced incarceration." Norstad and Alfred Gruenther. Four of the members Friedman and Martin Andersonjoined Nixon's cam­ were strongly pro-AVF; none of the 15 had ever publicly paign advisory staff,and Anderson prepared a document questioned or opposed the concept. The Commission fo r the candidate advocating an end to the draft. The unanimously recommended the end of the draft. combination of arguments based on "good old-fash­ ioned conservative principles" and political expediency An American tradition? (the unpopUlarity of the Vietnam-era draft) convinced The conservative-libertarians who pushed through Nixon, and he gave a speech in October 1968 (written by the A VF contended that conscription is not an American Anderson), announcing that if elected he would abolish tradition. True enough, United States has only had the the draft. draftthree times during its history: the Civil War, World These free enterprisers' efforts were complemented War I, and World War II through to the present (with a perfectly from the "left" of the political spectrum. The brief hiatus just afterWorld War II). But our history has fall of 1967 saw the issue of a "C;dl to Resist Illegitimate been a continuing fight of the Federalist-Republican Authority," signed by hundreds of leftist intellectuals factions against the "Jacobins" of the Thomas Jefferson­ like Noam Chomsky, Herbert Marcuse, and Bishop Andrew Jackson stripe (see "The Treachery of Thomas James Pike. Catholic leftists played a particularly signif­ Jefferson," Campaigner, March 1980). Benjamin Franklin, icant role in the draft resistance, as Rev. Phillip Berrigan George Washington and Alexander Hamilton had to over­ poured blood over the files in a Baltimore draft board, come overwhelming "libertarian" opposition to form an and his brother Daniel, a Jesuit, incinerated files with army that could fight Great Britain; it was Jefferson who napalm in Catonsville, Maryland. Similar "civil disobe­ warned that a standing army is "dangerous to freegovern­ dience" actions were organized by other Catholic priests, ment." Had real American policies not won out-at least nuns and laymen. under temporary conditions of emergency-against Mil­ The third major component of the antidraft move­ ton Friedman's ancestors, the republic would have been ment was the army of sociologists and psychological- destroyed.

EIR June 3, 1980 International 47 MiddleEast Report by Robert Dreyfuss

Khomeini's kooks and U.S. spooks the leadership of the National Or­ A gang of American intelligence operatives who helped put ganization fo r Women; and N or­ the Ayatollah in power are now assembling a motley man Forer, professor at the Uni­ assortment of persons to promote "understanding" between versity of Kansas. Forer is the key go-between for the upper-level Americans and Iranians-the idea is terrorism. controllers of terrorism and the Muslim Brotherhood-Khomeini , networks in the United States. According to well-placed sources toward and tolerance of other cul­ Among other things, the Coa­ in Washington, Dr. Thomas Ricks, tures" like Khomeini's. lition is planning at least two trips professor of history at Georgetown "The United States has failed to Iran to educate Americans an­ University, is devoting the bulk of to understand the feelings and ac­ about the "realities" ofthe Iranian his professorial time these days to tions ofthe Iranian people," stated revolution and to foster American working with the radical Mujahi­ Dr. William O. Beeman, professor "appreciation" of the Iranian rev­ din, the Maoist Islamic guerilla of anthropology at Brown U niver­ olutionary method. The trips, movement currently vying for sity, in a recent interview. Beeman, which are illegal under the Presi­ power in Iran. The Mujahidin, who has spent seven years in Iran dent's ban on travel to Iran, are which operates in the United States profiling and working with the scheduled fo r June and August. and Europe under the banner of Shah's opposition, met with Cyrus A parallel effort to "erase" the Muslim Studen ts Society Vance last month prior to Vance's American prejudices pertaining to (MSS), have formed a temporary resignation to advise the State De­ the Khomeini revolution and to alliance with Iranian President partment on how to resolve the devise "solutions" not offensive to Abolhassan Bani-Sadr in an effort Iran crisis without offending Ira­ Iranian perspectives is being made to use him as a vehicle for even­ nian sensibilities. "Iranians re­ by the Committee on American­ tually seizing power themselves. spond very badly to pressure," Iranian Dialogue, a creation of the According to these same sources, Beeman told Vance. According to International Center for Dynamics Ricks is actively involved in con­ Beeman, "Vance was very much in of Development in Arlington, Vir­ duiting intelligence into the Mu-· sympathy with us.'. ginia. The participants in the Com­ jahidin from the Pentagon on U.S. On May 21, at the law office of mittee include Landrum Bolling, military preparations for opera­ Ramsey Clark in New York, Kho­ chairman of the Council on Foun­ tions in the Persian Gulf. meini sympathizers banded togeth­ dations; William Moore, World Bani-Sadr's recent charge that er to form a National Coalition for Future Society; the World Feder­ 96 American troops had crossed Iranian-American Understanding. alists; the Federal Mediation and into Iran to help carry out his Those involved in the Coalition Conciliation Service; and the U.S. overthrow emanated, by his own include former attorney general State Department. However, two admission, from information re­ Ramsey Clark, known for his role meetings were both canceled due ceived from the United States. The in undermining the government of to "lack of interest." source of the information was, ac­ Shahpour Bakhtiar in favor of the The "tolerance" approach to­ cording to insiders, the MSS and fanatic Khomeini; Thomas Ricks; ward Khomeini and the outlaw its mentor, Thomas Ricks. Prof. Richard Falk of Princeton Iranian revolution is expressly de­ Ricks is part of a motley as­ University, who has gone on re­ signed to lead to an upsurge in sortment of American university cord stressing the need fo r a new terrorism. International terrorist professors, human rights advo­ movement in the United States expert Robert Moss of the Econo­ cates, antiwar freaks, liberated modeled on the Iranian revolution; mist intelligence service explicitly women, and outright terrorists, all Eqbal Ahmed of the Transnational stated this earlier this month in of whom are "sympathetic" to the Institute/Institute for Policy Stud­ New York when he "predicted" a "human content" of Khomeini ies; David Dellinger; antiwar activ­ terrorist incident to be carried out kookery. These liberal-radicals have itsts such as the Berrigan brothers; by Iranians in Washington against joined forces to ensure an "openness the National Council of Churches; a U.S. official.

48 International EIR June 3, 1980 DatelineMexico by Josefina Menendez

A new environmentalist cult and not surprisingly, we discov­ Mexico has shown a healthy immunity to the ered that the British-run prototer­ rorist "Friends of the Earth" sce­ environmentalist disease, but last week's event in Cuernavaca tlet has its Mexican mailing ad­ shows that the greenies may yet spread their contagion. dress in the resort city. From the moment of its found­ ing at a Jan. 26 private meeting at the CEESTEM, the ATA has de­ We headed out to Cuernavaca nomic bloc. The director of the fined its mission not only in terms this weekend to find out what the Colegio de Mexico is Victor Ur­ of spreading the concept of "ade­ "Association of Adequate Tech­ quidi, the sole Mexican member of quate technology," but of doing nology, Inc." (ATA in its Spanish the Club of Rome. so "independently" of the "impe­ acronym), holding its second na­ In the first rows of the several rialist" organizations based in the tional meeting, was all about. We score participants were represen­ U.S. and Britain purveying the can report the usual environmen­ tatives of the Ministry of Housing same outlook. "Our objectives talist brainwashing, but with an and Public Works (SAHOP). Un­ have nothing to do with the proj­ important twist. There was signifi­ der the directives of Pedro Ramirez ects of the World Bank or the U.S. cant government participation, Vazquez, the SAHOP has taken Senate," organizers stated in Cuer­ and the sponsoring institutions are the lead in promoting solar and navaca; the plans of these institu­ functioning directly out of the in­ wind power swindles and labor-in­ tions are "vertical, they come from ternational "Aquarian conspiracy" tensive public works projects. The above ... ours are a social project of the Club of Rome and the Arias Cha vez brothers, whose and are participative." United Nations Institute for Train­ book The Ecologically Self-Suffi­ This aversion to publicly recog­ ing and Research (UNITAR). cient Habitation is ATA's bible, nizing the origins of their ideas Leaders of both industry and wrote extensive sections of SA­ cannot hide the direct links iden­ . government in Mexico, with the HOP's programs as official minis­ tified in their own publications to exception of Mexico City mayor try employees. the Intermediate Technology De­ Carlos Hank Gonzalez, have rarely There were also representatives velopment Group in London, cre­ given environmentalism the time of the Agriculture and Water Re­ ated by Small Is Beautiful author of day. The Cuernavaca antitech­ sources Ministry, under the charge E.F. Schumacher. nology fe st confirmed that the of Merino Rabago, and of the Currently the ATA is in a stage greenie movement is making im­ National Council on Science and of "consolidation" and "recruit­ portant inroads. Technology (Conacyt). ment," according to the conference The godfathers of ATA are the The major drawing card was organizers. They believe that be­ Center of Economic and Social Ivan Illich, international guru of fore "going big," they have to Studies of the Third World (CEES­ "deschooling" and the abolition of build sufficient cadre to staff their TEM), directed by former Presi­ medicine, who made his name with expansion into regional offices dent Luis Echeverria, and the Col­ the CIDOC center in Cuernavaca acroSs the country. egio de Mexico. Just the week be­ before handing his library over to The goal: "Form a new fu tu­ fore, the CEESTEM officially cos­ the Colegio de Mexico. rology which, armed with the ponsored a "New Regional Eco­ Not far behind Illich in his m!:'thodological instrument of our nomic Order" conference at the panegyrics against industrial prog­ time, plays the role of sorceror's U.N. with the Club of Rome and ress was Father Jesus Quiroz, S.J., apprentice. " UNITAR. Three days after the ,professor at the Ibero-American ATA's irrationalist sorcery, Cuernavaca fling, it was up in Buf­ University. The Jesuits have incor­ while unlikely to make spectacular fa lo, New York, cosponsoring a porated extreme environmentalism gains soon, nevertheless can create conference on how to unite Mexi­ into their "Theology of Libera­ problems for the industrial devel­ co, the United States and Canada tion" across the continent. Cuer­ opment projects of the L6pez Por­ into a regional zero growth eco- navaca is one of their strongholds; tillo government.

EIR June 3, 1980 International 49 InternationalIn telligence

On the eve of the trip, Argentina's $36.72 before additional surcharge foreign minister Washington Pastor costs. Asia called for "a total alliance with Brazil This latest round of price hikes by ... an alliance for all purposes, not only the members of OPEC comes within Europeans compete to for economic and political ends, but for days of an announcement from Saudi aid India steel military objectives." He said the two Arabia that the kingdom would raise Southern Cone powers could form a the price of its crude-the least expen­ A Franco-British-German consortium "solid bloc" capable of "strengthening sive in o.PEC-from $26 to $28 a barrel. led by Davy Corp. of London is com­ countries with less resources, since by The Saudis were calculating that such a peting with West Germany's Manness­ strengthening our neighbors, we pre­ move might persuade the more hardline man AG to finance and supply construc­ serve our own security." pricing militants to agree to a pricing tion of a coastal steel facility in India. While trying to hush talk of military fo rmula to stabilize OPEC's chaotic The Davy group, which also includes alliances, 'Figueiredo told a Buenos pricing situation. Earlier this month Alsthom-Atlantique of France and Fer­ Aires press conference, "Brazil and Ar­ Saudi Arabia called a meeting of the rostahl AG of West Germany, on May gentina were always in love, but never OPEC Long Range Planning Commit­ 19 announced that it has offered a $2.7 set the marriage date. The marriage now tee to propose an elaborate plan to billion package of government-subsi­ is set and the husband and wife can impose quarterly price adjustments of dized export credits, government assist­ begin now to think about how many OPEC crude pegged to the rate of world ance and Eurodollar loans with an children to have and how to educate inflation. The pricing hardliners, Iran, agreement to sell most of the hardware them." When asked which country was Libya and Algeria, according to Ku­ Wall for the plant. According to the to be the woman, the Brazilian cavalry waiti sources had tentatively agreed to Street Journal, the term of the credits officer-president replied, "In this mar­ acCept the fo rmula. But the sudden de­ would be 15-20 years; the size and terms riage, there will be equal rights. The two cision to raise prices by this same faction of Mannesmann's offer are not known. will even discuss where to go . to bed threw cold water on the deal. The new plant will initially produce together." OPEC is slated to convene a price 1.7 million tons of steel, and later ex­ The two countries signed an impres­ setting meeting June 9 in Algiers where pand to over 3.3 million tons. India sive series of agreements on exchange of it is expected that Saudi Arabia will plans to construct a second steel plant nuclear technology, integration of elec­ have no choice but to raise their prices at Vishakapatnam on the east coast, trical systems, joint hydro-electric proj­ another $2 a barrel bringing its crude to with the Soviet Union providing a 1.3 ects, transport, and other measures to $30 a barrel. million ton unit at a cost of $2.8 billion, facilitate continued rapid expansion of under a 1979 agreement. The Gandhi trade. government has placed a very high priority on expansion of the nation's current 12.5 million ton steel capacity. Israel implements The Financial Times of London recently reprisal policy predicted nonetheless that India's bid for Eurocredits would be accompanied Middle East Israeli occupation authorities have be­ by project cutbacks. gun an official policy of reprisals against OPEC oil prices innocent civilians in response to terror­ ism on the West Bank. on the rise again In two cases this week, Israeli sol­ Latin America diers forced entire families to leave their Algeria, Libya and Indonesia enacted homes and relocate to abandoned refu­ Brazil uma"ies" $1 to $2 a barrel price hikes this week gee camps near the Dead Sea, to live in triggering a new round of price increases ramshackle sheds without roofs, run­ Argentina by the oil cartel, OPEC. As a result of ning water, or electricity. The stated this latest round of price increases, the reason for the "relocations" was that For the first time in 45 years, a Brazilian pricing ceiling for OPEC crude oil is children of the family were involved in president visited neighboring Argentina nearing $40 a barrel. Following a $1 a throwing stones at Israeli soldiers. this week. Brazilian President General barrel pricing boost, Algeria is now Last week, after six Israeli soldiers J.B. Figueiredo was warmly received by charging $38.21, and on some of its were killed by Palestinians with guns his Argentine counterpart, General premium grades of crude is asking its and grenades, the Israelis retaliated by Jorge Videla. The trip opened up pos­ customers to pay an additional $3 a blowing up the building where the at­ sibilities of economic, political and mil­ barrel surcharge. Libyan oil following tackers had been stationed. Later inves­ itary iRtegration of the countries. a $2 a barrel price hike is now charging tigation revealed that the building was

50 blternational EIR June 3, 1980 Briefly

• lEA MEMBERS in Europe re­ owned by an old Arab who had shel­ This is what I wanted to do, and this is acted angrily to Carter admini­ tered dozens of Jews during anti-Jewish what I did." stration demands at the Interna­ riots in 1929, and who was a symbol of tional Energy Agency meeting Arab-Jewish cooperation. Days are numbered fo r May 23. U.S. Energy Secretary Such actions by the Begin govern­ Duncan demanded that the West ment are bringing the situation on the Italy's Cossiga reduce its oil consumption anoth­ West Bank to the boiling point. Even er 20 percent, from 26 to 22 mil­ many Zionist leaders are reportedly get­ The combined forces of Italian Com­ lion barrels a day. Other members ting worried. This week, 250 Israelis­ munist Party chief Enrico Berlinguer led by West Germany flatly re­ many of them prominent citizens­ and fo rmer Christian Democratic Pre­ fused. "What's the point in having signed a statement accusing Begin of mier Giulio Andreotti have mobilized to these meetings if the target set for "distorting Zionism" and urging that bring down the present government of consumption is going to be re­ the "land of Israel" be partitioned by Premier Francesco Cossiga. Cossiga and vised every six months," said a giving the Palestinians the West Bank. his factional allies have drawn heavy fire German delegate. for their protection of Italy's terrorist networks, and for a recent meeting with • MENACHEM BEGIN told a U.S. Defense Secretary Harold Brown Washington Post interviewer he in Rome in which Cossiga reportedly would not tolerate a European Europe secretly agreed to lend Italian military effort to bring peace to the Middle fo rces to U.S. efforts to expand NATO East by resolving the Palestinian French Foreign Minister deployments into the Persian Gulf and problem, "The so-called Europe­ Indian Ocean. an initiative can have very little rejects U. S. accusations Berlinguer gave an interview to the result. First of all," said the Israeli Communist weekly Rinascita calling the premier, "it brings about a radi­ "The President of the French Republic Cossiga government "dangerous-it calization of the Arab world's po­ doesn't need the permission of the must be collapsed as soon as possible." sition, because there are Arabs United States President to go out of Cossiga, unlike other European heads who say, 'Look, the Europeans doors," said an angry French Foreign of government, has been "completely suggest to us a policy of a Pales­ Minister Jean Fran�ois-Poncet. }day 21, subservient to U.S. orders," Berlinguer tinian state and the participation in response to charges by U.S. Secretary charged. He called for a cross-party of the PLO. How can we accept of State Edmund Muskie that France factional alignment to govern Italy after less?' " failed to consult before undertaking a Cossiga's departure, including the Com­ meeting with Soviet President Leonid munist Party and the Andreotti faction • JOSE LOPEZ PORTILLO Brezhnev. "France doesn't need any­ of the Christian Democracy. told attendees at a dinner in his one's authorization" to talk to "whom­ Andreotti challenged the fo undation honor hosted by the Swedish royal ever it wants to, whenever it wants to," of the government's fo reign policy in an family May 23 that world eco­ said the Foreign Minister. Fran�ois­ article in the daily II Popolo this week. nomic deterioration is "leading us Poncet warned that U.S. policies toward The former premier had just returned to the threshhold of a new century the Soviet Union increase the danger of from a meeting in Brussels of parlia­ which seems to match not the war, since to "isolate" the Soviets is the mentarians from the countries that utopias of some optimistic futu­ "gravest political error." signed the Helsinki agreement on Eu­ rologist but the somber vision of French President Valery Giscard ropean security and cooperation. The those who anticipate the return of d'Estaing summed up the purpose of his meeting, attended by a representative a middle age wrapped in the meeting with Brezhnev in a speech May from the USSR's Supreme Soviet, called gloom of death." 20: "When France or the President of for negotiations on both NATO and the Republic meets the Soviet head of Soviet medium-range nuclear missiles in • H. HAMMBRUECHER, Un­ state to get to the bottom of the present Europe. In his article in II Popolo, An­ dersecretary in the West German international situation ... let me tell you dreotti characterized the Brussels meet­ Foreign Ministry and a Free that this fu lfills a deep aspiration in the ing as one that showed "very strongly Democrat, gave a speech at the whole population. . .. I am convinced the desire to maintain peace .... It would United Nations May 19 stating that there is not one person of good will be a serious error to show weakness that "Development policy in the in the world who doesn't concede that toward those who, with an excess of past has concentrated too much it is useful at the present time for those superficiality, are speaking the language on economic growth in itself as a in responsible posts to examine the real­ of division and conflict, or even worse, goal, and not enough on social­ ity of the situation and its causes, and are materially acting against the letter cultural structures. to discuss initiatives to reduce tensions. and spirit of Helsinki."

EIR June 3, 1980 International 51 Will dictatorship follow a 1980 election deadlock

by Kathleen Murphy

The U.S. may be living under an emergency dictatorship severe-and a steadily worsening international situation, modeled directly on Adolf Hitler's "legal coup d'etat" in which could at any moment see a superpower confron­ 1933 Germany by this time next year if a scheme now tation. In these circumstances of crisis piled upon crisis, underway for deadlocking the presidential election and the architects of the so-called House of Representatives plunging the country into the most acute constitutional scenario are hoping that the population will be thrown crisis in history goes according to schedule. into such confusion and panic that they will gladly accept Developed primarily by the Council on Foreign Re­ "order"-just like the German citizenry accepted Hit­ lations, Trilateral Commission and the Aspen Institute, ler-even if it comes, as intended, in the form of an the plan, which aims at disintegrating the political system unconstitutional emergency dictatorship. of the United States and replacing it with a crew of This is no idle speculation. All the workings of such a committed zero-growth technocrats, is based on the dictatorship-from personnel to policies-are already in fo llowing scenario: operation under FEMA (the Federal Emergency Man­ Three major presidential candidates will be in the · agement Agency). FEMA is getting ready to run the running (the Democratic and Republican nominees, plus country by taking over local governments in areas hit by "independent" John Anderson), on election day 1980. natural disasters under the guise of providing emergency After ballots are counted, the Electoral College will be help. split, and none of the candidates will get the majority needed to be elected President. At this point, under the The Anderson Ploy provisions of the Constitution's 12th Amendment, the This gameplan, which has been under backroom newly-elected House of Representatives is mandated to discussion for some time, went "live" last week when the choose the President from among the three top vote­ Eastern Establishment decided to make John Anderson getters. In the event that the House cannot reach a (whose independent facade doesn't quite obscure the fact decision by Jan. 20-Inauguration Day-the Con­ that he's a member in good standing of the Council on stitution's succession amendment goes into effect. This Foreign Relations, the Trilateral Commission and the means that the country could be without a President for Bilderberg Society) look like a credible major candidate. months-if it gets one at all. Beginning with former Undersecretary of State The political vacuum which such a development will George Ball (now a partner in Wall Street's Lehman almost inevitably create is bound to be magnified by the Brothers-Kuhn Loeb), who endorsed Anderson in a ongoing domestic downturn-which even the Carter nationally televised interview earlier this month, top East administration's economic wizards are now conceding is Coast insiders have been rallying behind the Anderson

52 National EIR June 3, 1980 tax on imported gasoline; and an incomes policy which would levy additional taxes on companies that granted wage increases over an established, miserly, federal Where the favors of the Council on Foreign Rela� tions go, the press is never far behind. The East Coast press has been running a propaganda campaign to build up Anderson into a major political figure. James Reston devoted his May 15 column to a plea that Americans embrace the "Anderson Difference"; next day, the Baltimore Sun printed an op-ed by former Eugene McCarthy staffer Curtis Gans entitled, "Yes, Anderson Can Win," while the Christian Science Mon­ itor editorialized in favor of an Anderson policy. The latest Lou Harris-ABC poll, claiming that Anderson could receive 30 percent of the popular vote come November, received widespread coverage. And former President Gerald Ford put his two cents in predicting that the election could well wind up in the House. These same press outlets are also vigorously retailing the line that a deadlocked election is all but inevitable. First put into print in April by the Los Angeles Times, the scenario was played up big in both the Wall Street Journal and New York Times May 15. It is being widely circulated in the local and regional media as well as New York Times banner. Among them: columnist James television and radio talk shows. Reston, former Arms Control and Disarmament Ad­ Both the Timesand Journalarticles center on the role ministration official Carl Marcy, Ambassador Hans Anderson is slated to play in fo rcing the elections into Morgenthau, and Felix Rohatyn. the House. The Journal, in particular, hints at the possi­ Rumors that Walter Cronkite has privately agreed to ­ bility for an emergency government to emerge in these become Anderson's running mate are still widely circu­ circumstances of deep constitutional crisis, concluding lating, while New York Governor Hugh Carey is report­ its coverage with the ominous words: "One possibility edly quietly working to place Anderson on the state's would be for Congress to pass emergency legislation ... Liberal Party ballot for the presidential elections-a until something is decided," in the event that the House place usually reserved for the Democratic nominee. fails ultimately to choose a President. Rohatyn's deployment into the Anderson camp, where he functions as chief economic adviser, shouldn't be interpreted as meaning that the CFR has decided to make the Rockford Congressman President. It is a very Two cents from Britain precise indication, though, of the kind of Schachtian . The British oligarchy, the real power behind this economic policies the CFR and friends intend to imple­ subversion of U.S. republican principles, has no qualms ment through a FEMA dictatorship, which the Anderson about announcing outright what kind of government campaign is crucial to bringing to power. they hope to impose on the former colonies. The London It was Rohatyn, of course, as chairman of New York Times smugly observed in a May 15 editorial that "Eu­ City's Emergency Financial Control Board, who engi­ ropeans are beginning to doubt whether the American neered on a local scale the kind of slash-and-burn auster­ system is any longer capable of producing a really good ity-oriented financial dictatorship now being readied for President and a Congress with which he can work." The national implementation. Rohatyn has recently been Daily Telegraph's Peregrine Worsthorne, writing even touring the country outlining the policies a national Big more bluntly under the headline, "Why Uncle Sam Is a MAC would effect, including: a reconstituted Recon­ Danger to the West," claimed that "the world as it has struction Finance Corporation, empowered to take over become is no longer suited to American leadership; the and run financially troubled corporations; a national problem does not lie in the defect of this or that President economic planning commission; a wage-price freeze; but in the nature of American society itself." Much sharp cutbacks in energy consumption, to be accom­ better, says Worsthorne, if America was not "populist" plished partially through an incredible 50-cent-a gallon (read republic) but "oligarchical."

EIR June 3, 1980 National 53 FEMA is running theMiami riots by Paul Goldstein

The city of Miami, Florida exploded with a vengeance May 17, in a riot that left 18 people dead, hundreds injured, and nearly 700 under arrest; 3,500 troops of the Florida National Guard occupied the city to quell any further violence. Is Miami a replay of the "spontaneous riots" of the 1960s1 "Miami is no surprise. I predicted it. This is what I wrote about in my book, Friendly Fascism. It's a big step toward a corporate state. Many cities are prone to viol­ ence, especially the cities in Texas-Houston will ex­ plode," noted Bertram Gross, Urban Affairs professor at Columbia University and a leading advocate of tearing down America's cities. As Gross says, Miami was preplanned. Every aspect The character of the Miami riot itself goes beyond of the riot down to the militarization of a city in crisis, any of the previous riots during the height of the 1960 was directed by the Federal Emergency Management period when Los Angeles, Newark, and Detroit exploded Agency-an agency put in place and first tested at the with rage. Accounts of the Miami riot depict the killings time of the Three Mile Island nuclear incident that is as brutal beyond belief with several of the murdered coordinating the imposition of a crisis management dic­ victims found mutilated and some with ears cut off. One tatorship on the United States. intelligence source cited unconfirmed reports that According to a report leaked to this news service, the trained urban guerilla terrorist teams were dispatched Federal Bureau of Investigation sent urgent messages to into Miami at the very moment that the verdict was U.S. Attorney General Benjamin Civiletti and Drew about to be handed down. These teams, according to the Days, the head of the Civil Rights Division of the De­ reports, initiated the violence by sniper actions and ar­ partment of Justice. The FBI warned days ahead of the son, with pinpointed targeting of government agencies, riot that in case of an acquittal of the fo ur Miami as well as the people of Miami. One of the alleged riot policemen charged with murdering the black insurance controllers indicated that special urban guerilla teams salesman McDuffie,a riot would definitely break out. might have been key in the riot. A sociology professor These warnings were fully acknowledged by Civiletti from Florida International University in Miami, Marvin and Days. But, according to informed intelligence Dunn, admitted in an interview that "the situation now sources, Civiletti determined to let the situation run its is completely different than the 1960s. In the 1960s, most course and permit the riot to "express itself." Civiletti is of the people who got hurt got in the way, were acciden­ now on the scene in Miami directing a federal investiga­ tally killed. In Miami, there was a deliberate attempt to tion under President Carter's order. kill white people. In the 1960s violence was cathartic. Now Other on-the-scene sources have corroborated var­ we have a definitive act of assault. McDuffie's death was ious newspaper accounts that Florida State Attorney only a precipitating incident. The riots of the 1960s were General, Janet Reno, the prosecuting attorney, totally run by kids. Now people are older-mid to late 20s. "bungled" the case, fo rcing the foreman of the jury to Many are Vietnam veterans who know how to snipe, to declare afterwards that the evidence was so "badly pre­ kill. They know what they're doing. The 1960s was a sented" no choice was available except acquittal. plaything in comparison to what we face now." This riot

54 National EIR June 3, 1980 is no white-black riot-it is a contrived event designed to League of B'nai B'rith, U.S. Chamber of Commerce and put FEMA in control. the National Lawyers Guild. Three cities were cited where police used excessive force in handling racially The FEMA scenario tense situations: Philadelphia, Wrightsville, Ga., and The effect of the Miami riot and the riots planned for Memphis. The Philadelphia case is the most telling ex­ cities across the Sun belt and parts of the Northeast and ample of the attempt by the DOJ to misuse federal West Coast is what the New York Council on Foreign authority and undercut local police efforts. Relations has outlined as the controlled disintegration of A suit was filed by a group of black counterinsurgents the United States. As Professor Gross explained, "the led by the American Friends Service Committee against Miami riot will lead to the shrinkage of the cities and the the police in Philadelphia for its handling of a shoot-out minds" of the population. "Planned shrinkage" is the with the black-terrorist cult known as MOVE. On the program laid out by Trilateral Commission member basis of flimsy evidence of police brutality, the Justice Samuel Huntington in his book, Th e Crisis of Democra­ Department filed suit charging brutality. The case was cy. That book and Huntington's Presidential Review eventually thrown out of court. Memorandum 32 predicts that the "ungovernability" of However, the effect was to give license to the second a democracy under economic crisis conditions means or terrorist-countergang side of the riot apparatus to use that new structures to replace the present constitutionally every violent means to justify alleged injustices commit­ defined agencies of government have to be put into place. ted against minorities by police. That is FEMA-the agency signed into existence by A nationwide network of radical left countergangs President Carter and empowered to act in place of the and the activation of the racist Ku Klux Klan on top of existing bodies. incidents of real and alleged police brutality has fed the FEMA has been operating in the Miami area since opinion among ghetto residents that violence is the only the influxof Cuban refugees, directing the relocation and means to get anything done. organization of where to place the refugees. One police Two major planning conferences by organizations source in Florida, directly concerned wtih these matters, and groups tied to the umbrella organization of the stated that the placement of these refugees can determine Washington, D.C. Institute for Policy Studies were held whether a riot breaks out or not. Already several south­ during November and December 1979 where the outlines ern cities are targeted for Cuban refugee placement, cities of political violence were discussed. The first conference, where the black population is already incensed over the called the Freedom Summer Conference and held in current economic situation. They see the Cubans as a Jackson, Mississippi, heard Jesse Jackson, Julian Bond, threat to their economic well-being. With unemployment Ramsey Clark and other 1960s civil rights leaders declare skyrocketing among blacks, all that is needed is a match that a more "non-violent" but aggressive civil rights to light the fire. It is important to point out that it was movement was needed with visible action on the streets. Cuban policemen who were tried for the murder. It is noteworthy that the event in Miami which immedi­ ately preceded the violence was a "peaceful" march Some background organized by the NAACP to the Miami-Dade County Two basic political developments had been set in SheriffDe partment which enabled the organized rioters motion leading up to the Miami riot. One involves the to unleash the operation. Justice Department; the other the left-right countergang The other conference was held in Atlanta, Georgia apparatus controlled by the same political forces running by the leading terrorist and proterrorist networks spon­ the Carter administration. sored by the Center for Constitutional Rights headed up Particularly since Benjamin Civiletti took over as by William Kunstler. At this conference every major left­ Attorney General, nearly every major urban police de­ countergang from the Communist Workers Party, Rev­ partment has been under investigation for alleged and . olutionary Communist Party, Communist Party USA, actual cases of police brutality. The purpose of the and radical black ministers called for turning America investigations carried out by the Civil Rights Division is into another Iran. Rev. Milton Reid of the Calvary not to prosecute the police fo r any injustice, but to give Baptist Church stated "we in America must follow the rise to the belief that any use of force by police against lead from Iran and turn the oppressive regime over and the black and hispanic population is "excessive." liberate the masses." Last October in Washington, D.C., the Community Preliminary reports from intelligence sources in the Relations Service, a section of the Civil Rights Division, Miami area indicate that the Revolutionary Communist held a conference on "The Excessive Use of Force by Party and other radicals infiltrated the Miami area dur­ Police." Participants included the NAACP, the Southern ing the period of the trial, and immediately afterwards Christian Leadership Conference, the Anti-Defamation stirred up the black population to participate in the riot.

EIR June 3, 1980 National 55 Exclusive rel2.ort The independent oil-men: an endangered species?

by William Engdahl

The 12,000 "independent oil producers" across the na­ further costly exploration. "You can't take $227 billion tion some of whom gathered recently in Denver for the out of any industry in this country" and not have a severe Midyear Meeting of the Independent Petroleum Associ­ impact, Yates told me. The administration bill, imposing ation of America are in a state of total war with an an exceedingly complex three-tier classification for all adversary that most of them only dimly comprehend. kinds of oil, is the largest single revenue package in U.S. That fact struck me most sharply in conversations I had history. with numerous independents and in the speeches deliv­ Wyoming's Republican Senator Malcolm Wallop ered at the meeting. Many were worried about the "Rus­ addressed the more than 1200 oilmen at the Denver sian problem." Most had no strategy to meet the attack meeting on how the fight evolved in the Congress. Begin­ being waged on them-the primary explorers and pro­ ning with Carter's proposal in April 1979 to raise $5 ducers of new domestic oil and gas reserves-by the billion over three years, the tax emerged last Christmas majors and the Carter administration. fr om thejoint Senate-House conference committee in the I had met many of these same independents, members form of a $227.7billion tax at the wellhead on oil produc­ of the nation's largest organization of independent pro­ tion in the country. Wallop correctly noted that "to date ducers, last November at their annual meeting. At that nobody has heard what Carter plans to do with the ... time, the attempt to stop passage of the Windfall Profit new dollars his tax would raise." What is known is that it Tax Act of 1980 was the key subject of discussion. Now, will not go to ensure an increased supply of nuclear, oil six months later, the Windfall Profit Tax is law and on or gas development. Wallop also noted that "it is time the drawing boards are a number of systematic assaults for some real soul-searching about the Windfall debacle, against energy development, including a new bill by because the forces that achieved your defeat on the liberal Arkansas Senator Dale Bumpers. That bill, Windfall tax are ready to move on percentage depletion, S.l637, is part of the move being undertaken by the intangible drilling costs, competitive oil and gas leases Carter administration to ensure that the vast potential and a range of sorry ideas." for domestic oil and gas exploitation remains undevel­ What Wallop prescribed, however, was a fo olish oped. party line of changing the Democratic majority that has These oilmen are angry about the latest government controlled Congress for 40 years. He failed to note some incursions on energy production, and rightly so. But of the Republicans' complicity. One example is in order: while the troops for Carter's war on energy are assem­ the major oil companies. The battle against the tax was bling, these independents, many of them World War II lqst last fall when the bipartisan "liberal" coalition suc­ veterans, are reminiscing about past battles or planning cessfully split "big oil from little oil" by amending the retirement from the fight. bill to give certain "windfalls" to the multinational oil maj ors at the expense of domestic independent produc­ ers. The boards of these major companies, Exxon, Shell, Carter's Windfall Texaco, Gulf, are all directed by a "Republican" blue­ The Denver meeting fo cused on two themes: the blood group, many of whom sit on the New York Windfall Profit Tax Act of 1980 and the Bumpers bill, Council on Foreign Relations along with the likes of S.1637. William Buckley, Henry Kissinger and David Rockefel­ First, the Windfall Tax. Peyton Yates, a leading and ler. This is the same crowd who years ago drafted the outspoken independent from New Mexico, told EIR that policy of "controlled economic disintegration" using the impact of this excise tax will mean "gross revenue energy as the strategic choke point to force industrial cuts of 25-50 percent from January 1980." He added that collapse. "what will drop is anticipated drillings, sharply" as What did the "Republican" majors get for their independents fail to accumulate the capital to launch "compromise" on the tax bill?

56 National EIR June 3, 1980 Exxon & Co. dropped their political opposition to the bill last fall when their friend Russell Long, the Senate Finance Committee chairman from Louisiana, succeeded in getting two plums. First, most Alaskan oil Who is 'big oil'? is exempt from the tax altogether. Second, a little-noticed amendment was added removing the 1962 Trade Expan­ Unlike the independent oil producers, whose future sion Act authority of the President to arbitrarily pass is tied to the exploration and production of oil and import quotas. The latter is the basis of the current gas, the multinational oil companies are no longer congressional challenge to Carter's $10 billion oil import oil-producing corporations per se. Since the early fee. Both provisions have devastating implications: The 1970s, they have been functioning as appendages Alaskan production is dominated by British Petroleum of the maj or New York and London financial and its subsidiary, SOHIO with ARCO, Exxon and other houses which run policy at the New York Council · members of the consortium. This "windfall" to BP will on Foreign Relations. A look at the corporate further their ability to "price war" their way into an boards of directors reveals the following: increasing share of the American market. In addition, • Exxon numbers no fewer than 17 board mem­ the majors got a concession on certain "old oil" now bers who are also members of the CFR, including being reclassified as "upper tier" under the new tax. As chairman Clifton C. Garvin� who also is a director one knowledgable independent pointed out, it is the of Citibank in New York. majors who own "huge quantities" of this tax-exempt • Mobil's chairman Rawleigh Warner is a CFR oil. Once the maj ors had secured these concessions, they member who also sits on the board of Chemical dropped their opposition and the bill's legislative architects Bank in New York. Mobil's vice-president Herbert set about ensuring the demise of domestic energy Schmertz, a CFR member, just received a leave of production under the guise of "taxing the windfall absence to serve as media director of the campaign gained from domestic price decontroL" Although they of "oiJ's arch-enemy" Edward Kennedy. have a necessary joint relationship with the major com­ • Texaco's chairman Maurice Granville is a panies, the independents, especially since the Seven Sis­ CFR member who also sits on the New York ters moved into the Middle East, have been left with the Federal Reserve which authored Fed Chairman burden of exploratory risk-taking in findingand produc­ Volcker's top-down takeover of regional banks. ing domestic oil and gas. Last year, for example, more • ARCO's chairman, Robert O. Anderson, and than 83 percent of new wells drilled or "wildcatted" president, Thornton Bradshaw, both sit on the domestically, were done by independents, not majors. CFR while funding and promoting environmental resource control from their Aspen Institute. Bumpers' Rocky Mountain high This brings us to the second maj or point: the attempt to choke off production by the independents in the vast Rocky Mountain region called the Overthrust Belt. noncompetitive federal oil and gas leasing "pose a sub­ Much of this is federally leased land which has become stantial threat to future availability of federal oil and gas economical to explore under domestic price decontrol. leases" and "promises to remove substantial amounts of Because there are vast energy resources here, it is poten­ land from oil and gas leasing." They correctly note that tially the fastest growing energy region in the country. the impact of the recent actions will hit independents Interior Secretary Cecil Andrus has used a contrived "who hold or operate on over 80 percent of federal oil leasing scandal to force legislation through Congress and gas leases." What they do not mention is the fact which would prohibit independents from access to these that it is "independent oilman" Robert O. Anderson and oil-rich areas, leaving them for the larger majors to sit on certain major oil companies that have funded the envi­ while prices soar. ronmentalist operations creating this very threat. Just one day before the Denver conference, the Senate Duke Rudman of Texas, a self-described "dedicated Committee on Energy approved the Bumpers bill, the wildcatter" told EIR that moves such as the Windfall tax Federal Oil and Gas Leasing Act of 1980 (S. 1 637). The are "paralyzing me. I have been forced to curtail a bill now goes to the full Senate for a vote. IPAA head, C. considerable number of drillings ... There is complete John Miller labeled the Bumpers bill "a fraud" which confusion; nobody understands this bill. Nobody in the would "virtually eliminate the great majority of inde­ Department of Energy can tell me. I can't find a lawyer pendents as competitors for the frontier public lands who can give me an answer ... I'm mad. We have too areas and limit domestic oil and gas production, because many gentlemen in our industry." Rudman described the it would limit the acreage available for leasing." untold "trillions of barrels of hydrocarbons waiting The IPAA Public Lands Committee said that S. 1 637 to be explored" but for the impact of these restrictive and the February Interior Secretary's suspension of policies.

EIR June 3, 1980 National 57 Campaign1980 by Kathleen Murphy

pussy-footing and ran a lead edi­ Reagan loses without torial urging Democrats not to Democratic cross-over vote fo r Lyndon LaRouche. The failure of Democrats to cross-over in significant numbers What the press said to vote fo r Ronald Reagan in the Aside from the campaign Michigan primary apparently was through local media in Michigan the cause of a surprise upset vic­ instructing voters not to vote in tory by George Bush on the Re­ the Democratic primary, coverage publican side. Pollsters had put of that primary by the national Reagan-who lost to Bush by a news media, at a point where vot­ margin of 2 to I-at least 10 per­ ers were still voting in Michigan cent ahead only one day before the was a tribute to the best in Orwel­ Republican primary in anticipa­ lian fantasies. ABC Television tion of a Democratic cross-over news stated emphatically through vote. correspondent Frank Reyonds, The failure of the cross-over to "There was no primary for the materialize was the real surprise. Democratic Party in Michigan to­ A massive campaign of disinfor­ candidate but still on the ballot, day." ABC later admitted privately mation on the Democratic side received 35 percent. that its evening news program was declared that it was a meaning­ State Democratic leaders, the incorrect. NBC News in its 11 PM less contest-as only ex-candidate United Autoworkers and area Special Report on the primaries Jerry Brown and Lyndon LaRouche news media had gone to significant also stated through correspondent were on the ballot. This lengths to try to prevent La­ David Brinkley, "No primary was seemed to ensure that conserva­ Rouche's showing, up to and in­ held in Michigan today because tives would switch from Democrat cluding an attempted cancellation delegates were chosen at caucus to Republican on Reagan's behalf. of the primary, but to no avail. A meetings last month." A Mr. Cun­ Instead, 10,000 Democrats voted last minute effort to organize a ningham of the news department for LaRouche, and 30,000 voted Kennedy and Carter "write-in" stated that he could not explain uncommitted. Although delegates vote-neither were on the ballot­ why the statement was made by had all been selected one month was able to garner only 3 percent. Brinkley, but it did not matter earlier in hastily rigged "caucus­ Party officials convinced Carter because "Mr. LaRouche did not es," four times as many voters cast and Kennedy to officially remove get his 20 percent." ballots in the primary as in the their names from the ballot and CBS which also initially broad­ caucuses. then organized caucuses attended cast through its radio outlets that by only 16,000 Democrats, most there was no Democratic primary herded into buses and dragged to subsequently reported on televi­ caucus meetings by the UAW with sion that its meaning was incon­ LaRouche requalifies for instructions to vote for Kennedy. sequential and stated that each of Then, they asked the state to drop the candidates on the Democratic matching funds the primary on the Democratic ballot, LaRouche, Brown and un­ Democratic presidential pre­ side. but the primary was statuto­ committed had gotten "a share of candidate Lyndon LaRouche re­ rily mandated, and the Michigan the votes" without specifying the qualified his campaign for match­ Court of Appeals forced it to be vote total. Reportedly, an angry ing funds by receiving 15 percent held. It was LaRouche against LaRouche spokesman accused the of the vote cast in the May 20 Jerry Brown, and 10,000 went for network of subjectively dealing Michigan primary. Approximately LaRouche, despite the fact that with news; a CBS local newsman 47 percent of the Democratic vot­ Michigan party chairman Olivia in New York is said to have re­ ers cast their ballots as "protest Maynard issued a press release torted, "Yes, we do that every day, votes" in the "uncommitted" cate­ urging Democrats not to vote, and and we do it rather successfully, I gory. Jerry Brown, no long a the Detroit Free Press stopped think."

58 National EIR June 3, 1980 InSight by Nora Hamerman

American System living standards our free Republic would give an 'Scarce resources' mean Americans must lower their living upward impulse to the temporal condition of humanity every­ standards-it's a lie, and the American System approach to where." housing suggests why. Hardly a picture of American "greed"! Kelley and his fellow American System thinkers of the Lincoln political machine under­ stood that decent housing was re­ quired in order to reproduce a skilled labor force that could con­ " T he end of the two-car family national but of world-wide inter­ tinually absorb more advanced and the one-family home" is one est." Kelley, whose speech to Con­ technologies and educate its chil­ of the announced goals of the self­ gress in 1871 is printed in Allen dren fo r the creative scientific ad­ styled fu turologists who have de­ Salisbury's book, The Civil War and vances society'S progress requires. termined that America should the American System. had this to say Thus, when Federal Reserve undergo a change in lifestyle to on the political significanceof Amer­ chairman Volcker pursues credit accommodate to a world of scarce ican living standards: policies that destroy the housing resources and limits to growth. "Again, the great thing that industry, he is doing something According to these "Aquarians," the people of Europe would learn that is emphatically un-American. materialist greed of American by visiting us, would be the effect In addition to the "greenfield" workers has led to overconsump­ of free institutions upon the masses new steel plants and the vastly tion of the people, and that which they expanded nuclear installations the The prospect of further erosion would most admire, and which country needs, a U.S. government in living standards undoubtedly they could see nowhere else in such in the American tradition would enrages most EIR readers. Most, numbers and perfection, would be today be taking steps to make pos­ we trust, will also be aware of the the homes of our working people. sible the biggest housing boom this fact that it is totally unnecessary. I repeat, sir, that by nothing that country has ever seen. "Scare resources" are a myth per­ they would see in this country Every dwelling should be con­ petrated by those individuals and would the workingman or the cap­ structed to last for 50 years, with institutions who are making the italists of Europe be more instruct­ the built-in flexibility for growth political decisions to determine in ed than in looking at the homes of and technological change. Every advance that current resources are the workmen of Philadelphia. No fa mily requires enough space and exhausted and the new, frontier tenement houses there. Each la­ soundproof doors and walls-to technologies to replace them are borer who has a family dwells un­ allow each family member the not developed. der a separate roof, which is most space to pursue uninterrupted ac­ But many of our readers may frequently his own; in a house tivities of a wide variety. not realize that there is an explicit lighted by gas, supplied with an It is not necessary to undertake "American System" republican abundance of pure hydrant water. vast fe deral housing projects to tradition of providing abundant, In every house there is a bathroom, bring this about. What is required high-quality housing for the entire into which thpTe run streams, is a two-tier system of credit and population. warm and cold, of the pure water taxation that rewards investment A little over a century ago, provided by the public. into such housing and other pro­ Republican Congressman William "This is a startling contrast to ductive projects, while harshly D. Kelley made a plea fo r Phila­ the homes · of the workingmen of penalizing wasteful, speculative in­ delphia to host a great Centennial England, France, Belgium, Prus­ vestment. And: America's entry exposition to commemorate the sia, or any other land. To thus into the new gold-backed mone­ "birth of repUblican liberty" in bring the people of Europe to a tary system the Europeans have America, as "events not merely of knowledge of how laborers live in been putting together.

EIR June 3, 1980 National 59 CongressionalCalend ar by Barbara Dreyfuss and Susan Kokinda

"unreliable partner in international A study commissioned by Dem­ H ouse Committee slashes cooperation" and NASA spokes­ ocratic presidential contender Lyn­ fusion and NASA budgets man fear that NASA-ESA cooper­ don H. LaRouche revealed that The House Appropriations ation more generally will be severe­ trucking deregulation would be Committee in early May proposed ly crippled. "far costlier than the Vietnam major slashes in the FY 1981 mag­ War" to the American economy. netic fusion budget. At the same Losses in production due to dere­ time a House Appropriations Sub­ gulation were placed at a stagger­ committee cut a supplemental ap­ ing $500 billion over 8 years, by propriation for the NASA 1980 T rucking dereg heads itself capable of producing an eco­ budget that would have crippling for House vote nomic collapse. effects on its space program-and A deal has been struck between It is well-known on Capitol Hill that of Europe. The cuts in the fu­ the Carter administration, Senator that both Cannon and Howard sion budget were $60 million, Howard Cannon (D-Nev.), and have been blackmailed by the Cart­ bringing the entire budget down to Rep. James Howard (D-N.J.) that er Justice Department around its $373 million fr om the Department will rush legislation to effectively "Abscam" and "Brilab" probes. of Energy's proposed $403 million. deregulate the nation's trucking in­ Last week, Carter people upped the This total is far lower than the $433 dustry to a House vote by next pressure on Howard, threatening million proposed by Rep. Mike week, well-placed Capitol Hill to cut off more than $1 billion in McCormack (D-Wash.) to achieve sources report. federal highway fu nds for the New a working fusion reactor by the end These sources say that the Sur­ York-New Jersey area unless he de­ of the century. The appropriations fa ce Transportation Subcommittee livered an acceptable trucking bill. committee cuts, if accepted by the of the House Public Works Com­ The leaders�ip of the American full House, will severely delay the mittee, chaired by Rep. Howard, Trucking Association, the truck­ design of the next-step engineering marked up a bill that had the full ing industry lobby, has evidently test facility, and hurt all on-going blessing of Howard Cannon and deluded itself that they are going to fusion experiments. President Carter. Cannon spon­ be able to "live with deregulation." At the same time the subcom­ sored trucking deregulation The ATA steadfastly refused to mo­ mittee proposed terminating through the Senate last month. Ac­ bilize its membership for anything NASA's Solar Polar Mission, its cording to the deal, the Public more than a perfunctory letter writ­ most important scientific project, Works Committee will report out ing campaign. Now, reliable on the grounds that NASA has re­ that bill, with no significant sources report that the ATA is ap­ fused to "balance" its budget. The . changes, for a House floor vote parently going to claim some kind termination of NASA's Solar Polar next week. With backing fr om of "victory" when the bill is finally Mission has raised the ire of the House Speaker Rep. Thomas 'Tip' passed since it will be only "80 per­ Europeans who are paying for half O'Neill (D-Mass.) the bill will sail cent as bad" as the Cannon bill. of the $320 million project and have through the House. The ATA leaders are said to so fear already spent $30 million on the Cannon plans to introduce the the wrath of the pro-deregulation program, which would simultane­ House version of the bill for a Sen­ Interstate Commerce Commission, ously launch two satellites crossing ate vote; it is expected to pass which has threatened to unilaterally the poles to orbit the sun in oppo­ quickly. If that happens, a possibly deregulate the industry, that they site directions, resulting in unique long drawn out series of conference were "afraid to push too hard data on solar phenomena. The Di­ committee discussions will be against any bill." rector of the European Space avoided and a bill will be on the The leadership of the Interna­ Agency has indicated to NASA President's desk for signing by ear­ tional Brotherhood of Teamsters that they now consider the U.S. an ly June. (IBT) has likewise refused to mobi-

60 National EIR June 3, 1980 lize its membership for more than guaranteed prices and give out urban poor. The bill would increase letter writing. loans and loan guarantees. The bill the depreciation allowance for provides for $3 billion to start syn­ small businesses operating in the thetic fuels production. Over the zones. next 4-5 years an estimated $17 bil­ Whether Kemp knows it or not, ,S ynthetic fuels bill lion will be needed, and later, ap­ his legislation corresponds to a going to floor soon proximately $68 billion will be re­ Club of Rome plan to deindustrial­ The House and Senate Confer­ quired to achieve the goals set out ize and deurbanize American cities ence Committee that has been in the bill. by dispersing skilled blue collar working on the omnibus synthetic The conference committee is workers, leaving only low-wage fuels production legislation, S.932, working on the finalpoi nts that still service, labor-intensive industries. is finishing up its work and staff separate the House and Senate pro­ Kemp boasts about mobilizing aides expect final details of the bill posals. These deal with amend­ "human capital," and Stuart But­ to be worked out at a conference ments added by the Senate to fi­ ler, a British economist now resi­ committee meeting May 21. The nance solar energy production, dent in the U.S. at the Heritage conference committee bill is an geothermal energy production, and Foundation and the moving force amalgamation of a House proposal biomass production. The bill does behind the bill admitted that "these introduced by Congressman not deal with nuclear energy, the (jobs and) employees may com- most efficient, productive energy . mence with low-paid, unskilled Moorehead (R-Pa.) last year to es­ ' tablish a synthetic fuels industry, source. work ... " An aide to Kemp added and a proposal by Senator Henry that a substantial exemption from Jackson (D-Wash.) to establish an payroll taxes for firms operating in independent synthetic fuels corpo­ Kemp calls for the "enterprise zone" was explicitly ration. "little Taiwans" geared toward fostering "labor-in­ The new bill would establish a Rep. Jack Kemp (R-NY), a top tensive" industries. The aide said synthetic fuels corporation, an in­ economic advisor to Ronald Rea­ that Kemp would like to incorpo­ dependent government corpora­ gan, introduced the "Urban Jobs rate many of these enterprise zones tion using government money, to and Enterprise Zone Act" on May as "foreign trade zones" where oversee production of synthetic ' 1 in an effort to foster "j ob-crea­ components could be imported to fuels. The aim -of the bill is to pro­ tion" in decaying inner cities. The the U.S. duty-free. "You know, like duce 500,000 barrels of synthetic brainchild of several British econo­ the industries in Taiwan." fuels, an extremely expensive, high­ mists, including Sir Geoffrey Kemp's aide went on to talk ly inefficient energy source, by the Howe, Chancellor of the Excheq­ about the misallocation of federal year 1987, and 2 million barrels a uer, the legislation has the explicit resources into loan guarantees for day by 1992. . intent of fostering what Kemp odd­ declining industry, citing Chrysler As it is anticipated that it would ly terms "high-technology, labor as an example and stressed that take 9 months to 2 years to establish intensive jobs" like the electronic Kemp's bill would be a more ap­ a functioning corporation, the bill component assembly industries in propriate direction into small, would place the development of the Taiwan. It would do this by target­ starter industries. synthetic fuels industry under the ing depressed urban areas as "en­ Kemp points out that the cur­ Department of Defense, using the terprise zones" which would sus­ rent British budget calls for the in­ Defense Production Act as a basis. pend safety regulations and most corporation of six "enterprise Thus, a large part of U.S. energy business, property and payroll tax­ zones." development would be militarized. es as an incentive to luring small Republican Presidential candi­ The bill would award govern­ businesses to open up in the areas date Reagan is reported to have - ment contracts to companies at and provide employment Co r the "loved" the bill.

EIR June 3, 1980 i National 61 National News

ronmentalism, and has called for a ban and Research, which does "futurology" on all nuclear power facility construc­ fo recasting, said, "That's easily ex­ tion projects. plained by the Telegraph Equation. If Kennedy proposes you have a mechanical hand randomly switching on and offa telegraph switch, 're-industrialization' you would expect the signals are spread Senator Edward Kennedy went to New­ out; but instead you get random bunch­ ark, New Jersey last week and unveiled The long arm of FEMA ing up. That's all there is to it-it's just a souped-up version of his "economic With President Carter's declaration of random bunching up, totally acciden­ program." the entire state of Washington a Federal tal." The familiar call fo r wage and price Emergency Area in the wake of the Mt. On the ground in Washington, controls was there, but Kennedy has St. Helens volcano eruption, the Federal FEMA has complete control over all the added a proposal for an "American Emergency Management Agency operations of the U.S. Geological Sur­ reindustrialization corporation," which (FEMA), which will run the entire pro­ vey, the Department of Transportation, he would establish "within the first 100 gram, has fo r the first time in its short the Department of Agriculture, and the days" of taking over the White House. but violent history taken over control of Department of Housing and Urban De­ The corporation, he explained, would an entire U.S. government unit-the velopment, which are watching the vol­ be a quasi-public institution, adminis­ State of Washington. Simultaneously, cano, dealing with emergency transport, tered by a board whose members came Niagara Country in New York State, assessing the effect of volcano ash on from both the public and private sector. site of the Love Canal chemical disaster, crops, and preparing to relocate whole It would be empowered to make grants, and Cameron County in Lousiana, site communities in the area. In particular, provide loan guarantees and subsidies of the Lake Charles floods, were also FEMA is directing the Army Corps of to individuals, businesses, industries, re­ declared Federal Emergency areas by Engineers and the Portland Port Au­ search organizations and cities interest­ Carter, and put under FEMA control. thority in their takeover of the Port of ed in new economic development or "re­ Adding these to the already vast powers Portland, which has been entirely shut vitalization." FEMA exercises over the Cuban refugee down by volcano sludge pouring out of The corporation would receive funds relocation in Miami, which extends to the mouth of the Columbia River. from both Congress and from borrow­ relocation settlements in Wisconsin, FEMA Mitigation and Research is ing in capital markets. Initial funding Pennsylvania, and Arkansas, in the first even making the "technical decision" on would be pegged at $1 billion, with an short weeks of May FEMA has used an the 18-mile long "debris dam" of torn eventual funding level of $25 billion. unprecedentedly large number of simul­ trees, sludge, and rock which has built Kennedy surrounded his program taneous disasters to gain control over up a huge "wall of water" reservoir of with some podium thumping rhetoric: whole sections of the country. melted glaciers along the Columbia trib­ "Our goal must be nothing less than the In each of these areas, President utary, the Cowlitz River. "We're trying re-industrialization of America .... I am Carter is mandated under federal law to decide whether to purposefully breach proposing what ammounts to a Mar­ PL-93-288 to appoint a single Federal the dam," said a FEMA source, thus shall Plan fo r America." Coordinating Officer fr om FEMA, who flooding the lower Cowlitz and Colum­ The would-be Democratic presiden­ has total control over all federal activi­ bia valley with tons of water and debris. tial nominee also declared his support ties in the emergency area. Speaking of for a "two-tier" credit and tax system Robert Stevens, who has been appointed that would "reward investment in pro­ Federal Coordinator for Washington duction" and "penalize speculation." State and has set up an emergency bunk­ As Kennedy departed from Newark er in Vancouver, Washington near the U.S. admits Soviets for points West, observers noted the Mt. St. Helens volcano, a FEMA source similarity between the Kennedy propos­ said, "He has sole and total Federal have laser weapons al for an American "reindustrialization authority in the area. He can assign The New York Times last week carried corporation" and one made by invest­ anyone to do anything, go anywhere, leaks fr om worried Carter administra­ ment banker and corporatist, Felix Ro­ requisition anything, military style. If he tion officials warning that the Soviet hatyn of Lazard Freres. Rohatyn is wants a C-l40 transport plane, he gets Union has developed-and deployed­ known to be among Kennedy's advisors, it. If he tells some general to get the hell highly sophisticated ground-based laser while also advising President Carter and out of there, the general gets the hell beam weapons. Such weapons systems, now, John Anderson. Other sources out. He has very firm, centralized con­ officials say, have the capacity to knock speculate on exactly what kind of "re­ trol." out U.S. space satellites and by the mid- vitalization program" Kennedy has in Asked about the sudden rash of 1980s, will be deployed in space. mind, since the Senator is a staunch emergencies simultaneously around the According to the Times report, gov­ supporter of energy conservation, envi- nation, a source in FEMA Mitigation ernment officials sent their estimates di-

62 National EIR June 3, 1980 Briefly

• "HAT DAY" was declared by the State Department press corps rectly to President Carter. While the including the Maryland and Northeast on May 22. The entire press group Times says that these officials do not region, two key drug entry points. showed up wearing old hats. One view Soviet laser developments as alter­ In addition, the new Florida patrols week earlier, the press corps de­ ing the overall Soviet-American military are along the coast, not out in the open clared a three-hour moratorium balance, there are sources in the U.S. sea, and therefore, can be easily avoided. on news reporting and travelled military who dispute this. Such sources en masse to the Washington Zoo. say that if the Soviets have deployable A newspaper veteran at State laser weapon technology, they have the commented, "No wonder the capacity to cripple U.S. strategic capa­ French don't bother to consult bilities. A laser weapon system is said to Schlesinger : Carter with us any more." be the basis for a new generation of Soviet anti-missile defense systems. bungling requires open • THE SIERRA CLUB Bulletin The report of the Soviet develop­ published an interview this week ments is said to have stirred debate convention. with "independent" presidential within the Administration and on Cap­ Commenting that Jimmy Carter's "in­ candidate John B. Anderson. He itol Hill over U.S. efforts to develop corrigible bungling is in fact turning the called for a "30 to 40 percent" laser systems. The Carter Administra­ United States into the Inspector Clou­ cutback in energy usage. "We tion has called fo r spending only 200 seau of nations," historian Arthur could have a 30 to 40 percent million on laser weapons, mostly for Schlesinger declared in a May 22 Wall savings in energy without reduc­ small "tactical" programs. Street Journal op-ed that the upcoming presidential conventions must be ing our standard of living," An­ "thrown open," so that "delegates (can) derson declared. Anderson at­ vote fr eely for the best man." tacked oil companies as "short­ Writing from London, Schlesinger sighted and foolish" and ex­ Coast Guard drug stressed that "the most sensible political pressed strong support for the suggestion in recent weeks has come "conservationists" in American patrols crippled from Governor Hugh Carey of New politics. Coast Guard sources confirm that de­ York," who was the first prominent spite the massing of the largest single politician in the U.S. Democratic Party • LAZARD FRERES, the New . fleet since World War II in Florida, they to call for an open Democratic conven- ' York-based investment house, will be all but helpless to stop drug tion. With Carey's idea, Schlesinger not­ suddenly turned up $284 million trafficking in the area. ed, "we might have a chance of sparing in additional accumulated deficits These sources report that the com­ the world-and ourselves-the ridicu­ for the Washington, D.C. munic­ bined effects of $37 million in budget lous choice between Carter and Reagan. ipality during its audit of the city's cuts plus the redeployment of personnel Otherwise the decline of confidence in finances this week. The Lazard and ships to deal with the Cuban refugee the United States, the disintegration of finding addsto an already existing deficit of $180 million, and will crisis have forced the Coast Guard to all the Western alliance and the consequent but abandon monitoring and stopping spread of Soviet influence will be hard probably trigger new budget cuts incoming drug traffic. "Florida is wide indeed to arrest." by Washington Mayor Marion open now fo r drug smugglers," a Coast As evidence of the prevailing attitude Barry, who had brought Lazard Guard source complained. Since its in London toward Carter, Schlesinger in to do the audit. Lazard banker ships are now ordered to heavily patrol cited a comment by writer James Ca­ Felix Rohatyn is the architect of the Florida Straits area because of the merson in the Guardian: "Short of hav­ New York's Big MAC fiscal aus­ "refugee crisis," smugglers are adopting ing his trousers fall down on Pennsyl­ terity reorganization scheme. an "avoidance strategy." Instead of vania Avenue, President Carter could going through the Yucatan Channel and hardly make any more public blunders • OVER EIGHTY MILLION heading east, they are taking a new than he has done over the last few Americans, totalling 53.4 percent route that heads toward the Tampa area. weeks." of the American popUlation, claim The fo rmer Tampa fleet is now on duty Schlesinger'S op-ed followed by one to have had at one time or another in the Florida Straits, as are craft for­ day an op-ed by Carey in the New York a "born-again" Christian experi­ merly on duty in the Gulf of Mexico off Times in which he repeated his earlier ence, according to a new Gallup Texas and Louisiana. call for an open Democratic convention Poll done under contract for ma­ Another route from Colombia goes and stressed that the motivations behind jor Christian organizations. The past Cuba and then up the East Coast. this call were growing stronger with the Gallup findings were released by Los Angeles Times Cutters have been pressed into Florida daily increasing evidence of Carter ad­ the May 19. duty fr om Several East Coast points- ministration incompetence.

EIR June 3, 1980 National 63 FactsBehind Terror by Jeffrey Steinberg

Red Brigades threaten Giscard began a street confrontation that left 50 policemen injured. Italy'sJamous terrorist gang has threatened to hit Giscard, The same day in Stuttgart, Helmut Schmidt and other world leaders at the Venice about 700 people held a demon­ economic summit in June-where the British and American stration demanding better condi­ tions for imprisoned Red Army governments fear they will introduce a gold remonetization Fraction (Baader-Meinhot) terror­ measure. ists. They marched around the prison where Fraction member Italy'S R� Brigades terrorists is­ political process, in particular. One GUnther Sonnenberg is on a hun­ sued a communique on May 17 ,nust observe the British and ger strike to protest violations of that threatened the lives of West American governments' fearful­ his human rights. German Chancellor Helmut ness that Giscard with Schmidt's Political violence has also bro­ Schmidt, French President Giscard backi.ij; will propose gold remo­ ken out in France. Two weeks ago d'Estaing, and other European netization at Venice. 30,000 people organized by Alain heads of state who will gather in For the past five months Al­ de Rothschild and his Zionist net­ Venice in June for two separate banese had been investigating the works demonstrated against Gis­ conferences. "Organized Autonomy" in the card's Middle East policy. Two The Red Brigades' commu­ Venice area. He jailed leaders of days ago a demonstration of nique also claimed responsibility that semilegal terrorist front 10,000 students at Jussieu Univer­ for the May 12 murder of Alfredo group. His pursuit of the networks sity in Paris ended in a riot when Albanese, the head of the Venice set up by Prof. Toni Negri, the 500 Autonomists attacked police, antiterror operations of the Italian jailed, accused mastermind of the burned cars and broke windows. national intelligence unit, the Di­ Aldo Moro murder, earned him The connecting links between gos. The statement said Albanese threats, machine gun attacks on the French and German outbreaks was killed because he was "respon­ his office, and finally death. lead back to the same Bertrand sible for the organization of thou­ The most recent victim of Ital­ Russell Peace Foundation net­ sands of mercenaries who will be ian terror is Dino Amato, a mem­ works that organized the May charged with protecting the lives ber of the Rome regional govern­ 1968 riots in France to try and of the principal oppressors of the ment and local leader of the Chris­ topple Charles de Gaulle-after de world when they meet in June in tian Democratic party faction na­ Gaulle had left NATO and con­ an occupied Venice . ... the princi­ tionally headed by former Premier structed an independent develop­ pal murderers of the proletariat Andreotti. ment policy toward the Middle will meet to define their bloody In Germany Chancellor East policies ... these beasts ... think Schmidt has been recently hit with These networks form the ter­ the Italian proletariat will not re­ nationwide protests from the "pac­ rorism support structure under the sist. ... We of the Red Brigades ifist" apparatus, the wing of guise of pacifism and environmen­ are expecting you." NATO intelligence that grew out talism: the antinuclear "Action Schmidt and Giscard along of the "SANE" antinuclear move­ Reconciliation," the "Internation­ with the other government heads ment of the 1960s founded by Lord al Opponents of Military Service," of the European Community will Bertrand Russell. Last Saturday in the French Pacifist Union, and the be in Venice June 12 for a prelim­ West Berlin, 14 youths occupied "greenie" component of the ter­ inary summit before the annual the roof of the America House, a rorist Direct Action outfit, which advanced-industrial countries branch of the U.S. consulate, de­ will join American "greenies" in summit on June 22, also · set for manding the release of the Baader­ another try at storming the Sea­ Venice. Meinhof and other terrorists. brook nuclear plant site in New The threat is one more confir­ When police stormed the build­ Hampshire May 24: An essential mation that "foreign powers" con­ ing and took the group into cus­ coordinating center for the West trol the international terrorism tody, about 100 more youths split German mobs is the Evangelical that has destabilized the Italian out of the onlooking crowd and Lutheran Church.

64 Facts Behind Terror EIR June 3, 1980