Unholy war plot joins Dukakis, Shultz, Russia Panama hosts Ibero-American unity talks Razing of rain forests upsets world climate

Dukakis's mental health: an objective assessment "One of the most profound crises-and perhaps the most fundamental one-confronting the United states of America, is the catastrophic situation in our educational. institutions. Despairing parents have long recognized that the effects of America's broken-down educational system on students' capacity to think, are threatening to become as

devastating as the drug plague. . . . . "

An EIR S pecial Report

The libertarian conspiracy to destroy America's schools

Perhaps you think you "already know" about the crimes of the National Education Association. But do you know that our education system may now be one of the biggest threats to national security? This remarkable report takes up the defense of American education in the thoroughly documented, polemical style EtR is famous for. It was prepared by Carol White and Carol Cleary, who previously collaborated on the book, The New Dark Ages Conspiracy. It includes:

• Documentation on how the National Education Association has, over decades, progressively rewritten public school curriculum to foster the amoral celebration of infantilism. The result: rampant illiteracy and a hideous paradig.m shift associated with the "me" generation, to such lifestyles as "free" love, homosexuality, pederasty, pornography, violence, and satanic cults.

• The names of those who created the crisis and how they did it-facts which have not been published by other reports such as the one put out by the National Academy of Sciences, describing the collapse of U.S. education, particularly in the sciences. 152 pp. Order your copy today! • The alternative to this fast-approaching. dark age in culture: orienting Price: $250 education toward transmitting the classical heights of Western Judeo-Christian civilization. Lyndon H. LaRouche's curriculum for bringing this classical tradition From into the 20th century. EIR News Service • The 19th-century Humboldt curriculum, which has recently been the focus P.O. Box 17390 of attacks by groups opposed in principle to public education-in its first English Washington, D.C. translation. 20041-0390 . Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman From the Editor Managing Editors: Yin Berg and Susan Welsh Editoral Board: Warren Hamerman. Melvin Klenetsky. Antony Papert. Uwe Parpart­ Henke. Gerald Rose. Alan Salisbury. Edward Spannaus. Nancy Spannaus. Webster Tarpley. William Wertz. Carol White. Christopher White Science and Technology: Carol White Special Services: Richard Freeman Book Editor: Janine Benton Advertising Director: Marsha Freeman T his week's Feature, which is also being produced as a 16-page Circulation Manager: Joseph Jennings Supplement to EIR in an initial press run of 100,000 copies, presents INTELLIGENCE DIRECTORS: all of the necessary documentary evidence required to objectively Africa: Mary Lalev�e Agriculture: Marcia Merry judge the question which was thrown into the media limelight in the Asia: Linda de Hoyos first week of August by a witty remark of President Ronald Reagan: Counterintelligence: Jeffrey Steinberg. Paul Goldstein Is the Democratic presidential nominee, Michael pukakis, mentally Economics: Christopher White fit for office? Why, unlike every other presidential candidate since European Economics: William Engdohl. Laurent Murawiec the infamous Tom Eagleton affair of 1972, has he refused to release Ibero-America: Robyn Quijano. Dennis Small his medical records? Law: Edward Spannaus Medicine: John Grauerholz. M.D. The dossier we present begins with an assessment written on Middle East: Thierry Lalev�e Aug. 9 by Lyndon H. LaRouche, Jr., of the strategic implications of Soviet Union and Eastern Europe: Rachel Douglas. Konstantin George the Dukakis "mental health" controversy; relevant excerpts of a Special Projects: Mark Burdman posthumous interview with Mussolini collaborator Dino Grandi; the United States: Kathleen Klenetsky now-famous National Democratic Policy Committee leaflet distrib­ INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura uted at the Atlanta Democratic convention, and the sources of all Bogo�: Javier Aimario assertions in that leaflet; a review of the Stelian Dukakis case; Du­ Bonn: George Gregory. Rainer Apel Copenhagen: Poul Rasmussen kakis's support of witchcraft; and a panorama of world press cover­ Houston: Harley Schlanger age. Lima: Sara Madueno Mexico City: Hugo LOpez Ochoa. Josejina The unfortunate Mr. Dukakis is also implicated, along with Sec­ MeMndez Milan: Marco Fanini retary of State Shultz and Arms Controlnegotiator MaxKampelman, New Delhi: Susan Maitra in an alleged sinister plan to make Jerusalem the'capital of Israel. In Paris: Christine Bierre Rio de Janeiro: Silvia Palacios our International lead story, you will read the startling revelations Rome: Leonardo Servadio. Stefania Sacchi of the Milan newspaper A vvenire concerning this secretive part of Stockholm: Michael Ericson Washington. D.C.: Nicholas F. Benton. William the U.S.-Soviet "peace" negotiations, a scheme which could only Jones unleash a genocidal religious war throughout the Middle East. Wiesbaden: Philip Golub. Garan Haglund Next week's Feature will report on the conference which has just ElR/Executive Intelligence Review (ISSN 0273-6314) is taken place in Panama, a gathering from all over Spanish and Por­ published weelcJy (50 issues) exceptfor the second week of July andlast week ofDecember by New Solidarity tuguese-speaking America which mapped out a detailed strategy to International Press Service P.O. Box 65178. Washington. DC 20035 (202) 457-8840 "achieve Latin American integration" as a "historical imperative." EIII'OfIHII HItItIt_rs: Bxecutive 1D1elligence Review NacbrichteDagentur GmbH. Postfach 2308. Our first report on this signal event includes the address of Panama­ Dotzheimentrasse 166. 0-6200 Wiesbaden. FederalRepublic ofOermany nian President Manuel Soli's Palma to the meeting to plan a "Second Tel: (06121) 8840. Bxecutive Directon: AmIo Hellenbroich. Michael Liebig Amphictyonic Congress." For an explanation of that imposing hel­

I. DeIlMMl: BIR. Rosenvaengets AIle 20. 2100 Copenhagen lenic word and all that it implies, I refer you to page 43. Like so OB. Tel. (01) 42-15-00

I. Mexieo: BIR. Francisco D/azCovanubias 54 A-3 many things that will truly change the history of our century, news Co1oniaSan Rafael. Mexico OF. Tel: 705-1295. of the conference in Panama has been obliterated from U. S. national J.".. IubreripIimI I.: O.T.O. Research Corpcration. Takeuchi Bldg.• 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo media reportage. 160. Tel: (03) 208-782l. Copyright C 1987 New SolidarityIDtemational PressService. Alliigbts reserved. ReprocIuction in whole or in part without permission stricdy prohibited. Second-class postagepaid at Washington D.C .• and at an additional mai1ing offices. 3 months-$I2S. 6111OD1bs-$22S. 1 year-$396. SinsJe issue-$IO ...... :Send all address changes to ElR. P.O. Box 17390. Washington. D.C. 20041-0390. ITillContents

Departments Science & Thchnology Economics

13 Africa Report 16 Razing of rain forests 4 Interest rate hikes bring 'Apocalypse' in Sudan? upsets world climate instabilities forward The transnational corporations are The Fed's action proves that it is 55 Dateline Mexico burning the Amazon rain forest. not internal credit market stability Stock market fraud. Results: vast amounts of pollution, and not George Bush's presidential dramatic changes in water-vapor ambitions that come first, but the levels and temperatures, and 56 Report from Bonn demands of foreign creditors. drought. Rogello Maduro reports. No future for Germany's coal 6 Drought bill won't save sector? the food supply 57 Andean Report AIDSUpdate 8 All of Ibero-America's Criminals or 'belligerents.' debt agreements suddenly 14 Official AIDS cases rise tum sour 58 Northern Flank 8% in a month Sweden subverts its secret service . 10 Currency Rates 60 Bavaria says kissing may 59 From New Delhi transmit disease 10 Food crisis was top Portents for the partyless poll. priority at Moscow 71 Dukakis might keep Koop Central Committee 72 Editorial on plenum The message from Panama City. 12 Agriculture USDA downplays drought damage .

14 Business Briefs Volume 15 Number 33, August 19, 1988

Feature International National

40 'New Yalta' plot for 62 'Peace' deals shaped to unholy war over lock U.S. into pro-Soviet Jerusalem exposed posture Secret three-way negotiations "Peace is breaking out all over," between Washington, Moscow, the TV commentators say. But the and Israel to recognize Jerusalem regional accords are designed to as Israel's capital have been force the U.S. into a fundamental exposed by an Italian Catholic shift in military strategic posture, newspaper. which the Trust expects the next The Democratic presidential nominee at a 1988 cam­ paign appearance. shortly before bis mental condition Documentation: The Helms President to implement. And that becamea major issue. amendment on Jerusalem. shift hands the world to Moscow.

24 'I never claimed Dukakis 43 Panama hosts Ibero­ 64 'Burden-sharing' means had been cured' American unity talks U.S. deserting Europe Dukakis has demonstrated that he As General Noriega told the suffers the types of grave conference in Panama City, never 65 Trade bill opens up aUy­ personality flaws which would lead have so few people made the bashing furor to outbreaks of depressive forces of imperialism so mad. withdrawal under stress, reports 66 Elephants & Donkeys Lyndon H. LaRouche, Jr. A Documentation: 'This dream of correlated issue is the pattern of integration': the text of Washington Post uses EIR's vindictive savagery by Dukakis's Panamanian President Solis material. circles against political foes. In Palma's speech to the meeting. fact, he represents Mussolini-style 67 Eye on Washington fascist ideology. 48 Ligachov disputes Medical flap Costs Dukakis 10 Gorbachov's reforms points. 29 Deathbed confessions of a 'Trust' agent 49 Belgium kowtows to 68 Congressional Closeup 'Europe '92' schemes 30 Is Dukakis the new 70 National News Senator Eagleton? 50 Shultz scheme a dud in The text of the NDPC leaflet that Central America created the furor at the Democratic Convention. I 52 Afghan deal is Documentation: The facts of the destabllizing the entire case. subcontinent

34 Ste6an: the governor's 54 Mexico approaches Chappaquiddick? constitutional crisis

35 An uproar in the world's 60 International Intelligence press

38 Laurie Cabot: the Dukakis court witch

39 Political moves to put NDPC out of business �ITillEconomics

Interest rate hikes bring instabilities fOlWard by Chris White

Alan Greenspan's Boardof Governorsof the Federal Reserve Foreign creditors dictate System rocked credit markets this week, first raising its dis­ In two areas, the Fed's actions accomplished that much, count rate, and then, by Thursday, Aug. 11, jacking the Fed to the supposed benefitof thoseforeign creditors. First, Tues­ Funds rate back over the 8% level. As a result of the credit day, Aug. 9, the unanimous Board of Governors, with the tightening accomplished over the last three months, the com­ support of 11 of the country's Federal Reserve Districts, mercial banks' prime rate is again at 10%, with further in­ increased the discount rate by half a percentage point, from creases expected. 6% to 6.5%. The discount rate is the rate at which the Fed Much play was made in the financial columns of the lends to financial institutions. Unusually, the announce­ strange conjunction, that now we have a Federal Reserve ment-which seemed to catch markets awaiting another in­ Board, with six sitting members, all appointed by Ronald crease in the Fed Funds rate, the rate set by the Fed for inter­ Reagan, acting unanimously to tighten credit and undermine bank lending for account settling, etc. -by surprise, was not the election campaign of George Bush. The credit tightening made at the end of the trading day. The Fed chose to act first was identified in financial circles around the world as the thing in the morning, on the very day the James Baker-run Fed's governing board signaling its so-called "indepen­ Treasury Department was going to market with the U.S. dence" from the political process, and other institutions of government's quarterly debt auction. government. In other words, forget the preposterous "fight The Fed's action highlighted the reality that the creditor against the threat of inflation takes priority" garbage, the Fed agencies which buy U.S. government debt are insisting on is signaling that the United States' foreign creditors come higher yields in the form of debt service, and will stay out of first, internal political arrangements a distant second. the market until they get them. Yields on all classes of U.S . For others, the latest round of credit tightening is bringing government bonds and notes soared back to year-high levels back thememories of August 1987, when, under thedirection as the big buyers kept aloof. After the first day of the three­ of the Swiss-based Bank for International Settlements, the day auction, it was widely reported that the Japanese, whom central banks, led by the Bank of England, set off the credit U.S. authorities count on to take half of the offering, had tightening which led to the New York stock market melt­ only chipped in $1 billion, against the $5 billion that was down of last October. Time will tell whether such will again expected. Thus, it was made clear that stability in internal be the case. For sure, however, what is being called the credit markets will be sacrificed tothe creditors' demands for "interest rate war" among the shapers of monetary policy in an increasing share of the take in the form of higher debt the United States, Britain, and West Germany that has been service. under way since early July, has once again detonated the Second, it was becoming clear that the Fed's tightening explosive combination of instabilities which make the pres­ actions are undermining the bankrupt banking system at one ent bankrupt dollar-based monetary and credit system what of its most vulnerable points. And thus, that the demands of it is. foreign creditors are also to be put ahead of the protection of

4 Economics EIR August 19, 1988 assets of domestic institutions and individuals. Up until this external indebtedness with a reduction in another such cate­ week, those responsible for the regulation of the insolvent gory. savings and loan institutions seemed to have been content to Chief among the instabilities brought back to the surface .let it be understood that their operation, while losing $1 by the Fed's actions will be the question of what exactly the billion a month, was under control. Their loss numbers ran controllers of the disposition of those speculative funds are throughthe end of May , before the Greenspan credit squeeze going to do. Thanks to the supposed financial orthodoxy of began to bite. Now, as June numbers become available, it is theEstablishment's Federal Reserve moneymanagers, a new also becoming clearhow misleading their reports have been. detonator has been built up within the bankrupt monetary The Dallas district of the Federal Home Loan Bank Board system, and control of that detonator has been placed in the reported that Texas thrifts alone had lost $2.14 billion during hands of the world's speculative hot mOQey merchants. the month of June. By Thursday, Aug.11, when the doliarhad broached the Since the Volcker high interest rate regime of the early $1.90 level to the deutschemark for the first time in the last 1980s, the thrifts have been reduced to insolvency as they 18 months, as a result of the continuing upward trend in were forced onto money markets to borrow funds to offset interest rate within the U.S., German Finance Minister Ger­ losses incurred on lower fixed interest revenue streams.The hard Stoltenberg, and centralbank President Karl-OttoPoehl increase in borrowing costs for these outfits will push the yelled enough.Further increases in theexchange value of the number of insolvent cases up, fromthe level of about 500out dollar, they warned in the customary circumlocutions of the of the 3, 000 total in the country, to well over 1,000.The technocrats from the Group of Seven industrialized nations, effect of that increase will be felt throughout the financial "c ould be counterproductive." In the aftermath of their re­ system. Here, no doubt, theforeign creditors are licking their marks,the dollar fell, back down to the $1.87 range. chops over the windfalls to be made when the U.S. thrift But meanwhile, it became clear that the Federal Reserve system, and thechunk of banking in general that comes down was actually beginning a new round of money tightening. with it, is finally put into liquidation. Since the commercial banks increased their prime rate after theFed tightened thediscount rate, it is assumed that the one The instabilities caused the other.Not really so. The prime rate going up, European financial insiderspoint out that thereis an added again, marked the end of one cycle of credit tightening, set twist to the above. While increasing rates of interest within off in May and June. The increases in the discount rate and theUnited States have, because of thedifferential maintained the fed funds rate actually marked the beginning of a new by U.S. authorities-between especially U.S. rates and those round of credit tightening which in the next weeks will take which prevail in Germany and Japan-sucked speculative theprime rate back over the 11% level, and perhaps higher. funds from around the world into the dollar, taking the cur­ This reality was affirmed to the Wall Street Journal Fri­ rency back to the $1.90 level to the deutschemark, the U.S. day, Aug. 12, by Gordon Pye, the chief economist at Irving monetary wizards have thereby made their plight that much Trust."B anks typically maintain a margin of at least 1.15% worse. The money they have so attracted has stayed out of betweenthe prime rate and their own cost of funds, reflected both the U.S. stock market and the U.S. bond market. By in 9O-day certificates of deposit. The rate on 90-day CDs some accounts, $50 billion such funds have been sucked into surged to 8.45% from 8.05% last week, and when banks the United States fromWest Germany in the firstsix months include thecost of federal deposit insurance and theirreserve of this year, twice the level of 1987 as a whole.Instead, such requirements,that real cost hovered at about 8.9%. Obvious­ funds have been placed as cash instruments within thebank­ ly, 'banks weren't keeping their traditional margins with a ing system. Suppose then, conservatively, that about twice prime at 9.5%,' Pye said." the German level of inflow has been attracted from around Equally obviously, the increase to 10%, looked at the theworld. What happens inside the United States when those way thebankers' would, was a minimum.The Fed's actions who were encouraged to put their cash into higher yielding guarantee it will go higher, in the not�too-distant future, to instruments inside the United States complete the calcula­ maintainwhat thebankers' call "the differentials. " tions which lead them to conclude thatthey arelosing money No doubt some wizard, tucked away in a closet some­ by staying? where in the Federal Reserve's headquarters, has a set of While increasing U.S. interest rates have provided the charts and numbers, from which trend.lines can be adduced short-term incentive, the speculation has been encouraged by that show there is a three- to four-month lag time from the the administration'srhetorical campaign on the reduction of beginning of a cycle of interest rate increases to the general­ the trade deficit. Yet, by increasing the exchange rate of the ization of its effects throughout the financial system. Phase dollar,those responsible for attractingt he speculative inflows I: May, June, July. Phase II: August,$eptember, October. have proven that reducing the trade deficit is not actually on. Since theeffects are calculable in othe!:ways too, thegenius­ their agenda. They are thus increasing outstanding U.S.ob­ es mightwell have just ensured thatthe next blowout, which ligations to the rest of the world, and not reducing those they are demonstrably incapable of dealing with, may well obligations, or offsetting an increase in one category of such occursome time thisfall.

EIR August 19, 1988 Economics 5 2) "Assistance to Livestock Producers•. ..authorizes special forms of livestock assistance (e.g., feed donations, transportation assistance ) .... Directs [the U.S. Depart­ ment of Agriculture ] to implement a limited emergency for­ age program for established pasture damaged by drought with USDA paying half the cost of seeding and fertilizing of cer­ tain forage crops on the land to facilitate late fall 1988 or early spring 1989 grazing and haying. This particular pro­ gram would be strictly limited to maximum expenditures of Drought bill won't no more than $50 million with no individual producer receiv­ ing more than $3, 500.... For livestock producers, federal save the food supply feed assistance could not exceed $50,000 in benefits.Pro­ hibits benefits to those livestock producers with gross reve­ by Robert Bakerand Marcia Merry nues of over $2.5 million annUally." This approach taken by Congress is oriented toward trying to keep livestock producers fromgoing broke,but, provided Thefederal drought relief legislation passed by Congress and they can hang on even one more year, thousands of farms signed by President Reagan the week of Aug. 8, is a sorry will not be as functionally sound next year.The emergency excuse for assistance to thenation's farmers,when thestakes measures do not attempt to enhance the meat supply capacity are nothingless than preserving and expanding the food sup­ of the country.On Jan. 1, 1988, before the drought set in, ply in the face of known, massive shortages worldwide, and the national cattle inventory had dropped to 99 million head­ theexpectation of worse to come.The legislation was passed a 27-year low and the first time that the winter head count in a record time of six weeks, marked by much bipartisan, had been below 100 million since 1961. Viewed against the self-congratulatory rhetoric about helping farmers. Sen. Pa­ need for expanding meat supplies, the $50 million figure for trick Leahy (D-Vt.), chairman of the Senate Agriculture pasture restoration-about 50¢ peranimal-is nowhere near Committee,said, "T his bill will keep our farmers on theland, adequate. in business, and ready to go next year. It will get assistance 3) "Assistance to Crop Producers. Provides disaster quickly to those who need it most. It is a clean, effective, payments to producers of annual commercial crops who lose fair, and equitable bill that won't break the bank." 35% of 1988 crop due to the drought. ...Provides reduced In reality, thousands of farmers are facing forced shut­ yield and prevented planting disaster payments to wheat, feed down, herds are being liquidated, and land and farm infra­ grains, cotton, and rice program participants at a rate of 65% structure are being destroyed needlessly. The new law is ill­ of the 1988 target price or 65% of the county loan rate in the conceived and will not do what is required. case of non-participants who raise program crops ....[Pay­ In the analysis below, we quote from the "Summary of ments will be made for peanuts, sugar beets, sugarcane, and SenatelHouseConference Agreement on Drought Assistance tobacco producers at a rate of 65 % of the 1988 price support Legislation," released by Senator Leahy's office Aug. 5, level. ] Provides payments for soybeans and other nonpro­ which describes the bill as later enacted into law; following gramcrops payments at a rate of 65% of the average producer each quotation is EIR ' s critique, point by point. market price of the last five years. Limits combined crop 1) "Extent of Disaster Coverage. Provides disaster ben­ insurance benefitsand disaster payments up to an amount that efits for those producers who suffered losses in 1988 due to does not exceed income that would result from normal crop drought, hail, excessive moisture, or related conditions." yields. . . . [Requires farmers to get federal crop insurance Congress took no notice of the scope of the pre-drought for 1989, under certain terms. ] Provides basic income pro­ food stocks shortages, relative to domestic and international tection for crop producers with total or near total losses by needs, and failed to proceed on drought relief fromthe view­ making additional assistance available to those who suffer point of how best to assist farmers in order to guarantee . losses in excess of 75%. This would be provided in the form national and international food supplies. Congress actually of an additional direct payment equal to 25% of theapplicable suppressed the levels of financial assistance authorized for target price, price support level, or five-year average market drought-stricken farms, in order to prevent the triggering of price." the Gramm-Rudman automatic cuts in the federal budget­ On the farmer's first 35% of loss, no compensation is a mechanism which itself should be cut, in the face of the provided.Plus, the formula in thelegislation guaranteesthat current foodand economiccrises. The total cost of the drought fullcompensation will not be made for the losses over 35%; relief law is set at $3.9 billion, which is less than the losses only partialcompensation will be provided.What this means, to farm income that will be suffered in Iowa and Illinois can be seen from the following hypothetical case of a corn­ alone. grower with a 100%loss. Assmne that the average yield per

6 Economics EIR August 19, 1988 acre is 100 bushels. Assume a 100% loss. The government of going deeper in debt, under the prevailing practices of the compensatesyou for 65% of your normal yield, at a price per FmHA, Farm Credit System, and commercial banking com­ b�shel of your average yield that is 65% of a target price munity that have been so onerous to date. Credit should be (approximately $2.95), which is $1.92. This latter price, made available by the national Treasury, through the local times 65 bushels per acre, is approximately $125 per acre, banking system, to provide low interest production and cap­ which is 42% of what the corngrowerwould have expected ital improvements, and to shore up the capital base of local to realize without a drought. farm banks. Many of these banks areat thepoint of insolven­ The USDA is supposed to provide additional assistance cy, and whole sections of the U.S. farm sector are disinte­ to any farmer with losses over 75%, but basically the bill grating. decrees that across the board, farmers will only be compen­ 6) "Dairy Price Support. DirectsUSDA to increase the sated for 42% of theirloss es. Some farmerswill additionally price support for milk 50¢ per hundredweighteffective April receivecompensation fromtheir FederalCrop Insuran ce, but 1, 1989 through June 30 , 1989. Deletes the anticipated Jan­ according to the national official estimates, only 44% of uary1, 1989 price supportcut . " farmershave crop insurance-not all in thedrought areas . In This is merely a token of support to dairy farmers, thou­ Maryland, for example, in 1987 only 3% of the state's ap­ sands of whom will not be able to maintain their herds. The proximately 1.5 million acres of cropland were insured. current parity price for 100 pounds of milk would be $24, In view of the fact that the drought will not liftovernight, and farmers are getting only about $11. The costs that the farmers receiving drought assistance of the restricted type droughtnow adds to the farmer's costs ofproduction-f eed, offered in the drought relief law, will still be financially water, pasture-willbe too much for thousands of dairymen incapacitated to continue production. Another layer of farms to bear,and regional milkshortages will worsen. At present, will slide into extreme financial difficulty, in an agricultural there are under 9 million animals in the U.S. dairy herd, a banking environment that is already disintegrating. record low. The inventory stood at 11 million animals just a 4) "Advanced Deficiency Payments. Producers will not few years ago. Even with the bovinegrowth hormone, a year be requiredrepay to advance deficiencypayments on any unit from now there will be no way to keep up needed levels of of productionthat failed or was prevented fromplanting due milk production. As of this fall, the reserve milk powder to disaster, unless that unit of production received a disaster CCC stocks will be entirely gone. payment. Producers who would have beenrequired to repay 7) ''CommodityStock Adjustment."Permission is giv­ a portionof theiradvanced deficiencypayment will not have en to farmersto plant certain amounts of soybeans, sunflow­ to make repaymentbefore July 31, 1989, for that portion of ers and oats on their acreages allotted by the USDA "base the crop for which they received a disaster payment. " acreage" to plant wheat, feed grain, uplandcotton and rice. This "Catch-22" provision requires that thedisaster com­ This provision permits the planting ofsome oilseedcrops, pensation money the farmer may get, may possibly be paid andoats on land that prior to thedrought could only be used right back, at least in part, to meet obligations of repaying for grain production and cotton-if the USDA base acreage advanced deficiencypayments receivedfrom the government allotment was to be retained. However, what is actually re­ because crop prices rose under drought conditions. quired is "commissioning" large plantings of crops in the 5) ''Farmers Home Administration Loans.USDA is national and internationalinterest, along theguidelines of the directed to take steps to assist businesses affected by the World Warn Lend Lease program, and other warmobiliza­ drought by making operating loans available for 1989 oper­ tion production. ations. USDA is encouraged to aid producers affected by 8) "Assistance to Ethanol Producers. Permits USDA disaster by exercising forbearance on the collection of loan to sell com held by the Commodity Credit Corporation as proceeds, restructuring credit, and encouraging commercial feedstockfor ethanol producers at reducedpric es. The max­ lenders and FmHA to exercise forbearance before declaring imum amount of com available for salefor this purpose was loans in default. USDA is authorized to provide emergency limited to 12 million bushels per month and the sale was loans for producers whose crops were affected by disaster in restricted to ethanol producers who utilize no more than 30 1988, whether or not the producer hadpreviously purchased million bushels of com per year." federal crop insurance. Extends FmHA loan guarantees to In view of the acute shortages ofcom for livestock and help those producers who have borrowed from the Farm cereals use, this provisionmeans thatcom ethanol production Credit System or other commercial lenders and cannot repay should be suspended in order to permit scarce corn stocks to all or part of 1988 operating loans or regularly scheduled go into the food chain. Independent, family farm interests 1988 or 1989 installments on farm ownership, farm equip­ involved in ethanol production should instead be financially ment or farm structures loans." induced by the USDA to return to food and fiberproducti on, Low-interest credit is required to provide thecontinuity because of the drought. Subsidies and tax breaks should be of farm operations until new production is generated, how­ summarily terminated for the cartelcompanies that dominate ever, this provision offers the drought-hit farmer the option ethanol production-Archer Daniels Midland, and Cargill.

EER Augum 19, 1988 Economics 7 All of Ibero-America's debt agreements suddenly turn sour by MarkSonnenblick

In an Aug. 6 interview with Brazil's TV Globo, U.S. Secre­ Venezuelans clamor for moratorium taryof State George Shultz boasted that his method of dealing Even the continent's richest country, Venezuela, is now with the Thero-American debt crisis has had "constructive at the end of its rope.Venezuela paid $32.2 billion in debt results over the past few years and the whole thing has kind service between 1983 and 1987, and is committed to paying of evolved." He called his method "the 'case-by-case' ap­ another $27 billion by 1993. It is committed to paying $5.1 proachand a menu of options-kind of like a cafeteria line­ billion thisyear, which is 59.3% of its expected $8.2 billion somethingthat has worked." The "menu " he is speaking of in petroleumexport revenues. gives creditor banks their "freedom to choose " how to suck When Venezuela last renegotiated its $56 billion foreign the bloodof theirbankrupt creditors. debt, the banks agreed that they would lend fresh money In the case of new debt deals just concluded by Brazil and should oil prices drop.Oil prices aregoing throughthe floor, Chile, bank creditors will have several options for converting but thebankers have refusedto increase theirexposure. Ven­ debt paper, which is unlikely ever to be redeemed, into own­ ezuela would have to bum out the last $2 billion of its liquid ership of those countries' rich mines, factories, and agricul­ reserves to make a $2.5 billion debt payment due in Novem­ tural land. Chile has reduced its outstanding foreign debt by ber, President Jaime Lusinchi told the Venezuelan nation in 20% through such means, but it has little equity left to change an Aug. 4 TV address. He said, "They lent us on the basis of for the restof the debt paper. oil, and on the basis of oil, we will pay them.... It would Shultz proclaimed Uruguay to be a "success story " during be foolish, and we are not foolish, to continue with the same his visit there, "because it is a story of opening markets, of debt treatment we have had up to now." opening yourself to trade, of not having capital controlsand Rather than simply declaring a debt moratorium, as the exchange controls, and in general, of trying to free up the daily El Universal had predicted, Lusinchi announced yet system." The I 0% of Uruguayans who have had to fleetheir another mission to talk with creditors. Lusinchi advocated previously prosperous country in search of work as a result leaving the debt problem to the next administration, to be of such policiesmight not even laugh at Shultz's description. elected Dec. 4. His party's candidate, Carlos Andres Perez, The "opening " of national economies preached by Shultz is reportedly met in Chicago in April with the U.S. banking nothing other than eliminating the function of the sovereign elite, including David Rockefeller and Democratic and Re­ nation-state to protect its resources and its ability to promote publican congressionalleaders .All agreed Venezuela should economic progress from the ravages of internationallooters. withdraw its $1.2 billion contribution to the International Since the debt crisis began in 1982, every Thero-Ameri­ Monetary Fund. Lusinchi's mission to Washington is to get can country has tried playing by the rules set by the Reagan­ the U.S.Federal Reserve to advance thatmoney for 180 days, Bush administration, and crawled to the banks for "case-by­ until Perez is back in the presidency. case " debt renegotiations. Each country has agreed to an Former Finance Minister Ivan Pulido Mora responded, average of four debt "solutions " along Shultz's specifica­ "We are on the eve of another Black Friday, so we reiterate tions, with its bankers and the InternationalMonetary Fund. our call for a unilateral debt moratorium and the establish­ Yet, the more they starved their people and canceled devel­ ment of exchange controls." Many independent economists opment projects to meet absurd and unjust debt plans, the areechoing his call. less able those countrieswere to pay. The chickens are now coming home to roost, even for Colombia and Mexico spar with bankers presidents who so feared angering Washington that they Colombia, the only one of the two dozen Thero-American enraged their own populations by imposing austerity to republics to have kept up on-time debt payments, has also pay the debts. Successive rollovers and postponements beenlooted dry.The revised 1988 budget, presented Aug.4, of unmeetable due-dates have just caused bigger and provides for 54% of expendituresto go to servicing the for­ bigger crises. eign debt. The creditors' cru;tel led by Chemical Bank is

8 Economics EIR August 19, 1988 holding up disbursements of $1.85 billion in new money up for losses from the collapse of American industry,energy, promised Colombia to maintain the fictionthat it was paying farming, and real estate. So they demand that debtor coun­ its debts. Comptroller Rodolfo Gonzalez Garcia wamed Aug. triescut consumption and investment still more, and openup 4 that Colombia might have to declare a moratorium if the their assets to the bankers. $1.85 billion were not disbursed by theend of the year. The But debtor governmentscannot do this without repressing banks are making the money conditional on Colombia sub­ theirpeople. ArgentinePresident Raul Alfonsin warnedJuly mitting itself to full IMF surveillance. 26 that debtors are being treatedthe way the Versailles Treaty Mexican President Miguel de la Madrid dropped-and savaged WeimarGermany afterWorld War I: "The economic thenretracted-hints he might declare a moratorium if cred­ reparations were very difficultfor the defeated; the result was itors do not halve his country's debt burden. Having obedi­ the appearance of Hitler ....Today, Latin America faces ently slashed Mexican living standards in half over the past similar situations, but theVersailles Plan is applied to us." five years in order to service foreign bankers' every wish, Alfonsin has reason to say this.Argentina's inflationrate even De la Madrid now finds himself compelled to fight the climbedover 600%annually in July. The countryis bankrupt banks. and $1 billion behind in its debt payments. It has ntt paid Why? Because he fears that if he does not immediately many of its debts for over 90 days, which means U.S. banks bring home some dramatic debt relief, he will be unable to have to put them in their "bad debt " piles. impose his hand-picked successor as President, Carlos Sali­ In a last-ditch effortto get bankers to postponedebt pay­ nas de Gortari, no matter how big a vote fraud theruling PRl ments, Alfonsin closed his country'sbanks for the firstthree partyconcocts. The real winner in Mexico's July 6 presiden­ days of August, and imposed an "economic shock " package tial elections, Cuauhtemoc Cardenas, has promised he will of more austerity. Planning Minister Mario Brodersohn an­ "suspend servicing the foreign debt under current terms." nounced that the government would cut off all funds for the Everywhere Cardenas goes, Mexicans demand that he keep large, half-finishedYacyreta hydroelectricproject. The state up his battle for debt moratorium. And, as London's Finan­ phone company and airline would be auctioned off, he said. cial Times admitted, "Cardenasholds all the political cards." While prices rose 25% in July and another 30% in the first De la Madrid spent his whole presidency ravaging Mex­ week of August, theminimum wage was frozen. Alfonsinis ico, to undo what his predecessor, Jose L6pez Portillo, had running into stiff resistance, and opposition Peronist candi­ done six years ago, on Aug. 20, 1982. That was the day date Carlos Menem is likely to beat Alfonsin's social demo­ L6pez Portillo kicked off the "debt crisis " by declaring a cratic partyin the 1989 elections. moratorium and demanding that the world economy be re­ Governor Menem explained patiePtly to George Shultz formedto permithis nation to continue to grow and develop. Aug. 3, that Argentina must have a five-year rest period "in But L6pez Portillo and the otherswho triedin the past to fight which it will not be subjected to the bloodletting that the the banks alone (Peru's President Alan Garcia in 1985, or payment of debt service signifies-aperiod in which to per­ Brazil's Finance Minister Dilson Funaro in 1987) did not mit growth in production." Shultz said no, instead demand­ succeed. ing "sound macro-economic policies and long-termstructural Mexico paid $8. 1 billion in interest, $4.7 billion princi­ reform." That means Argentina must shut down its industry pal, on its debt in 1987. In 1988, its debt service due increases andallow Bunge & Bornand the oth� big grain cartel com­ to $16. 1 billion, confidentialstudies by theFinance and Pub­ panies to ruin its rich agriculture. lic Credit Secretariat calculate. AlthoughMexico's $103 bil­ lion debt is no bigger than it was last year, higher dollar Moscow and Washington against debtors interest rates have raised this year's interest bill to $9.4 bil­ Mikhail Gorbachovseems to have promised Ronald Rea­ lion. gan that Moscow will help Washington discourage debtors from joining together to force a new, growth-oriented eco­ Banks up against the wall nomic order. "Unpredictable" actions on the debt or politics The less stupid bankers realize they must give De la areundesirable in Thero-America, announced Viktor Volski, Madrid and others big debt relief, or see political power head of the Soviet Institute on Latin America,in an interview suddenly shiftinto thehands of leaders who areready to unite published in Argentina July 27. Volski centered his attack on to force a new international economic order. The author of the Peronists: "Extremes are no longer wanted. . . . In the Bolivia's shock austerity, Harvard's Jeffrey Sachs, says, U.S., it is often thought that Peronists are unpredictable. "We're going to have to worry about politics more than in Here, we have thesame analysis." the past. Anyone watching Latin America can see the region Afterrejecting any moratoria or "unilateral action " on the going sour." debt, Volski specified that the debt'crisis is "a global, not The major U.S. banks would go bankrupt, however, if only a Third World problem." Therefore, as "Gorbachov told they cut Ibero-American debt service to sane levels. They Reagan at the summit . . . we must consider organizing an have addicted themselves to looting theThird World, to make internationalconference" on thematter.

EIR August 19, 1988 Economics 9 Currency Rates

The dollar in deutschemarks New York lale afternoon fixing Food crisis was 1.90 top

"'- � ,.r--.J' � 1.80 , at Moscow .r Central 1.70 by Luba George

1.60

1.50 A Soviet agriculture official tried Aug. 3 to encourage a 6121 6128 7/5 7/12 7/19 7/26 8/2 8/9 widespread belief, that the U.S.S.R. was headed for a good harvest, without drought-related losses such as were suffered The dollar in yen elsewhere in the world. Aleksandr Zholobov, a collegium New York late afternoon fixing member of the Soviet State Committee for the Agro-Indus­ trial Complex (Gosagroprom) told the official news agency 150 TASS, "Despite all weather deviations, there was no disaster anywhere." 148 Perhaps Zholobov was trying to create a smoke screen - .-. 130 � over the increasingly desperate Soviet and Eastern European -" demand for food imports. Whatever his motive, the activity 120 of the Soviet leadership and the on-the-scene harvest reports in the Soviet press tell a very different story. 110 On July 29, the Soviet Communist Party held a Central 6121 7112 7/19 7/26 8/2 8/9 6128 7/5 Committee plenum, to deal with the economic crisis. The top fo od The British pound in dollars item on the agenda was the Soviet crisis. Halfof Gen­ New York late aftemoon fixing eral Secretary Mikhail Gorbachov's keynote speech con­ cernedthe need to overcome the continuing "acute shortages"

1.90 of food and consumer goods and "difficulties in agriculture" afflicting the Soviet Union. This was dramatically conveyed 1.80 by the Soviet media. After singling out shortages in "meat and fresh fruits," at one point in his speech, Gorbachov 1.70 ./'.�.-. " - shouted, "Even in Moscow, wheregenerally almost anything "V can be purchased-queues of people, everywhere!" Accord­ 1.60 ing to Radio Moscow on July 30, the plenum adopted "mea­ sures,"related solely to food,but these werenot made public. 1.50 Regional agriculture reports, compiled from the Soviet 6/21 6128 7/5 7/12 7/19 7/26 8/2 8/9 press, indicate that even where there was a potentially good The dollar in Swiss francs yield per acre this year, huge problems with weather, ma­ New York lale afternoon fixing chinery, and infrastructurewould make it impossible to bring in. 1.60 In Voronezh Oblast, or region, on the Don, for instance, - "" "'" Izvestia reported that "the harvest promised to be excellent, ... � 1- 1.50 � r\ � � but continuous rains and winds have flattened 200,000 hec­ � tares of grain . . . and in eastern regions dry winds have 1.40 parched the crops." In Lipetsk (south of Moscow) and Tam­ bov(east of Moscow) Oblasts, Izvestiaadded, crops werehit 1.30 with "continuous rains and winds." 1.20 During the month of July, extensive partsof the U.S.S.R. 6121 6128 7/5 7/12 7/19 7/26 8/2 819 were hit with drought and heat spells, while other areas were devastated with torrential rains, causing damage to winter

10 Economics EIR August 19, 198� Bad weather compounds food problem In the Ukraine, long counted on as the "breadbasket" of the Russian empire, storms were described as "unprecedent­ ed " by Radio Kiev on July 27. They destroyed crops and caused heavy damage to village dwellings and industrial in­ stallations in 13 districts of the Poltava Region, the area priority between Kharkov and Dnepropetrov�k. Even before the· storms,the grain-producingarea of PoIta va, Sumy andKhar­ Committee plenum kov Oblasts (northeasternareas of the Ukraine) were hit with heavy rains. "On more than half the fieldsthe heavy earshave been flattened against the ground. On the average at least 3 quintals of grain per hectare is being lost " reported Izvestia on July 22. grain crops which were fully ripeand ready to be harvested. Also in theUkraine, weather difficulties were compound­ Thevery hot and dry weather patternswere reported to have ed by disastrous breakdowns in deliveries of fuel for farm predominated in the agricultural zone of West Siberia, par­ vehicles.Izvestia reported July 21 from Odessa Oblast, that ticularly in Tyumen and Omsk Oblasts, and also in the adja­ "at the very height of the harvest, when every day and hour cent northern half of Kazakhstan. The Soviet Far East was is precious, fuel, particularly diesel fuel, is running out." hit withtorrential rains, as was the Kuban Delta bread basket Diesel fuel also failed to arrive from suppliers in central north of the Caucasus along the Black Sea, damaging much Russia, the paper said, for agricultural customers in the of its winter grain crop. southern Russian grain-growing regions of Stavropol Krai A field worker's eyewitness account of the Kuban disas­ and theKuban. terwas given to the Russian Republic partynewspaper, Sov­ Shortly before the Moscow plenum, Radio Kiev reported etskayaRossiya: "This was the firsttime in eight years' work that "severe food shortages " in Kharkov, the Ukraine's sec­ that I have seen such raging elements.... In some 10 min­ ond largest city, were discussed at the regular session of the utes . . . the wheat field had been mowed clean " by the rain Presidium of the Ukrainian Supreme Soviet, adding that"sharp and hail. "And how many such thunderstorms passed over criticisms " were launched at Kharkov's city administrators the Kuban in June and July! Some 330,000 hectares of crops "for serious neglect and deficienciesin providing city dwell­ ended up under water, and crops perished on 100,000 hec- ers with foodstuffsand basic necessities." tares." News reaching the West indicates thatcertain partsof the The Russian daily added that farmsin Kurganinsky, Din­ Ukraine-with a population of ONer 50 million-are sky, Labinsky, and Mostovsky districts, and the Adyge Au­ undergoing some of the worst food and water shortagesseen tonomous Oblast suffered in particular. An early August since the war days. Shortages of baby food are so severe in issue of SelskayaZhizhn related that Soviet farmersare faced some places that state authorities have been accused of "crim­ with "a race against time " to bring in the early harvest and inal negligence." Reports theRadyanska Ukraina of July 7, salvagethe crops. "Annual supply of sterilized milk for the Republic's popula­ During August, Moscow is the hottestcity in Europe with tion, calculated on the basis of one child of up to two years temperatures higher than Athens and Rome and with a hu­ of age is at 1.6 kilogram, kefir [a fennented dairy drink] at midity of 90% . As one West German correspondent put.it, 40 grams, and fruit juices at 440 grams. Yearly, thatis ! !!" "Moscow is turning into a boiling pot. Weather patterns are Growing shortages in food and basic necessities arecaus­ erraticthroughout .. " In Leningrad, a tempest has caused such ing panic in the Soviet population.The weekly Moscow News rains thatall traffic in many partsof the city was halted beause reported on "panic in Novosibirsk " and "hoarding of food." of floods.Even in Siberia, in Vekboyansk, generally the People of this Siberian city are practically buying up every­ coolest area in the summer, the temperature is up to 37°C thing in sight, including such basic necessities as butter, (98.6"F).The very hot and humid weather has also caused soap, salt, etc. plagues of insects in many places. And when food is available-city centers like Moscow, Soviet weather expert Mikhail Budyko, predicted 40°C Leningrad, Kiev relatively have more goods available than (l04"F) for the Moscow areain August. theprovinces-fewer and fewer people can afford to buy it. Meanwhile the latest reports note that all across Siberia, In a recent issue of Argumenti i Faktj. a comparison of food there are raging forest fires.One of thecenters of these fires prices in Moscow with European cities was made showing is the Taiga at Khabarovsk on the Amur involving 103,000 that the price of meat in Moscow was 40% higher than in· hectares.The city of Khabarovskis buried under a thick cloud New York; lettuce 50% higher . than in New York, Paris, of smoke. Whereas in the east of the Baikal, there are huge Montreal; and cars cost 400% more than Japan and 200% floods, which have already buried 75 ,000 hectaresof land. thanNew York.

EIR August 19, 1988 Economics 11 Agriculture by Marcia Meny

USDA downpJays drought damage bushels. The Chicago-based forecast­ The coverup continues, as the Agriculture Department keeps er, Conrad Leslie, who bases his re­ ports on 2,500 grain elevator man­ selling dwindling grain stocks to the Russians. agers, forecast on Aug. 1 that com losses would be 39 %, yielding a com harvest of 4.28 billion bushels, but one week later, he revised that down­ In its annual harvest projection re­ Additionally, the USDA projected wardto 4 billion, "and still declining. " port, released Aug. 11, the U.S. De­ anall-time high of 60.6billion pounds The same pattern of discrepancy partment of Agriculture had no choice of red meat and poultry, because of exists between the USDA figures and but to increaseits estimates of the loss­ the liquidation of herds and flocksdue EIR and · trade estimates for soy- ' es that will result from the current to the high costs of feed, heat stress, beans-the other key animal feed be­ droughtdevastating U.S. fannland, as water shortages, and drought-based sides com-and other major crops. compared withits July 12 estimates of cost increases. The USDA did not This makes clear that the USDA is crop losses, which were ludicrously commenton thefact that killing of the not merely incompetent; they are lying. low. breeding inventory will cause drastic Their estimates rationalize shipments The July 12 report was a special meat shortfalls in years to come. of grainto the Soviets andother points­ drought projection, in which, for ex­ Despite all this, USDA officials of-preference of the grain cartel com­ ample, national com losses were pre­ have been quick to maintain that no panies. Alreadythis crop year, the So­ dicted to be only 26% below last year, significant food shortages will occur, viets have purchased over 12 million despite the losses of over 50% expect­ and only minor food price rises will tons of grain and soybean products ed in the big cornbelt states-Iowa, take place. At a USDA briefing Aug. from the United States-most of it at illinois, Indiana. In its Aug. 11 report, 11, Ewen Wilson, assistant secretary government-subsidized discounts­ the USDA increased the com losses of agriculture for economics, told re­ and continue to make rush-delivery estimate to 37 %, and loss estimates porters, "Because of large preseason purchases from other Westernexport­ for other major crops were similarly stocks, total supplies are enough in ing nations. increased. most cases to assurean adequate food The USDA's Wilson, in a letter to However, even the new projec­ supply at home, satisfy foreign cus­ the Washington Post on Aug. 12, min­ tions underestimate the harvest losses tomers, and meet our food aid com­ imized the danger of low levels of thatcan be expected this year, as farm­ mitments. " He only moderated his re­ world food stocks, by referring to the ers andeven many commodities trad­ assurances by saying that if drought drought in North America and China, ers will tell you. What the USDA crop recurs in 1989, then the result would then saying, "But agriculture produc­ report is intended to do, is to provide be "catastrophic. " tion in most othercountries is up. Com the rationale for continuing the politi­ However, even the USDA's own production in the rest of the world is cally motivated policy of Washing­ meteorologist, Norton Strommen, said record large; the same is true for soy­ ton, D.C. and the international grain on Aug. 11, "The drought is 1988 is beans. Wheat production and cotton trade, to supply millions of tons of not over. We see no basic retreatfrom production are the second highest scarcegrain stocks to the Soviet Union, the hot, dry weather. " All Strommen ever. " to ignore the depletion of food stocks could offer as hopeful is the statistical His main point in the letter was to in the West, and the spread of starva­ pattern that droughts do not usually bemoan the fact that the drought may tion worldwide. follow each other "back-to-back " in cause some political circles to go soft The USDA predicted that U.S. the growing seasons. However, con­ on farmers, and continue farm income grains overall will be down 31 % from tinuing the hot, dry weather this sum­ supports here and abroad. "The incen­ 1987. The decreases for the major mer willrob theNorth Americanwheat tive for sweeping internationalreform crops, as comparedwith the 1987 har­ belt of needed soil moisture for suc­ [elimination of farm supports ] may vest, were: Com, down 37 %; soy­ cessful planting of the winter wheat well have eroded because of the beans, down 23%; durum wheat (for crop this fall. drought, andpredictions of globalfood pasta ), down 41 %; spring wheat (for TheJuly EIR forecasts for harvest scarcity could strengthen the argu­ pastry ), down 53%; oats, down 53%; losses put the drop in com at at least ment of those who would preserve barley, down 53%. 50%, giving a harvest of 3.37 billion subsidies. This is a pity. "

12 Economics EIR August 19, 1988 Mrica Report by MaryLalevee

'Apocalypse' in Sudan? between the two rivers, where cotton, The country which could have been Afr ica's "breadbasket, " Sudan's main export commodity, is produced. becomes an inferno due to IMF and World Bank policies. In the 1960s and 1970s, other ma­ jor irrigation schemes were begun, to Details of the devastation caused by of theNile has risen to a point where extend the area of arable land. The two days of torrential rain in Sudan the two dams on the Blue Nile will most important was the Jonglei canal during the weekend of Aug. 6-7 are have to be opened, sending yet more project, a 17 5-mile canal which would now beginning to emerge. Phone and water down into Khartoum. have bypassed part of the Nile that telex lines to the capital Khartoum had At the beginning of August, Su­ winds through the Sudd, where huge been cut, and electricity supplies in­ dan had appealed for international aid quantities of water evaporate. terrupted. to fightthe 30 swarmsof locusts which The Jonglei canal was called the One and a half million people are are ravaging crops: They are consum­ "p roject of the century, " and has been reported to have been made homeless ing 300,000 tons of food per day.The under study since 1904.Up to 6 billion by floods caused by the overflow of torrential rain will encourage their cubic metersof waterper annum would the two Niles, the White Nile and the proliferation. have been provided by the scheme, as Blue Nile, which meet at Khartoum. Are these "natural disasters " which well as reclamationof 3.7 millionacres There is no drinking water in the from time to time inevitably afflict of land. capital, no food supplies, theelectric­ long-suffering nations? Far from it. A road alongside the canal would ity supply is still only 15% of normal, While the rain which fell was excep­ have reduced the distance between and roads are still awash. The plight tionally heavy, 9 inches in 15 hours­ Juba, the largest city of thesouth, and of the 1 million refugees camped on twice as much as in any whole year the north, and would have helped the outskirts of the city, and totally for 30 years-the devastation caused bridge the gap between the two parts dependent on food aid, can only be could have been much reduced by ef­ of the country (the "A rab " north, and guessed at-their camps are now in­ ficient water management schemes, the"A frican " south ). naccessible. and by moderninfrastructure. However, the,building of the can­ No one knows how many people The fact is that Sudan-a country al, and all other major infrastructure have died, although one foreign aid thesize of Western Europe,with only projects have been abandoned. worker reported that 30 Sudanese 24 million inhabitants-has been the In 1978, Sudan went to the Inter­ working for the aid organizations had victim of the malthusian policy of in­ national Monetary Fund (IMP) for been killed, giving an indication of a ternational financial institutions and help, due toeconomic problemscaused very high death toll. There is an im­ organizations. by falling exports of cotton.One of mediate threat of epidemics of chol­ Only 20 years ago, there were ex­ the conditions for International Mon­ era, typhoid,dysentery, and hepatitis. citing plansto make Sudan the"b read­ etary Fund help was-stop all large­ The Sudanese ambassador in Ken­ basket of the Arab world, " due to its scale projects. The IMP in particular ya described the floods as "o ne of the tremendous agriculturalpotential. Su­ ordered Sudan to forget "d iversifica­ most terrible disasters ever to affect dan has 40% of the potentially arable tion, " i.e., production of food, and our country, " and called for urgent in­ land in theArab world. concentrate on increasing cotton pro­ ternationalaid, including helicopters, Projects were considered to dou­ duction. to transportemergency aid to areascut ble grain production, raise meat out­ At the same time, the World Wild­ off by the floods. put by 140%, and increase sugar pro­ life Fund and the German organiza­ In eastern Sudan,there arereports duction to provide a large proportion tion called the Society for Endangered of similar devastation in the towns of of the imported food requirements of Peoples, violently criticized the plans Kassala, Gedaref, where there are the Middle East. What happened to for the Jonglei canal, claiming that the 700,000 Ethiopian refugees, and thoseplans? swamp it would dry out was ecologi­ Atara. But due to the breakdown in Most cultivation is concentratedin cally important! communication, the extent of damage the area between the White and Blue In 1983, rebels in the south at­ is not yet clear. Niles. The greatest irrigation project tacked the canal, and all work was Worse is still to come: The level in the world is the Gezira ("Island ") stopped in December 1983.

EUR August 19, 1988 Economics 13 Business Briefs

Trade ently appearing in northernEthiopia. These "The initiative of the Director-General swarms will be bigger, stronger, and more of WHO, launched at the Fourth Meeting of New Soviet commercial mobile, because they are more gregarious. Participating Parties for the Prevention and Moving toward the West, these swarms will Control of AIDS in November 1987 and ties with Peru aggregate with local swarms and invade the aimed at a closer association of the World Maghreb in several months, without leaving Bank with the global strategy on AIDS , has The Soviet commercial attache in Lima, the Sahel area. beenwelcomed by the Presidentof the World Andrei Drimitiev, met with Peruvian Presi­ "Any demobilization would have the Bank, and discussions are continuing." dent Alan Garcia on Aug. 7to discuss var­ most severe consequences" in the near fu­ ious trade deals, including the possibility ture,"far darker than the recent period .... thatthe U.S.S.R. would sell or rentairliners The word 'apocalypse' could very well be Corporate Strategy to Peru'snational airline, Aeroperu. used in a few months if nothing extraordi­ Soviet Civil Aviation Minister Alex­ nary is done in the fight"against this plague, Italian raider targets anderVolkov announced that the Peruvians it concludes. couldpay for such airplanes simply by pro­ Spanish health company viding servicesfor Soviet Aeroflot planes at the Lima airport. Disease Carlo De Benedetti, the Olivetti magnate The Soviet fishing minister will lead a who made big news at the beginning of the delegationwhich is to arrive in Peruon Aug. Official AIDS cases year with his attempt to take over the Bel­ 19 to straighten out the controversy which gian raw materials giant, Societe Generale brokeout over Soviet fishing contracts with rise 8 % in a month de Belgique, is now seeking to take over the Peru. A scandal erupted when it was re­ large Spanish health carefirm Sanitas. vealed that the Russians have not paid any The worldhas experienced an 8% increase DeBenedetti 's financialgroup, COFlR, taxes on their catch in Peruvian waters. in the numberof people sickwith AIDSin a has moved to buy up 40%of Spain's Sanitas

single month, according to the figures re­ firm . The move came so unexpectedly that Agriculture leased by World Health Organization offi­ Sanitas's director, Marcial G6mez Se­ cials in Geneva Aug. 5-and this only in­ queira, was forced to interrupthis vacation, French group warns cludes the cases being reportedto , and being and rush back to Madrid to try to head off acknowledged by, the WHO, whose defi­ the raid. of locust apocalypse nition of AIDS is notoriously restrictive in Sanitas has 1 million clients; its hospi­ order to minimize the appearance of the dis­ tals, locatedin every province of Spain, are "We have never beenso close to the worst. " ease's spread. known for their modem facilities for treat­ That isassessment the ofPRIF AS , the French Meanwhile, the WHO is collaborating ment of cardiology and respiratory illness­ organization that specializes in fighting with the World Bank in studies of the eco­ es. It also runsone of the most sophisticated against locusts, in its July newsletter on the nomic impact of AIDS in the developing clinics in Spain, La Zarzuela. current locustplague in Africa. sector, and on the demographic impact of "Several millions of hectaresin some 15 AIDS. WHO's "Progress Report No. 3" nations ofAfrica" are stillinfested, PRIF AS reads, "WHO and World Bank are collabo­ Health Care reports, and things aregetting worse: "The rating in studies of the economic impact of hatchingof desertlocusts' eggs in Mauritan­ AIDS and in measures to improveplanning Hospitals shutting ia, Mali, Niger, and Chad" will spread from for the expected caseload. The initial phase the West to the East of Africa in July and of the development of a model for estimat­ down across the U.S. August. ing the directtreatment -related costs and the PRIFAS explains that the efforts de­ indirect costs from the years of social and Nearlyhalf ofthe United States's 6,000hos­ ployed up to now delayed the process of . economic productivity lost due to mv in­ pitals lost money treating Medicare pa­ locustinf estation, but did not stop it. On the fections and AIDS has been completed in tients, and many of the beleagueredsmaller contrary, the use of low-residue pesticides three Central African countries during the hospitals in rural areas are shutting down or on 5 million hectares has destroyed only first quarter of 1988. Issues adressed in­ in danger of shutting down, according to abouthalf of the locusts, and the morerecent clude: the projected effect of AIDS on the federal officials. "slowing down" of their spread is due only supplies of essential drugs, the possibility "Some of these hospitals cannot provide to seasonalfactors . that AIDS patients will displace other pa­ much better care than a first-aid station," "'Theworst scenario is presently the most tients, whose problemscould be cured using noted one bureaucrat. From this, he deduced probable," says the newsletter. All capabil­ available therapies, and the threat posed to that they should be closed. Any financial ities available to fight the locusts · could be a country's development prospects by the assistance for these institutions would pro­ overwhelmed very soon in the Sahel and years of productivity lost owing to AIDS vide an "inordinate windfall" to hospitals Eastern Africa by the locust swarms pres- and other clinical conditions due to mv . already enjoying profits, he argued.

14 Economics EIR August 19, 1988 Briefly

According to reports reaching EIR , arguedthat the problems oUght to be solved county hospitals in Texas areshutting down. before resortingto such a measure as astrike. • FARMERS in Minnesota fear a A source in the Quannah area of northwest "Until recently the only meaning of 'strike' wave of foreclosures, according to Texas reports the restructuring and closing we knew wasfrom over there where incom­ reportsreaching EIR . They have not­ of two hospitals. In the first case, a Tennes­ parable disputes exist between labor and ed the hiring of a number of lawyers see corporation acquired a county hospital capital.... In our country no such antag­ by the localoffice of theFederal Land and closed it, then reopened one floor, and onism exists, we are acountry of workers Bank. In some cases, farmers have leased the second floor to a drug rehabilita­ only. . . . What? Are we going to strike approached the Land Bank for re­ tion center. A second hospital in a nearby against ourselves?Who could think of such newed credit, citing losses in the cur­ county was shut down completely. County a thing?" In the same article, the strikes in rent drought, but have been turned residents now have to drive a minimum of Nagorno-Karabakh and Armenia formed a down flat. 20 miles ifthey require hospitalization. special focus for attack with Pravda saying that strikes created a "complete paralysis of • FIVEDIRECTORS of theBucks theeconomy" -something even "worsethan Banking County, Pennsylvania Housing De­ stagnation." velopment Corp. were fired one day after the County Commissioners re­ American S&L Trade War leased their report on the lack of af­ in big trouble fordable housing in the county Aug. Japan may file 6. Thereport showed that housing for families making $40,000 a year or AmericanSavings & Loan, the second-larg­ suit with GATT less had disappeared fromthe county est thriftin the United States, hasann ounced due to inflation in real estate prices. that in addition to its failure to meet federal Japan's international trade and industry regulatory standards for capital require­ minister, Hajime Tamura, stated on Aug. 5 by members ments since 1984, in June and July of this • RESIGNATIONS that Japan may file a suit with the General of the Lloyd's, as the London insur­ year it wasn't even able to meet federal li­ Agreement on Tariffsand Trade, asking the ance lIUI1ket called, may total 1,700 quidity requirements. is international trade tribunal to rule that the beforethe end of the year, according The Federal Home Loan Bank Board omnibustrade bill passed by theU. S. Senate to a forecast by the Corporation of requires thatthrifts all maintain an average Aug. 4 infringeson internationaltrade rules. Lloyd's, the market's central secre­ daily balance of liquid assets, cash or its Tamura pointed out that the provision tariat. The principal reason cited is equivalent, equal to 5% of savings deposits applying sanctions to Japan's Toshiba com­ and short-termloans. fear of big potential losses in U.S. pany for its sales of sensitive technology to liability insurance, and the dimin­ H Americanwere a small thrift, it would the Soviet Union violates Japanese sover­ ished taxadvantages of membership. havebeen closed years ago . The BankBoard eignty, on the grounds that CoCom princi­ Since only 1,100 new members are seems to be trying to make the population ples specify that each CoCom member na­ expected to join the Lloyd's, it will think it is dealing with the crisis in the na­ tion reserves the right to penalize business bethe firsttime membershiphas con­ tion's thriftindustry by quickly closing small corporationsof theircountries based on their tracted since the 1960s, when the S&Ls, while hoping the largeones that have own judgment. market was reeling from U.S. hurri­ failed, but are still open will take care of Prime Minister Noboru Takeshita also cane losses. themselves or betaken over. termed"problematic" the "Super30 1" clause that calls for transferring authority fromthe • TOSmwO DOKO, one of the SovietEconomy President to the trade representative to de­ leading business figures in Japan in cide on what measures to take against what the postwarperiod, died in Tokyo on Bus drivers strike the United Statesterms ''unfairforeign trade Aug. 4 at 91. Inthe 1950s, he rescued practices." the giant shipbuilding and engineer­ in the Ukraine Japanese brokers have reacted strongly ing group, Ishikawajima-Harima tothe measure that bars financial institutions Heavy Industries. In 1965, he be­ The government daily Pravda, reprinted in from countries with closedgovernment bond came head of Toshiba. In 1974, he the official Ukrainian daily Rodyanska markets from becoming primary dealers in became president of the Keidanren, Ukraina, carried a lengthy articlecondemn­ U.S. Treasury bonds. Some of the brokers the powerfulfederation of economic ing the strike by bus drivers in Chemovtsy. immediately suggested that the flow of cap­ associations, and led Japan through The strike had been called in protest over ital from Japan to theUnited States-which the firstoil crisis. In 1982, he headed the ne,w regulations linking wages to "pr0- is crucial in financing the huge U.S. budget a government advisory panel that led ductivity ," under which wages had been deficit-could decline sharply if the Japa­ toprivatization of NipponTelephone slashed. Pravda tactically "agreed" that the nese brokers are stripped of their primary and Telegraph and Japan AirLin es. demands of the drivers were legitimate but dealer status.

EIR August 19, 1988 Economics 15 �TIillScience & Technology

Razing of rain forests upsets world climate

The transnational corporations are burning the Amazon rainforest. Results: vast pollution, dramatic changes in water-vapor levels and temperatures , and drought. Rogelio Maduro reports.

This is the first in a series of EIRreports in preparation, As can be seen in Table 1, the satellite pictures revealed which will deal with various aspects of the present, aberrant that that approximately 4.4% of the land area of the Amazon weather patterns worldwide. What this first report should Basin was burned down last year; at the state level, the per­ make clear to the reader, is the nature of the fraud being centage of area burned in relation to the area of the state perpetrated by the coterie of malthusians who argue that the varied from 18.7% in Rondonia to 0. 1 % in Amazonas . drought is a by-product of industrial development. We are To get an idea of the enormous land area that went up in hearing a great deal about the supposed " greenhouse effect" smoke in Brazil last year, it is almost as large as West Ger­ lately, which, it is claimed, is caused by industrial emissions many , and largerthan most states of the United States, about mainly of carbon by-products. What is not mentioned is the equivalent in size to Virginiaand West Virginia put together. fa ct that an amount vastly greater than all the industrial The shaded areaof Map 1 corresponds to the Amazon Basin, pollution of the atmosphere by the United States, is released the only area of Brazil surveyed under the satellite study. by the wanton burning of the Brazilian rain fo rest. The full Bordering Brazil to the north are Guyana and Surinam. The consequences of the ongoing destruction of our rain fo rests total area of devastation is largerthan either of those nations. are as yet incalculable. The burnings in the Amazon Basin produced dense smoke clouds over areas of 1.5 million square kilometers . "The On August 24 , 1987 , the NOAA-9 meteorological satellite smoke from the fires is thick enough to close down large and flew its usual course over the Brazilian Amazon, a routine small airports for weeks, and it certainly increases the number overflight, except that thisday and for the next several weeks, of cases of respiratory illness in the area, but there are no its data was being monitored for the first time to detect large official statistics," says Dr. Setzer. burnings of biomass in the Amazon . The picture was rather Utilizing standardequations to calculate areas of damage frightening: 8,000 square kilometers (3 ,089 square miles) of due to nuclearexplosive s, it canbe estimated that at least 650 land were on fire from 6,800 separate fires , none less than a one-megaton hydrogen bombs, such as those carried in So­ square kilometer and several over 10 square kilometers in viet intermediate range ballistic missiles, would have been dimension. These were not accidental fires . They were set by required to wreaksimilar devastation to over 200,000 square man. kilometers of Amazon jungle. A one-megaton H-bomb will At the end of the satellite study, led by Brazilian scientist destroyeverything in a radius of approximately 10 kilometers Alberto W. Setzer of the Institute for Space Studies in Silo from the point of impact, depending on the topography and Paulo, it was conservatively estimated, based on the satellite altitude at which the bomb detonates. The main difference images and corroboratedby overflightand on-site inspection, between burning large areas of rain forest at once and a that over20 million hectares (200,000 square kilometers , or thermonuclear strike, is that an H-bomb would lift a some­ 77 ,220 square miles) of land were burned down in 1987 in what larger amount of debris higher up into the atmosphere , the Amazon Basin alone (see Map 1). Of this, at least 40% and of course, leave a large amount of radioactivity behind. corresponded to virgin forest. On-site observers remark that after a firestorm, the burnt

16 Science & Technology EIR August 19, 1988 MAP 1 Amazon Basin area covered by satellite study (Percent of area burned shown in parentheses)

COLOMBIA

Amazonas (0.1)

Shaded area represents the Amazon Basin. the area of Brazil that was under real time observation by the NOAA-9meteorological satellite. The percentages of landcover area of individual states observedunder fire last year by the satellite are in parentheses. For comparison. the total area of land burned in the Amazonas last year is larger than the total area of either Surinam or Guyana. just to the north of Brazil.

Amazon forest looks just like Hiroshima or Nagasaki. forests of the world, the picture is one ofecological holocaust The preceding facts have barely received notice in the whose global implications are to be dreaded . Table 2 sum­ press, despite the fact that one of the most severe droughts in marizes the results of the only systematic study done to date history has just devastated food production in the U. S. grain on global deforestation. Based on Landsat pictures, the data belt. Weather anomalies, from severe drought to flooding, indicates that the world's rain forests were being deforested have been multiplying throughout the world in the past few at a rate of 11.3 million hectares a year in 1981. That rate has years . increased exponentially. The NOAA-9 satellite observations What actual phenomenon in the biosphere has caused revealed that in Brazil, no less than 20 million hectares of these disturbances in the climate is a subject of great debate land were deforested last year, just in the Amazon, nearly in the scientific community . However, if one surveys the rain twice the total amount deforested in the entire world in 1981.

EIR August 19, 1988 Science & Technology 17 The scientific basis behind the "greenhouse theory" is TABLE 1 rather flimsy, but that is not what is important. What is Estimated areas burned in Brazil's important is what the proponents of the theory , the news Amazonian Basin, 1987 media, and supranational institutions are covering up: the massive, wholesale destruction of the world's rain forest; the Area burnt (km2) % of state area rapid increase of global desertification; and the outbreak of Rondonia 45,452 18.7 pandemic diseases and plagues throughout devastated areas Mato Grosso 78,71 8 8.9 of the underdeveloped sector. Largely as a result of this, and Goias 38,910 6.1 Acre 7,274 4.8 not any so-called "greenhouse effect," major anomalies in Maranhao 13,766 4.2 weather patterns such as this year's drought, are occurring Para 19,365 1.6 throughout the world, posing serious threats to the world's Amazonas 1,093 0.1 Total 204,608 4.4 food supplies and long-term survival of the human race as a whole. Supporters of the greenhouse theory, including many Source:Alberto Setzer, Relatorio de Atividadesdo Projeclo IBDF·INPE "SEQE"· members of the U.S. Congress, are marshaling forces to Arlo 1987 implement draconian measures throughout the worldthat will "save humanity from the greenhouse effect." This includes a Every year, about 6 million hectares of land are irretriev­ 50% cutback in the consumption of fo ssil fuels, extensive ably lost to desertification, and a further 21 million hectares measures to control population growth, severe restriction on are sodegraded that crop production becomes uneconomical. industrial activities, and ultimately, the creation of a one­ About 3,500 million hectares of land-an area the size of world fascist government that will control and "preserve" all North and South America combined-are affected by deser­ natural resources. tification, while the rural population affected by serious de­ sertification rose from 57 million people in 1977 to 135 mil­ An economic policy lion people in 1984. It is the policies of "appropriate technologies" and IMP and World Bank-dictated "conditionalities" that are directly The 'greenhouse' myth responsible for the present rates of deforestation and deser­ While this real catastrophe is staring at humanity, the tification. U.S. presidential candidate Lyndon LaRouche Western news media have been filled with scare stories about warned recently: the so-called "greenhouse effect ." The Earth is supposed to "It must be emphasized that the deforestation of the Am­ warm up several degrees, the polar icecaps melt and sub­ azon region was a direct result of OECD nations' Brazil merge a large portion of the Earth's cities , while other major policies of the 1960s and 1970s. Not only the notorious changes ocurrin local climates. The drought that has wiped Professor Milton Friedman, but also leading social-demo­ out a largeportion of this year's food production in the United cratic ideologues among Keynesian economists, such as the States has been blamed on the "greenhouse effect." late Professor Abba Lerner, proposed that forms of austerity modeled upon those of Germany's Hj almar Schacht, be im­ posed upon Brazil, as also upon Chile and other nations. In the case of Brazil, such policy-recommendations were dic­ TABLE 2 tated as international financiers' 'conditionalities ,' as an al­ Annual rates of deforestation (1980) ternative to Brazil's nuclear energy program, in particular, (thousand hectares) and to Brazil's big infrastructural projects program in gen­

Annual rates of deforestation eral . Tree formations "The use of 'biomass' for fuel, as a substitute for coal,

Region Closed Open All petroleum, major hydroelectricpro jects, and nuclear energy, was key to the process. In addition to the general waste of Tropical America (23 countries) 4,339 1,272 5,61 1 'biomass' as a substitute for fuel, agricultural projects in the Tropical Africa rain forest region were launched on a large scale-with the (37 countries) 1,331 2,345 3,676 foreseeable result of transforming land into ruined laterite . Tropical Asia (16 countries) 1,826 190 2,01 6 "The Brazil model merely exemplifies the more general Total result of combining the looting of primary resources, by (76 countries) 7,496 3,807 11,303 Lombard-style usury, by the added imposition of both 'con­ ditionalities,' and by so-called 'environmentalist' anti-tech­

Source: Jean Paul Lanley, "Tropical Forest Resources," U.N. Food and Ag­ nology measures, which has put most of our planet through riculture <;lrganization, Forestry Paper 30, Rome: FAO, 1982. a downward spiral of economic and ecological devolution."

18 Science & Technology EIR August 19, 1988 Enter the multinationals ture in the rain forest, the scheme failed miserably, leaving The rate of burning of the Amazon rain forest has in­ the Brazilian governmentwith all the debts and a huge patch creased dramatically since 1985, following the opening of of desert. penetration roads into previously virgin territory , especially The standard operating procedure in these vast tracts of in the states of Rondonia and Mato Grosso. Between 1966 land is for the transnational corporations, two of the most and 1975, 11.5 million hectares of forest were cleared, while guilty of which are Volkswagen and Atlantic Richfield Cor­ the total amount last year alone was 20 million hectares. poration (ARCO), to clear-fell the forest, sell the few trees Despite the common misconception that most of the burning worth the trouble of extracting, and bum the rest; then sow is done by peasants and Indians, during the 10 years up to grass and bring in cattle, despite the fact that the land has 1975, 60% of the clearance was done by highway developers proven able to sustain only about one head per 2.5 hectares (3,075,000 hectares) and cattle ranchers (3,685,27 1 hec­ on average, and that the average life of each ranch is a mere tares), and only 17 .6% by peasants. two to seven years before it has to be abandoned due to weed These ratios have shifted since 1975, to the point that growth, erosion, and loss of nutrients . today transnationalcorporations account for almost the entire ARCO, by the way, is headed by Robert O. Anderson, devastation. one of the chief funders of the world's "environmentalist" Transnational corporations and European noble families movement! or their "fondi ," such as the Thurn und Taxis and Matarazzo At the same time, most of Brazil's rich and productive families, bought most of the Amazon rain forest wholesale farmland, located largely in the south, is today underused, or in the 1970s and early 1980s, when the Brazilian government not cultivated at all, being held for investment by corpora­ sold plots larger than 2,000 hectares for $5 per hectare. The tions and absentee landlords. In Brazil, 1 % of the landholders price per hectare rose to $35 in the 1980s, as the Brazilian control 43% of all farmland, while 50% of the farmers own government started running out of land to sell. only 3% of the farmland. One of the few such transactions that came to public In the 1970s, the Brazilian government started an ambi­ attention was Daniel K. Ludwig's billion-dollar Jari scheme tious program to "settle" the Amazonia, both to quiet the near the mouth of the Amazon. Ludwig purchased 15,000 clamor for land reform, and to populate the areas that the square kilometers of land (an area larger than the state of transnationals wished to exploit. Land was given free to Connecticut), and then proceeded to fell and bum the rain settlers, and wave after wave of immigrants arrived, enticed forest in an area of 1,000 square kilometers in order to plant by hopes of a new life on their own property . The govern­ two different species of trees. As in all attempts at monocul- ment, however, did not provide any agricultural machinery, technologies, or infrastructure-noteven hospitals, schools, or the most basic services. The settlers were thus forced to use the most primitive slash-and-burntechniques to try to eke out a bare subsistence. Most failed because of the poor soil, and many ended up as laborers on the ranches that mush­ roomed up. Several hundred thousand of these colonists are now "trapped" in the Amazon, suffering some of the highest mortality rates in the world due to disease and malnutrition. They work on on the ranches as virtual slaves. Indonesian rain forests are being destroyed almost as rapidly as those in Brazil. Although no satellite study has been done of the Asian rain forest, it was estimated by Alan Grainger of Oxford University, that as of 1983, logging was cutting the rain forest at, a rate of over 800,000 hectares a year, while shifting cultivators following behind cut about 200,000 hectares of mostly previously logged and damaged or secondary forest. As in Brazil, transnationals, in this case Georgia Pacific and Weyerhaeuser, are responsible for most of the deforestation.

The rain forest and global climate The three most important tropicalecosystems inthe world, which provide the vast majority of water vapor transpired AReamagnate Robert a. Anderson: 'environmentalist' whose corporation has committed some of the greatest crimes against the fromlandmasses into the atmosphere, are located in the Am­ worldenvironment. azon, the delta of the Zaire (Congo) River, and Indonesia.

EIR August 19, 1988 Science & Technology 19 The greatest amount of global precipitation falls on these atmospheric carbon dioxide gas to form all kinds of sub­ tropical rain forests as can be seen in Map 2. Disastrously, stances. It is the largest terrestrial net producer of oxygen. It theseare the areas , especially the Amazonas and Indonesia, is alsothe greatest source of water vapor into the atmosphere, where the greatest amount of deforestation is occurring. which provides rain in other areas. As demonstrated in the Table 3 defines these areas and the forest types consid­ now nearly extinct rain forest of Africa, deforestation creates ered. Notice that Brazil posseses 30.68% of all the tropical a cycle of desertification, including a rise in temperatures as forest in the world; Peru, Colombia, Bolivia, and Venezuela the albedo effect starts to take place, a result of cutting the 16.5%; Indonesia by itself 9.78%; while the "deforestation green cover-and drought: Rain becomes scarcer when water belt" of Asia-Burma, Indonesia, and Papua New Guinea­ vapor is no longer being returned into the atmosphere. account for 15.36% of the world's tropical rain forest. In The complex workings of this biosphere and its relation summary, the table shows that a mere 10 countries on the to the atmosphere are largely unknown, but a recent joint planet possess 75.62% of the world's rain forest. study conducted by scientists from the United States and The tropical rain forest functions as a solar engine, ab­ Brazil has provided a wealth of discoveries that are still being sorbing more sunshine than any other living land cover, mod­ evaluated. The expedition, the Global Tropospheric Experi­ erating surface temperatures, and reducing heat reflection ment/Amazon Boundary Layer Experiment (GTE/ABLE), into the atmosphere. It uses this absorbed energy to combine was conducted above the Brazilian Amazon rain forest in

MAP 2 Annual world precipitation

....,. •• "'All "'1.... TU "OJ"TIOII � Und ... 10 inches N·,·"",I FrOIO 10 to 20 inches _ F.... 20 10 40 iothe. _ F_ 40 10 80 inth<. _ Ower 80 iot ....

Source:Clarence E. Koeppe. Weather and Climate.

Observe that the areas with the greatest amount of precipitation are the Amazon and Indonesia and surrounding areas. Water vapor is cleansed by the rainforest. including removal of CO2, and recycledinto the upper atmosphere together with a rich mixtureof chemicals. which are then transported to other regions of the world. These rainforests are the critical " solarengines" that are being most thoroughly destroyed.

20 Science & Technology EIR August 19, 1988 July and August 1985 and in April and May 1987. It com­ night in the forest. Thus, tropical forest ecosystems act as a bined, for the first time, local measurements at ground sta­ filter, removing ozone from the air through reactions of hy­ tions, regional measurements aboard aircraft, and global drocarbon gases emitted by vegetation and by ozone uptake measurements from the Space Shuttle and satellites, to study on soil and plant surfaces. the influence on the troposphere of the world's largest rain Large convective thunderstorms were observed to trans­ forest and its influence on chemistry and meteorology of the port ozone from above 5 kilometers to the lower atmosphere Earth's atmosphere . where ozone removal occurs . Thus, the rain forest ecosystem In a paper summarizing the results, mission scientist Rob­ removes ozone, a chemical poisonous ito human and animal ert C. Harris of NASA's Langley Research Center asserted life in the forest, while it pumps ozone and basic chemicals that the data obtained supported hypotheses that: in the formation of ozone, to the ozone layer. The destruction 1) Tropical rain forest environments are characterized by of the rain forest may therefore be one of the principal causes relatively intense sources of biogenic ally-produced gases and of the thinning of the ozone layer. aerosols. The ABLE-2 expedition also revealed that as air coming 2) The world's largest rain forest, in the Amazon basin, fromthe Atlantic Ocean flows over the Amazon to the Andes is a region of frequent atmospheric instability with intense Mountains and exchanges of gases and aerosols (particles) thunderstorm activity , resulting in a potential for rapid mix­ occur, a series of chemical reactions are set off which even­ ing of biogenic gases and aerosols at high altitudes, where tually impact -global air quality and the Earth's radiation they impact global tropospheric chemistry. budget. 3) The tropical troposphere is a region of intense photo­ Natural organic carbon makes up more than 80% of the chemical activity where sinks for certain biogenic trace gases aerosol mass. The chemical composition of aerosols changes (e.g., isoprene (CsHs» produce sources of gaseous products as inflowing ocean air transects the Amazon Basin, and fre­ (e.g. , carbon monoxide, CO) that may be significanttoglobal quent rainstorms remove sea salt and mix forest aerosols up budget. into the tropical atmosphere . Large convective thunder­ One of the most important discoveries was the role of storms typical of tropical regions can transport rain forest Amazonian forest soils and vegetation as sources of nitrous gases and aerosols to altitudes of greater than 6 kilometers, oxide NO and CsHs to the atmospheric mixed layer, and where they become integrated into the atmospheric circula­ consequently, the potential for photochemical production of tion. These aerosols play important roles as cloud conden­ 03 (ozone) during the oxidation of CsHs. sation nuclei, creating the conditions for rain to occur as The Amazon ecosystem removes ozone from the air in water vapor is transported to other areas of the world. the forest and the air immediately overlying the forest. Con­ Deforestation plays a critical role in destroying the cli­ centrations of ozone are typically 40 parts per billion (Ppb) mate of a region, throughredu ction of humidity and rates of in the upper atmosphere over the Amazon, decreasing to 20 plant evaporation and a change in the energy balance. In the ppb in the boundary layer; they go to undetectable levels at Amazon forest, it has been calculated that 25 .6% of precipi-

TABLE 3 The world's principal tropical forest countries by area (square kilometers)

Country National Undlaturbed Legal/managed Unproductive Total toreat ","world area toreat toreat toreat area total

Brazil 8,51 1 ,965 2,886,300 120,000 556,500 3;562,800 30.68 Indonesia 1,903,650 389, 150 346,600 400,000 1;1 35,750 9.78 Zaire 2,345,409 797,400 3,800 255,300 1,056,500 9.09 Peru 1,285,21 5 373,200 60,000 259,900 693,100 5.97 Colombia 1,138,91 4 386,000 9,000 69,000 464,000 3.99 India 3,166,828 48,850 334,730 76,860 460,440 3.96 Bolivia 1,098,580 177,600 120,900 141,600 440,100 3.79 Papua New Guinea 475,300 138,150 2,200 196,750 337,100 2.90 Venezuela 912,050 76,000 116,100 126,600 318,700 2.74 Burma 678,030 141 ,070 90,090 80,770 31 1 ,930 2.68 Cumulative total 5,41 3,720 1,203,420 2,1 63,280 &,780,420 75.82 And 63 other countries 1,270,430 720,350 838,550 21829,930 24.39 World total 6,684,150 1,923,770 3,001 ,830 11,610,350 100.00

Sources: Forest types and area from Tropical ResourcesAssessment Project, Rome: FAO, 1981 . Countryareas fromJohn Paxton,ad :, TheStatesm an's Yearbook, 1983-84, London: Macmillan, 1985.

EIR August 19, 1988 Science & Technology 21 tation is intercepted by the vegetation and returns to the atmosphere by direct evaporation, 45.5% is transpired by TABLE 4 plants, and 25.9% is drained through the surface run-off. Regional estimate of emissions produced Therefore, about 75% of the precipitation returns to the at­ by burning, 1987 mosphere in the form of water vapor through the action of (million metric tons) plants, indicating the importance of this type of vegetation cover for the components of the Earth's water budget. (The Burning Total U.S. Substance rain forest- pollutants 1986-- bestoverview of this subject is found in The Climatology and CO2 Hydrology of Amazonia by Brazilian scientist Eneas Salati, 518 CO 44.03 60.96 from which thesefigures have been taken.) POC (particulate organic 4.09 Approximately 6,430 billion tons ofwater vapor are gen­ Carbon) EC (elemental C) erated withinthe Amazon water basin as a whole through the 1.14 NOx 1.09 19.23 direct action of plants in interception, evaporation, and tran­ NH3 0.48 spiration. This is the same magnitude of water vapor as that SO 0.17 21 .23 K coming from the ocean. There are several hypotheses as to 0.17 TPM (total particulate matter 6.22 6.71 what happens to this water vapor, but no direct studies of this Q3 2.49 have beendone in the atmosphere. The best working hypoth­ CH4 4.66 CH3C1 esis is that the water vapor generated by the Amazon moves 0.01 2 toward the west, and is replaced by primary vapor generated inthe Atlantic ocean. The Andean Mountains forma natural ·Source:Alberto Setzer, Relatoriode Atividades do Projecto IBDF-INPE "sEQE"­ barrier 4,000 meters high and effectively prevent the exit of Ano 1987 "U.S. Environmental Protection Agency, National AirPollutant Estimates, 1940- water vapor to the Pacific Ocean. This is the reason that the 1986 westernside of the Andes on thePacific Coast is so dry, while the eastern slope of the Andes has enormous precipitation rates. The Andes Mountains funnel the water vaporboth to the large-scale studies have been done. Mr.Indra Kumar Sharma north and the south, depending on the latitude. Above the of India has written that, in India's Rajasthan region, the Equator, the rotation of the Earth would move the vapor unreliability of the rains has increased as a direct result of northward over the Guyana Plateau and the Colombian and deforestation, since the dry air currents rising off the hot Venezuelan llanos (plains), the Amazon water vapor ending ground dispel weak monsoonal fronts, whereas in contrast, up in the Caribbean Sea, where most of the storms and hur­ the warm, moist airrising from vegetated areaspromotes the ricanes that hit the East and Gulf coasts of the United States buildup of local thunderstorms so that areas of dense vege­ aregenerat ed. tation receive 40% more rain than neighboring deforested Below the Equator, the water vapor is driven south over areas. the central plateau of Brazil and the lowlands of Bolivia, It is also important to consider the effect of the variation Paraguay, Argentina, Uruguay, and Brazil. The finaldesti­ in the quantity of vapor condensing in the higher parts ofthe nation of the Amazon water vapor is Antarctica, whereit may atmosphere. During evaporation, solar energy is transformed also play a critical role in global climate. into latent heat which is released in the highest layers of the Deforestation drastically changes this water and energy atmosphere where the water vaporcondenses to form clouds. cycle. If there is less water available for evapotransportation, This energy is partially responsible for the circulation of the there will be a decrease in relative air-humidity, which will upper atmosphere. Partof this vapor is transferredto the polar alter the energy balance. The incident solar energy, instead regions, and upon condensation, releases energy; this is one of being used for waterevaporati on, will be used for heating form ofenergy transfer from equatorial to polar regions. the air. Dr. Alberto Setzer has also warned about the effects on In addition, the change in vegetation cover involves a global climate of the massive burning of the rain forest. The change in albedo-thepower of light reflectedon the surface huge cloud of smoke and gases produced by the burning is under consideration. Changes in albedo also involve changes carried southby the regularwind currents. This may be one inthe energy balance. Modificationsof small areas surround­ of the major contributing factors toward the thinning of the ed by forest should not influencethe energy and water balance ozone layer in the Antarctic. To West Germany's leading or regional climate as a whole, but when thousands of hec­ ozone expert, Professor Paul Crutzens, head of the Max tares are involved, drastic local climatic changes occur, as Planck Institute at Mainz, the connection is already clear. can be witnessed in India and Africa. "One of the main causes of ozone destructionis these enor­ Several studies have documented the role of deforestation mous fires, not just in Brazil, but in Africa, too." in increasing the temperatures and sharply reducing precipi­ There are correlations between the forest fires and ozone tation in local areasof Africa, Asia, and the Amazon, but no depletion from the evidence gathered so far. Twelve days

22 Science & Technology EIR August 19, 1988 after the peak burning detected by the NOAA-9 satellite, Aug. 24, 1987, according to doctors Rie and Stolarski writing in Scientific American, the internationally-backed airborne Antarctic ozone experiment recorded a dramatic fall in the The greenhouse theory ozone level. It dropped about 10% over an area of 2 million squaremiles. The greenhouse theory rests on two basic premises. First, according to studies done by the "guru" of the The pollution factor greenhouse theory , James Hansen of the Goddard In­ The emission of pollution from the burning of the rain stitute in New York, the average global surface air forestin Brazil is almost equal to the total airpollutant emis­ temperature was 0.67°C warmer in 1987 than in the sions in the United States in one year. According to calcula­ 1880s. Second, levels of carbon dioxide in the atmos­ tions made by Dr. Setzer (see Table 4), 6.22 million metric phere have risen from about 275 parts per million be­ tons of particulate matter were dumped into the atmosphere fore 1850 to 345 ppm in 1985, allegedly as a result of by the burning of the Amazon rain forest last year, while the industrialization. total particulate matter released by all industrial, human, and According to the theory, sunlight strikes the Earth non-human activity in the United States in 1986, according and infrared (heat) radiation is reflected back into the to the EPA, was 6.71 million metric tons. The total amount atmosphere where it is blocked by growing concentra­ of carbon monoxide released into the atmosphere in the United tions of carbon dioxide, methane, nitrous oxide, and - States in 1986 was 60.96 million metric tons, while that chlorofluorocarbons. This warmsthe troposhere, melt­ releasedby the burningof Amazonia was 44.03 million met­ ing the icecaps, and raising the levels of the ocean. ric tons. It would seem, as it did to all early explorers of the Amazon, that the soil must be very rich to grow such a lush forest. Yet, the truth is that tropical rain forests are found forest. The rain forest can reclaim this small plot of land thriving on the poorest soils on Earth.The tropicalrain forests rather quickly. When the areabecomes larger, however, the have developed an extremelycomplex ecosystem thatessen­ rainfo restcannot recover. tially captures all the nutrientsnecessary withoutrecourse to Thus, tensof millions of hectareso f Brazilian rain forest the soil. A forest in temperate climates, such as the United have now becomedesert ified. Full-blown deserts, with mov­ States or Europe, is differentiated "horizontally." One walks ing sanddunes and sandstorms, have emerged in many areas in, and first, there areshru bs, then small trees, then talltree s; of Brazil and other tropical countries where, barely 10 to 20 pine trees will dominate certain areas, while maple andoak years ago, there was lush tropical rain forest. trees will dominate other areas. In a rain forest, it is com­ Tropical forests are also beingdestroyed by the system­ pletely different. The differentiation is "vertical." There are atic harvesting of logs to make charcoal. Even in the case five canopies of trees, each with its own specializations. The wheretrees replantedare to replace those cut down, the same forest floor is very clean, with few leaves or rotting trunks, problem exists as with slash-and-burn agriculture. The orig­ such as those found in temperate climate forests. Every nu­ inal nutrients are taken away with the trees. Thus, the seed­ trientis recycled immediately in a rain forest, beforethey are lings seldom survive. Vast areas of tropical rain forest have washed away by the rain. If a leaf falls, insects, bacteria, and been cut down to make charcoal, especially in Africawhere fungi, which live in symbiotic relationship with the roots of fuelwood and charcoal represent between 60% and 90% of the trees, will digest them immediately, and return the min­ all the energy usedin most countries. erals and nutrientsnecessary for growth back to the canopy. Again, Brazil represents the most criminal case, where Inthe canopy itself, there are "epiphytes," plantsthat capture 5.34 million metric tons of charcoal were produced in 1986, all necessary nutrients and minerals from thesurrounding air. more than one-quarter of thetotal production of charcoal in There are two major reasons why the areas where rain the world. Under orders fromthe IMFIWorld Bank, Brazil is forests have been either cut or burntdown become desertified limitedin its importationof coal for steelmaking, in order to so rapidly. The firstis the very poorquality of the soils under preserve its foreign reserves to pay its foreign debt. Not the forest canopy. The second is the volume of rain that possessing significant coal reserves, Brazil utilizes the char­ falls-several feet a year. Once the forest cover is removed, coal to turn iron ore into pig iron, despite the fact that im­ severe erosion occurs , and whatever nutrients were above porting much higher quality anthracite coal from the United ground-such as the remains of burnt plants-or in the soil Stateswould becheaper and would employ tens of thousands itself, are leached and washed out in a short period of time. of miners in some of the most depressed areas of the United Under primitive slash-and-burn methods, a tribe of Indians States. orpeasants move into a spot, burn a small area, andcultivate In sum, millionsof hectaresof lush rain forest have been it for two years, three at the most, before all the nutrients cut down andturned into wastelands, to please the wishes of have been exhausted. Then, they have to move on to virgin international bankers.

EIR August 19, 1988 Science & Technology 23 ITillFeature

'I never claimed Dukakis had been cured'

by Lyndon H. LaRouche, Jr.

It began back in 1978, when Massachusetts Governor Michael Dukakis lost the battle for renomination to Edward King. According to the accounts circulating in Massachusetts journalistic and political circles at that time, Dukakis took the defeat very badly, and was reported to be in a protracted depression for some period of time following those events . Later, Dukakis appeared to recover his confidence. The person chieflyrespon­ sible for Dukakis's 1978 defeat , Boston Democratic Mayor Kevin White, was the victim of an attempted legal frame-up by Dukakis's Boston U.S. Justice Depart­ ment cronies. One of the dirtiest political operations seen in the state , was that conducted by Dukakis's campaign against Governor King himself. Dukakis blamed White and King for his 1978 defeat. He should have consulted the newspapers; by the time of his 1978 renomination fight, he had become one of the most unpopular political figures in the state . When he was ousted, the state breathed a sigh of relief, confident Michael Dukakis was out of electoral politics permanently . By the time his second term as governorrolled around, Dukakis' s policies had changed somewhat from those of his first term, but with no perceptible improve­ ment. Currently, a majority of Massachusetts' Republican legislators and many Democrats , too, is urging Dukakis to resign. He will probably go down in the history of the Commonwealth of Massachusetts as the most unpopular governor in 300years-since the Royal Governor Edmund Andros, who was virtually run out of Boston on a rail. The subject of Dukakis's 1978 depression is a featured topic within the two published biographies currently circulating . These biographies, both by reputable authors and publishing houses,l are the principal source of the documented evi­ dence on the subject. A notable feature of those biographical accounts is included quotations from members of the governor's family. Then came the 1988 Democratic primary campaign. At first, the front-runners were Chrysler's Lee Iacocca and 1984 veteran Sen. Gary Hart, with New York's Gov. Mario Cuomo and Georgia's Sen. Sam Nunn mentioned as probable nomi-

24 Feature EIR August 19, 1988 HOUSE ; • No. 3272 HOUSE . . No. 3756

B, Mr. Dubldo... 0/0 1 .. (by -'.poIIlIoo " _ L ...... Dy )11'. uuulr.i.• of )Jruukillw 'r,�· ro..'fJIlCo'I I. IlI"tlllUfI vi W.J11:lIft fl. lliirdfor _ ...."..J Iho...... ___ .... _ '�:lIIO" 10 rrl"t"] !l1\· I� ..· Imm:!":lll:; " .....r: : UIl... . �'<'L;I! WtH.,,,,,, __ Tho Jud ...... Cb. �ommonllJ.alrb of £l)assacbUlertl Io tb,Yur ODe TaOUDAd"IDC liUAd l"llCiaDd S-V.DIY.

Ax "\CT Ilt,U,Llse Tilt 1..\WS PIlO B1.1TJSe AlOlmON'. B. it ffl4d.d bV tM Smote eM H(1'U.Ic 0/ R'JW.,.tcanutrt '" AN' ACT REPCALING · THE LA". PVIf""IJrfO VHHA1"C7tiL .unt O""",al Cf1Urt o",.".bZ,d, Clfld bV tM ayeM";t., 01 1M '0'"'. .. LASCIVIOUS ACTI WITH "'MOTH" P&UOH. foUo,.,:

B. il .....I.d bv I'" /Jono/t """H_ 0/ R..-wI.... 1 SCCTION 1. Ch4ptCr 11::!of the General La"', is hereby O ..frGl ... C ,I ""'"bItd. """ bv I'" aulllori/r 0/ tAt•• _ :! alncncJccJ by in.cmil1, ar�t'r ft'ction l:!C the (ollo1\'inl He- I·U .... ' 3 tion :- 4 SceHol! IJD. Abortion 11I.3Ybe rcrtorm.cJ by any rhr1iCi&D 1 Section thirty-five of chapter two hundred and llvent.y-tWO S ""ho ha. fint obuillcd th� content or the (emale upon ..borD lhe General hereby repealed. 2 of 1.&... iI o l.3icJ aOcrtlon i, to br pcriorlm'u.

HOUSE . . No. 3482 HOUSE . • No. 3483 By Mr. Dl.lkAkii IIf Drookline (by f'tql*A.), r-tiUoa 01 Will•• It. BalId .. ",-tiDe to repe:ll lM taw prohibiu.. fom ieu... . n.Judiciary.

£Oc C:ommonlDnlta of ..... "u""'

Besides the issue of his mentalfitness, A" Ar:rIlI;PL\LIHO TRI LAW' PRORI.mHO fOIJrflCATlON. AM At:rt&P&4LIMQ 'I'll. LAW'P1JHr•• Uf Q .LAU'IDKT. B. it ,"od.d by the SlnGt. Gnd HOVN 01 R.",....tGti.,.. .. Dukakis's social policies have also caused B. il ....I.d bv I'" 8"",1. """ H.... .•/ R."._IaIi... .. GfM1'Gl Court G".mbt.d, Gnd bv tit. Gvthoritv 01 tM ICIMI, .. some to question his moralfitness fo r offi ce. Otnf1Gl C ...,I ....'"bltd •• n d btl I'" •• 11Iori/r 0/ I'" _ ... 1011_, -, Shown are some of the bills he introduced 1 I Section .ilhteen. of ehapter two hundrerl and llven&y-two 1 Section thirtY-liz of chapter two hundred IDd .... *1-'" 2 of &he General LaWI il hereby repe&led. as a Massachusetts legislator on behalf 2 01 lb.General 1.&.... " h..t.yropoa1ed.

'--______---' of pro-abortion activist Bill Baird.

nees, and Rhodes Scholar Sen. Bill Bradley as a likely vice­ gram of the Democratic leadership even through the Super presidential candidate. Mike Dukakis's name was near the Tuesday elections. Then came the meetings between Jesse bottomof the list of the not-so-magnificentSeven , popularly Jackson and the Democratic liberal establishment; Demo­ dubbed "the Seven Dwarfs ." cratic National Committee chainnan Paul Kirk came out to The first to drop out was front-running Iacocca, who announce that the "brokered" convention was being dropped, presented two grounds for the withdrawal of his candidacy: and that Dukakis would be rammed through at Atlanta. 1) That the President inaugurated in January 1989 would face an unbelievably severe economic crisis, and 2) that he, Ia­ The fight for a sane Atlanta convention cocca, had no solutions to offer for this crisis. Not long after At the end of that convention, according to a published that, Mario Cuomo withdrew his candidacy. Soon after that, interview,2 Paul Kirk bragged of the way in which the con­ Sam Nunn pulled back, stating that his work in the Senate vention had been orchestrated to theeff ect of degrading elect­ was too important to sacrifice for a presidential campaign. ed and also often terrorized delegates into the status of the Later, Bill Bradley discouraged those who sought to place mere audience for a TV special. However, during that con­ his name in nomination. Sources close to Bradley offered the vention my friends and I made several efforts to open up the same explanation as Iacocca had earlier: The 1989-92 V.S. proceedings for serious deliberation. Among these efforts President was going to become the most unpopular V. S . was a document distributed among all of the delegates by the President of the century , so that Bradley were better advised National Democratic Policy Committee (NDPC). Since that to wait for the 1992 campaign. document has become such an internationallycelebrated part Gary Hart was eliminated by a special operation. It was of more recent events , I am obliged to clarify my own role in the dirty-tricksoperations of Dukakis 's campaign which sank connection with its issuance. the candidacy of Sen. Joe Biden. The powerful machine The firstdraft of the document was presented to me at my which owned Dukakis riggedthe New Hampshire primary to hotel room on the evening of the first day of the convention. establish Dukakis as a front-runner. To assist Dukakis' s New It was the work-product of the NDPC staff. Although audit Hampshire campaign, cronies of Dukakis arranged to have of the document proved all of its content to be solidly based me indicted on false charges at the end of June 1987, and on evidence published by reputable sources, I declined to thusarranged to have me tied up under this cloud, as thesame adopt it as the basis for a statement by my campaign organi­ Dukakis's machine had ridden Boston Mayor Kevin White zation. I also requested, since the document would be blamed and GovernorKing out of politics earlier. upon me whether I issued it or not, that the NDPC make Still, Dukakis did not have the nomination in sight: A certain editorial improvements in presenting the evidence. I "brokered" Atlanta convention was still the accepted pro- also suggested that the document should not be issued until

EIR August 19, 1988 Feature 25 all efforts to have an open convention had been exhausted. of vindictive savagery by Dukakis's circles, including the They agreed; I was content with the final edition of the doc­ corrupt use of federal authority to effect false prosecution of ument; by then, the terror-tactics against delegates support­ those who cross Dukakis, as in the Kevin White case, and ing my nomination eliminated all possibility of democratic the pattern of related political dirty tricks by the Dukakis deliberations among the delegates. So the document was machine in the King case and during the course of the recent released to all delegates during the time-frame of Jesse Jack­ primary campaign. son's address to the convention. The man has the makings of a new Nero or Caligula, a The point of that document, as it states plainly enough, man already compared by some to the Biblical Nebuchad­ was to forewarnthe convention that there were certain state­ nezzar. I am obliged to emphasize again, contrary to inter­ ments by members of Dukakis's family circle, published in nationally featured news-media accounts; I have never claimed biographies by reputable authors , which must be cleared up that Dukakis was cured of a mental-health disorder. before deciding to nominate the Massachusetts governor as the 1988 presidential candidate . The SDI issue The document forewarned: Unless the questions posed So far, the international press has ignored the context in by the two published Dukakis biographies were cleared up, which the flap about Dukakis's mental health arose. The we might be certain that George Bush's campaign would context is the Reagan-Bush bloc of unified support for the make a major issue of these points . Paul Kirk proved as SDI. There is the Bush statement of Aug. 2 to the Mid­ foolish in ignoring the issues of the NDPC report as he had America Committee in Chicago. There is the President's been arrogant. On Tuesday, Aug. 2, the first public blow pressconference in which the witty reference to the "invalid" from the Republicans came in the form of an expose pub­ occurred. The principal topic of that press conference was lished by the Detroit Daily News. Dukakis continued to the President's veto of a defense bill featuring an included stonewall the issue, although his wife had humiliated herself effort to kill the SDI. This SOl issue is key to the way in with a public confession of her former drug problems 13 which the liberal news-media launched its international, front­ months earlier . It was Dukakis' s stubborn efforts at coverup page attack upon me over the weekend following. which prompted the exchange at President Reagan's press Go back a few years . At the close of 1983, a political "hit conference the following day . list" was drawn up, targeting personalities viewed as key in Instantly, Dukakis' s mental health became front-page shaping the adoption of the SOl policy. At the top of that list news around the world. was National Security Adviser Judge William Clark; there were numerous others , including the name of the Lyndon Dukakis changes the subject LaRouche who had campaigned internationally for this pol­ On Friday, Dukakis's international backers , the interna­ icy during 1982, as well as consulting with the National tional circles of Lloyd Cutler et al . , struckback. Newspapers Security Council on this proposedpolicy . One may recall the in Britain, France, Germany, and Italy carried the liberals' wild orgy, led visibly by NBC-TV, and energetically sup­ defense of Dukakis as a front-page story . Dukakis's defend­ ported by the Soviet leading press, to have my connections ers offered two lines of defense. to the Reagan administration exposed and terminated. The New York Times spearheaded a campaign proposing In Moscow's press, my rple in the SOl was the issue. that persons suffering earlier nervous breakdowns had an Some among the drug-lobbyists tied to Roy Godson's crew, oppressed minority's right to become U.S. President. More involved in the 1982-84 targeting of me , are documented as widely, Dukakis' s supporters ducked the issue by changing social democrats regularly performing certain services for the subject. Most of the internationalcoverage over the week­ the Soviet government. Others , presumably including NBC­ end accused me of having stated that Dukakis had received TV News, are perhaps not Soviet agents in any customary successful psychiatric treatment for depression in 1978, sense, but are simply influenced by those liberal establish­ something which I had never claimed to have occurred. ment circles pushing for a "New Yalta" arrangement with The documented evidence that Dukakis had a 1978 de­ Moscow. To the latter, any evidence of my association with pressive episode has been widely circulated by reputable the U.S. government is an impediment to Moscow's trust in authors and publishers without refutation, including admis­ the good faith of the United States: To them, I must be sions quoted from members of Dukakis's own family and eliminated as proof to Moscow of good U.S. intentions. immediate circles. The arrogance with which Dukakis re­ Indeed, the Soviet press has made this point repeatedly and fused to address legitimate concerns respecting his mental­ violently since the beginning of 1984 up to the most recent health history is itself just cause for grave concern on this date. account: The correlated issue is that Dukakis has demonstrat­ By Thursday and Friday , Aug. 4-5, the liberal news me­ ed beyond reasonable doubt that he suffers the types of grave dia were in a panic, demanding once again that the Reagan personality flaws which would lead to such outbreaks of administration expose and terminate all suspected connec­ depressive withdrawal under stress of keen disappointments tions to me. The reason for this rather violently expressed to his overweening ambition . A correlated issue is the pattern paranoiaby NBC-TV and others was the coincidence in tim-

26 Feature ElK August 19, 1988 ing between the President's witty reference to the "invalid" Dukakis and the President's and George Bush's affirmation of commitment to the SDI policy. In those circumstances, NBC-TV's paranoiac shrieking and howling was simply a knee-jerk reaction to its fear that arrangements of the 1982- 83 period, around the SOl, had been reactivated. No doubt, by now, there is a similar reaction in Moscow itself. In the meantime, Michael Dukakis's name has come up in an SOl-related connection. On Sunday, Aug. 7, a report was published in the Milan daily Avvenire, the newspaper associated with the Catholic bishops' conference of Italy. This account links Dukakis to a plot to place the Soviet Russian Orthodox Church in a dominant position in Jerusa­ lem among the world's religions, ousting both the Greek Orthodox Church and the Roman Catholic Church from their traditional responsibilities for the Christian shrines in the Holy Land. The report links Secretary of State George Shultz and Max Kampelman in the key official roles in negotiating such a deal with Moscow, and identifies Dukakis as a key conduit of policy-shaping in this matter. Intelligence sources relate that it is Dukakis's anti-SOl posture which won him Mos­ Former Democraticpresidential candidate, Lyndon LaRouche, cow's confidence in this matter. 3 wrote this afUllysison Aug. 9.

Dukakis vs. Prime Minister Thatcher If elected the next President, Michael Dukakis in Wash­ aristocrat, Richard Count Coudenhove-Kalergi, a one-time ington would be the figurehead he has been in Boston. His supporterof Hitler and founder of the Pan-European Union. leftistbackground taken into account, Dukakis has beenowned The second is the darkest figure of the Franco-Swiss circles, his entire political life by an international financial interest the late Denis de Rougement. The third is the former Trot­ represented in New England by the re-insurance cartel by skyist and one-time head of NATO, Belgium's Henri Spaak. whom Dukakis's late father was adopted. The immediate Thefourth , upon whom most of the economic-policy fe atures financial interest associated with both of his governorships is of the "1992 project" depend, is the late Jean Monnet. One a Harvard-pivoted Boston financial organization called The of the key European think tanks used to indoctrinate influ­ Vault, and the Boston law firmof Hill and Barlow. Dukakis, ential international figures in this project is the Salzburg a fanatically ambitious office-seeker, has served simply as Seminar. Behind the Salzburg Seminar stand more powerful the political hod-carrier for these interests. institutions, including the Venice-based Cini Foundation and In matters of national and global policy, Dukakis the the Geneva-Lausanne based predecessor of the Cini Foun­ presidential candidate is controlled by an international group dation, the Centre Internationale d'Etudes sur Ie Fascisme. whose best known public figure is Lloyd Cutler. The center The project is supported by the influential international agen­ of policy-shaping for this international group is in Europe. cy emerging as complement to the Bilderbergers and the The most powerful element of this international cabal is a Trilateral Commission, f�rmer West German Chancellor Lombard financier group centered around the world's most Helmut Schmidt's Inter-Action Council. powerful re-insurance cartel, Venice's Assicurazioni Gener­ These utopians were the figures to whom Mrs . Thatcher ali di Venezia, the same group that earliergave the world the referredin identifying the authorship of "airy fairy" ideas. 1912-14 Balkan wars triggering World War I, the 1917 Rus­ As advertised in the Western European press, and the sian Revolution, and the Benito Mussolini dictatorship in literature of the project's backers , the "1992 project" has the Italy. The current project of this group is most popularly following principal European features. known today as "the 1992 project." Lloyd Cutler et al. are The plan is to use the occasion of the next election of a spokesmen for aU. S. -Canada adjunct to this " 1992 project. " President of Europe to eliminate the national sovereignties of This "1992 project" is the scheme which Britain's Prime the nations of Western Europe, to place all authority for Minister Margaret Thatcher recently denounced publicly as monetary, economic, and fiscal policy of all regions of West­ an "airy fairy" piece of utopianism which her government em Europe under the control of a European government. would not tolerate. Under this plan, northernWestern Europe is to be reduced The "1992 project" is a scheme based on the influenceof to impoverished circumstances, and all industrial potential to four notable figures of this century. The first is the fascist be concentrated in a region including Bavaria and Baden-

EIR August 19, 1988 Feature 27 Wiirttemberg in Germany, northern Italy, southern France, private entrepreneurship in the way Benito Mussolini did in and Catalonia in Spain . Northern Germany, including the Italy. industrialized Ruhr, is to be turned backtoward the economic Traditionally, since the establishmentof our federal Con­ stone age, together with southernItaly and most of the Iberian stitution, the American System of political-economy has pre­ peninsula. scribed a precise economic di�ision oflabor between govern­ Already, the government of Belgium has acted to imple­ ment and private entrepreneurship. Under our Constitution, ment this utopian policy. On Friday , Aug. 5, the government government is responsible to provide basic economic infra­ of Belgium, by a two-third majority vote in the parliament, structure such as water-management and sanitation systems, changed the constitution of Belgium, to divide the nation into general transportation, production and distribution of power, a federation of three virtually autonomous political regions: general communications , public schools, and related ele­ Wallonia, Flanders , and Brussels. The central government ments . Government does this, on the federal or local levels, retains responsibility for national defense and some other either as economic activities of government or through reg­ matters , but one-third of the national budget will be turned ulated private ownership of public utilities. The rest, except­ back to the regions. . ing federal tariff and related protection in foreign and inter­ This Belgian development indicates the direction. The state commerce, is left to private entrepreneurship. existing nations of Western Europe are to be gradually dis­ What Dukakis proposes, is to dissolve this division be­ solved into a collection of feudalistic local regions, all under tween government and private investment, to replace both by the supranational coordinating authority of a European gov­ a new kind of corporate economic entity jointly owned and ernmentcontrolled entirely by the financier interests centered controlled by government, private investors , and local com­ in the powerful re-insurance cartels. This is the late Couden­ munities. Under Mussolini, this was known as "Corporativ­ hove-Kalergi's feudal-fascist utopia, "a Europe of the re­ ism," the essence of fascism. So far, if we overlook Dukak­ gions." is's personal arrogance, he does not seem to be an imitation Dukakis has been assigned the mission of bringing a of the Mussolini whom the Venetian agents Volpi di Misurata kindred state of affairs into a similarly regionalized United and Dino Grandi brought to power in 1920s' Italy. What States and Canada. Dukakis proposes under the name of "community," is de­ The way leading European spokesmen for the project scribed by its European advocates as "neo-corporatism," and explain this is as follows. They admit that under normal sometimes as "fascism with a democratic face," or simply conditions this scheme could not be sold to the populations "democratic fascism." It is the old Mussolini and Dolfuss of Europe and North America. They have no hopethat simply varieties of fascism dressed in democratic rhetoric , and thus campaigning for these utopian ideas will bring about their unlike Hitler's Nazism to that degree, but not much more . general adoption . However, under the kinds of savage aus­ Recently, Italy's leading daily newspaper, Milan's Cor­ terity which they intend to impose during the great financial riere della Sera, published the first three sections of a death­ crisis and economic collapse due to occur during 1989-90, bed confession by the Dino Grandi who died recently at the theyexpect to establishchanged conditions underwhich "1992 age of 93. Relevant excerpts are included as part of this EIR project" goals can be reached. feature (see box). Among the notable features of that confes­ No wonder Prime Minister Thatcher objects . sion are: The United Kingdom is composed of populations which 1) How Grandi , as a representative of Venice's Contarini tend to identifythemselves as Welsh , Scottish, and so forth . family, joined with the same Volpi di Misurata behind Par­ Under the circumstances that the central government of Brit­ vus's role in the Bolshevik revolution as the creators of Mus­ ainwere weakened to the degree the "1992 project" proposes, solini. the endemic particularist tendencies within Britain would 2) The affinities of Grandi for the use of Bolshevik Russia tend to come to the surface, especially under the circum­ to unifyEurope under one government, where otherattempts stances of economic regionalism which the project's spon­ to do this had failed earlier. sors intend. To Britain's conservative patriots , such a scheme 3) The fact that Mussolini was recognized by his sponsors portends the end of Britain; the hatred of utopian "1992" as a weak personality, whose flaws of personal character were ideologue Jacques Delors in these British circles is beyond an integral part of Mussolini' s temporary usefulness. description. Mrs . Thatcher's denunication of the "airy fairy" The comparison of Mussolini and Dukakis, in these terms nonsense of Mr. Dukakis's backers echoed those British pa­ of reference, is notable. Dukakis' s policies originate with the triotic sentiments . same Venetian "Lombard" circles which assisted the 1917 We should object just as vehemently. Russian Revolution and put Mussolini into power in Italy. Dukakis is a professed "corporatist," like Mussolini before Dukakis the fascist him. He is, like Mussolini, of a leftish background, and like In the strictest sense of the term, Michael Dukakis is a Mussolini's wealthy sponsors, soft on Russia. He has those fascist. His social policy, to which his campaign speeches character defects which caused his first Massachusetts gov­ attach the name of "community," is to eliminate traditional ernorship to be named "the Greek Colonels Regime." He is

28 Feature EIR August 19, 1988 Grandi went on to boast in his interview, "I was the first to have introduced the Russians into Italy , and I was Deathbed confessions the first to have the courage to bring Litvinov to Milan, of a 'Trust' agent because Mussolini did not give permission tobring him to Rome . Anyway, I am a follower of prt>-Russian policy. We are in Europe , and here thepotential unifieris Russia. Dino Grandi was one of the "Quadrumviri" who, together Charlemagne did not succeed, Charles V, Louis XIV, the with Benito Mussolini, carried out the 1922 March on Kaiser, and Hitler did not succeed; there is no doubt that Rome that brought Fascism to power in Italy . Later, Gran­ the closest to achieving Europeanunity arethe Russians ." di served as Mussolini' s foreign minister, justice minister, Grandi described Mussolini's personal weaknessesof and ambassador to London. In 1943 , he led an effort to character: "Mussolini passed from Milan to Rome with a oust Mussolini, in order to save Fascism. He was inter­ great desire to act like a respectable person, but he had viewed before his recent death by Gian Giacomo Migone this crowd of squadristi in his wake which bothered him for the nationally circulated Italian daily, Corriere della enormously, who believed in the revolution, while he did Sera, which serializedthe interview posthumously on July not want to make one." And further: �'He wanted to act 18, 19, and 20. respectable, but he was always a bozo ....In reality he By Grandi's account, it was Salvatore Contarini, scion was uncouth. . . . At the beginning be was very well of the Sicilian branch of one of the most powerful Vene­ spoken of, because he had started out by saying that we tianoligarchical fami lies, who suggested to Mussolini that had to pay our debts to America, a big deal. . . ." Grandi be put into the foreign ministry. Contarini, who When the U. S. Coolidge administration tried to force directed the foreign ministry from 1912 to 1924, "sug­ the Europeans to pay their debts, most European states gested my name, and so [the diplomats of the ministry] resisted. But in Italy , "Along comes Mussolini who want­ went to Mussolini to tell him they needed a new undersec­ ed to look respectable . [Giuseppe] Volpi [di Misurata­ retary ," Grandi reported . Mussolini's finance minister and chief political operative In 1929, Grandi related, "after Contarini resigned, I of the Venetian oligarchy] , the old pirate , did not wantto was tired, and I told Mussolini I wanted am embassy. pay. Mussolini, on the other hand, was unaware of the big Mussolini sarcastically replied, 'You will want Paris.' I economic and financial advantage of acting the part of a replied no, that I wanted to go to Moscow . 'And why debtor who pays. Mussolini understood nothing of eco­ Moscow?' he asked me . 'Because I want to see clearlythe nomics, but he repeated, 'I have to look goodto America; Russian Revolution, and I don't accept the cliche put out I have to put Italy with its new regime into a situation of by the Western bourgeoisie. To me the Russian Revolu­ moral credit. ' tion is nothing but the chrysalis, the matrix of a national­ "At the end, by saying we weren't there to get easy istic revolt in Asia.' At the time , it seemed particularly terms or to ask for money, we got everything we want­ strange. Then Mussolini told me , 'You will be foreign ed ....Ameri ca's financial support to Italy in the years minister within a week. ' . . . After Pitt, I was theyoungest from 1924 to 1929, slowed down therepercu ssions in Italy foreign minister that Europe had had in 200 years." of the 1929 world crisis."

what is called in German a GiJtzwerg (poisonous dwari) , the of this planet. The next President wUI be confronted by a weak personality type who , as figurehead, tends to be the complex of grave emergencies like no otherPresident of this type of some among the world's worst tyrants . century. It is from that vantage-point that an objective as­ Finally, he is eminently politically expendable . Were he sessment of the mental health of the next President must be elected, when his dirty work as a figurehead is completed in made . 1992, he would leave office as one of the most hated public References figures in the history of the United States, such that perhaps 1. DukaJcis:An American Odyssey, by CharlesKenney and RobertL. Turn­ former President Jimmy Carter would not touch him with a er (Boston: Houghton Mifflin, 1988); DukaJci8: The Man Who Would Be 10-foot pole . President, by Richard Gaines and Michael Segal (New York: Avon Books, Great men become more kindly in the degreetheir power 1987). and influence is increased. It is the oppressed underdog who 2. According to a July 23 report intheAtlanta Journal-Constitution, Kirk must fight bitterly against injustice; the great man in a posi­ told a meeting of state delegation leaders, "Think of the convention as a tion of power treats his defeated opponents kindly, and never four-day mini-series on television, with the delegates as the live studio uses power to settle neurotic 's personal grudges. With the audience."

approach of 1989, our nation and the world are entering into 3. Chief Soviet armsnegotiator, ViktorKarpov quoted in the Washington a period of the most dangerous crises in the modem histoty Post on July 28, 1988.

EIR August 19, 1988 Feature 29 Secondly, there is persuasive evidence that Dukakis is not qualified to make economic policy as President in a time of economic depression and financial panic. The record sug­ gests that Dukakis is a cruel, ruthless, technocratic elitist whose instinct and pedigreeincline him to policies of savage austerity at the expense of the unemployed, welfare victims, and othersamong the poorestand most defenseless members of our society. There are indications that Gov. Dukakis's Is Dukakis the new cognition of human suffering and of thehuman price of the austerity he proposes has been brutalized by his mental dis­ order. Senator Eagleton? By pedigree, Mike Dukakis is a puppet of "the Vault," a group of Boston Brahmin banks and insurance companies Here is the text of the National Democratic Policylea fletthat grouped aroundthe Hill and Barlow law firm. In his firstterm sparked the international uproar about Dukakis's mental as Governor of Massachusetts, Dukakis cut $311 million state, as it was printed and circulated at the Democratic from the welfare program, throwing 18,000 long-term un­ Party National Convention in Atlanta July 18-21. In the employed off the welfare rolls. On those still receiving pay­ "Documentation" section thatfollows, we quote the sources ments, Dukakis sought to impose workfare , forced labor at on which the leafletwas based. pay scales below the minimum wage. At the time, Congress­ man Barney Frank attacked Dukakis as "a governor who, Before you, as a delegate to the Democratic National Con­ since the day he came into office, has been waging war vention, make any final decision as to whom to support for against the poor. This workfare program is a disgrace." Du­ the party's presidential nomination, you should give careful kakis repealed the state's commitment to help the needy and consideration to evidence available inthe public domainwhich indigent who had no place else to turn. The symbol of Du­ casts serious doubt on Gov. Dukakis' s ability to carryout the kakis's first term as governor became the murderous meat duties of the presidency. The sources for such evidence in­ cleaver he used to hack away at social programs. Don't let clude two biographies of Gov. Dukakis. These areDukakis: anyone convince you that Dukakis is a humane liberal. And An American Odyssey, by Charles Kenney and Robert L. don't let anyone tell you that the new, post- 1982 Dukakis is Turner (Boston: Houghton MifflinCompany, 1988) andD u­ anydifferent from the old one. The new Dukakis has contin­ kakis:The Man Who Would Be President, by RichardGaines ued to promote 12, quasi-public semi-autonomous agencies and Michael Segal (New York: Avon Books, 1988). Some which he calls "job-creating public-private partnerships"but details are also corroborated by the profile of Dukakis pub­ which are in reality a carbon copy of the Mussolini fascist lished in Time magazine (June 20, 1988), and by a three-part corporate state. The Democratic Speaker of the Massachu­ profile which appeared in the Washington Post (July 10, 11, setts House said in 1978 that the prospect of a second term 12, 1988). Since all of this material is widely known, we for Dukakis made him want to "throw up." The Democratic must assume that the Bush campaign is fully awareof it, and State Senate President Kevin B. Harrington called Dukakis that Bush may be planning to use these questions as a weapon "a chief executive who is unable to governeffectiv ely." Rep. against the Democratic ticket later in the campaign. In view Barney Frank said of Dukakis that "by his own conscious, of the vast potentialdamage to our party, Gov. Dukakismust deliberate choices he exacerbatedthat situation and inflicted respondto these questions beforehis name is placed in nom­ social damage far beyond what had to occur." ination for President. Dukakis was resoundingly defeated in the Democratic First, there is strong evidencethat Michael Dukakis suf­ primary of Sept. 19, 1978 when he sought renomination as fersfrom a deep-seated mental instability that could paralyze governor. This was the most significantmoment of adversity him, and decapitate our government, in the event of a severe inDukakis ' s life, and can be regardedas a crucial experiment economic or strategic crisis. This is a tendency for psycho­ to give insight into the strength of his character. Dukakis logical breakdown in a situation of adversity and perceived reacted to defeat with a virtual nervous breakdown. Andrew personal rej ection. This tendency appears to be linked to his Sutcliffe, Dukakis's appointments secretary, recalls that the family background. In 1972, Senator Eagleton of Missouri governorbecame "very dejected. . . . He would spend long was disqualifiedas our party's vice-presidentialnominee be­ periods sitting in his office, introspectively staring out the cause of his history of depression and electro-shock treat­ window." Close aide Alan Johnson described Dukakis as ments. The evidence strongly suggests thatMichael Dukakis being "depressed and sullen ....He was stunned." Kenney oUght to disqualify himself for the same general order of andTurner write that Dukakis "was obviously in shock." The reasons. same authors recount that "Don Lipsitt, also a friend and

30 Feature EIR August 19, 1988 psychiatrist, says that the process of recovery was a slow broken man? Given the crises this nation must overcome one." KittyDukakis has stated that theexperience was "hor­ between 1989 and 1993, no delegate dare vote for Dukakis rible," "horrendous," "a public death" and a "period of until thesequestions have received a satisfactory answer. mourning. " Kenney and Turnerquote KittyDukakis that "her • Dukakis' s call to collect $110 billion in unpaid taxes husband became so depressed, she recalls now, 'that at one is a thinly veiled call for an IRS police state. point I was really worried about him.' " The same authors • Dukakis is committed to implement the austerity tar­ refer to the period as "an episode of horror" and "nightmar­ gets of the Bob Strauss-Drew Lewis National Economic ish." Gaines and Segal write that Dukakiswas "somber, hurt, Commission in a "hundred days" of genocidal austerity. and distraught." The Washington Post described this time as • Dukakis is considering Felix R�tyn of Lazard Meres, "like shock treatment" and "a mid-life change." the elitist technocrat who wrecked New York City in 1975, The finding that Dukakis suffered a debilitating mental as his Secretary ofthe Treasury . breakdown is buttressed by a history of frank mental illness • Dukakis is the tool of foreign bankers who hold U.S. in his only sibling, his deceased elder brother Stelian. Stelian Treasurybonds and control thepublic debt of the U.S.A. suffered a breakdown in 1951, in the course of which he was institutionalized for three to four months at Baldpate Hospi­ tal, a private mental hospital in Georgetown, Mass., where he was subjected to insulin and shock treatment. According to Euterpe Dukakis, Stelian attempted suicide on one occa­ sion. According to published sources, Michael Dukakis can­ Documentation not remember this. Stelian received psychiatrictreatment for much of his adult life. During one of Mike Dukakis' s election campaigns, Stelian distributed leaflets urging voters to vote against his own brother, Michael. No copies of this leaflet survive in the public domain. On March 17, 1973, Stelian The facts of thecase was struck by a hit-and-run driver while riding his bicycle. Stelian never regained consciousness and died on July 29, by Kathleen Klenetsky 1973, after more than four months in a coma. The hit-and­ run driver was never apprehended. Michael Dukakis says there is much he does not remember about his brother Stelian, The entirecontents of the NDPC "Eagleton" leafletwas drawn including his suicide attempt. Dukakis also claimed to be frommaterial readily available in the public domain. One of unaware of his wife Kitty's twenty-six-year amphetamine the most useful sources is Dukakis:An American Odyssey, a dependency. Such ignorance of those around him gives a very laudatory biography written by two Boston Globe re­ clue to Dukakis's cold aloofness, and may be psychopathol­ porters, CharlesKenney and RobertL. Turner.Dukakis: The ogical. George Bush has been rightly ridiculed for his "I Man Who Would Be President, by Richard Gaines and Mi­ didn't know" defense on lrangate-Contragate. What thencan chael Segal, is also useful, as are profiles of Dukakis pub­ be said about Gov. Dukakis, who simply ignored the acute lished in the July 25, 1988 Newsweek, theJune 29 Time, and suffering of his own wife and brother? If the suffering of a the July 10, 11, and 12 Washington Post. wife and brother is a matter of such indifference, how can poor and needy citizens far away from the Dukakis family I. Dukakis's mental instability hopefor compassion? The NDPC leaflet reads: "First, there is strong evidence Michael Dukakis has a documented, long-term personal that Michael Dukakis suffers from a deep-seated mental in­ and family patternof mental instability. That pattern makes stability that could paralyze him, and decapitate our govern­ questions like the following ones mandatory: If President ment, in the event of a severe crisis. This is a tendencyfo r Dukakis were to undergo a severe setback under stress, such psychologicalbreakdown in a situation of adversityand per­ as a new "Black Monday" financial panic or confrontation ceived personal rejection ....Dukakis reacted to [his 1978 with an external enemy, would he go to pieces? Would he gubernatorial defe at] with a virtual nervous break­ withdraw into himself? Would he become catatonic, as cer­ down.... " tain indices suggest he did in 1978, and leave this nation Sources: leaderless and adrift? Does Dukakis exhibit a psychological 1) Dukakis: An American Odyssey, by Charles Kenney dependency on certainfigures of the Kennedy School at Har­ and Robert L. Turner(Boston: Houghton Mifflin), 1988. vard who helped shepherd him out of his crisis? Why are Chapter 6, dealing withDukakis 's 1978 election defeat, psychiatrists so prominent a part of his personal circle of is entitled "Rejection," and reads, in part (pp. 129-131): friends? In short, is Michael Dukakis his own man, or is he a "The defeat was an episode of horror, thekind from

EIR August 19, 1988 Feature 31 which one would awake and, recalling the details, shudder. process of recovery was a slow one, partly because the set­ It was nightmarish, but it was no nightmare. There was noth­ back was such a stunning surprise. 'He was grieving,' says ing in his past to prepare Dukakis for the pain of this experi­ Lipsitt. " ence. It was true that he had lost elections before , but he had 2) Dukakis:The Man Who Would Be President, by Rich­ never been turned out of office. It was crushing. He had ard Gaines and Michael Segal (New York: Avon Books, achieved his lifelong dream-he was governorof Massachu­ 1987; published in hardcover as Dukakis and the Refo rm setts-and now it was gone, rudely, swiftly ripped away Impulse). from him .... From Chapter 16, "The Out-of-Office Campaign," pp. "The sickening knowledge that he had run a one-horse, 217-218: complacentcampaign becameall too clear .... He had blown "Mike Dukakis had been a lame duck for less than twenty­ it. He would later characterize it as 'the worst day of my life . ' four hours on September 20 when he met withhis senior staff "So great was the pain of the defeat for Kitty Dukakis in Room 360, the governor's office that would be his for that almost seven years later, during an interview with a another three and a half depression months. He was somber, reporter from the Associated Press, Kitty said, 'Oh, it was hurt and distraughtabout what had happened. . . . horrible. It was just horrendous. That was terrible , I mean, it "Dukakis withdrew to recall and examine four years in was like a public death.' Her husband became so depressed, the progression of a career built on lofty , if not faulty , as­ she recalls now, 'thatat one point I was really worried about sumptions that had led to failure . His self-confidence was him.' destroyed. All his assumptions-about human nature, about " 'It was a terrible loss, ' she says. For two to threemonths the rewarding of virtue, about the way to lead a democracy­ after the defeat he went through what she describes as a had been shattered. How wrong he had been about so many 'period of mourning,' when 'he was quieter at home, preoc­ basic things. His hubris gone, he was humbled. He stopped cupied more than usual.' He didn't know what he would do Mike Widmer afterthe primary. 'Am I really that awful? Am in the short run and was by no means sure thathe would ever I reallythat cold? Am I really that bad?' " again seek public office. . . . 3) Newsweek, July 25 , 1988, p. 39: "Andrew Sutcliffe , Dukakis's appointments secretary at "The story of Dukakis' s pain at thathumiliating rejection the time, recalls the governor's being 'very dejected .... is firmly fixed in Massachusetts political lore . He brooded He would spend long periods sitting in his office, introspec­ over what Kitty called 'a public death'; he apologized to his tively staring offinto space. ' staff; he went offto rethink his life and career. Heand Kitty "Normally, Dukakis was the most optimistic man around took a couple of vacations, one on Nantucket with John and the governor's office, always looking on the bright side. But theirtwo little girls ...the other with Kittyalone in Jamaica. there was no pretension now that there was a bright side. Neither was a happy escape. Dukakis had to wait out the Alan Johnson, who was deputy chief of staff and had been dreary months between his loss and [Democratic rival Ed] one of Dukakis' s closest aides since 1970, describes Dukakis King's inauguration [as governor] . Afterthat, his friend Hale as being 'depressed and sullen ....He was stunned. We Champion, a former Harvard administrator, called the dean were all just incredulous ....For the several months after­ of Harvard's John F. Kennedy School of Govemment to offer ward, a lot of that time was just a painful blur. We had been an endorsement of Dukakis for a teaching job. " the crusaders, the righteous heroes in '74 and '75, and it was 4) Newsweek, July 25 , 1988, p. 37: inconceivable that we could possibly lose.' Quoting Dukakis's stepson, John: "Losing was pain of "Although Kitty and othes worriedat times that he would the most personal kind.... Off and on after that, Dad was become seriously depressed, Dukakis says he didn't seek either impassive, or else he was kicking himself around any professional counseling. In fact, he says, he has never con­ roomhe was in. He wasn't sleeping. I'd walk into their room sulted a psychiatrist, not after his defeat, not after Stelian's and findhim on his back, staring at the ceiling. All the wheels breakdown or death. were turning." "Dukakissays of himself that he is not very introspective, 5) The Washington Post, July 10, 1988: and most of his responses to the defeat were brief, but there "For a politician known for a stubborn belief in his own were times when he did air his personal thoughs in pUblic. inerrancy-as a child, he would stay in his room for hours Dr. John E. Mack, a Brookline neighbor and distinguished rather than wear the socks selected by his mother-the real­ psychiatrist, remembers Dukakis's speaking to the Interna­ ization that his career in elective office might be over func­ tional Society of Political Psychology some months afterthe tioned like shock treatment, prompting a mid-life change in primary. 'It was a rare event,' Mack says. 'He was reflecting character and policy." out loud on his own pain, his own hurt, his own mis­ takes.... He was still tryingto grow from in-notjust as a II.Stelian Dukakis's breakdown shrewd tactician but really taking it in. . . .' The NDPC leaflet reads: "The finding that Dukakis suf­ "Don Lipsitt, also a friend and psychiatrist, says that the fe red a debilitating mental breakdown is buttressed by a

32 Feature EIR August 19, 1988 historyof frankmental illness in his only sibling, his deceased around Brookline one evening, dropping off leaflets that urged elderbrother, Stelian. Steliansuff ered a breakdown in 1951 ." people to vote against his brother. The details are sketchy; Sources: no copy of the leafletapparently survives. There is even some 1) From Kenney and Turner, Dukakis:An American Od­ uncertainty about when the incident occurred, though [Du­ yssey: kakis ally Fran] Meaney is sure it was during Michael's first "Stelian, a junior at Bates College in Maine, had a severe campaign for re-election to the House, in 1964. According attack of depression. He returned home and shortly therafter to Dukakis, Meaney and Cohen, the leaflet was not simply triedto kill himself. Family members are extremely reluctant supporting another candidate. It was clearly from Stelian and to discuss the incident, and usually refer to it as a 'nervous it argued against Michael. Meaney believed that Stelian as­ breakdown.' But Mrs. [Euterpe] Dukakis confirmsthere was serted in the leaflet that he intended to run against Michael a suicide attempt. Asked what happened,she replies: 'Do we himself. When word of the flyers got out, Dukakis's sup­ have to talkabout itT porters quickly followed Stelian's trail, trying to retrieve "Of Stelian's breakdown, Michael says, 'It came out of them before they were read. . . . the blue, just bang-o ....He called up and said he was "When he is asked about Stelian, Dukakis frequently coming home. He was deeply depressed, couldn't function. mentions the increased public understanding of youthful It was a total breakdown, almost. . . .' depression. 'In those days,' he says, 'we were, I think, less "Incredibly, Michael says he doesnot rememberwhether open about this kind of thing. These days you have [groups] Stelian tried to kill himself. He remembers the breakdown, led largelyby the parents of childrenthat have had thisprob­ but recalls few details. Asked specificallywhether his brother lem. I remember a group of them coming to see me, and I tried to take his own life, Michael replies, 'He came close.' was so impressed by the fact that they were very open about But then, whether it was kept from him or he has repressed it, they weren't blaming themselves.' Now, Dukakis does it,' he doesn't elaborate. 'I don't quite rememberwhat hap­ not shrinkfrom questions about his brother, but there is much , pened, he says. 'I remember my dad was involved. I remem­ he doesn't remember, including Stelian's presence at the Los ber a doctor being called ....This was at home, after he Angeles convention, his role as a member of the Democratic came home.' Asked if Stelian took pills, Michael answers, Town Committee in Brookline, and even, so he says, the 'Might have, but I remember something happened and my very fact of his suicide attempt. And there are a number of dad brought a psychiatrist in and the decision was made to intimate friends who say Dukakis has never shared such institutionalize him. It was obvious something was very details. Even Don and Merna Lipsitt, a psychiatrist and his wrong .' "(p. 32) wife who had been close to the family for twenty-fiveyears , "For Stelian had been disturbed, had experiencedperiods were kept in the dark. Mernabelieves that, since Stelianwas of odd behavior and unbalanced emotions, ever since his very close to Michael, 'possibly he has repressed that because breakdown in 1951. After Stelian went home from school it's so painful that he really doesn't remember.' Don says that spring, he was institutionalized for three or four months thatfrequently , while Stelian was still alive, 'Michael would at Baldpate Hospital in Georgetown, a private facility north ask me questions of a professional nature .' He says Michael of Boston, where, according to Dukakis, he got the basic wished for improvement in Stelian so earnestly that he was recognized treatments for mental illness at the time, insulin somewhat unrealistic. 'He thought you should be able to go and shock treatment. He responded, returned to Bates, and to a physician and it should be fixed up ,' Don says. 'He had graduated in 1953 with a major in government. His yearbook a tendency to want to diminish the seriousness.' " (pp. 73- notes that he was called 'Duke, ' that he was a classical music 77) lover, that he was on the cross-country and trackteams and a 2) Newsweek, July 25, 1988: member of the International Relations Club for his firstthree "His [Stelian's] breakdown happened after the breakup years, and that he 'took a short vacation.' Stelian received of a romance in his junior year. The diagnosis was vague; he psychiatrictreatment formuch of his adult life, but his recov­ was hospitalized for insulin and shock treatments. Stelian ery from the original trauma was sufficient that he lived on was never quite the same again. He had good and bad periods, his own .... in and out of therapy ....In his bad times the family didn't "After Stelian's breakdown, situations began to arise in see him; he kept to himself, brooding, and there were occa­ which he seemed to compete with Michael's record-and sional reports of heavy drinking, overpassionate political usually fell short. In 1958, seven years after Michael ran the arguments and eccentric behavior. One night in 1973, riding Boston Marathon, Stelian entered the race, but dropped out his bicycle in the dark, Stelian was struck by a hit-and-run after 16 miles. In 1960, Stelian was at the Democratic con­ driver. He was in a coma for four-and-a-half agonizing vention in Los Angeles supportingAdlai Stevenson; Michael months. Michael and Kitty visited daily at first, then every was there favoring John Kennedy. Later, Stelian's political other day. Hopes would rise when Stelian' s grip would tight­ efforts became more personal. en briefly, or he seemed to respond to a word, but it was an "In the most bizarre and hurtful episode, Stelian went illusion. One day he was gone."

EIR August 19, 1988 Feature 33 paign biography, Dukakis:An American Odyssey, by Boston Globe reporters Charles Kenney and Robert L. Turner, Ste­ lian's 1951 mental collapse and attempted suicide, apparent­ ly triggeredin large measure by the rivalry with brother Mike, Stelian: the governor's posed continuing political problems for Michael Dukakis throughout the last dozen years of Stelian's life . Chappaquiddick? "After Stelian's breakdown, situations began to arise in which he seemed to compete with Michael's record-and On July 21, theday that Michael Dukakis capped his political usually fell short. . . . In the most bizarre and hurtful epi­ comeback by accepting the Democratic Party's presidential sode, Stelian went around Brookline one evening dropping nomination, the Atlanta Journal-Constitution ran a political off leaflets that urged people to vote against his brother. The commentary by Christopher Lydon, a fonner New York Times details are sketchy, no copy of the leaflet apparentlysurvived . and Boston Globe reporter who now anchors the 10 o'clock There is even some uncertainty about when the incident oc­ news on Boston's public TV station WGBH. Lydon warned curred.... " convention delegates that a "Tragic Sibling Rivalry Tough­ According to thebiographers , when the word got out that enedDukakis . " Stelian was circulating an obviously personal and damning "An excruciating tragedy of sibling rivalry lies close to leaflet against his brother, the entire Dukakis campaign or­ the mainspring of Dukakis's politics. . . . Comparable brother ganization-apparently on orders from Kitty Dukakis­ troubles have formed a lot of political characters this centu­ launched a late-night dragnet to grab up every single copy of ry-such as Jimmy Carter, for example, whose brother Billy, the document and destroythem all . Miss Lillian said, was the brightest of her children. But In 1972, just as Michael Dukakis, now back as a full Michael Dukakis' s anguish is surely deeper because his be­ partner at his old Brahmin law firm, Hill and Barlow, was loved rival Stelian collapsed under the strain and died making his decision to run for governor, brother Stelian sought young .... and won the GOP nomination for the state representative seat "Stelian Dukakis, three years older than Michael, was an that Michael had formerly held. Although he lost the general ace student, athlete and school politician until Michael election, Stelian's continued involvement in state politics trumped him in every field. Just when the 17-year-old Mi­ was described by one Dukakis political intimate, Haskell chael posted his personal best in sports, a 3.31 time in the Kassler, as "unhealthy." Boston Marathon of 1951, Stelian broke down at Bates Col­ According to Kenney and Turner's account of the tragedy lege, attempted suicide, and came home to family care.Over that eventually claimed Stelian Dukakis's life , "It was a Sat­ the years, he was estranged, despondent, sometimes openly urday night, March 17, 1973, and Stelian was riding his at warwith Michael's public triumphs. bicycle on Winchester Street in Brookline, nearhis home at ''Then in 1973, Stelian got knocked off his bicycle by a 198 St. Paul Street. The bicycle was his only means of trans­ hit-and-run driver. For four months, he lay unconscious in a portation, and he had ridden it without incident for years , but coma before his family, Michael included, pulled the life that night, he was struck by a car. It was a terribleaccident­ supports." his mother still remembers that 'the bicycle was doubled 1973 was not 1988. The rash ofdepression-era propagan­ over, it was so bad'-but the driver did not stop and was da for euthanasia, mercy killing, "death with dignity," plug­ never found." pulling and other forms of literal murder was unheard of. According to the Boston Herald American of March 31, Back in 1973, murder was murder. 1973, police were provided with all the information normally What's worse, if a July 25, 1988 Newsweek magazine required to track down a hit-and-run driver: profile is accurate, brother Stelian, four months and twelve "The brother of former state rep . Michael S. Dukakis of days in a coma following the March 17, 1973 hit-and-run Brookline was seriously injured in a hit and run accident in incident, was beginning to show signs of coming out of the one of several weekend crashed that took the lives of a Wal­ coma-when the plug was pulled. Nearly two months to the tham man and a Rumford, Me. resident. day afterhe buried his troublesome brother, on Oct. 1, 1973, "Stelian P. Dukakis, 42, of Brookline was struckby a car Michael Dukakis formally declared his candidacy for gov­ while riding his bicycle on Winchester St. . . . ernor of Massachusetts. "Brookline police said Dukakis was taken to Beth Israel Hospital. His condition is described as grave. Police said he 'Sibling rivalry was something awful' was struck by a Volkswagen and thrown to the pavement, To this day, Stelian Dukakis's tragic life-and death­ landing on his head. The car sped away, witnesses said, but are steeped in unanswered questions, the kind that spark the police were supplied with the registration number. interests of clinical psychiatrists andpolice investigators alike. "Dukakis's brother Michael, was an unsuccessfulcandi­ According to the Democratic nominee's semi-official cam- date for Lieutenant Governorin the last state election."

34 Feature EIR August 19, 1988 who suffered a mental breakdown in 1951 and tried to kill himself at that time; and Dukakis' upset defeat in his first race for re-electionas governorof Massachusettsin 1978. . . . "The rumors are at least a year old, promoted by the LaRouche organization that makes a·practice of Circulating wild, inflammatory charges about people in public life .... "Most of the speculation about Dukakis has centered on his emotional health following the unexpected loss of the governorship in the Democratic primary in 1978, a period An uproar in the friends and family members have described as devastating for him and that his wife, Kitty, has called an experience 'like a public death.' world's press "That the defeat was a deep, depressing loss to Dukakis has never been disputed and has been written about exten­ United States sively. In the recent biography of the governor, Dukakis, an TheSeattle Post-Intelligencer of July 21 carried this report, American Odyssey, Kitty Dukakis is quoted as saying her datelined Atlanta: husband was so depressed at the time 'that at one time I was "This just in from the eccentric followers of Lyndon really worried about him. ' LaRouche: Michael Dukakis is mentally ill, is controlled by "In the book, she and other close aides describe a de­ a secretive business cabal, is 'psychologically dependent' on pressed, dejected, sullen official going through what Kitty Harvard advisors and once suffered a virtual nervous break­ Dukakis calls 'a period of mourning.' " down." The San Jose Mercury News on Aug. 5 ran a front-page From the Wall Street Journal's Aug. 3 editorial: article titled, "How Dukakis Rumors Spread," by Carl M. "What strikes us in the health-record issue, though, is Cannon. how little the American people know about this man nomi­ "Only two weeks after the Democratic convention, the nated to be their President. . . . In Mr. Dukakis' case depres­ innuendo peddled by the LaRouche organization that Mi­ sion rumors were predictable enough from two incidents in chael Dukakis might have suffered from mental depression his biography -Dukakis, an American Odyssey .... at some point in his life found its way, in one from or another, "Mr. Dukakis' brother Stelian, who died in 1973 after into the nation's major newspapers and television net­ being hit by a car while riding a bicycle, clearly did suffer works .... from depression. While at college in 1951, he suffered a "The flier and a subsequent July 28 article in The New mental breakdown, attempted suicide, was institutionalized Federalist, a LaRouche-owned newspaper, drew on quotes for three or four months and received insulin and shock treat­ from previously published biographies detailing how unhap­ ments .... py Dukakis had been aftereach of those episodes and implied "Edward King's victory left [Dukakis] 'very dejected,' that he would crack under the pressures of the White House. his appointments secretary said. 'He would spend long pe­ "The same article also asserted that Dukakis 'pulled the riods sitting in his office, introspectively staring off into life-support systems' on his brother after he had shown signs space. ' ... of recovering from a coma. . . . "His biographers also note, 'Incredibly, Michael says he "[Since most] ...of this material is widely known, we does not remember whether Stelian tried to kill himself. '. . . must assume that the Bush campaign is fully aware of it and "The question is not so much is Michael Dukakis in good that Bush may be planning to use these questions as a weapon health, but rather, is Michael Dukakis really what the voters against the Democratic ticket later in the campaign. think they see?" "As it turned out, it didn't take that long. In the past 10 days, reporters for several news organizations, including CBS The Washington Post of Aug. 4 had the following to say, News and Knight-Ridder News Service, were tipped by Bush under the headline, "Dukakis Acts to Kill Rumor": campaign aides about supposedly impending stories about "In Washington, Reagan set today's developments in Dukakis' mental health. . . ." motion when he was asked by a representative of political extremistLyndon H. LaRouche, Jr. whether he thought Du­ From the Wall Street Journal's Aug. 4 editorial, "Medical kakis should make public his medical records .... Footnote': "The rumors aboutDukakis have centered on two critical "Unless someone in the press wants to argue over whether events in his life: the 1973 death, from injuries sustained in a the public has a right to know about health questions, it seems hit-and-run accident, of his older brother, Stelian Dukakis, to us thebig press issue is why most establishment watchdogs

EIR August 19, 1988 Feature 35 left a legitimate question to someone froma fringe group." 'Not true, the Governor was not in treatment for a mental depressionor for any sortof mental illness, ' stated a spokes­ From the Baltimore Evening Sun's Aug. 5 editorial, "A Dan­ man for the organization of the Democratic candidate. But, gerous Stigma": the rumors have been growing in the past months, and took "What lingers . . . is the disturbing reality thatit becomes on new force after the Atlanta convention, and Dukakis's a shamefulstigma for an individual to seek medical treatment men have felt theneed to call up journalists to deny that it for a condition-clinical depression." had any foundation."

From the New York Times' Aug. 5 editorial , "The Psycho­ The London Guardian ran a front-page article Aug. 3, titled logical Barrier": "Rumors Depress Dukakis." Washington correspondent Alex It would have been "no disgrace if [Dukakis] had sought Brummer wrote: psychiatrichelp ," but would actually have "reflectedhealthy "Democratic Party insiders areadvising Mr. Michael Du­ common sense, no more disqualifyingfor public office than kakis to release his medical records to quash rumors that he a divorce, gender, race , or the 'wrong' religion." was once treatedfor depression. . . . "He showed acute signs of stress in 1978 after he was The Philadelphia Inquirer on Aug. 5 devoted its second voted out of the Massachusetts State House. His wife, Kitty, editorial to the subject, "What If He Had Seen a Shrink?" says he had difficulty sleeping and became unusually quiet. "Well, the Duke seems to have made it this far without She consulted a family friend andpsychiatrist, Dr. Dan Lip­ going off the deep end .... sett, who reassuredher that her husband was just grieving. "But we almost wish it'd been otherwise-that, like mil­ "Mrs. Dukakis has said the Governor went through a lions of his countrymen, he'd sought counseling, benefitted 'public death' and became so depressed that 'at one point I from it and come out the other end with a few insights on becamereally worried about him. ' how to cope with stress or grief. Such an admission might "The Governor also seems to have had serious trouble have destroyedanother taboo, just as John F. Kennedy made handling the death of his brother Stelian Dukakis, who died Catholicisma non-issue and PresidentReagan buried divorce in a motor accident in 1979. Stelian had a long, documented as a liability. " history of mental illness."

From an Aug. 8 article by syndicated columnists Rowland William Lowther, in the London Daily Mail of Aug. 3 wrote: Evans and Robert Novak, titled, "Behind Those Dukakis "[LaRouche] alleged that Mr. Dukakis was treated for Rumors": clinical depression after his brother was killed by a hit and "Thus, rumors long extant about two instances of depres­ run driver in 1973, and again five years later when he unex­ sion by Dukakis attractedthe Bush campaign's interest long pectedly lost a re-election race for Governor of Massachu­ before they were spread by Lyndon LaRouche's minions. setts.... It is generally accepted that anyone with a record Because [Bush campaign manager Lee] Atwater's "opposi­ of mental problems cannot be elected to the White House. " tion research" could not risk being caught, his lieutenants asked outside Republican operatives to do the digging and The Italian daily La Stampaon Aug. 3 featured LaRouche as then quietly broadcast whateverthey might find. . . . the force behind reports about Dukakis's mental illness. It "The fast-dying story was revived by President Reagan ran an uncomplimentary photo of Dukakis, with an article on Aug. 3 withhis reference, in answer to a LaRouche mag­ titled, "Dukakis: I Am Not Mentally TIl." azine correspondent's question about medical records, to Dukakis as an 'invalid.'. . . Apart from his half-apology, From the Daily Express of London, Aug. 4: Reagan was unrepentant (perhaps reflectingNancy Reagan's "At one stage, [Dukakis] is believed to have received fury over Dukakis' crack at her husband that when a fishrots , electro-shockthera py. The question of Mr. Dukakis 's mental the rot starts at the head) . . . . stability was, by last night, a blazing issue in the Presidential "The incident seemed to end with a classic backfire, Du­ race. In spite of denials from his aides, leading Democrats kakis apparently unhurt and the Bush campaign linked to were insisting that the Governor's refusal to publish his full Lyndon LaRouche." medical records was only fueling suspicion and leading to allegations of a cover-up." Europe Italy's Corriere della Sera of Aug. 3 ran a story with the From the London Guardian of Aug. 4, under the headline, headline, "This ' SecretIlln ess' of Mike Dukakis," sub-titled, "Reagan GaffePuts Dukakis on the Spot": "The Democratic candidate (who has already denied it) re­ Although President Reagan swiftly retractedhis joke about portedly suffered a nervous breakdown." The article begins: Dukakis being an "invalid," "be was successful in putting a "Dukakis in psychiatric cure for a serious depression? national focus on repeated but unsubstantiated specUlation

36 Feature EIR August 19, 1988 that Mr. Dukakis has received psychiatric treatment for years a wall of silence andcontempt. LaRouche has only now depression. " been able to break through it, thanks to his indiscretion on The liberal Guardian's editorial defended Dukakis, say­ Dukakis's 'depression.' But he is victimized, too , since ing that his problems are "part of the human condition . . . LaRouche, who is always very well-informed, had publi­ acting and feeling like a recognizable human being," which cized much more important information on Dukakis. He is should not be regarded as a "disqualification for holding the really capable of throwing a big shadow over the candidate's highest office." capacity to lead the United States. For example: Dukakis claims that he was able to 'put in order' the budget in Mas­ DanishTV Aug. 4 had prominent coverage of theinterchange sachussetts. In reality, to cover the state deficitof about $500 betweenEIR ' s White House correspondentNicholas F. Ben­ million, he manipulated the budget of the state , illegally ton and President Reagan, in which Reagan joked about putting into it money coming from lotteries, funds already Dukakis being an "invalid." The broadcast described the allocated for public services, money taken out of pension incident as "dirty American politics," but added, "The fact funds. It is for these reasons that the Democrats of Massa­ is, that Dukakis did suffer from a severe depression after his chusetts do not want to have him re-elected governor. . . . election defeat in 1978." "But the 'authoritative' U.S. papers did not say anything about all this; the issue of Newsweek, obviously extremely "New 'Time-Bomb' for Dukakis, With Cries Throughout authoritative, is still being sold which repeats that Dukakis is Massachusetts to 'Dump the Duke.' The Next Disaster Looms the author of 'an economic miracle' in Massachusetts. But for Dukakis," is the headline of a feature in the Aug. 5 thehistory of Dukakis' s depression is different: This is really London Daily Express, written by Philip Finn in Boston, what provokes front-page headlines and television de­ accompaniedby a photo of Dukakisand wife Kitty, withthe bates ...." caption, "The honeymoon is over." The text starts: "Widening hints that presidential candidate Michael Du­ The London Observer of Aug. 7, owned by 'Tiny' Rowland, kakismay not have told all there is to know about his state of has a feature entitled, "How the Smear Becamethe Story. " mental health are now seriously undermining the recent eu­ ReporterPatrick Brogan fromWashington firstattributes phoria of the Democrats' Atlanta convention. " the Dukakis story to the desperation of some campaign work­ ers of George Bush, who "put out the story that Michael The Rome daily La Repubblica Aug. 5 headlined its cover­ Dukakis has a psychotic and unstable personality and was age, "Dukakis Declares: 'I Am Sane !' " twicetreated for severe depression ....Dukakis has denied it and his doctor came forward to insist that the stories are The Milan daily Avvenire on Aug. 6, published by the arch­ quite untrue. If anyone can prove otherwise, as George Bush diocese of Milan, ran an article on LaRouche by Maurizio would put it, the Duke is in deep doo-doo." Blondet: "The piece of news on the 'psychic problem' of Dukakis Asia ...was circulated by a man called Lyndon LaRouche: He The Hindu, New Delhi, Aug. 6 carried this report, datelined is also a Democratic candidate, without hope for success, Washington, Aug. 5: whom the very 'authoritative' papers define as 'crazy' and "The President, Mr.Ronald Reagan, on Wednesday gave 'right-wing extremist.' It is not true: LaRouche (who even credence to a rumour about the Democratic Presidential can­ has a leftist past) was listened to by the White House in the didate, Mr Michael Dukakis's mental health in the past by early years of the so-called 'star shield'; he has given the callinghim an "invalid" but withdrew his remark. . . . administration information of strategicvalue; has a political "The rumour had its origin in a pamphlet issued by sup­ program, which might not be shared in total, but cannot be porters of Mr Lyndon LaRouche, a longtime Presidential rej ected either. Somehow, he is an important figure, a reso­ candidate known for his controversialviews on domestic and lute critic of certain corruption and occult powers of Ameri­ foreign policy issues. It had questioned the competence of can politics: For this he underwent political-juridical perse­ Mr Dukakis to become President after charging that he had cution inspired by no less thanHenry Kissinger. For the rest, sought psychiatriccounseling in his early past. Supporters of he promoted two or three referenda in California,asking for Mr Larouche distributed the pamphlet to those attending the the adoption of effective measures to contain AIDS. If, not­ Atlanta Democratic national convention. . . . withstanding, in Italy you never heard about LaRouche, there "Reports have it thatWhite House aides were worried at is a reason: In some cases and about certain men who ' disturb' the President's gaffe . There have been allegations that Mr themost real and fearedpowers (fromKissinger to thehomo­ Reagan was promoting MrBus h's chances in thepoll through sexual lobby), the American newspapers know well how to actions like vetoing the Defence Bill sent by the Congress exert self-censorship. with reduced allocation for the 'Star Wars ' pro­ "Around LaRouche, 'crazy,' 'Nazi,' there has been for gramme ...."

EIR August 19, 1988 Feature 37 why. Dukakis's action "opened the doors for satanism and voodoo," which have subsequently proliferated in the town. Cabot used the award "to encourage witchcraftto come out of the woodwork." Laurie Cabot: the Local people say the award was a "turningpoint ," which made it not only legitimate, but desirable, to be known as a Dukakis court witch witch. Some observers contend that Dukakis may not have re­ by Kathleen Klenetsky alized what he was doing in naming Cabot as the official witch, that she shamelessly promoted herself for the award, and that Dukakis merely rubber-stamped it. President and Nancy Reagan may have their court astrologer, Even if that were true, Dukakis has had plenty of oppor­ but Michael Dukakishas his official witch. tunities over the last ten years to rescind the award, but has In 1977, Massachusetts GovernorDukakis formally pre­ repeatedly refused to do so. "He has never repudiated it," sented Laurie Cabot with a state honor, the "Paul Revere says one local source, "even though his office has been con­ Citation," proclaiming her the "Official Witch of Salem, tacted repeatedly to distance himself fromCabot ." He's just Mass." Cabot received the reward, for which she was rec­ "shrugged off' the requests. ommended by State Rep. Elaine Noble (D-Boston), ostensi­ Dukakis's endorsement of Cabot fits perfectly with his bly in recognitionof her work with dyslexic children, whom, Aquarian, New Age outlook, exemplified by his tolerance by her own account, she got to "go into an alpha state and for drugs, defense of homosexual "rights," and sponsorship alter their brain waves." of legislation to permit "unnatural and lascivious acts."

'No use for Christianity' Neutralize LaRouche The recipient of the Dukakis award is someone who has In the wake of the uproar over the candidate's mental practiced witchcraftfor 40years-and who has avidly sought health, Dukakis's connection to Isis-worshipper Cabot is to promotethis dangerous garbage at everyopportunity . emerging as a campaign issue-as it should. Not only does Cabot boasts that she has "no use for Christianity or the his promotion of Cabot provide furtherevidence of his mental Bible," and instead follows the precepts of the old pagan instability, the prospect of having someone who tolerates religionof the Goddess. witchcraft running the United States is horrifying. Although she claims that she is a "good witch" who does A California minister, Rev. George Otis, has called on not practice satanism, anyone who believes that a real dis­ the candidate to separate himself from Cabot, and to de­ tinction exists between "white" and "black" witchcraft is nounce witchcraft. Like his stubborn refusal to release his deluding himself. The revival of witchcraft of all stripes, medical records, Dukakis, as of this writing, remains ada­ with its ritualistic torture and murder of innocent children, mant in his refusal to disassociate himself from Cabot in along with the carefully orchestrated rise of the rock-drug particular, and witchcraft in general. counterculture, has been a key element in the "New Age" For her part, Cabot is incensed over the efforts to sever plot to eliminate all traces of Judeo-Christian civilization in her from Dukakis. She told a journalist recently that ''This the United States. has to be inspired by [Lyndon] LaRouche. He hates me ! He Scion of the oligarchical Cabot family, the 55-year-old put my picture on the front page of his paper. He equates me Cabot says she has been involved in witchcraft for decades, with satanism and called me a lesbian, which I'm not. Not and claims to possess powers that enable her to alter the that I'm against lesbianism, I'm just not one myself. He brainwaves of herself and others. doesn't want to receive enlightenment about the superiority Cabot is a leading figure in Wicca, a high priestess in the of the old ways to Christianity. He and the fundies refuse to Council ofIsis. She resides in Salem, the site where thewitch understand the superiority of the Goddess. " trials of the 17th century took place, where she runs a witch­ "I'm using my powers to neutralizeLaRouche 's negative es' shop, Crow Haven Corner, serves on the board of the energy," Cabot disclosed. "I can go into an alpha state and Witches' Museum, and is a prominent member of the local alter my brain waves so that I can turn LaRouche's negative Chamber of Commerce. energies back against him. That could harm him-not that Salem is a hotbed of occult activity. Published accounts we ever do anything harmful!" say that 2,000 of its 38,000 residents consider themselves Cabot claims she does not know the Dukakises person­ witches. Witchcraft plays a central role in the town's tourist ally, but thinks Kitty Dukakis "is just wonderful." The two industry. met when a delegation of craftsmen from the People's Re­ According to one well-informed source, Dukakis's ele­ public of China visited Salem. "Kitty is lovely, she's almost vation of Cabot as Salem's officialwitch is partof the reason regal," Cabot gushed.

38 Feature EIR August 19, 1988 threemont hs, at most. Postscript "The objective of this constitutional outrage is so bla­ tantly political and retaliatory that it will backfire . Eliminat­ ing the political opposition on the eve of national elections is a sign of dicatorship. I am confidentthat neither the American electorate nor world opinion will stand for this overtly polit­ Political moves to put ical attack on our free election process. " NOpe out of business Warren Hamerman is still slowly recovering from mul­ tiple fractures, contusions, and abrasions suffered in an ac­ cident which occurredlast June 16, when a hit-and-run driver In joint papers filedin v.s. Court in Richmond, Virginia on deliberately forced his bicycle off the road causing a severe Aug. 3, both the officeof Henry Hudson in Virginia and the fall , and then sped away from the scene. The driver of the V.S. Attorney's office in Massachusetts demanded that they vehicle has not been found by police investigating the case. beallowed access to National Democratic Policy Committee discovery material, in order to collect on a $5.1 million judgment under an exotic statute known as a "Writ of Exe­ cution." Hudson's officealso asserts that it has been blocked in gaining discovery of the NDPC because of "the recalci­ Order this report in bulk tranceof NDPC chairman Warren Hamerman." They inform This week's Feature, "Dukakis's mental health: an theCourt that since the Writ emanates from thecourt of Judge objective assessment," has also been printed as a 16- David Mazzone in Boston, if Hamerman refuses to answer page Special Supplement to this edition of EIR . It in­ questions, he will face the possibility of a personal contempt cludes a Letter from the Editor summarizing Dukakis' s ruling from Mazzone in Boston. shocking social policies as governorof Massachusetts, In the Richmond government motion, affidavits are at­ which have opened the floodgatesto the drug-sex coun­ tached from both Henry Hudson's underling, Wingate Grant, terculture, legislating privileges for the "gay rights" and from Peter Gelhaarof the V. S. Attorney's office in Mas­ community and users of mind-altering drugs (previ­ sachusetts. The government complains that "it is apparently ously published in EIR). business as usual for the NDPC," and that they want to To order extra copies of the Dukakis Supplement, liquidate the First Amendment-protected political action clip and mail the blank below with your check or money committee out of existence. It complains that the NDPC order. refuses to "negotiate a payment plan" on the $5.1 million judgment emanating from a so-called contempt judgment in Please send me _ copies of EIR's 16-page Supple­ William Weld's "get LaRouche" grand jury. The affidavitof ment, "Dukakis's mental health: an objective as­ Hudson's underling demands a court order because "NDPC sessment. " is apparently still very much in business." Price (includes postage and handling): Hudson's officeasserts that a "Writ of Execution" for the $5.1 million judgment has been obtained in Massachusetts, 1-24 copies, $2.00 each and that the Writ is now in the hands of a Virginia marshal 25-49 copies, $ 1.00each for full collection even before the NDPC's appeal before the 50-99 copies, $ . 70 each First Circuit Court in Massachusetts is decided. 100 or more , $ .50'each NDPC chairman Warren J. Hamerman commented: "The friendsof Michael Dukakis are obviously apoplectic over the I am enclosing $ ____ (check or money order) . fact that the NDPC is not out of political business because of

the leaflet we distributedat the Atlanta Democratic Conven­ Name ______tion raising questions of the mental unfitness of Dukakis to

be President. The Massachusetts yankee patricians of 'The Address______r- ______Vault' and Harvard who run both Dukakis and that drug

menace William Weld would like to throw the Constitution City ______State ___Zip ___ _ out the window in order to deliver a revenge economic death

penalty against the political action committee of the La­ Telephone ______Rouche wing of the Democratic Party, before the final phase of the presidential elections. Therefore , theyare so desperate Make checks payable to: EIR News Service, Inc., that they refuse to let the First Circuit Appeals Court make P.O. Box 17390, Washington, D.C. 2004 1-0390. its ruling, which legal experts think would occur in two to

EIR August 19, 1988 Feature 39 'New Yal ta' plot fo r unholy war over Jerusalem exposed

by JeffreySteinberg

On Sunday, Aug. 7, Avvenire, the official daily newspaper the chairman of the Senate Foreign Relations Committee, of the Catholic Archdiocese of Milan, Italy published an could be consulted. extraordinary expose of a secret deal between the United By Avvenire's accounts, Pell placed a telephone call to States, Russia, and Israel to recognize Jerusalem as the cap­ Gov. Michael Dukakis, who had already declaredhis support ital of Israel-possibly as early as December of this year. for U.S. recognition of Jerusalem as the capital of Israel. Accordingto theAvvenire story, which was based on detailed Dukakisgave his blessing to the Helms amendment, accord­ information from a "deep throat around government circles ing to the Milan account, and several hours later, the Senate in Washington," the secret deal is to have the United States approved the amendment to S. 9925 by a voice vote. Sen. and the Soviet Union simultaneously recognize Jerusalem Warren Rudman (R-N.H.), a notorious Israel Lobby asset and move their embassies to the disputed city, which is the within the Congress, delivered the endorsement for the Re­ holy place of the world's three great monotheistic religions. publicans. This was the critical factor prompting King Hussein of Jordan to abruptly announce on July 31 that he was dropping all Max Kampebnan: secret negotiator claims of Hashemite sovereignty over the Israeli-occupied The Avvenire account emphasized the role of Ambassa­ territories on the West Bank: ofthe Jordan River, territories dor Max Kampelman, the United States's chief arms control that include the holy sites of East Jerusalem. negotiator in Geneva, in the secret talks with the Soviets and Accordingto A vvenire, King Hussein was initially warned the Israelis. Kampelman reportedly conducted the "most se­ about the Russian-American-Israeli "religious New Yalta cret negotiations" at the personal behest of Secretaryof State deal" on July 24 by Michael Duke of Kent, the Grand Master George Shultz. Neither President Reagan nor Vice President of Scottish Rite Freemasonry . Bush were apparently provided with details on the nature of Two days afterthe warning, Sen. Jesse Helms (R-N.C.) the Kampelman diplomacy. In fact, according to Avvenire introducedan amendment on the floorof the Senate, Amend­ and other accounts, Shultz ordered Karnpelman to shuttle ment 2682, which authorized the U.S. government to build between Geneva, Moscow, and Washington, keeping him two new diplomatic facilities, one in Tel Aviv and one in secretly apprised of developments . Reportedly, the only oth­ Jerusalem, therebygiving the President-electthe opportunity er person in Washington who was brought in on the secret to choose between the two cities as the location of the U. S. deal was Senator Helms, who, under the influence of long­ embassy. Senator Helms requested that the arnendment be time Anglo-Soviet Trust agent Jon Speller, has been virtually taken up as an "emergency measure" attached to the Senate capturedby an extremeright-wing faction of the Israeli Likud authorization bill for the State Department's annual budget. that favors the three-way deal over Jerusalem. The manuever apparently stunned the other senators. On The transcript of the Senate debate over the Helms behalf of the Democratic majority, Sen. Fritz Hollings (0- amendment provides strong circumstantial corroboration of S.C.) requested a recess until Sen. ClaibornePell (D-R.I.), the Avvenire account. According to the Congesssionai Re-

40 International EIR August 19, 1988 cord of July 26, 1988 on page S9919, Senator Helms is that it will establish its embassy in Jerusalem. quoted telling his fellow senators, "Mr. President, I have • And an Orthodox patriarch of Washington will be es­ worked over a number of months with the State Department tablished with equal statusto a RomanCatholic cardinal and working to reach this compromise. Throughout our negotia­ the equivalent position in the Protestant denominations. This tions, the State Department has been frank, straightforward, will legitimize Orthodoxy as a major religion in the United and candid. It just goes to show how much can be accom­ States. plished when people sit down in good faith and patiently and Pivotal to the entire arrangement is the downgrading of diligently work out their differences. In addition, I would be the role of the Vatican,both within the holy city of Jerusalem remiss if I failed to mention my appreciation for the work of and within world Christianity as a whole. "Rome is the ulti­ my good friend, Ambassador Max Kampelman, who so per­ mate target of this entire Russian move," said one senior sistently and ably worked to put this compromise together U.S. intelligence veteran with years of experience in the through many months of discussion." Middle East. When Senator Helms introduced his amendment on the Avvenire author Maurizio Blondet underscored the stra­ Senate flooron July 26, he told his colleagues, "This amend­ tegic implications of the three-way secret accord by ending ment has been agreed to by the administration." the article on the following note: In fact, according to EIR's own Washington sources, "As far as Israel goes, it is an old dream to take thecapital most key administration officials were kept totally in the dark back to Jerusalem. It calls to mind a 1982 interviewby David until the eleventh hour. One top official, National Security Ben-Gurion with Look magazine. Asked to describe his vi­ Adviser Gen. Colin Powell, who was at the time deeply sion of the world in five years , 1987, his image was very involved in efforts to win congressional approval for a vital clear: The Cold War is a thing of the past. In Russia, growing arms sale to Kuwait, learned of the Helms-Kampelman ma­ pressure by the intelligentsia and by the masses to have more neuver only at the point that the amendment was introduced prosperity and more liberty will lead to a gradual democrati­ onto the floor "with administration approval." Unable to reach zation of the Soviet powers. On the other side, the growing Kampelman or Shultz, Powell reportedly went directly to influence of the workers and men of science transforms the President Reagan and got the President's okay to delay the U.S.A. into a social state with a planned economy. Eastern vote until after the Kuwaiti arms sale had been passed. Too Europe and Western Europe will become a federation of late to stop the final voice vote, Powell reportedly shiftedhis autonomous states ruled by a social democratic regime. In efforts to blocking the Israel Lobby's plans to kill the Kuwaiti Jerusalem, the United Nations-the true United Nations­ sale. In what may yet prove to be a Pyrrhic victory, Powell will build a Temple of the Prophets to serve the federated reportedlygot Reps. Mel Levine (D-Calif.) and Larry Smith union of all the continents. This will be the supreme court of (D-Fla.) to drop their Kuwait-bashing campaign, and won humanity destined to level all controversies among the fed­ authorization for the F- 18 fightersal es. erated states as Isaiah prophesied. At the same time, a pill Conservative Republicans, bamboozled by the Helms­ capable of preventing pregnancy will slow down the demo­ Shultz-Kampelman cabal, are reportedly now up in armsand graphic growth. No more armiesor wars." considering moves to have Kampelman, long branded a "so­ In the short term, the reports of the new Washington­ cialist" and a "liberal Democrat," booted out of the Reagan Moscow-Jerusalem secret deal have apparently prompted administration. In the meantime, the Helms amendment is King Hussein to "count himself out" of the unraveling Pal­ now before a joint House-Senate conference committee and estinian crisis-leaving the PLO to sink or swim. According could be presentedfor a vote by the full House of Represen­ to sources in Washington and Tel Aviv, the Shamir govern­ tatives at any time. ment has already struckanother secret accord-this one with Syria, in which the two countries agree to collaborate in the Avvenire spells out the deal extermination of the PLO. That process already began on Among the key elements of the secret American-Russian­ Aug. 9, when Israeli artillery bombarded a PLO camp east Israeli deal as reported by A vvenire: of Sidon, Lebanon for hours. PLO chairman Yasser Arafat • The Soviet Union will renovate two of the properties is reportedly the target of a joint Israeli-Syrian assassination of the Russian Orthodox Church in Jerusalem for use as a scheme, to be activated themoment that the PLO attempts to Soviet embassy and cultural and consular offices, once Mos­ establish a government-in-exile to rule over the West Bank. cow reestablishes diplomatic ties with Israel. On the broader horizon, to the extent that Russian Ortho­ • In return, Israel will cooperate with the Soviet Union doxy establishes a deeper hold in Jerusalem in collusion with in allowing the Patriarch of Moscow to establish and staff extremist elements within Israel, events in the region will major ecclesiastical and monastic institutions in Jerusalem. move inevitably in the direction of war. Just as the Balkan • The United States will announce its recognition of crisis set the stage for World War I, so the apparent "solution" Jerusalem as the capital of Israel at the exact same moment to the Jerusalem question sows the seeds of a strategic mis­ thatthe Soviet Union restores diplomatic ties and announces calculation whose consequences may decimate civilization.

EIR August 19, 1988 International 41 Documentation begun, and construction of one facility has been com­ pleted, or is near completion; and (C) unless security considerations require otherwise, commences opera­ tion simultaneously. . . . Obviously, this amendment is the result of intense and extensive negotiations between the administration and myself. . . . This amendment has been agreed to by the The Helms amendment administration. It permits the State Department to undertake site ac­ on Jerusalem quisition, development and construction of "two " new dip­ lomatic facilities in Israel understood to be in Tel Aviv and Jerusalem, provided that each facility preserves the ability The transcript whichfollows is takenfromthe Congressional of theUnited States to locate its Ambassador at thatlocation. Record of July 26, 1988, pp . S9919-9920 and S9925. The In addition, theamendment provides thatneither facility remarksby Sen. Jesse Helms (R-N.C.) and others were made be selected to be the U.S. Embassy until one facility is before afullsession of the U.S. Senate, convened to consider completed or near completion. Obviously, this effectively the Senate's version of the FY1989 State Department Au­ will leave the decision as to which facility shall be our new thorization. Embassy up to the new President of the United States, This is the one record in the public domain which helps whoever he may be. . . . to substantiate allegations reported in the Italian newspaper As my colleagues are well aware, this question of the Avvenire (see article, page 40), that King Hussein of Jordan location of the American Embassy in Israel has been an hadbeen warned of a Russian-American-Israeli deal to make issue for some time now. Jerusalem the capital of Israel, and that Senator Helms in­ Many of us here in the Senate-I venture to say most troduced the amendment reported here to aid that deal. The of us here-believe that Israel has a right to choose its own transcript also records the recess fo r consultation with Sen­ capital, andthat theUnited States should locate its embassy ator Pell, during which time, Avvenire reports, Pell would accordingly. . . . havegotten the go-ahead by telephone from theDemocratic Mr. President, I have worked over a number of months presidential nominee, Michael Dukakis. with the State Department, working to reach this compro­ mise. Throughout our negotiations, the State Department Amendment No. 2682 to S. 9925 has been frank, straightforward, and candid. It just goes to (Purpose: To provide for the diplomatic mission in Is­ show how much can be accomplished when people sit down rael.) in good faith and patiently and diligently work out their MR. HELMS: Mr. President, I send an amendment to the differences. In addition, I would be remiss if I failed to desk and ask for its immediate consideration. . . . The Sen­ mention my appreciation for the work of my good friend ator from NorthCarolina proposes an amendment numbered Ambassador Max Kampelman, who so persistentlyand ably 2682: workedto put this compromise togetherthrough manymonths On page 58, between lines 17 and 18, insert the follow­ of discussion. . . . ing: MR. HOLLINGS: Mr. President, I am not prepared on this Sec 304. Notwithstanding Section 130 of the For­ particular amendment. It affects our foreign relations field, eign Relations Authorization Act, Fiscal Years 1988- and I have asked the distinguished Senator from Rhode 89 and Section 414 of the Diplomatic Security Act Island, Mr. [Claiborne] Pell to be consulted. While he is and any other provisions of law, such funds as are being consulted, I suggest the absence of a quorum.. . . authorized, or that may be authorized, under the Dip­ MR. HOLLINGS: Mr. President, I have had the oppor­ lomatic Security Act or any other statute, and appro­ tunity now to check with our distinguished chairman of the priated to the Department of State under this or any Foreign Relations Committee, Senator Pell, and I understand other Act, may be hereafterobligated or expendedfor this amendment would be acceptable. site acquisition, development, and constructionof two So on this side, we are prepared to accept the amend­ new diplomatic facilities in Israel, Jerusalem, or the ment. West Bank, provided that each facility (A) equally MR. HELMS: I thank the Senator .... preserves the ability of the United States to locate its MR. RUDMAN: Mr.President, I am glad we were able Ambassador or its Consul General at that site, con­ to work this out. The amendment has been carefullydrafted. sistent with United States policy, (B) shall not be It reserves to the State Department and the President ulti­ denominated as the United States Embassy or Con­ mately the determination of U .S. policy. It does not change sulate until after construction of both facilities has policy, and it is acceptable on this side.

42 International EIR August 19, 1988 Government of Panama hosts Ibero-American unity talks

by Silvia PalaCios and Robyn Quijano

A continent-wide movement to bring about Thero-American Paul II's most recent encyclical, Sollicitudo Rei Socialis, integration was forged at a historic conference in Panama demonstrating that "the aspirations which will occupy the Aug. 8-11, attended by 200delegates from 22 nations of the deliberations that begin today, not only answer to the clear region. Senators, congressmen, labor leaders, historians, demands of our national realities, but also bear the highest, scientists, ex-ministers, and retired military officers worked most authoritative, blessing." together to plan a Second Amphictyonic Congress, in honor of thefirst such congress organized by Sim6n Bolivar in 1826 Support for Noriega to unite the continent's new republics. (In ancient Greece, an speakingfor the Bolivian delegation, retiredGen . Lucio amphictyony was an association of neighboring states for Afiez quoted from Gen. Omar Torrijos, the Panamanian na­ their common interest.) tionalist leader who "married thearmed forces to the people." The delegates unanimously approvedthe "Declaration of The battle ofpatriots of the continent today should be ''toend Panama," in which they determine that "the Latin American dependence on the foreign debt and drug trafficking," Gen­ and Caribbean chiefs of state [will] meet with the intention eral Afiez stated. He called Panama the place where "you of forming or institutionalizing the Latin American Confed­ find the largest percentage of popular dignity in the conti­ eration" in 1992, to commemorate "the SOOthanniversary of nent," then turnedto General Noriega to state, "We areproud themeeting of two cultures. " The declarationalso insists, "It that you, General Noriega, are here with us today." is historically imperative that we achieve Latin American All the delegates gave full support to General Noriega integration, as the only way in which we can confront and and President Solis, and the battle Panama is waging for overcome the constant and permanent threats against our sovereignty. The Declaration of Panama states, "That with countries, stemming from the foreign debt, the drug trade, systematic political and economic aggressions against the and imperialism's military and economic aggressions." Republic of Panama on the part of the Reagan administration, Panamanian President Manuel Solfs Palma addressed the theintention of ignoring the Torrijos-Carter Treaties is made opening session, which included hundreds of Panamanian clear, and is confirmed in the United States Congress by a delegates, representatives from thediplomatic corps, and the resolution that seeks its unilateral abrogation under threatof international press. On the dais sat Gen. Manuel Antonio invasion. " Noriega, the conference organizing committee, which in­ The support for the governmentof Panama, demonstrated cludes Nils Castro, Nitka de Abrego, Carlos Wesley, Fer­ at these talks, was reported widely in the Thero-American nando Quijano, Carlos Cota, Hector Basualdo, Marisol Ar­ press, constituting the final blow to the Reagan administra­ cia, and Hector Herrera, representing half a dozen nations of tion's attempt to isolate General Noriega and draw all of the region, along with the heads of each delegation from Ibero-America into the U.S. assault against that nation. By every nation of the continent. the last day of the conference, the Peruvian government had PresidentSolfs began by urging those present to returnto announced that it would attempt to rectify the errorof having their countries after theconference ended, to work with per­ removed Panama from the Group of Eight, the Contadora severance and "to take back with you the good news that, at support group which Panama helped found. Peru simultane­ the site of the First Amphictyonic Congress, the work has ously recognizedthe government of Solis Palma as the legit­ begunto lay the basis for a Second Amphictyonic Congress, imate constitutional government, and sent in a new ambas­ withthe purposeof achieving the integration of all our poten­ sador. tial for greatness into a single force, that will at last put an "This event represents the antibodieswhich areproduced end to the servitude imposed upon our peoples." (See Doc­ in order to endure U. S. imperialism, and perfectthe defense umentation.) of our Latin America," General Noriega told reporters at the To close his speech, President Solfs quoted Pope John inaugural session of the conference. Panama must turn to-

EIR August 19, 1988 International . 43 ward Latin America today , he said, while Latin America tion of Pharmaceutical Industries, who participated in the "sees in Panama its own anguish .... [We] represent the workshop on Science and Technology for Integration. He mirror of all aggressions against peoples who wish to be stated that in addition to sovereignty in food and energy, free. . . . The meritorious representatives of brother Latin sovereignty in medicines is also required. He gave as an American countries who are participating in this meeting , are example the 1982 Malvinas War, in which Argentina was authentic witnesses to the history which Panama is writing left medically vulnerable. His presentation was a polemic today . [Panama] is suffering one of the most brutal aggres­ against free trade and the international oligarchy that controls sions, because it refuses to capitulate and lend its territory so the pharmaceutical industry. thatfore ign forces can attack brother countries. " Venezuelan Labor Party representative Alejandro Peiia told the workshop on drugs: "The crime I will discuss today Concrete resolutions will be catalogued in the future as the greatest genocide in Delegates to the conference participated in workshops on the history of mankind , mass murder worse than that of the following subjects, to draw up resolutions on what must Hitler, a murder that, not content with destroying the body, bedone to carryout Thero-American integration: 1) Econom­ also destroys the mind, and even the soul. I refer to the role ic Sovereignty, Integration, and the Foreign Debt; 2) Law played by the policies of the International Monetary Fund in and Integration; 3) the Labor Movement in lbero-America; the promotion of drug trafficking ." Pefia continued, "How­ 4) Drug Trafficking as a Factor of Disintegration and Inter­ ever, future generations will be able to exclaim, if today we vention in Latin America; 5) Armed Forces, Security , and so wish it, 'In 1988, lbero-America united, overthrew for­ Defense of lbero-America; 6) Social and Cultural Problems; ever drug trafficking and the IMF.' " 7) the Environment; 8) Science and Technology for Integra­ Pefia continued , "We should denounce not only the fact tion; 9) the History of Integration. that . . . the international banks which are owed the debt are In the morning session on Aug. 9, Deputy Jrraj a Ro­ the principal 'launderers ' of the $500 billion annually man­ drigues, president of the Foreign Debt Commission of the aged by the narco-traffickers , but also the fact ...that the Brazilian Congress, presented three proposals: the creation IMFdeliberately promotes drug trafficking ." Pefia called for of a debtors ' club among the countries of the continent; the the Presidents of Thero-America to decree a continental mil­ declaration of a five-year moratorium on the debt; and the itary alliance against drug trafficking . "For that, a Continen­ creation ofan lbero-American Common Market. tal Joint Chiefs of Staff must be created to coordinate opera­ Here , Marivilia Carrasco, secretary general of the Mex­ tions. " He also asked the meeting to take steps to "detect the ican Labor Party (PLM) , spoke on "Food and Energy Secu­ fieldsof marijuana, cocaine, and poppy in all of lbero-Amer­ rity for lbero-America." "Perhaps the area which most re­ ica, as well as the laboratories and centers of logistical sup­ flects the economic deterioration of our continent under the port." He called for using military justice to judge and jail last five years of subjection to International Monetary Fund the financiers and bankers , on the charge of being traitors to rule," she said, "is the reduction in the consumption of food, the fatherland. "We must proceed immediately to seize all and the concomitant collapse of capacity to produce these their goods as booty of war," Pefia said. foods. . . . It is urgent that we begin agricultural infrastruc­ turepro jects which will permit us to achieve food sovereign­ Military backs Panama ty . . . . It is evident that the tasks which we spoke of for food "We cannot permit U. S. imperialismto continue to place and energy are absolutely within our reach . Together, for its insolent boot on our territories," said Gen. Elio Garcia example, with Argentina, Mexico, and Brazil , we can be Barrios of Venezuela. "We Latin Americans must unite; as autonomous in nuclear matters; in questions of oil technolo­ long as the armed forces are not conscious of this integration, gy, Pemex and Petrobras arecapable of providing technolog­ we will never achieve it, because we must fight together to ical advice, and training for the skilled manpower of any find our destiny." Gen. Humberto Cayoja of Bolivia said, country that needs it. "Panama is not alone in its sovereign fight, because it is the "Continental collaboration will awaken the imagination fight for Latin American dignity, which is why we stand in of the continent to construct the Patria Grande [Great Fath­ solidarity with its cause." Gen. Miguel Angel de la Flor, ex­ erland] . I still see the shining eyes of those Mexican peasants foreign minister of Peru , told the conference that the motto to whom I have had the opportunity to propose that, instead of General Torrijos, " 'it is better to die on one's feet than of going as wetbacks to the U. S., they can participate in live on one's knees ,' is growing more important each day in making Mexican production grow in the extension of the the fight for freedom and sovereignty of our peoples. We Argentine agricultural frontier that requires immigrants from must increasingly shape a Latin Americanist will to achieve all parts ofthe continent for its development," she concluded. the project begun by the Liberator Sim6n Bolivar, because "Pharmaceutical sovereignty" was put forward as vital only through common and united action will we be able to for lbero-America by Brazilian industrialist Jose Carlos de confront U.S. imperialism, which is trying to politically and Luca Magallanes, president of the Latin American Federa- economically subjugate us."

44 International EER August 19, 1988 "Therewas an awarenessof the need to constructin Latin America an organized and coordinatedmovement ," Argen­ Documentation tina trade unionist Domingo Petrecca told EIR , referring to the discussions in the labor workshop. "In this new debate, we should interest all the organizations of Latin America, all the labor federations ....There was agreement on naming an organizing commission that will bear the responsibility for planning a Latin American meeting and the formal con­ stitution of this new entity for theentire continent ," he said. Making up the commission on the labor movement at the conference were trade unionists from Argentina, Peru, Bo­ livia, Brazil, and Mexico. Participating from Mexico was Juan Sosa of the oilworkers' union. The Science and Technology workshop voted up a doc­ ument read to the plenary by State Deputy Cecilia Soto of Solis Palma: 'This Sonora, Mexico, a member of the CardenistaNational Dem­ ocraticFront (FDN). The document stronglyendorsed nucle­ dream of integration' ar energy, and also superconductivity and other advanced technologies, and called for the creation of a Latin American This is thefulltext of the speech of Acting Minister in Charge advanced research center. of the Presidency of the Republic of Panama, Manuel Solfs Gen. Edgardo Mercado Jarrin (ret.), former Peruvian Palma, to the Meeting Toward the S�("ond Amphictyonic prime minister and foreign minister, reported the resolution Congress, in Panama City on Aug. 9. Subheads have been of the Armed Forces, Security, and Defense, workshop. It added. called for abolishing the Rio Treaty , which set up an inter­ American military force, on the grounds that it had proved Gentlemen: itself worthless in the Malvinas and Panama situations. In­ Thewelcome given today by the Panamanian people and stead, the resolution called for creating a Latin American by my government to the distinguished delegations present defense board, excluding the United States, to represent Lat­ here is very different from that given the first efforts to or­ in American interests. ganize a meeting of plenipotentiaries of the new Latin Amer­ ican nations, which culminated in the Amphictyonic Con­ 'Hold the trench of dignity' gress of 1826, held in our capital. Gen. Manuel Noriega delivered the closing speech, be­ The forefathers of Latin American integration had a dream, fore a cheering crowd of 1,000 and the international press glimpsed a possibility, shared a vision of needs and aspira­ corps. Never before have so few , he told the gathered dele­ tions which would bring our peoples to a crossroads which gates, worried so very many imperialists as theyhave today. would make them aware of a common destiny, shaped by the "As we reach the fourth day of this meeting, where there similarity of the problems of our economic, social, and spir­ were no ideological positions nor radical postures, where in itual development, and by the sameness of the enemies of Christian fashion we sought out that which unites us rather thisdevelopment. than what divides us, we proudly proclaimto the world, and The quality of the representatives attending this confer­ to our own Indian, black, mestizo, and white men, that the ence, for the purposeof beginningto join efforts to celebrate hour of the people has come ....And know that here in a Second Amphictyonic Congress, confirms that conditions Panama, your brothers will hold the trench of dignity in the already exist on the continent to make Latin American inte­ name of duty, though we may be threatened with extermi­ gration not only a possibility, but also so necessary that its nation, since we are of the belief that nationalist fighters are postponementimplies a high cost in hardships and sufferings, not the masters of their lives, since their lives belong to the in political instability and social violence, in frustrations, fatherland. " despair, and failures. General Noriega's speech culminated the final session, Indeed, the principal motivation of governments at that at which President Solis Palma was also present, and where time was, doubtless, the common enemy-the armies of the each of the nine workshops presented their findings. Former Spanish Crown determined to reimpose imperial dominion Argentine Congressman Hector Basualdo also spoke on be­ over the territoriesof the new republics. But now, when there half of the meeting's organizing committee, and thanked the are other forms of domination, when the common weakness­ Panamanian government for hosting the event, and General es of underdevelopment and its causes have made us under­ Noriega in particular, "in whom we see the light of hope for stand that the main weapons usedto SUbjugate us are our own Latin American integration-may God protect him." submissiveness and disunity, when the chains of the debt,

EIR August 19, 1988 International 45 the specter of drugs, and the poison of disinfonnationunder­ an unjust and unjustifiable international economic order. mine the constitutional order of our governments and their One of the most fruitful achievements that could come institutions, then the common enemy becomes clear to us all out of this meeting, is to determine how far we are still and seems to dictate to us the very agenda of a Second Am­ dominated by deception, as the Liberator [Sim6n BoHvar­ phictyonic Congress of plenipotentiaries of all the enemy's ed.] warned us in his speech at Angostura, when he said, victims. "We have been subjugated moreby deception than by force, and degraded more by vice than by superstition." These im­ The problemswe face perial weapons, gentlemen, have been perfected during the The agenda of thismeeting covers a wide range of specific 169 years that have elapsed since. problems sharedby all theLatin American nations, and 1 am certain that the deliberations begun here today will shed much What must we do now? light on the way these problems repeat themselves in every Faced with this dream of Latin American integration, nation, and will show not only the similarityof the nature of today so insistent, so demanding, so urgent in our consci­ those problems, but also their causes and the factors that ences, we must ask ourselves: "What can we do now? What block or hinder their effective solution. Thus, 1 will limit must we do now?" Notwithstanding all foreign obstacles, myself to a few general comments fromthe perspectiveof a and all the difficultieswhich the powers may place in the path chief of state always obliged, and today more than ever, to of Latin American integration, 1 believe that it is we, and see each national problem in the context of all the other only we, who will constructLatin America. And the greatest problems. responsibility of our leaders is precisely that: to show the The educators present here are very well aware of the way, to direct people, and to lead them with concrete steps deficienciesof our educational systems which, in addition to toward that unity which, as Bolivar said, "will not come to reflecting exiguous cultural levels, also block the acquisition us through divine miracles, but through noticeable effects of political virtues which are the sole basis for sustaining and well-directed efforts." effective and lasting democratic institutions. But they know Personally, 1 believe that among the many reasons that that these deficiencies also depend on both the scarcity of therealization of this splendid aspiration of the Liberator has resources allocated to education and on the destructive and been delayed, one of the main ones has been due to associ­ degenerative influence exercised by the industry of distrac­ ating it always with thefo nnationof a single great state, with tion of the masses, which has superimposeda frail and ficti­ a federal government tha� incorporates all of our nations, tious culture on top of our very rich, ancient, and varied forgetting that Bolivar himselfcautioned against such impos­ cultural traditions and on top of our evolution, which consti­ sibilities when he said, "I think that it were better for America tutes one of Latin America's essential contributions to uni­ to adopt the Koran than the governmentof the United States." versal civilization. Each of our countries must keep our identity as nations, The active duty and retired military men who are here but we must alsomake the unyielding decision to struggle in today and who well represent the new orientation of Latin unity for the sake of our authentic independence. America's military, understand that misery and backward­ Just as WesternEurope has been slowly uniting, despite ness generate dangers to the security of human society as the diversity and individual strengths of its cultures, the force great as the whole gamut of extraterritorial threats which of its national historic identities, and its varied levels of bombardus daily. development, Latin America must enter more substantive The scientists present here well know that the general stages, and join anaccelerated integration movement, to also inadequacy of our countries in the various sciences and, guarantee the prosperity and well-being of our peoples, whose above all, in the sciences that are indispensable for techno­ unfulfilledaspirations are growing daily more explosive. logical progress, arenot only due to our own limitations, but A few days ago, a prestigious U; S. publication statedthat also, to some extent, to an exclusive concentration of the this decade is a lost decade for Latin America, in that our potentials for sharing the knowledge and discoveries from countries have all become impoverished. Average real in­ other places, a treasure whichbelongs to certainpeopl es, and come, without exception, is less today than in 1980. Last which others do not have easy access to. year, 30% of the value of all our exports disappeared in The politicians and scientists presenthere know well that payments to the commercial banks and to the international the primary difficulty in directing the masses toward their financial institutions, as foreign debt service. But the weight liberation lies not only in a multiplicity of beliefs or ideolo­ of our dependency is still more terrible when it touches the gies, but also in a pennanent mystification of reality, delib­ very heart of our needs, when it affects the production and erately conceived as an instrument of subjugation, not only consumption of food. Malnutrition, which formerly existed with the intention of eternalizing privileges within the fron­ only in some countriesor regions, has spread and now covers tiers of our societies, but also for the purpose of braking the vast regions, and has progressively become a chronic reality drive to forge the collective will of allof our peoples, against for the majority of our countries' populations, who increas-

46 International ElK August 19, 1988 ingly depend on the import of all kinds of products, and tions in the face of standards that only exist in textbooks and especially agricultural products. in pamphlets of destabilizing propaganda. It is necessary to warnthat dependency becomes interfer­ In truth, it is time that the world understand that each one ence in our affairs, when it is used to try to impose on us a of our countries has its own dream, and that those dreams are foreign political and social model. In the case of Panama different fromthe U.S. dream, just as they are different from today, dependency has come to form part of political, eco­ those of the peoples of Europe, and of Asia, and of the rest nomic, and financial aggression, which replaces the war of of the world. It is time for the world to understand, further, territorial conquest. that those dreams are as valid and as Doble as those of Jeffer­ Among the new forms of deceitful tactics that are repeat­ son, and Thomas Paine, and Lincoln, and have the same right edly employed against Latin American interests, and against to exist and to become our ideals and· goals. the interests of each Latin American nation, the terrible ex­ periencethat Panama is suffering today gives us the authority The basis for unity to denounce the export of dreams and ideals, and the efforts If we merelycompare regimesand match structures, pay­ to divert our people's attentions through empty institutional ing no attention to the inevitable assymetry of institutional lures entirely irrelevant to the national reality of each of our evolution that can be inferred from our diversity, we will be countries. distancing ourselves fromforms of unification based on fac­ tors that give us a common entity, andwe will be sacrificing We must find our own way the path of material and spiritual progress for all peoples for Here, again, Bolivar has left behind guideposts to show the sake of a means of individually conceiving that progress. us the way, in his writings which, at times, appear to us like The first great Latin American struggle against a foreign a catechism of liberation. In this quote, a little long but from empire did not stop to thinkabout thedifferent idiosyncracies which not a word can be eliminated, we find the definitive of theregimes that were aboutto be born.In this new struggle response to the library democracies, the showcase democra­ for final liberation, let us seek thatwhich can unite us in Latin cies, the democracies for export: "I should say (affirms the American integration, and not that which separates us, since Liberator) that it has never for a moment entered my mind to all that will be more easily and quickly resolved with an compare the position and character of two states as dissimilar integrated Latin America determined to serve each one of its as the English-American and the Spanish-American. Would peoples, themselves united by an unshakeableand permanent it not be most difficult to apply to Spain the English system will to excel. of political, civil, and religious liberty? Hence, it would be His Holiness John Paul n, in his most recent encyclical even more difficult to adapt to Venezuela the laws of North on the Church's concern over social questions, and which I America. Does not L'esprit des lois state that laws should be would like to cite on this occasion, tells us: "The developing suited to the people for whom they are made; that it would be nations from the same geographic area, and above all those a major coincidence if those of one nation could be adapted from the southern zone, can and should constitute new re­ to another; that laws must take into account the physical gional organizations, premised on criteria of equality, liber­ conditions of the country, climate, character of the land, ty, and participation in the concert of nations, as they have location, size, and mode of living of the people; that they already begun to do with promising results." should be in keeping with the degree of liberty that the Con­ Thus, theaspirations which will occupythe deliberations stitution can sanction respecting the religion of the inhabit­ which begin today, not only answer to the clear demands of ants, their inclinations, resources, number, commerce, hab­ our national realities, but also bear the highest, most author­ its, and customs? This is the code we must consult, not the itative, blessing. codeof Washington !" I wish you allmuch success and, above all, much persev­ In these flowing words from Angostura, the Liberator erance. When each of you has returned to your countries of again raises his insistent and wise advice that each of the new origin, may all of you spread the word that during the battle Latin American nations be left to digest the liberty achieved of Panama against colonialism, a dream again flowered, the with independence, in accordance with its own nature and other dreams of the other Americans-we Americans who with its own timetable. have always been passed over. And that these Americans, There he expressed at great length and detail that precept much older and more numerous thanthe others, have decided of his which adorns the entrance to the Colombian Foreign to take hold of our own destiny, inspired by the legacy of the Ministry, and which tells us that each people has its own Liberator; and take back with you the good news that, at the regimen which the others should respect. site of the First Amphictyonic Congress, the work has begun The time has come for us to understand that the illusions to lay the basis for a Second Amphictyonic Congress, with of false ideals areweapons to restrainthe political, economic, the purpose of achieving the integration of all our potential and social currents of Latin America, to embroil them in for greatness into a single force, thatwill at last put an end to sterile disputes about the degree of perfection of its institu- the servitude imposed upon our peoples .

EUR August 19, 1988 International 47 worse discontent among workers (in the absence of real eco­ nomic improvement, that is), and even strikes. Ligachov used an old-school Soviet claim, that since "socialism is a system of the working people . . . striking against them­ Ligachov disputes selves is absurd." While visiting Gorky, Ligachov also sought to rally hard­ Gorbachov's reforms core Russian chauvinists. On Aug. 3, he met Gorky activists of the Society for the Protection of Historical and Cultural by Rachel Douglas Monuments , a mass-based movement of which the anti-Se­ mitic Pamyat society is the militant wing. Too many Com­ munist Party organizations, he told them, "do not support the The power struggle in the Soviet Union erupted with new initiatives taken by the Society for theProtection of Historical force in the early days of August, when General Secretary Monuments ....Try stripping our society of its memory Mikhail Gorbachov left on his summer vacation and Polit­ [pamyat-ed.] and of all works of material culture created buromember Yegor Ligachov used a tour of theprovinces as by our people. One would feel uncomfortable in that soci­ theoccasion to openfire on Gorbachov' s changes in domestic ety." and foreign policy. It was evident from Ligachov' s speeches Accordingto an articleby AlexandreAdler, in the French and fromthe crisis atmosphere at a Communist Party Central paper Liberation of Aug. 8, Ligachov's speeches were pre­ Committee plenum held July 29 (see article, p. 10), that the ceded a few days earlier, by rallies of Afghanistan warvet­ battle goes far beyond a clash of personalities or their fief­ erans from various Siberian towns, including Ligachov's doms. What drivesthe factional brawl is the increasingly dire hometown of Novosibirsk. Some veterans reportedly booed conditionof the Soviet economy; a central matterof dispute every time Gorbachov's name was mentioned, because of is how best to buy or take what the Soviet bloc will need from the party chief's "policy ofabandonment in Afghanistan." the West, while maintaining military advantages achieved. It is dawning on more peoplein the West that, as English 'Class character' Sovietologist Peter Reddaway commented to the BBC on The other explosive element in Ligachov's Aug. 5 speech Aug. 6, Gorbachov could "stumble" in the event of "a total was his insinuation that Soviet foreign policy was abandon­ breakdown of order inside the Soviet Union, a crisis in the ing the class struggle. On July 26, Foreign Minister Eduard economy , unrest in Eastern Europe, or some combination of Shevardnadze said at a foreign policy conference: "The new these." political thinking views peaceful coexistence in the context Speaking Aug. 5 in the Volga River industrial city of of the realities of the nuclear century. . . . The struggle be­ Gorky , Ligachov warned against "Western models" of eco­ tween two opposing systems is no longer a determining ten­ nomic practice, which would bring "chronic unemployment" dency of the present-day era." Ligachov rej oined: "We base and undermine ''the achievements of the Soviet people and ourselves on the class character of international relations. the [Communist] Party in building socialism." In a swipe at Any other presentation of the question just sows confusion the limited forms of private ownership favored by Gorba­ among Soviet people and among our friends abroad." chov's economic team, Ligachov said, "Copying of Western On July 26, Cuban leader Fidel Castro had become one , market models based on private ownership is totally unac­ of Moscow s irate friends. He devoted one section of a speech ceptable for a socialist system." to "current differences with the Soviet Union," and pro­ A July 29 article by economist Tatyana Subbotina, print­ claimed, "We must not flirt with capitalist things." Fidel also edin theCentral Committee economics daily Sotsialistiches­ accused the U.S.S.R. of having botched military operations kayaI ndustriya-Ligachov controls much of the CC staff­ in Angola, one area covered by Soviet-American "regional attacked reform legislation with which Gorbachov has asso­ matters" agreements. ciatedhimself closely, the Law on the Cooperative System. The Afghanistan war is another regional conflict, hotly Thispermits private enterprise on a cooperative basis, chiefly debated in Moscow. Gen. Maj . K.M. Tsagolov was recently in the service sector. Subbotina sharply questioned whether quoted in the weekly Ogonyok, on the errors of Soviet policy the coops would "really contribute to the improvement of in Afghanistan, including reliance on an Afghan Communist socialism." So far, she said, they offerhigh prices and poor­ Party that he said was incapable of leadership. On Aug. 3, quality goods. "Are there any real grounds for fearing a he was the target of harsh criticism by a former commander capitalistde formation of our cooperative system 1" Yes, she of Soviet forces there, Gen. Col. V.A. Vostrov, in the mili­ concluded, since the coop law has features which "could tary daily Krasnaya Zvezda. Tsagolov participated in Shev­ enter into conflictwith the principles of socialism." ardnadze's Foreign Ministry conference, on the panel about Ligachov, in the Gorky speech, also complained that the "Policy Toward Developing Countries and Settlement ofRe­ vaunted glasnost, or press liberalization policy, had led to gional Conflicts. "

48 International EIR August 19, 1988 Spaak, one of the masterminds of the"European unification" movement now known as "Project Europe 1992." One of his daughters is today married to Britain's Sir Michael Palliser, a chief figure among that renegade group in Britain which supports "Project Europe 1992," despite the strongly worded Belgium kowtows to objections to the project by British Prime Minister Margaret Thatcher. 'Europe '92' schemes A senior figure in the Union of European Federalists-a 50,OOO-member organization which supports the creation of by MarkBurdman a "United States of Europe"-stated in an Aug. 9 discussion: "What happened in Belgium was very good. . . . For the future , Belgium can't hang together. Flanders and Wallonia While most of theEuropean continent was entering its August will become separate states, and Brussels will be the Wash­ holiday season and attention was turned to mountain and sea ington, D.C. of a United States of Europe . This will happen resorts , the Belgian Parliament on Aug . 5 made a surprising peacefully, but the point is simple: The federal system in decision. The Parliament voted, by a comfortable number Belgium can't hold for long ." over the needed two-thirds majority , to make a basic change Spain, he stressed, had in recent years adopted certain in the Constitution, transforming Belgium from its status of federalist features in its governing system for the Catalan, a centrally governed nation, into a decentralized, federal Basque, Andalusian, and other provinces, and could now be state , made up of three relatively self-dependent regions: motivated to make further moves in the federalist direction. Flemish-speaking Flanders with 5.6 million inhabitants , More provocatively, this individual insisted that a "fed­ French-speakingWallonia with 3.2 million, and the bilingual eral" solution could and should be adopted by the United capital city of Brussels, with 1 million . Kingdom: "Sometime in the not-distant future , you will see Never before has a nation simply changed itself from a Scotland representing itself separately in the European Par­ united state into a federation. The decision is a big step liament. It will be done in an entirely friendly way. I am very toward the "Project Europe 1992" transformation of Europe encouraged that Mrs . Thatcher is worried by the 'Europe into a balkanized "Europe of the regions" ruled by suprana­ 1992' process. She's narrowly focused, and believes thatthe tional financial and reinsurance cartels, replacing the "Eu­ Westminster Parliament will someday be replaced by seven rope of the Fatherlands" favored by such great European regional parliaments . That doesn't have to happen, but his­ leaders as Charles de Gaulle . tory will mandate that the Scots will represent them­ Belgian Premier Wilfried Martens called this the most selves ....The Scots are a nation , so are the Welsh." He important reform since the nation was created in 1830. A added, "It is in this context of European federalism and re­ Belgian radio newscaster stated: "Belgian is no longer what gionalism, that the situation in Northern Ireland can be it was before. From today, we live in a new Belgium." solved." Beginning in 1989, the governmentsof the "regions" will makethe decisions on a large partof economic policy, schools, Forced inmpove�brnnent traffic (outside of airtraffic and expressways) , environment, Over the weekend after the Aug. 5 Belgian Parliament and health . Combined, these add up to at least one-third of decision, Lothar Spath, the prime minister of the West Ger­ the total national budget. The central government will keep man state of Baden-Wiirttemberg , announced he will host a control over what arereferred to as the "classical tasks of the conference on Sept. 9, of the four regions that would be the state ," such as foreign and defense policy, internal security , most prosperous on the European continent, in the "1992 justice, monetary and fiscal policy, and social security. But, reorganization ." These include Baden-Wurttemberg itself, for example , there will no longer be a national education Catalonia in Spain, Lombardy in Italy, and the Rhone-Alps minister. of France. These four, acting as a special unit, said Spath, The Italian daily Corriere della Sera observed Aug . 7, should be ready to "sponsor" the prospective "poorer re­ that the fact that Brussels now has decreased importance as gions" of the emerging Europe . The latter, in Spath'sview , the capital of a centralized Belgium, means that it is more included Portugal-and Belgium, which he labeled ''re­ likely to become the capital of a united and federated Europe. gions." Inthe past months, "Euro- 1992" financier and wheeler-deal­ Newest unemployment figures for Europe show a drop in er Carlo De Benedetti has repeatedly insisted that one of his such places as the district of Barcelona (Catalonia) , Baden­ chief goals in his frantic attempt to buy up Belgium's Societe Wiirttemberg , and parts of northernItaly , but a rise in south­ Generale giant, is that he wants to be well-positioned in ern Italy and Denmark. Individuals involved in "Europe 1992" Brussels, as the future capital city of a "united Europe ." planning admit in private , that the . projected reforms will Brussels was the headquarters of the late Paul-Henri mean the effective end of Denmark as a producing nation.

EIR August 19, 1988 International 49 "Shultz is making a last stand to get rid of Panama strong­ man Manuel Noriega, who has proved to be as intractable as a tick on a dog," Jack Anderson noted in his Aug. 9 column, published in the Caracas Daily Journal. "In spite of the set­ backs, Shultz is determined-even more determined than the Shultz scheme a dud President-to oust Noriega. The secretary of state was a key player behind the covert action finding that Reagan secretly in Central America signed last month bolstering opposition to Noriega . . . a mild sop to Shultz, who refused to relent." by Gretchen Small Democratic bullying "Relentless" Shultz was on the defensive from the get­ Once again, the U.S. Establishment has decided that a Cen­ go. He has no military or economic aid to offer Ibero-Amer­ tral American war is the quickest route to success, in its ica, an official responsible for much of State Department desperate drive to blow up the potential for a united Thero­ Americas policy told the press in a background briefing be­ American defense against the global deal that the Establish­ fore Shultz left. He will tell them that free trade is the only ment has struck with the Soviet imperialists. way they can solve their economic problems, and then return What else could account for the bizarre agenda adopted to the question of restoring "democracy" to Panama and by Secretary of State George Shultz during his Aug. 1-10 Nicaragua. When asked if the Reagan administration plans grandstand tour of Central and South America? From Gua­ to help Bolivia with increased military aid to fight the drug temalaCity to Buenos Aires, Shultz told national leaders that mafia,the State Department officialsnapped, "You know we they had better back U. S. plans to overthrow the Sandinistas don't go around with suitcases filled with security assis­ inNicaragua-or else. In the middle of the worst debt crisis tance." in Thero-America in six years, Shultz's insistence that over­ Indeed, State Department spokesman Phyllis Oakleyhad throwing the Sandinistas is the key to solving the region's cautioned reporters just a few days before, that reports of problems, borders on the absurd. U. S. discussions with Peru on new military agreements to By the time he reached Uruguay on Aug. 4, Shultz de­ replace Peru'sdependence on Russian military equipment, claredthat except for Nicaragua (which he called "a cancer" were exaggerated. U.S. military aid to Peru totals $400,000 which the U.S. will "do everything we can to stop from this year, and is limited to training programs, Oakley stated. growing"), "as far as Central America is concerned, the pol­ This, from this same State Department crew that demands icies of the United States are strongand basically successful." incessantly that the Congress fork over millions to prop up Perhaps the first time U. S. policy toward Central America the Nicaraguan Contras-a drug-running mercenary army has been declared"successf ul" in any respect. Shultz asserted whose operations for years have provided the Sandinistas thatthe CentralAmerican democracies "are experiencingreal with their biggest domestic support! growth in theireconomi es," a remarkable description indeed of the starvation, drugs, and terrorism that CentralAmeric a's A matter of sovereignty governments are battling. Shultz's first stop, Guatemala City, was planned to give For eight years, the Sandinista bullies have provided the the secretary of state the ammunition he needed to get the Reagan administrationwith a useful foil for theUnited States' South American nations to line up behind the new anti-Nic­ failure to adopt even the semblance of a strategy of aid to aragua blitz. Here, a meeting was set with the foreign min­ alliesin theregion to defend themselves from Soviet irregular isters of Guatemala, EI Salvador, Honduras, and Costa Rica, warfare . While Washington scuttlebutt is that President Rea­ out of which Shultz hoped to form a new U. S. -CentralAmer­ gan is toying with the idea of a late-hour war against Nica­ ican consultative mechanism which would end the Central ragua, Shultz's renewed attacks on Nicaragua have another American initiative known as Esquipulpas II, launched in aim. 1987 by Costa Rican President Oscar Arias. Nicaragua is not what worries the U. S. Establishment The Central American initiative was never based on a today, but rather Panama. Panama's gritty refusal to submit strategy which could seriously take on the region's problems, to the U.S.-Soviet condominium has set off the biggest ex­ except in one feature: its statement that Central Americans plosion of nationalist resistance in Thero-America against should take the lead in resolving the problems of Central internationalfinancial cartels since the 1950s. Any dramatic America, and not some East-West condominium. That sim­ show of force being prepared against Nicaraguatoday , seeks ple statement of sovereignty, is what Shultz's "consultative to provide cover for military action against the nation both mechanism" sought to eliminate. Moscow and Washington have been unable to subdue: Pan­ If the Central Americans agreed to that, then the Conta­ ama. dora and Support Group, Thero-America's first step to form-

50 International EIR August 19, 1988 ing an independent diplomatic group, would, de facto, be ruled out of the Central American equation. Shultz had sent down Special Ambassador to Central America Morris Busby, as an advance envoy, with instruc­ tions to get the Central Americans behind the plan. Busby offered everything from money to threats . His bullying pro­ voked an angry backlash fromCentral American leaders who disliked being ordered around like the proverbial banana repUblic. When he landed in Guatemala, Shultz was greeted by a full-page advertisement taken out by the ruling Christian Democratic Party. It denounced "growing pressures exer­ cised in recent days by representatives of the U.S. govern­ ment on the highest authorities of our government," includ­ ing "veiled threats of economic reprisals aimed at forcing our country to join a common front to isolate and condemn Nic­ aragua." Edmond Mulet, vice president of the Foreign Affairs Committee in Guatemala's Congress, named Ambassador Busby as the officialwho had threatened Guatemala one week before. Busby had brought a draft document with him which he demanded all the foreign ministers sign, Mulet said. If they signed, he promised the U.S. would pay part of the Guatemalan foreign debt, stabilize its currency, and give the Guatemalan military spare parts and more training. Guatemalan officials told Busby his document was "a virtual declaration of war by the Central Americancountries against Nicaragua," and they would not sign-unless it were modified. Then Busby threatened that "if Guatemala did not sign it, just as he had presented it, the consequences would not be good for the country," Mulet charged. Busby's warnings hark back to Adm. John Poindexter's now-famous December 1985 warning to Panama's Gen. Manuel Noriega, that he would "pay the consequences" for refusing to allow Panama to be used as a staging base for a U.S. invasion of Nicaragua. Costa Rica also refused to sign the Shultz-Busby docu­ ment, charging that to do so, would be to hand over to Wash­ ington the right to decide Central America's future . "If we sign this statement . . . we would be losing our indepen­ dence," a Costa Rican official exclaimed. Honduras and EI Salvador sided with Shultz in the dispute, but EI Salvador's Foreign Minister Ricardo Acevedo had no qualms in admit­ ting why: We're interested in signing "in order to receive substantial economic aid," he told one news service. Shultz was forced to accept a modified document, which set up no consultative mechanisms, and granted no special rights to the United States to decide policy. Signs that Guatemala is already beginning to feel "the consequences" Busby threatened have already appeared. A new plot for a military coup was uncovered on Aug. 5. Guatemala also faces tough wrangling with the International Monetary Fund, which is demanding austerity measures guaranteed to make the governmentvery unpopUlar.

EIR August 19, 1988 International 51 Mghan deal is destabilizing the entire subcontinent by Linda de Hoyos

Under the headline of "Peace Breaks Out," the liberal press opinion of the Soviet side, it differs fron Tsagolov's stand­ in the United States has been heralding the "New Yalta" point. We hold that the People's Democratic Party of Af­ regional deals now in the process of negotiation among ghanistan has good positions in its country, steers the right Washington, Moscow, and in part, Beijing. The first such course that meets the interests of the people, and has every regional settlement was Afghanistan. But far from bringing chance to continue working confidentlytoward attaining peace peace, the Afghanistandeal reached with the Geneva accords and national reconciliation of the Afghans. We are convinced of April 14, by which the Soviet Union agreed to withdraw that this line will triumph in Afghanistan." its troops in return for a full halt of aid to the Afghan muja­ The following day, Krasnaya Zvezda carriedan interview hideen, has proven to be a failure on all counts in regards to with Col. Gen. V.A. Vostrov, who did a long tour in Af­ Afghanistan. Furthermore , the escalating instability center­ ghanistan as chief military adviser. Asked to give his opinion ing around Afghanistan has placed new pressures on adjacent of Tsagolov's interview, Vostrov retorted, "I cannot share nations, primarily Pakistan and India. the assessment made of it in the aforesaid interview. I think The pact has not brought peace to Afghanistan. Instead, that Maj . Gen. K. Tsagolov formed this view back in 198 1- Afghanistan faces a likely protractedperiod of civil war, as 84, when he was adviser at an Afghan military college. Nor all factions scramble, politically and militarily, to fill the were his views changed by his stay in Afghanistan in 1987, apparent vacuum leftby Moscow's withdrawal. a stay that was short. Yet, enormous changes have taken Even the Soviets are divided among themselves on how place there. I also believe that the depth of K. Tsagolov's to approach Afghanistan. In an interview with the weekly perception of everything happening in the country was af­ Ogonyok, Soviet Maj. Gen. Kim Tsagolov, who is an asso­ fected by the relatively limited framework of his service in ciate of Foreign Minister Eduard Shevardnadze, demanded Afghanistan. " that Kabul's policy be focused on coalition talks with "the For the moment, it would appear that the latter line has leaders of the armed resistance in various regions" of Af­ prevailed, as Japan's Kyodo news agency and other press ghanistan, and a policy of playing upon the differences be­ sources report that the Soviets are preparing a counterof­ tween the seven resistance parties based in Pakistan, and "the fensive against mujahideen positions close to Kabul, which field commanders" of the resistance "inside Afghanistan." has been steadily pounded by rebel rocket attacks. Realizing Tsagolov, now head of the Marxism-Leninism Department the Afghan army alone cannot dislodge the mujahideen, the of Faculty at the Frunze Military Academy, predicted pro­ Soviets are stepping in with a sweep out of Kabul to the longed internecine warfareamong various opposition groups Qarghah Lake area. Krasnaya Zvezda also reports that the in Afghanistan, whether or not the Kabul regime survives a Soviets have formed "Red Guards" to defend Kabul. Intelli­ Soviet pullout. gence sources reportthat although the Soviets are withdraw­ Tsagolov proposes that in the medium term, the Soviet ing their troops, they are leaving behind a major contingent Union be prepared to play the "Islamic card" in Afghanistan, of special forces. as he writes that he expects the Soviet withdrawal "for a certain time" will result in the "activation of the Islamic factor Mujahideen rivalries . . . not only in Afghanistan . . . but in all of Islam." The The disarray in the Soviet camp is more than matched by problem with Soviet policy in Afghanistan, he said, is that factional strife within the muj ahideen themselves. On Aug. the Afghan party "never managed to make Islam its ally. . . . 8, a group of resistance commanders, including the famous We can expect a hardening of Islamic determination in con­ Ahmat Shah Massoud, declared that only mujahideen unity nection with the notion of Islamic revolution." can defeat Moscow. Territory can only be captured, their However, Tsagolov has been publicly countered by Va­ statement read, "if allgroups are collected into an army so as dim Perfilyev, deputy head of the Foreign Ministry Infor­ to facilitate logistics, planning, and expansion." The group, mation Directorate, who replied to the Soviet news agency organized into the Supervisory Council of the North, under TASS Aug. 2 to questions on Tsagolov's perspective with an the leadership of Massoud, charged that the fundamentalist arch-defense of the Kabul puppet-government: "As for the party Hezb-i-Islarni, headed by Gulbuddin Hekmatyar, is

52 International EIR August 19, 1988 blocking theiranns supply. as "baseless," explaining that although Pakistanwas not ann­ The two groups are also split over whether to attack ing the mujahideen, it had never ceased its "sympathies" with withdrawing Soviet troops. From Pakistan, Burhanuddin thereb el. Rabbani, head of the Jamati -i-Islami, who is allied with Mas­ His response was in turn answered by an Aug. 8 dual soud, called upon guerrillas to show restraint toward the statement fromKabul and Moscow issued at the endof Shev­ Soviets to avert any delay in the Soviet withdrawal. On this ardnadze's visit. Charging Pakistan with "crude violations" issue, Rabbani is allied with both Massoud and two other of the Geneva accord, the statement said that Kabul and Pakistani-based resistanceleaders , Y ounis Khales and Abdul Moscow had to "draw appropriate conclusions" and would Rasul Sayyaf. Hekmatyar, however, is demanding that the be forced to "define their actions in case the interference in mujahideen take advantage of the withdrawal to press for­ the internal affairs of Afghanistan is not ceased." The state­ ward militarily. ment demanded that the United States act to enforce the Massoud might claim to have authority to shape the po­ Geneva accords and rein in Pakistan. litical and military policy of a mujahideen force. He claims Behind the words is an escalation of attacks on Pakistani to control 10 out of 31 Afghan provinces, and his moral territory. On Aug. 1, there were 27 people killed and 25 authority is enhanced by the fact that he has fought within injured when Afghan jets bombed the Pakistani border town Afghanistan, rather than basing his efforts from Pakistan. of Baghar. This is the worst attack on Pakistani border areas However, no muj ahideen forces have been able to seize any since the Geneva accord was signed, but it is not an isolated provincial cities, even as theSoviet troopswithdraw . Reports incident. On Aug. 6, a Soviet bomber was shot down over emerged Aug. 12 that the mujahideen had taken back the Pakistani airspace, according to BBC. In the last two months, provincial capital of Kundez province, but the official Bakh­ the Pakistan government charges, Soviet or Afghan forces tarAfghan news agency said that theAfghan annyfor ces had have violated Pakistani airspace 120 times. taken back the city after infiltration by rebels. The mujahi­ Pakistanisovereignty is also under attack. One design for deen may also be closing in on the southerncity of Kandahar. the Soviet withdrawal is the division of Afghanistan into at Press reports say the Afghan anny controls only the inner­ least two sections. The north would be annexed directly by most of the four security belts around the city. Most residents the U.S.S.R. The southern half would fall into the hands of of the city have fled the fighting; 85% of the city's homes Islamic fundamentalist muj ahideen (which could be played have been destroyed or badly damaged. as Tsagolov sees it), or be divided along ethnic lines. This In summary: The withdrawal of Soviet troops-50,OOO design immediately impinges upon Pakistan. The Baluchs supposedly by Aug. 15-has not abated the level of violence and the Pushtoons, for example, are twotribes which straddle within Afghanistan itself at all. The fighting in the country the Afghan-Pakistan border. The party of Abdul WaH Khan prohibits thepro jected next step in the agreement-thereturn in the Northwest FrontierProvince has known loyalties to the of 3 million Afghan refugeesto their homeland. Kabul government. Representatives of this party claim that the Durand Line, devised by the British to divide Afghanistan Pressure on Pakistan from India, should include the entirety of the Northwest However, while the April 14 accords have not decreased Frontier Province and part of Baluchistan. the civil war levels in Afghanistan, they have acted to vir­ Pakistan is seeking partners for its defense. In Washing­ tually hand the Soviet Union a carte blanche to increase ton, Pakistan is asking for an immediate upgrade of U.S. pressure on Pakistan. By signing the Geneva accords, Paki­ military equipment, particularly to counter Soviet and Af­ stan is forbidden to continue militarily supplying the muja­ ghan air incursions. On Aug. 6, Foreign Minister Yaqub hideen, as it has done since 1979. Official arming of the Khan met with his Iranian counterpart,Ali Akbar Velayati, rebelsis , however, not necessary, since Peshawar,provincial at the United Nations in New York. Aside from possibly capital of the Northwest Frontier Province along the Afghan carrying messages to Velayati fromSecretary of State George border, is a virtual anns bazaar. Anything and everything is Shultz, Khan discussed the Afghan war with Velayati. Re­ available; all that's needed is cash. ports are accumulating that, with U.S. and British backing, On Aug. 1, Pakistani Foreign Minister Yaqub Khan went Pakistan will seek to create an alliance thatincludes Iranand to Moscow to reassure Soviet leaders and mend fences. The China. Since theaccor ds, Sino-Pakistani relations have tight­ visit doesnot seem to have hadlasting effect. Four days later, ened, especially in the military sphere. Pakistan is currently

Soviet Foreign Minister Shevardnadze, who had charged negotiating the purchase of submarines from China , and China Pakistanwith aiding "internationalterrori sm," paid a surprise sent an unspecified number of F-7P planes to Pakistan on visit to Kabul, where he threatened that Pakistan will bear July 26. responsibility for continued arming of the mujahideen. The Such deals have been uneasily noted in New Delhi. For Soviets, he said, will "find means" to counter Pakistan's sure, theincreasing militarization of theregion does not bode material support for the rebels. well for the future of peace-despite the platitudes of Mos­ On Aug. 6, Pakistan's Khan dismissed the Soviet claims cow and Washington.

EIR August 19, 1988 International 53 Budget Minister who designed De la Madrid's austerity pro­ gram, he was, if anything, most unpopular everywhere in the country.

Will the PRI fragment? At the end of his 15-state tour, Cardenas brought out 30,000 supporters in Sonora and Baja California Norte. As he made his whistle-stop "in defense of the vote," more signs Mexico approaches appearedof the PRI fragmenting over "Cardenism." Starting Sept. 1, the newly elected Congress should make constitutional crisis its sovereign decision on the presidential elections. It is now estimated that the PRI will have only a 10-delegate advantage by Hugo LOpezOchoa over the opposition. On Aug. 2, the PRI warned it would take reprisals against any of its deputies who absented them­ selves fromthe congressional sessions, "because any absence Cuauhtemoc Cardenas, the presidential candidate of the Na­ will be taken advantage of by the opposition, which at any tional Democratic Front (FDN), warnedAug . 4 that the July moment could become the majority." 6 Mexican "elections will have to be annulled and new ones The PRI's fear is well founded. A few days later, a PRI held," if President Miguel de la Madrid's government does candidate for federal deputy in the state of Tabasco, re­ not show signs of "repairing the irregularities committed," nounced the PRI and went over to Cardenas's FDN the mo­ and "because it is impossible to clearly establish the results. " ment he had in his hands the papers certifying his victory. He wrote this in a document co-signed with National Despite all, President de la Madrid showed his total dis­ Action Party (PAN) candidate Manuel J. Clouthier and Rev­ dain for the will of Mexico's majority Aug. 4 by assuring olutionary Party of the Workers (PRT) candidate Rosario Mexico's creditors that "I understand" moratorium on the Ibarrade Piedra. foreign debt "as an opposition party electoral tactical argu­ The government declaredruling Institutional Revolution­ ment, not one by responsible persons." ary Party (PRI) candidate Carlos Salinas de Gortari "Presi­ Well-informed sources have informed EIR that PRI can­ dent-elect." But, new evidence of vote fraud presented in didate Salinas began a freneticseries of meetings with various early August by Cardenas himself, threatens to unleash an factions of his partyto ward off mass desertions. Inbackroom unprecedented constitutional crisis. meetings with these sectors , Salinas confessed that he knew On Aug. 4, Cardenas revealed in a meeting of his sup­ Cardenas had won much popularity and undeniable electoral porters in Ciudad Obreg6n, Sonora, that in a count of the triumphs. "I want to negotiate," he said. At the same time, 29,000 voting booths for which the Federal Electoral Com­ however, he warned, "I will not take power in a debilitated mission had announced detailed vote breakdowns, his presi­ position." dential triumph was indicated. In those booths, which con­ On Aug. 10, the PRI's national directorate expressed its tained 54% of the national vote, Cardenas received 40% , "most energetic rejection" of the three opposition parties' while Salinas only achieved 34%. The monetarist PAN got document about annulling the elections. It accused them of 22%. "political adventurism," of trying to "override the juridical Such results are due basically to Cardenas basing his order," of "provocation and lust to disturb the public order. " presidential campaign on a nationalist economic recovery A few days earlier, PRI President Jorge de la Vega Dom­ program, focused around a debt moratorium to force credi­ inguez crudely charged that Cardenas would be to blame tors to negotiate better terms. should violence erupt. "Those were fighting words," Diario In Ciudad Obreg6n, Cardenas accused Government Sec­ de Mexico columnist Arturo Blancas wrote. retary Manuel Bartlett of having abruptly suspended thecount "We are not going into flightforward with actions which of the 25,000 booths which had not been tallied and holding serve as a pretext for the government to repress or destroy them to "alter" returns . what we are creating," Cardenas told his partisans in Navo­ The Federal Electoral Commission "officially" granted joa, Sonora Aug. 6. In the town of Empalme, he said, "We 50.3% of the vote to Salinas, 31 % to Cardenas , and 17% to are notin a battlefor numbers, but for policies, until Mexico the PAN . To preserve these figures, Cardenas explained, in has a legitimate government." the 25,000remaining booths, Salinas "would have to obtain On Aug. 10, all opposition party delegates walked out of 67%, Cardenas 20%, and the PAN 11%." That is to say, a a Federal Electoral Commission session after the PRI and total reversal of the tendencies shown in the previous recount! government delegates rej ected most challenges. They warned Moreover, it is known that Salinas does not enjoy a 67% level they would not return "until there are serious, honest, and of support anywhere in the country . As the Planning and responsiblepeople to work with."

54 International EIR August 19, 1988 Dateline Mexico by Hector Apolinar

Stock market fraud 560 billion pesos, 170 times more. In The fraudof the century burnsPresident de la Madrid' s fingers 1987, the government "sold" to the former bank owners the brokerages and threatens a group of ex-bankers . owned by the banks which were na­ tionalized in 1982. Pressureis building up for the Mex­ Commission had found that at least The government also changed the ican government to severely punish five violations of the country's secu­ banking law to prohibit the national­ the ownersof the stockbrokerages who rities law had been committed by Op­ ized banks from operating broker­ were involved in the mammoth Octo­ eradora de Bolsa. It obliged clients to ages, to leave the sector to the "free" ber 1987 financial fraud. More than buy stocks they did not want; it made market. The governmentused the bro­ 180,000 small, medillm, and large bridge loans not authorized by the kerages to massively run up its debt investors lost more than $20 billion, clients,etc . by marketing its financial instru­ which "evaporated" during Mexico's There are two more major broker­ ments, which were manipulatedby the October stock market crash. ages which have been brought to court: brokerages at their pleasure. The bro­ On Aug. 9, the General Prosecu­ Inverlat andProbu rsa.The first is owed kers, not the government, set interest tor's Office issued subpoenas for sev­ by Agustin Legorreta Chauvet, first rates. Mexico's internal public debt eral individuals to appear before an cousin of Eduardo and current presi­ thus fell into the hands of powerful investigating magistrate. It sum­ dent of the Business Coordinating private groups likethe Legorretas, who moned Lorenzo Pe6n Escalante, who Council, the country's most powerful used it to gain immense political le­ was president of the National Securi­ business clique. Inverlat's managing verage over the country's resources. ties Commission at the time of the director is Manuel Somoza Alonso, This situation had been created fraud, the commission's current pres­ who was the president of the Mexican since 1985 by Finance Minister Gus­ ident, Patricio Ayala Gonzalez, and Stock Marketwhen the October fraud tavo Petriciolli, who was considered Eduardo LegorretaChauvet, owner of took place. the architect of the stock market and Operadora de Bolsa, the country's In their ardor to quash the charges, of its fantastic 1987 "miracle boom." second biggest brokerage firm. They the stock brokers are approaching Petriciolli's right-hand man in this was were summoned to respond to accu­ gangsterism. The daily La Jornadare­ his chief adviser, Hugo Garcia Blake, sations of crimal misconduct pre­ ported July 25 that one of those going until 1985 vice president of Casa de sented by Cesar Fontanes Mendez and to court against Inverlat was threat­ Bolsa Mexicana de Inversiones y Va­ Antonio Sanchez Ancira, the lawyers ened with being sent to jail if he did lores. This brokerage's president, Is­ for a largenumber of defraudedinves­ not separatehimself fromthe suit. The idoroRodriguez Ruiz , was accused in tors , who are demanding more than suit was for Inverlat' s having invested 1985 of receiving illegal loans from $1.2 billion in damages. theclien t's money without theclient 's then-Pemex director Mario Ram6n The October fraud has become a permission in low-yield stocks. Beteta with which to buy ships for "hot potato" for President Miguel de The market fraud and crash were transporting Mexican oil. Rodriguez la Madrid's government, since senior caused by unchecked speculation en­ recently "donated" a fleet of trucks and administration officials are implicat­ couraged by the government in order cars to Salinas's presidential cam­ ed. Even the manner in which Carlos to attract flight capital back into the paign. Salinas de Gortari won the Institution­ country to play the "market casino." Manuel Somoza, another person al Revolutionary Party's presidential It was also agreed that the market implicated, worked with Petriciolli nomination has become part of the would be leftin thehands of Mexico's when he was director of the state's scandal. top capitalists "as payment" for their development bank, Nacional Finan­ Although the charges against the supporting Salinas-at least, this is ciera. Somoza was "lent" to Petriciolli brokerages have been aired for more what is heard in the highest political by Agustin Legorreta, for whom he . than six months, with abundant evi­ circles. had worked since his youth at the Ban­ dence, not a single person has been That is quite true . In 1982, the co Nacional de Mexico. Legorreta formally charged with criminal acts. stock market's total share value was 3 managed that bank as a front for the On July 18, the daily La Jornada re­ billion pesos. In 1986, it reached 135 Swiss Neuflize-Schlumberger inter­ ported that the National Securities billion pesos. By July of 1987 it had ests.

EIR August 19, 1988 International 55 Report from BODD by RainerApe}

No future for Germany's coal sector? European Commission's policy, there The "Europe 1992 " deregulation plans are going to end German is no hope for steel or mining workers in the Ruhr to find a new job in their coal mining, once andfo r all. area of expertise. A specialpropaganda campaign by In late July, a letter arrived at the deutschemarks in 1987, through a the European Commission and related offices of the European Commission special "coal penny" tax surcharge on think tanks has penetrated the man­ in Brussels, Belgium, attacking the electricity prices. Designed to bridge agement layers of German industry, system of state subsidies to coal in the gap between dumping-priced im­ alleging that coal from national pro­ Germany as "incompatible with the ported coal and German coal, the tax duction could be more easily replaced freemarket principles of the European should have been raised long ago, but by cheap coal imported from abroad, Community. " it wasn't. The government in Bonn under the "1992" deregulation. The letter, sent by the French gov­ thinks that "coal is out anyway. " Neighboring France also made a spe­ ernment, said in a threatening tone, Thirty-two coal mines are left in cialoffer to Germany, to supply elec­ "It is the French view that the Com­ Germany, 23 of these operated by the tricityfrom French nuclearpower sta­ mission is obliged to impose the Com­ state-owned Ruhr Coal Corporation, tions in the 199Os. The supply, the munity's laws upon Germany ." which employs 104,000 miners who French stated, would be at preferential The European Commission acted are producing 74 million tons of coal prices, on the condition that the Ger­ promptly, notified the government in annually . Two years ago, 132,000 mans drop plans for construction of Bonn of the French protest, and urged miners worked at RuhrCoal , and there new nuclearpower plants. This vision the Germans to "remove obstacles to are new plans to phase out another has gained some popularity among in­ deregulation in time ," inorder to avoid 24,000 until the end of 1993. dustrialists who are fed up with the "conflicts with the new rules which This process of drastic shrinkage eternal ecology quarrels in German will be implemented in 1992." has led to soaring jobless rates in all politics. Both documents, the French one of the traditionalmining centers of the But apparently, the French are not and the one from Brussels, give an Ruhr, far beyondthe national average content with the pace of the energy accurate foretaste of what is going to in the Federal Republic. The best-sit­ debate in Germany, hence the letter to happen on a much broader scale after uated of these mining cities is Hagen, the European Commission, request­ the constitution of the planned "single with a jobless rateof "only" 12.5% at ing that "adjustment procedures in the European market." If adopted, the the endof July. The othercities, Hamm energy sector" be accelerated. "Europe 1992" system will overrule (14.0%), Recklinghausen (14.5%), The policy is also advocated by national sovereignty by decrees from Oberhausen and Essen (16.2% each), prominent figures in German politics, Brussels. Imposing "Community laws Gelsenkirchen (16.5%), Bochum notably by theChristian Democratic upon Germany" on coal, would render (17.0)%, Dortmund, and Duisburg prime minister of the state of Baden­ the capital-intensive coal-mining sec­ (17.4% each), are in the same situa­ Wiirttemberg , Lothar Spath, who has tor here noncompetitive. tion as the declining coal-mining re­ stated his sympathy for the French of­ The decline of steel production, gions of Britain and the Lorraine in fer. There is "no need for more nuclear and the ecologist boycott of nuclear France. Industrial unemployment has power plants," says Spath, who has power and of carbo-chemical indus­ "settleddown" there, the experts say, stated privately that there is "no need triesin Germany, have caused a sharp and the phenomenon of workers who for coal, either." drop in coal production over the past have beenwithout a job for more than A program is already being pre­ 10-12 years . In anticipation of grow­ two years, has become very common pared in Brussels, to stop all construc­ ing difficultiesin obtainingpermits in now. tion of new nuclear power plants in the future, coal mining in Germany The problemsare increasedby the Europe in themid- 1990s, and disman­ has grown over-dependent on its ex­ propaganda for"Europe 1992," which tle all plants still operating. This pro­ clusive contract with the public utili­ is designed as a Europe of "sunrise" gram won't stop at the gates of ties. They take half of the coal at guar­ industries, with the "sunset" sectors France's plants. French politicians had anteed subsidized prices. like steel, coal, construction, and ship­ betterrecognize that in time: Their en­ The contract, which will expire in building slated for dismantling. emy is not German coal, it's the Eu­ 1995 , was subsidized by 5 billion Within the framework set by the ropean Commission in Brussels.

56 International EIR August 19, 1988 Northern Flank by Goran Haglund

Sweden subverts its secret service with other Western intelligence ser­ A chie/target o/ the illegal "Palme investigation" o/ the Swedish vices in exposing a number of Soviet spies that is so repugnant to Andersson governmentwas its own secret police. and the Social Democratic appeasers. Each new spy scandal plastered across thepages of theSwedish press,in spite of desperate efforts by the foreign ministry to keep each incident secret, Testimony delivered at the recent who was in charge of counterespion­ means another setback and delay in hearings of the Swedish Parliament's age, as a "cold warrior." the process of deliveringa defenseless Constitutional Committee fully con­ "It was a deliberate campaign Sweden to the Russian bear. firms EIR's charges that the illegal aimed at . . . paving the way for far­ On the very day of Romander and "Palme murder investigation," run by reaching changes within sAPo,"Ro­ Hj aIrnroth's testimony, the big front­ homosexual insider Ebbe Carlsson on mander said in the hearings. "There page news of Svenska Dagbladet read, behalf of the Social Democratic re­ has been an enormous campaign in "Foreign Ministry Allowed New KGB gime, have had next to nothing to do Arbetet, which we regard as the open­ Chief into the Country." The story re­ with tracking the killer of the late pre­ ing of the Ebbe Carlsson affair .... ferred to an heretofore unpublicized mier, but everything to do with run­ This is extraordinarily serious and incident last fall, when the sApo had ning errands for Soviet intelligence­ outrageous." In direct reference to warned the government not to grant a even to the point of massively sub­ Andersson, Romander said, "One visa toone Igor LeonidNikiforov , who vertingSweden 's officialSecurity Po­ must not issue statements that one has applied for accreditationas a new con­ lice, sAPo. no confidence in the Security Police, sul at the Soviet embassy in Stock­ Both retired National Police Chief but rather tryto create confidence. The holm. Holger Romander and former sApo foreign minister's statement has been The reason for sApo's emphatic Chief Sven-Ake Hj aIrnroth, who tes­ the gravest thing in this campaign, as recommendation to the government tified on Aug. 3 in the televised hear­ his statements are noted abroad." not to let Nikiforov set foot on Swed­ ings, supported the July 28 testimony Concerningthe alleged right-wing ish soil was that Nikiforov was known of sApo's former number-two man bias of sAPo,Romander pointed out to have been appointed new KGB sta­ and chief of operations, P.G. Nass. In that there is only one political associ­ tion chief in Sweden, to succeed the his testimony, Nass said the damage ation within the Security Police: "It is former resident, Nikolai Seliverstov. done to sApo by Ebbe Carlsson and SocialDemocratic ." The foreign min­ The KGB resident is the chief KGB cohorts could not have been worse, ister was a featured speakerat its an­ official in a country and, in the case of had it been carried out by a foreign nual meeting. Romander wrapped up Sweden, has some 100 Russian intel­ secret service hostile to Sweden. (See his testimony, "What has occurred is ligence agents at his disposal, work­ EIR , Aug. 12, 1988.) Romander not­ of utmost importance for the Swedish ing under cover as embassy or consu­ ed that Foreign Minister Sten Anders­ security service, and thereby for one late officials, trade office representa­ son and sections of the Social Demo­ partof the total Swedish defense." tives, employees of the news agencies cratic Party , notably its daily Arbetet, Former sApo chief HjaIrnroth Novosti or Tass, the airline Aeroftot, have run a deliberate campaign against added, "A number of people like to the travel agency Intourist, etc., plus sAPo. criticize the security service, saying, unknown numbers of traitors within Among other incidents, Anders­ true, you have pinned down a number the Swedish political parties, media, son, in an interview published this of foreign spies, but that was done and administration. summer in theweekly Tempus, stated, with assistance from other secret ser­ At least one other Westerncountry "sApo's activity fills me with repug­ vices. That's precisely the point. In­ had refused Nikiforov accreditation, nance ... I can't make sense of formation is not forthcoming by itself on the basis of his known credentials sAPo." Arbetet, whose editor is mar­ from other secret services. The pre­ as a spy, but Foreign Minister Anders­ ried to Andersson's press secretary, conditions and confidencemust bees­ son, upon learning of those creden­ has run a vitriolic series of articlestar­ tablished. " tials from sApo, decided to welcome geting sApo, and denouncing Nass, Indeed, it is sApo's cooperation him to Sweden!

EIR August 19, 1988 International 57 From New Delhi by Susan Maitra

Portents for the partyless poll who threatened their status in the General Zia' s election procedure will only fa n Pakistan's province. Press reports from Pakistan indi­ fragmentation into fe uding tribal, ethnic, and religious sectors. cate that the "Mohajir Community Movement" has already supplanted the mainstream national political par­ ties-the Jamaat-i- Islami, Pakistan In July, Pakistani President Zia ul­ istan" card against its neighbor. People's Party, and Muslim League­ Haq announced thatthe Nov. 16 elec­ Spokesmen for the Tehrik-e-Is­ among the urban populations of Ka­ tions for national and state assemblies tiqlal, a generallypro-American party rachi and Hyderabad. would be held on a non-party basis. headed by retired AirMarshal Asghar Sindhi "nationalists," celebrated While a new ordinance spelling out Khan, have charged that the 1985 in the Jiye Sind movement of G.M. the rules and regulations for cam­ round of non-party elections showed Syed for the separation of Sind prov­ paigning is now being drafted, it is a number of ethnic groups campaign­ ince from the rest of Pakistan, have generally understood that, as in the ing for their candidates, and that new gotten a fresh boost in the process. 1985 election where the "partyless ethnic groupings were cropping up in Syed's "Sind National Alliance" now poll" was pioneered, candidates will anticipation of thissystem. includes a number of prominent na­ stand for office as individuals, not as Unless the non-party election tional figures, such as the caretaker representatives of a party. The parties practice is stopped, they insist, the chief minister of Sind. are free to assist individuals in cam­ country will be divided by ethnic hos­ In the Northwest Frontier Prov­ paigning, but the governmentwill not tilities. ince, the Pakthoon tribal-based party beformed on a party basis. This view was echoed by Qazi of Wali Khan is alive and well, and in According to General Zia, who Hussain Ahmed, head of the Jamaat­ Baluchistan, thecountry's most back­ dismissed the previous government i-Islami, thepro-Saudi party dominat­ ward province, the population by all for , among otherthings, failure topush ed by orthodox Sunnis. The Jamaat accounts retains its allegiance to tribal for the country's Islamization, politi­ chief told a meeting in Quetta, Balu­ affiliations. Some Pakistani commen­ calparties have no place in an Islamic chistan, that Pakistan was being tators assert that, in fact, tribalism state. pushed into a situation of uncertainty rather than party loyalty continues to "There could only be two parties due to thedecision to hold nonpartisan dominate local body elections in Islam-the party of God and the elections, because it will further fan throughout the country. party of Satan," General Zia said. regionalism, ethnicism, and individ­ The fuss and fury over the recent Though all of the major political ualism. murder of Allama Arif Hussain al­ parties have announced their intention Indeed, the steady rise and influ­ Hussaini; head of the Shia party Teh­ to participate in the elections, there is ence of ethnic, ethno-religious, and rik-i-Nifaz-i-Fiqah-e-Jafria (TNFJ) a near unanimous rej ection of the tribal-basedpressure groups in the past (see International Intelligence), points "partyless poll" concept. While some 10 years since the 1977 imposition of to another aspect of the fragmentation of theflutter can be discounted as pos­ martial law is undeniable. Over the process: the emergence of highly pol­ turing, there is one concern which, past several years,with new pressures iticized, fundamentalist sectors of both interestingly, has been voiced almost from the directions of Iran and Af­ the Shia and Sunni variety . Just a year across the political spectrum, which ghanistan, this process has deepened ago, Hussaini, a follower of the Aya­ strikes a deeper chord. And that is the dramatically. tollah Khomeini, had transformed his charge that the practice of non-party The continuing bloody rioting in religious pressure group into a mili­ elections willfurther ethnic, tribal, and Karachi and other major cities of Sind tant political party. Shia-Sunni strife regional tensions that are already a province is just the tip of the iceberg. has emerged in a serious way since the clear and present danger to the future There, the Mohajirs (Indian Muslims recent riots in Gilgit, in Pakistan-oc­ of Pakistan. who chose to relocate to Pakistan at cupied Kashmir, that tookhundreds of It is a concern that is all the more the time of partition) dumped the gen­ lives. The Hussaini assassination, on compelling in the shadow of Afghan­ erally pro-government Muslim League the eve of the Muslim religious holi­ istan, where a desperate communist and organized their own group to bat­ dayMoh arram, will certainly fuelthis regimein Kabul flexes the "Pakthoon- tle Sindhis andthe Afghan immigrants fire.

58 International EIR August 19, 1988 Andean Report by Val erie Rush

Criminals or 'belligerents'? the country by 1992. Colombia's military wants total war on the drug mafia, but the According to the document, the FARC strategy is to seize control of government is considering a IIscorched surrender. " the eastern mountain range (one of three splitting Colombia top to bot­ tom) and the sparselypopulated East­ C olombia's political class is cur­ world, "tying the hands of the govern­ ern Plains beyond them, then to build rently in the throes of an insane debate ment and armed forces." Concluded up an army of 120,000 with the inten­ over whether to apply the Geneva El Espectador columnist Rodrigo tion of establishing a provisional guer­ Convention to the narco-terrorist Rivera Salazar, "For whom is former rilla government andisolating the cap­ plague that is ravaging that nation. President L6pez working this time?" ital city of Bogota. The plan would Former President Alfonso L6pez The Colombian military has ab­ utilize the hundreds of elected offi­ Michelsen, known as the political solutely rej ected any army participa­ cials of the ComdlUnist Party's front "godfather" of the cocaine-trafficking tion in the "peace dialogue" the narco­ group, the Patriotic Union, from Medellin Cartel, caused an instant guerrillas hope to rope the Barco gov­ around the country, as well as guerril­ sensation when, in a recent address to ernment into, and then warns that the las infiltrated into the military and po­ U. S. political scientists , he suggested guerrillas will use the "dialogue," as lice forces. that the Barco governmentwas foster­ in the past, to build up their forces and Tactics ranging from national ing serious confusion among the Co­ forge "independent terrorist repub­ strikes, kidnapings and assassina­ lombian population by waffling be­ lics" on Colombian territory . tions, car-bombings, and assaults on tween treating the guerrillas as "com­ Asked to comment on the L6pez isolated army patrols and barracks are mon criminals" and, alternately, as Michelsen proposal, Defense Minis­ detailed. In the event of failure , says wartime belligerents. ter Rafael Samudio Molina told the the document, the jungle and moun­ L6pez argued that when the Barco Congress Aug. 3, "Common crimes tain regions under guerrilla control government tacitly endorsed negotia­ like rebellion are definedclearly in the would offer the ideal protection for tions with the M-19 kidnapers of for­ penal code as punishable acts ." Min­ retreat, retrenchment, and permanent mer presidential candidate Alvaro ister Samudio had been summoned to guerrilla warfare . G6mez Hurtado to secure his release, appear before Congress to answer an As loud as the Armed Forces are what it did was "abandon their treat­ interrogation on the military's re­ talking , President Barco appears una­ ment as criminals, and grant them the sponse to the November 1985 narco­ ble-or unwilling-to listen. In a status of a military organization" in a terrorist seizure of Colombia's Justice presentation to a.military ceremony periodof civil warfare. He pointed out, Palace. The interrogators were coun­ celebrating the 169th anniversary of too, that the Colombian "Catholic seled by lawyer Juan Manuel L6pez the founding of the Colombian Army , Church itself offersto mediate among Caballero , son of Alfonso L6pez Barco said it was ''unacceptable'' to conflicting forces, granting equal Michelsen. place criminals and subversives on the treatment to the legitimate govern­ When, despite his Defense Min­ same plane . He said his government ment and to its subversive adversar­ istry's warnings, President Barco an­ would not renounce its policy of gen­ ies." L6pez personally urged such an nounced his willingness to meet with erosity, and argued for "national rec­ approach be adopted by the Colombi­ the self-appointed "commissioners" of onciliation" instead of "options that an government. the dialogue charade and discuss an limit us to a strategyof either scorched While numerous communist agenda for "pacification" of the coun­ earth or political surrender." mouthpieces around the countryleaped try-including possible safe-conduct President Barco is in for a rude to back L6pez's thesis, one newspaper for the guerrilla chieftains to attend surprise, however. Late reports arethat columnist hit the nailon the head when public "dialogue" sessions-the mil­ the "commissioners" of the so-called he observed Aug. 5 that the "provoc­ itary made public a document cap­ peace process the President now ap­ ative" former President would have tured in 1985 from the principal guer­ pears willing to embrace are urging the strictures of the international Ge­ rilla movement in the country , the inclusion of the country's murderous neva Convention imposed on Colom­ Moscow-run FARC , which elaborates drug-trafficking cartel in their dia­ bia's battle against the criminalunder- a well-defined plan to seize power in logue.

EEi Augum 19, 1988 International 59 International Intelligence

U.S.S.R. and other Soviet bloc countries Bavaria says kissing Soviets seen at are receiving scientific training and will be may transmit disease center of terrorism excellently equipped. Paul Leventhal of the Washington Insti­ tute for Nuclear Control, said that nuclear The West German state of Bavaria's new The ball is now in the Soviet court to prove terrorism is much more likely than people AIDS education pamphlet has caused a stir that they are serious when Mikhail Gorba­ think, since the commercialization of chem­ among the West German AIDS lobby, in­ chov denounces "terrorism in all its mani­ ical waste places on the markets quantities cluding Prof. MeinradKoch, the head of the fe stations," writes Yonah Alexander in the of plutonium which can be used for nuclear Federal Health Office in West Berlin. The Jerusalem Post of Aug. 4. She writes that bombs. Bavarian pamphlet reads, "Most probably over the recent years of American-Soviet one can get infected by contact of infected negotiations, there have remained "grey body fluids with humid mucous membranes areas" in East-West relations-Le., Soviet or miroscopic skin cuts . Because of this, one support for international terrorism. cannot exclude the possibility of getting in­ When Gorbachov assumed power in fected by a Frenchkiss ." 1985, it coincided with an unprecedented Sihanouk, Hun Sen join Koch has emphatically denied this pos­ terror wave internationally. Then, Gorba­ sibility. chov's push for treaty agreements led to an fo rces vs. Khmer Rouge Meanwhile, the West German states of apparent relaxation of tensions , including Bremen and North Rhine Westphaliaare of­ terrorism, she writes. Speaking at a refugee camp in Thailand mo­ fering drug addicts single-use syringes in But while Gorbachov has been in power, ments before British Prime Minister Mar­ dispensing machines, as an anti-AIDS mea­ Moscow has at the same time maintained a garetThatcher arrived, Prince Norodom Si­ sure. This is supported by Bavarian AIDS policyof "encouraging and supportingwide a hanouk of Kampuchea said Aug. 7 that he adviser Prof. Michael Koch, who believes range of terroristgrou ps, including religious would visit both London and Washington in this is important in the fight against AIDS. fundamentalists, as well as state sponsors of October for talks with Thatcher and Presi­ The state governmentof Bavaria has refused terrorism," like Iran and Libya. dent Reagan. He said that these meetings to respond to his call for a similar program. Alexander points to several objectives would be the precursor to the third round of of the Soviet use of terrorism: 1) influencing peace talks on Kampuchea scheduled to be neighboring countries; 2) returning "irre­ held in Paris the following month. dentist" territories to the Soviet orbit (for After her first meeting with Sihanouk, Pop e wiUnot go example, Kurdistan in eastern Turkey); 3) Mrs. Thatcher said that it was the British forcing non-communist states into Mos­ government's intention to tryto maintain the to South Africa cow's orbit (for example, Jordan); 4) split­ momentum that appears to be developing ting NATO; 5) destabilizing Europe; 6) toward a negotiated settlement in Kampu­ Pope John Paul II has rejected a formal in­ waging a secretwar against individuals con­ chea. vitation to visit South Africa, according to sidered by the Kremlin "mortal ennemies" Sihanouk also revealed that his military the Aug. 6 edition of A vvenire, a daily pub­ of communism and the U.S.S.R., like Pope forces and those of the Vietnamese-backed lished by the Milan Archdiocese . John Paul II. Kampuchean government of Hun Sen are It reported that the Pontiff had already Even as she wrote , Bernard Steward, a working in tandem against the return to rej ected an informal request to visit South U.S. Army colonel , was telling an interna­ power ofthe KhmerRouge , ostensible allies Africa made three weeks earlierby the gov­ tional congress on "The Future Orientation of Sihanouk's resistance forces, once the ernmentin Pretoria, on thegrounds that con­ of Terrorism" in Tel Aviv that more than Vietnamese have withdrawn. "There is al­ ditions were not appropriate at the time. 600 terrorists are being trained in the ready more than a de facto truce betweenus Avvenirenotes that in the Pope'srecent U.S.S.R. right now, according to a report and Hun Sen," Sihanouk said. "There is , in encyclical, Sollicitudo Rei Socialis, racism in the Milan daily II Giornale Aug . 5. The fact, cooperation between us. It is not just a is described asone of the worstcrimes against congress was attended by 21 experts from truce. We are now cooperating militarily." humanity . Israel, the U.S.A., and Canada. He noted that more and more units were The fact that South Africa's Botha gov­ Jossi Snir, an Israeli colonel, indicated joining his forces in fighting the Vietnamese ernment issued a formal invitation to the that terrorism will develop along the sea occupation, and that next year, he expected Pope, afterhe hadrejected the informal one, lanes, aimed against commercial shipping, to have more than 30,000 men "fully is interpreted as a deliberate slap against which is difficult to defend. Snir also said equipped with U.S. weapons ." John Paul II. that the terrorists being trained in the Sihanouk hedged on whether the United

60 International EIR August 19, 1988 Br1iejly

• THE LEADER of the militant States had already made a commitment to capitalism. . . . Cuba will never adopt cap­ Pakistani Shi'ite fundamentalist or­ supply weaponry, saying he could disclose italist methods, styles, philosophies, or ganization was shot dead in the early nothing because of the wishes of the U.S. idiosyncracies. " morning of Aug. 5 in Peshawar. administration. But he added that his 30,000 Castro also stated that Cuba was not re­ Sheikh Arif �ussain al-Hussaini, a men and the 40,000 underthe command of sponsible in any way for last year'soff en­ disciple of AyatollahKhomeini , was the Hun Sen regime, would togetherbe suf­ sive against UNITA in southern Angola attacked by a single man in front of ficientto cope with the 4O,OOO-strongKhmer which created "a difficultand critical situa­ his home. Dis1lirbances broke out in Rouge. tion." That offensive was ordered by the Karachi and Peshawar. Soviet Union, although Castro did not men­ tion the fact. • 150,000COLOMBIANS may be carriers of the HTL V -1 virus that causes tropical spastic paraparesia, Castro seems worried which paralyzes its victims. AIDS is caused by a related HTLV-3 virus. over 'New Ya lta ' Paraparesia produces a defense reac­ 'Debt, narcotics tion by the body which damages the Fidel Castro seems quite worried by the im­ spinal column. plications of the "New Yalta" superpower traffic linked' in Africa deals now recarving the map of the world • METROPOLITAN Filaret, the into respective spheres of influence-ifhis Inan incident typicalof a development which Russian Orthodox Church's foreign July 26 speech on the anniversary of the began in 1986, West Berlin drug detectives relations expert celebrated the Rus­ revolutionis any indication. detained a Nigerian who tried to smuggle sianChurch Millennium in Israel from He proclaimed, "If imperialism attacks heroin in snail shells in July 1988. West July 25 to Aug. 1, according to us, who is going to defend the island? No­ Berlin's drug squad chief, Gerhard Ulber, sources there. It was Filaret's second body will come from abroad to defend our said that the arrests of 16 people from Ni­ trip, both of them little publicized, island ....We must remember our loca­ geria, Ghana, and Ivory Coast over the past where he has probably been involved tion . . . that our people are responsible for threemonths highlighted a new trendof hard­ in high-level diplomacy between Is­ our country, and our party is responsiblefor drug smuggling from Africa via Schonefeld rael and the Soviet Union. our country, its policies, philosophy, and Airport outside East Berlin. The Nigerian defense .... had flown from Lagos to Sofia, Bulgaria, • THE NAZI former President of "We speak a frank and clear language" and then to East Berlin. In 1986, 20% of Panama Arnulfo Arias Madrid died with the Soviets, said Castro; no one should heroin seizures by British Customs came in Miami, Aug. 10 at 87. Arias, who think that there is "a breach between the from southwest Asia via Nigeria, 65% of was being pushed as the legitimate Cubans and the Soviets." That said, he then them Nigerians. opposition to Gen. Manuel Noriega launched into an attack on "imitators"­ Respondingto theproblem in April 1987 , by the State Departmentlast year, was those who would have Cuba imitate Gor­ former Nigerian head of state, Olusegun recruited to the Nazi Party by Adolf bachov's glasnost policy. Obasanjo, wrote a commentary in the Inter­ Hitler in the 1930s. In 1941, patriots "There are some who believe what is national Herald Tribune entitled, "Debt and threw him out after only 11 months being done in other places is what we must the NarcoticsTraffic Are Linked," pointing in office. beginto do rightaway . . . . Thatis the wrong out that "capital flight from Third World attitude ....If we had followed the plans countries-acrucial component of their debt • THE HEZBOLLAH, or Party of of others, we would not be meeting here problem-encourages the traffic in drugs, God, an Iranian front organization in today. . . . According to conventional the­ and would not be possible without the col­ Lebanon, is said to have "arrested" ory, this revolution could not have come lusion of Westerners and their banks." Abbas Zoreik, a leader of Islamic Ji­ about. . . . I would like to know what some Many Africancountries are actually ex­ had (Islamic Holy War), the organi­ of these cheap imitatorswould do in circum­ porters of capital. The IMF received $6.1 zation said to hold at least two Amer­ stances such as those that we faced on July billion more fromdeveloping countriesthan ican hostages. The report may indi­ 26 ....I feel such contempt for thosewho it loaned in the last 12 months, and in the cate that Iran is removing surrogates have a stout heartbut a weak mind and little last year, developing countries have paid and taking direct control of the hos­ will power, and who allow themselves to be commercial banks a net $10 billion. It is tages in preparation for negotiating cheated and carried away by illusions .... hardly surprisingthen, that drug trafficking theirrelease. We cannot use any methods that reek of via Africais on the increase.

EIR August 19, 1988 International 61 TIillNational

'Peace' deals shaped to lock U. S. into pro-Soviet posture

by NicholasF. Benton

The apparent "peace epidemic" breaking out all over the tation of U.N. Resolution 435, calling forthe withdrawalof world now, makes it clearthat progress between the United SouthAfrican forces fromNamibia and free elections in that States and Soviet Union on so-called "regional issues" at the country. This would be premised upon a withdrawal of all summits in Washington and Moscow was far more substan­ Cuban troops from Angola. tivethan anyone but this magazine reported. In the case of these negotiations, both the U. S. and Soviet A sudden outpouring of cooperation between Moscow governments appear ready to deal harsh blows to former and Washington on a host of regional conflicts-involving assets in the region. The Soviets, growing increasingly im­ Afghanistan, Angola, the Persian Gulf, Vietnam, and even patient with Cuba's Fidel Castro by the hour, are not only the Middle East-does not portend a more peaceful world. supporting the talks aimed at the withdrawalof Cuban troops On the contrary, it reflects a new phase in the operation of from Angola, but are also admonishing the MPLA to com­ common interests dominating both superpowers, known as mence negotiations with the National Union for the Total theTrust, toward a one-world fascist order. Independence of Angola (UNITA), the U.S.-backed force For the United States, this new era of collaboration be­ led by Gen. Jonas Savimbi which is engaged in a civil war tween the superpowers involves a fundamental shift in mili­ with the MPLA. tary strategicposture , which U. S. representatives of theTrust Washington, for its side, appears ready to drop its support expect the next President-be he George Bush or Michael for Savimbi the minute the Soviets signal thattheir estimated Dukakis-to implement. $1 billion per yearmilitary aid to theMPLA regimewill stop. The objective is to bring the entire globe under an iron­ Crocker said at the State DepartmentAug . 9 that the United fisted genocidal austerity regime, achieved by an unprece­ States would consider giving formal recognition to the MPLA dented collaboration between the superpowers to crush all government of Angola for the first time, if the Cuban troops regional resistance and expressions of national sovereignty. withdrew and the Soviet military aid stopped. He implied Thisnew phase includes moves by both superpowersto aban­ that this would not be conditional on any provisions for free don some of their own assets that functioned as proxies for elections withthe involvement of UNIT A. their interests in the past. The objective of both superpowers in this situation is In the case of Angola, for example, the United States and twofold: I) the weakening of the Republic of South Africa, Soviet Union are cooperating openly to bring the ruling to­ by removing its presence from Namibia anddepriving it of talitarian Popular Movement for the Liberation of Angola its mission as a bastion against Marxism in the region, and 2) (MPLA) into negotiations with Cuba-which has served as the elimination of strong, independent leadership in black a Soviet proxy to deploy over 50,000troops in Angola-and Africa, insofar as any rapprochement between the MPLA the Republic of South Africa. and UNIT A inside Angola would include the elimination of Following the first round of these tripartite talks in Ge­ Savimbi as a condition. Taken together, these two objectives neva Aug. 2-5, U.S. Assistant Secretary of State Chester weaken potential regional opposition to collaborativeexploi­ Crockerreported that all sides "appearready to bite the bul­ tation by the superpowers, who will be increasingly willing let" to reach an accord. The aim of these talks is implemen- to back up withmilitary force the genocidal austeritypolicies

62 National EER Augu� 19, 1988 of the International Monetary Fund and related usurious fi­ relatedinstitutions which aredriving the Third Worldand the nancial agencies. so-called "other great powerrivals" (Japan, Europe, and the This twofold objective in the Angola case serves as a newly industrialized nations of Asia) into the adversarial model ofwhat the new era of U. S.-Soviet regional coopera­ posture that he predicts . tion hopes to achieve everywhere. Among other things, it Nonetheless, he insists that the United States "will not be portends a new and more potent role for the United Nations able to depend upon its permanent treaty relationships to Security Council, which, based on the new era of U.S. -Soviet share its economic and military burdens," but will have to be regional cooperation, suddenly takes on the kind of clout it increasingly willing "to enter informal , untraditional part­ was intended to have, by those advocates of one-world gov­ nerships," adding, "Most prominent among these unholy ernment and malthusianism who originally set up the U.N. alliances will be a closing of ranks with unsavory national bureaucracy. A strengthened United Nations will supersede leaders as well as with the Soviets and their offerings of national interests to function as a global police force in its glasnost." own right. This requires the ability of the United States to "reallo­ In this mode, United Nations resolutions will begin to cate" its defense resources "to meet these emerging chal­ carry weight as enforceable international law, and United lenges," he adds. "The United States must determine the Nations peace-keepingfor ces, such as theone beingsent into military equipment it will need to fight little wars, surrepti­ the Gulf to monitor the Iran-Iraq ceasefire, will replace the tiously injecting small forces to meet defined political goals national forces of the United States and other nations in and subsequently extricating them. A whole new era of mil­ carrying out that enforcement function. itarythought and technology will arise. . . . Remaining en­ tirelywedded tothe technologies of large-scaleconventional Blueprintfrom the CSIS warfare and the strategic nuclear balance is not the answer." The nature of thisshift in U.S. strategic policyis spelled This policyproposes to tum the worlrl upside down. The out with startlingcandor in a newly published volume of the Soviet Union, historically the principal strategic adversary Leadership Choices/or the 1990s seriesby the Washington, of the United States, is now envisioned as an ally. The Third D.C.-based Center for Strategic and International Studies World and historical U.S. allies, including Japan and Eu­ (CSIS), entitled, "Meeting the Mavericks: Regional Chal­ rope, are now perceived as likely adversaries. It is advised lenges for the Next President." thatU . S. military doctrinebe overhauled to adapt tothis new Draftedby Debra van Opstal and AndrewGoldberg , with vision of the world. "If one accepts thenotion thatthe viabil­ a preface by Robert Kupperman, the pamphlet embodies, in ity of U.S. security is currently affected far more by regional the kind of summary form that the short attention span of a turbulence and unconventional threatsthan by Soviet expan­ presidential candidate is capable of absorbing, the basics of sionism, then the way in which U.S. leaders define policy how the next President should adapt himself to the new era must inevitably alter," the authors conclude. of U.S.-Soviet collaboration in what it calls the emerging According to the CSIS pamphlet, the new superpower "multipolar" world. condominium is based on two assumptions: The CSIS is an infamous nest of Trust policymakers, • The"single-minded U.S. focus on deterringthe Soviet including Henry Kissinger and Zbigniew Brzezinski, who Union and avoiding war in Europe" is reflective of "old implement much of theirpolicy throughlegislative initiatives paradigms of power that are becoming decreasingly rele­ carriedout by Sen. Sam Nunn (D-Ga.). vant. . . . Today, Europe is considered to be the least likely Kupperman spellsout the new realityin his preface to the arena of conflict." CSIS pamphlet. He predicts a world "decreasinglyinfluenced • "Even as prospects for direct U.S.-Soviet confronta­ by traditional superpowercompetition ," in which "the tradi­ tion decrease, the potential for international collision-po­ tional power paradigm-containingthe Soviet Union-may litical, economic or military-almost everywhere else is on give way to condominiums of interest in which the Soviet the rise. . . . The growth of Japanese and Europeaneconom­ Union and the United States together would seek to contain ic, military and political influence and the modernization of other power centers and regional states." China portend a more diverse global balance." India, Brazil, This is because, he says, "A new global reality has Argentina, and "the range of contenders for regional leader­ emerged that will tax the military and economic strength of ship" in the Middle East are singled out as potential major the United States and Soviet Union." This "new global real­ rivals. ity" is exemplified by three trends: 1) the rise of more ag­ What the Western advocates of such a new world con­ gressive Third World states; 2) the proliferation of �anced dominium ignore, is that their schemes for weakening the weaponryto these ThirdWorld stat es; and 3) the riseof "other Atlantic alliance, strengthening the U.N., and smashing the great powerriva ls, who arelikely to attempt to translatetheir Third World, will only lead to Soviet domination world­ growingeconomic strength into geopolitical influence." wide-not to the shared superpower leadership which they What Kupperman omits , is the fact that it is the barbaric hope for. In this strategic "great game," it is Moscow which economic policies of the International Monetary Fund and holds all thecards .

EIR August 19, 1988 National 63 believes that the American taxpayers may not be prepared to continue spending as heavily on the defense of those areas in the future ." Although the Schroeder panel intends to spend another half year at least exploring specific ways that "Europeans could betterdefend themselves," its interim reportdoes make 'Burden-sharing' means some specific recommendations. For example, it calls for a "zero-based" study of U . S. military commitments and bases U. S. deserting Europe overseas to "assess and prioritize" U.S. interests in various regions of the world, and "realign and possibly withdraw by Kathleen Klenetsky U.S. force levels in some locations overseas according to changing U.S. interests, the ability of our allies to defend themselves with less direct U.S. military assistance and rel­ The release Aug. 7 of a widely publicized congressional ative changes in the [Soviet] threat." reporton defense "burden-sharing"should serve asfair warn­ Implementation of the major thrustof the House subcom­ ing that proposals for drastically reducing the U.S. military mittee report could come long before the panel completes its commitment to Western Europe and Japan not only remain work. The Senate defense appropriations bill-voted up 94- very much alive, but are gaining widespread political sup­ 4 Aug. II-contains a tough burden-sharing package spon­ port. sored by Sens. Bennett Johnston (D-La.) and Ted Stevens Since Sen. Sam Noon (D-Ga.) introduced his infamous (R-Alaska). The package orders the secretaries of state and amendment four y rs ago calling for the withdrawal of defense to conduct a review of U .S. long-term strategy over­ American troops from Western Europe, proponents of such seas, to determine what level of U . S. troops deployed abroad alliance-dismembering have tried to cloak their real inten­ is "necessary," and ways to get Europe and Japan to cough tions in a debate on whether U. S. allies are shouldering their up more money for defense. The results of the review must fair shareof the Westerndefense burden. be submitted to Congress by March 1, 1989. It also places a Despite ample evidence to thecontrary , thejust-released limit on American troop deployments to Japan and Korea (at reportsays they'renot. approximately current levels), and a ceiling on spending for Produced by a House defense subcommittee created ex­ U.S. military personnel stationed overseas. The last provi­ pressly to focus on the burden-sharing issue, the report is sion requires the allies to pay the difference if deployment clearly designed to lay the grounds for the removal of Amer­ costs exceed 1988 levels. ican forces from key strategic areas around the globe. The "This is the toughest action Congress has taken yet in panel's chairman is Rep. Pat Schroeder (D-Colo.), a super­ terms of getting the allies to do more ," a congressional aide liberal who has in the past introducedmeasures to slash U. S. told EIR . He also expressed confidence that the Johnston­ troop strength in Western Europe by 50%; and its members Stevens amendments will survive intact when the bill goes include some of the most bitterly anti-defense members of into House-Senate conference. Congress, including Rep. Ron DeHums (D-Calif.) Its main finding is that "European members of NATO Europeans alarmed must prepare to defend the European continent without a Coming in the wake of the disastrous INF Treaty, which large-scale U .S. commitment of ground forces in thefuture. " raised grave questionsabout the seriousness of Washington's The reportargues that, since U. S. economic strengthhas commitment to defend Europe against Soviet attack, "declined significantly" relative to Japan and Western Eu­ congressional moves in the burden-sharing arenahave further rope, these countrieswill eitherhave to start financinga large unsettled America's allies. According to the July 31 London portion of the costs of keeping U. S. troopsin their countries, SundayTimes, British PrimeMinister MargaretThatcher was or Washington will sharply reduce its military presence­ alarmed enough about the Johnston-Stevens amendments, and, by implication, its defense commitment to them. thatshe launched "an intensive European lobbying campaign As an executive summaryof the reportputs it: "The Panel in Washington" against them. states in the strongest possible terms that Europeans had Her effortsdo not seem to have worked. PresidentReagan better be prepared to defend their own territory without a has not spoken out against this ally-bashing, although he large-scale U.S. ground commitment, because that commit­ vetoed the Senate defense appropriations bill earlier this ment cannot be guaranteed forever.... U.S. interests in month, citing national security. Indeed, several congression­ Europe and the Far East are not as great or as immediate as al sources report that while Pentagon personnel have raised theintere sts of theEuropeans and Japanese in protecting their doubts about thewisdom of this ganging up on Washington's way of life. If the allies believe that their defense posture is allies, theadministration secretly favored the Johnston-Ste­ adequate and thattheir way oflife is not threatened, thePanel vens package.

64 National EIR August 19, 1988 The bill also imposes thecontroven;ial sanctions against Japan's Toshiba Corp. in retaliation for,thesale by a Toshiba subsidiaryto the Soviet Union of sophisticated machine tools useful for making quieter submarines. The measure bans all 1tade bill opens up imports from Toshiba Machine Co. for a period of three years. ally-bashing furor Oblivious to Japan, Europe by WilliamJones The bill is intended to "up the ante" against foreign na­ tions whose trade is felt by Washingtolll to be threatening to the United States. "There will be som� disappointment to­ On Aug. 3, the Senate passed what the New York Times night in Germany and Japan," said Democratic vice presi­ characterized as "the most sweeping trade bill in a genera­ dential candidate Lloyd Bentsen, one of the authors of the tion." If signed and implemented, the bill threatens to become bill, with an air of self-satisfaction. The protectionist trade an economic battering ram against all our major trading part­ bill has indeed created a furoramong the U. S. 's major trading ners , with the primary targets being Japan, South Korea, and partners . Taiwan, as well as the West European countries. As the Japanese Foreign Minister Sosuke Uno has called on responses are coming in fast and furious from Europe and President Reagan to veto the bill. Prime Minister Noboru Japan, it also seems that the bill could ignite a major trade Takeshita termed the U.S. action "unfortunate," citing its waramong the Western countries-a trade warwhich might "protectionist undertones." International Trade and Industry irrevocably change the political geography now governing Minister Hajime Tamura called the bill a "great misfortune." our globe. He said Japan "reserves theright to filesuit" with the General The Japanese have been lobbying intensively for some Agreement on Tariffs and Trade. A senior Taiwanese trade time now to try to stop the trade bill. The Europeans, more official said, "We will regret it if PresidentReagan signs the discreetly following the laborious twists and turns of the bill bill. " as it was bounced back and forth between the Legislative and The South Korean foreign ministry also termed the bill Executive branches during the last few months , are now protectionist and saidthat, if enacted, it would seriously hurt speaking out in unmistakable tones. Yet there is as yet no the free-trade system. West German Economics Minister sign that anyone in Washington has begun to read the signals Martin Bangemann appealedto the Reagan administration to correctly. The mood of petty chauvinism reigning in the implement thepolicies outlined in the measure "withas much nation's capital bodes ill for the registering of any signals not restraintas possible." conforming to that mood. On Aug. 6, Willy De Clercq, EC Commissioner for Ex­ The bill gives the President broad powers to retaliate ternal Relations and Commercial Poli¢y, said that he "re­ against nations found to engage in "unfair trading practices. " gretted" the U.S. decision to adopt a measure "which con­ It permits the President, in certain circumstances, to block tains several protectionist elements and which increases the foreign takeovers if he has evidence such takeovers would possibilities of recourse to unilateral action." The EC Com­ "impair national security." One section of the legislation, mission will also question the legality of the U. S. measures aimed primarily against Japan, would immediately force three with GAIT if it judges "that the provisions of the new legis­ big Japanese securities firms out of the businees of being lation endanger it." primary dealers in U.S. government securities, unless Japan Capitol Hill legislators have reacted to the increased ten­ offers U.S. companies "the same opportunities" within a sion with a certain amount of smugness. Nothing is easier or year. more feasible politicallyfor Washingtonlegisla tors than tak­ The Japanese have been big buyers of U.S. government ing out the old sledge-hammer for a round ofJap-bashing and securities, and such a measure could result in a pull-out by European-bashing. It would well behoove us to remember, the Japanese from the bond market, as may already be indi­ however, that the very political and economic alliances la­ cated in the small turnoutfor the latest new issue of Treasury boriously built up during the postwar period are not neces­ bills on Aug . 10. sarily permanent fixtures . There is a grpwing skepticism in The bill also directs the President to act against countries Europe and Japan concerning continue4 U.S. willingness to thatpermit piracy of U . S. "intellectual property . " Holders of maintain our military commitment abroad. U. S. patents would be allowed, under this clause, to sue U . S. Ifwe alsobecome entangled in a trade warwith our allies, importers of any products that use their patented processesin the "ties that bind" may be rent asunder-perhaps irrevoca­ a foreign country where the patents aren't protected. Sanc­ bly. The trade deficitcrusaders should beaware that they are tions against Brazil have been imposed with regard to a sim­ treading on very thin ice. A few more jolts and that ice may ilarpatents case in the pharmaceutical industry. break-and the seas of chaos will be upon us.

EIR August 19, 1988 National 65 Elephants& Donkeys by Kathleen Klenetsky

John Tower, Bush forces quickly many cases, it's their only legacy to moved to modify the subcommittee's their children," he pointed out. "For position, and, by a 7-6 vote, got it to Dukakis to propose letting the state Washington Post adopt a compromise. The draft now seize that legacy, is the final indigni­ uses EIR's material urges "rapid and certain" deployment ty ." of a strategicdefense "as soon as tech­ In retaliation for the exposure of Du­ The Dukakis proposal is just one nology permits." more piece of evidence that the Duke kakis's mental problems, the Wash­ has about as much human compassion ington Post launched a five-part pro­ as a meat cleaver. fileon George Bush Aug. 7. Ironically, theinaugural articlefo­ Dukakis proposal: cused on material which EIR pub­ Seize homes of elderly lished eight years ago (although the Mass. legislators: Among other features of the flap over Post gave us no credit) , namely , Dukakis should resign Bush's membership in, and continu­ Dukakis's mental fitness, one of the ing connection to , Skull & Bones, leading ones is certainly his lack of A majority of Massachusetts state leg­ Yale's elite secret society. human compassion. Thereis the meat islators believe that Michael Dukakis EIR's exposure of Bush's links to he kept on display in his office when should resign as the state's governor Skull & Bones, as well as to the Tri­ savaging the state budget; his indiffer­ while pursuing his presidential cam­ ence to his wife's drug habit; his in­ lateral Commission, were instrumen­ paign. difference to his brother's suffering, tal in his loss to Ronald Reagan in the Reporting on the results of a sur­ and the euthanasia he committed 1980 New Hampshire primary. vey it conducted of the legislators , the against his brother. Boston Globe Writtenby Bob Woodwardof Wa­ Aug. 7 disclosed that a Now we learn that last year, Gov­ slight majority of Democrats and most tergate fame , the article makes two ernor Dukakis asked the Massachu­ Republicans the governor should main points: think setts legislature to endorse a proposal step down in the wake of receiving the 1) George Bush was forced to re­ that would have allowed the state to Democratic nomination, on the veal his innermost psychological and seize the homes of elderly Massachu­ grounds that he could not possibly emotional concerns during his initia­ setts residents to pay for theirnursing­ handle the responsibilities of govern­ tion into Skull & Bones. home care costs. ing and at the same time pursue his 2) George Bush has continuously Fortunately, the governor's mea­ presidential ambitions. placed a deep reliance on the Skull & sure was turned down. Deep misgivings about Dukakis's Bones old boys network to advance "We found theproposal objection­ handling of the state's budget crisis his personal and political fortunes. able," state Rep. John Flood (D-Can­ apparently figuredstrongly in the leg­ ton) , chairman of the House tax com­ islators' decision. A majority of leg­ Republicans compromise mittee, told EIR . islators responded "no" to a question "First, it had very morbid over­ which asked if they thought Dukakis on the SDI tones ." It specified that a lien would generally followed through on his A fight within the Republican Party be placed on the houses of those who commitments-apparently reflecting platformdrafting committee has led to were going into a nursing home for the widespread anger in the state house a compromise on the Strategic De­ last time. about Dukakis's handling of the 1989 fense Initiative. "Imagine how that would make Massachusetts budget, and specifical­ The initial platform draft included you feel," if you were one of those ly his vetoing of a $91 million local language calling for sm deployment elderly so designated, Flood said. aid package. "as soon as possible." But, at a meet­ Second, Flood said, "We believe Rep. Kevin Blanchette, a Demo­ ing in New Orleans Aug. 9, the de­ that the elderly should not be penal­ crat who does not believe thegovernor fense subcommittee proposed to ized for needing nursing or medical should resign, told the Globe that the strengthen the section to promise de­ care;this should be considered a social results mean that most of his col­ ployment either by 1992 or during the cost." leagues don't think Dukakis can si­ Bush administration. Many elderly have "scrimped and multaneously runthe state, and run for Represented by former Texas Sen. saved to own their own home, and in the White House.

66 National EIR August 19, 1988 · Eye on Washington by Nicholas F. Benton

though similar questions have been put they would cast their votes for anyone to every presidential candidate who's who hadseen a psychiatrist." ever run), the media engaged in frantic damage control, including some vi­ cious personal slanders of me and 'I'm convinced he's EIR's founder, Lyndon LaRouche. When news of the Gallup Poll first hiding something' broke Aug. 9, reporterBob Schieffer A senior columnist for a major nation­ Medical flap costs of CBS-TV news noted thatit was the al news magazine confidedto me Aug. first poll released since the "rumors 9 that he is "absolutely convinced 00- Dukakis 10 points thatDukakis received psychiatric care kakis is hiding something." Inthe wakeof the internationaluproar broke out into the public." By the next He, like the Wall Street Journalin over his mental health, Michael Du­ morning, however, any correlation its Aug. 5 editorial, agreed that the kakis's standing in the polls took a between the poll and the question of question of Dukakis' s medical history precipitousdecline in early August. A Dukakis's mental health was edited was "perfectly legitimate," and backed CBS poll, released Aug. 9, showed out of every report. The Washington that up by recounting how candidates that the 17-point lead Ookakis held Post claimed that the nosedive was the going back to John F. Kennedy were coming out of the Atlanta convention resultof a "natural leveling offof pop­ requiredby the press to provide excru­ had beencut by a whopping 10 points. ularity a candidate enjoys right after ciating details of their medical condi­ Conducted over the Aug. 8 week­ their national convention." tions during their dampaigns. end, the nationwide telephone poll of Even the Washington Times, "It has always been very common 1,004 registered voters showed 00- which claimed credit for having bro­ for the media to probe intothe intimate kakis leading his Republican rival, ken the story of the unanswered ques­ details about a candidate's health, and George Bush, 49% to 42%. tions about Dukakis's mental condi­ candidates have always been forth­ Dukakis partisans tried to play tion, made no mention of a correlation coming," he said. ''There was Ken­ down thefindin gs, ascribing their can­ between the change in the polls and nedy's Addison's disease, and the fact didate's decline to an expected down­ Dukakis's mental condition. he received medication for it, and his turn fromhis immediate post-conven­ Conservative columnists Evans back problems as well. Therewas the tion high. But Duke's nosedive clear­ and Novak, in their Aug. 8 column, fact that Johnson had a heart attack in ly resulted from the furor over his also misjudged badly. "The incident 1954, and was receiving medication. emotional fitness for the presidency, seemed to end witha classic backfire, Therewas Mondale 's high blood pres­ which dominated the international Dukakis apparently unhurt and the sureand the medication he was taking. media for the firstweek in August. Bush campaign linked to Lyndon These were all the subject of the clos­ The CBS poll found the electorate LaRouche." On the contrary, the est scrutiny by thepres s." singularly unenthusiastic about both emergence of the Dukakis mental By contrast, he said, "Dukakis is candidates. Only 36% of those quer­ health issue, and Dukakis's failure to the most closeted candidate Jor the ied expressed a strong preference, effectively deal with it, was bound to presidency we've ever had." He said evenly divided between D\lkakis and hurt his popUlarity. This was conced­ that he'd gone through the files at his Bush, while the remaining 64% polled ed by one network, which noted a poll magazine going back over 30 years said they eitherhad no interestin either showing that 33% of the American and was amazed to discover that Du­ candidate,or a weakpreference at best. voting public "is strongly prejudiced kakis is the first nominee of a major Onlyone incident occurredduring against anyone who has receivedpsy­ party who has not opened himself up the short period since the previous chiatric carebecoming President. " to the press, who has not, he said, polls: my question to President Rea­ Another poll, conducted in 1982 "kicked his heels up onto his desk and gan about whetherDukaki� should re­ by theField Servicein California, and opened up to the press about whatever lease hiscomplete medical history, and recalled in the Los Angeles Herald Ex· was on theirminds . Reagan's historic response, "Look, aminer, showed thatvoters would elect "Dukakis is very secretive and I'm not going to pick on an invalid." a candidate who was "homosexual, guarded. He carefully controls every In a shameful effort to character­ bankrupt, radical, uneducated, inex­ word. . . . I'm surethe re'ssomething ize the question as scurrilous (even perienced, foreign, or a lawyer before he's covering up," he said.

EIR August 19, 1988 National 67 Congressional Closeup by William Jones

Senate passes Contra probably guarantee that the Contra is­ deal are Citibank, Shearson Lehman aid bill in close vote sue will remain an important focus Hutton, Salomon Brothers, and Mor­ On Aug. 11, the Senate narrowly during the fall election campaign. gan Stanley. adopted a measure to provide $27 mil­ Are these Anglo-American banks lion in "humanitarian aid" to the Ni­ part of a Pan-German strategy? Per­ caraguan Contras, afterfirst rejecting haps Senator Helms must rethink his a Republican proposal which would theory. have provided military aid. The mea­ Why does this anti-communist sure was attached to a Defense Appro­ Helms questions crusader often end up doing a such priations Bill, and President Reagan usefulness of NATO damned good job for Moscow? has threatened to veto it if, as expect­ Sen. Jesse Helms (R-N.C.), the erst­ ed, the House attaches arms control while crusty warrior for the national language that he can't accept. Speak­ security and against communism, has ing of theDemocratic proposal, White once again taken up his cudgel­ House spokesman Marlin Fitzwater againstU.S. allies. In a speech on Aug. After the drought: said, "We don't like it. It doesn't do 9, he denounced the Germans, and locusts and grasshoppers thejo b." even suggested that NATO has out­ In floor statements at the end ofJuly, The debate surrounding themea­ lived its usefulness, and the United after visiting the drought areain South sure was subject to considerable con­ States should pull out. Dakota, Republican Sen. Larry Pres­ fusion. Senate Majority Leader Rob­ "The purpose of NATO and the sler warned that grasshoppers and lo­ ert Byrd (D-W.Va.) expected most OECD," he said, "is to provide for the custs could follow in the wake of the Republicans to back the Democratic defense and economic cooperation of drought. "If the drought continues," plan, which he had been drafting for the West. If these organizations can­ said Pressler, "we could have a real weeks in an effort to achieve a bipar­ not fulfill this purpose throughreal and problem with grasshoppers and lo­ tisan consensus. Senate Minority effective cooperation in denying the custs; counties and states may have to Leader Robert Dole (R-Kans.), who Soviet Empire the ability to wage war expandprograms to assist farmers and was faced with a rebellion in his own against the free world, the United ranchers control grasshoppers." ranks , could not support the Demo­ States would do well to rethink its Pressler reminded his fellow leg­ cratic plan, since he had not secured commitments to theseorganizati ons. " islators that this was not the first time White House approval. Helms ventured over his head into thatthey had had such problems in the Byrd became so angry at one point the murky waters of history, compar­ area. The Mormons during the last that he accused the White House of ing the latest deal between the Krem­ century were hit by a plague of grass­ negotiating in bad faith . "I'm sick and lin and West German financiers, in­ hoppers and were saved by seagulls tired of dealing with a White House volving 500 million deutschemarks, who came and ate the grasshoppers . that has no more steel in its guts than to the way the German General Staff Today in Salt LakeCity there is a huge this White House has," said Byrd. and German banks had supported the statute of a seagull commemorating The bill provides for the possibil­ Russian Revolution, by financing theevent. ity of military aid to the Contras only Lenin and setting up agreements with "Inthe Old Testament," continued on a request from the President, in the Soviets immediately following the Pressler, "the Pharaoh had no defense which he certifiedthat the Nicaraguan revolution. against' the grasshoppers and locusts. governmenthad caused "an emergen­ Helms attributed this to a Pan­ Locusts arementioned throughoutthe cy situation in Central America" that German strategy to dominate Eastern Bible. Indeed, in Nahum 3: 17: 'Thy was having "a critical impact on peace Europe and Russia, and claimed that crowned are as the locusts, and thy and stability of that region." The Sen­ the present moves by West German captains as the great grasshoppers, ate would then have to vote on the financial interests are of the same na­ which came in the hedges in the cold request before aid would be forthcom­ ture , although pointing out (and leav­ day but when the Sun ariseththey flee ing. ing unexplained by his "theory") that away, and their place is not known The uneasy compromise will among the participants in this bond where they are .' This is exactly the

68 National EIR August 19, 1988 case in parts of South Dakota." decided to try another flank to try to for these young men and women, some "Grasshoppers ," he said , "nor­ destabilize the Panamanian focal point of them teenagers , who lay their bod­ mally feed on grass in conservation for Thero-American integration. ies on the line and die for the freedom reserve acres, rangeland, or other of their country." areas . With the drought, they are Doman went on to say that "Du­ forced tomove into nearby, small grain kakis has completely fogged his whole or com fields. . . . It will be a bigger Let Gorbachov renounce image, and did it with some skill at the problem next year if we do not take Hitler-Stalin Pact Democratic Convention." preventive action this year." Pressler On the occasion of theupcoming 49th Speaking to the National Strategy emphasized that the cost of spraying anniversary of the signing of the Mol­ Forum in Chicago, RepUblican Con­ would also have to be taken into ac­ otov-Ribbentrop Pact on Aug. 23, Sen. gressman Jack Kemp (N.Y.) had count in any type of drought relief Jesse Helms (R-N.C.) made reference pointedout fivedangers in the Dukak­ package worked out by the Congress on Aug. 10 to the secret protocols that is foreign policy: endangering deter­ and the U.S. Department of Agricul­ allowed the Soviets to annex the Baltic rence; unsound arms control policies; ture . states, and thus eliminate in one fell giving up Central America; unsound swoop the nations of Latvia, Lithu­ defense spending; and undermining the ania, and Estonia, which have re­ Strategic Defense Initiative. mained under Soviet domination tothis Joint resolution would day. abrogate Panama Treaty "Gorbachov must renounce the A joint resolution was introduced on non-aggression pact and attempt to Move to make Aug. 10 by Rep . Phil Crane (R-Ill.) undo the damage that the pact has in­ Jerusalem Israel's capital and Sen. Steven Symms (R-Idaho) , to flicted in the past half-century," said The New York Times reports that the abrogate the Panama Canal Treaty of Helms. "The non-aggression pact is a new State Department telephone di­ 1977 , which is to transfer ownership legacy of Stalin and the terrorthat sur­ rectory "has moved the Israeli capital of the Panama Canal to Panama after rounded his regime . The removal of to Jerusalem, with the other Foreign 1999. such legacies is a prerequisite for any Service post there, Tel Aviv." Quot­ The Crane-Symms Resolution real glasnost to occur in the Soviet ing Sen. Daniel Moynihan (D-N.Y.) makes several claims as the pretext for Union." who says that"Jerusalem is now a post abrogating the treaty . It claims, with The non-aggression pact as well as with a country," the article notes how a bit of sophistry, that Panama's Gen. the secret protocols were read into the earlier editions of Department direc­ OmarTorri jos did not have the power Congressional Record. tories had listed Jerusalem as a posting to "enter into international treatiesand in Israel, but separately, between its agreements" according to the Consti­ alphabetical neighbors , Japan and Jor­ tution of Panama. The resolution also dan. claims that the treatydoes not explic­ Dornan mocks Dukakis's This occurs in the context of be­ itly transfer sovereignty from the fo reign policy claims hind-the-scenes negotiations among United States back to Panama, and In comments on the House floor on the Soviet Union, Israel, and the therefore cannot annul the earlier 1903 Aug. 9, Rep. Robert Doman (R-Cal­ United States, aiming at making Je­ treaty, which gave the United States if.) ridiculed presidential candidate rusalem theIsraeli capital (see article, sovereignty over the Panama Canal. Michael Dukakis' s claims that he is p. 40) . Senator Moynihan has tried Sen. Jesse Helms (R-N.C.) has closer to President Reagan's current unsuccessfully in the past to pass leg­ said thathe would be a co-sponsor of views on U. S.-Soviet relations than is islation requiring that the United States the bill. Since U.S. plans for over­ Vice President Bush. "If Dukakis move its embassy from Tel Aviv. throwing the government of Gen. wins," said Doman, "freedom fight­ Nancy Beck, a spokeswoman for the Manuel Noriega in Panama have been ers' efforts around theworld are dead, State Department, said that the De­ foiled time and again, the professional and Dukakis even once drewhis finger partment "does take the senator's Noriega-bashers in the Congress have across his throat and said, 'finished,' opinions seriously."

EIR August 19, 1988 National 69 National News

rogate part of the pact, and perhaps expand assured of protection through use of con­ its testing of Strategic Defense Initiative doms in acts of anal sex. technologies, or withdraw from the treaty According to the Los Angeles Times, LaRouche candidates altogether. which released the story afterobtaining doc­ Secretary of State George Shultz is uments under the Freedom of Information get big votes known to be opposed to any such action. Act and in interviews, the action "appears LaRouche candidates for congressional and to represent a major shift in the federal gov­ state legislative offices in Missouri and ernment's attitude toward the use of con­ Michigan polled high votes in the firstround doms in preventing AIDS among gay men. of post-Democratic convention primaries In the past, federal health officials have re­ Aug. 2. peatedly described condoms as the single Both states have been hard hit by indus­ Dukakis might bestway, aside from celibacy, to reduce the trial collapse and drought. keep Koop on spread of AIDS . But now, federal officials Missouricom and livestock farmer John say effectiveness of condoms in blocking The AIDS virus will continue to spread Gallagher, running in the 6th C.D., which the spread of AIDS through anal sex has among and kill Americans under a Dukakis includes the city of St. Joseph, one 31% of been seriously compromised in five U.S. administration, with the full protection of the vote in a race for the Democratic cities with high infection rates-Los An­ civil rights laws, if aides to the Democratic congressional nomination. Gallagher cam­ geles, San Francisco, New York, Miami, presidential nominee have their way. paigned "for a space-age industrial revolu­ and Washington." They are advocating that Dukakis an­ tion," and emphasized that the LaRouche The newspaper cited Dr. Jeffrey Perl­ nounce that he will keep Surgeon General platform represents a solution to the AIDS man of the National Institute of Child Health C. Everett Koop at his post. Koop's lies danger, and a policy for building up Amer­ and Human Development, saying that the about "clean needles and condoms" have ica's defense, economy, and national credit risk of condom failure combined with high covered for the Establishment's policy of policy. In 1986, Gallagher received only infectionrates made chances of transmitting doing nothing to stop the spread of the killer 4.5% of the vote in a state senate race, in­ the virus unacceptably great. virus . cluding about 2% in the 6th C.D. Thus, in The study was being conducted by the Dukakishas said thathe would not make two years, his vote rose 29%, reflecting the University of California at Los Angeles, on any personnel decisions until after he were vast growth in LaRouche's own support na­ a $2.6 million federal grant. elected in November, but aides said that re­ tionally. taining Koop could send a signal that their In Michigan, legislative candidate Jim candidate will reward "competence and Green, running in the 84th C.D. as a "La­ compassion. " Rouche Democrat," polled42% of the vote. Sen. Edward Kennedy is also said to favor Koop's retention in the Surgeon Gen­ eral 's job, and he is quoted in the Aug. 15 Governors endorse new edition of U.S. News & WorldReport saying amendment procedure that his vote against Koop's confirmation New HampshireGov. John H. Sununu (R), Reagan to ask Soviets was a "mistake." a strong supporter of George Bush and 1987- to destroy radar 88 chairman of the National Governors As­ President Reaganhas decided not to declare sociation (NGA) , successfully maneuvered the Soviets' massive phased-array radar in­ that organization into going on record in stallation at Krasnoyarsk a "material breach" favor of a new way to amend the U.S. Con­ of the 1972 ABM Treaty , but instead will Condom study stitution, at theorganization '!lAugust meet­ askMoscow once again to raze the facilities, ing in Cincinnati. when the two countries begin their review loses funding Currently, theConstitution authorizes the of the ABM Treaty at the end of August. A California study on the effectiveness of calling of a constitutional convention to How to handle the Krasnoyarsk issue condom use in preventing thespread of AIDS consider an amendment on petition of two­ has been a hotly debated issue within the will have its federal funding terminated, be­ thirds of the states. This has been sought by administration, with some quarters, report­ cause federal health officials fear that, in supporters of a balanced-budget amend­ edly the National Security Council staffand fact, the condoms won't be effectivein areas ment. But the procedure hasnever beenused, Defense Secretary Frank Carlucci, urging with high infection rates. because of fears that a "runaway" conven­ the Presidentto declare it a "material breach." The rate of AIDS infection among male tion wukk virtually rewrite the nation's Under international law, such a decla­ homosexuals in Los Angeles is considered founding document, whatever the original ration would permit the United States to ab- so high that no study participants could be purpose of the convention.

70 National EIR August 19, 1988 Briefly

Under Sununu's proposedscheme , two­ Reached for comment, theattorney for thirds of the states would petition Congress presidential candidate Lyndon LaRouche • LLOYD BENTSEN, the Texas for a specific amendment. Unless the House blasted the judge's ruling, saying that the senator and Democratic vice presi­ andSenate rejected the amendment by a two­ misconduct of the prosecutors was not a dential nominee, has resigned from thirds vote within two years, it would go mistake or "negligent," but deliberate. '"Ibis three private clubs , at least two of back to the states, who could place it in the case was run from the highest levels of the which have no black members , and Constitution if three-fourths of state legis­ Justice Department," said Odin P. Ander­ at least one of which has no female latures voted to do so. son. "Nothing was a mistake . Itis ludicrous members . Officials of the clubs, A poll ofDemocrats at the NGA con­ to say that the prosecutors did not have suf­ Houston's River Oaks Country Club vention indicated that Sununu did not have ficientbackup .... " Anderson said that the and Ramada Club, and the Middle­ thetwo-thirds voteneeded tomake thisNGA government has accomplished what it in­ burgTennis Club in Virginia,say they policy, but when he presented the resolu­ tendedwith the mistrial, which is a drop-by­ do not exclude anyone frommember­ tion, no debate was called for, and when he drop financial bleeding of the political ship. Still, Bemen "just thought it ruled that it had been approved by voice movement associated with LaRouche. was the appropriate thing to do," said vote, no one demanded a roll call. a spokesman.

• COLORADO recently banned the use of woodstoves and fireplaces on grounds of the pollution they pr0- Thornburgh grilled at duce. According to Environmental Judge says LaRouche Protection Agency figures, the resi­ Senate hearing dential burning of wood in 1986 ac­ can be retried Richard Thornburgh, the former Pennsyl­ counted for more particulate emis­ Although finding that therewas "institution­ vania governor who is President Reagan's sions into the atmosphere than all aland systematic prosecutorialmisconduct" Attorney General nominee to replace Edwin electric utilities, railroads, aircraft, inthe first trial of Lyndon LaRouche and six Meese, was grilled extensively at Senate and water vessels ,combined, and an associates , a federal judge has ruled that a hearings Aug. 5 on his involvement in the amount equal to all highway vehi­ retrial of LaRoucheand the otherdefendants decision 12 years ago not to inform the Con­ cles. is not barred on constitutional grounds of gress of a report dealing with alleged Pana­ double jeopardy. manianinvolvement in drug-running. • NEWJERSEY funeral directors In 120 pages of opinions issued in Bos­ The issue was discussed at a meeting will be notified when they are dealing ton Aug. 11, U.S. District Judge RobertE. between Thornburgh, then head of the with AIDS victims, under a law Keeton denied defense motions for a dis­ Criminal Division, then-Attorney General passed by the state legislature and missal of charges of conspiracy to obstruct Edward Levi, and two other top officials signed into law by Gov. Thomas Kean justice and creditcard fraud. from the Department of Justice. The Wall Aug. 8. ThomasLeach, a lobbyist for Keeton blamed the government miscon­ Street Journal published a report on the the New Jersey FuneralDirectors As­ duct on the complexity of the case and the meeting the same day that the hearings were sociation, said thatsome doctorshave zealousness of defenselawyers , rather than held. been "covering up AIDS cases," es­ on the prosecutors assigned to the case. He The documents included a report on a pecially in "well-to-do families." The called the prosecutors' failure to disclose plot to assassinate Panama's Gen. Manuel law would levy fines up to $1,000for materials in their possession to the defense Noriega. failure to comply. "negligent misrepresentation," not an inten­ Thornburgh initially claimed that the tional violation of the law, and said it had matters discussed were still the subject of a • EDUCATION Secretary Wil­ come about because the government had not criminal investigation at the time the deci­ liam Bennett announced Aug. 9 that assigned enough resources to the case. sion was made. When this story was contra­ he plansto resign, effective Sept. 20, Keeton astounded legal observers by dicted by Sen. Howard Metzenbaum (D­ andPresident Reagan announced his concluding: 'Theappropriate remedyfor this Ohio), who said that the criminal investi­ intention to nominate Texas Tech transgression . . . is to pare the trial down gations had been concluded at that time, University President Lauro F. Cava­ to a scope that the government can reason­ Thornburghsaid that his memorywas not so zos as his replacement. The sudden ably support given the resourcesit sees fit to clear about an incident which happened 12 Bennett resignation fueled specula­ assign to this case ....This is a remedy years ago, and that, although he had been at tion that he was being seriously con­ 'narrowly tailored' to deter the kind of insti­ the meeting, it was Attorney General Levi sidered as the GOP vice presidential tutional and systematic prosecutorial mis­ who had made the final decision for non­ nominee. conduct that occurred during the first trial." disclosure.

EIR August 19, 1988 National 71 Editorial

The messagefr om Panama City

At a meeting in Panama City August 8-1 1, delegations The 17th anniversary has just passed of the fateful from all over Thero-America gathered to debate the decision of the U.S. Nixon administration, on Aug. 15, political issues facing their nations , and they resolved 1971, to detach the dollar from gold reserves and insti­ to take concrete steps toward economic integration. tute the floating exchange rates which cast the world A movement has now been born,which has the real monetary system adrift . potentialto bring to fruitionthe detailed proposalmade Despite all the cellophane tape and rubber bands in 1982 by Lyndon LaRouche under the title of "Oper­ applied by the Reagan administration, to keep up the ation J ulirez," and later elaborated by the Schiller Insti­ appearance that the U.S. banking system is still sol­ tute's Trade Union Commission as the book entitled La vent-at least until after the November presidential Integraci6n Iberoamericana. This represents the most election-the situation is again veering out of control . vibrant potential today , indeed the best that has ever The Federal Reserve has just raised the discount rate . existed, for actually creating a just New World Eco­ A new wave of interest rate increases will unmask the nomic Order. Potemkin Village of "recovery" and strike fear into There are now two questions: How rapidly will the economic cabinets of every Thero-American nation. Paul individuals gathered in Panama act to implement their Volcker, the architect of the devastating interest rate resolutions; and will the United States respond posi­ increases of the Carter and Reagan administrations, tively to this golden historic opportunity? which triggered the 1982 debt crisis, has remarked that LaRouche, it will be remembered, intersected the the economy may not make it through August! Thero-American foreign debt crisis of 1982 with his Meanwhile , the crisis of the external debt of our proposal to show how the United States could help in a !hero-American neighbors has come to a head again. process that would reorganize the debt so as to launch An article in this issue details, nation by nation, the a technology-vectored economic recovery, through an situation in which, despite all the willingness of most Thero-American Common Market. LaRouche named countries' leaders to prostrate themselves before the his plan for Benito Juarez, the President of Mexico who internationalcreditor banks, they simply don't have the had collaborated with Abraham Lincoln. He made the resources to make the payments now coming due . And point then, that if the President of the United States the banks don't have the resources to extend new cred­ backed such actions by his fellow hemispheric Presi­ its . Despite all the treachery of national leaders , things dents , he would be taking the essential action needed are headed for a showdown. to restart economic growth in the United States itself Only under such acute crisis conditions does the and reverse two decades of post-industrial stagnation. ordinary citizen sometimes decide to revolt and change LaRouche also spelled out a more difficultpath , for his country's political leadership. The first signs came Thero-American nations to "go it alone" if necessary in the July Mexican elections, where the voters chose withtheir own mutualresour ces, should the U.S. lead­ the anti-austerity dissident candidate Cuauhtemoc Car­ ership stubbornly insist on sticking to its suicidally stu­ denas for President. pid, monetaristpolici es. In Panama City, a relative handful of individuals In 1982, the potential for world economic recovery took responsibility for providing moral leadership to was sabotaged, as country after country backed out of this political ferment. If they continue to have the cour­ showing Mexico the supportit needed for its sovereign age to lead, they will be followed. And that will pose stance against the international banks . Six years and the question to U . S. citizens , of how to bring to political countless unnecessary sufferings later, we now face powerthe policies of the one man the Thero-Americans another opportunity . see as an ally in the United States, Lyndon LaRouche .

72 National EIR August 19, 1988 Overpopulation Isn't Killing the World's Forests- Weekly EIR the Malthusians Are

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1200

900 1987 1988

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