THE ONLY WAY TO STOP MARSHAL OGARKOV'S WAR PLAN!

The greatest strategic weapon in the Russians' arsenal against the West, is not any of their weapons systems as such, but their ability to exploit the flaws in Western so-called economic thinking, which go by the name of "free enterprise."

�TIill How to reverse the economic policy QUARTERLY blunders that led to 'Ira.ngate' CONTENTS ECONOMIC • An international financial blow-out: the real story behind 'Irangate' REPORT • The technology-driver of the new economic upsurge: the forty- year Mars-colonization project

• The explosive impact of AIDS on the world economy

EIR Quarterly Economic Report Make check or money order payable to: First $1,000 annual subscription Executive Intelligence Review $250 single issue. P.O. Box 17390 Quarter Washington, D.C. 20041-0390 1987 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke, From the Editor Nancy Spannaus, Webster Tarpley, Christopher White, Warren Hamerman, William Wertz, Gerald Rose, Mel Klenetsky, Antony Papert, Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Circulation Manager: Joseph Jennings

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot, Mary Lalevee Agriculture: Marcia Merry S orne of our friends in California, the Prevent AIDS Now Initiative Asia: Linda de Hoyos Committee (PANIC), have announced, on May 29, that they will Counterintelligence: Jeffrey Steinberg, Paul Goldstein place another referendum on the California ballot for 1988 which is Economics: David Goldman virtually identical to the famous Proposition 64. This initiative will European Economics: William Engdahl, Laurent Murawiec go directly after the homosexual lobby and cost-cutters who caused Europe: Vivian Freyre Zoakos Prop 64 to fail by lying before the November vote. They lied Thew-America: Robyn Quijano, Dennis Small 1986 Law: Edward Spannaus about "casual transmission," and about the extent of the AIDS threat, Medicine: John Grauerholz, M.D. and as a result, many people will die. Now, voters will have a second Middle East: Thierry Lalevee Soviet Union and Eastern Europe: chance to save lives. Rachel Douglas, Konstantin George That's good news; but equally important is an initiative kicked Special Projects: Mark Burdman United States: Kathleen Klenetsky offon the centerfold pages of this issue by EIR's founder Lyndon H. INTERNATIONAL BUREAUS: LaRouche, Jr., which holds the scientific key both to finding a Bangkok: Pakdee and Sophie Tanapura vaccine and cure for AIDS, and to turning the tide against the Soviet Bogota: Javier Almario Bonn: George Gregory, Rainer Apel war drive. I suggest you tum first to pages 36-37 to find out why EIR Chicago: Paul Greenberg is taking up the issue of radio-frequency weapons in much the same Copenhagen: Poul Rasmussen Houston: Harley Schlanger way that in 1982, more than a year before President Reagan's famous Lima: Sara Madueiio Los Angeles: Theodore Andromidas address of March 1983, EIR aJ)d the scientific organization Fusion Mexico City: Josefina Menendez Energy Foundation took up the battle for what became SDI. Milan: Marco Fanini New Delhi: Susan Maitra As to the SDI itself, the cover story this week reveals the reality Paris: Christine Bierre behind Soviet attacks on the American "Star Wars" program for Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio, Stefania Sacchi allegedly "militarizing outer space." No one should be fooled into Stockholm: William Jones thinking that the Soviets have developed their Saturn V -class booster United Nations: Douglas DeGroot Washington, D.C.: Nicholas F. Benton rocket, launched on May 15, for "peaceful exploration of space." Wiesbaden: Philip Golub, Goran Haglund The rocket gives the Soviets a significant jump ahead of the United States in being able to launch and orbit laser weapons to attack satellites, and battle stations for strategic defense. EIRIExecutive Intelligence Review (ISSN 0273-{)314) is published wee/cJy (50 issues) except for the second week On page 22, LaRouche targets the treasonous nest in the Depart­ ofJuly and last week of December by New Solidarity International Press Service P.O. Box 65178, Washington. ment of Justice which helped the Soviets obtain this advantage; and DC 20035 (202) 785-1347 on page he analyzes why a Paris court case pitting LaRouche and EaropetUI H"""uamn: Executive Intelligence Review 30, Nachrichtenagentur GmbH. Postfach 2308. his friends against top Soviets is bringing to the surface the very core Dotzheimerstrasse 166.0-6200 Wiesbaden. Federal Republic ofGennany of KGB-Justice Department collaboration. Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. Michael Liebig On the related subject of "Project Democracy," the illegal foreign I.lhllllfllrl<: ElR, Rosenvaengets AIle 20. 2100 Copenhagen OE, Tel. (OJ) 42-15-00 policy apparatus thoroughly exposed in EIR' s recent Special Report, In M."ico: ElR, Francisco Dias Covanubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. I draw your attention particularly to articles on the Philippines (p. JIIfHII' .""",riptio. 10k.: O.T.O. Resean:h Corporation, 35) and Mexico (p. 38). Takeuchi Bldg., 1-34-12 Takatanobaba. Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821.

Copyright @ 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in pan without pennission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single issue-lIO Academic library rate: $245 per year Pustmuter: Send all address changes to EIR. P.O. Box 17390, Washington, D.C. 20041-0390. (202) 785-1347 I.

ITillContents

Interviews AIDSUpdate Economics

44 Colonel Michael Hickey 15 Just a touch of blood 4 America's foreign subsidy Part II of our interview with the The CDC has again proven itself comes to an end at Venice author of The Spetsnaz Threat: willing to risk anyone's life. EIR warned in its Quarterly Can Britain Be Defended? Economic Report of September 16 WHO opposes any mass 1986, that the political agreements screening under which America's foreign subsidy might be financed were Book Reviews eroding. The summit meeting of 59 Armed Chinese soldiers industrial nations at Venice will bury them. 41 New attempt to cover up put an Irish AIDS carrier the English side of the on a plane Global financial crisis Bolsheviks' 'Trust' 6 62 AIDS 'hottest issue' in the predicted for October Allen Douglas and Scott Thompson review Robin Bruce states If the Reagan administration Lockhart's Reilly: The First Man. continues its present policies, it is 70 VA patients may be tested certain that the world's economic for AIDS situation will become much worse over the summer months. An analysis by Lyndon LaRouche. Departments 71 Police in Washington to wear gloves, masks 7 Currency Rates 12 Andean Report Banker Ulloa faces criminal trial . 8 Deregulation and 'recovery' bring trucking 34 Mother Russia to a state of emergency Racist society steps into limelight. 10 Bradley plan for Third 55 Report from Rome World debt relief ignores AIDS, drugs are top election reality, otTers pittance issues. The Senator's plan won't do any of the things he says it will. 56 Dateline Mexico A political Exocet. 13 Banking Slim prospects for a bailout. 57 From New Delhi The Kremlin's 'Kissinger' pays a 15 Medicine visit. Just a touch of blood.

66 American System 16 Business Briefs Thurgood Marshall, Oliver North, and the Tories of the 1780s.

72 Editorial The Russian R&D challenge. Volume 14 Number 23, June 5, 1987

Science & Thchnology International National

28 u.S. Persian Gulf policy: a 60 Reagan opens door to chance for a change Constitution's destruction Patriotic elements are trying to The President's call for a ignite a shift in the overall U.S. constitutional convention is a military posture, albeit in perfect example of how his refusal piecemeal fashion. to admit that his economic recovery never took place, is 30 Moscow admits LaRouche leading him into actions which number one Soviet target will bring utter ruin on the 1be successful test ftight of the superbooster Energia country. now makes it possible for the Soviets to orbit manned The Soviets' defense motion in a space shuttles, seen here, as well as laser and particle libel action in Paris contains beambattle stations for their SOl program. AIDS 'hottest issue' in the personal attacks on the 1988 U.S. 62 Democratic presidential candidate states 18 Energia: Soviets take the that are unprecedentedly violent. lead in rocketry 63 Rights panel promises Marsha Freeman reports on the 31 Waldheim case bares independent inquiry into nature, and the awesome strategic modern Inquisition 'LaRouche case' defense implications, of the Soviet An independent international Union's new superbooster. 35 Aquino shows the IMF fist commission began sessions in Washington on May 26, and heard 22 How DOJ's Mark Richard 36 The next Soviet 'Sputnik': witnesses testify on an incredible political witchhunt. helped Moscow make the strategic radio-frequency booster break-out assault weapons 65 Vendetta against By Lyndon LaRouche. Lyndon LaRouche reports on how LaRouche is charged Soviet military technology is By Ralph Toledano of the nearing the point of catching a de Copley News Service. Grarnm-Rudmanized United States, strategically flat-footed. 69 Elephants & Donkeys 38 Irangate scandal in Mexico Ted Kennedy builds presidential may sink Wall Street's image. presidential favorite 70 National News 40 New tracks on Irangate's Ledeen

52 Italy-Spain arrests hit narco-terrorism

53 Malaysian leader beats challenge

58 International Intelligence

• �TIillEconomics

America's foreign subsidy comes to an end at Venice

by David Goldman

For the past year, the national finances of the United States financedalmost two-thirds of the U. S. government's borrow­ have depended upon the printing-presses of its trading part­ ing requirement for the quarter. ners; since the first of the year, exclusively so. Foreign pri­ "Such official financing cannot be continued indefinite­ vate investment in the United States, which must borrow ly," warned the dominant Treasury dealer, Salomon Broth­ $150 billion a year to finance its externaland budget deficits, ers, in a commentary last Oct. 10. "U .S. securities will have long since gave way to the ballooning of unwanted dollar to offer foreign investors adequate compensation for curren­ holdings in the official reserves of foreign central banks. EIR cy risks." warned in its Quarterly Economic Report of September 1986, However, to purchase these dollars on the foreign ex­ thatthe political agreements under which America's foreign change markets, foreign central banks created more of their subsidy might be financed were eroding. The summit meet­ own currencies, and sold them to private institutions in ex­ ing of industrial nations at Venice will bury them. change for unwanted dollars. $30 billion of yen, marks , and That much was already made clear by the Western leader other foreign currencies were thus added to the so-called most hostile to American interests, Italian Foreign Minister Eurocurrency deposit pool. Giulio Andreotti, who told Italian reporters that he would To precisely the extent that the Japanese, West Germans, proposea system of currency blocs before the Venice meet­ or others purchase unwanted dollars with their own curren­ ing. That is as much as to say: to eliminate the dollar as cies, they increase the exposure of their national banking principal international reserve instrument, or, the same thing: systems on the shaky offshore market, since every unit of to eliminate fo reign central banks' need to accumulate more their currency held offshore, constitutes a potential claim dollar holdings. upon their national banking system. Andreotti, to be sure,represents a fringe viewpoint, shared At a moment when the American banks are taking un­ only by the most anti-American "Central Europeans" among precedented crisis-measures to reduce their exposure, includ­ European bankers and the European Commission bureauc­ ing multi-billion-dollar additions to reserves against Third racy. But the reality of the internationalbanking crisis pushes World loan losses, it is ridiculous to presume that foreign such plans onto the international agenda, regardless of the central banks will permitthe banks they supervise to increase policy-intentof America's trading partners. their foreign exposure, and at an unprecedented rate. Their They accumulated $30 billion of additional dollar re­ massive supportoperation for thedolla r's market parity (and serves during the firstquarter of 1987, about equal to Amer­ for the U.S. Treasury), i.e. , thecreation of massive amounts ica's $34 billion trade deficit, by purchasing unwanted dol­ of national currencies with which to purchase dollars, nour­ lars on the market (foreign exchange market "intervention"), ished a drastic shift toward non-dollar-Iending in the Euro­ and purchasing U.S. Treasury securities with these dollars. markets. In other words, they financed the entire U.S. trade deficit Between 1980 and 1986, between 60% and 80% of each with these purchases, and, by purchasing Treasury securities, year's issuance of international securities was denominated

4 Economics EIR June 5, 1987 in U.S. dollars. However, between the last quarter of 1986 show that Japanese institutional investors sold $30 billion and the first quarter of 1987, the volume of dollar securities worth of U . S. securities, both stocks and bonds , during the in the nearly $200 billion per year market fell by about half, first quarter. Apparently, U. S. institutional investors picked from about 65% to about 38%. That corresponded to a shift up the difference. The Japanese institutions, by contrast, from the American syndicate managers' historic domination moved into OM, sterling, and Canadian dollar securities. of the market, to the emergence of the Japanese investment Large Japanese purchases of U . S. Treasury securities no banks as the dominant managers of new securities issues. In longer necessarily reflect any net movement of funds by 1986, Credit Suisse-First Boston ruled the Eurosecurities private investors into the U.S. market. Since mid-1986, ac­ market, leading 105 issues totalling over $20 billion. In 1987, cording to a recent Bank for International Settlements study, Japan's Nomura Securities came in first, with almost $8 Japanese banks began using borrowed dollars to financepur­ billion of new issues, while Credit Suisse-First Boston fell to chases of U . S. Treasury bonds, rather than selling yen to buy less than $4 billion. them. The BIS, the central bankers' central bank, reportedly That pinpoints European central banks' principal area of fears that the change has increased the vulnerability of the concern. The collapse of major portions of the Euromarket, U.S. bond market to a Japanese fund withdrawal, e.g., at the including the now-infamous $200 billion market in "floating point the dollar borrowing cost to Japanese banks outweighed rate notes," defines the epicenter of banking risk. Central the returnfrom holding U.S. bonds. banks concerned about the safety of their national banking How should America respond to Andreotti's proposal to systems will be forced to contain the expansion of such risk, eliminate the reserve role of the dollar?The trade data appear i.e., the involvement of non-U.S. institutions in the floating to support him. In 1986, West Germany became the world's of more yen, deutschemark, Australian dollar, or sterling leading exporter, shipping about $230 billion, overtaking Eurobonds. America's $220 billion for the first time. Japan's share of world trade, meanwhile, continued to grow, reaching the The decline of America's economic power level of 10% of world exports for the firsttime . The combined America's dominant position in world trade made the exports of Japan and West Germany last year were 100% reserve-roleof the dollar inevitable during the postwar years. greater than exports from the United States, against a 66% America's abuse of that reserve role, i.e., the employment difference in 1978. of the dollar as a rentier currency, buying up foreignproduc­ But U.S. dollars still account for more than 70% of total tion facilities and labor at cheaper than domestic rates, set world reserves, even though American exports are a mere the stage for the present crisis. Nothing backs the reserve third of the combined Japanese-German-American total. That position of the dollar today, except for the perception of makes clear why gold has reached a four-year high point in foreigngovernments that they must subsidize America's stra­ the range of $470 an ounce. During 1986, Japan bought half tegic roleas the defender of the Free World; to the extent that of the total Free World gold output, or about 608 tons, more the Reagan administration abandons that role, through such than triple the previous record of 197 tons in 1985. While devices as the so-called "zero option," the justification for official statements have claimed the gold is for a commemo­ the subsidy disappears. rative Emperor Hirohito coin, analysts believe that Japan The substitution of foreign official purchases of dollar may be building its central bank gold reserves. More impor­ securities, for foreign private purchases, reflects the strictly tantly, the Japanese government and financial institutions political-militarynature of supportfor the dollar. Some com­ believe that any gold in the hands of Japanese nationals con­ mentators, e. g. , former Council of Economic Advisers chair­ stitutes a sortof national reserve. man Alan Greenspan, woke up with a startto findthat foreign The time has gone when the United States can hold its central banks' reserve holdings financedthe entire U . S. trade trading partners to their responsibility to the alliance, while deficit during the first quarter of this year. In fact, the shift· destroying its own capacity to defend them. To follow the from private to public support was complete by the end of International Monetary Fund's advice, and throw America 1986. Foreign officialparticipation in U. S. auctions and cus­ into a Brazilian-style austerity program, would immediately tody holdings at the Federal Reserve had already grown to destroythe American credit system (see EIR . May 22, 1987, $38 billion during the firstnine months of last year, largely "President Reagan dives into the budget trap"). To attempt due to exchange-market intervention. During 1984, foreign to prolong the present non-policy, will erode the dollar's official holdings of U.S. dollars rose by only $8.5 billion, foreign position and American securities markets, leading to and by only $4 billion in 1986. Between January and June of a general financial crisis almost as quickly. Nothing short of 1986, these purchases rose at an annual rate of $42 billion, a global financial reorganization, including the restoration of and to an annual rate of $60 billion during the June-October gold backing to the dollar, a low-interest, long-termresched­ period. That rate doubled to $120 billion per year during the uling of Third World debt, and a concerted development firstquarter of 1987. program for the Third World, will avoid the long-overdue Unpublished data circulated by Morgan Guaranty Trust reckoning.

EIR June 5, 1987 Economics 5 case, a crash in October would not be absolutely certain, but it would be, at least, a very good guess. This forecast is based on the observation, that even now, President Reagan is clinging stubbornlyto belief in a "Reagan economic recovery" which never actually occurred. The Presidentbelieves in that nonexistent "recovery" for ideolog­ ical reasons; he wishes, desperately, to believe that his eco­ nomic policies have been successful ones. As long as the official line of the administration is to stick to the "successful economic policies" of the past five years, the Reagan admin­ istration is likely to stick to those policies. This would tum the Venice "summit" into a disaster, destroying the last bit of Global financial crisis confidence in the U.S. dollar in international financial mar­ kets. Under those conditions, an October crash would be very predicted for October probable.

The case of Egypt's loan H. Jr. byLyndon LaRouche. Take, for example, one of the most recent developments on the international financial markets. The way in which a The fo llowing release was issued on May 26 by the news small loan was granted to Egypt by the international bankers' bureau a/the LaRoucheDemocratic Campaign . club called the "Club of Paris." Egypt was blackmailed into signing what is called an Leading European financial officials have warned my asso­ "IMF letter of intent." Egypt was told, all credit would be cut ciates. that we should expect to see the beginning of the off, unless it signed that letter. The letter required the consent world's biggest financial crash by October of this year. My of the Egyptian government to devaluing its currency, and comment on that forecast: It might not occurin just that way, shutting off the highly successful land-reclamation projects but, if the Reagan administration continues its present poli­ which are the only hope for a basic solution to the problems cies, it is certain that the world's economic situation will of Egypt's economy. Reluctantly, Egypt signed, and was becomemuch worse than it is today over the summer months. then promptly given new lines of credit. Egypt received, I don't welcome this worsening of the situation. It will however, much less than it lost by devaluing its currency, the cause enormous suffering, for one thing. Also, in the defen­ pound. dant's motion which the Soviet government submitted to a This has been the pattern of U. S. support for IMF "con­ Paris court last Friday, Moscow makes implicitly clear that ditionalities" policy. The key margin of increase of the U. S. it will react with effortsto assassinate me as soon as possible, trade-deficit, has been the collapse of U.S. exports to , and for fear that such a crash might bring me at least close to increasing importsfrom, developing nations which have sub­ gaining the 1988 Democratic presidential nomination. mitted to the terms of such "conditionalities." The "condi­ Nonetheless, in history, usually, only the eruption of tionalities" have, in each case, turneda poor debt-repayment terrible events brings governments and peoples to their sen­ possibility by these countries, into an impossibleone , in each ses. It is when the bombs drop on London or Pearl Harbor­ case. or, something like that-that the English-speaking peoples This affects the internal economy of the United States seemto come out of foolish dreaming, and awaken to reality. directly. Take for example, the Reagan administration's re­ It is probable that only a growing sense of the reality of the action to the drop in OPEC petroleum prices. AIDS menace, combined with a financialdisaster, combined Continued production of U . S. petroleum requires a price withawakening to the realityof the Soviet threat, will get the of about $24 a barrel. Without that U.S. petroleum produc­ majority of U.S. citizens out of their present wishful stupor tion, we are dependent upon increasingly uncertain flows of beforetheir TV sets. cheaper oil from the Persian Gulf's war-zone. Instead of Whether the great financial crash of 1987 erupts by Oc­ putting a price-triggered import charge on imported petrole­ tober, or later, will depend upon what leading governments um, to defend domestic petroleum production, the U.S. gov­ do at the international monetary "summit" held in Venice on ernment decided to go with dependency on cheaper Persian June 12. Those bankers who are expecting a crash by Octo­ Gulf oil. This, combined with the U.S. Agriculture Depart­ ber, make that forecaston the basis of assuming that the U.S. ment's policy of collapsing U.S. agriculture, was the cause government's role at Venice will be a continuation of the of the financial crisis among the regional banks of Texas, foolish international monetary policy which the Reagan Oklahoma, Louisiana, Wyoming, Montana, and so forth. administration has followed over the past five years. In that Our government's follies � international monetary poli-

6 Economics ElK June 5, 1987 cy usually come home to cause suffering inside the U.S. A "zero-economic-growth mafia" inside the IMF and Currency Rates· World Bank bureaucracies, acting with U.S. government support, has beencollapsing the intemal economies and world The dollar in deutschemarks trade of both developing and Western industrialized nations, New York lale afternoon fixing while piling up the financial obligations of both developing and industrialized nations. We have been increasing nations' 2.10 obligations to pay debt, while destroying their means for paying that debt. 2.00 Inside the United States itself, one of the mechanisms 1.90 which has been used to prop up apparent consumer purchas­ es, has been a process of increasing average consumer debt, 1.80 while average consumer income fell. This has been the lead­ � � � T-" ing basis for President Reagan's wishful beliefin an econom­ 1.70 ic recovery-consumers going deeper into debt to maintain 4/7 4/14 4/21 4/28 5/5 5/12 5/19 5/26 ordinary levels of consumer spending, while average, after­ inflation levels of household income have been falling. Now, The dollar in yen the growth of consumer debt has reached approximately a New York lale afternoon fixing saturation-level. Meanwhile, the prices on the world's stock exchanges 170 have zoomed into the financial stratosphere. Present stock prices are way, way above anything justified by the price­ 160 earningsratio. The bond markets have been sliding down for ISO weeks. About 1,500U.S. banks are in bad trouble, and more than 200 in immediately serious trouble. Any significantrise 140� � - in interest rates could sink as much as half of the savings institutions, and could blow out the banking system gener­ 130 ally. If this inflatedfinancial structure collapses significantly 417 4/14 4121 4/28 5/5 5/12 5/19 5/26 in any one sector, all sectors could blow. Any collapse would The British pound in dollars reveal quickly, that most of the values of financial paper ".. Y " Irk • lal. aflerntHln fixin� depend upon mere "hot air," such as so-called "junk bonds" or similarly dubious bookkeeping accounts. 1.70 When the system blows, more than half of the more than - - r--- 1'1 $13 trillion of hard-core debt obligations could blow, more 1.60� J.-r than half of this inside the United States. The problem is approximately 20 years of bad monetary I.SO and economic policies by all Western industrialized nations, excepting Japan. (We sometimes complain that Japan is being 1.40 "unfair," because it refuses to be as stupid as the governments 1.30 of other industrialized nations.) 417 4/14 4/21 4/28 5/5 5112 5/19 5/26 Now, during recent weeks, many of the world's leading bankers have awakened to the seriousness of the situation. The dollar in Swiss francs Except for the governments of Japan and of France's Prime Now York lalo afternoon fixing Minister Jacques Chirac, the governments, and political par­ ty leaderships of the other Western industrialized nations are 1.80 still as much in dreamland on the economic situation as they are on the subject of the AIDS pandemic . 1.70 Technically, on any day that the U.S. government came 1.60 to its senses, this crisis could be brought under control. The crash of 1987 is not inevitable. However, unless the govern­ I.SO1-0.... ments come to their senses, it is inevitable. During the Venice I� ,...... monetary "summit," and during the weeks following that, 1.40 we shall see whether the crash occurs as leading European 417 4114 4/21 4128 Sl5 5112 5/19 5/26 bankers now suspect it will.

EIR June 5, 1987 Economics 7 Deregulation and 'recovery' bring trucking to a state of emergency by Marcia Merry

Any average motorist has recently experienced some episode On May 13, the crisis was politely described in testimony on a U.S. highway, where a giant, speeding truck bears down to the Senate, by Robert V. Brown, president of Suburban upon your car, and you wonder whether the truck driver is in Transfer Service, Inc.: "There is generally a trend in the control. Then comes fear and cursing all around, and occa­ trucking industry toward reduced profits. Prior to 1978, the sionally, injuries and death. However, the full scope of the median profit margin was approximately 3%. From 1978-85, nationwide trucking, and general transportation, crisis must the industry had not been able to achieve profits greater than begrasped by the citizen and lawmaker soon, or else both the 2.2%. Only through fuel price decreases was the industry highway accident rate will soar, and the rate of collapse of able to achieve a greater profit margin in 1986. the logistics capacity of the nation will sink to the depth of a "There is a relationship between smaller motor carrier security crisis. profit margins and unsafe motor carrier operations. These In May, the Senate Subcommittee on Transportation Ap­ indicators portendthe possibility of further increases in truck propriations took testimony on the state of the trucking in­ accidents in 1986 and future years, unless strong, positive dustry in the country, and on air, rail, water, and other sec­ actions are taken quickly by industry and government." With tions of the national transport grid-ports, airports , truck the fuel price increases to be expected over the summer, terminals, etc . The picture was grim. Recommendations were disaster lies ahead. solicited on what to do, but no emergency actions were ini­ Under these kinds of financial strains, truckdrivers are tiated. The lawmakers, and many of the industry spokesmen pressured to break the law. They are worn out, and demor­ as well, are too inhibited by the atmospherics of Gramm­ alized. Instances of the use of dope and alcohol are more Rudman, to even think of the option of restoring productive prevalent. There are still thousands of model drivers across economic activity, and the massively improved transporta­ the country who can each log over a million miles without tion and other infrastructure required to go with it. any kind of mishap, but the general condition of drivers is The following presents some of the information given in worsening. The decline in quality of food at the truck stops testimony to the Senate by the American Trucking Associa­ is even an indicator of degradation. Truckers don't have the tions, and other information from the Commerce Department money to spend to eat well. and truckers . The need for emergency measures is evident. At the same time, hundreds of towns-especially in the rural Midwest-are without any bulk shipping service, nei­ Safety ther rail nor truck. Small businesses have a more and more Truck accidents reported to the office of Motor Carriers restricted set of potential locations because of the shrinkage increased 16.5% in 1984, and increased another 6.3% in of rail service, and now of truck service, due to deregulation 1985, and, by latest estimates, accidents are increasing at an and depression. even faster rate at present, according to the safety records Table 1 shows the marked increase in the number of kept by the Department of Transportation (DOT). trucking concerns authorized by the Interstate Commerce There is turmoil in the industry , because of the cutthroat Commission since the 1978 deregulation of the industry. competition prevailing since deregulation went into effect in However, this apparent growth was characterized by major 1978, and also because of the worsening economic condi­ shiftsin routes, cutthroat discountsin rates, financialstr ains, tions under the "Reagan Recovery." There is a relatively mergers, bankruptcies, fatal accidents, and decreasing ser­ shrinking volume of standard freight to be hauled, for ex­ vices to remote, or otherwise U:ss-traveled areas. ample, steel and heavy manufactured products. Almost all the regular route common carriers of 20 years

8 Economics EIR June 5, 1987 tercity trucking companies failed.

TABLE 1 Table 2 shows a number of features of this worsening Number of ICC-authorized motor carriers· situation over the last four years. Truck freight volume car­ increased sharply after deregulation ried increased over the period, although declining from 1984 to 1985. Revenue increased as shown; however, also increas­ Carriers Year Carriers Year ing were costs, not shown, but increasing at a much greater 1972 16,000 1980 18,500 rate than revenues. One of the largest cost factor increases 1973 16,000 1981 21 ,500 comes from insurance premiums. 1974 15,500 1982 26,000 The General Accounting Office, in a recent study for 1975 17,200 1983 27,500 Congress, found that almost 1,300 trucking companies ceased 1976 17,300 1984 31 ,000 operations in 1985 because of insurance problems. More than 1977 17,500 1985 34,000 12,000 policies were cancelled. As the Commerce Depart­ 1978 17,700 1986 36,000 ment's 1987 Industrial Survey reports: "Most cancelled car­ 1979 18,000 riers were able to obtain replacement coverage , even though four out of five of the insurance companies that had been writing most industry coverage have declared bankruptcy. 'Numbers are rounded off to show trend. The [GAO] study revealed that average premium rates rose Source: Commerce Department. 72% in 1985 and were expected to increase by an average of 29% during 1986." Nationally, hourly earningsfrom trucking increased only ago have gone out of service. Only the top 10-15% have 25 cents an hour over the four-year period, much less than survived, mostly because they maintained established routes the increase in living costs. and had been well-managed, for example, Carolina Freight Some trucking innovations were introduced during this Carriers, OverniteTransporta tion, and Consolidated Freight­ time period, but not enough to alter the general picture of ways. deterioration in overall trucking capacity. Productivity im­ According to Dun and Bradstreet, motor carrier business provements took the form of permitting 80,OOO-pound, twin failures increased 9.6-fold between 1978 and 1986. In 1980, 28-foot trailers along with 48 ft .l102 in. trailers, on all inter­ the Motor Carrier Act created even more loss of income and state highways. These vehicles were mandated by the Surface financial pressure by imposing higher taxes, and raising busi­ Transportation Assistance Act of 1982, which promised pro­ ness costs, while deregulated freight rates were being slashed ductivity improvements in exchange for higher highway user to compete for carrying relativelya stagnant volume of freight. taxes (the taxes almost doubled) . The Act also promised a Dun & Bradstreet data on intercity trucking report that designated highway system with adequate access arrange­ 200 truckingconce rns, with combined debts of $258.8 mil­ ments, which has not been fulfilled, especially under the lion, went under during the firstthree months of 1986. Fail­ "recovery" rationalization dominant in Washington, which ures of the same category of company numbered only 67 for has permitted large parts of the national rail, air, and road the whole year in 1979, then went up to 125 in 1980. The systems to attenuate and break down. number of failures rose each year thereafter, reaching 714 in Despite the existence of a few hundred impressive trucks 1985. From 1980 through March 1986, a total of 2,569 in- nationally, the average truck is aging and in disrepair. Trucks placed out of service by federal and state inspectors for seri­ ous defects increased from 23 % in 1984 to 41 % at a national truckinspection in September 1985. The percent�ge of motor

TABLE 2 carriers with unsatisfactory safety ratings is highest among Local and long distance trucking ton miles those that have most recently received operating authority are increasing more than the rate of trucking from the Interstate Commerce Commission, and the number earnings and employment, 1984-87 of these is steadily increasing. Of course, the companies with the lowest profit ratings have the greatest prevalence of un­ Cargo intercity Average satisfactory safety ratings. ton miles Revenue hourly Year (billions) ($ billions) earnings Employment The trucking industry accompanied its report toCongress with lobbying for assistance for trucking, as opposed to rail, 1984 605 195.2 10.67 1 ,076,000 1985 603 205.5 10.71 1 ,103,000 air, or water transport. However, each system is in the same 1986' 614 207.0 10.85 1,135,000 devastating decay. What is required is a massive improve­ 1987' 637 215.4 10.92 1,1 62,000 ments campaign to locate and build new break-bulk points, and distribution and handling systems, integrating all types

'Estimates of freight shipping and handling, and planning for the most Source: Commerce Department. modem magnetically-levitatedrail systems for peopleas well.

EIR June 5, 1987 Economics 9 Bradley plan for Third World debt relief ignores reality, offers pittance by Peter Rush andDennis Small

At a June 29, 1986 bankers conference in Zurich, Switzer­ flight; c) allowing free-floating exchange rates; d) enforcing land, Sen. Bill Bradley (D) of New Jersey surprised col­ fiscal discipline in government spending; e) encouragment of leagues and the Reagan administration by unveiling what he internal investment. The senator's office explains that such called a new approach to dealing with the enormous foreign reforms would be reviewed on a yearly basis by the major debt of Third World countries, especially in lbero-America. private and government creditors, to determine how "credi­

He reiteratedthe proposal at the U. S. Congressional Summit ble" they are . Interest rate relief would be granted differen­ on Debt and Trade, held at the Waldorf Astoria hotel in New tially, of anything from 0 to 3 points, based on these reviews. York on Dec. 4, where he amplified his concept of "debt Although Senator Bradley's office has made few quanti­ relief," which he proposed replace Treasury Secretary James tative details of his proposal available, they assert that the Baker's policy of "pour[ing) in new money that adds to the measures shouldbe appliedfor a three-year period, and would debt." add up to $42 billion in debt relief over that time period, for Bradley, in a third speech to the National Press Club on the 10 largest debtors in Ibero-America. The Bradley plan July 24, 1986, added, as a further argument for his plan, the has no provisions one way or the other on the subject of new fact that, as a result ofthe debt crisis, Ibero-American imports credits, but assumes a normal flow will returnonce the Third fromthe United States have plummeted since 1982, costing World economies are stabilized. the United States 400,000 lost jobs from falling exports, and another 400,000 in potential jobs that America didn't get Money woefully inadequate because the lbero-American economies stopped growing. Bradley's proposal purports to have two principal objec­ At face value, Bradley's proposal represents an effort to tives. The first is to lessen the debt burden and to restore go beyond existing disastrous IMF and Reagan administra­ growth to the Ibero-American economies, so they can reverse tion plans to deal with the Third World debt crisis. But it falls their presentslide into social andeconomic catastrophe. The far short of what is minimally required to restore growth to second is to create, in this way, a reinvigorated exportmarket these nations and to provide them a long-term means to even­ for American goods. Will it achieve this? tually repaytheir debts. Bradley has posed the right question, Taking the second goal first, Bradley's proposal would but he has not supplied the correctanswer . unfortunately do little to restore lbero-American imports from Bradley summarized his three-year proposal for Third the United States or elsewhere. If the entire $10 billion yearly World debt as follows: "saving" in lower interest rates (3% on $320 billion in lbero­ 1) Forgive 3% of theprincipal owed to banks and govern­ American debt to banks and governments) were used to in­ ments in each of three years; creased imports, it would only restore one-quarter of the 2) Grant up to 3 points of interest rate relieffor each of nominal value of imports lost since 1981. In 1981, Ibero­ threeyears , on outstanding debts to banks and governments; America imported $103 billion in goods, while in 1985 the and figure had dropped to $63 billion, a 39% decline. If the nearly 3) Use these concessions to get debtor nations to imple­ 20% inflation in the dollar since 1981 is taken into account, ment "structural adjustments" of their economies. the present real (constant dollar) value of Ibero-America's Bradley emphasized that this debt relief should be of­ imports would be only $53 billion-about half the 1981 real ferred to debtor countries on condition that they implement value. If $10 billion per year were restored to Ibero-America, "growth-oriented economic reforms," including: a) liberal­ this would be useful; but even if it were entirely applied to izing traderestrictions to enhance imports; b) reverse capital importing goods from the United States (ignoring Europe,

10 Economics EIR June 5, 1987 Japan, and other suppliers), it would not begin to revive U.S. export markets to their pre- 1982 levels. In fact, afterthe three. FIGURE 1 years of the Bradley plan were over, lbero-America would lbero-America's annual debt service still be importing less than it was a decade earlier. In point of payments: three options 1983-91 fact, it would require three times as much net debt relief as (billions of dollars) the Bradley plan proposes to simply restore Ibero-America's earlier, inadequate importing capacity; it would take about 50 10 times as much relief for the continent to be able to import what it actually requires in order to industrialize. 40 In his Zurich speech, Senator Bradley correctly stated that "We must stop the perverse flow of resources from the 30 poorest countries to the richest." But Bradley's Plan won't do that. In 1985, Ibero-American exports exceeded imports 20 by $34 billion ($38 billion in 1984, $32 billion in 1983), representing a net outflow of tangible wealth of this magni­ --- - 10 \--- - - tude. Bradley's entire package would reduce this by less than .... Garcia solution a third, leaving almost $25 billion of annual net outflow of resources "from the poorest countries to the richest." And I I I I I j iii this estimation doesn't even take into account the massive 1983 1984 1985 1986 1987 1988 1989 1990 1991 capital flight that has plagued Ibero-America over the last decade: Over $100 billion has been looted in this fashion over Bradley does cite the severe economic crisesthe leading the past eight years. Ibero-American economies are in, but he vastly understates But the picture is wors� still. Although Bradley mentions the magnitude of the problem. He says Mexico has suffered in passing the fall in prices for Third World exports, he fails only 8% decline in living standards over the last few years, to note that lbero-America has suffered just as cruelly from whereas the true figure is closer to one-third. Again, the falling terms of trade as it has from excessive interest rates. deficitin unmet social needs of the populations of the conti­ Since 1981, the average price of Ibero-American exports has nent requires hundreds of billions of dollars just to restore fallen 17% in relation to the prices of its imports.This means living standards to levels of 1980, a need overlooked by that in real terms (based on 1981 prices), lbero-America Bradley's plan. exported $19 billion more in 1985 than the dollar value in­ dicates, or $110 billion, against exportsof $57.5 billion, for The Garcia solution a whopping $52.5 billion yearly net outflow ofreal wealth. In his Dec. 4, 1986 New York speech, Bradley made Against this, Bradley's assistance is a pittance. conspicuous reference to the ostensibly commendable "re­ forms"of Ecuador and Costa Rica, while studiously omitting Reviving the region's economies any reference to the most important success story on the Bradley's proposal is just as wanting with respect to re­ continent, Peru. This despite the fact that Peru has accom­ viving the economies of lbero-America. First, he cites the plished exactly what Bradley said countries ought to do to Marshall Plan for postwar Western Europe as an example, a warrantdebt relief: Peru has ignited 8% annual GNP growth, plan which permitted Europe to run substantial net trade with over 20% growth in ml!flufacturing, while halving infla­ deficits formany years. But Bradley's plan, as noted above, tion, and provided 50% increases in real income for the still leaves lbero-America exporting much more than it im­ poorest segments of the population. ports, a prescription for failure of any economic recovery The way theGarcia government of Peru has done this is plan. No economy in the world ever developed without a by restricting foreign debt service payments to a maximum sustained period of net imports of capital and other goods of 10% of annual exportearnin gs, and productivelyinvesting needed for development. this wealth in the domestic economy. If a similar approach Second, Bradley's proposal ignores the damage done to were taken by all the countries of lbero-America, truly sig­ the structure of the Ibero-American economies since 1981. nificant debt relief could be achieved: $27.2 billion peryear , Since that time, there has been a net cumulative outflow of or about three times the relief provided by the Bradley plan. $109 billion in tangible wealth (not counting capital flight A close examination of the Bradley plan thus demon­ and other monetary drains) in the form of trade surpluses strates that the level of debt servicepayments it implies hardly since 1982, and a further$95 billion in real loss due to falling differs from that of other more "orthodox" debt policy pro­ reiative export prices, or more than $200 billion in directly posals, such as that of Henry Kissinger, as Figure 1 indi­ looted real, physical resources. Against this drain, Bradley's cates. Only theGarcia solution provides a realanswer to the proposals are a drop in the bucket. debt-strapped nations of Ibero-America.

ElK June 5 , 1987 Economics 11 Andean Report by Gretchen Small

Banker Ulloa faces criminal trial Other officials named in the The Peruvian friendof David Rockefeller and the Socialist Chamber's report are already facing Internationalis boxed into a corner, and threatens "war." trial. An arrest order was issued May 23 for Banking Superintendent Juan Klingenberger (charged with extor­ tion in the Bancoper case), after he failed to show up at a hearing into Peru's Chamber of Deputies voted collapsed, Bertelloturned to his good Bertello's case. on May 22 to seek criminal proceed­ friend Ulloa, then economics minis­ Ulloa is getting worried. "It is a ings against former economics minis­ ter, for a bailout. The money was monstrosity to attempt to open judicial ters Manuel Ulloa and Carlos Rodri­ shelled out of the Treasury on the pre­ proceedings against those who were guez Pastor, for their role in a govern­ tense of "saving localdepositors ," but my loyal collaborators when I was ment bailout of the failed Commercial went straightout of the countryas "re­ economics minister," he screamed. "If Bank of Peru (Bancoper) in 1982-83. payments on foreign loans." they want war, they will get war. " On The Chamber's action was based on For the past month, the Bancoper television, he lashed out at Garciafor the final report of its Special Investi­ trial has dominated Peruvian atten­ "political vengeance" against the pre­ gatory Commission into the Bancoper tion. Congressional aides dug up doc­ vious government. collapse, which found the two offi­ uments; officialsfrom the last govern­ He finallyforced former President cials guilty of "crimes against the pub­ ment and private bankers were called Fernando Belaunde to come to his de­ lic faith, abuse of authority, misap­ in to testify before the Chamber's Spe­ fense, after a month of silence. The propriation of funds, and extortion. " cial Commission. attack on Ulloa is an attack on the en­ "It is time that the people get to The 29-page report which sum­ tire Popular Action party , Belaunde know the dark world of bank opera­ marized the commission's findings charged on May 26, adding vague tions, now transformed into a gangs­ specified that Ulloa had intentionally threats that this "lowest kind of polit­ ter-like world, where operations are altered the truth, in his efforts to se­ ical vendetta . . . the product of gutter ruthless, and guarantee only the inter­ cure the bail out of Bancoper. Ulloa politicians"may tum into the Garcia's ests of the owners of the banks," the and Rodriguez intervened "with unu­ government"suicid e." head of the Special Investigatory sual interest, excessive and foreign to Belaunde cried that his cronies Commission, the ruling APRA par­ their specific functions," even though should be treated with "deference," ty's Hector Vargas Haya declared on they knew the bank was unsalvagea­ because they had "handed over pow­ May 26. ble, "causing grave damage to the er" to Garcia. Giving a French touch The impending trial of Ulloa, a State" by siphoning off3.5 billion soles to Ulloa's threats of "war," Belaunde former Wall Street banker turned pol­ for unsecured loans to foreign credi­ promised, "Si vous voufez fa guerre, itician (lately, the darling of the So­ tors, the report concludes. vous aurez fa guerre," a phrase, he cialist International), and Rodriguez Because the report of the deputies said, used by "gentlemen" when they Pastor, a top executive in Wells Fargo is a constitutional motion, further are provoked ! Bank, is no "Peruvian" affair. The congressional action is required be­ Belaunde's outrage provoked Bancoper case sets a precedent for all fore the case goes to the Supreme laughter in Lima. His government of lbero-America, assembling court­ Court. On May 26, the deputies voted didn't "hand over power"; they were admissible evidence on how the local by a wide margin, to form an accusa­ defeated by a landslide, receiving only oligarchyand internationalbankers il­ tory commission, which has 15 days 6% of the vote in the 1985 elections ! legally used foreign debt contracts to to study the Investigatory Commis­ Belaunde is confusing "courtesy loot the Treasury . sion's findings, and formalize charges. with complicity," Garcia's press sec­ Under the direction of its owner If the charges are accepted by the retary Victor Tirado answered on May Luis Bertello (now in jail awaiting Chamber, that committee will take the 27. "We are going to war, but against trial), Bancoper contracted foreign case to the Senate, the body empow­ immorality, corruption, drug traffic, loans, to relend them largely to Ber­ ered to lift Ulloa's parliamentary im­ subversion, and the complicity of those tello's companies, manyof which only munity (he is now a senator), and send who are desperate to stop the demo­ existed on paper. When his shell-game the case to the SupremeCourt. cratic process. "

12 Economics ElK June 5, 1987 Banking by David Goldman and William Engdahl

Slim prospects for a bailout Kenen, an adviser to the International Is Citibank gambling onfederal guaranteesfor "secondary Monetary Fund, and co-founder of the market" Third World paper? "Group of 30." He argued that an of­ ficial institution backed by industrial countries should offer its paper to banks in exchange for Third World loans, paying them 80¢ (he now sug­ gests 60¢) on the dollar. The official institution would then try to collect a fraction more than that from the debt­ New York's Citicorphas been tell­ However, some European bank­ ors. ing European bankers that its $3 bil­ ing sources envision a massive expan­ John Makin of the American En­ lion addition to reserves against losses sion of the market, based on federal terprise Institute promoted a similar hinged on a deal with the U.S. govern­ guarantees. "We have information that scheme in the March 25 New York ment to offer some form of federal a deal has been worked out" to offer Times. guarantee to secondary-market trad­ official guarantees for heavily dis­ But Professor Kenen warned re­ ing of Third World loan paper. counted Third World loan paper, said cently that implementation of any such On May 21, Citicorp chairman a spokesman for one of West German­ plan would have to wait for the next John Reed said he planned to reduce y's largest banks. "We are very happy administration, given the present state the bank's Third World loan portfolio with the Citibank move. It will now of affairs in Washington. by a third, or about $5 billion, over allow the creditor banks to be more In the short run, the World Bank the next fiveyears, via debt-for-equity tough with debtors like Brazil. " is the only available candidate to make swaps, loan sales, and so forth. A well-informed British banker a market for "secondary trading" in He estimated that $1 billion would was more cautious. "The scheme is Third World debt, Kenen suggested. be swapped for equity in debtor coun­ highly risky," he said. "It may well be Citibank's intention to off-load Third tries-assuming the countries are beyond the time that President Reagan World debt at a discount on the sec­ willing to sell Citibank anything it can deliver on anything," especially ondary market is unworkable without wants. something as politically hot as a bail­ the participation of some officialinsti­ The debt-for-equity scheme has out of the big New York money center tution, since the present market trades been around for a long time, and debt­ banks during a pre-election period. $5 or $10 million at a time. Given the or countries' willingness or ability to There are two major, possibly in­ present budget crisis, the U.S. Con­ play along with it has diminished, if surmountable, obstacles. First, Con­ gress will not vote up U.S. govern­ anything, since Henry Kissinger first gress must approve the scheme. Sec­ ment guarantees for such paper, or floated it five years ago. Even less ond, as some European bankers ar­ funding for an agency to buy it. The promising, as matters stand, is the so­ gue, Washington must persuade Jap­ only institution capable of doing this called secondary market in Third anese and European financeministries now is the World Bank, which might World debt, where regional banks now to pick up some of the burden. put in a few hundredmillion dollars of trade a few million dollars of Third "But Germany is not about to go "seed money" to make a market in World debt paper at a time. for this bailout. It's completely with­ such paper, encouraging large banks The present "secondary market out historical precedent for the u.S. to come in at the billion-dollar level permits smaller regional banks to a) government to bear such responsibil­ by its simple presence, he adds. get out of such paper entirely, b) di­ ity for private bank debt, not even dur­ Fierce objections from the Japa­ versify risks, or c) consolidate risks, ing the 1930s," one banker said. The nese, who want the World Bank to in order to eliminate certain countries Continental Europeans and Japanese lend for development, and from debt­ entirely from portfolio, and save on have already written off most of their or nations themselves, make the World the expense of participation in credi­ developing-sector loans, in contrast to Bank's role a politically explosive one. tors' committees; this they do by bart­ the British and Americans. Should it trade in discounted Third ering loans. It couldn't absorb $1 bil­ In essence, the scheme under dis­ World paper, it might end up persuad­ lion of Citibank or anyone else's pa­ cussion revives the March 1983 pro­ ing major debtors to immediately re­ per. posal of Princeton University's Peter duce their payments of debt service.

EIR June 5, 1987 Economics 13 * * * * * * * * * -I:> * * * * * * * * *

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Just a touch of blood hands or any mucous-membrane ex­ The Centers/or Disease Control has again proved itself posure. However, she had dermatitis impartial-willing to risk anyone's life. on one ear and may have touched it. She washed the blood off herself and the machine several minutes after the As was inevitable the Atlanta Cen­ fore the incident and was negative for spill. ters for Disease Control was recently HIV antibody by EIA. She donated The patient undergoing the apher­ forced to report three cases of health again 16 weeks after the incident and esis had denied risk factors for HIV care workers who were infected by was positive for HIV by EIA and infection. However, a blood sample skin contact with blood from AIDS­ Western blot. from the patient was positive for HIV infected patients . Just as inevitably, In the second case, a female phle­ antibody by EIA andWestern blot the CDC officials downplayed the signif­ botomist was drawing blood from an next day. The technologist's HIV­ icance of the cases and even managed outpatient with a suspected HIV infec­ antibody tests werenegative fivedays to throw in an argument against AIDS tion when the top of the tube flew off and six weeks after exposure. Eight testing for hospitalized patients, thus and blood splattered around the room, weeks after the exposure, she had a demonstrating their impartiality: They on her face, and in her mouth. She was flu-like illness with fever, myalgia, are just as willing to risk the lives of wearing gloves to protect her hands, diarrhea, hives, and a blotchy red rash fellow health care professionals as and was wearing eyeglasses, so she on her arms and legs. This illness re­ those of the general public. did not think she got any blood in her solved after a few weeks. Three In the first case, a female health­ eyes. She had facial acne but no open months after the incident, she was care worker in an emergency room ap­ wounds. She washed the blood off im­ positive for HIV antibody by EIA and plied pressure to a needle puncture site mediately after the exposure. Westernblot . to stop bleeding during an attempted The outpatient's blood sample was Despite efforts by the CDC to cardiac resuscitation. During the pro­ positive for HIV antibody by EIA and downplay the significance these of rare . cedure, she may have had a small Westernblot , and a hepatitis B surface cases, the fact remains that three peo­ amount of blood on her index finger antigen test was negative. The phle­ ple are now documented to have be­ for about 20 minutes before washing botomist's EIA was negative the day come infected by touching infected her hands. Afterwards, she may also afterthe incident and again eight weeks blood, without any needle-stick inju­ have assisted in cleaning the room, but later. ry.Si nce there is evidence that super­ did not recall any other exposures to When she donated blood nine ficial skincells can be infected by HIV the patient's blood or body fluids. She months after the exposure, she was there is nothing intrinsically surpris­ had no open wounds, but her hands positive for HIV antibody by EIA and ing about these cases. The potential were chapped. She was not wearing Western blot. She presently has no for transmission by skin contact with gloves during this incident. symptoms. She denied having any infected body fluids exists and, as the The patient died and an autopsy sexual contact during the previoustwo infection continues to spread in the examination identified Pneumocystis years, ever using drugs intravenously population, such cases will occur with carinii pneumonia, and a blood sample or ever receiving a transfusion. She increasing frequency, in spite of the was positive for HIV antibody by en­ has not had any needle-stick injuries denials of the CDC. zyme immunoassay (EIA) and West­ in two years. This is the mOst probable expla­ ernblot methods. In the third case a female medical nation of thecase .in Dusseldorf, West Twenty days after the incident, the technologist was operating an apher­ Germany, in which infection was health-care worker became ill with fe­ esis machine (a device to separate transmitted froma transfusion-infect­ ver, myalgia, extreme fatigue, sore blood components) in an outpatient ed child to his uninfected brother by throat, nausea, vomiting, diarrhea, a setting. While attempting to correct a skin contact with saliva. 14-pound weight loss, and general­ problem that developed during the The continuingfailure of the CDC ized lymphadenopathy which her phy­ procedure, blood spilled, covering and other agencies to confront the sician diagnosed as a viral syndrome. most of her hands and forearms. She growing evidence of casual transmis­ That illness lasted three weeks. She was not wearing gloves. She does not sion will have a growing body-count had donated blood eight months be- recall having any open wounds on her associated withit.

EIR .. JpJ:le 5, 1987 Economics 15 BusinessBrief s

Inte17Ultio1llll Debt war, the United States and Europe should ing trade with the United States. Washing­ attempt to reach an international agreement ton's "arrogant, high-falutin' actions, [such] Debtors demand Ve nice on world markets , Lacombe stated. as embargoes [and] clamping down on ex­ port of all kinds of technologies," have discuss solution caused the Soviet Union to give up trying to AIDS encourage trade with the United States, and Eleven indebted lbero-American countries to reorient its efforts instead to Japan and have issued a call asking that a solution to WHO opposes any Western Europe, said Yakovlev. "You made the debt problem be discussed at the Venice us do it," he said. summit of the top seven industrial nations. mass screening "I think Europe is more and more inter­ Italy's Corriere della Sera reported that ested in detente and establishing good rela­ the call was sent as a telex to Italian Premier The World Health Organization (WHO) has tions withus. I believe that the Soviet Union Amintore Fanfani by the President of Uru­ come out strongly against AIDS screening and Japan are natural trade and economic guay, Giulio Maria Sanguinetti, who "for­ programs now advocated in several coun­ partners. I believe that the Japanese under­ mally asked the seven meeting in Venice on tries, because these could be "miscon­ stand this, too." June 8 to make concrete commitments." ceived, intrusive-eventhreatening funda­ "For the poorer, and particularly the sub­ mental human rights-and most likely both Saharian countries," writes Corriere, "a 10- extremely expensive and very ineffective," Comecon year moratorium is being considered, fol­ WHO Director Dr. Jonathan Mann stated. lowed by rescheduling for a period of 20 'These kinds of programs can have a Gorbachov demands years. Italy will propose to the summit the negative impact on overall AIDS-preven­ creation of a 'critical mass' of fresh money tion and control work by divertingresources loot from Romania for other countries." away from education programs and other HIV prevention activities." Mann was sum­ Mikhail Gorbachov, during his two-day ming up a meeting of 21 scientists, virolo­ stopover:in Bucharest on his way to the East Agriculture gists, and physicians from as many coun­ Berlin Warsaw Pact summit, demanded that tries who drew up criteria, covering 50 dis­ Romania integrate its economy more closely French reject tinct issues, that the WHO claims should be with that of the Soviet Union, according to met before any resort to screening. a May 26 Radio Moscow report . His talks OECD policy "Screening to many people seems to be with Nikolai Ceausescu and other Romani­ a simple answer to a very complicated ques­ an officials centered on bilateral relations, French Agriculture Minister Fran�ois Guil­ tion," he intoned. "Unfortunately, screen­ including "expanding economic and scien­ laume, in a statement released in Paris May ing is itself a complicated partof an answer, tific-technological cooperation" and "ex­ 25 , was highly critical of the agriculture pol­ a reflex action, to a complex problem." panding bilateral trade, which is already icy being pursued by the OECD nations, a slated to grow by 80% during the 1980s . . . policy whose aim is a reduction of food out­ but, 80% should not be seen as the lim­ put. Guillaume chargedthat this policy does East-West Trade it ....The rate of growth should be even not take into account consumption needs of higher," said Radio Moscow. the developing countries, which could be­ Soviets say they Then came theultimatum: 'Thetwo sides come Europe's largest tradingpartners . discussed establishing direct production Guillaume renewed his demand for a can do without U.S. links" between Romanian and Soviet enter­ "Marshall Plan" for the ThiniWorld to "fight prises"-that is, Romania's move from a hunger more quickly than was possiblepre­ In an interview with U.S. News and World satrapal to a colonial status. viously, with the help of Europeanfood sur­ Report, Soviet propaganda chief Aleksan­ Precedingthe visit, Pravda featured Ro­ pluses." der Yakovlev declared that Moscow is no mania's severe economic problems, espe­ Raymond Lacombe, president of the longer concerned about the U.S. military cially in energy supplies, and its vastly in­ French farmers union FNSEA, supported threat, and can do without U.S. trade. creased dependency on Russia. Pravda not­ theagriculture ministe r's criticisms of OECD "We have concluded that it is difficult ed that in 1986, Soviet crude oil exports to governments. Third World nations are "im­ for Americans to attack us with nuclear Romania tripled, while exports of natUral portanteconomic partners in the long term," weapons," he said. "We lived in the fear of gas and electricity went up by one-third. he said, and the OECD is refusing to pro­ such a possibility for three decades, but not Izvestia went even further, focusing on the mote equitable agricultural trade with de­ any more." country's serious food shortages and en­ veloping countries. Instead of starting a trade He added that the Soviets are downgrad- forced food rationing.

16 Economics EIR June 5, 1987 Briefly

In some quarters, Gorbachov's reported According to some sources, the Soviets • DANISH FARM DEBT last year statements are being read as a signal that have been dumping gold on the Swiss mar­ hit an all-time high. According to fig­ Moscow would like a change in leadership kets, and buying U.S. dollars to postpone a ures released by the national Farm in Romania. Gorbachov attacked "bureau­ doJ1�r collapse. Organization, farmersin 1986 loaned cratism and nepotism," code words for the '1he reported Soviet gameplan is to en­ 12.5 billion D.Kr. ($1 .8 billion), and Ceausescu family. sure that Reagan continues in his economic the total farmdebt has now exceeded Romania has been the only Comecon policy delusions. The U.S. State Depart­ 100 billion D.Kr. ($15 billion). As a country to refuse to enter agreements with ment is reported to be in secret negotiations result, 53% of farm income goes to the Soviet Union on an enterprise-to-enter­ with the Soviet foreign ministry on a Soviet meet interest payments. prise basis. bailout in exchange for progress at "zero option" arms talks. • PARITY PRICES for farmprod­ According to other well-placed intelli­ ucts would permit European Com­ Corporate Strategy gence sources, however, the reports are dis­ munity farm subsidies to be phased information to foster the illusion that U. S . out , stated the head of the European Harcourt Brace chief banks do not face impending collapse . Farm Organization in a statement in denounces takeover bid Copenhagen in May. H.O.A. Kjeld­ sen also chargedthat low world mar­ ket prices are artificial, and only ben­ HarcourtBrace chairman William Jovanov­ The Debt Bomb efitcountries like the Soviet Union. ich angrily rejected Robert Maxwell's $2 billion bid to take over his U.S. publishing London Economist • 'TECHNICAL level" talks be­ company, calling Maxwell "unfitto control 26 expects coup in Peru gan May between U.S. and Japa­ the largest textbook, scientific, and medical nese representatives, on the trade is­ publisher in the United States." sues that led to the U.S. imposition The Czech-born Maxwell is the owner The Economist magazine of London, in of sanctions against Japanese im­ of Britain's Mirror newspaper chain. He is an editorial in its May 23-29 issue, calls for ports . But White House spokesman also the leading British member of the Club a cutoff of credit to countries like Peru that Marlin Fitzwater said he did not be­ of Rome . His Pergamon Press publishes all refuse the austerity conditionalities of the lieve an end to the sanctions would Club of Rome writings. international bankers; it also predicts a mil­ occurprior to the June 12 Venice eco­ Jovanovich cited Maxwell's hidden itary coup against Peru's President Garcia. nomic summit. fu nding sources and frontingfor Soviet pro­ "There is a danger that failing populism paganda as reasons why his bid should be may mean that military coups come glumly • CHASE MANoATTANMay 27 rejected. Jovanovich summed up: "Mr. back to fashion in Latin America," the followed Citibankby recording a huge Maxwell has money, but not enough . He Economist writes, "and that a 'slowdown in loss to cover defaults on loan repay­ has ambition, but no standing. He ought to lending afterCiticorp ' may cause bankers to ments. Chase Manhattan wrote off be sent packing to Liechtenstein," where his be blamed for it. The international financial $1.4 billion. in comparison to Citi­ holding company has its headquarters. organisations and pilloried commercial bank's $2.5 billion. The BBC com­ bankers need to think out what policies they mented that with Chase's move, 'InvisibleHand' should follow then. "other U.S. banks will be forced to "Two rules would be wisest. First, to take similaractio ns." refuse to lend to military regimes that topple Rumors spread of presidents even as muddled as poor Mr. • JAPANESE POLICE May 27 Soviet dollar bailout Garcia. That refusal would give military re­ arrested two senior officialsof Toshi­ gimes an incentive to call new general elec­ ba Machine, one of the biggest ma­ tions quickly, preferably within three chine-tool producers in Japan, after The Soviet Union is bailing out the U.S. months-and such coups are the only con­ learning that the company had sold dollar, as part of a scheme to keep President ceivably respectable ones. Second, inter­ advanced machines and computer Reagan from changing his disastrous cur­ national organisations and prudent commer­ software to the Soviet Union. Tokyo rent economic postures at the June 12 eco­ cial banks should stop lending to a country is concerned that Toshiba Corpora­ nomic summit, according to some U.S. in­ the moment it adopts policies like Mr. Gar­ tion, the parent company, may be telligence sources. Other sources say the re­ cia's in 1986. The World Bank stopped barred from American strategic de­ port is disinformation; its circulation, how­ lending to defaulting Peru only last week. fense research as a result. ever, serves the same strategic purpose. Far too late ."

EIR June 5, 1987 Economics 17 �TIillScience & Technology

Energia: Sovietstake thelead in rocketry

MarshaFree man reports on the nature, and the awesome strategic dlifense implications, ojthe Soviet Union's new superbooster.

"Now the Soviets can put anything they like in Earth orbit," James Oberg, noted for his analyses of Soviet space pro­ remarked Dr. Tom Paine, in response to the May 15 launch grams, stated in the May 18 Washington Times that the So­ of the Energia booster from the Baikonur Cosmodrome. viets could keep the United States out of space with their new Paine, who was the head of the U.S. space program at the heavy rocket. "A few payloads like this [i.e., 100 tons each] time of the first manned lunar landing in 1969, pointed out would allow the Soviets to set up an orbiting battle station that, "The Energia has the same lift capability as the Saturn system and to deny space to any payloads that did not meet rocket that took us to the Moon," and that this feat changes their approval ." Such battle stations, he said, could be armed the entire internationalbalance-of-Iaunch capabilities, for the with lasers, small missiles, fragmentation bombs, or satellite firsttime in 20 years. warheads. It is not astonishing that the Soviet Union finallylaunched "Only three or four Energia payloads would be enough a Saturn V -class booster this past month-they have been to set up an effective anti-satellite network," he said, which working on one for at least 22 years; in terms of its military "could attack any satellite within a few orbits and enforce application, it is, however, quite frightening. What is aston­ their own 'export controls' on it. ... It is impossible to ishing was the complete silence from Secretary of Defense overestimate the importance 0Ifthe Soviet achievement. For Weinberger, the White House, and the SDI office, in re­ the first time in 25 years , they have resumed the lead in rocket sponse to this new development. power with the obvious intention of using it." Since 1981, when the Pentagon started publishing its The May 20 issue of the Defense Daily newsletter also Soviet Military Power report, they have been warning that a attempted to set the record straight on the Soviets' intentions. Saturn V -class booster would give the Soviets a significant It stated that Energia, "is not a launcher just to provide jump ahead of the United States in being able to launch and competition with the United States' NASA Space Shuttle orbit laser weapons to attack satellites, and battle stations for civilian flight demonstrations, although that is certainly one strategic defense. When the day for the first flight test finally of its objectives ....The Energia, more than anything else, arrived on May 15, 1987, no one in the White House seemed is a window of significant potential for expansion of the to be interested. Soviet military into space ....Its contribution to the even­ On May 16, TASS described the new capabilities of tual construction of Soviet battle stations in orbit cannot be Energia by stating, "It opens up a new stage in the develop­ overemphasized, especially at a time when it fliesin the face ment of Soviet space rocket engineering and broad prospects of a confused and misdirected congressional leadership that for a peacefulexploration of outer space." No one should be would bind the hands of the United States' quest for a stra­ fooled, however, into thinking that the Soviets have devel­ tegic defense system." oped Energia for the "peacefulexploration of space. " The May 19 issue of the Italian daily La Stampa, accu-

18 Science & Technology EIR June 5, 1987 rately headlined its coverage of the Energia launch: "Maxi­ In 1964, NASA administrator James Webb announced Missile for the Soviet SDI." They state: "With the Energia, that the Russians were working to develop a booster with a the balance between the two superpowers has changed. . . . capability comparable to the Saturn V rocket that astronauts It is easily understood that the same missile can put into space would take to the Moon. Mockingly known as "Webb's anything needed for a space shield: lasers, directed mirrors, Giant," the booster was estimated to have between 10-15 spy satellites. " million poundsof thrustusing conventional petroleum-based fuels, compared to the planned 7.5 million for the Saturn V. No civilian Soviet space program Webb estimated that the Soviet rocket would carry a smaller A grave mistake is made by newspaper reporters and payload than the Saturn V, though it would be much larger, commentators in the West regarding the Soviet "space pro­ because it would use less efficientfu �ls, rather than the liquid gram." Many try to compare what the Russians allow them hydrogen carriedin the second and tbird stages of the Saturn. to see on Soviet television, to the NASA space launches they This superbooster was dubbed in the West the G-l rocket. watch at home. What the world sees on Soviet television, is But the Soviets could not compete with a mobilized United a very small percentage of the actual capabilities the Russians States on a giant civilian booster project. According to James have in space. The vast majority of their resources and sys­ Oberg, in his 1981 book, Red Star in Orbit, a briefingby the tems are for use by the military . Their civilian science, ex­ Central Intelligence Agency in 1976 confirmed that the first ploration, and technology programs are mainly a spin-off big booster test in early June 1969 (one month before Apollo from their strategic capabilities, and are used to maximum 11) exploded on the launch pad. This was apparently caused politicaleff ect. by a firein its upper stage, and probablyresulted in casualties. The Baikonur Cosmodrome is often compared by West­ A second test in the summer of 1971 ended in an in-flight ernjournalists to NASA's Kennedy Space Center in Florida. explosion when the first stage malfunctioned, and this was However, the Soviet Air Force is responsible for all cosmo­ repeated on Nov. 24, the following year. The G-l booster naut training, the Strategic Rocket Force conducts all space under development by the Soviets in the 1960s was undoubt­ launches, and the three major Soviet launch sites are admin­ edly designed for their lunar program, though for years there istered by the military. Unlike any of the NASA space facil­ has been a debate over whether or not the Soviets wereindeed ities, what goes on at these centers is secret, unless the mili­ in the race to place men on the Moon, as the "sour grapes" tary releases the information. Russians denied they were in the Moon race, since they lost The Soviets do not need the Energia rocket to expand or it. supply their Mir space station. Nor is there any serious evi­ As close to the Apollo 11 lunar launch (July 16, 1969) as dence that they need that lOO-ton liftcapability because they June 2, Soviet veteran cosmonaut AlexeiA. Leonov (the first are imminently planning to send men to the Moon or Mars. man to "walk" in space) stated to a groupof Japanese science There is, however, every reason to believe that the stra­ correspondents in Moscow, "If everything goes well, it will tegic defense and anti-satellite programs they have been de­ be possible for Russia to send a man or men to the Moon veloping for the past 20 years, require this next-step launch before the end of this year or early in 1970" (reported by capability to place next-generation directed energy systems Kyodo news agency). into space. Without a leap into large booster technology, However, in October, three monthsafter Neil Armstrong 'more advanced Soviet military space systems could not be and Buzz Aldrin walked on the Moon, Soviet Academy of deployed. Sciences head Mstislav Keldysh stated, "At the moment, we are concentrating wholly on the creation of large satellite The failed first try stations. We no longer have any scheduled plans for manned On Oct. 4, 1957, the world was stunned by the news that lunar flights." It was clear to the West, that the Soviets gave the Russians had succeeded in placing a small satellite into up in the race to the Moon because they could not develop orbit around the Earth. Less publicity, however, was afford­ the huge launch capability necessaryto take men out of Earth ed the precursorto that event a month before, which was the orbit. Soviets' (and the world's) first successful launch of an ICBM (intercontinental ballistic missile). The Sputnik launch was The reworked G·l an ICBM with a satellite on top . In 1971, the Russians launched their first Salyut space The United States, too, depended upon its military rocket station, on their workhorse Proton booster. This rockethas a vehicles for the first few years of the space era, but when maximum payload delivery capability of about44, 000 pounds PresidentKennedy announced in 1961 that the United States to low Earth orbit, compared to the 300,OOO-pound payload would go to the Moon , an enormous rocket had to be built to of Saturn V. Each of the eight Soviet stations launched in the accomplish it, though there was no planned military mission past 15 years, including the current Mir, have been about the for such a rocket at that time . same size (40,000 pounds) and all were launched on Proton

EIR June 5, 1987 Science & Technology 19 that this orbital capability would be important to test new

FIGURE 1 space technologies, do reconnaissance missions, and perhaps repair critical orbital military assets, when that capability is developed. Considering the poor record the Russians have in the long-duration functioning of electronic equipment, it is highly likely that a man-in-orbit function will be required when strategic defense assets are ready to be deployed by Energia. The Soviets opted for building their Kosmograd last year, by attaching modules to the central Mir core, delivered by the Proton rocket, and have succeeded this year in docking three other modules to the Mir at the same time-the Soyuz TM spacecraft that delivered the cosmonauts, an unmanned Progress supply ship, and the Quantum astrophysical module for scientificresear ch. In 1981, the first Pentagon issue of Soviet Military Power suggested a more plausible mission for the superbooster. Cognizant of the Soviet ASA T capability, and the push for The Soviet Mir space station is the same approximate size as directed-energy systems for more advanced capabilities, the previous Salyut stations. with the new capability to dock up to report states: "A very large space booster similar in perfor­ six other spacecraft to it to fo rm an orbital complex. mance to the Apollo program's Saturn V is under develop­ ment and will have the capability to launch very heavy pay­ loads into orbit, including even larger and more capable laser boosters (Figure 1). weapons." Figure 1 depicts the Defense Department's spec­ But in 1980, after eight years of silence about a super ulated picture of the superbooster. booster, U.S. intelligence again reported that a huge new One can choose to believe anything the Russians say, but booster was under development. It was assumed that the G- there is no indication that Energia was built, over a period of 1, with some improvements , was back on the agenda. It was 22 years, at a cost of billions of dollars, and with loss of posited at that time that a permanently manned space station, human life, to put up space stations that are actually being which the Soviets said they would orbit by the mid- 1980s built with Proton boosters. (Kosmograd) , weighing perhaps 220,000 pounds, would re­ quire the big booster. Aviation Week and Sp ace Technology Are cosmonauts going to Mars? magazine speculated in that year that the first launch would There is no question that the Soviets have an aggressive be in 1983, and the booster would be operational for the program for the exploration of the planet Mars , but is this space station launch by 1985. why the Energia was developed? On May 21, R. Kremnev With the launch of the Mir on Feb. 20, 1986, the idea of the Glavcosmos, the "civilian" agency of their space pro­ that the Soviets were developing a big booster just to deploy gram, announced a three-phase unmanned Mars program. In civilian space stations went out the window. The M ir station 1992, the Soviets plan to send a balloon-type system through central core is essentially the same size as the former Salyuts' , the atmosphere of the red planet. but with six docking ports , rather than only two (Figure 2). Two years later (the Earth-Mars launch "window" occurs The largest space station to date that has ever been launched once every two years, with today's technology), Kremnev remains the U.S. Skylab in 1973, which took advantage of said, the Soviets will send a small rover to Mars, with a range the Saturn rocket's huge payload capability. of 200 kilometers , with a larger one to follow. In 1996 or The Soviets have never seen their "man-in-space" pro­ 1998, a complicated unmanned soil sample return is in the gram as a "civilian" program. At least two of the Salyut works, which would gather between 500 grams to 3 kilo­ stations launched in the program have been strictly military, grams of soil from various sites, and return the samples to and the lack of U.S.-comparable electronic, computer, au­ Earth. tomation, and navigation systems has required that they have But the Soviet space program does not have an impressive people in space simply to do many of the things the United record in terms of successful Mars missions. More than half States has developed the technology to do without people. have failed either en route, or once they reached the planet. The United States decided to give up its military manned Most important, cosmonauts have never ventured past Earth space program, the Manned Orbital Laboratory and the Dy­ orbit, and there is no indication that the radiation protection, nasoar shuttle program, in the 1960s. The Soviets decided extended life support, navigational, or other systems re-

20 Science & Technology EIR June 5, 1987 quired, have been developed to take them even to the nearby material needed to send men to the Moon. It appears, again, Moon. that the military leadership of the Soviet space program has Lunar manned travel is a definite prerequisite to a con­ had more pressing, top-priority projects under development servative, reasonable-risk manned Mars mission. While it is than missions to the Moon. truethat the Russians have had no big booster that could take them to the Moonthe way the United States went, their years The only country with bombs in space of operational Earth-orbiting space stations, have provided What werethe Soviets doing, while the United States was an ideal launching pad for trips to the Moon, and then Mars. sending astronauts to the Moon, and unmanned probes to the The Soviets could have sent a manned mission to the Moon outer planets? At the present time, the Soviet Union is the by now, if that were their priority. only nation with an operational anti-satellite (AS A T) capa­ When the Apollo astronauts left Cape Canaveral, they bility, and the demonstrated ability to orbit nuclear bombs . took everything with them they needed to get to the Moon, On Sept. 17, 1966, the Soviets startedconducting a series and back. The United States made the decision, opposed by of tests with their Kosmos satellites, "with odd trajectories." many, to do this direct flightmission , requiring a superboos­ Instead of going into orbit, these vehicles arcedfar above the ter, because it was estimated that building operational space altitude normal for reconnaissance satellites, and then fe ll stations first would not allow NASA to meet Presdient Ken­ back to Earth,without completing a full orbit. nedy's "beforethis decade is out" deadline. In January 1967, the Soviets did their first test of what But the Soviets have had space stations in orbit for the became known as the Fractional Orbital Bombardment Sys­ past 15 years-plenty of time to collect and assemble the Continued on page 24

FIGURE 2 New U.S. and Soviet space launch vehicles

METERS

100 HEAVY·L1FT LAUNCH VEHICLE'

us USSII

80 HEAVY·L1FT MEDIUM·L1FT LAUNCH VEHICLE • LAUNCH VEHICLE ·

HEAVY·L1FT LAUNCH VEHICLE 10

REUs.aLI SPACE PLANe IN DEVELOPMENT Until the launch of the 40 Energia, the Department of Defense assumed that the Saturn V-class heavy­ lift launch vehicle under development (extreme right) would be nearly 20 100 meters tall. with six strap-on boosters. to or­ bit 150 metric tons. The use of liquid hydrogen engines made it possible o to make the booster 60 STRAP·ON UFT·OFF WEIGHT IKGI 2.220. 114 400.000 1.!i00.000 BOOSTERS meters tall. with fo ur UFT·OFF THRUST IKGSI 8.925.000 1.300.000 4-8.000.000 8-9.000.000 boosters. (From Soviet PAYLOAD TO KILOMETERS IKGI 180 95.000 + 15.000 + 1&.000 + 180.000 Military Power, 1984. p. 130.000 Shuttle 130.000 Shun" �_ityl ·In_.... oI�t pa� _ityl 44 .)

ElK June 5, 1987 Science & Technology 21 , (

" of the LaRouche Democratic Campaign Th� famoust echnological contributions to our spacesci­ bulletin ofl May 19. ence are those ofsuchPeenerrlunde vet.erans of Professor ' Obe rth's pre -kitler, 1920s Moo9-rOcket programas Wernher The 'SQviet c" SOl" has just literally taken a giant leap into von Braun,Arthur Rudolph, and KrafftEhricke . Lessknown p�mg o{Sov iet space weapons, with this past weekend's are the indispensable contributionsto the physics of ae rody­ launching of a loo-ton-payload super-rocket, Energia, from namicS and rocket-propulsion ststem s by scientists, such as empire'sBaikonur s ite-from which the original Prand tl and Busemann, trained in th e Gottingen tradition of th� Russian ; 'Sp,utnlk waslaunched. Th is Soviet leap into firstplace , in the Gauss, Riemann, and Felix Klein. �n d by Italian hydrody- race Jo deploy "SOl," could not have been accomplished namici stsin theRiemann-allied traditi on of Bettiand Beltrami. without assistance froma group within the U. S. Department This physics from that Gottingentraditi on , was not only ofJustice, a group including Mark Richard. the indispensable basis for the rocket-science and general I refer to thec ase of the methodsof extortion which Mark aerospace programs of both the U.S.A. and Russia. It has Richartl used , to carry out Soviet initiatives, in thee xpUlsion also been of vital importance in the progress ofboth super­ of U. S . space-scientistArthur Rudolf on fraudulentcharg es. powers in plasma physics. It was on the basis of the contin­ 1 refer alsoto a pattern of other actions, by the same combi­ uation 'of Riemann'swor k by Soviet-captured Gennan sci­ ,nati0J'l within theJustice Department, which hasalready crip­ entists, that Russiaacquired its \i-bomb capability. pledtpe U.S. aerospace andSOl capabilitiesto a very signif­ Ru�sia kne w , that itsonly chtnce ?f outpacing t�e United icantdegree. This is a crew which was chieflyresponsible for States lD SOl and related techtiologles, wa� to cnpple our the fact that th e Cha llenger Shuttle tragedyoccurred as it did. pro gram� , while theypushed th�s aheadfull-steam, as they " Certainly, Russia could have produced its new, giant have done. Forexample , the accelerated attacks on me , in­ super-rocket without help from Mark Richard and his cro­ side the hlnited States and around the world, since April nie, s. Moscow couldhot have gainedthe margin of advantage 1983, were ordered by the Soviet government, and carried it has just established, without sabotage of U.S. out by Western factions who s�pported the Soviet de mand . ae " e�capabilities by circ les in the Justice Department that, a U.S . SDI not be built-tvhile Moscow worked full- " operating under the influence associated with Soviet agent s�am to deployits own. f ArmaridHamm er. At the same time, Moscowpaunched various pr9grams Qespite the valuable contributions of scientists such as aimed at crippling the kinds ,of U.S. aerospace capabilities iOodd�r,d . both tbe U .S.A. and Russia obtained their space­ essential to the sot program. lIn this setting, the Justice tocket :iechnology fro m the German Peenemtinde scl.entists. Departme nt's anti-SOlmafia t ook a variety of actions aimed All of the major rocket-systems of both superpowers , sti ll at crippling the administration ?f NA SA, at destroying the today , are bujlt upon solutions to fundamental problems of researcb capabilities of leading defense contractors , and at propUlsion systems by groups'of Ger- gutting and d, em, the, re of scientists associated , of rockets and oral�ing So, Italian scientists whose activities were , centered withthe dev�lopment of the U.::I. rocketprogram/ >. r., s,'ltUllQOiDla · center,or, most emph atically, g�ln>�is virtually trb�ppous sa"?�ge,,the Justice Depart�' , "' :" � "4?, , ,-� . ' ), t ¥n!�s'M:�'Richatdand Offic:eo f Special Inyestigations,

EIR June 5, 1987 working closely with leading elements of Ollie North's Proj­ evidence manufactured by the Moscow Procurator with as­ ect Democracy (National Endowment for Democracy), have sistance from the Soviet KGB . Later, a woman with impor­ beenworking closely also with Soviet agents such as Armand tant connections into Moscow, then-Representative Eliza­ Hammer, and with Hammer's business cronies in Soviet beth Holtzman, introduced a bill setting up the present oper­ "joint ventures. " ations of Mark Richard and OSI within the Department of Justice. Not all intend to be traitors, exactly Now, whenever Moscow demands this, the Department Some of the channels responsible forthe sabotage of our of Justice victimizes a few U.S. citizens on the basis of such aerospace capabilities are consciously collaborating in these forged Soviet evidence. This usually occurs, not accidental­ actions with known Soviet agents such as Armand Hammer, ly, during the period the U.S. is engaged in some sensitive or Soviet dupes such as Edgar Bronfman. More are simply sort of diplomatic negotiation with Moscow. As a result, the being what Lenin famously described such liberals to be, relevant U.S. citizen-always one marked for "anti-Soviet "useful fools." Some are simply opportunistic bureaucrats, activity" -is railroaded as · a gesture of diplomatic "confi­ who are playing "power games" inside the party leaderships dence-building" measures. and governmentbureaucra cies, persons who seem not to care That is the mechanism through which I have been targeted in the least whether their corrupt acts of personal greed and by the U.S. Department of Justice. That is the mechanism ambition are subverting our Constitution, or ruining our used to target Tscherim Soobzokov for assassination by cro­ country in other ways. nies of Proj ect Democracy's Anti-Defamation League (ADL). Whatever the motives for the actions of each type of That is what was done in the cases of Arthur Rudolph and person involved, they are all giving substantial, if sometimes numerous others. unwitting "aid and comfort" to an avowed Soviet adversary On U.S. defense contractors, as opposed to selected "anti­ which definesitself as being in a state of pre-war mobilization Soviet" personalities like me, Moscow's approach works against us. through channels of the arms-control "mafia." This "mafia" Among influentialestablishment circles, the problemhas includes not only the State Department's Arms Control and been, that some liberal factions (of both parties) have taken Disarmament Agency, but a network of law firms and other it into their heads to reach agreements on joint world-rule private establishment networks which are the ACDA constit­ with Moscow. The term they oftenuse to describe this, is not uency inside the establishment. "one-worldism," but rather a "bipolar world." Everything Moscow defines these defense contractors as the core of will be nice and cozy, they argue, if we can divide the world "the U.S. military-industrial complex." It demands that the into zones of strategic influence, each controlled by one of U.S. government and bankers curtail this section of the es­ three "superpowers": Moscow, Washington, and Beijing. tablishment. The action is then taken as a "confidence-build­ To such fuzzy-thinking sorts of U.S. establishment lib­ ing measure," often with aid of a Justice Department frame­ erals, like Willy Brandt's Socialist International, or West up of a corporation and some key aerospace figures. The Germany's formerChancellor Helmut Schmidt, Russia is not victimization of a few such corporations and individualsserves an "adversary," but only a bad-tempered sort of "competi­ as a warning to others, to keep out of areas of research which tor." They insist that Moscow has no intent to prepare ac­ Moscow and the arms-control "mafia" wish to suppress. tually for war. They insist that nothing more lethal than a bit Moscow's arms-control demands upon the United States are of limited bloodshed, all as part of a way of conducting not limited to the numbers or kinds of weapons we deploy. diplomatic negotiations in a "crisis management" ehviron­ Moscow also demands that we eliminate the capability to ment, is on the plate. Secretary of State George Shultz has design and, potentially, to produce, entire classes of tech­ consistently represented this point of view. nologies of possible military use. These liberals propose, that by a combination of hard­ Arthur Rudolph was a leading figure among those U.S. bargaining diplomacy (with occasional bloody monkey-shines rocket scientists whose specific, ·demonstrated capability on the side), and "confidence-building measures," we can would have been to head up a team to construct a rocket gradually disarm a world neatly, placidly divided among capable of matching and surpassing the Soviet giant just imperial rule of Washington, Moscow, and Beijing. Mos­ successfully deployed. This would have been one of the cow's intent to consolidate its world empireby the end of this important options for the U.S. SOl program. Targeting Ru­ century depends upon such liberal fools' continuing to be­ dolph meant, by 1985, that we lost Rudolph, and also intim­ lieve in such future utopias. idated into inaction both the employers of other such scien­ As part of these "confidence-building" measures of dip­ tists and those scientists themselves. lomatic "crisis management," Secretary of State Henry A. There are now about 100tons of Soviet SDI orbiting Kissinger negotiated an agreement with Moscow, under which above your heads. More will follow. For that situation today, the U.S. Department of Justice would frame up U.S. citizens you can give much of your thanks to the circles around Mark and other residents accused solely on the basis of forged Richard in the Reagan Justice Department.

ElK June 5, 1987 Science & Technology 23 Continued from page 21 of radars. The DEW radars wc:re aimed along the United tem (FOBS). In Novemberthat year, Defense Secretary Rob­ States' northern horizon to spot missiles traveling along the ert McNamara held a hastily called press conference, and great circle route, on their way to U.S. targets. The FOBS revealedthat the FOBS was designed to drop a nuclear bomb could potentially be launched east-ta-west, rather than the on a target from outer space, within a fraction of a single conventional west-to-east which takes advantage of the Earth's Earthor bit. rotation, and "sneak up" on the llnited States by evading the The goal of FOBS, the Defense Department stated, was DEW line altogether. to circumventAmeri ca's firstline of defense against a Soviet Even if the missiles came along the great-circle route, ICBM assault, the Distant Early Warningor DEW line series because the FOBS soared to ai, 120 kilometer altitude, by

TABLE 1 Major offensive Soviet military launches (1957-80)

Spacecraft Date Mission Spacecraft Date MI88Ion

Aug. 3, 1957 First ICBM Kosmos 404 Apr. 4, 1971 ASAT, passes near 400, deboosted Polyet 1 Nov. 11, 1963 Maneuverability test into Pacific PoIyet 2 Apr. 12, 1964 Maneuverability test Kosmos 433 Aug. 8, 1971 FOBS test Kosmos ? Sept. 17, 1966 Possible FOBS test, failed Kosmos 459 Nov. 29, 1971 Target for ASAT Kosmos 139 Jan. 25, 1967 FOBS test Kosmos 462 Dec. 3, 1971 ASA1. approaches 459 and explodes Kosmos160 May 17, 1967 FOBS test Kosmos 521 Sept. 29, 1972 Target for ASAT, no sign of Kosmos 169 July 17, 1967 FOBS test interception Kosmos 170 July 31 , 1967 FOBS test Kosmos 803 Feb. 12, 1976 Target for ASAT Kosmos 171 Aug. 8, 1967 FOBS test Kosmos 804 Feb. 16, 1976 ASAT, approaches 803; deboosted Kosmos 178 Sept. 9, 1967 FOBS test into Pacific Kosmos 179 Sept. 22, 1967 FOBS test Kosmos 814 Apr. 13, 1976 ASAT, approaches 803 and. Kosmos 183 Oct. 18, 1967 FOBS test deboosted Kosmos 185 Oct. 27, 1967 Possible ASAT precursor test; failed Kosmos 839 July 14, 1976 Target for ASAT Kosmos 187 Oct. 28, 1967 FOBS test Kosmos 843 July 21 , 1976 ASAT, failed Kosmos 217 Apr. 24, 1968 ASAT precursor, never reached orbit Kosmos 880 Dec. 9, 1976 Target for ASAT Kosmos 218 Apr. 25, 1968 FOBS test Kosmos 886 Dec. 27, 1976 ASAT, approaches 880, and Kosmos 244 Oct. 2, 1968 FOBS test exploded Kosmos 248 Oct. 19, 1968 Target for ASAT Kosmos 909 May 19, 1977 Target for ASAT Kosmos 249 Oct. 20, 1968 ASAT, passed near 248 and Kosmos 910 May 23, 1977 ASAT. intended for 909; result exploded unclear Kosmos 252 Nov. 1, 1968 ASAT, passed near 248 and Kosmos 918 June 17, 1977 ASAT, approaches 909, plunges into exploded Pacific Kosmos 291 Aug. 6, 1969 ASAT test, probably failed Kosmos 959 Oct. 21 , 1977 Target for ASAT Kosmos 298 Sept. 15, 1969 FOBS test Kosmos 961 Oct. 26, 1977 ASAT, approaches 959, plunges into Kosmos 354 July 28, 1970 FOBS test Pacific Kosmos 365 Sept. 25, 1970 FOBS test Kosmos 967 Dec. 13, 1977 Target for ASAT Kosmos373 Oct. 3, 1970 Target for ASAT Kosmos 970 Dec. 21 , 1977 ASAT, approaches 967 and explodes Kosmos 374 Oct. 23, 1970 ASAT, approached 373 but exploded later Kosmos 1009 May 19, 1978 ASAT, approaches 967, plunges into PaCific Kosmos 375 Oct. 30, 1970 ASAT, approached 373 and exploded Kosmos 1171 Apr. 3, 1980 Target for ASAT Kosmos 394 Feb. 9, 1971 Target for ASAT Kosmos 1174 Apr. 18, 1980 ASAT, approahces 1171 , explodes a day later Kosmos 397 Feb. 25, 1971 ASAT, passes 394 and explodes Kosmos 4OO Mar. 1 8, 1971 Target for ASAT

This table does not include the reconnaissance, communications, navigational, and other Soviet military satellite launches, which occur frequently and at regular intervals, but only the missions which tested new offensive military space capabilities.

24 Science & Technology ElK June 5, 1987 the time it were picked up on the DEW line radars, it would be only about 700 kilometers away from the target. At this FIGURE 3 distance, there would be only a three-minute warning. Operational Soviet ASAT McNamara also pointed out that a high-yield nuclear warhead set off several hundred kilometers above the United States would generate a titanic electromagnetic pulse, knock­ ing out power and communication lines throughout North America. The signing of the Outer Space Treaty in 1967, which prohibited the placement of "weapons of mass destruction" in outer space, did not deter the Soviets from continuing the testing oftheir FOBS system. At least 15 tests were conduct­ ed between 1967 and 1971 (see Table 1). By that time, it is likely that since the United States had developed reconnais­ sance satellites that could detect any Soviet missile lift-off, the FOBS system had no great advantage as an offensive ICBM capability. The Soviets had begun to develop the capability to ma­ neuver spacecraft in orbit as early as 1963, according to William Shelton, in his book, Soviet Space Exploration . At The operational Soviet anti-satellite system has been tested with that time, Soviet spokesmen stated that this capability would an 85% success rate. The ASAT simply explodes, as seen here, be used for assembling space stations and ferrying orbiting hurling deadly shrapnel toward any other spacecraft within crews, but for three years , there were no manned flights using range. (From Soviet Military Power, 1985 , p. 54 .) this maneuverability. Shelton states that, "By 1965, Russia had announced that it already could place nuclear bombs ih orbit." Soviet Col. According to James Oberg, the Soviets can use this ca­ Gen. V.P. Tolbubko stated: "Powerful missiles are being pability to blind U. S. satellites and destroy their optical sen­ created that can ensure delivery to the target of nuclear war­ sing systems. The Pentagon has estimated that the Soviets heads, both on ballistic and orbital trajectories, and that are could deploy space-based lasers for ASAT applications in capable of maneuvering within that trajectory." Elimination the 1990s. To do that, they will need the capabilities of the of the FOBS system was one of the requirements of the now­ Energia rocket they have .tusttested . dead SALT II treaty , but like the majority of treaty require­ The Soviets have never admitted that they have an ASAT ments, the Soviets never honored that agreement. capability. They have repeatedly castigated the United States for trying to finallydevelop ASAT weapons, and have served Anti-satellite weapons as the moral and more direct suppOrt for the congressional At the present time, only the Soviet Union has willfully grouping that has held up U. S. ASA T testing for the past 18 destroyed satellites in orbit. The first-generation Soviet months. ASATs became operational in the mid- 1970s. Using radar One of the flags waved by congressional ASAT oppo­ guidance, the ASATs demonstrated the capability, with an nents, is the fact that the Soviets have only tested their system 85% success rate , to close in on a target and explode near against satellites in low Earth orbit (less than 300 miles above enough to throw out deadly shrapnel. Not terribly sophisti­ the Earth) (Table 2). In order to launch a killer satellite to cated, but highly effective (Figure 3). chase and destroy a U.S. navigational or communications Recent improvements, such as single-orbit pop-up satellite tens of thousands of miles high, a more capable launches and optical infrared homing devices, were not as rocket than the Proton would be required. successful, but third-generation directed-energy systems are The Proton can carry about 10% of its low-Earth orbit now under development. payload into geosynchronous orbit (GEO) 22,300 miles above In the fall of 1985, American physicist Edward Teller the Earth. But that 2-ton GEO capability cannot deliver a 3- stated on television, that the gas dynamic and iodine lasers 4 ton ASAT into that high an orbit. If the Energia can carry based on the ground at Sary Shagan had become operational. a comparable 10% of its tOO-ton low-Earth orbit payload to As early as 1982, Air Force magazine reportedthat a ground­ GEO, the Soviets can place a lO-ton spacecraftin the vicinity . based Soviet laser had used the Salyut space station as a of a large number of U. S. military satellites. tracking target and that the cosmonauts were apparently told Now the Soviets have the launch capability they need to to put on goggles to protect their eyes from the laser light. threaten all U.S. military space assets.

EIR June 5, 1987 Science & Technology 25 Peenemiinde veteran and space scientist Krafft Ehricke

TABLE 2 began to investigate the possibilities and problems of liquid Payload capability of U.S. and Soviet rockets hydrogen for rocket propulsion during the Second World (1 ,0005 of Ibs.) War. Two months after the launch of Sputnik in 1957, Eh­ ricke presented a proposal to the Air Force to build the Cen­ Launcher Payload to LOE' taur liquid hydrogen-fueled upper stage, to increase the pay­ U.S. vehicles" load capability of the Atlas ICBM. Delta 5 In 1959, the Centaur program was transferred to the new­ Atlas Centaur 8 ly-formed National Aeronautics and Space Administration, Titan 340 10 and in 1962, the United States tested the world's first liquid Shuttle 65 hydrogen upper stage. The Centaur was put atop the Atlas, and later the Titan missile, and was used to launch NASA's Soviet vehicles planetary probes. A modified Centaur engine became the A-2 (Soyuz) 16.5 basis for the two liquid hydrogen upper stages of the Saturn Proton 0-1 44 Y, that took men to the Moon. Proton D-1-h (Salyut) 49.5 Handling liquid hydrogen a few degrees above absolute U.S. Apollo-era vehicles zero required the development of safe and sophisticated cry­ Saturn-1 B 40 ogenic technologies, which the Russians could not master Saturn-V 300 until very recently. The propulsion configurationof the Ener­ gia is eerily similar to that of the Space Shuttle, which also uses liquid hydrogen engines alongside external boosters, in 'Low-Earth Orbit = 300 miles. The Titan 340 can launch 27,000 Ibs. to a the first use of this higher-energy fuel in the firststage of the 100-mile orbit. 2Vehicles rarely ever launch their maximum payload, including the shuttle. rocket.

Source: NASA. How did the Russians make this "great leap forward" in propulsion technology? Quoted in the May 18 Washington Times. Oberg remarked that the Soviets had somehow man­ Where did they get the technology? aged to "skip over" many years of testing and development According to TASS reports, released a week after the (and failures) of these advanced engines, which took the Energia test flight, the four probably multi-chamber engines United States 25 years to develop. "This is evidence of either in the first stage of Energia are powered by liquid hydrogen. divine intervention, or their ability to use Western experi­ The four liquid strap-on boosters are kerosene fueled. ence," Oberg remarked . "It is a tribute to their rocket engi­ For 25 years, the Soviets have been unable to master neers and to the GRU and the KGB ," he stated. liquid hydrogen technology. This light and plentiful element Similarly, the Defense Daily of May 19 commented,

must be kept at - 423°F to be in a liquid phase, and is not "The use of liquid hydrogen in the Energia launch would only flammable but explosive when exposed to the air or mark a major breakthrough for the program and is seen as a oxygen in an uncontrolled manner. In the Challenger disas­ tribute in a large measure to the KGB technology transfer ter, it was the breaching of the liquid hydrogen fuel tank that department." Perhaps this is what Soviet leader Mikhail Gor­ produced the spectacular explosion seen on television, not bachov means by glasnost. the leak from the solid rocket booster. The same eerie feeling is eV(1n more striking in the Soviet As early as the tum of the century, space pioneers rec­ space shuttle program. Why spend years doing wind tunnel ognized that the superior, liquid hydrogen fuel would be testing and aerodynamic design, when you can build yours needed to propel unmanned spacecraft to the outer planets, just like the one that already works , Soviet designers must and to take crews past the Earth. In the measure of rocket fuel have asked themselves. efficiency, known as specific impulse, hydrogen is nearly Not until recently did the Soviets admit they are devel­ twice as efficient as petroleum-derived fuels, though its mass oping a reusable spacecraft, though Western intelligence is much lighter. agencies have actually photographed a small, scaled-down Liquid hydrogen was proposed for the upper stages of version of the Soviet shuttle, as we show on the cover of this multi-stage rockets, to provide the higher escape velocity to issue. The Russian shuttle is apparently made up of only an the payloads that had already made their way into Earth orbit. orbiter that is reusable. The glider, without engines, will be The heavier fuels are used in U.S. and Soviet military vehi­ launched strapped on to the Energia-class expendable rocket cles, and the Saturn rockets for the first stage, when the and most probably has half of the payload capability of the spacecraft is pulling against the strong gravitational force of U.S. system. In that sense, it is similar in design to the small the Earth. Hermes shuttle being developed by the French, which will

26 Science & Technology EIR June 5, 1987 be launched atop an upgraded expendable Ariane rocket. Unlike the U.S. plan to use the Shuttle to bring crews and FIGURE 4 supplies to the space station, the Soviets have developed a well-oiled system for station resupply, using unmanned EXPERIMENT SCHEMATIC Progress ships for consumables and equipment, and the tried­ and-true Soyuz for crew delivery and highly publicized "guest cosmonaut" visits. The U.S. military is now deciding whether or not this nation should also have a space station complex, explicitly for national security missions. The foolhardy short-sighted­ ness of military planners, plus the budgetary sabotage by the Congress of DOD and SOl space initiatives, has left only the Soviet Union with military commanders in space on a full­ time basis.

Could we catcb up? We've done it before . In 1960 , during the presidential campaign, John F. Kennedy charged that the Eisenhower The 1988 Soviet Phobos mission will fire a laser and an electron beam 50 meters above Mars' moon Phobos. to administration was responsible for a "missile gap." Indeed, vaporize and measure the chemical composition of the soil. at that time, the United States had 21 ICBMs in its missile Though these are small laboratory-sized directed energy arsenal, to the Soviet Union's 50. In intennediate-rangemis­ devices. they are trial-runs fo r the battle stations the Energia siles, the ratio was about the same. rocket can now put into Earth orbit. However, two years later, the United States had out­ strippedthe U.S.S.R. in ICBMs, and in early 1963 the United States had 450 long-range missiles, to the Soviets' 75. In On April 22, the Air Force announced that it was seeking 1958, Maj. Gen. Bernard A. Schriever wrote that his group, industry design concepts for what is now being called an which had been given "the highest national priority" in 1955 "Advanced Launch System," which it is estimated will cost to develop a U.S. ICBM, had accomplished "in three-and-a­ about $17 billion to develop. The Air Force announced as half years what it took the Soviets seven years to do." well that it would be the lead agency for the project, perhaps The United States decided before the firstAmerican land­ in a move by the Defense Department to take the booster out ed on the Moon , to throw away the heavy-lift launch capa­ of the controversial and publicly visible SOl budget. bility Saturn V rocket, as soon as the Apollo program was The booster is supposed to be able to carry 100,000- over. Without a national program to develop directed-energy 150,000 pounds to low Earth orbit, and be available in 1998. technologies for strategic defense, or for the ASAT defense They have included the proviso, that some version of this of assets in space, no mission was in sight for the military use booster should be ready by 1994, for possible use in SOl of heavy boosters. deployment. Considering the fact that engines, boosters, and The civilian NASA programs were stripped to one-third other components of the Space Shuttle system could be re­ their previous size over the course of the 1970s, and the only configured without the orbiter to produce a Shuttle-derived NASA vehicle on the horizon was the Space Shuttle. Both heavy-lift launch vehicle without 10 years of new develop­ NASA and the Defense Department have been in the process ment, this schedule is excessive. of reevaluating this nation's launch requirements over the So far, the House Anned Services Committee April 30 past few years , and the loss of the Challenger accelerated the did approve $150 million in FY88 for the Advanced Launch process. It is now agreed that the United States needs a heavy­ System, but the DOD budget has been slashed by $23 billion liftlaunch vehicle for SOl-related missions, and future space by the full House, and even the Senate version includes over science and exploration plans. $10 billion in cuts. So far , the Congress has stood in the way of getting There has been no sense of national urgency, no national development of a new heavy launcher under way . The De­ mobilization called, to answer the threat to the West posed fense Department requested that $500 million be added as a by the Energia rocket. As James Oberg has stated, for the supplemental budget increase, to the FY87 (current year) SOl first time in 25 years , the Soviets have the lead in rocket budget, over $100 million of which was to be the start-up power. In the classical case of the tortoise and the hare , this funding for a joint DOD-NASA program to develop a heavy­ lead was obtained while the "dumb bunny" United States was lift launch vehicle. That request was never even taken seri­ asleep. Stealing superior Westerntechnology also helpedthe ously by the Congress. plodding tortoise.

EIR June 5, 1987 Science & Technology 27 U. S. Persian Gulfpo licy: a chance for a change

by Paul Goldstein

"There is a major opportunity in the Persian Gulf for the posture in the region which would assure our allies in Europe United States to begin a process of reversing the disastrous and Japan that the United States would protect the interests consequences of the previous Iran policy, as a result of the of the West, not just-perceived interests of the United States USS Stark tragedy. Defense Secretary Weinberger is trying and the Russian Empire. This viewpoint is supported by the to ignite a shift in the overall U. S. military posture, albeit in fact that the United States gets only 7% of its oil from the a piecemeal fashion." This statement by a high-ranking mil­ region, while Western Europe and Japan are far more depen­ itary officialreflects both hope and anxiety about the newly dent on Gulf oil. The commitm�nt to prevent a Russian­ fashioned U. S. posture in the Persian Gulf. controlled chokepoint in the Gul( is thus a move to prevent Thehope is based upon some sound strategic and military the decoupling of the United States and Western Europe. assumptions which Weinberger and the President have put Second: as a result of the USS Stark tragedy, the Navy foward concerning the Persian Gulf situation. Command is no longer freeto determine U . S. global strategic First: the attempt to reverse the decline of U.S. power posture based upon assumptions for war-fighting which are and prestige in the region since the fall of the Shah of Iran not only unrealistic, but fail to grasp the nature of the poten­ and the removal of several U.S. bases in the region in 1974, tial strategic conflictwith the Russian Empire's "high-inten­ is central to the present U.S. deployment. Prior to the shift sity irregular warfare" policy, and as a sub-feature of that, its in U.S. deployment strategy, the moderate Arab nations led low-intensity conflict with Russian surrogate forces within by Saudi Arabia and Kuwait were demanding a greater U. S. the Persian Gulf. The Iraqi jet which scored a direct hit on presence in the Persian Gulf. the USS Stark by means of an Exocet missile, demonstrated Arab governments in the region were not only upset with that "Stage 3 alert status" is wholly inadequate for the present the Iran policy formulated by the illegal U.S. "parallel gov­ strategic situation. That alert status had been the standing ernment" that operated under the code name of "Project De­ orders given by the previous Navy Secretary John Lehman, mocracy," now being exposed in the Irangate scandal; they whose view of U.S. naval depl()yment was based on the had been actively pursuing contacts with the Russian govern­ TheodoreRoosevelt model of "gunboat diplomacy" vis-a-vis ment both officiallyand unofficially, to the exclusion of U . S. the Third World-not on meetiag the Russian challenge. policy interests . The long-held Russian imperial dream of This is one of the reasons for the Stage 3 alert status in a war controlling the Persian Gulf was becoming a reality. More­ zone where the danger to U.S. forces is underplayed,because over, the State Department, under the rubric of "Regional our mighty Navy would never be attacked, at least not suc­ Matters," had negotiated with its Russian counterparts a deal cessfully, by Third World nations. Lehman was a staunch for escorting Kuwaiti ships by both superpowers. This gave ally of the "Project Democracy" swindlers in the Reagan legitimacy to the Russian naval presencein thePersian Gulf­ administration. something the Russian Empire had never achieved. With the shift in the military-naval configuration in the Therefore , it became incumbent upon the patriotic faction Persian Gulf, the Navy will now operate in line with the of the Reagan administration to foster a change in the U.S. command structure of the U.S. Central Command based in

28 International EIR June 5, 1987 Oman. The Navy will take the point, backed up by U.S. air naled on May 28 a willingness to support the decision to bases in Bahrain and a future air base being negotiated in deploy U.S. forces in the region if the President invokes the Saudi Arabia. Although the Saudis will publicly deny this, War Powers Act. According to informed sources, the Presi­ U . S. intelligence reported that the Saudis enthusiastically dent may in fact invoke the Act as a way to demonstrate his back the plan. The reestablishing of U.S. bases, both naval willingness to seek congressional support, butnot at the price and air, and the creation of new ones, is one of the center­ of reversing his policy. pieces of the U.S. posture. This will shift the emphasis away The faction of senators and congressmen seeking to im­ from the 6OO-ship Navy policy of Lehman and move it closer pose a limit on presidential authority has strong links to the to former Chief of Naval OperationsAdmiral Watkins's idea Israeli lobby which sees in the U.S. deployment a shift away of developing deep-water ports around the key global cho­ from the Israel-NATO policy that many sought. These forces kepoints. think that Israel should begiven special NATO status to serve Third: for the first time since the ascension of Saddam as the "surrogate" of U.S. policy in the region. The net result Hussein to power in Iraq , the U . S. military investigating team of such a policy move would virtually guarantee Russian led by Admiral Rogers has been permitted access to high­ domination over the region and controlover the flow ofoil . level Iraqi military officials. The public apology to the United This political group in Congress is looking for every States by Saddam Hussein represents a break in his public opportunity to corral the President into a "weak-kneed" pos­ postureof never admitting a mistake, and signillswil lingness ture and seeks to lock the U.S. into an arms-control agree­ to open up channels to the Iraqi military, which had been ment which would decouple the United States from Western trained and dominated by Russian advisers. According to Europe. This reasoning is leading senators such as Richard U.S. intelligence, the pilot of the jet that attacked the Stark Lugar (R-Ind.) to demand more support from the NATO will be debriefed by the U.S. delegation and a determination allies. However, Weinberger and otherU. S. officialswill not will be made on whether the attack was a Russian-instigated let this issue stand in the way of promoting a stronger U.S.­ one, in which Soviet operational control over the Iraqi Air European alliance. In fact, according to informed sources, Force was greaterthan President Saddam Hussein's. Weinberger would never have initiated the new Persian Gulf This new opening signals to both the Russians and the policy unless he had received prior commitments from indi­ Iranians that there is a new U.S. policy being forged in the vidual NATO countries to support(he U.S. position. region with the intent of isolating and, if necessary, attacking the Iranian regime. This has caused great consternation with­ The aUiance's response in the Iranian military command, which fears that the Pas­ The Dutch and British governments have already sig­ daran(Revolutionary Guard) naval forces-which are inde­ naled their intention to militarily support the U.S. deploy­ pendent of the regularcommand-may in fact decide to test ment. The French will support the U.S. position politically, U.S. resolve. but will not upgrade their military posture. West Germany has not stated what its stance will be. The British position, The War Powers Act according to U.S. intelligence sources, will be strongermil­ In the last week of May, afteraU . S. naval escort convoy itarily than most people expect. However, the British will protected a Kuwaiti ship carrying military equipment to Bah­ await the anticipated Conservative Partyvictory in the elec­ rain and Defense Secretary Weinberger announced that the tions to finalize their plans for joint Anglo-American deploy­ United States was ready to immediately begin escorting Ku­ ments. During the NATO Defense Ministers' meeting in waiti tankers under a U.S. flag, key senators and congress­ Norway, Weinberger made it absolutely clear that the United men began placing obstacles in the way of the President's States has embarked an a new course in the Persian Gulf and policy by calling upon the Presidentto invoke the War Pow­ linked this policy to the strengthening of the NATO alliance. ers Act. As a result of this maneuver, led by Sens. Robert Whether this posture leads to an overall shift in U.S. Dole (R-Kan.) and Alphonse D'Amato (R-N.Y.), the White posture vis-a-vis the growing Russian threat remains to be House announced that the escorting of Kuwaiti ships will be seen. The administration's track record and the President's delayed for a couple of weeks. commitment to a summit with Russian leader Gorbachov According to informed sources, President Reagan will makes the anxiety among U. S. patriotic forces all the more not back down on the deployment of U.S. military forces in acute, because, as one military source told EIR . Weinberger the Persian Gulf, and the time lag is in order to rally congres­ and the patriotic faction do not have the political clout at this sional supportrather than to stop the deployment. Central to pointto stop what is known to be a bad deal with theRussian the President's strategy is the sending of Sens. John Glenn Empire. (D-Ohio) and John Warner(R-Va .) to the Persian Gulf, where In fact, the source stated that the "joint ventures" crowd they will not only announce support for the President's plan, around billionaire Soviet agent Armand Hammer still has the but will request an upgrading of U. S. force structure in the upper hand in shaping U. S. policy toward the Russian dic­ region. Senate Majority leader Robert Byrd (D-W.Va.) sig- tatorship.

ElK June 5, 1987 International 29 campaign, demanding that th� U.S. Department of Justice take precisely the course of action which Criminal Division head William Weld-whose business records expose his own personal connections to Soviet intelligence-launched on October 6-7 of that year.

Moscow admits The Soviet libel The unprecedented, mUlti-page libel featured in the Sep­ LaRouche is No. 1 tember 15, 1986 edition of the largest circulation Soviet publication, New Times. was the cause for the Paris filing of legal action under France's libel law of 1881, against New Soviet target Times. et al . In a virtually unprecedented action, the Soviets them­ Thefo llowing news release was issued by EIR' s Paris bureau selves entered the case as the voluntary defendants. Top­ on May 24: ranking French Communist Party attorney Joe Nordmann, who is the lawyer of all the cOlljlmunist-resistanceorganiza­ Strategic analysts are studying closely an astonishing docu­ tions in the trial of Klaus Barbie, was assigned as the Soviets' ment which the Soviets presented to a Paris court on Friday, principal legal counsel in the case. May 22. The document, purportedly the Soviets' defense It is Nordmann's motion in, response to charges, which motion in a libel action here, contains personal attacks on contains the extraordinarily "irulent personal attack on 1988 U.S. Democratic presidential candidate LaRouche so LaRouche. violent, that experts assess this as signaling that Moscow has The other most notable feature of the Soviet attacks on now openly targeted LaRouche as "Soviet public enemy LaRouche, is that the Soviets attempt to defend their publi­ number-one" worldwide. cations' action by adopting passages from documents of Intelligence services are watching the case closely, indi­ member organizations and agents of the same Project De­ cating that the Soviet actions in this case may lead to impor­ mocracy now under fire forcomplicity in operations involv­ tant adjustments in current strategic and related assessments. ing the drug-trafficking "Contra�' network. All of these cited The Soviets' motion asserts that the case against it should are known to be violently enemies of LaRouche, and some be dismissed, because, among other arguments, "LaRouche of them known collaborators of the Soviet government. was not the victim of any defamation." However, near the Some of these elements of Project Democracy, including close of the motion, the Soviet government insists that La­ the Anti-Defamation League, are key conduits for Soviet Rouche's policy "is no less disquieting than that which ani­ disinfonnation into the U.S. news-media and offices of the mated Adolf Hitler in Mein Kampf, like Hitler, LaRouche FBI and U.S. Department of Justice, and are closely linked bases himself on those values . . . which if they are someday with Soviet agent Annand Hammer. Moscow's principal put into practice, would lead to a concentration-camp soci­ "authority" cited is Dennis King, a fonner Maoist activist ety, perhaps different from, but just as monstrous, as the and avowed associate of the U,S. drug lobby. Since 1979 Nazi universe." King has worked closely with the ADL and with sections of This patternof Soviet public attacks on LaRouche began Proj ect Democracy, which assist political operations of So­ during April 1983, as part of the Soviet government's reac­ viet drug-traffickingcircles in Central and South America. tion to President Ronald Reagan's March 23, 1983 televised Since the Soviet governmentwas a leading factor in push­ announcement of the U. S. 's new SDI policy. The charge that ing for the series of legal harassments which the Department LaRouche was a sponsor of the SDI was the consistent alle­ of Justice has aimed against LaRouche's campaign and friends gation against the Democratic candidate, in numerous Soviet since September 1984, the possible bearing of the Soviet items published during the following dozen months. arguments in Paris on U.S. Departmentof Justice actions is LaRouche, whom Moscow believes to be the chief orig­ under close scrutiny. inal author of the U. S. SDI, has been the only sponsor of the SDI singled out for the kinds of persisting attacks the Soviets Justice Department angle have directed against him. Thereare presently the strongest indications that the pre� Later, in close collaboration with the U.S.-based Anti­ text for setting these legal harassments into motion was Pres­ Defamation League (ADL), Moscow concocted and spread ident Reagan's issuance of two National Security Decision the allegation that LaRouche had been behind the Feb. 28, Directives, NSDD 12333 and N�DD 12334, during Decem­ 1986 assassination of Swedish Prime Minister Olof Palme. ber of 1981. If Dennis King's, the ADL's, and the Soviet The same year, beginning August through the end of Septem­ government's "Nazi-like" allegauons against LaRouche were ber 1986, the Soviet governmentlaunched a fresh, intensive adopted by the Department of Justice, both under the lan-

30 International EIR June 5, 1987 guage of the Holtzman bill setting up Neil Sher's OSI, and under NSDD 12333 and NSDD 12334, this would provide the only available pretext for the kinds of covert and open FBI and DOJ actions which have been conducted. If the President's NSDD 12333 and NSDD 12334 are indeed the pretext being used to run DOJ and FBI operations against LaRouche and his friends, that fact would explain fully the otherwise curious motives of the Soviets for their Wal dheim case bares choice of virulent personal attacks on LaRouche in the Paris motion. In the case that NSDD 12334 is the model pretext modern Inquisition for the FBI's and DOJ' s two-and-a-half-year vendetta against LaRouche and his friends, then the Paris trial would put the by Mark Burdman entire Soviet-pushed U.S. operations against LaRouche et al. into jeopardy . "The modem Inquisition needs no proof, no evidence, but The Waldheim case only a culprit." The Soviet connection to such actions by the DOJ is So commented the daily Die Presse, Vienna's newspaper identical with the Soviet authorship of the actions by Attorney of record, May 18, about the visit of two leading ·officialsof General Edwin Meese and President Ronald Reagan, placing the U.S. Justice Department, Deputy Assistant Attorney Austrian President Kurt Waldheim on the U. S. "watch list" General for Litigation Mark Richard and Office of Special of undesirable aliens. Investigations (OS I) head Neil Sher, to Austria's capital, The U.S. government has repeatedly refused to present during the May 15-17 weekend. In Vienna to present "the the Austrian government any evidence supporting Attorney case" of the U.S. government in declaring Austrian President General Meese's actions. However, the presence of the DOJ's Kurt Waldheim persona non grata in the United States, Rich­ Mark Richard and OSI's ADL-collaborator, Neil Sher, head­ ard and Sher presented not one shred of evidence, but only ing the recent delegation to Vienna, clarifies the action great­ informed the Austrian government of the legal procedures ly. the United States had used, in coming to the decision against The only pretext of evidence against President Waldheim Waldheim. is a Soviet document which Moscow asserts to be based on The delegation only "confused and provoked," the same an NKVD official's discussion with a member of Josip Broz day's Die Presse charged. One day later, on May 19, Die Tito's Yugoslav partisans , a single meeting asserted to have Presse's Thomas Chorherr wrote, about Richard and Sher: occurred immediately fo llowing World War II. There is no "From Washington, came a 'high-ranking' delegation, with document found in exhaustive, expert search of the Yugosla­ full mouths and empty hands." vian archives which supports the content of this recently The Justice Department argument boiled down to three presented hearsay allegation. Meese's Departmentof Justice points. One, as an Oberleutnant (second lieutenant in Amer­ refuses to permit the content of this Soviet document to be ican ranking) in the Austrian army under German command exposed for examination. in the Balkan theater in the 1940s, Waldheim would have Under an arrangement established by Secretary of State been in the proximity of places where war crimes were being Henry A. Kissinger, in the matter of alleged Nazis and neo­ committed. Second, Waldheim would have "known" that Nazis, the U.S. Department of Justice accepts the presenta­ such crimes were being committed. Third, Waldheim's own tions of the Moscow Procurator and KGB as uncontested explanations about his activities with respect to that period fact. NSDD 12333 and NSDD 12334 provide the mechanism have not been "credible" in American eyes. by which Soviet pressures for DOJ and FBI actions against The U. S. delegation did not even bother to explain, much LaRouche could lead to covertand other actions taken under less express regrets over, the fact that Waldheim, elected the authority of President Reagan's formulation. President in a democratic election, had not even received a If that is the structure of DOJ dirty operations against formal hearing on the U.S. side. As the Jerusalem Post LaRouche et a1 . , and all the evidence points in that direction, reported from Vienna, May 17, the Justice Department offi­ then the Soviet government's voluntary entry into the Paris cials "only gave an oral account. They explained that Wal­ case is understandable. On this issue hangs the pretext for dheim had served in a unit of the German army involved in eliminating LaRouche physically by aid of so-called legal war crimes, and this was enough according to U.S. law to means. put him on the list. No personal guilt was needed." The Post Some senior intelligence sources estimate, that if this noted that Austrian ambassador to the United States. Thomas Soviet legal tactic fails, Moscow will move to assassinate Klestil, attending the meeting, responded that if this criterion LaRouche at the earliest opportunity. were really applied, "half of the surviving veterans of the

EIR June 5, 1987 International 31

embourg May 25, "There is nothing against me other than OSI weekly Pro./il. was forced to admit, in the May 18 edi­ the fact that I was a member of the Wehrmacht. My family tion, that "there is a certain injustice against Waldheim him­ was persecuted by the Nazis. My father was arrested imme­ self, for he was not a Nazi, and was no war criminal ." But, diately after the Anschluss . My entire family suffered greatly. added Lingens, the Waldheim case was useful in underscor­ We were forced to do military service. The chances of getting ing the collective guilt of Austrians toward the matter of out of military service were minimal . I was 21 years old and Nazism! there were millions and millions of young people who did Item: If Yugoslavia, since the late 1940s , has been in exactly the same thing." possession of "documents" implicating Waldheim, how did As for the Waldheim dossier itself, we make a few brief it come to pass that they only emerged into the light of day in points: the mid-1980s? Waldheim, afterall , has hardly been a private Item: The May II Berliner Tagesspiegel indicated that figure. Afterserving in positions as high as Austrian foreign the basic evidence against Waldheim was presented by a minister and on high-level United Nations bodies, he was Yugoslav, Colonel Golendic, to the station chief of the Soviet United Nations secretary-general, beginning in 1972, for NKVD (the predecessor of the KGB) in Vienna, in the 1947- approximately a decade. In that latter position, he received a 48 period. The dossier is principally a Soviet/East Bloc cre­ special security-clearance status, which made him privy to ation. information that many heads of state are not even allowed to Item: An Austrian investigative team sent to Yugoslavia see. Why the silence from the United States all those years? in mid-May, headed by historian Manfred Rauchensteiner, Why did the Soviets not only maintain silence about Wal­ found no evidence to implicate Waldheim, and, according to dheim, but also treat him with great friendship all those years the May 19 Die Presse, came back with suspicions that the (as they are now pretending to do again, today, for various material "may have been doctored." The same day's Neue cynical and opportunistic reasons)? Aren't the Soviets so Kroner Zeitung commented that, on the basis of the findings pious about attacking "Nazis" and "fascists"? by Rauchensteiner et aI ., the whole "house of cards" on Where was Israel all those years? And what about the which the Waldheim accusation had been based was "col­ other United Nations Security Council members: France, lapsing." Even Peter Michael Lingens, the editor of the pro- Britain, China?

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EIR June 5, 1987 International 33 Mother Russia by Luba George

Racist society steps into limelight Russians," and the persecution of the The Russian "Memory"society has come out of the shadows to Russian Orthodox Church. bolster the Military Command's ambitions fo r world rule. Veche was suppressed in 1974. Then in 1980-81 appeared another samizdat publication, called Mno gaya Leta (Many Years). Its editor is Gen­ , nadi Shimanov, an extreme Russian World Zionism, Freemasonry German daily Suddeutsche Zeitung of chauvinist, who had been internedfor and imperialism" threaten the world, May 26, Pamyat has been heavily several years at a KGB psychiatric and above all, Mother Russia. A funded and otherwise promoted by the ward. Mnogaya Leta was allowed to "Russian national rebirth" must oc­ GRU and KGB , with much of the op­ advance, uncensored, the Veche line, cur, based on a mixture of Russian eration conduited through the Minis­ now stressing the common interests Orthodoxyand a returnto old-Russian try of Civil Aviation. between the Orthodox conservatives beliefs away from "the Jewish reli­ In recent months, Pamyat has at­ and the Soviet State. The true spiritual gion" of Christianity , to the old Slavic tracted popular support across the danger to Mother Russia, argued Shi­ gods of Perun and Dash. This is the Russian Republic and beyond. This is manov, was the "Jewish-Masonic credo of a Great Russian racist soci­ not surprising. Many Pamyat mem­ conspiracy" and the West, especially ety , called Pamyat (Memory), now bers also belong to another "Russian the United States, the latter-day Ba­ getting enormous publicity in the Party" creation, the mass-based Soci­ bylon. False, secular Western models U.S.S.R. Its leaders include the Dos­ ety for the Protection of Ancient Mon­ must be replaced by a "religio-patriar­ toevskian mystic icon-painter, Ilya uments, founded by the late Soviet chal organization of life." Glazunov. Marshal V. Chuikov. According to There are striking similarities be­ Pamyat, the latest manifestation exiled Russian author A. Yanov, it tween MnQgaya Leta's program and of organized Great Russian Race was Marshals Chuikov and Kulikov, Pamyat's. Pamyat members attack chauvinism, is prominently featured WarsawPact commander in chief, who "international Zionism" and the in the Soviet media and has received secured permission for the publication "Americanization" of Soviet society, all-but official endorsement. The in Moscow of Ivan Shevtsov's explic­ with the same language found in Mno­ Moscow-based Pamyat Society, a itly chauvinist and anti-Semitic nov­ gaya Leta. Pamyat, like Mnogaya creature of the "Russian Party," was els. Leta, also advocates a "concordat" be­ formed in the early 1980s, as the post­ Pamyat's program can be traced tween the Russian Orthodox Church Brezhnev period began. Originally to other "Russian Party" -created van­ and the Soviet State. devoted to "preserving Russian histor­ guard movements, in the 1970s and This is the M ein Kampf milieu out ical and cultural monuments, sites and earlier, ranging from dissident groups of which the Soviet Culture Founda­ treasures," it has now shown its true and underground organizations linked tion leadership emerged. The head of colors as an anti-Semitic society. to the Veche and Mnogaya Leta pub­ the Foundation's Presidium, Dmitri S. The Soviet youth paper, Komso­ lications, to official publications like Likhachov. 80, an arch-Russian chau­ molskaya Pravda, May 24, quoted Molodaya Guardiya and Nash Sovre­ vinist, was prominently featured in a Pamyat members objecting to Jewish menik, out of which came the "village 1981 Pamyat publication as the move­ emigrants being allowed to return to writers" Valentin Rasputin, Vasili Be­ ment's "spiritual father." the U.S.S.R. "Instead they should be lov, and Sergei Zalygin, who today Many reliable sources have noted facing a firingsquad ," said one. adorn the leadership of Raisa Gorba­ for some time that Soviet leader Mik­ On May 6, over 400Pamyat mem­ chova's Soviet Culture Foundation. hail Gorbachov and Marshal Nikolai bers demonstrated near the Kremlin, The samizdat (underground) jour­ Ogarkov are leading members of the unmolested of course, with placards nal Veche, spawned in 1971, pro­ "Russian Party." The Russian High reading "Down with the enemies of fessed loyalty to the Soviet state, but Command understands that Ogar­ perestroika (restructuring)." Thenext attacked the State's widespread de­ kov's perestroika requires the enlist­ day, a Pamyat delegation was re­ structionof Russian historicaland cul­ ment of a "Great Russian" people to ceived by Soviet candidate Politburo tural monuments, "the rape of the en­ make the sacrifices necessary so that memberand Moscow city partyboss , vironment," demographic and social Moscow can enter the Third Millen­ Boris Yeltsin. According to the West threats to the well-being of "ethnic nium ruling the world.

34 International EIR June 5, 1987 the political temperature in Manila and within the military to Philippines a boiling point, but a coup has been , for the moment, pre­ cluded by the full U.S. backing for �e Aquino government, support that goes as far as the early May transferral of 20,000 Aquino shows Marines from Okinawa to Subic Bay. Vendetta tactics the IMF fist On May 27, the Aquino government launched its cam­ paign of political vendetta against the Grand Alliance lead­ by Linda de Hoyos ers. The Manila Bank, the third largest bank in the Philip­ pines with over I million depositors and 72 branches nation­ wide, was summarily shut down in ,a Chapter 7 involuntary In the second week after the May 11 congressional elections bankruptcy proceeding brought by the Central Bank and its in the Philippines, the Aquino government's heavy-handed chief Jose "Jobo" Fernandez. The bank is owned by the Puyat tactics against its legitimate opponents has sent a political family of Grand Alliance chairman Vicente "Teng" Puyat. chill throughout the country. At 8 a.m. in the morning, Philippine marshals sealed offthe As of May 29, the Aquino governmentcontinues to claim bank's main branch and informed Puyat by phone that the that only one member of the opposition Grand Alliance for bank would no longer be open for business. Democracy slate won a seat in the 24-person Senate, thereby The bank seizure, said Puyat, "is a classic act of political turning that newly created institution into a rubber-stamp vendetta by the Aquino government." The action was taken, body for the policies of President Corazon Aquino and the he said, to punish Puyat for his harsh criticism throughout families and interests around her. On May 27 , more than two the campaign of the economic policies ofthe governmentand full weeks afterthe elections, Comelec, the governmentelec­ its surrender to the International Monetary Fund and World tion commission, had counted only 75% of the vote, and had Bank, and his naming of Finance Minister Jaime Ongpin and stopped counting due to the high number of irregularities in Central Bank chief Fernandez as the top IMF henchmen. the vote tallies. For example, in the Ziga district, 150,000 Ongpin himself is credited with directing the Manila Bank votes were counted, although the district has only 110,000 shutdown. The "word" in Manila is that he gave Aquino the voters . The pattern is repeated throughout the country. Aqui­ lying report that Puyat was funding the anti-Aquino rallies no presidential press secretary, former Communist Party through the bank, and that on this basis, Aquino gave her member Teodoro Benigno, had announced the "landslide consent to the bank's seizure. victory" only two hours afterthe vote had closed, when no The bank's assets, which outweigh its liabilities anyway, votes had yet been tallied! His "report" has stuck. according to bank president Consuelo Puyat Reyes, are now By the week following the elections, the dangerous im­ in the hands of the Central Bank. There are now reports in plications of the gross fraud committed by the Aquino gov­ Manila that First Bank of Boston, wltichwas last year caught ernment-withthe full backing of the United States-began laundering more than a billion doJlars in drug money, is to emerge. On May 26, the Grand Alliance for Democracy, keenly interested in buying up the Manila Bank. Puyat's bank along with protestors from Ferdinand Marcos's KBL, held a is slated to become one of the first victims of the Ongpin 15,OOO-person rally outside Camp Aguinaldo and Camp policy of debt-for-equity sellout that he denounced through­ Crame, the military encampments on the perimeter of Manila out the campaign. which were the site of the "people's power" protests that By the last few weeks before the election, Puyat's cam­ broughtdown Marcos in 1986. paign against Ongpin et al . had succeeded in galvanizing the Although the protestors were non-violent, riot police from nation's major columnists to oppose Ongpin's sellout. Now Quezon City were dispatched to the scene, and began shoot­ all attacks on Ongpin have ceased. Before the elections, it is ing into the crowd. Although the news was blacked out of the estimated, presidential secretary JOker Arroyo, a factional international press, our special correspondent in Manila re­ rival of Ongpin within the cabinet, had permitted the anti­ ports that at least two people were killed, with unconfirmed Ongpin campaign. Now, all articles and television tapesmust reports that up to 11 people were killed, including a two­ be submitted to a board of censors. month-old baby . When some of the protestors ran to the gates The mood in Manila is angry and tense, reports our spe­ of Camp Aguinaldo, they received protection from the mili­ cial correspondent. But this anger is muted by fear. The tary, who told the police that if they persisted firing, they "people's power" democracy, Filipinosnow know, has been would be drowned in blood themselves. a giant hoax. Behind the image of "Saint Cory," the IMF and This is the second time that Aquino's riot police have the World Bank, which May 28 announcedit will not fund a shot into the crowds-actions unheard of during the Marcos land reform program in the Philippines, are more firmly in "dictatorship." The violence at the demonstration brought the saddle in Manila than ever before.

EIR June 5, 1987 International 35 The next Soviet 'Sputnik': strategic radio-frequency assault \Veapons by Lyndon H. LaRouche, Jr.

Soviet military technology is nearing the point of catching a 1983, we found ourselves in areas of what is called "optical Gramm-Rudmanized United States, strategically flat-footed. biophysics," which led us to map out the possibility of devis­ The new Soviet weapons are fairly described as a "Sputnik ing radio-frequency technologies which could do a variety of of the 1980s"; they are radio-frequency assault weapons suit­ desirable and also unpleasant things. Among the effects pos­ ed for use against both tactical and strategic targets. For a sible, was the killing of badly behaving cancer tissue, or large portion of Soviet strategic targets these new assault healthy persons, with a remarkably low wattage on the target weapons are as deadly as nuclear warheads. area. Back in 1982, when EIR was outlining the feasibility of Gradually, with the aid of various specialists we pieced what later became known as the Strategic Defense Initiative together the critical features of the method, and learnedenough (SDI) , EIR was already looking at the possibility of such to permit the design of such weapons. During 1986, we had weapons becoming strategic weapons, although we proposed the opportunity to test out the principle of such a weapon's then that such weapons were a bit further down the road than design. What was astonishing to us was the relative ease with SDI as such. which such a weapon could be deployed. After this, we took When the Soviets falsely accused the U.S. of intending Soviet threats to use such weapons very seriously. to use a space-based SDI system as a strategic assault capa­ We consulted with both scientists and military profes­ bility against the Russian empire, the Soviets were admitting sionals on both sides of the Atlantic . With scientists, we that their own version of "SDI," on which they had been working since at least 1962, included such a radio-frequency beam capability. Then, as a by-product of our research into certain crucial features of the physiology of human brain functions, during

FIGURE 1

The first coherent radio and microwave generators were constructed with ordinary types of materials-copper wire windings, paper and plastic insulation, etc . But these ordinary materials "break down" when exposed to extremely high energy densities-intense electric and magnetic fields. That is, their chemical bonds literally are broken apart. An overloaded copper wire will melt. A heavier electric load can vaporize and even ionize it-i.e. turn it into a plasma. Plasma-a sort of fo urth state of matter, liquid, gas and solid being the ordinary three-is unlike conventional materials in that it can be made stronger and more finely structured through increasing the electric and magnetic field intensities. Therefore, ifproperly structured, plasmas offe r a means of vastly increasing both the power density and coherence of elec!romagnetic wave generators.

Figure la shows a diagram from the Soviet scientist Peter Kapitsa's work on plasma "gyrotrons" -high fr equency microwave generators. Figure Ib shows a superconducting Josephson junction assembly fo r a computer circuit being extracted fr om its cooling system . These materials exhibit "plasma" behavior at low (Half�wavelength) ElectriC field on axis temperatures. j worked on related areas of technology, including our re­ government into a "zero-option" agreement. Since we know­ search into methods of biological research needed for mas­ contrary to many wishful Western strategic analysts and oth­ tering AIDS. With military specialists, we consulted on the ers-that Moscow is determined to win a strategic confron­ new Soviet military options for attacks into Western Europe tation with the United States a few years ahead, we had to made feasible by use of such weapons for tactical operations focus on the kinds of decisive, almost irreversible advantages and strategic assaults. Moscow would gain from-say-a 1990 implementation of The gist of the feasibility of anti-personnel radio-frequen­ the proposed "zero-option" agreements. cy weapons, is that all living processes are harmonically Soviet radio-frequency weapons came prominently into tuned to specific electromagnetic pulses. The DNA of the focus in Soviet forward war-planning for the early 1990s. cell, for example, absorbs energy at specificlower frequen­ The crucial point is, that using the kinds of radio-fre­ cies, and emits coherent pulses, somewhat like laser action, quency weapons we know could be produced, the Soviet one quantum at a time, within the ultraviolet spectrum. All military intelligence service's spetsnaz "special forces" troops, aspects of living processes have characteristic, harmonically operating deep inside Western European territory, could use ordered tuning. "hand-carry" weapons such as compact nuclear bombs and This principle may be used for fundamental biological radio-frequency weapons to take out most of the approxi­ research into aspects ofliving processes otherwise not under­ mately 250 key strategic military and logistical targets we stood. It can be used to develop cures for such diseases as had earlier assumed were targets for Soviet missiles' war­ cancer or AIDS. It can also be used as the basis for design of heads. extraordinarily efficient weapons, against unwanted hordes In�tead of a Soviet GSDD force's tank assault into Ger­ of insects, or persons. These weapons do not depend upon many, we must expect a major role by Soviet spetsnaz and the much less efficient, lower-technology use of microwave other irregular forces behind allied lines, paving the way for weapons. Very low wattage per square meter on targets is an airborne assault, using Soviet tanks essentially for occu­ sufficient. pation forces, rather than forces of the initial assault. Com­ The Soviets began to reveal much more , as they disclosed pact nuclear bombs, in some cases, plus radio-frequency more and more of the details of Marshal Nikolai Ogarkov' s weapons, would make the difference. Soviet nuclear missile pre-war mobilization program, perestroika . They revealed arsenals would play a part in the assault, but a smaller portion much more by the kinds of concessions Marshal Ogarkov et than might be otherwise assumed. al . permitted General Secretary Mikhail Gorbachov to offer In this area of technology, the United States and its allies as "bait" to the United States, in efforts to lure the U.S. are potentially ahead, but only potentially. Coming issues of EIR will be devoted to unveiling more of this technology, in the same way we campaigned for adop­ tion of what became SOl back in 1982.

Figure Ie shows a large-scale utilization of a plasma "waveguide"­ the U-25 MHD electric power generating plant in Moscow. Figure Id shows the crude type of electrodes that can be utilized to generate an extremely fine-structured plasma waveguide . Irangate scandal in Mexico may sink Wall Street's presidential favorite by Hugo L6pez Ochoa

The ramifications of the "Iran-Contragate" scandal toward of the country, where Velazquez charges that Ricardo Villa Mexico, detailed to a large extent by the Miami Herald of Escalera-the PAN leader who met with "Spitz" Channel, May 10, could end the presidential aspirations of that coun­ the fundraiser for the Nicaraguan Contras-"is not the only try'sInterior Secretary , Manuel Bartlett Dfaz. A serious in­ PAN member who assaulted the interests of the country, but vestigation by the Mexican government would reveal that that the entire leadership of the National Action Party com­ Bartlett Dfaz not only protects the Nazi-communist National mitted acts of treason ....If these acts of treason to the Action Party (PAN), whose leaders directly coordinated with country be proven, it would be sufficient cause for the au­ the apparatus of Irangate protagonist Col. Oliver North; but thorities to cancel the registration of this political institution." that Bartlett himself is an integral part of North's machine, Fidel Velazquez's declarations were made to refute the ar­ which illegally sold arms to Iran to channel money to the gument used by the PAN leadership in the Chamber of De­ Nicaraguan "Contras," under the cynical name of "Project puties, the lower house of Mexico's Congress, where they Democracy. " had to answer the charges published by the Miami Herald. In fact, some political circles have begun to press for such They claimed that the cited Ric�rdo Villa Escalera "was not an investigation. On May 16, the nationally circulated daily authorized" by the PAN leadership to meet with "Spitz" La Prensa reproduced parts of a news release from the Mex­ Channell, and that, if he did, they would only take "disci­ ican Labor Party which reveals that "there are interests within plinary" measures against him. the governmentof Mexican which are attempting to keep the On July 18-19, the columnist of Mexico's biggest daily truth ofthe treasonous marriage ofthe PAN with imperialism Excelsior, Jose Luis Mej fas , put into his "The Untouchables" from being known by the people of Mexico in its full mag­ col umn lengthy reports showing �hat other PAN leaders, such nitude." Although the cited newspaper did not mention the as Jesus Gonzalez Schmall, Rodolfo Elizondo Guillermo powerful Interior Secretary, it uncovered the tip of the ice­ Lujan, and Francisco Barrio, "paid a visit to the Organization berg by indicating that according to the Mexican Labor Party , of American States, seeking political support against the the "U.S. public relations firm, the Hannaford Company, constitutional government of �exico." Mejfas reproduces contracted in 1985 by Manuel Alonso M., press secretary of detailed information previously published by EIR , on the the President's Office to 'improve Mexico's image abroad,' PAN leaders's relations with the firm Clews Comunications, is part of the illicit network of the convicted criminal Carl Inc., whose chief, Carter Clews, is registered as a "foreign 'Spitz' Channell and his accomplice Oliver North." Manuel agent" of the PAN with the U.SHustice Department. Alonso is identified as a henchman of Budget Secretary Car­ But it was Villa Escalera's own uncontrollable tongue los Salinas de Gortari , who shares the "structural reform" that blew up the hysterical cover-up attempts of the PAN ideas of Project Democracy. leaders. On May 11, he put out a press release attributing the Another nationally circulated daily, El Sol de Mexico, revelations of the Miami paper to an "ongoing defamation wrote on the same day that "the Mexican Labor Party yester­ campaign" by the Mexican governmentand U. S. presidential day issued written proofs of the participation of the PAN in a candidate Lyndon H. LaRouche,: who, according to the PAN , continental plan of supposed democratization, including the "is behind the spreading of this story." On May 13, in state­ overthrow of the Mexican government.... It demanded ments to the dail y La J ornada, V.lla Escalera confirmedwhat that in the face of the evidence of this conspiracy against the Miami Herald had publishe4 on May 10, saying that in Mexico, a high commission be formed to investigate the one of the meetings, on Aug. 14, 1986, one day after the charges." Reagan-de la Madrid encounter, Channell had asked the PAN Skillfully, the reporter wove into the same news story for $210,000 for a public relations drive in favor of the statements by Fidel Velazquez, the leader of the Confedera­ Nicaraguan Contras , in exchange for the supportof the Rea­ tion of Workers of Mexico, the biggest labor confederation gan administration for the PAN's activities to destabilize

38 International EIR June 5, 1987 Mexico. ''The meetings were . . . in the offices where they objective openly sharedby both the PAN and the communist worked . . . at 1300Connecticut St." confessed Villa Escal­ United Socialist Partyof Mexico (PSUM). Moreover, at this era cynically to La Jornada. moment Bartlett is the principal toolof the powerful financial He added: "Look, this Fund for the Preservationof Free­ interests of the U.S. Eastern Establishment which are at­ dom [founded by 'Spitz' Channell] is a foundation where I tempting to provoke the "Iranization" of Mexico, as was arrived. . . . They were making television ads for the Con­ documentedin 1986 in the book, The PAN . Partyo/ Treason. tras.. ..This fe llow [Channell] had various employees, published by the Mexican Labor Party in Mexico and also among them this girl McLaughlin . . . who was dedicated to issued in the United States in English by EIR . getting money from all the private citizens who wanted to Using the PAN as a weapon to threaten civil war, Bartlett collaborate in the Contras' program." hopesto impose on Mexico a "two-partysystem" supposedly Villa Escalera promised to speak with "Mexican busi­ in imitation of the U.S. model of "democracy." His candi­ nessmen willing to contribute money because they consid­ dacy to become Presidentof Mexico for the 1988 elections is ered the PRI [the ruling party of Mexico] as a communist backed by the drugbankers ' mafiawhich controls Mexico's partyand . . . pro-Sandinista," said the M iam; Herald. based so-called parallel banking system, the stock market. In 1982, on Jane McLaughlin's personal notes. then President Jose L6pez Portillo nationalized Mexican It was not hard for Villa Escalera to keep his promise. In banking to take away from this powerful group its dictatorial mid-March in Mexico City, the Ibero-American Business­ control over the country's economy, since instead of invest­ men's Forum held a meeting, attended by (among others) ing in Mexico they devoted their money to speculation, laun­ Villa Escalera himself, many businessmen from Coparmex, dering of dirty money from the dope trade , and facilitating the big employers association-whose millions of dollars of capital flight of over $50 billion out of the country-half of flight capital aredeposited in the United States-and Jaime Mexico's foreign debt! Morales Carazo, the "liaison" of the Contras in Mexico. This clique, which forms the Mexican branch of the East­ Morales Carazo gave "us a stupendous speech," Villa Escal­ ernEstablishment, is made up of individuals such as Manuel era said to La Jornada. Espinoza Iglesias, Miguel Aleman, theLegorreta fami ly, and The meeting had the financial support of the International Carlos Hank Gonzalez, among others. In the four years of Center for Private Enterprise (CIPE), funded in tum by the the Miguel de la Madrid government, this group succeeded National Endowment for DeQIocracy, the public arm of the in getting a concession on the Mexican stock market, like a conspiratorial Project Democracy. kind of parallel private bank, with which today they manip­ But Villa Escalera also told La Jornada: "As I say, we ulate the capital that "returns" to the country and are in a are the Contras in Mexico." This statement is not a pose; position to blackmail the Mexican government by financial various PAN leaders have repeatedly stated that their objec­ warfare. The ideological chieftain of the group is Juan San­ tive is to finishoff Mexico's presidentialsystem and that they chez Navarro, not accidentally, the same person who orga­ are willing to use violence. Such a statement on Villa Escal­ nized the Ibero-American Businessmen's Forum last April, era's partshould not only be enough for the Congressto take where, besides conspiring to make sure that President de la action, but also for the Interior Department, which is in fact Madrid did not adopt the "Alan Garcia model" to deal with responsiblefor state security. the debt problem, gave a forumto the Contra Jaime Morales Nonetheless, the Mexican Congress decided that it is not Carazo (who met with Villa Escalera) to carry out a campaign capable of carrying out the proposed investigation, and sent to raise money for the Contras. it back to the "authorized" institution, the Federal Electoral In its desperation to keep the PAN scandal from wrecking Commission of Mexico, which is controlled by Interior Sec­ its game, millions are being doled out to the Moscow-con­ retary Bartlett. trolled partiesto keep them backing the PAN . ''The hysterical Bartlett is now on the spot. His aim is to work out a deal campaigns against National Action (PAN) have to stop," said with the PAN executive to merely purge Villa Escalera and Congressman Pedro Penaloza on May 16, in the name of the his group as "scapegoats." It remains in the hands of the Trotskyist Revolutionary Party of Workers (PRT) to the nationalists and patriots inside the PRI, to make sure that any newspaperEl Universal. Pablo G6mez, general secretaryof effort to make such a deal will merely serve as evidence the communist PSUM, told the same daily: "We want to before public opinion that Bartlett himself has to be investi­ overthrow the (Mexican) presidential system and not the gatedfor treason togetherwith thePAN leadershipas a whole. PAN ." As is obvious, just as in the U.S. lrangate scandal, where Irangate and the 'Iranizers' arms were being sent to the Soviet asset and terroristKhom­ Bartlett's connection with the Oliver North political ma­ eini, in order to obtain funds for the "anti-communist" Con­ chine is no accident, nor is it limited to mere "sympathy" tras-in Mexico, the Interior Secretaryhas runinto the same toward the PAN . On the one hand, Bartlett shares with Proj­ contradiction, by feeding the formal alliance between the ect Democracy the aim of destroying the presidential system PSUM (formerly known as the Communist Party of Mexico) and replacingit with a British-style parliamentarysystem ; an and the "Contra" PAN .

EIR June 5, 1987 International 39 According to one source in a position to know, Hald�mann Investigative Leads gave them both a detailed account of what it's like to be in jail. One aspect of the Ledeen-Khashoggi meeting involves their common "Israeli connection," a journalist named Dafra Barak, who writes for the leftist magazine Hoalem Hazeh . This Israeli lady is, according to good information, Khash­ oggi's Israeli romance. At the same time, Israelis in a position to know refer to her as "Ledeen's girlfriend here," and speak New tracks on of the "good relations" between the two. We don't know what Ledeen's influential wife Barbara Irangate's Ledeen would have to say about such talk, but we do know that Dafra Barak is the first person Ledeen contacts when he comes to by Mark Burdman Israel. She is assisting him in a legal case now in preparation , against another Irangate insider, the 33-year-old Amiram Nir. Irangate investigators might find it well worth their while to One reported motivation behind such a lawsuit, is that devote some attention to the latest exploits of chief Irangatel Ledeen is angry about what Nir told the Tower Commission Project Democracy protagonist Michael Ledeen, in Europe about Ledeen's role in the Israeli-U.S.-Iran arms-trafficking and the Middle East. deals. According to information received by EIR , Ledeen spent A second, possibly more intriguing, suggestion, is that the first days of May at the prestigious Cini Foundation in Ledeen and other Irangate insiders, including former Foreign Venice, as one of the participants in an extraordinarily lavish Ministry Director-General David Kimche, have decided to conference sponsored by the New York City-based Young make Nir the "fall guy" for the Irangate deals, to treat him as Presidents Organization and financed by American Express "the Israeli version of Oliver North." This would be a dam­ bank, with some "cultural" assistance from the Guggenheim age-limitation exercise, in the same sense as many corrupted Foundation. One Venetian insider said privately, that the individuals in the United States have tried to make North's conference was the most lavish he had seen in years in the operation (or, for that matter, the operations of Mossad spy city. Four hundred business executives, many accompanied Jonathan Pollard) appear to be a rogue operation divorced by their wives, spent four or five days in Venice, and then from Project Democracy. were given a tour of Rome. Toward such efforts , Ledeen was in Israel some time One highlight event, during the strictly confidential con­ around late-Marchlearly-April, .and granted his "girlfriend" ference proceedings, was a speech by Ledeen on "The Anat­ Dafra Barak an interview in Hoalem Hazeh. omy of Terrorism," a subject he certainly knows quite well from the inside . They were treated to Ledeen's first-hand Ledeen, Israel, and the Russians account of his exploits with Lt. -Col. Oliver Northand friends. Despite all the efforts by U. S. congressional committees, Ledeen being at Cini is interesting in and of itself. The the Mossad, Project Democracy, ad nauseum, to cover up Foundation, on the Benedictine-dominated island of San the real dimensions of Irangate, the New York Times's May Giorgio Maggiore, frequently sponsors highly important cul­ 27 revelations about Soviet-Israeli collusion to sell arms to tural events, especially those that equate modernist degen­ Iran, should make cover-ups all the more difficult. From this eracy and mystical cultism with culture. Following a recent standpoint, Ledeen's relationship to Hoalem Hazeh is quite conference at the Cini Foundation, a journalist for the Soviet fascinating. governmentnewspaper Izvestia praised Venice as the moth­ The magazine's founder and editor, Uri Avnery, is a er-center of world culture . The Foundation's original patron, prominent figure in the international left-radical jet set, whose the Venetian Count Vittorio Cini, a minister in the Mussolini sympathy for pro-Soviet causes is not limited to his close government and financialwizard for leading Venetian fami­ relations inside Israel to assets of the pro-Moscow Israeli lies, has been cited by Ledeen as one of the most important Communist Party. One of his mpre recent claims to infamy, influences on Ledeen's book, Universal Fascism, a book was his public supportfor the cause of the Soviet-sponsored which is favorable to fascist ideology. West German Green Party , an entity that wiser Israelis have Even if Irangate investigators would want to avoid the correctly denounced as Nazi-lil¢ and anti-Semitic. One Is­ deeper cultural aspects, the goings-on at Cini in early May raeli source stresses that Dafra Barak is "very close to Uri would be interesting from a more limited standpoint. During Avnery." his stay in Venice, Ledeen met with Irangate cohort Adnan Avnery, both personally and through the New York office Khashoggi, as well as with Watergate culprit R. "Bob" Hal­ of his magazine, has been very active in defamation and demann, the Nixon aide who has already servedtime in jail. counterorganizing against EIR founder Lyndon LaRouche.

40 International EIR June 5, 1987 Book Review

New attempt to cover up the English side of the Bolsheviks' 'Trust' by Allen Douglasand Scott Thompson

after his disappearance into the U. S. S . R. in 1925. For Lockhart, the son of one of Reilly's closest collabo­ ReWy : The First Man rators, to lift the veil from the 1918-25 period, would mean by Robin Bruce Lockhart to really expose Reilly, as a central figure in British and U.S. Penguin Books, New York, 1987 intelligence, banking, and industrial circles, who helped 176 pp. , $3.95 paperbound sponsor the Russian Revolution of 1917 in the first place! In the 1920s they continued that under the auspices of the or­ ganization known as the Trust, and many of their political Robin Bruce Lockhart, who catapulted British Secret Intel­ (and biological, where sexual proclivities permitted) heirs ligence Service (SIS) agent Sidney Reilly into popular fame prolong their assistance to Soviet world domination. and televised glory as Reilly: Ace of Sp ies (the title of Lock­ hart's 1967 book), has just demolished that myth. In his latest Lockhart's new material work, we learn that this supposedly daring, resourcefullead­ In 1925, according to the previous myth, Sidney Reilly er of anti-Bolshevik forces in the 1920s not only worked for was lured into a trap, conceived by Soviet Russia's first Soviet spy agencies, but from 1925 into the I 940s , personally intelligence chief, Feliks Dzerzhinsky. He went back to Rus­ set the stage for all the later infamous Soviet spies inside sia ostensibly to assess the strength of an alleged powerful British SIS: Guy Burgess, Donald Maclean, Kim Philby, internalopposition group, with which SIS worked: the Mon­ Anthony Blunt, et al . archist Organization of Central Russia, known under its cov­ These characters were gradually exposed, from Burgess er name in that hey-day of the New Economic Policy, as the and Maclean's 1951 flight to Moscow up until most recent Trust. Caught, the story goes, the master spy was liquidated. years, as the "Third Man," "Fifth Man," and so forth, of the For decades afterward, rumors circulated about Reilly's Soviet network in SIS; Lockhart now proclaims, that the great fate . He might have survived, it was said. Some in MI-5 Reilly started the mess. He announces in his preface, that (British counterespionage) strongly suspected, that he had "new evidence that I have unearthed has forced me to recon­ gone over to the Soviets. But nothing definite surfaced in sider the whole question," of just whom Reilly was really public, before the present book. working for. Now, Robin Lockhart reports that Sidney Reilly's two But Lockhart's revelations are a cover-up, of the sort closest associates in SIS circles, Capt. George Hill and Rob­ known in the trade as "damage control." ert Bruce Lockhart (father of the author) , both had proof, ReiUy: The First Man appearsat a time of intense warfare which they apparently kept from the relevant authorities, that within British (and American) intelligence, when some of Reilly not only survived,but went on to work for the OGPU, the highest-level figures in British intelligence have been the Soviet intelligence organization. Maura Benckendorff, charged as Soviet agents-a process closely related to de­ who had been Lockhart, Sr. 's mistress in 1918, wrote to him bates, in Britain and elsewhere, on how to deal with the in a 1932 letter, that she had met Reilly in Russia. And Soviet regime today . Certain British and American intelli­ George Hill, posted as British SIS liaison to the NKVD gence specialists, after reexaminingthe Sidney Reilly story, (successor of the OGPU) in Moscow during World War II , have concluded what U.S. Consul General DeWitt C. Poole ran into his former agent Sergei Nekrasov, now an NKVD and American Secret Service chief, Xenophon Dimitrievich officer, who told him that Reilly was alive, working for the Kalamatiano, charged in 1918: that Reilly was working for NKVD. the Bolsheviks all along, i.e., that he was not just "turned" This 1940s assignment for Hill was remarkable: Together

EIR June 5, 1987 International 41 with Reilly and Lockhart, Sr. , Hill had been a chief organizer half an hour with him .... of the "Lockhart Plot" in 1918 to overthrow the Bolsheviks! "I helped the Bolshevik Military Headquarters to organ­ ''To the astonishment of everyone, including Hill himself," ize an intelligence section. . . . Secondly, I organized a Bol­ Robin Lockhart reports , "from the short list of names put shevik counterespionage section to spy on the German secret forward by the British, the NKVD expressed a firm prefer­ service and missions in Petrograd and Moscow. . . . ence for Hill as chief of the SOE mission. " "Savinkov's organization [the Socialist Revolutionary As for Lockhart, Sr. , he became deputy director of the terrorists] at the time of which J am writing had its own secret Foreign Office and director of the Political Warfare Execu­ service.... I was constantly in touch with this section .... tive during World War II . All the while, Lockhart did not "I was seeing Reilly daily, and he kept me informed of drop his old ties to Russia, in particular his friendship with what he was doing and of his plans for a coup d'etat against Maura Benckendorff. She had gone on to become the mis­ the Bolsheviks ....I was kept informed of all this ...if tressof Bolshevik culture leader Maxim Gorky , and then of anything happened to Reilly it would be possible for me to pro-Soviet writer H.G. Wells. Although based in Britain carry on the work. . . . Reilly had no difficulty in traveling from 1927 until shortly before her death in 1974, Bencken­ between Moscow and Petrograd , as he had obtained a posi­ dorff traveled freely in and out of Russia. ''Through Wells tion with the Cheka and had a Cheka pass." and my father, Maura met most of the people who 'mattered' Thus, Reilly, allegedly plotting to overthrow the Bolshe­ and as a result was able to maintain her fingeron the pulse of viks, received a top job in the Bolshevik intelligence service, the political and diplomatic worlds. " This was not out of idle the Cheka, while his co-conspirator, Hill, organized what curiosity: "She was, perhaps, the Soviet Union's most effec­ would become the counterintelligence branch of the Cheka, tive agent-of-influence ever to appear on London's political the KRO, and Red Army Intelligence, the GRU ! The KRO , and intellectual stage." less than three years later, would create the infamous Trust! Lockhart, meanwhile, poured millions of rubles into the plot. The truth about the 'Lockhart Plot' The plot began in July with the assassination of the Ger­ Lockhart now admits, nay, even emphasizes, that Reilly man ambassador, Count Mirbach. This hit was a signal for worked for theOGPU, an idea he ''vehemently pooh-poohed," an uprising, led by Boris Savinkov, the British-funded So­ when MI-5 presented it to him in 1967. Why does Lockhart cialist Revolutionary , with whom Hill was "constantly in now , just as vehemently, deny that Reilly worked for the touch ." It was also meant to provoke a German declaration Bolsheviks back in 1918? of war. Mirbach's assassin, Cheka officerYakov Blyumkin, In the hot, humid Moscow summer of 1918, Reilly and not only headed the counterespionage unit founded by Hill, his closest SIS associates, Robert Bruce Lockhart and Capt. but was living next door to Lockhart in Hill and Lockhart's George Hill, mounted a plot to overthrow the Bolshevik hotel! Savinkov's forces rose', to be put down with ease. government. As World War I raged on the Westernfront, the Hill's friend Jakob Peters ranthe Cheka investigation . Peters , Eastern frontwas silent-by the March 1918 German-Soviet who spent the previous decade in England, and whose wife Treatyof Brest-Litovsk, Russia had left the war. The "Lock­ and child still lived there , found "no evidence of foreign hart Plot," allegedly, would overthrow the Bolsheviks, and involvement." bring Russia back into the war. Reilly and company went ahead with the next phase-to The Bolshevik leadership was badly split over Brest­ seize the Bolshevik leaders at an executive meeting, and Litovsk. The "holy war" faction, led by Dzerzhinsky and install a new government. The PetrogradCheka head, Moisei soon-to-be Red Army Commander Leon Trotsky , argued for Uritsky, had told the British that they were under his partic­ war against Germany at all costs. Lenin, fearing a continued ular surveillance. On Aug. 30, at 11:30 a.m., a Socialist war would end the Revolution, threatened to quit the party , Revolutionary assassinated Uritsky, and less than 12 hours unless the separate peace were signed. later, another S-R, Dora Kaplan, shot Lenin as he came out Lockhart had received instructions from London, to "ex­ of a meeting. Kaplan's gun had been provided by Savinkov ploit the differences"between Lenin and the "holy warriors." (Savinkov, Memoirs of a Terrorist); Reilly, in the following Hill described his work and the Lockhartplot 's setting, in his days, hid in the flat of Vera Petrovna, a close associate of Go Spy the Land: ". . . I was instructedto keep in touch with Kaplan. them [the Bolsheviks] , bearing in mind that they might come When the smoke cleared, the Bolsheviks, far from being in on the Allied side. I therefore took an early opportunity of overthrown, were in fact vastly strengthened, especially calling on Mr. Trotsky at the War Office. Trotsky knew all Trotsky and Dzerzhinsky. On Sept. 2, as Lenin lay in critical about the work I had been doing and received me well .... condition, Trotsky was named chairman of the newly created "After our first talk he appointed me 'inspector of avia­ Revolutionary War Council, while Dzerzhinsky's Cheka tion' and I was given extensive powers in that depart­ gained vast new powers with the declaration of the Red Terror ment. . . . I was to give Trotsky advice on the formation of in responseto the attacks on Uritsky and Lenin. The internal a new air force. Two or three times a week I would spend opposition, both monarchist and leftist, which had posed a

42 International EIR June 5, 1987 substantial threatto the shaky Bolshevik regime, was smashed. EIR's founder, Lyndon LaRouche, in Moscow's weekly New While the dread Cheka could not manage to find Hill and Times .) Reilly, who were meeting daily in a public restaurant to plan The second "red dye" of British intelligence is the one­ their "escape," they did manage to findand crush the Amer­ worldist fanaticism of many of its chief personnel. The first ican intelligence network led by Xenophon Kalamatiano, British SIS chief, Mansfield Cumming, who deployed Hill who was sentenced to death. and Reilly, was such a one-worldist. He was a close supporter The failure of the "Lockhart Plot" was ascribed by Reilly of Kurt Hahn, the founder of the Gordonstoun School, asso­ and co. to a French communistjo urnalistwho infiltrated their ciated with Lord Mountbatten, and of the United World Col­ group, and gave the plot away. In his Secret Agent, Lockhart leges-founded to educate a one-worldist elite-which noted the upshot: "I found that Poole, the American Consul Mountbatten also championed, and which are funded by So­ General, took a more serious view of the conspiracy. He was viet agent Armand Hammer. inclined to regard Reilly as an agent provocateur, who had The following expresses Reilly's own outlook, in a letter staged this plot for the benefitof the Bolsheviks . . . I laughed he wrote to Robert Bruce Lockhart before his 1925 return to at Poole's fears ....Ridiculous as this story was, I found Russia, on the subject of "Bolshevism": nevertheless that through Poole it had gained some credence "I believe that . . . it is bound by a process of evolution in England. When later I reached London, I had to go to bail to conquer the world, as Christianity and the ideas of the with the Foreign Office for Reilly's bona fides. I did so French Revolution have done befote' it . . . and that noth­ without the slightest hesitation." ing-least of all violent reactionary forces-can stem its In 1922, V.S. Kiakovsky, head of the Anglo-Saxon desk ever-rising tide . . . the much decried and so little understood

of the KRO, the Cheka counterintelligence unit established • Soviets' which are the outward expression of Bolshevism as by Hill, traveled to the Baltic states. Claiming to speak for applied to practical government, are the nearest approach I an underground group inside Russia, he met British SIS per­ know of, to a real democracy based upon true social justice sonnel in the Baltic states to coordinatejoint work. Virtually and that they may be destined to lead the world to the highest to a man, the chief personnel of this new opposition group­ ideal of statesmanship-Internationalism." the Trust-were those with whom Reilly, Lockhart, and Hill From Capt. George Hill, in his 1936 Dreaded Hour, had worked in the summer of 1918. speaking of the League of Nations: "In 1928 the League, in its machinery and functions, was IlS imperfect as the first Sodomy and one-worldism aeroplane in comparison with the modem airliner ....But Why would a broad faction in British SIS work, then and its fundamental idea of substituting for a system of armed now , on behalf of Soviet interests? How about the bankers nationalism a system of disarmed internationalism, and the and industrialists who supported the Bolshevik Revolution, renunciation of war by means of pooled security, will Reilly's friends at his offices at 120 Broadway in New York live .... In time some such League will have sufficient City, in the early 1920s? Were they all double agents, or strength and power to impartially police the world; and it will secret converts to communism? be accorded the same respect and authority that the police What these WesternTrust partnersshare with theSo viets force of England enjoys today." is a passionate hatred for the most basic values of Western From Arnold Toynbee, chief theoretician for the Round Judeo-Christian civilization. Two, most characteristic, forms Tables' Royal Institute for International Affairs from the of this hatred recur repeatedly in the Westernhalf of the Trust: 1920s into the 1960s, in his 1971 "dialogue" with Kei Wak­ homosexuality as a cult-what the Cambridge Apostles called aizumi of Kyoto Sangyo University: "the Higher Sodomy ," and the fanatical commitment, by "If I am right in forecasting that a world dictatorship is Western oligarchs and their servants, to rid the world of likely to be the way in which we shall avoid liquidating republics, to establish a one-world order. ourselves in an atomic war, and if I live to see this develop­ In a footnote, Robin Lockhart releases a crucial new fact ment, I should on the whole be optimistic, because I should in the Reilly case: The James Bond prototype, the great lover not expect the dictatorship to be permanent. . . . It is most Sidney Reilly, was a bisexual. Reilly set up, fromthe homo­ unlikely, I fear, that it will be established by the will, or even sexual cult at Trinity College, Cambridge known as "The with the acquiescence, of the majo11ity of mankind. It seems Apostles," the spy nest which produced Anthony Blunt, Ma­ to me likely to be imposed on the majority by a ruthless, clean, Burgess, and many others. The Apostles argued that efficient, and fanatical minority, inspired by some ideology "since women were mentally and physically inferior to men, or religion. I guess that mankind will acquiesce in a harsh homosexual love was of a higher order." According to Lock­ Leninian kind of dictatorship as a lesser evil than self-exter­ hart, Reilly's case officer on this gang of homosexual Soviet mination or than a continuing anarchy which could end only agents , "the Homintern," was one Semyon Nikolayevich in self-extermination. If the reluctant majority does accept Rostovsky, better known in intelligence circles as ErnstHen­ this dictatorship on this ground, I think they will be making ry. (Henry, still active, in 1986 authored a vicious attack on the right choice. "

EIR June 5, 1987 International 43 Interview: Colonel Michael Hickey

Dealing with the threat of Soviet irregular warfare

Col. Michael Hickey is author of The Sp etsnaz Threat: Can forces on the continent, because one of their objects, of Britain be Defended, published as an Occasional Paper by course, is to take out NATO's nuclear capability, take out the Institute for European Defence and Strategic Studies. He nuclear units, if you can in their barracks, and neutralize their was interviewed in Winchester (U.K.) by Michael Liebig, munition depots in locations which I am quite sure are well EIR executive director for Western Europe , on April 11. known to the opposition throughout the allied zones in West The firstpart of the interview, published last week, dealt Germany. I am pretty sure these are fairly vulnerable targets. with Colonel Hickey's personal experience as a light aircraft I think also that air assault would be used if there was to be a and helicopter pilot in counter-guerrilla operations in Ma­ conventional general assault, it would be used against head­ laya, South Arabia, and East Africa. quarters, bases, communications, C(3) in other words, radar, and it would also be used in an attempt to eliminate the per­ EIR: To tum to the advanced sector side, so to speak, of sonalities of the NATO command structure . But that has got irregular warfare , what in your view is the essence of opera­ to be divorced from the idea of truly deep penetration into the tional doctrine of Soviet Special Forces like spetsnaz and/or homeland of the Western European NATO allies. air-assault forces? Hickey: First of all, I do not regard spetsnaz as air-assault. EIR: How would you characterize the specifically spetsnaz I think you have to isolate spetsnaz operations from the air doctrine of the Soviet command? assault and amphibious assault. They use a different sort of Hickey: Basically in that it can, if necessary , operate inde­ troop anyway. I regard the spetsnaz as being the absolute pendently of air assault and conventional land assault. It cutting edge, and the air-assault (in Soviet terms, desant) as could be used with them, or it could be used without, because such is the man with a club following in behind. I believe the there is already, let's face it, an infrastructure of spetsnaz United Kingdom is particularly vulnerable to spetsnaz oper­ agents in existence in the West in all of the NATO European ations, much less so to desant, basically because we are an countries. There are people of varying degrees of dedication island, and it is quite difficult to cross the water, of course, to the goals of the Kremlin, who can be relied upon to varying once NATO is alerted, and it is quite difficultto insert troops degrees to do their stuffif there is a rising period of tension in any quantity by air, given the fact that our air defense in possibly leading to war . I believe that the Soviet planners the United Kingdom is quite sound (it's not the best, but will have assessed, for instance, the strategic value of the United soon be much better) . Kingdom, and have identified its importance as the hinge in the door, or "the European pillar in the trans-Atlantic bridge," EIR: You would say that while spetsnaz is a genuine form through which trans-Atlantic NATO reinforcements would of irregular warfare , air-assault forces are a more conven­ pass on their way to northwest Europe. tional form of warfare? Hickey: Yes, I see air assault being used against NATO rear EIR: So you would say spetsnaz has a high priority in the

44 International EIR June 5, 1987 Soviet warplan ? the Marines, the air-mobile troops. But when you started Hickey: Oh, yes. You have to put yourself into the position sending the third-, fourth-, fifth-rate divisions in, with the of the people sitting in Moscow, or wherever, making their conscripts-well, you have to be very careful the way you warpla ns, and one of their options must surely be to achieve use them against a really effective guerrilla army, which is strategic dominance over Western Europe, with the minimal what the Viet Cong had become. We had to learn the hard amount of conventional, and certainly without use of any way in Malaya that counterinsurgency warfare is as much a nuclear forces. I believe at present the United Kingdom is state of mind as the acquisition of new military skills. particularly vulnerable to attack by spetsnaz, because alone, of all the Western Europe allies, we long ago gave up con­ EIR: In Britain, you have the experience of the SAS, the scription. SOE during World War II, and the irregular warfare cam­ paigns of the post-World WarII period. The French have the EIR: Do you think that was a mistake? Resistance, Vietnam, and Algeria. The Americans had Viet­ Hickey: I don't think it was a mistake. I think it was inevi­ nam. So there is a treasury of experience with irregularwar­ table, given the mood of the nation at the time, and of the fare in the West. I try to compare that with the experience the government of the day, a Conservative one, MacMillan's Russians have. Do you think the W e�t has learned the right government. lessons? In comparison, the Russians seem to have drawn the right conclusions. EIR: These were the historical circumstances then. But in Hickey: Well, the Russians do not have, for instance, the terms of the objective military requirements, must we not "Africa touch," they do not have the "Arab touch," they don't have the draft? have it at all. They've tried in Africa, the Russians-and Hickey: Yes, well, we kept conscription on for a long time they've tried without success in the Middle East. The French in this country after the war, because we needed a lot of had the "Arab touch" in the old days, but lost it. The British, troopsto supervise the withdrawal fromEmpire , and because oddly enough, have always had a very good touch in South­ moving troops still had to be done by slow troop-ship, and east Asia and with the Arabs, and in Africa. It is a question when the Korean war was on, and we were fighting in Ma­ of being like a musical comedian: You have to get the pitch laya, there were neverless than about 3,000 soldiers at sea, of the hall right. The Russians don't. The French were quite going to and fro at any one time. Nowadays, we couldn't incredible in Algeria; after a marvelous start, they lost the afford that at all, and we don't have to, because we can move hearts and minds of the people and they brutalized them­ troops quite quickly by air, even down to the Falklands if selves. The French military establishment were totally brutal. necessary. The last national service man left the service in The British on Cyprus, we brutalized ourselves from time to 1963. At the end of the 1960s , we contracted even more , and time there. I think history will show that we behaved very we then met our military commitments just by the use of badly against the Enosis movement on Cyprus by using very volunteer or regular forces. At that stage we could still recall crude methods to dominate the population, instead of win­ ex-national servicemen in their 20s and 30s, and they were ning the heartsand minds, as we had done very successfully still fitin the army , but the youngest ex-national serviceman in Malaya. And the Soviets have entirely failed to win any­ now, in 1987, is 45 years old, and he is not very fit! And so one's minds and hearts in Afghanistan. we have no true in-depth reserve. This is where we created a vacuum. No one in those days ever envisaged that the home­ EIR: I entirely agree, but nevertheless, they have obviously land could be threatened in the way that it is now. succeeded quite effectively in buildiQg up the irregularwar­ I think-I hope-people have drawn the lesson from fare spetsnaz capability. Prague 1968, which was the first major spetsnaz operation, Hickey: Oh, they're doing quite well now. If anything, and one of their big developmental exercises, when they they're going to win-through penetration. From what I've seized Prague airport-a spetsnaz coup de main . To see how read, their spetsnaz are about their only troops who are meet­ far they have gone in 11 years , see what happened in Kabul ing with any success, because they are using chaps who are in 1979, when the spetsnaz went in and took out the govern­ fairly brown, who are circumcised, who look and talk and ment, I mean the government, its friends and girlfriends, and speak and feel like Muslims, and cannot be distinguished, also prevented the Afghan army from mobilizing. This was and this is the essence of the spetsnaz-type operation. It all spetsnaz, actually, and this was also the only really suc­ would be very difficult to differentiate between the local cessful part of the whole Soviet military operation, because people and the spetsnaz. I believe that if the spetsnaz came when they moved their second-, third-, and fourth-grade to this village, they will not be wearing red stars and spetsnaz troops in, they got themselves bogged down, in a sense like on their helmets, bearing AK-47s. the American troops in Vietnam. The first-class American troops performed brilliantly in Vietnam, the Green Berets, EIR: So you thinkthe psychological-political component is

EIR June 5, 1987 International 45 077laha Steaks aiDt.7�. at least as important as the military component? Since 1917 Hickey: Yes, if you can get the local population to believe INTRODUCTORY that the intruder is really a liberator, and is really identifying OFFER! with the people's grudges against the government, then I think they will win, and I think this is why the spetsnaz forces are succeeding in Afghanistan now, where the regular forces have failed. They move like fishamongst the tribes.

EIR: What in your mind has made the Russians build up this degree of excellence of their spetsnaz apparatus over the last decades? Hickey: I think they see the weakness of the West's defen­ Tr� ses. They appreciate, as any sensible person in the West sees, that nuclear deterrence, like it or not, works. and has now a little Make those special occasions truly ten ..er ne.s memorablel Just try a little tender­ reached the stage where the use of nuclear weapons is ritual­ ness. CandlelighLsoft music ...an d ...magnif icent, aged Filet ized-I cannot see any circumstances in which anybody would Mignons. Perfect. Experts select and prepare each filetl Their chance the use of nuclear weapons. I can , however, see a artistry in cutting and aging IS your assurance of utmost in enjoy­ ment. Steaks arrive frozen. Co mplete satisfaction guaranteed. much greater risk of warfare breaking out at the bottom of the ladder. Now, it is at the bottom of the ladder of deterrence 1 " Six 6 oz. Filet Mignons, 1 14 thick that Britain's defenses are at their very weakest. At the top (reg. $52.95) ...... $29.95 {pluS 54 50 shlppmg handling) of the ladder we are very strong. We have the umbrella of the American nuclear deterrent, we have our own independent YOU SAVE $23 00 OFFER VALID ONLY IN 48 STATES UNTIL MAY 31, 1987. nuclear deterrent, which is shortly to be updated with Trident. OR SAVE EVEN MORE ... Very strong indeed at the top of the ladder-lovely, shining, Twelve 6 oz. Filet Mignons at very expensive rungs! It's when you go down to the bottom Extra special price of ...... $58.95 (plus 54 50 shlpprng handling) of the ladder of deterrence that you will discover that succes­ LIMIT OF 2 PACKAGES PER ORDER sive British governmentshave allowed the rungs of the ladder to rot away, or have willfully chopped them away. Phone or mall order Use major credit card and Thus it was in the 1960s that we virtually destroyed our Call Free 1-800-228-9055 territorial army . We destroyed ourcivil defense. In Nebraska phone 0-402-391 -3660 collect. Order today or write for FREE catalog and 10% discount coupon. EIR: To come back to the question: Why are the Russians giving their Special Forces such priority? 077laha SteaksaiD t.7� . Dept. 1786 / PO Box 3300 / Omaha. NE 68103 Hickey: So that you can neutralize the nerve centers of NATO, and in particular, I believe, the United Kingdom in a period of rising tension which could possibly escalate into war. But rather than have an escalation into war, why not attack the entire nervous system of the United Kingdom, its SILVER military, political, and economic and infrastructural systems, so that it is incapable of functioning, either as a mobilization SHORT SQUEEZE base for its own forces, or to dispatch 155,000 troops to the continent, recognized as being part of our war plan. The • WHO? • WHAT? • WHY? • Not what you think! Daily limits soon. Exchange preparation of air bases and seaports for the reception and cannot stop this one because it is different, onward transmission of trans-Atlantic reinforcement, the ac­ Send $5 to SIBBET for information. He is the tivation of the early-warning system, the transition of the one advisor who predicted the other two whole population and economy of Great Britain from a peace squeezes. Make $50 per oz.! to a war-footing, and for the use of a number of military air­ SIBBET PUBLICATIONS bases in eastern England as stand-by bases in case the forward 1091 E. WOODBURY RD., PASADENA, CA 91 104 bases in Germany and northernEurope are knocked out. They

Name ___ _ might not be attacked, but if they were attacked, I don't think the airfields in northern Germany would survive more than Address ______one day. We certainly would not be operating NATO air State ____ Zip __ _ forces from German soil much after 24 hours of war. I think

46 International EIR June 5, 1987 they would have to come back to the bases in East Anglia, go. It's quite an extraordinary self-criticism which goes on. where they would be under cover of the United Kingdom air­ And there is a case very recently of which I know, in­ defenseenvironment , and they could be protectedthere against volving the missile troops, the strategic rocket troops, which Backfire and its lay-down or stand-off weapons. are supposedly the elite of the elite. They were created some 30 years ago, they took all the best of the air force, artillery, EIR: Do the Russians base their irregular warfare doctrine and missile troops" and gave them artificialtradit ions, august their own home-grown experiences? To what extent have traditions, just like it is becoming traditional at some public they learnedfrom the French, the British, and the Americans? schools for us to walk around with our left hand in our pock­ Hickey: They have a fairly good home-grown tradition, from ets ! It's quite extraordinary. They gave them bogus battle the days of the revolutionary war. There are things the Rus­ honors, which had nothing whatsoever to do with rockets , sians have always been fairly good at . First of all, fighting going back to the artillery of the 1812 campaign. You fire a for Mother Russia on Russian soil. The further they go away missile, and its got letters on it "Borodine" -the British army from home, the worse they fight. The closer they are to does this all the time, and I often wonder, what if the Russians guarding Mother Russia, which is deeply inside them-you suddenly got a missile dud thunking right down next to their scratch any Russian, and you will finda God-fearing patriot headquarters, and they see "Xth Battery ...Royal Artillery inside-they fight furiously. This is basically what Stalin ...Gibraltar 1783"! The Russians do it as well as we do, capitalized on: He knew they wouldn't fightfor him after the and they created these elite forces. But let's face it-if you're firstthree months, and so it became the Great Patriotic War, on station for two years at a time, out in the sticks on the dear old Mother Russia. They have been good at fightingthe other side of the Urals, in a hole in the ground, do you really invader on their own soil, whether it was Napoleon or the get up every morning and say "Ahh. I am an elite troop, and Kaiser, and certainly against Hitler. Brilliant ad hoc war­ this is another great day in my life!" sitting downstairs look­ fare-they love it, they take to it, and they play it ruthlessly, ing at the radar screen. Well, you can't, you just go mad. harrying the enemy's rear, the destruction of his lines of And they are having terrible problems with absenteeism, . communication. A great deal of the German effort in World desertion, drugs, drink, the lot, and it's worrying them. And War II had to be dedicated to keeping the lines of communi­ it's coming out, of course, in these remarkably candid Soviet cation clear, and making sure that civilian populations were military publications. either removed or eliminated, evacuated or protected from Soviet partisans. So they have got a tremendous tradition of EIR: What do you think is known about the spetsnaz infra­ what you might well call deep-penetration and irregular war­ structure in Britain, and how would you characterize it? fare . They have always been far better at it than they have Hickey: Very difficult to quantify it. I would guess, if it ever been in open, conventional warfare . followed the same pattern as the Danes, the Dutch; the Nor­ wegians, and the Germans, that the crucial feature is what EIR: Have you seen in the postwar period an evolution of we have described in our literature: themol es, and volts, the the spetsnaz concept? Was it always there, upholding the creepers and sleepers. They are all slightly different, the continuity from World War II? sleepers being people who, for varying reasons, either ideal­ Hickey: Yes, they've intensified it, refined it. Unless you istic or embarrassment involved with blackmail, got them­ refineyour military doctrines, you are doomed. The Russians selves willingly or inadvertently recruited many years ago. have always been quite good at refining military doctrine I've heard that the Danes reckon they have about 5,000 peo­ afterdisasters , and God knows they 've had enough disasters. ple in their society, in their population, which is not much They do learn, and they are helped in this by their extraordi­ larger than Greater London, who would be likely to perform narily open military press. Everybody thinks, in the West, in some way as spetsnaz agents if the actual spetsnaz were that no one is Russia can see what is going on. Of course, I inserted. These are not chaps with snow on their boots or haven't been to the Soviet Union, but my friends, particularly anything like that. These are not illegals, not spies as such. the ones who speak Russian, have been there. And they are They are people with a long-standing affinity for Marxism­ amazed to be able to buy, over-the-counter, these huge num­ Leninism, the cause of the Soviet Union as they see it. bers of Soviet military magazines, which are semi-officially, or totally officially produced by the Soviet military publish­ EIR: Is that all run through the GRU? ing house in Moscow. They are there, and they are bought Hickey: Yes, the KGB have a spetsnaz as well, but I am by serving soldiers or interested civilians, and they are re­ thinking of the GRU, which is the one I have been studying. markably candid. They talk about exercises which have taken place in the Soviet Union, and how colonel X or colonel Y, EIR: Would you say this is closely coordinated between the who are named, made a thoroughly botched job of a military KpB and the GRU? exercise, and why their sergeant-major thinks they should Hickey: Not if they can help it, because they hate each

EIR June 5, 1987 International 47 other's guts! This is one weapon that operates to our favor. EIR: Are you aware of any patterns, or suspicious patterns The KGB is really the political wing, political assassination of an increase of spetsnaz operatives at specific times over and elimination at the highest levels, the economic and polit­ the last 15 years, whether at certain times there were more, ical structure. The GRU are targeted basically against the at certain times less? military structure and infrastructure. Obviously they do need Hickey: No, not myself, because I do not have access. I am to be coordinated at the highest level in order to avoid dupli­ not a member of the intelligence community, and I do not see cation and messy mix-ups. intelligence reports . But I would be very surprised if routine Special Branch reports nationwide did not reflect the inci­ EIR: Would they themselves be operators , or would they be dence of suspicious events. Cars parked in obscure parts of supporters? Scotland, with maps and phOtographs, with no explanation ffickey: They would be supporters , they would provide sa­ for why they should be there. These things have happened, fehouses, letter drops , dead-letter boxes, equipment. They and they are reported through the usual channels. I think it could provide a car at a given place at a given time, with a goes on all the time, but it is very difficultin peace time to be fulltank of petrol, a set of maps. They could provide medical alert, unless you know what you are actually looking for. support, certain stores, guide these people to previously hid­ You can't have people looking around on every street like den stocks of radio equipment, explosives, could provide this. One reason for the campaign we've been fightingfor the them with all sorts of support-and they would. On the other last five years is to create a corps of observers, not fighting hand, they might just leave a door open, a safe unlocked, a soldiers; but people in every cc)mmunity, every village, who light switched on or off, a window leftopen , a file uncovered in a time of crisis can be mobilized and asked to report in an office. They might take a photograph. The scope and anything unusual, not snooping-people won't like it, be­ scale of support is almost unlimited. cause that's against the British way of life. But if you see a strange car in your village that you've not seen before , strange EIR: To me the strict distinction between war in an imme­ people in the pub, don't apptoach, don't arouse their suspi­ diate prewarsituation and "peacetime" operations in irregular cions, but report this to poiice, and the picture will then warfarelooks almost theological. Are the spetsnaz here right develop very quickly that you are being penetrated. And then now, or will they come when tensions reach a certain level? of course, once any invaders of this sort realize that the How do you see this? population is alert, they will be obliged to move very slowly ffickey: The spetsnaz are here all the time. The sleepers and cautiously. At the moment, if I wish to come into this have been planted, and of course, on top of them there are country, disguised as a tourist with a pack on my back and a the illegals, there are the residents of the GRU and the KGB stick in my hand, and a map showing the tourist places where in embassies and consulates worldwide. The spetsnaz de­ I can hitch-hike my way around, nobody would question me tachments, the actual hard-core troops, who, when they are at all, especially if I was talking decently good English. And in Russia, wear the striped pullovers and do their two years' these spetsnaz are people who have studied the English lan­ conscript service, and the regular cadre who trained them, guage well. We are told thatthey come herefrequently enough they can be introduced in peacetime, and they almost certain­ to perfect their English accents, so they don't draw attention ly do come into these countries in peacetime, because it's in Scotland by speaking the way I do, with an Oxford accent, very easy to get into them, as a seaman, a TIR lorry driver, a or similarly go to Wales and speak like a Scotsman. flight deck or cabin crew of an Aeroflot airliner, a tourist, a member of sports or cultural delegations-very easy, you EIR: Their training appears 'to be superb. cancome in and step aside for a few days, and go and look ffickey: Yes, they have real quality training, they can be around, or you can be driven around to certain sites and have selected, you see. They can be selected at the age of 14-15, thempointed out to you, and when you ask, you will be told, for outstanding ability in school in linguistics, also in sports "You are now passing the Atomic Energy research establish­ and athletics. They will receive priority training in the DO­ ment for the entire world, look at the lack of proper fences, SAA V organization, and by the time they are 18, they will look how easy it is to walk in." have all the basic military skills anyway. They can shoot You can be unofficiallyand illegally resident in this coun­ straight with simple weapons, they can swim, many will be try for weeks, months, often for years before people catch up able to parachute, and therefore a lot of basic trainingcan be with you, because we don't have identity cards with finger­ left out. They only have two years, but they do work on prints or photographs in this country. These are regarded as Saturdays and Sundays, they do not have holidays, and they a gross infringement of civil liberties, and there is a very worktheir butts off. During that two years of national service strong left-wing lobby which has taken over the old, honor­ training, if they pass the firstsix months, they will be sent on able National Council for Civil Liberties, and who will fight a training visit to their target country. And if they have been thisconcept to the last ditch. coached in English at school, if they have an ability in En-

48 International EIR June 5, 1987 glish, they will come to England, quite legally. They will troops would be needed to reduce this country to chaos. come as part of an athletics team. If they come as part of a We've always said that 1,000 to 1,500 spetsnaz troops, in dynamo sporting team, they are part of the KGB/spetsnaz. 1f squads of 4 or 5, would produce the necessary chaos, if they come as part of the armed forces sporting group, Spar­ backed by an effective agent network. takus, etc., those teams contain a high number of GRUI spetsnaz trainees. EIR: They could take care of several targets simultaneously. Hickey: Oh, they could take care of hundreds of targets EIR: Now you say, once the problem is recognized, it can simultaneously. If I wanted to cut Southampton off from be handled. Do you think that within the British army, let's London, and Southampton is a very important port, I could say at the staff level, and in officer training, the spetsnaz probably do so quite easily. This railway that runs past the problem been effectively recognized? field, that you were traveling on earlier this morning, carries Hickey: I think so, yes. I was very interested reading that 200 trains every 24 hours, it is a very vulnerable line, and interview with General Berkhof (EIR , Vol. 14, No. 17, April because it is electric on the third-rail system, it is even more 24, 1987). He says that in the military academies in the West vulnerable, because every 5-8 kilometers there is a trans­ irregular warfare is not taught. That is not entirely correct. former station which takes the power from the electrical grid, At Sandhurst and in our staff colleges, even in the late 194Os, reduces it from 30,000 to 750 volts, turns it from alternating and certainlythroughout the the 1950s, '60s and '70s, it was to direct current, and feeds it into the electric conductor line. taught very thoroughly. Now this is something we've always You reallyonly have to knock one of those down, and you've beenrather good at. Anyway, we've got a longer experience neutralized ten miles of railway line, and somebody has to in it than most. The word spetsnaz was almost unknown in come and repair it. Now if the first man on the scene is shot this country until 1983, because it was only in 1983 that the dead with one shot from a silenced gun, no other railway articles by Suvorov began to appear in the InternationalDe­ worker in his right mind is going to come near that place fe nse Review. Until then, the intelligence world had sat very unless there is a battalion of infantry to protect him. Now, tightly on this. We had, of course, known that the Soviets there are no spare battalions of infantry . So you will have have commando-type forces, like Marines, good airborne neutralized that length of line with a few ounces of explo­ forces. sives. You don't even need explosives, just a strong incen­ diary charge to knock it out. You might electrocute yourself EIR: What triggered the change with respect to spetsnaz? if you do that, though, very dangerous. Hickey: Oh, I think "Defense Begins at Home." We started But there is nothing to protect these targets. We can in 1982 onwards to talk openly about it, to the embarrassment protect our nuclear air fields, our nuclear power stations, I think of certain parts of the government, who felt, who centers of government, our naval ports, but on mobilization, admitted in the 1982 Defence White Paper that our whole if we were driven as far as that, we send 155 ,000 troops defenses were being reorganized and reexamined in light of across to Germany, which leaves 100,000 uniformedperson­ the threat posed by "small groups of Soviet special force nel, which is 37,000 less than the total of police in England, personnel." They didn't mention the word spetsnaz. And Scotland, and Wales-it's absurd. then in 1983 they announced that a home service force, in addition to the tertitorial army's and defense battalions, was EIR: Another critical question. The Soviets obviously try to being formed out of older volunteers with prior military ex­ exploit the differentiation or the non-communication be­ perience. And in 1984 they said they were going to hold an tween the armed forces on the one side, and the police forces exercise in 1985, the exercise "Brave Defender," which was on the other side. How great is that a problem in Britain, and the biggest home defense exercise held in this country since what has been done to overcome it? 1941. Hickey: I think you must appreciate that in the United King­ dom the principle, as far as the maintenance of law and order EIR: I think this exercise is rather exceptional and unique in time of crisis is concerned, is the primacy of the police. for NATO. British soldiers are not employed to maintain law and order, Hickey: It shouldn't have to be unique, but it was largely a so that they can get on with defense. There is consequently public relations excercise, because none of the real key points very considerable liaison in peacetime between the police at in this country was involved at all, they created exercise all levels and the military. It takes the form of joint exercises places at nice neutral locations away from the centers of at staff colleges, joint conferences, anda considerable amount population. And they also introduced about 5,000 "spets­ of contact. Occasionally, when their roles overlap, you will naz," (SAS people, troops pulled in from Germany), and find full-scale exercises being held, say at Heathrow, where even some Americans were brought over from Germany to the police and the military are both out together. but in fact test our defenses. But of course we don't think that 5,000 the operational decisions on these occasions are in the hands

EIR June 5, 1987 International 49 of the police, because they are first of all seen as a law and logically and much less likely to shed innocent blood. order operation. But if the thing turns into a military opera­ tion, if some suspects lurking in the luggage department at EIR: But I would say you have a very different situation Heathrow tum out of be armed terrorists, the policeman says here from what we have on the continent, the tight coordi­ "over to you," straight offto the soldier at his side, and the nation between the police and military . switch is almost instantaneous, and from that moment the Hickey: Oh yes, but you see, we have to have a verycareful soldier is in charge. interface, because in Britain we have no gendarmerie. There is nothing like what the Dutch have, the Marechanssee; the EIR: An uncomplicated, unlegalistic process? French have the gendarmerie; the Italians have the Carabi­ Hickey: We are very careful about using troops in this coun­ nieri, who have tremendous powers. But in England, no. We try . Northern Ireland is a very different case, as you appre­ have always disliked the arming of the police, we distrusted ciate, because we sent in the troops in to replace a particular an armed police force, although in London a hell of a lot of category of Royal Ulster constabulary in the early '70s, the policeare armed now, sadly. We don't like that. The police "B Specials," who were disbanded, because it was thought themselves don't like it. It was policemen, not army, who they were far too politically involved in a gendarmerie role, went in to get black gunmen out of the black ghetto, and even and so they were disbanded and the army was put in to fill inthe Tottenhamriots last year, when a policeman was hacked the vacuum. When the British Army is confronted with a to death , the army was not involved in any way, although situation in which the control has been put over to them by many people thought they should have been. the civil authorities, the drills are very clearly laid out. If you fire , you do not fire to warn. You select the ringleader, and EIR: What is your proposal for concrete measures to deal you shoot to kill, which means that one shot will probably with the spetsnaz threat in Britain? defuse the entire situation. For instance, look at what hap­ Hickey: Given the very real restrictions under which all pened at Berkeley when the National Guards went in. Troops defense planning has to be made in the U.K., one has to go who were untrained to deal with a student riot, and it was for a solution which is acceptable financially, politically, and nothing more than a student riot. They went in, they lost socially. After studying a numberof options, I am convinced cohesion, they lost their leaders, and their leaders lost them. that a modified form of the Danish Home Guard system The soldiers were faced with what they thought was a hostile would work well. That is to say, a citizen volunteer force lot of young people. They started firing almost indiscrimi­ covering the entire country. Its role to be essentially deter­ nately in the air, and eventually indiscriminately at groups of rent, with emphasis on surveillance and guard duties rather students, who they thought were going to attack them. A than aggressive combat activity. Such a force need not be tragedy. A classic example, still taught here-when I was heavily armed, and its memb¢rs need not be trained beyond teaching on this subject, this was one of the examples I used the basic requirements of their duties. These volunteers will as a case history for what happens when the military go in, be recruited on a local basis so they will know their own and are given carte blanche, are badly led, and the troops are operational area intimately. They will be able to recognize badly trained, and not properly equipped. any unusual activity, or the arrival of unfamiliar people. The When I was in the Far East, in Malaya, we used to have knowledge that such a force is mobilized and active is in itself riots in Singapore-nothing to do with the communists, these a deterrentto any would-be infiltrators and saboteurs, whose were Islamic fundamentalists. They were very vicious. The besthope of success lies in their ability to "swim amongst the actual request for the army to take action was in writing, and people" in the best Maoist style. No Special Force operator it was handed over by the magistrate to the army commander is happy if he thinks he's under constant observation and this on the spot, who signed it and acknowledged it formally, slows him down significantly. Not only that; it means that whereupon the Riot Act was read, the big banners were his "friends" already in the community are less ready to hoisted in all languages "Disperse or we will open fire," and provide safehouses, information, supplies, and all other forms if they didn't disperse, a bugler came to the front and blew of assistance. "Disperse" -not that a foaming Malay mob knew the British A Home Guard of this type can be rapidly mobilized for bugle call for disperse, for God's sake, but they knew the the protection of targets for which there are clearly no re­ army meant business. The next thing that happens is that a sources elsewhere, such as the national infrastructure; the row of riflemen comes and ostentatiously loads their rifles. power distribution system, telephone exchanges, gas pipe­ But the chap who actually fires the round, if a round has to lines; the list is endless. At present these targets are wide be fired, is a designated marksman, unknown to any of the open to attack and can be knocked out with ease. It is a very riflemen, so that nobody would actually knew who had fired worrying problem and it needs to be addressed now. If whole the shot. But the designated marksman would be given ex­ areas are deprived of the electricity which the population has plicit orders-"range 100 yards, one round, man in black at come to take for granted, there will be a rapid collapse of the foot of the statue of Queen Victoria," and pow. It's called civilian morale, leading to outbreaks of unrest which would the principle of minimum force. Far more effective psycho- place an unbearable load on the police and security forces.

50 International EIR June 5, 1987 Make Norway part of the SDI!

Now is the time for Norway, with its unique geographical position and membership in NATO, to play a decisive role in the defense of the Free World.

Norway actively partaking in the Strategic Defense Initiative (SOl) would stabilize the strategic situation in Europe for a considerable time. Building the Norwegian part of the SOl also leads to unimagined economical spin-offs - in itself the best defense.

We, Norwegian patriots, invite you to actively lobby to make Norway part of the SOl.

Geir Arne Hanssen Arne Roen 0yvind Hogsnes T-E Thomassen System consultant, Hermod Christensen A/S Electronics enlineer Solheimsvlk, Norway network Oslo, Norway Tensberg, Norway Oslo, Norway Wilhelm Schreiider Eldar Harelde Einar Braastad FJell-Helsen, Ole Haugan Hareid, Norway Oslo, Norway TromSB, Norway A/S Kunstbetonl When in Trom_. FAberl, Norway Klaus Sivertsgird A. H. Strandene see the town from above - by the Cable Car! Oslo, Norway Engineer, Oslo, Norway

EIR June 5, 1987 International 51 was once called the "French connection" of the mafia and drug trade, for introducingdrugs from the Mediterraneaninto Europe. Coincidentally, 1982 is the year when the Spanish so­ cialist party, the PSOE, took power in Spain. The gangster Antonio Bardellino, wanted in Italy, was arrested in Barce­ Italy-Spain arrests lona in 1984. The activities of the now "repented" mobster Gaetano Badalamenti were centered in the Barcelona area, hit narco-terrorism when he was arrested. Bardellino was able to flee, thanks to the complicity of a judge who released him few months after the arrest. The by Leonardo Servadio issuance of a new warrant yielded no results since Bardellino quickly disappeared. This episodeunderlines a certain insti­ In a coordinated sweep between Italy and Spain, during the tutional supportfor such illegal activities. second half of April a dozen persons were arrested in the In Barcelona, much has been said and writtenin the press Italian cities of Ivrea, Turin, Rome, and the Spanish city of about the Pianelli-Traversa firm, an industry based in Turin Barcelona, accused of ties to the Red Brigades and the assas­ with plants in Barcelona. Some have alleged that the firm sination of Gen. Licio Giorgeri. Giorgeri was killed in Italy might have functioned to cover drug traffic and the transfer in March for his role in coordinating Italy's role in the Stra­ of money from it. According to the same sources, the firm tegic Defense Initiative. may also have been a conduit for funds from some groups in Barcelona is emerging as the operational center of the the Italian Socialist Party (PSI) to others in the PSOE. Italian Red Brigades . The most recent "strategic resolution" distributed by the Red Brigades in Italy, which called for The Moscow angle attacks on NATO and especially the SOl, was printed there . The narco-terrorist connection, otherwise well docu­ Moreover, some of those arrested, namely Clara Piacenti mented to be an asset of the Soviet intelligence services, has and the American Ellen Codd, kept in contact with the French become an urgent matter for investigation in Spain. Terror­ terroristgroup Direct Action in Barcelona. From some of the ism in Spain was until recently monopolized by ETA , which documents found on another arrested suspect, Laura Trevi­ operatednearly exclusively in the Basque region and in Ma­ sin, who shuttled between Italy and Barcelona, it appears that drid. It has spread to other cities, such as Barcelona and the activities of the Red Brigades, Direct Action, ETA , and Saragossa, where it has claimed several victims this year. In other terrorists are coordinated through Barcelona. addition, a new form of "mass terrorism" in the style of the Little is known about the operations being planned by the German Greenies is emerging: During the many-weeks-long suspects, but one thing stands out: All of them are connected trade union strikes in the city of Reinosa-organized by the to drug trade or drug consumption, and the press has started trade union Comisiones Obreras (CO), which has a Com­ to recognize something that EIR has been saying for over 10 munist leadership but many Franquist cadres-some groups years, that drugs and terrorismare one and the same problem, which were obviously militarily trained attacked the police that likely the primary source of money for the terrorists is with rudimentary weapons, like deadly slingshots with metal drugs. balls. Two persons have died and several were injured in the The persons arrested are described as the "new Red Bri­ resulting clashes. gades," but some of them do have a history: Giuliana Zuc­ In the Basque village of Portugalete, on April 25, some caro, arrested in Turin, and Riccardo D'Este, arrested in militants of the separatist partyHerri Batasuna, known as the Barcelona, were militants of "comontist" and "situationist" politicalfront for ETA , burned down the "Casa del pueblo," groups already in the early 1970s; D'Este seems to have the PSOE's cultural offices, with Molotov cocktails. The alreadybeen under investigation at the time of the Aldo Moro arson caused the death of one PSOE member and seriously kidnap-murder. In other words, more than a new phenome­ injured several others . The PSOE in the Basque region ac­ non, this is the continuation of the old Red Brigades, or at cused HerriBatasuna of being "Nazi" and asked that the party least a product of the same groups which were the breeding be outlawed. groundfor theRed Brigades of the 1970s. The "situationists" As in the case ofthe assassination of General Giorgeri in were known for theorizing on the marriage between terrorist Italy, which was aimed at undermining Italian partecipation activities and common criminality, and therefore the drug in the SOl, the Spanish terrorism has a strategic purpose. It trade. aims at pushing this country, which is currently negotiating Since 1982 at least, as a result of the blows struckagainst over whether several strategically important U.S. bases re­ the mafia by various judges operating in Sicily, Barcelona main on its territory, to close the American bases and pave has becomethe "new Marseille," the preferred portfor what the way for a split in the Atlantic Alliance.

52 International EIR June 5, 1987 The deep division in UMNO is something new, and dan­ gerous. In the full 30 years since independence, the party has led Malaysia in the most stable government among the ASEAN nations. Tengku Razaleigh, a prince of the Kelantan state royal family, worked closely with Mahathir for some ·20 years, and Musa Hitam was his fonner deputy . The defec­ tion of this faction from Mahathir's commitment to national development and growth, to espousiQg the views of the bank­ ruptworld banking structure, would have sold Malaysia down Malaysian leader the river had Mahathir not won. Hitam has been using the international press, which led beats challenge the charge in the Aquino-IMF coup against Marcos in the Philippines, to undermine Mahathir internationally. The In­ by MaryMcCourt ternational Herald Tribune reported April 4 that Musa Hitam had accused Mahathir's government of misuse of power and money. "Political reporters who cannot say so in the govern­ Although Malaysian Prime Minister Datuk Mahathir Moha­ ment-controlled press draw parallels to the rule of Ferdinand mad held on to the leadership of his country's ruling United E. Marcos in the Philippines and to President Suharto of National Malay Organization (UMNO) in strongly contested Indonesia," the Tribune wrote. Musa said in a recent inter­ partyelections in April, the party which has led the country view that Mahathir had cost Malaysia much-needed invest­ since independence from Britain in 1957 remains deeply . ment by his outspoken criticism of industrial powers for split. The April 24 election, which Mahathir won by the unfair treatment of the developing sector, and his criticism narrowest of margins-43 votes out of 1,500 cast at the of Zionism and "Zionist-dominated" Western news organi­ party's national convention-was the first in some 40 years zations. Mahathir, commited to a "look East" policy toward in which a party president, who has always then led the Japan, has also told Malaysia to "buy British last," his as­ country as prime minister, has been seriously challenged. sessment of the quality of British products. Prime Minister Mahathir defeated his challenger, Trade Musa himself could have commahded little from his tout­ and Industry Minister Tengku Razaleigh Hamzah, 761-718. ed "foreign investors." The recommendations of a Jan. 31 Mahathir's ally, Deputy Prime Minister Ghafar Baba, beat survey on Malaysia by the London Economist are the same former Deputy Prime Minister Datuk Musa Hitam, Mahath­ population-destroying policies forc�d on other developing­ ir's strongest critic, for the post of UMNO deputy president, sector nations: cut imports, especially food , privatize avia­ by a margin of only 40 votes. But Mahathir's supporters did tion, ports, the telephone system, railways, and other indus­ win enough of the key positions in the party leadership to tries, and cut the state payroll, which supports 25% of the enable him to fire the two opposition leaders and several other population. cabinet ministers a few days afterthe election. These policies could never go through unless Mahathir's With Mahathir's victory, a serious challenge mounted by leadership were broken. One key program is the New Eco­ the international malthusians and bankers who backed his nomic Policy, inaugurated to end the causes of the deadly opponents has been at least temporarily fought off. For now, 1969 riots, to bring Malays from owning some 4% of industry Malaysia will continue to pursue policies of economic and to a more equitable position. At th� time of independence, population growth . the Malaysian economy was 97% owned by huge British and Attention is already focused on the next party elections Dutch-based corporations, and overseas Chinese. During the in 1990, which is also the year in which the New Economic 1970s, the country bought out Dunlop rubber, the huge Sime Policy (NEP), adopted in 1970, must be renewed. Malaysia Darby company which owned mines and plantations, and now faces great problems due to the international financial Royal Dutch Shell, bringing these industries more under crisis, which has cut the nation's growth fromalmost 8% in national control. 1980 to less than 1 % last year. The prices of the commodities In the last year, Malaysia has led a fighting war against in which Malaysia is so rich-tin, palm oil, oil, and rubber­ drug consumption, by decreeing, and carrying out, the death have collapsed, and drug use in the population has soared as penalty for all traffickers, no matter how small, no matter the the international drug mafias, facing a glut in the U.S. mar­ color of their skin. ket, have pushed heroin consumption throughout Asia. The But probably most frightening to the nervous financiers weakening economy raises the spectre of renewed racial trou­ of Wall Street, Basel, and the City of London is Mahathir's bles between the two largest population groups, Malay (48 % ) population policy, which the Econbmist called "alarming." and Chinese (34%). And in the midst of all this, Islamic He is committed to raising the country's population from its fundamentalism is rearing its ugly head. current small 15 million to 70 million by the year 2100. Just

EIR June 5, 1987 International 53 prior to the mid-April Kuala Lumpur conferenceof the Inter­ action Council of Former World Statesmen and Leaders, dominated by the Socialist International's Helmut Schmidt, one of Schmidt's aides told a journalist in Europe that Ma­ We buy and sell hathir was facing a significant internal political challenge, earthmoving and construction and would be forcedto compromise on some of his pOlicies, notably population growth. But Mahathir refused to accept equipment of all types. Import the Interaction Council's recommendations for population and export worldwide. reduction, the aide complained afterthe meeting.

Fundamentalism vs. nationalism Those who could immediately profit the most from the Please contact us UMNO split are the Muslim fundamentalists, who were shut when buying or selling. out of the government when the Parti Islam won no seats in the last general election, but continue very active in the prov­ inces. The French daily Le Figaro warned May 2 that Ma­ "\ �R R� hathir may well find himself walking on a razor's edge be­ cause of his party's split, having to seek the supportof UMNO EKEI)]) ENTERPRISES LTD. members likely to become closer to the fundamentalists. EQUIPMENT SALES The fundamentalists, most active among younger Malays � I R tJ\ � on university campuses in the past decade, are playing a dirty Phone 403-452-0606 Te lex 0374 2883 game among Malaysia's racial divisions, which were fos­ (Telsec ed) 16641 -114 Av e. tered when the British colonialists brought in both Chinese and Indian workers for the plantations. The Far Eastern Edmonton, Alberta T5M3P9 Canada Economic Review Jan. 22 quoted Mohamad Abu Bakar, a lecturerat the University of Malaya, from his essay on Islam and nationalism: Nationalism directly contradicts the Muslim tenet that "one should submit to no authority other than Al­ lah. . . . Now that the exponents of Islam are ascendant . . . the Malay attachment to nationalism may disappe� com­ pletely." An article in the April issue ofthe London-based Muslim Brotherhoodpublication, Islamic World Review, is quite ex­ plicit. "Muslims . . . arenot so naive as to put their total trust in electoral processes of a secular-democratic variety. . . . "One thing now is certain. . . . Mahathir has effectively silenced critics even from within his own party, and with his electoral win, onecan only wait for more repressionto come ." The "repressions" the Muslim Brotherhood decries in­ clude the "Memali incident" in November 1985, in which some 18 persons-four of them policemen-were killed aft­ er the police attacked a group of fundamentalists led by one Ibrahim Libya at Kampung Memali. "Memali was, and is, the substance of the Islamic movement," theIslamic World Review wrote. The incident was used to undermine Mahathir at the UMNO party convention, with allegations that he ordered the attack. The incident occurredthe day before he left Nov. 20, 1985 for a trip to China. During a speech April 12 opening the UMNO convention, in one of the predominantly Muslim states of Malaysia, Mahathirsaid , "This is the responsibility of the police, and their responsibility rests with the Home Affairs Minister. " The Home Affairs Minister at the time was Datuk Musa Hitam.

54 International EIR June 5, 1987 Report from Rome by Liliana Celani

AIDS, drugs are top election issues last few months, 16,000 tested sero­ No thanks to the leaders of the political parties, who have tried positive. In Naples, in southern Italy, to keep a lid on controversy . an epidemic of hepatitis has broken out, spurred by poverty and the lack of hospital facilities. One person in seven is carrying hepatitis, which is linked to AIDS in terms of symptoms and immunological deficiency. The Schiller Institute demands universal screening to determine the On June 14, Italians will go to the Michael and his angels fought the real extent of the epidemics in Italy, polls inearly national elections, to vote dragon. The Ancient Serpent, the one the allocation of funds for new hospi­ up a new Parliament. The elections who was called Devil and Satan, was tals, as well as the creation of a nation­ were called one month ago, as the in­ cast down on the Earth and with him al research center, similiar to the Pas­ evitable outcome of a long govern­ were cast down his angels." The Pope teur Institute in France, working on a ment crisis which followed the resig­ explained, "This fight is still relevant crash program to develop nonlinear nation of Socialist Premier Bettino today, because the Devil is alive and spectroscopy and optical biophysics, Craxi. at work in the world." He urged Cath­ "with the maximum national and in­ To judge from the media, the only olics not to accept any "compromise ternationalcoordination ." "issue" in this election would seem to or accommodation" with evil. Other Christian Democratic can­ be the personal confrontation between The Schiller Institute, an interna­ didates have also taken up issues for Craxi and the head of the Christian tional association headed by Helga which the Schiller Institute is famous: Democratic party (DC), Ciriaco De Zepp-LaRouche, is distributing a leaf­ the waron drugs and the call for a new Mita, who is claiming the right of his let entitled "Stop AIDS to Defend international economic order to solve party to take over the premiership Life!" which includes concrete pro­ the debt crisis and allow high-technol­ again. In TV debates, rallies, and in­ posals to stop the AIDS epidemic in ogy industrial development. terviews, leaders of all parties are very Italy. The measures have been en­ In November 1985, the institute carefully avoiding any discussion of dorsed by five Christian Democratic held a conference in Rome on St. Au­ the problems that Italy is facing right electoral candidates, four of them par- gustine and the fightfor a just econom­ now, and find it more comfortable to 1iamentarians: the Hon. Maria Pia ic order, with the participation, among reduce the election campaign to per­ Garavaglia, who chairs the DC health others, of Helga Zepp-LaRouche and sonal insults. Craxi, in his first cam­ commission; the Hon. Vincenzo two Christian Democratic parliamen­ paign rally in Milan, went so far as to Bianchi di Lava gna; the Hon. Rolan­ tarians, Sen. Vincenzo Carollo and the blame God for sending a downpour, do Rocchi; the Hon. Luigi Memmi, a Hon. Publio Fiori. The conference which prevented voters from attend­ member of the DC economics com­ opened a debate on the link between ing. mission; and Tiziano Garbo. economics and Christian morality, To the extent that significant polit­ As the leafletemphasiz es, "AIDS which is still ongoing today. ical and moral issues have been raised, disappeared from the front pages of One of the speakers at that confer­ this has been done from outside the Italian dailies as soon as the election ence, Publio Fiori, is now distributing electoral process as such, by Pope John campaign started. They even wrote that anelection campaign sticker that reads, Paul II and by the Schiller Institute. the virus is, after all, not so danger­ "War on Drugs: Vote Fiori !" He gave The Pope has been touring southern ous, since recent figures would indi­ an interview recently to the weekly cities, calling for a fight against "the cate that new cases are not increasing newspaper Nuova Solidarieta, sup­ culture of death," as expressed by pro­ exponentially as initially expected." porting the anti-drug efforts of Peru­ posals for euthanasia and abortion, and The cited, typical wishful elector­ vian President Alan Garcia. Parlia­ for "returning to Italy its Catholic im­ al lie contrasts sharply with the actual mentarian Rocchi, who endorsed the age." At one town, Gargano, he cited health situation in Italy. According to Schiller Institute's AIDS program, also a passage of the Apocalypse which the Istituto Superiore di Sanita, Italy's supported Peru's efforts to achieve a had not been used in the liturgy for a top health institution, out of 48,000 new economic order, in an interview long time: "There was a war in the sky; people tested in Italy for AIDS in the with the same newspaper.

EIR June 5, 1987 International 55 Dateline Mexico by Josefina Menendez

A political Exocet de Gortari . Rather, he charged that the Mexican presidential hopefu l Bartlett may have had his high­ libel had been financed and published on instructiqn from Interior Minister fly ing ambitions shot outfrom under him. Manuel Bartlett Diaz, for the purpose of eliminating Salinas de Gortari as a rival for the presidency. He added that one of the presumed authors , Jose Luis Gonzalez Meza, worked for Pedro Vazquez Colmenares, the director of the OlSEN with links to Bartlett's per­ On May 24, syndicated columnist de la Vega, felt obliged to comment sonal secretary Ruben Guerrero Zor­ Jack Anderson published an analysis on the matter, describing the book as rilla. of the presidential succession fight in an "execrable" attack on the reputa­ Menendez Rodriguez went ever Mexico, which suggests that certain tion of a leading public official further. He said that Gonzalez Meza intelligence circles-for whatever Confidential sources indicate that had given a press conference to na­ reasons-fed him some rotten fish for the book also irritated President Mig­ tional and foreign correspondents to dinner. uel de la Madrid. However, the scan­ announce the release of his book, and Anderson's analysis is based on an dal didn't stop there. on May 4-6, had visited several na­ alleged CIA report which gives Man­ The interior ministry began an in­ tional newspapers to distribute the uel Bartlett Diaz, currently Mexico's vestigation of the book's publication. book, guarded at all times by two Ol­ interior ministry , significant chances One of the two supposed authors, SEN agents. for becoming the ruling PRI party's Walter L6pez Koehl, is a reporter for Menendez's accusations before candidate for President this fall. Ac­ Por Esto magazine, run by long-time Carrillo Olea infuriated the OlSEN di­ cording to Anderson's sources, if intelligence agent Mario Menendez rector, who demanded that Menendez Bartlett is the next President, there will Rodriguez. For this reason, the inte­ reveal the identity of his sources. The be "a rosier period in U.S.-Mexican rior ministry concluded that the book Por Esto director replied with a chal­ relations. " came out of the publishing house of lenge to debate the veracity of his Anderson was apparently not privy Por Esto . charges before President de la Ma­ to recent developments here that On May 14, several police agents drid, which; Vazquez Colmenares­ threaten to prove highly unfavorable entered the magazine's offices to "in­ again according to Menendez-not for the interior minister's reputation, vestigate" the matter. That same day, only refused but retaliated with the developments which exploded in a an armed confrontation among police threat to "begin our investigation with scandal whose impact is comparable agents took place which, according to you." to that of an Exocet missile exploding Menendez, was prefabricated to try to In number 269 of Por Esto director on the bow of the Bartlett campaign provoke the workers of Por Esto mag­ Menaendez demanded an investiga­ ship. azine. tion of "the links of Vazquez Colmen­ The scandal broke around the pub­ On May 15, Por Esto's director ares and members of his familiy with lication of an "underground" book met withdeputy Interior Minister Jorge the drug trade . . . en Oaxaca." In about Planning and Budget Minister Carrillo Olea, in charge of matters re­ number 268 of the magazine, Mendez Salinas de Gortari, also a leading pres­ lated to national security. Also attend­ said that the matter "obliges the Pres­ idential contender. The book is an at­ ing the meeting-previously unan­ ident of the RepUblic to conduct a full tack on the minister, proceeding from nounced-was Pedro Vazquez Col­ investigatiom, which of course cannot the claim that at six years of age, Sal­ menares, the director general of the be carried out by either the interior inas de Gortari accidentally murdered National Security Intelligence Service ministry-which in our judgment is a housemaid with a shotgun. (OlSEN). directly involved in the matter-nor The book's contents were publi­ Menendez Rodriguez denounced by the defense ministry-because cized in various magazines, and cir­ the acts of police "provocation" against some of its highest officials appear to culated clandestinely throughout the magazine, and said that Walter be committed to the head of Bucareli Mexico City'S political circles. Even LOpez had not even been involved in (the interior ministry-ed.) in the the national president of the PRJ , Jorge producing the book attacking Salinas presidential 'succession ."

56 International EIR June 5, 1987 From New Delhi by Susan Maitra

The Kremlin's 'Kissinger' pays a visit We had a problem. In the end, Paki­ The stage was setfor some good, old-fashioned patronizing, and stan will have to realize that Pakistan, Dobrynindid not fa il to oblige. India, and the Soviet Union are close friends." If this was all a bit jarring to the ruling party , Dobrynin's meetings with the two Communistparties must have On May 27 , Anatolii F. Dobrynin ment puffed up its "anti-imperialist" added a further jolt. Conveying the and his eight-man delegation conclud­ posture, the great-powerdesigns of the "firm view" that Delhi's policies are ed a seven-day visit here "fully satis­ mother of anti-imperialism, the Soviet against imperialists and friendly to the fied." The CPSU Central Committee Union, have led India's great friend to U.S.S.R., Dobrynin still listened secretary said talks with Prime Min­ woo both China and Pakistan, the two sympathetically to the Communist ister Rajiv Gandhi showed that India main accomplices in the recent Con­ claims that the government's econom­ and the Soviet Union shared similar, gress (I) version of the plot against the ic and social policies were "anti-peo­ if not identical , views on the major country. It is this coincidence, and all pIe," cautioning only that the fight problems of the day. "We attach great it implies, that put a special edge on against destabilization must not suf­ importance to the talks we had here the Kremlin heavyweights' visit. fer. and we are sure that Indo-Soviet rela­ Most revealing was Dobrynin's Though they have declined to join tions have a great future," Dobrynin May 22 meeting with the Congress (I) an opposition front against the gov­ said. leaders, recounted in one local paper ernment, bothCommunist partieshave A guest of the government and the under the headline, "Dobrynin De­ been cold to fervent entreaties from ruling Congress (I) Party , the high­ cries India's Paranoia." Asked to the Congress (I) to team up against the powered Soviet diplomat was on an comment on the destabilization issue, "destabilization. " officialmissi on to follow up joint pro­ Dobrynin reportedly said, "You can For the rest, the "protocol" side of grams launched during General Sec­ only destabilize a country when you Dobrynin's visit yielded the expected. retary Gorbachov's spectacular No­ are internally not united. If the nation Meetings with Indian Foreign Minis­ vember 1986 visit and prepare the has this unity, no one can destabilize ter N.D. Tiwari and Defense Minister ground for Mr. Gandhi's early-July you." K.C. Pant-significantly, Dobry­ trip to Moscow to inaugurate the Fes­ It was not exactly what the Con­ nin's delegation included a major gen­ tival of India. gress anti-imperialists wanted to hear, eral of the Soviet Armed Forces-re­ But the ironies surrounding the but according to one report, it was ful­ viewed India's security concerns and visit gave it a significance beyond pro­ ly coherent with the Kremlin's careful the general situation in the region. In­ tocol. Rajiv Gandhi had just okayed response to the Indian government's dian officialswere briefed, in tum, on the next phase of a dubious campaign, recent complaint. Soviet perceptions and initiatives, championed by the party's pro-Soviet "The Soviet Union is India's from Afghanistan to the Geneva talks. wing, against "foreign destabiliza­ friend. It does not anticipate a confla­ Dobrynin affirmed that the Soviet tion," to regain his government's gration," Dobrynin replied to similar Union would continue to extend co­ standing in the wake of a series of queries about China's intentions to­ operation in defense supplies and pro­ debilitating scandals. Rajiv himself ward India. Dobrynin explained to the duction technology, and at a dinner launched the campaign with a volley Congress leaders that the Kremlin had speech in Kashmir, where he vaca­ of rhetoric against the imperialists, also had a problem with China, one tioned for severalda ys, Dobrynin her­ their accomplices in the neighbor­ that took 15 years of negotiation to alded the cooperation in science and hood, and traitors within India. Agi­ begin to resolve. technology that would get a new boost tation over the U. S. military relation­ On Pakistan, another key to the with an omnibus agreement to be ship with Pakistan-with the alleged destabilization game, Dobrynin could signed in July. bomb and AWACS sales in the fore­ have been mistaken for a U.S. State It was also determined that com­ front-is at a peak here now , and bor­ Department spokesman. Pakistan does mercial and economic relations would der tensions with China keep bursting not have a nuclear bomb, he stated, be diversifiedto raise the annual $3.6 into the headlines. and spoke of hopes for peace between billion Indo-Soviet trade two-and-a­ Even as the Rajiv Gandhi govern- the neighbors. "You have a problem. half times by 1992.

EIR June 5, 1987 International 57 International Intelligence

the 250th anniversary of Goettingen Uni­ public diplomacy. We hope the Soviet de­ Spanish terrorists can't versity. Police feared riots, in connection cision on VOA signals a sincere initiative to join Euro Parliament with a protest rally of 25,000 students. The open up their closed society. It's a positive leaflet said that the universities have to be step ....The spirit of glasnost in the Soviet "attacked" as "capitalist ventures. " Union, we hope, will not be selective and a A subgroup of the Rainbow Coalition of the • Wackersdorf: A "commemoration" of temporary tactic. " European Parliament, known as the GRAEL, last year's Pentecost confrontation with the Soviet foreign ministry spokesman Yuri has decided to reject the application for police at the nuclear reprocessing site is now Gremitskijch stated on May 26 that Russia membershipby Spain's Herri Batasuna par­ on the agenda. had ended its jamming of Voice of America ty , on the grounds that it "supports, in one • Aachen: Unusual steps were ordered broadcasts, as an example of "openness" way or another, violence . . . and promotes to protect Henry Kissinger, who received and "g� will." However, Gremitskikh negotiation betweenarmed organizations and the Charlemagne Award on May 28, from confirmed that jamming of Radio Free Eu­ the Spanish state ." Herri Batasuna is the attacks by anti-American rioters. rope and Radio Liberty would continue: legal front for the ETA terrorists. • The Green Party's parliamentary cau­ "Their basic objective is to relay informa­ The announcement was greeted with cus in Bonn displayed a poster of Pope John tion that can undermine the internal security some surprise in European political circles. Paul n, portrayed with a hole in his fore­ and stability" of East bloc countries, he stat­ The Rainbow Coalition itself is largely com­ head, as if caused by a bullet. Afterprotests ed. posed of pro-ecologist riff-raff, who have from enraged Christian Democrats , the been involved in one scandal after another, Greens removed the poster, which closely concerning their relations with "reformed" resembled the terroristposter which had ap­ members of the Red Army Faction (Baader­ peared before the pontiff's recent German Meinhof Gang), their financing of the anti­ u. S., Canada clash tour. French New Caledonian Liberation Move­ to Moscow's benefit ment, and other such causes. The decision came in the midst of an There is a� increasing pattern ofcontroversy uproar over the murder of two Socialist Par­ Soviets stop jamming between the United States and Canada, on ty militants in Portugalete, Spain, in the Vo ice of America issues ranging from access of U.S. subma­ course of a firebombing action presumed to rines to the Arctic, to "acid rain ," the Ca­ be have been carried out by Batasuna mem­ nadian purchase of nuclear submarines from bers, rather than by ETA . It also followed Voice of America broadcasts were not jammed the weekend of May 23 , for the first third countries, fishing rights, and the on­ the release to the Spanish authorities, of time in seven years, a U.S. embassy official going legal case of former White House aide documents seized at the ETA Cooperative Michael Qeaver, in which the Canadian am­ "SOKOA," documents said to prove the fi­ in Moscow reported. The apparent end of bassador �as been asked to testify. nancial and other relations between ETA and the VOA jamming comes on the eve of a Z. the Herri Batasuna. visit to Moscow by Charles Wick, direc­ Lyndon LaRouche, in a statement is­ tor of the U . S. Information Agency (USIA). sued May 26, warnedthat the disputes serve However, Radio Free Europe and Radio the interests of the Soviet Union. New riots, street battles Liberty, whose programs are sharply critical Under the Soviet scenario, he wrote: of the Soviets, reported intensifiedjamming ". . . Canada would become a neutralized threatened in Germany of their service over the weekend. Radio buffer for the U.S. against Soviet positions Liberty broadcasts to the Soviet Union and in the Arctic region. Prior to President Reagan's June 12 visit to Radio Free Europe covers Eastern Europe. ''This Soviet formulation was recently West Berlin, the Soviet-backed pro-terrorist Malcolm S. Forbes, Jr. , chairman of the confirmed by statements of Canadian For­ milieu is threatening new riots and provo­ Board for International Broadcasting, which eign Minister Joe Clark, stressing the urgen­ cations throughout West Germany: oversees the two services, said "at least two cy of settl;ng Canada's territorial claims to • West Berlin: A rioter, arrestedduring of the Soviet jammers previously aimed at Arctic regions now part of the U.S. defense the May Day rampage, died in his prison VOA have been redirected against Radio perimeter. The May 18 Soviet New Times cell at the end of May, and leftists are ac­ Free Europe-Radio Liberty. " contains a signal piece by Vladimir Ulas­ cusing the police of "murder." They are At a Washington airport news confer­ evich, signaling to Soviet agents and dupes threatening "a storm of fire" to greet Presi­ ence, Wick linked the halt in VOAjamrning around the world, that now is the time to dent Reagan when he visits the city. to Mr. Gorbachov' s alleged glasnost(open­ push hard for a limited rupture in U.S.A.­ • Goettingen: Terrorist leaflets caused ness): "Mr. Gorbachov seems to be very Canada relations. . . . the cancellation of the officialcelebration of much more attuned to the need and value of "According to the New Times signal-

58 International EIR June 5, 1987 Briefly

• DAILY SKIRMISHES have been occurring between the Israeli piece, the principal concern of Moscow is year. There are similarities to the Philip­ Army and Jewish settlers in the West not that U.S. nuclear weaponsmight bebased pines." Bank. The Central Command (West in Canada, but that NORAD radar facilities He stated that Catholic fathers and Prot­ Bank) of the Army is now led by Gen­ in Canada might be upgraded to meet the estant pastors, acrossSouth Korea, have be­ eral Mitza, a staunch opponentof Ar­ requirements of SOl for detection of Soviet gun hunger strikes against the regime. He iel Sharon and extreme right wing . . said a key target date this year, would be a missiles and submarines. . " settler groups. There have been two meeting in the second week of November of army interventions in the last 10 days, the Korean National Council of Churches, as settlers tried tobreak into the "Cave what he called an "international gathering of Patriarch" in Hebron and the Communal violence on peace, justice, and unificationof the Ko­ "Tomb of Joseph" in Nablus, both reas ." flaresup in India Muslim religious sites. This would involve participation of the At least 60 people were killed and several "Consortium for the NCC/Korea," com­ • GEIDAR ALIYEV, the Soviet hundred wounded in religious riots between prised of top American and European Politburo's Mideast handler, has fall­ Hindus and Muslims, as violence flared up churches, including West Germany's Evan­ en into political disgrace, reported the again in India May 22. Five days after riots gelical Church (Lutherans). Baltimore Sun on May 26 . The dep­ broke out in Meerut, north of Delhi, vio­ uty prime minister is expected soon lence spread to the old sections of the capi­ to be ousted from the Politburo. He tal, Le Monde reported May 25 . has not beenseen in public for several Newspapers reported at least 100dead. Kinnock: Britain weeks and has corne under sharp in­ Police arenow on general alert, and soldiers direct criticism for failing to improve and reinforcements are being called into the is likeAf ghanistan consumer services. He is also report­ Delhiarea fromas faraway as India's south­ British Labour Party leader Neil Kinnock to be under investigation for cor­ ernmost province of Tamil Nadu. � has created a small political storm in Eng­ ruption. Prime Minister Rajiv Gandhi said in a land by suggesting in a mid-May statement television address: "Nothing is more dan- I that the Soviet Union at some point in the • SOVIET DEFENSE Minister gerous for our culture and our future than future might occupy the British Isles, and Sergei Sokolov led a high-level mil­ the cancer of communalism. We will sur­ British defense policy should be based on itary delegation to North Yemen in vive in a secular India, or not at all." that prospect. Ever since, Prime Minister mid-May. The talks centered on mil­ Areas of Delhi looked like a battle zone, Margaret Thatcher, running against Kin­ itary cooperation between the two Le Monde reported, after deadly riots that nock and others in June elections, has been countries. beganwhen police lifted the curfew to allow having a political field-day at his expense. Muslims to attend mosques for the last Fri­ Kinnock argued that Britain's defense • ARMED CHINESE soldiers put day in Ramadan. Bands of Muslim youths should be based on "making any occupation an Irish AIDS carrier on a plane to set fire to Hindu homes, and were only driv­ totally untenable," and cited Afghanistan as Britain May 23. The man, who had a en back when the army was called out. a model. Presumably, Britons were to pre­ long history of drug use, was discov­ pare themselves for guerrilla war. ered to be carrying AIDS when Britons were flabbergasted that some­ Chinese doctors examined him after one could draw a parallel between the United he fell from the Great Wall. Kingdom and a country in which 5 million Council of Churches people have been made refugees by Soviet • TELESPAZIO, the Italian tele­ moves against Korea invading forces ! communications agency, is consid­ During an election rally in South Wales �ring using theSoviet spacecenter at World Council of Churches networks are May 24, Prime Minister Thatcher blasted Baikonur to launch its satellites. So­ deeply involved in the destabilization of Kinnock: viet Premier Nikolai Ryzhkov made South Korea, a council source said on May "He has left himself no policy but to the offer of the facility after the 24: "Global ecumenical solidarity with the yield to invasion and occupation and to trust American Challenger disaster. The churches and students of South Korea, in the forlorn hope that a guerrilla struggle cost will be 25 billion lire for each against the government, is increasing ," he would eventually persuade the army of oc­ launch. The Soviets say they will stated. cupation to withdraw. I do not understand guarantee that there will be no in­ "The regime is squeezed. I would say how anyone who aspires to government can spection of Western payloads. this regime will befinished by the end of the treat the defense of our country so lightly."

ElK June 5, 1987 International 59 �ITrnNational

Reagan opens door to Constitution's destruction

by Kathleen Klenetsky

President Reagan has opened the door wide to the destruction convention must be held. of the U.S. Constitution, by foolishly deciding to throw his Reagan's decision to make the constitutional convention weight behind the movement to convene a constitutional a key element of his political agenda, highlights most effec­ convention. tively how the President's incompetence in economic mat­ Sources date Reagan's embrace of the constitutional con­ ters , and his hysterical refusal to admit that his economic vention idea to early this year, when certain of his economic recovery never took place, is leading him into actions which and political advisers convinced him that the only way he will bring utter ruin on the United States. could persuade Congress to adopt a balanced budget amend­ First of all, the balanced-budget amendment is a stupid ment, was through the convention route. idea in itself. It does nothing to address the fundamental Previously, Reagan took a "neutral position" on the issue, problems of the U.S. economy-the declining tax base, the one source told EIR . But after the Iran-Contra scandal broke , erosion of industrial and agricultural production-and would Reagan shifted his position sharply. Since the beginning of effectively prevent the nation from meeting the growing mil­ the year, the President has publicly endorsed the convention itary threat from the Soviet Union. The most popular form of numerous times, and personally intervened in March to try the amendment would permit the countryto go into a budget­ to persuade the Montana state legislature to become the thir­ deficit situation, only in times of actual declared war. ty-third state, out of a constitutionally-required thirty-four­ The constitutional convention poses an even greater threat. to ratify legislation calling for a convention to be assembled. There is nothing in the Constitution which would limit the Reagan's intervention failed-Montana rejected the con­ actions of the assembly. So, even though President Reagan vention resolution-but that did not dampen the President's might want it to producejust a balanced budget amendment, enthusiasm for the idea. During the last week in May, the in reality the convention could easily become, by accident or President gave two major addresses which centered on the design, a free-for-all which would amend the Constitution theme of the constitutional convention. out of existence. The potential for a run-away convention is In his radio address May 23, Reagan called on the Amer­ especially great at the present time, because of the powerful ican public to memorialize those killed in the attack on the movement set into motion by Trilateral Commission member USS Stark, by forcing more "responsible" action on the fed­ Lloyd Cutler and others to abolish the present form of U.S. eral budget. Because of Congress's recalcitrance to enact government, in favor of a virtual one-party, parliamentary balanced-budget legislation, said Reagan, the only alterna­ dictatorship. tive is to convene a constitutional convention for that pur­ pose. A 'lalapalooza' of a mistake The President followed that up with a speech to the Na­ In a statement released May 24, Democratic presidential tional Association of Manufacturers May 28, in which he candidate Lyndon H. LaRoudhe termed the President's en­ assailed those who say that his economic policies have led to dorsement of a constitutional convention a "terrible mis­ the deindustrializationof the United States-a charge which take," one which could prove "fatal to the future existence of is absolutely true-and insisted again that a constitutional theUnited States. " "I like Ronald Reagan, " wrote LaRouche,

60 National EIR June 5, 1987 "but he does tend to make a number of blunders," and this tion will be enough to force Congress into adopting a "BBA." one is a "first-rate lalapalooza." LaRouche called Reagan's This ridiculous line was first concocted by the National proposal a "monstrous folly," which would open the "flood­ Taxpayers Union (NTU), the princi pal group organizing state gates to destroy our Constitution," and vowed, "On this one, legislatures on behalf of the constitutional convention call. I would fightthe misguided President tooth and nail." The NTU was established in 1969 by James Davidson, an The worst thing about the President's economic policy, Oxford-trained American with an affected British accent. On is not so much the fact, that he has no grasp of the ABCs of its board are such luminaries as James Buchanan, the Nobel economics, LaRouche said, "but that he refuses to recognize prize winner in economics (a sure sign of incompetence) and his ignorance of the subject. So, we have a President who fanatical Friedmanite, along with Richard Lamm, the former insists we must have a constitutional revision to balance the Democratic governorof Colorado who thinks the elderly and federal budget, after his administration, in six years, has piled handicapped should "die and get out of the way." Sens. Bob up a bigger increase in the federal deficit than all previous Dole (R-Kan.) and Dale Bumpers (D-Ark), and Rep. Les administrations in nearly 200 years, combined." Aspin (D-Wisc.) are among the many members of Congress The reason for this huge deficit is not the lack of a bal­ affiliated with the NTU. anced-budget amendment, LaRouche said, but the adminis­ The NTU claims that a constitutional convention will tration's fundamental economic errors . "The way to increase never take place-although they expend an awful lot of time the federal government's revenues without increasing the and money to ensure that it does. Instead, says NTU spokes­ tax-rates, is to increase the income of U .S. farms, industries, man Sheila MacDonald, the aim is to use the threat of a and households. President Reagan's economic agenda has constitutional convention to "scare" Congress into legislating done exactly the opposite. Farm income has collapsed, in­ a balanced-budget amendment. dustrial jobs are following the Dodo to the exit, the service The NTU argument is complete nonsense. For one thing, jobs available are part-time, or bring in about half the income they have been only two states short of the necessary 34 for of industrial employment. Where has the growth been? In a several years-and Congress still hasn't acted. Will one more spiral of financialspeculation , adding up to the biggest finan­ state make that much difference? For another, although there cial bubble in history," a bubble "about to pop." are moves afoot in at least five states to rescind resolutions To balance the budget, the United States needs an "actual endorsing the constitutional convention, there is a very good economic recovery," according to LaRouche, with "farms chance that the two more states will sign onto the convention back into operation, industrial work-places reopened, repair­ before these other states withdraw their approval. According ing the nation's collapsing basic economic infrastructure, and to the NTU, three states could adopt pro-constitutional con­ high rates of investment in creating the advanced-technology vention bills this year-California, where the state legisla­ work-places that will enable the U.S. to compete in the world ture will hold a hearing on the issue June 10, New Jersey, market." and Hawaii. The U. S. Constitution contains "all the powers which the Thus, it seems far more likely that the NTU employs this President and the Congress need to balance the federal budg­ argument to convince less sophisticatedtypes (including the et: the power to act in ways which stimulate real economic President) that they can clamber on board the constitutional growth. In fact, the Preamble of our Constitution insists on convention bandwagon, without having to worry about the government doing just that. . . . If a person knows how to consequences, since it will never happen. But, of course, it read, everything absolutely essential is right there in the could-and soon. Preamble ." If Reagan's embrace of the constitutional convention The problem is that the Reagan administration "has not hasn't scared Congress, it has surely upset many of his grass­ exactly lived up to that Preamble-which those folk took a roots loyalists. The Eagle Forum, run by conservative activist solemn oath to uphold ..... 'Establish justice,' for example: Phyllis Schlafly, has organized a coalition for the specific as I look around this country, and as I know personally, the purpose of halting the convention momentum, warning that Reagan administration seems not to know what 'justice' Lloyd Cutler and his anti-Constitution allies in the Commit­ means. 'Provide for the common defense': there , the admin­ tee on the Constitutional System willseize control of a con­ istrationhas been a bit better on performance, up to the point vention, to ram through their scheme for transforming the they have to choose between defending the nation and de­ United States into a parliamentary system. "We are extreme­ fending Gramm-Rudman. 'Promote the General Welfare': ly disappointed that President Reagan has come out in favor," this administration seems not to know what 'General Wel­ a spokesman said. fare' is." Similarly, the Daughters of the American Revolution adopted a resolution at its April national convention calling The National Taxpayers Union on its members to get their respective legislatures to rescind. It is clear from the the way in which the President has The resolution specificallycited Cutler's CCS, accusing this couched his discussion of the convention, that he has been "powerful group of elitists" of wanting to restructure the led to believe that the mere threat of a constitutional conven- Constitution into a "new world order. "

ElK June 5, 1987 National 61 the Illinois and Colorado legislatures. Bills there would em­ powerpublic health officialsto require some mandatory test­ ing contact-tracing, and isolation of some AIDS carriers. ' AIDS 'hottest issue' The Illinois House and Senate have passed several AIDS bills, although none has yet been made law. In mid-May, in the states according to the Chicago Tribune, the House voted up several ' measures that would require local health departments to re­ who in­ by Kathleen Klenetsky port to school officials the identity of children are fected with AIDS; require people convicted of sex offenses, including prostitution, to betested; require health workers to AIDS has so frightened the American population, that mea­ tell their employers if they have AIDS; and make it a felony sures to deal with the epidemic arenow dominating the agen­ for an AIDS carrier to deliberately donate blood. das of many state legislatures. AIDS ranks number-four on At the same time, the Senate adopted the Illinois Sexual­ the list of legislators' priorities, and is expected to jump to ly-Transmitted Disease Act, by a vote of 40- 15. Its chief the top of the list by next year. According to Carol Thomas, sponsor, Sen. Aldo De Angelis (R-Chicago Heights), de­ of George Washington University's Intergovernmental Health scribesthe bill as a "comprehensive act," which "defines the Policy Project, AIDS is the "hottest political issue at the state steps the Public Health Service has to take" to deal with the level." disease. In an interview with EIR , De Angelis said his bill A recent survey conducted by the GWU project revealed would permit quarantine under three circumstances: if a per­ that over 350 separate pieces of AIDS-related legislation had son volunteers for quarantine; if a high-risk establishment been introduced in state legislatures across the countryduring shows an unusual cluster of AIDS infections; and if an indi­ the firstthree -and-a-half months of this year. Only a few have vidual is "willfully and knowingly" transmitting the disease been enacted, but, says one analyst who has been monitoring and "endangering the public health." In the last case, the the situation, "I wouldn't be surprised if more than half the individual could also be charged with a Class IV felony. states passed some kind of AIDS measure by the end of the The legislation would also require contact-tracing, and year." would mandate the Department of Public Health to test indi­ The state-level legislation ranges widely. Some proposals viduals who may be carrying the disease to take an AIDS would merely allocate more funds for AIDS education, or test. If they refuse, the DPH Can obtain a warrant. for distributing free condoms. But many would mandate While public health officialsalready have many of these . tougher measures, including mandatory testing of certain powers, they have never been codified in law, and thus the groups (e.g., marriage-license applicants, food handlers, et authorities are afraid to u�e them, said De Angelis. His bill al.), contact-tracing, and limited quarantine of AIDS car­ will provide that legal back-up. "If you're going to deal with riers . a public health problem of this magnitude," he said, "you Like Proposition 64, the California ballotinitiative which need enforcement." was defeated last November by the state's powerful homo­ De Angelis told EIR that, threeweeks ago, he would have sexual lobby , backed by the American Medical Foundation said that his bill had an extremely slim chance of passage. for AIDS Research, a group funded heavily by Soviet agent "Now, it will almost certainly become law ." De Angelis Armand Hammer, many of the state bills seek to classify attributed this shiftto recent revelations that the state health AIDS as a communicable disease, subject to the same kinds department has done little to stem the spread of the disease, of public health measures as tuberculosis or syphilis. and to a new study showing that Illinois has the fastest­ As one source put it, there is "a very definitetrend toward growing body of AIDS carriers in the Midwest. The study legislation that codifies existing public health measures, projects that 500,000 state residents will be infected with the mandates that these measures be applied to AIDS carriers, virus by the 199Os, and that 19,000 of them will die from it [and] gives public 'health officials enhanced enforcement annually. power." In California, meanwhile, state voters will get an oppor­ The prevalence of these bills confirms that most Ameri­ tunity to vote for an AIDS referendum almost identical to cans haven't bought the lies promulgated by the Centers for Proposition 64.On May 26, former officials of the Prevent Disease Control and the Surgeon General's officethat AIDS AUDS Now Initiative Committee (PANIC), the key force cannot be transmitted' casually, and that mandatory testing behind Prop 64, submitted to the state Attorney General a will driv�. AIDS carriers underground. A recent poll con­ draft ballot initiative to appear on the same 1988 ballot as the ducted by the American Medical Foundation found that only presidential primary in the state of California. 27% of thepopUlation trusts what the medical and scientific It will be a lot harder for the homosexual activists, Hol­ experts say about AIDS . lywood celebrities, and Armand Hammer to defeat the mea­ The most promising legislation under consideration is in sure this time around.

62 National ElK June 5, 1987 International Jurists Meet in Washington

Rights panel promises independent inquiry into 'LaRouche case'

The Fact-Finding Committee of the Commission to Investi­ States cannot be defended." gate Human Rights Violations in the United States began The other members of the Committee are: Dr. Edwin public hearings May 26, on alleged human rights and consti­ Vieira, Secretary, an American attorney and constitutional tutional rights violations in the case of state and federal ac­ law expert; S. C. Birla, counsel of the Supreme Court of India tions against U.S. presidential contender Lyndon H. La­ and Secretary-General of the All-India Bar Federation of Rouche, Jr. and his associates. New Delhi; Dr. Frederick Wills, former Minister of Justice LaRouche associates have charged that a faction of the and of Foreign Affairs of Guyana, and now aU.S. resident Department of Justice, acting on behalf of both the Soviet and professorof constitutional law; Lennart Hane, a Swedish Union and the U.S. Liberal Establishment, are waging a expert in international law , attorney at the European Human political witchhunt against their political movement. Rights Court in Strasbourg, and author of the book Creeping During the two days of hearings in Washington, the Com­ Dictatorship; and Larry Lopez-Alexander, U.S. attorney at mittee's six lawyers from four countries, advised by two law and former municipal judge. English attorneys, heard detailed testimony on the patternof government actions against LaRouche associates since Oct. 'The American ideal of freedQm' 6, 1986, the closure of publications associated with La­ The aim of the hearings was elaboratedby Kenneth Rich­ Rouche, and allegations of Soviet involvement in instigating ardson, Senior Queen's Counsel in England and former chief "legal measures" against LaRouche. prosecutor at London's Old Bailey Court, who is acting as Committee chairman Don Victor Girauta y Armada, an an adviser to the Fact-Finding Committee. "We are not here attorneyfrom Barcelona, Spain, explained the purpose of the as politicians," said Richardson, introducing himself and his group. "We, as professionals from different legal communi­ junior, attorney Jill Gort, "but as properly instructed legal ties, are observing, with affliction, that the world's severe advisers to this Fact-Finding Committee." "We have looked crisis is causing the failure of many well-established institu­ up to and admired the American ideal of freedom, out of tions, with the increasing danger of lawlessness. We have which the American Constitution was born, and thus, we're been requested, by some friends and supporters of Mr. Lyn­ happy to assist those who wish to champion the right of don LaRouche , to examine some facts and circumstances in persons to express their views without fear of harassment or reference to the series of state and federal prosecutions of reprisal." Richardson invited anyone with relevant informa­ Mr. LaRouche associates. . . . As an independent commit­ tion on the topic to contact the Committee. He then outlined tee, and as lawyers, we are here with the intention to inves­ the main areas of investigation: tigate the facts, documents, and all possible information we "We are anxious to find out, if there is justification for canget in connection with this case." branding Lyndon LaRouche, and those who support him, as Girauta said the Committee planned to "make some offi­ 'political extremists,' 'subversives,' 'fascists' ...or, is the cial contacts, so as to be able to have a clear, objective alternative view tenable, that his political writings-and cer­ opinion about the matter." and will eventually issue a report tainly if one judges him only on that-would suggest on the that "will be sent to all the legal communities in the Western face of them a man whose political philosophy many quite world." ordinary and reasonable people would find moderate . And "We are focusing our work, for the time being, on sup­ I'm not going to go into any of those matters now: You know posed human rights violations in the United States," he ex­ what I'm talking about, his views on fighting AIDS, SOl, plained, "from the recognition that no other country has any and the various matters that he considers important. But I chance to maintain its freedom, if the freedom in the United repeat, we're not here to look into the political side of the

EIR June 5, 1987 National 63 views of any political character or political party. " The following day, the Committee heard testimony from . The Committee, said Richardson, will consider "whether EIR Counterintelligence Editor Jeffrey Steinberg, who pre­ there has been a longstanding and continued harassment" of sented evidence of mounting Soviet government pressure on LaRouche and supporters . The group particularly wants to the U. S. governmentto "terminate the political and publish­ investigate the circumstances surrounding the Oct. 6, 1986 ing efforts" of LaRouche and his associates. Steinberg de­ raid of nearly 400 federal and state agents in Leesburg, Vir­ tailed LaRouche's key role , since the late 1970s, in devel­ ginia. and "whether the show of force that was there used oping and promoting the policy of Strategic Defense Initia­ could conceivably be justified in the circumstances in which tive. Within months of President Reagan's adoption of SOl it wa.suse d." as U.S. policy in March 1983, said Steinberg, the Soviets Richardson said the Committee will also consider the began a "continuous stream" of propaganda attacks on La­ circumstances in which contempt proceedings resulting in Rouche, culminating in a demand for "legal measures" by $21 million in fines were brought against four LaRouche­ the U.S. government against LaRouche in September 1986, associated entities, and the bankruptcy proceedings which only weeks before the Oct. 6 raid in Leesburg. Steinberg followed. ''The problem about bankruptcy proceedings in detailed the kind of channels through which the Soviet Union relation to people who are to face criminal prosecution," could influence the U.S. government, focusing on official Richardson noted, "is that they may be deprived of the re­ channels like the Justice Department's Office of Special In­ SOurces and of what they need to put forward a proper de­ vestigation, and "back channels" including Dr. Armand fense." Hammer, Edgar Bronfman, and other individuals and asso­ "It is alleged," he said "that there has been a concerted ciations. effort to close down all Lyndon LaRouche-connected busi­ Then Carol White, of the Fusion Energy Foundation, nesses and publications, and there is the worry ...first of outlined the role of the FEF and Fusion magazine in circulat­ all, that that might be prejudicial to criminal trials that are ing and promoting ideas and policies on the frontiers of sci­ coming up, and secondly, that his own position as a presi­ ence and, in opposition to the idea that the FEF was "bank­ dential candidate will become, if it has not already, seriously rupt," showed that Fusion's circulation had increased to flawed in such a way that fundamental rights are being in­ 114,000 and that paid advertising had greatly increased, fringed." shortly before the magazine was shut down by the bankruptcy court. A pattern of harassment Next Nancy Spannaus, editorof the newspaper New Sol­ The first witness to be heard was Sanford Roberts, a idarity, traced the history of attacks on her newspaper dating paralegal aide to some of the organizations involved, who back to the mid- 1970s, and testified that New Solidarity was described the government's legal attacks on LaRouche-as­ a pioneer in coverage on such topics as AIDS and the SDI. sociated organizations. He testifiedto the role of the FBI and Dr. K.D. Sharma, of India, testified on the brutal treat­ the news media, especially NBC, in instigating the Boston ment of LaRouche associates in court proceedings, empha­ Grand Jury investigation (started in October 1984 by then­ sizing the treatment of Mark Calney, for whom $500,000 U.S. Attorneyin Boston William Weld, who was appointed bail was originally declared, by a California judge who spec­ last yearto head the Criminal Division of the Department of ified that the reason for such exceedingly high bail, was his Justice), and the immediate effect on the LaRouche 1984 political association with LaRouche. presidentialcampa ign. He testifiedthat FBI agents instigated The last to testify was EIR counterintelligence expert a New Jersey bank to freeze LaRouche campaign funds, Herbert Quinde, who gave a blow-by-blow eyewitness ac­ leading to cancellation of a scheduled LaRouche TV broad­ count of the raid against LaRouche-associated organizations cast on the night before the presidentialelection . in Leesburg on Oct. 6, 1986. Roberts proceeded to outline the extraordinary events of Each individual who testified was questioned by com­ the past eight months, starting with the Oct. 6, 1986 raid in mittee members concerning details of testimony, and most Leesburg, and leading up to the April 21, 1987 closing of were asked to produce material substantiating their state­ two businesses and a scientific foundation. ments. Each was also asked to refrainfrom drawing conclu­ Roberts was followed by Lewis du Pont Smith and his sions, and to limit themselves to factual statements. wife, AndreaDiano Smith, who testifiedto the denial of their The Commission will soon issue transcripts of the hear­ constitutional rights, because of the opposition of his wealthy ings, and the Fact-Finding Committee has tentatively sched­ familyto his political association with LaRouche. Smith was uled furtherhearings in July, to investigate allegations made declared "mentally incompetent" and was politically and so­ thus far, especially those by Steinberg concerningthe Soviet ciallydisenfranchised by a courtthat, acting at the instigation instigation behind the legal attacks , and the government's of Sinith's family, issued its ruling simply on the basis that attempts at security-stripping conducted against LaRouche. Smith was supporting LaRouche both financially and politi­ The Commission will also have observers present at various cally. court appearances of LaRouche-associated individuals.

64 National EIR June 5, 1987 subject to a frame-up. LaRouche and the other defendants may be thrice-guilty of the charges leveled at them, but this does not warrant the vendetta mounted against them by the Justice Department or its campaign of thought -control. "Conspiracy" and "vendetta" are rough words, but I con­ sider them justifiedby the all-points litigations, the depriva­ tion of due process, and the violation of First Amendment Ve ndetta against rights by our law enforcement agencies. Consider that a judge in California set bail for one defen­ LaRouche is charged dant at $500,000 simply because he was, inthe judge's words, "part of that Lyndon LaRouche national and international Ralph de Toledano organization. " Copley News Service Note too: A phony contempt-of-court citation was slapped against LaRouche's political party and three of his organizations in WASHINGTON-Let me say first that I hold no brief for order to padlock them and put them out of business. Lyndon LaRouche, his political movement, or the organiza­ Executive Intelligence Review, a LaRouche publication, tions and publications he has engendered. In writing what was locked out of its offices and its property seized even follows, moreover, I open myself to attack from individuals though it was named in no indictment. who froth at the mouth if you dare so much as to say that the Legal techniques never heretofore dreamed of were de­ man is not Satan incarnate. vised to harass the LaRouche movement and its organiza­ Let me also iterate my conviction that whatever we may tions. think about LaRouche and his political movement, they are The editorial offices oftwo LaRouche publications were entitled to the full protection of the law and the Bill of Rights . seized and their staffs barred from entry, in direct violation If they trangress, they must be tried and convicted under the of the First Amendment. laws of the United States and not in star chambers . Promissory notes-loans to aid LaRouche's quadrennial What seems self-evident, however, is that the Justice presidential campaigns-were deemed "securities" by the Department is engaged in a conspiracy to silence Lyndon government, with 16 LaRouche party officials indicted for LaRouche and his movement, to destroy the organizations he unlawfully engaging in the sale of securities. heads, and to suppress the newspapers and magazines they The catalog is long, with some actions taken by the gov­ publish. Under the circumstances, we will never know whether ernment hard to believe but for the fact that even a media the LaRouche movement is gUilty as charged or whether it is hostile to LaRouche has reported them, and it continues. Now, as I pointed out, Lyndon LaRouche is a highly controversial political figure who has made many enemies. His rhetoric, and that of his publications, is frequently abrasive and sometimes highly abusive. He has fought the traditional political parties with a passion. He conducts an Weekly EIR intelligence operation that has high-level contacts with Cen­ tral Intelligence Agency and with other intelligence services, Audio Reports and is more often right about what is going on in the Soviet Union than the State Department. Cassettes Whether LaRouche and his movement are on the side of the angels or against them is, in my book, irrelevant. The • News Analysis Reports government has the right and the duty to move against them • 'Exclusive Interviews if they have cut legal comers-but no right to throw the $250/Year Constitution and the U.S. Code out the window in order to intimidate and suppress them. Make checks payable to: I am frightened by the behavior of the Justice Depart­ EIR News Service, P. o. Box 17390 ment. If it can throw away the book in dealing with one Wa shington, D.C. 2004 1-0390 "unpopular" movement, it can do it against anyone. Attn : Press

MasterCard and Visa Accepted. Ralph de Toledano, a nationally syndicated columnist, is the author of a biography of Richard Nixon .

EIR June 5, 1987 National 65 �merican system

Thurgood Marshall, Oliver North, and the To ries of the 1780s by Anton Chaitkin

Third in a series. The anti-nationalists The opposition was coordinated by a small New York On May 6, Supreme Court Justice Thurgood Marshall pub­ group, which had chosen to name itself the "Federal Repub­ licly joined the "parallel government" in its attack on the licans"-similar semantically to Mikhail Gorbachov's U.S. Constitution. Marshall declared that the Constitution "openness" and Colonel North's "Project Democracy." The had "endorsed slavery" and had not allowed women to vote, group's director, New Yode Collectorof Customs John Lamb, and he criticized public enthusiasm in the celebration of the corresponded secretly, in code, under false names and false Constitution's bicentennial year. covers, with anti-nationalists in every state. Col. Oliver North and his fascist backers in "Project Lamb's father, a burglar whose partnerhad been hanged, Democracy" say that constitutional government is an impe­ was put into the British equivalent of our present-day Federal diment to the effectiveness of their operations. While Special Witness Protection Program: He was sent to America and Prosecutor Walsh, Senate Intelligence Committee Chairman became a respectable colonial merchant. Young John Lamb David Boren, and others press their investigation of the anti­ emerged as a violent street agitator, at firstagainst the British. American spook world of the "parallel government," let us At theoutset ofthe Revolutionary War, however, Gen. Rich­ now review the original fight, in 1787-88, over the value of ard Montgomery wrotethat Lamb was, within the American the Constitution. army, "a restless genius" with "a bad temper. . . . He has The Philadelphia Convention having drafted the docu­ been used to haranguing his fellow-citizens in New York, ment, the people of each state were to decide on its ratifica­ and cannot restrain his talent here." tion. Should the people of the United States, having defeated From 1775 until 1780, Lamb's military career was closely the British colonial overlords in war, now constitute them­ linked with those of Gen. Benedict Arnold and Col. Aaron selves a nation, with a national government? Two years of Burr. During the 1788 New York fight over ratification, riots and threatenedanarchy throughout the countrymade the Lamb's traitorous proclivities and his pro-Britishcovert op­ question an emergency. erations against the Constitution became publicly known, The British nabobs, at this very moment planning the and his house was besieged by an angry mob. John Lamb opium enslavement of India and China, had by no means survived, was reappointed New York Customs Collector, resigned themselves to the loss of America, peace treaty or was caught stealing a large sum from the new U. S. govern­ no ! British colonial "theories of limited national sovereign­ ment, retired, and never went to jail. ty ," pushed in France by their Swiss spies Jacques Mallet du The New York opposition headquarters was aided nation­ Pan and Jacques Necker, had just (1786) resulted in the ally by a Pennsylvania-based covert operative, British im­ British-French Free Trade Treaty . This would quickly de­ migrant-publisher Eleazer Oswald. After his side lost the stroyFrench industry, and introduce hunger and chaos lead­ ratification fight, Oswald went off to France and became an ing to insurrection against the American-allied government. official espionage agent for the French Revolutionary gov­ Would agrarian America, swamped with imported Brit­ ernment. After he returned to America, Oswald's anti-na­ ish goods, likewise sink, and break apart? The ratification tionalist publishing activities reached a high point of provo­ fight, between American nationalists on one side, and the cation when he shot publisher Mathew Carey in a duel. Carey agents and dupes of British interests on the other, would survived to teach economics to Henry Clay, as Carey's son decide that question. Henry was to teach economics to Abraham Lincoln. The national contest was tightly organized, from the top Lamb and Oswald are known today only by specialized down, on both sides. historians of the period. The political leaders, whose work

66 National EIR June 5, 1987 against the Constitution they coordinated, include only a few Franklin's Philadelphians and lost two-to-one. more widely known figures. Gallatin preached to Americansthat any government must In New Hampshire, an outright Tory, Joshua Atherton, be oppressive, and it was better to leave the world's serious led the fightagainst ratification. The Constitution would give affairs to be handled by powerful private interests, such as Congress the right to outlaw the slave trade beginning in by the merchant oligarchs running Switzerland. He formu­ 1808; but Atherton, who had sided with the British army lated the economic theories which were put forward against during the war, had suddenly become so freedom-lovingthat the administration of President George Washington. As U . S. he demanded the national government not be formed. This Treasury Secretary from 1801 to 1813, in a government whose was to be the cry of British-allied Boston abolitionists years establishment he had opposed, Gallatin responded to British later: Let the slave-owners secede from the Union, and keep naval assaults and terrorismby systematically dissolving the their slaves-out of the Union! Nationalists fromFranklin to Clay to Lincoln fought for a strong, lawful Union in which slavery would gradually be stifled by the growth of technol­ ogy and a skilled urban population. Criminals. oligarchs. and Soviet Justice Thurgood Marshall's attack on the Constitution is agents now attack our country 's in the tradition of the anti-Unionists, the Tories, and the agit­ basic law as inexpedient. or prop Communist Party rhetoric of the 1950s. In Virginia, the opposition was led by Patrick Henry, a "opp ressive. " Abraham Lincoln man widely known among American patriots as a loud faker. answered a similar attack. In 1784, Henry had tried to reestablishthe Episcopal Church as part of the government of Virginia. Defeated in this by Thomas Jefferson and James Madison, Henry then tried to impose a tax to support all approved religions. Jefferson, U.S. armedfo rces. He is the forefather of the insane "Gramm­ aggravated by Patrick Henry's statist "religious" proposals, Rudman" austerity doctrine of the present day. wrote sarcastically to Madison, "What we have to do, I think, is devotedly to pray for his death." The victorious nationalists In the Virginia ratification convention, Patrick Henry The fight for ratification of the Constitution was run by tried a different rhetorical program from that of brother Ath­ the central leadership of the Revolution, based in Franklin's erton in New Hampshire. Henry warned the delegates that, Philadelphia. under the strong central government of the proposed Consti­ The Pennsylvania legislature, attempting to call a state tution, "They'll fr ee your niggersf" Slave-owner George ratificationconvention , was stalled when the Gallatin-Smilie Mason, who argued that the Constitution wasn't abolitionist forces staged a walkout and prevented a quorum. Pro-Con­ enough, threw consistency to the winds and complained that stitution laborers and tradesmen, incensed by this behavior, the Constitution would make it legal to tax slavery out of went to the houses of two of these anti-federalists, broke in, existence. and dragged them kicking and screaming back to the legis­ The chairman of the Virginia ratification convention, lature. Judge George Wythe, decided in 1806-at age 80-that a James Wilson, who had played a crucial role in shaping certain family of slaves should be declared free because the the most advanced features of democratic republican govern­ Constitution and the Bill of Rights had made slavery illegal. ment in the previous summer's Constitutional Convention, Viciously, personally attacked by Anglophile anti-nationalist went on to lead the republican forces at the Pennsylvania "legal experts," Wythe was immediately assassinated, along ratification convention. Robert Morris, Superintendent of with his freed slave and heir. Wythe had written the rules for Finances for the Revolution, and his assistant, Gouverneur the Constitutional Convention in Philadelphia, signed the Morris, who had written the Preamble to the Constitution, Declaration of Independence, taught law to John Marshall, conducted the behind-the-scenes leadership in the Pennsyl­ and served as stepfather to both Thomas Jefferson and Henry vania ratificationfight . Clay. Alexander Hamilton personally carried New York State The ratification convention in Pennsylvania was the first through to ratification. Hamilton's writing of the Federalist American theater of political operations for Swiss-immigrant Papers, with his allies James Madison and John Jay, gave aristocrat Albert Gallatin. His family had helped arrange for Americans at large the experience, unique in world history, the sale of Hessian mercenaries to King George III for the of analyzing and debating on their government before it had war against America. Now Gallatin ran the opposition to takeneff ect. Pennsylvania's ratification of the plan for an American na­ Hamilton's own pro-Constitution politicalbase was among tional government. Through his floor captain John Smilie, the working class voters of New York City; the opposition Gallatin and his western Pennsylvania machine battled Ben was strongest in upstate regions dominated by the old Dutch

EIR June 5, 1987 National 67 land barons of the Albany region. In the ratificationconvention , Hamilton faced down Gov. George Clinton, who was playing political games in support of the anti-nationalist organizing of John Lamb. Hamilton let it be known that if Clinton's forces stopped New York from Down To ratifying, New York City would secede from New York State and join the United States on its own, leaving the state poor and powerless. At this , Clinton's political patronage machine The Wire? crumbled and the nationalist victory was won. James Madison, at that point still a rock-hard nationalist, led the fightfor ratification in Virginia. Madison later would follow Jefferson into the pro-free-trade attacks on Hamilton Call for a quote on and Washington, in the Jeffersonian enthusiasm for the French Revolution. Later still, in his old age, Jefferson wrote to Lafayette that he knew the French anarchist "revolutionaries" BELDEN had been paid British agents; and he and Madison came back COOPER quality wire increasingly to the Hamiltonian economic viewpoint of the INDUSTRIES and cable. Founding Fathers . James Madison supervised the nationalist effort at the Virginia ratification convention, united, by means of con­ Shielded and unshielded stant express horses back and forth to New York, with his - cable for computers ally Hamilton. Hamilton had worked out the same close - instrumentation and control coordination with John Sullivan and John Langdon in New - electrical and electrical systems Hampshire, and with Rufus King in Boston. Robert Morris - plenums - fiber optics and GouverneurMorr is, leaders from the nationalists' head­ We Go to Great quarters in Philadelphia, personally came down to help out ' Lengths at the Virginia ratification convention. To Service Your Wire Needs. The Massachusetts ratification fight saw the state's old revolutionary leadership back in action. A sort of political ServIce We're15 What About Asingle source theater was pre-arranged. Paul Revere organized a boisterous electronics distributor stocking more than mob of citizens to appear before the home of Sam Adams, 100 prime lines of components hardware, demanding that Adams support the Constitution. Adams, as test equipment, and control devices for in­ the master of mass politics, felt he could not afford to appear to have decided too soon, in favor of the new government. dustrial and commercial application. But with the demonstration on his doorstep, Sam Adams said Write or Call Today for a he would "follow the will of the people." Adams went to the Free 500 Page Catalogue! egotistical John Hancock, told him that the world now waited to applaud Hancock's decisive choice, and won him over. Anti-constitutionalists were then outclassed at the Massachu­ setts ratificationconvention . The constitutional government, successfully ratified by the people of the 13 American states in 1787-88, is the fur­ thest advance of human liberty up to the presenttime . Crim­ inals, oligarchs, and Soviet agents now attack our country's basic law as inexpedient, or "oppressive." Abraham Lincoln INDUSTRIAL aLEC1 ADNICS answered a similar attack, speaking in Springfield, Illinois, June 26, 1857, on the subject of the Declaration of Indepen­ 100 N. Main dence, in words equally applicable to the Constitution: Dept. E "Its authors meant it to be, thank God, it is now proving Evansville, IN 47711 itself, a stumbling block to those who in after times might seek to tum a free people back into the hateful paths of U.S. Wats 800-457-3520 despotism. They knew the proneness of prosperity to breed Ind. Wats 800-742-3670 tyrants, and they meant that when such should reappear in Local 812-425-7201 this fair land and commence their vocation they should find Fax 812-465-4069 leftfor them at least one hard nut to crack."

68 National EIR June 5, 1987 Elephants & Donkeys by Kathleen Klenetsky

Gorbachov profile, they said, in favor committee on constitutional affairs,the of a born-again hawkishness, with senator has slated a series of hearings special emphasis on the "captive na­ on constitutional "reform," to hear tions" issue. The object would be to from Lloyd Cutler and other members increase his appeal among ethnic of Cutler's Committee on the Consti­ Americans, especially those hailing tutional Commission, expound upon from EasternEurope . Although a tra­ their recommendations for replacing Ted Kennedy builds ditionally Republican constituency, the Constitution with a parliamentary this important voter bloc has deserted form of government. presidential image the GOP en masse, in disgust at the Ted Kennedy has put his presidential Reagan administration's actions on the ambitions on permanent hold, main­ John Demjanjuk and Karl Linnas cas- Robertson roiled tains no interest in the 1988 Demo­ es. by not-so-holy wars cratic nomination, and has decided to It looks like Kennedy may have take on the role of party elder states­ launched his presidential bid in Pat Robertson's White House fanta­ man, instead. Right? If you believe Gdansk. With all signs pointing to a sies have come crashing up against the that, you could be in for a big surprise. brokered Democratic convention, the hard realities of the so-called Pearly­ During the last few months, Ted option becomes more plausible. gate scandal. has undertaken some intriguing jun­ Although Robertson himself has kets, which suggest that he's system­ not been directly involved in the in­ atically expanding his political base creasingly acrimonious cat-fight be­ for a possible presidential run. Simon's simple strategy tween TV evangelists Jim Bakker and Most interesting was his mid-May Senator Paul Simon, the Illinois Dem­ Jerry Falwell, the fact remains that trip to Poland. Flanked by Solidarity ocrat who claims to be the only true Bakker got his start in the lucrative leader Lech Walesa, Kennedy ad­ New Dealer among the pack of Dem­ field of TV ministry under Robert­ dressed a Solidarity rally in Gdansk. ocratic presidential hopefuls, intends son's tutelage. Invoking his brother John's famous to "ride the balanced-budget amend­ Robertson disclosed several weeks trip to Berlin, Kennedy told the cheer­ ment straight to the White House," back that contributions to his Chris­ ing crowd, "Jestem Polakiem" ("I am according to people familiar with his tian Broadcasting Network had fallen a Pole"). He praised Solidarity for campaign strategy. to their lowest level in four years, and fighting against "tyranny, repression, Simon, part of the hapless Adlai were not expected to rebound for sev­ and for human rights," asserted that Stevenson machine in Illinois, has eral months at least. "my family has had a special feeling been a longstanding proponent of a In a meeting with reporters May for your country," and that "we're balanced-budget amendment, and in­ 23, Robertson revealed that his presi­ having such a good time now, we're troduced a bill along these lines as his dential campaign has encountered un­ going to come back again and again first act uponbeing elected to the Sen­ expectedly rocky going, and that he and again. " ate . Aide Deborah Levy says that Si­ had decided to run a TV ad campaign Upon leaving Poland, Kennedy mon will introduce another version of later this year to counteract his nega­ flew to Rome to meet with the Polish the "bba" soon. tive image. Pope, and from therewas expected to Campaign issues adviser Paul Fu­ One measure of just how negative flyback home for a series of meeqngs riga reports that Simon will make the that image is, comes from a Gallup with Polish-American groups. balanced-budget amendment "a big Poll conducted in late April. The poll What makes all this particularly issue" in the '88 race. "He's really showed that 54% of Republican voters intriguing is the following: About a committed to balancing the budget; thought Robertson would make a year ago, EIR was told by several old he's a 'pay as you go Democrat,' and "poor" President, while only 15% Kennedy hands, that Teddy would run doesn't think we should add new ser­ thought he would do a good job. The for the Democratic nomination, no vices, unless you pay for them first." poll also showed that Robertson's per­ matter what he said in public. Kenne­ Simon may also clamber aboard sonal image and political stature had dy intended to change his image, the anti-Constitution bandwagon. As declined appreciably in the wake of dropping his super-liberal, I-Iove- chairman of the Senate Judiciary sub- the Pearlygate revelations.

EIR June 5, 1987 National 69 NationalNews

contact infections in three hospital workers . the Hemlock Society, which was referred to The proposal for AIDS testing in VA in the film repeatedly as "an organization in hospitals is part of a larger package that was L.A. that says it is okay to do it. Lots of Are Feds closing in expected to spark fierce debate at a Cabinet­ people do it. They will even send you a list level Domestic Policy Council meetingMay of what drugsto take andwhere toget them." on Washington mayor? 27, according to Times sources. The pro­ The friend decides to "help" after look­ Washington, D.C. Mayor Marion Barry, testing faction is led by Secretary of Edu­ ing into an intensive care ward and seeing a whose political machine stems from the cation William Bennett, advocating man­ comatose patient with shaved head, filled heyday of the "poverty pimps" during the datory AIDS tests for convicted criminals, with tubes, and surrounded by shrill beeps, 1960s and 19705, told a press conference aliens entering the United States, couples pulsatin8 monitors, and bizarresounds-all May 27 that he believes he is not the subject seeking marriage licenses, and hospital pa­ heightened dramatically for persuasive ef­ of a federal probe, although two of his assis­ tients, while the anti-testing faction, led by fect. tants have been indicted and eight have re­ Surgeon General Everett Koop, opposes signed during investigations by the FBI and mandatory testing, period. the U.S. Attorney forthe District, Joseph di Genova. David E. Rivers, Barry 's close friend and the head of Human Services,appears to have been "stung" by federal investigators Call for radars from whom he received gifts in exchange based in space for city contracts. The agents were informed TV networks feature A call for space-based radar systems has by one company that Rivers demanded kick­ euthanasia propaganda backs for a contract, and the FBI thereupon been issued by Gen. John Piotrowski, com­ mander of the North American Aerospace set up its own dummy company to bid on CBS television targeted doctors and modem Defense Command and the U.S. Space city contracts. medical technology as monsters in its Sun­ Command. In an interview at his headquar­ Barry himself was implicated in a drug day Night Movie May 24. "Baby Girl Scott" conviction case against a city worker and pits doctors who "play God" against two ters May 23, Piotrowski said: ''The goal is to track all aircraftfrom all potential aggres­ personal intimate, Karen Johnson; another parents whose child was born three months sor nations and know where they are at all of Barry's female associates was recently premature and with multiple disabilities. times. There's absolutely no question about found dead of a drug overdose in the apart­ The film is done from the standpoint of ment of Barry associate and city contractor parents who want their child disconnected it: The least expensive way of maintaining John Clyburn. Clyburn is involved in other from a life-saving respirator. Each scene of surveillance is from space. It's cheaper, and city-contract charges; and three other asso­ the infant's intensive care unit is presented it's ubiquitous; it's always there ." ciates are accused in kickbacks-for-contract with impending-doom sound effects remi­ He estimated a surveillance network of Dr. The cases. niscent of Frankenstein's laboratory . 12-15 radar satellites would cost between $6 mad scientists are, of course, neonatalo­ billion and $10 billion. gists, who battle all odds to save the child. Piotrowski said the Soviets have de­ They are accused of experimenting with hu­ ployed two types of satellites to watch the man beings, and are asked: "Are you trying Persian Gulf. One is the EORSAT (elec­ to prolong life, just to prove you can do it?" tronic ocean reconnaissance satellite) and ABC television, on the other hand, in­ the other RORSAT (radar ocean reconnais­ VA patients may be vited its views to commit suicide in "When sance satellite). the Time Comes," the network's Memorial Piotrowskialso said the Soviets' ASATs tested for AIDS Day broadcast. The filmwas done in collab­ have the capability of destroying U.S. sat­ The Reagan administration is considering a oration with the Hemlock Society, advo­ ellites within hours . ''They could poke our plan to testall Veterans Administration hos­ cates of "assisted suicide." eyes out," he said, "and at the same time pital patients for AIDS , reported the Wash­ The film is clearly designed to break their satellites would have free rein in tar­ ington Times May 27. The Times quotes a down viewers' opposition. A young woman geting our ships." They could then attack senior official saying the President could be­ with cancer reads about "assisted suicide in them from over the horizon with land-based, gin the testing in VA hospitals "with the "a women's magazine," and then pleads, 1,600-mile-range cruise missiles. "It's stroke ofa pen.They 'realready taking blood first, with her unwilling husband, then a best clearly evident to us that we would be giving from patients." friend, to help her kill herself "when the the Soviets a free ride in space in terms of The official added, "You've got to let · time comes" -before she gets hooked up to targeting our forces." the people taking care of patients know if a machine and becomes "not human." One of Piotrowski 's nightmares is that they're infected," noting reports of casual- All the "facts" in the movie came from the Russians would knockout U . S. satellites

70 National EIR June 5, 1987 Briefly

in a way that's indistinguishable from me­ American Way, The Lear dinner "isn't a chanical failure . "Not having an ASAT is fundraiser .... But it's a chance for Du­ • THE NATIONAL BANK of destabilizing," he added. kakis to meet people who already have met Washington, D.C. has fileda federal as a group with other Democratic candi­ lawsuit in Denver against Gary Hart. dates." Podesta is now a Dukakis "volun­ The bank is trying to collect more teer." than $500,000it claims Hartstill owes Jane Fonda, according to the Boston on a loan from his 1984 presidential Globe, had "little to say" afterDuka kis' pri­ Scientist: People want campaign. vate talk to the Hollywood Women's Polit­ more space activity ical Committee and declined to say whether • FBI AGENTS acrossthe country she would support him financially or politi­ "The American people are now telling opin­ have contacted scores of supporters cally after the withdrawal of her previous ion pollsters: 'We want more manned space of Democratic presidential candidate favorite, Gary Hart. programs, moreAmerican activity in space. ' Lyndon LaRo�che and publications Dukakis is viewed in some quarters as a The politician who decides in that direction associated wi$ him, and attempted stalking horse for Ted Kennedy. is going to pick up a lot of votes," U.S. to badger them into saying they had scientist Dr. Lowell Wood told the journal been "victims of fraud." "You may Space World in May . not think you were defrauded, but According to an account in today' s Dai­ you're not the expert," agents told ly Telegraph of London, Wood was "out­ stunned individuals. None of the per­ spoken" in his criticisms of the amateur, Gepbardt calls for sons visited SQ far , to EIR's knowl­ incompetent politicians who are now run­ edge, ever fileda complaint warrant­ ning NASA, who are not responding to the 'open mind' on Soviets ing the FBI visits. public mood. Asked about U.S. relations with the Soviet Telegraph science correspondent Adri­ Union during a meeting with Boston Globe • ST. CLARE'S Hospital in New an Berry states that there is growing "impa­ editors May 22, presidential aspirant Rep. York City may become the city's first tience" over NASA's overly cautious re­ Richard Gephardt (D-Mo.) said that it has hospital for the treatment of AIDS sponse to the challenge posed by the Soviet been "particularly harmful for the President victims under a plan disclosed May launch of the super-booster rocket Energia . to label them the evil empire ." 27 by state and federal health offi­ According to Berry , "many influential peo­ He said he would encourage Americans cials. St. Clare's, with 250 beds, pie . . . fear that the Russians will have built to "open their minds" to the Soviet Union, would be the largest AIDS hospital in huge space stations and a permanent colony because he believes that therecan be changes the country. on the Moon while the Americans remain in Soviet society and that protection of hu­ grounded by safety fears . As one scientist man rights will improve . "You can more • ALL POUCE in Washington, put it: 'They will soon own the whole sky successfully manage the relationship so you D.C. will have gloves and surgical , ,, from hereto the Moon. lessen the likelihood there will be a nuclear masks available to guard against ex­ war," he added. posure to the AIDS virus, police of­ Gephardt came under fire the same day ficials announced May 27. Vehicles from GOP aspirant Pete du Pont, who at­ used to transport prisoners or used by tacked his trade war legislation, calling it an crime scene technicians, also will Dukakis seeks example of "kamikaze economics." Du Pont carrydisposa ble uniforms for the of­ predicted that Gephardt's economics would ficers' use. Hollywood's support result in a loss 00.5 millionjobs nationally. Massachusetts governor, Swarthmore Col­ "Protectionism is not the answer to the trade • THE SUPREME Court's deci­ lege graduate, and Democratic presidential problem ....In fact, it would worsen the sion to allow ':preventive detention" contender Michael Dukakis was scrutinized very problem it promises to fix. It costs in solely on the basis of a prosecutor's by Hollywood notables, politicos, and mo­ terms of higher prices, reduced trade oppor­ argument that 'adefendant represents neybags toward the end of May when he tunities, the stifling of innovation, and the a "danger to the community" was at-' spoke at several fundraisers in Los Angeles. threatened return to economic depression." tacked on May 27 by the Baltimore Among those who attended a private He continued: "The Gephardt approach Sun, the Washington Post, and the dinner for Dukakis, hosted by Norman Lear, remindsme of the Smoot-Hawley Tariffbill New York Times, which variously the producerof the TV sitcom "Family Ties," enacted in the midst of the Great Depres­ characterized it as "police-state be­ were songwriters for Barbara Streisand. Said sion .... It amounts to a kamikaze eco­ havior," and "denial of due process Tony Podesta, ex-presidentof Lear's liberal nomics that would cause our economy to of law." advocacy organization, People for the self-destruct. "

EIR June 5, 1987 National 71 Editorial

The Russian R&D challenge

According to senior U.S. intelligence sources, the alar­ now doing in the domain of military-related R&D and ums have, at long last, been sounded in official Wash­ ensure that the United States also continue doing what ington , of the threat to United States national security it has been doing. posed by the fact that the Russians are rapidly outsrip­ Right now, there is nothing more important for the ping the U. S.A. in scientific research and devolopment United States than to reverse this 3-to- l Soviet advan­ progress. tage in R&D breakthroughs-and do so fast enough to Even though , still to this day , appLied Russian sci­ prevent the consolidation of Russian supremacy in the ence andtechnology lags significantly behind the United 1990s. States, the United States, in particular, faces certain In short, this is the only truly fundamental issue dramatic problems which it must address with a sense which will be determined by the direction and outcome of great urgency. of the 1988 U.S. presidential election. The policies of One of these problems is that in areas of military the United States in the areas of fundamental science, and strategic significance , applied Russian science and research, and development for the first halfof the next technology does not lag behind the United States as decade , will be determined by the agreements , "deals," much as it does in militarily non-significant areas. In and other such arrangements which ultimately deter­ fact, in numerous military fields, the Russians may well mine the selection of presidential candidates and, final­ be ahead . ly, the direction of the executive branch of government More alarming is the fact that the Soviet scientific for the next four or eight years . establishment, led by Academicians Y. Velikhov and This is the proper context of viewing the extraordi­ R. Sagdeev, is focusing on the military strategic signif­ nary candidacy of Lyndon LaRouche . There is a certain icance of new areas of scientific work , most notably in school of thought among senior administrators , which the domain of optical biophysics, electromagnetic ra­ argues that the critical "3-to- l " ratio cannot be reversed dio-frequency weaponry , "high energy" physics, and by the United States, unless the "LaRouche Reforms" plasma physics. Some of the more dangerous features in monetary , economic and industrial policy are finally of this Soviet work are presented in the pages of this implemented in some form . issue of the EIR . We shall have more to say on the We wish to point to another aspect of this matter: subject during the weeks ahead . Scientificand technological breakthroughs are willfully The most alarming aspect, however, is the asser­ caused by policy premeditation, by a certain unique , tion, circulating in intelligence community circles in identifiable, and knowable scientificmethod , the meth­ Washington, that at the present time , the Soviet Union od associated with the work of Leibniz, Gauss, Rie­ is outperforming the United States in basic R&D break­ mann, and Cantor, whose ancestor is that method which throughs at a ratio of 3-to- l . According to these reports , the Socrates of Plato's dialogues called the "method of a simple linear projection of this current trend into the my dialogues." future produces the conclusion that in not more than 10 True , without a returnof our population to the social years from now , the Soviet Union will have become practices and ethics of the pre-"post-industrial society" the world's single, unchallenged imperial superpower, period, no progress can be made in science and tech­ with the ability to dictate its will to all, including the nology . United States. A similar "paradigm shift" will be required, within According to this study , all Moscow needs to do to the ranks ofthe more thoughtful elements of the policy­ achieve this result is simply continue doing what it is shaping elites.

72 National EIR June 5, 1987 Now with 'Iran-gate,' you can't afford to wait for the best intelligence EIR can prpvide--��ediately. The economy is teetering at . the brink, and even the larg­ est American banks are shaking at their fo undations. We alert you to the key developments to watch closely, and transmit 10-20 concise and to-the-point bulletins Alert twice a week, including periodic reviews of debt, terror­ ism, and drugs. The "Alert" now puts special emphasis on economic developments. It reaches you by First Class mail twice a week (or more often, when the situation is hot). For Europe and the Middle East, the Confidential Alert Bulletin appears once a week in the fo rm of a one-page Alert telex message.

In the U. S.: Confidential Alert annual subscription $3,500. In Europe: Confidential Telex Alert annual subscription OM 12,000, includes Quarterly Economic Report Strategic Alert Newsletter (by mail) annual subscription OM 6,000 Alert Make checks payable to: EIR News Service P.o. Box 17390, Washington, D.C. 20041-0390 In Europe: EIR Nachrichtenagentur GmbH. Postfach 2308, Jl. 1 an+ Ootzheimerstr. 166, 0-6200 Wiesbaden, F.R.G.

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Foreign Rates Phone ( Central America. West Indies. Venezuela I Address ______and Colombia: 1 ':Ir. $450, 6 mo. $245, 1 3 mo. $135 1 City ------South America: . $470 , 6 mo. $255, 1 yr 1 State ______Zip ___ _ 3 mo. $140. I I Make checks payable to EIR News Service Inc .. Europe. Middle East. Africa: 1 yr. DM 1400, P.O. Box 17390. Washington. D.C. 2004 1- 6 mo. DM 750, 3 mo. DM 420. Payable in '1 0390. In Europe : EIR Nachrichtenagentur deutschemarks or other European currencies. 1 GmbH. Postfach 2308. Ootzheimerstrasse 166. I 62 Wiesbaden. Federal Republic of Germany. Asia and Oceania: 1 yr. $550, 6 mo. $300, 1 telephone (06121) 8840. 3 mo. $150. 1 ______------What EIR wrote Two years ago, in the summer of 1985, EIR wrote: "At present, the Soviet Union is in a full-scale pre-war mobilization , with the objective of acquiring all capabilities needed to survive and win a fu ll-scale thermonuclear-led assault against the United States, according to the Ogarkov Doctrinal War-Plan, by approx­ imately 1988. The economic mobilization in progress is best char­ acterized as an overlap of two complementary general policies . These two, overlaid, policies we have designated as Plan A and Plan B, respectively. "P Lan A, signifiesa new dimension of Soviet mobilization policy, which was made visible in Soviet war-planning during the 1983- 84 period, and which has been implemented on a massive and accelerating scale immediately following General Secretary Gor­ bachov's installation in office. Fairly described, Plan B represents a virtual revolution in Soviet economic policy of practice . The intent of its addition , is to forestall any U.S.A. move to a 'crash program' method of implementation of the Strategic Defense Initiative . It introduces to Soviet practice, 'science-driver crash-program' meth­ ods of rapid technological upshiftingof Soviet production in general. "What we have named PLan B, is based significantly on Moscow 's exhaustive study and monitoring of the writings of U.S. economist Lyndon H. LaRouche, Jr. ...The Soviets fe ar that the Reagan administration might adopt the reforms in economic policy proposed by LaRouche and his associat�s. Soviet planners associated with Marshal Nikolai Ogarkov and General Secretary Gorbachov , are purging the Soviet apparatus of the so-called 'Brezhnev Mafia,' at an accelerating rate , in the effort to bring a Soviet imitation of LaRouche's 'crash program' into effect."

What happened Two years later, on May 15, 1987, the Soviet Union launched the Energia super-booster rocket from the Baikonur Space Center in Kazakhstan, U.S.S.R., a breakthrough in the Soviet military space program with devastating implications concerning the race between the United States and U.S.S.R. to develop, test, and deploy space­ based anti-ballistic missile weapons. In a speech made at the space center on May 13, Gorbachov identified the term perestroika (re­ structuring)-widely misrepresented in the West as "liberaliza­ tion"-as the implementation of a pre-war plan. He said: "The perestroika begun in the country is like the bursting of a powerful rocket into space ....Everything must be completely altered in all directions, in the economic, social, and spiritual spheres. " In short, Plan B has gone into action-publicly .