GEORGE BUSH THE UNAUTHORIZED BIOGRAPHY
I I he surveys The truth about George Bush-in print for the first time: He's the "Emperor of the New World Order" and a mystery man, Until now, the public knew only what he chose to say about himself, in carefully managed media shows and commissioned puff pieces. This explosive new expose has finally broken through the wall of silence around George Bush. Ben Franklin Booksellers plus $3.50 shipping $ 20 and handling 107 South King Street Leesburg VA Visa and MasterCard accepted. 22075 Fax: (703) 777-8287 Virginia residents please add Ph (703) 777-3661 (800)-220-1037 4.5% sales tax.
u.s. environmental groups were given millions of dollars So, You Wish to in the past five years to spread scare stories about a Learn man-made ozone All About hole that woulq. cause cancer Economics? on Earth. by Lyndon H. LaRouche, Jr. Now, for only $15, you can learn the truth A text on elementary mathematical economics, by the about the ozone scare. world's leading economist. Find out why EIR was right. when everyone else was wrong.
Order from: THE HOLES IN Ben Franklin Booksellers THE OZONE SCARE \ 07 South King Street Leesburg VA 22075 Ph: (703) 777-3661. (800) 220-\ 037 Fax: (703) 777-8287 The Scientific Evidence That the Sky Isn't Falling plus $3.50 shipping and handling. Visa and .' $9.95 , MasterCard accepted. Virginia residents please add 4.5% Send checks or money orders (U,S, currency only) to sales tax. Infol'rnation on bulk rates and video tape available on request. 21 st Century Dept E $15 plus $3 shipping P,O. Box 16285, Washington, D,C" 20041. and handling Founder and Contributing Editor: Lynlion H. LaRouche. Jr. Editor: Nora Hamerman Managing Editors: John Sigerson. Susan Welsh From the Editor Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman. Melvin I Klenetsky. Antony Papert. Gerald Rose. Edward Spannaus. Nancy Spannaus. Webster Tarpley. One nasty irony of the 1992 presidential camp ign was President Carol White. Christopher White George Bush's repeated affirmation that the thr¢at� of nuclear war Science and Technology: Carol White Special Services: Richard Freeman had been banished from the fears of American children, thanks to Book Editor: Katherine Notley his administration's "success" in presiding over the fall of commu Advertising Director: Marsha Freeman Circulation Manager: Stanley Ezrol nism. The assertion was not challenged by his opponents. The danger
INTELLIGENCE DIRECTORS: is that Bill Clinton will continue the same foreign policy, or make it Agriculture: Marcia Merry worse_ Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg. This issue of EIR has been designed to counter the myth of the Paul Goldstein "death Economics: Christopher White of communism" with a sharp dose of re�lity _ Communism European Economics: William Engdahl has not been exorcised-especially not the Maoist model embodied Ibero-America: Robyn Quijano. Dennis Small in the holocaust of the Pol Pot regime in Cambo ia. Communism is Law: Edward Spannaus � Medicine: John Grauerholz. M.D. killing countless victims in the world's most popu ous nation, China. Russia and Eastern Europe: � Rachel Douglas. KOllstantill George In former Yugoslavia, it is the creed of Greater Serbian aggression Special Projects: Mark Burdmall against its hapless neighbors Croatia and Bosnia: In South America United States: Kathleell Klenetsky it is spreading from Peru throughout the Andean Spine, thanks to INTERNATIONAL BUREAUS: Bangkok: Pakdee Tanapura. Sophie Tanapura U _S. backing for "democracy" for terrorists and against the national Bogota: Jose Restrepo militaries_ Bonn: George Gregory. Rainer Apel Copenhagen: Poul Rasmussen In the Feature, our investigators document h
Postmaster: Send all address changes to EIR. P.O. Box 17390. Washington. D.C. 20041-0390. •
ITillContents ) .; , 7
Interviews Reviews Economics
27 Moise Twala 52 Spanning the species: the 4 AIDS breakthrough gets The chainnanof the Returned inhuman world of nod from U.S. government Exiles' Coordinating Committee in Harriman Washington has been forced to South Africa, Mr. Twala describes Spanning the Century: The Life of recognize powerful independent the hideous actions taken by the w. Averell Harriman 1891-1986, evid¢nce continningthe report from security officersof the African by Rudy Abramson. Kenya that interferon can help National Congress against the AID$ sufferers. party's dissidents. 55 Unique view of JFK , assassination 6 In Asia ' AIDS is slowly 39 Maitre Claude Pernet JFK: The CIA , Vietnam and the taking control of society' A French trial lawyer and professor Plot to Assassinate John F. of internationallaw , Maitre Pemet Kennedy, by L. Fletcher Prouty . was an observer fot several days at 8 IMF policy kills Argentine the scandalous trial in Jordan of retirees parliamentarian Laith Shubeilat. 57 A grand idea has mixed results 9 Currency Rates Complete Songs, The Hyperion Schubert Edition. Departments 10 'China model' a la Bukharin is no alternative 59 Bournonville: the great to the IMF 16 Report from Bonn nonconformist Bonn may be facing another Bournonvilleana, edited by M. Weimar. Hallar and A. Scavenius. 13 New austerity program begins in Australia
19 Australia Dossier 60 Malthusians' new book is 15 U.S. Unemployment Hetherington targets freetrade. beyond the limits of Coverup credibility 47 Andean Report Beyond the Limits: Confronting Peru under "democratic" assault. Global Collapse, Envisioning a 17 B8Jlking Sustainable Future, by Donella H. First City Texas fails, again. 48 Dateline Mexico Meadows, Dennis L. Meadows, Who will rule Mexico? and Jf/lrgenRanders . 18 Ag�culture Bad weather hinders U.S. com 49 Panama Report harvest. Plans to abolish Annymay be defeated. Photo credits: Cover, EIRNS. 20 Business Briefs Page II, Unicef. Page 23, Stuart 69 Letters to the Editor Lewis. Page 54, ©Rudy Unfair to the Confederacy? Abramson. Page 45, Javier Almario. 72 Editorial A new branch of science is born. Volume 19, Number45j November 13, 1992
JJ
Feature International National
32 New push for 'Greater 62 Depression defeated Bush; Serbia' backed by United Clinton will be next Nations Clinton will be coming to Italian journalist Maurizio Blondet Washington with the support of less calls this "the final implementation than half of the voting population. of the secret master plan prepared He has no mandate to govern, and by the Yugoslavian Army many if he does not deliver on his years ago." promise to create jobs, he will soon be facing the same popular wrath Devastated Phnom Penh, the capital of Cambodia, 34 Schiller Institute meets in that booted Bush from office. after the Khmer Rouge had killed 40% of its people. Those same Cambodian communists trained their Af Moscow, poses alternative rican National Congress counterparts in torture, which to IMF austerity 64 LaRouche candidates: is now being applied in South Africa. Helga Zepp-LaRouche sent a movement of principle message to the institute's first-ever In a major victory for decency, the 22 The ANC leads South conference in the Russian capital referendum which would have Africa's plunge into war and posed the LaRouche plan for imposed the death penalty in Nelson Mandela's revelation that Eurasian-wide economic Washington, D.C. was defeated leaders of his African National development. nearly 2-1-after opposition was' Congress have engaged in torture of galvanized by the LaRouche-Bevel their own members has shocked the 35 Russian crisis heads toward presidential campaign. world. Despite Mandela's stated a power shift desires or efforts, the promotion of 65 Californians defeat 'aid in such violence is central to the 36 Middle East Institute dying' plan ANC's entire strategy to seize conference targets power in South Africa. 'economic nationalism' 66 Movement to topple KKK masonic monument 27 ANC dissident tells of 38 LaRouche warns: Shubeilat growing rapidly torture and terror case is part of scheme to District of Columbia Councilman An interview with Moise Twala. break Jordan William P. Lightfoot's resolution to take down th� statue of Albert Pike 29 Mr. 'Democratizer' 39 'Shubeilat trial is a travesty labels the statJIe as "an insult to Samuel Huntington primes of justice' humanity." South Africa for fascism An interview with Maitre Claude Pernet. 68 Iran-Contt-a was 'kiss of death' for Bush 41 Salvadoran 'peace plan' breaks down 70 National News
42 U.S. policy on hemispheric security Washington wants to give the OAS "blue helmet" powers to enforce its new world order on lbero-America. From an EIR policy memorandum.
46 Japan's party fissure threatens economy
50 International Intelligence �TIillEconomics
AIDSbr eakthrough gets nod from government u.S. I by Dr. Ernest Schapiro
A major breakthrough in the fight against AIDS occurred on Present at the conference were representatives of some Oct. 26, as a conference in Washington, D.C. to evaluate divisions of the NIH, the president and several other officials low-dose, orally administered interferon as AIDS therapy was of the NMA, and the head of the federal Food and Drug jointly sponsored by the Division of AIDS , National Institute Administration (FDA). District of Columbia Health Com on Allergy and Infectious Diseases, a division of the National missioner Dr. Mohammad N. Akhter was present and made Institutes of Health (NIH), and by the National Medical Asso some remarks. Also in atten��lDce were infectious disease ciation (NMA), a group which represents black physicians specialists from some of the ,area teaching hospitals such across the United States. This means that, despite heavy resis as Howard University and Johns Hopkins. Notable was the tance, the U. S. governmenthas been forced to recognize that absence of the Atlanta, Georgi� Centers for Disease Control. there is now powerful independent evidence confirming the Also absent was Dr. David Koech from K�nya who had ' original reportfrom Kenya in 1 990 that low-dosage, oral inter conducted the original study. Koech was informed of the feron can rapidly restore AIDS sufferers to normal life func conference only a few days iri advance. Speakers said this tioning and halt the progression of the disease. was typical of the sabotage of 1he work in progress. Recognition of a new AIDS therapy is welcome news, as the rate of AIDS spread is drastically outpacing all estimates Small dosages effective except those developed by EIR. A study released in August The first medical presenta�ion was given by Dr. Joseph by the Global AIDS Policy Coalition based at Harvard Uni Cummins, Ph.D., a veterinarilln and chairman of the board versity, for example, estimated that by the year 2000, up to of Amarillo Cell Culture Co., : Inc. in Amarillo, Texas. His 120 million people will be HIV -infected and 24 million adults company produces human interferon, which is used to treat and several million children will develop AIDS-I0 times acute viral and protozoan infections in a number of mam as many as today. mals, and he described its successful use in one chronic Interferon consists of a mixture of proteins which are disease, feline (cat) leukemia. Cummins stressed two points. produced by certain cells in response to viral infection. It is First, the dose which is effective is very tiny compared to the believed that, in addition to certain direct anti-viral actions, dosage given by injection for the human diseases for which interferon also acts on the immune system so as to improve the FDA has approved its use. Moreover, he said, the effec its functioning. Interferon can now be produced commercial tive dose falls within a narrow range, and exceeding the range ly in laboratories from living cells in a number of ways. results in a falloff of benefit. Second, the interferon must be The different preparations are not equivalent, however, and given by mouth. With animals, this means either that its therefore not equally potent. They are being used to treat mouth is forced open and the medicine squirted in, or, in infectious diseases and cancers in humans and animals, for certain situations, it is added to the feed . If the dose is injected example, certain forms of chronic viral hepatitis and certain under the skin or if is placed directly' into the stomach or kidney cancers. rumen, there is no benefit.
4 Economics i EIR November 13, 1992 Dr. Abdul Alim Muhammad and Dr. Barbara Justice, are not necessarily alike. He said that we.in fact do not know both of whom are medical doctors, presented data for the how oral interferon works. So far, it d6es not appear to work course of treatment over three months in 50 patients treated by being absorbed into the bloodstrea1ll. We are faced with in New York City and Washington, D.C. All patients re a phenomenon which requires a great �eal of investigation. ceived oral interferon in low dosage, and the medication was He added that penicillin became an accepted therapy for allowed to dissolve in the mouth. Patients were instructed streptococcus infections without controlled studies because not to eat or drink for 30 minutes before taking the medica the drug was so obviously beneficial. tion, which was taken an hour before bedtime. After three Dr. Justice, who runs an AIDS clinic in New York City, months, 82% had improved symptom scores, 10% stayed the gave a moving account of how , upon her discovery of a same, and only 8% declined. All of the patients' sign scores successful new AIDS treatment in Kenya in 1990, she took improved, 78% no longer exhibiting any signs, 82% gained time out from her surgical practice to go to Kenya. There, weight, and only 18% lost weight. Most striking, during this she attended a mass meeting address�d by President Daniel period there were no opportunistic infections. Opportunistic arap Moi, in which he announced to the world that a dramatic infections are a host of viral, fungal, parasitic, and bacterial breakthrough had been achieved at tile Kenya Medical Re infections which attack immune-deficientpeople . search Institute, and a scientic conference. She was so moved Dr. Muhammad, a neurosurgeon who practiced in Wash that she decided to stay for several weeks until she had been ington and opened an AIDS treatment clinic after learning trained in Dr. Koech's method. of the successful AIDS treatment pioneered in Kenya (his medical practice is now limited to the Abundant LifeClinic) , Where do we go from here? prefaced his medical report with some pointed comments. The successful treatment programs which are now ongo The holding of this meeting represents a thrust by the black ing in several African centers and the U.S. clinics cited, community. We as a group, he said, pay taxes and are entitled should justify a crash program to treat all afflicted people. to medical benefits. Yet, where AIDS is concerned, all we But will this in fact be done? Many years ago, independent get is condoms, free needles, and a few highly toxic AIDS presidential candidate Lyndon LaRouche warned that the drugs. We would be remiss, he said, if we did not mention prevailing genocidal policy toward Africa meant that were "the 'G' word," i.e., genocide. He told the audience that an AIDS treatment to become available, it would not be used there is a widespread perception in the black community that in Africa. This prevailing policy cannotbe allowed to stand. AIDS is being used as a way of exterminating black people, Once the issue of the efficacy of the treatment is settled, and he reminded them that black people remember the that of cost undoubtedly will be raised. However, interferon Tuskegee syphilis experiments. He called attention to an is already far cheaper than the highly toxic drugs such as insert in the conference packet written by the NIH, entitled AZT. The cost of treating all the AIDS-infected people in "Interim Report: Low-Dose Oral Interferon Alpha as a Thera Africa would be only a fraction of the cost of the Persian py for Human Immunodeficiency Virus Infection (HIV-l): Gulf war. It should be done in the context of putting in place Completed and On-Going Clinical Trials." It included sum a permanent health care delivery system in Africa. This must maries of interferon trials for AIDS in different countries, and include, where possible, a full survey of the burden of infec most of them reported negative results. The report concluded: tious and nutritional diseases afflictingAfric ans. Such a pro "Pending the availability of definitivedata from the ongoing gram will force the hand of westel1ll governments. If it is WHOIGPA [World Health Organization/Global Policy on worth the effort to eradicate AIDS, then it must be worth it AIDS]-sponsored study and other recent clinical trials, HIV to stop mass starvation permanently as well. infected patients should be encouraged to use therapies In all of his writings on Third World development, whose efficacies have been clearly demonstrated in properly LaRouche has stressed that every country without exception conducted, controlled clinical trials." must develop in at least some area of scientific research the The report, he said, cast doubt on the very premise of all most advanced capability in the world. The example of the of the successes to date by saying: "Interferons are generally Kenyan breakthrough proves that LaRouche's approach is not believed to be orally bioavailable, and are rapidly dena the correct one, and puts to shame the infamous quote of the tured [inactivated] upon contact with gastric [stomach] secre racist Sen. Daniel Patrick Moynihan (D-N.Y.), the former tions since they are proteins. According to Amarillo Cell ambassador to India who said India's principal export is in Culture representatives, an oral receptor [cell surface compo fectious diseases. We can also point to the recent develop nent which selectively binds a molecule] for Interferon Alpha ment in Colombia of the first succ¢ssful malaria vaccine. has not been isolated to date, although further research is There are many infectious diseases in the developing sector anticipated in this area." for which good treatments remain to be found. Rather than Dr. Muhammad pointed out that oral interferon is not to simply hoping that western pharma¢eutical companies will be drunk or swallowed. Rather, it has to dissolve in the benevolently develop them, developipg countries also should mouth. Also differentcommercial preparations of interferon be aided to set up their own research programs.
EIR November 13, 1992 Economics 5 In Asia, 'AIDS is slowly taking control of society' by Mary Burdman
By the year 2000, a majority of the world's AIDS victims Asians are already AIDS-infected, and that, of the over 1 projected by then to be 40 million AIDS-infected people and million adults newly infected Wlith HIV in the past 10 months, 10 million with the full-blown disease-will be Asians, the one-quarter are in the Asia-Pacificregion , most in South and Asian Development Bank reported in its 1992 development Southeast Asia. There is "moQnting apprehension about the outlook survey published this summer. The ADB survey growing pandemic in South and Southeast Asia," WHO re stated that in some parts of Asia, "the population growth rate ported. The Asian region has over twice as many adults will either stagnate or fall, especially as the proportion of as sub-Saharan Africa, and "jUl even bigger potential for infected young women rises," due to AIDS-a situation now epidemic spread." only seen in Africa. AIDS, worst now in Thailand and India, AIDS was firstdetected in the Pacificin 1982 in Austra is a disease of poverty in Asia as in Africa. "The poor, lia. WHO reported at its September Western Pacificregional because of lack of alternative job opportunities, are over conference that there are two f.ctors causing alarm: the "ex represented in the commercial sex industry. Intravenous drug tremely high rate of sexually transmitted diseases" in Asia, users also come mainly from low-income groups with limited and the expansion of drug use. HIV infection has "exploded" education," the ADB reported. These people are "also those in Thailand, spreading from drQg users and female prostitutes who are the most ill-equipped to handle the effects of the to the general population in th� last year. In 1987, less than disease once infected." The World Health Organization 1 % of drug users and female prostitutes were infected; by (WHO) reports that developing countries account for over mid- 1990, over 50% of drug �sers and 30-40% of female 90% of all new HIV infections. prostitutes were infected. In the city ofChiangmai, the infec Carl-Erik Wiberg, a U.N. Development Program region tion rate among poorer prostit�es is over 70%. al representative in Kuala Lumpur, Malaysia, said that the The epidemic is spilling ower to the rest of the region. AIDS pandemic will have a "tremendous social and econom Malaysia now has a high percentage of infected intravenous ic impact" in Asia, putting big strains on family life, public drug users in the states bordering Thailand, and the infection health services, and economies, as increasing numbers of is spreading. Already two yeaq; ago, the Malaysian govern victims must stop work and require treatment. ment began putting up huge sikns on the border warning of In Washington this summer, Dr. Michael Merson, direc the dangers of AIDS. tor of the AIDS program for the WHO, said that now "the The trail of drugs from the opium-producing "Golden Tri pandemic is spreading as fast" in South and Southeast Asia angle" in the Southeast Asian highlands is also now becoming "as it was a decade ago in sub-Saharan Africa." With the a trail for AIDS infection. In the province of Yunnan, China, speed at which AIDS is spreading in Asia, and the population which borders Burma, Laos, and Vietnam, the government density there, "we are expecting that some time in the mid has already detected over 500 AIDS-infected people among to late- 1990s, more Asians will be newly infected each year drug users. The AIDS trail follbws the two drugtrails out of than Africans." Africa has 6.5 million people AIDS infected, the Golden Triangle: one through southern China to Hong followed by North America and South America, each conti Kong, the other through Burm. to Thailand and Malaysia. nent with over 1 million infected. Reports of the current number of AIDS infected in Asia Disaster in Thailand vary. A.N. Malaviya, the head of the All India Institute of The epicenter of AIDS in; Asia, Thailand, could have Medical Science, told United News of India on Oct. 29 that 10% of its population (55 million people) AIDS infected by some 1.5 million people in the Asia-Pacificregion are AIDS the year 2000, Newsweek International reported in its June infected, and approximately 2,000 more are contracting it 30 issue. AIDS experts at a (;J.N. Development Program every day. "Unless the AIDS epidemic is controlled immedi sponsored conference on AIDS in Kunming, China in late ately, this region will suffer more than any other part of the September, described Thailand as a country where, like world," Malaviya stated. Uganda, "AIDS is slowly taking control of society, " Reuters The WHO reported in February that at least 1 million reported. The WHO estimates that 2-4 million Thais will be
6 Economics EIR November 13, 1992 infected by 2000, over 50% of them women, but a study by it is 35%. In the state of Manipur, about 25% of some 40,000 the Harvard University InternationalAIDS Center says these drug addicts are infected. AIDS is alsp spread by the health figures are too low. A report by Rep. Jim McDermott (D system. Many laboratories routinely I re-use needles when Wash.) to the U. S. Congress, entitled "On the AIDS Epidem collecting blood. Impoverished Indi�ns regularly sell their ic in Asia," said the figureby 2000 will be 3-6 million. blood to earn money; in a random test of blood supplies in While AIDS was only first diagnosed in Thailand in New Delhi last year, 499 units were f EIR November 13, 1992 Economics 7 formulated an economic 'adj ustment' policy which trans lates into desperation, misery. hunger, and unemployment for millions of people; and, because of its permanence and acuteness, causes mental pertqrbations which cause its vic tims to make fatal decisions, stichas suicide, often accompa nied by elimination of their families, as a complement to IMFpolicy kills that tragic decision." As one retiree commente(l to C larin during a protest Argentine retirees demonstration, "You don't have to be a psychologist to realize that people kill them$elves because the President has betrayed them." Pedro Furtivo, vice president of the by Gerardo Teran Canal Republican Confederation Representing Retiree Organiza tions, stated on Sept. 11 that "here are many people on the On Oct. 27, the Buenos Aires daily El Clarin published the verge of suicide ....Many r¢tired couples can't even pay shocking report that during the previous 60 days, over 26 for a shack in a slum . . ..Marry more people are dying than retirees had committed suicide. Of those 26, nine had oc what the press reports." curred in the previous 10 days. These grisly statistics bring to over 500 the number of retirees who have committed sui A deliberate policy cide in Argentina during the past year, out of desperation There are two key aspects; to the pensioner problem in over the economic conditions in which they were forced to Argentina. One is an enormous accumulated debt of the live. Twenty of the last 26 were men, six were women, and pension system built up over the last several years, which most of them were over 80 years old. now amounts to $7 billion; second, the average pension Clarfn reported that "some shot themselves in the head, amounts to $150 in a country where the average monthly others threw themselves in front oftrains or subway cars; four market basket costs $900. hanged themselves with sheets and ropes, and two jumped off As it has done in all other areas of social policy, the buildings. . .. Several left written notes and others died government has subordinated pensioner needs to condition holding their last pension check stub." Neighbors of one man alities set by foreign creditors. In December 1991, it post who had killed himself told the paper, "There's nothing to poned bonus payments that Wiere supposed to go to some investigate in Don Felipe's death. He killed himself before 3.2 million pensioners, in ori:ler to "balance the books" hunger and sadness killed him. He didn't even have money and guarantee the budget surplus which the IMF had de to buy an aspirin." manded. In January of this year, the !governmentpromised to pay Suit charges Menem and Cavallo some of the accumulated deb� through issuance of special with murder state bonds known by the term Bocon, to mature in five The cause of this rash of suicides-more accurately, years. Many pensioners woul4 be long buried before they genocide-is found in the economic austerity policies of the could cash in the bonds, and t.,day, these are negotiated in International Monetary Fund (IMF), which the government the market at less than 50% of their nominal value. of President Carlos Menem and his Finance Minister Domin In April, the government decided to deal with the prob go Cavallo have so mercilessly applied over the past three lem by promising to take 15% of the budgeted funds which years. the central government shares with the provinces, and in The government's cold-blooded manner of dealing with crease monthly pension payments by an average of 70-80%. pensioners has driven Dr. Walter Beveraggi Allende, a In August, the provincial governments decided to impose prominent lawyer and nationalist, to file a criminal suit the necessary austerity to make the 15% available. But then against President Menem and Finance Minister Cavallo for the Menem government suddenly announced that only 1.2 what he defines as "preter-intentional homicide"-that is, million pensioners of the total $.2 million would be eligible homicide resulting from application of their economic policy for the increase, callously excluding the remaining 2.1 regardless of stated intentions. The suit was filedon behalf million. of an Army non-commissioned officer who killed his six Sixty-nine percent of the country's pensioners are con children, his wife, and then himself, and 17 retirees who, sidered to be "elderly." The government reasons that the "in acts of desperation, ended their lives." 82% increase in fact translate� into an average increase of According to the Oct. 27 La Prensa, Dr. Beveraggi 30-50%. This means that retired state workers will only charges in his suit that "the basis for my accusation consists receive $180 monthly, while retliredindust rial or commercial in the fact that the government, led by Menem and Cavallo, workers, whose pensions come from a separate fund, will lacking the fitness required by the national Constitution, has get $200. Organizations repres¢nting pensioner interests es- 8 Economics EIR November 13, 1992 timate that a minimum of $450 monthly is required for physical survival. Currency Rates· Subsequently, the government introduced legislation to privatize the state oil company Yacimientos Petroliferos The dollar in deutschemarks: Fiscales (YPF), which included a clause stating that part of New York late afternoonfixing the debt owed to pensioners 85 years of age and above, an amount totaling $300 million, would be paid with a portion 1.70 I of funds derived from the privatization. However, after the Argentine Congress approved the legislation, President 1.60 Menem vetoed that clause, alleging that "the state is in no II I � condition to allocate $300 million for the 240,000 pensioners 1.50 "..V-- above 85 years of age." The government then decided to IY"" l"'- use 30% of the funds resulting from the privatization to 1.40 ." V repurchase the Bocon bonds, and pay the retirees over 85 1.30 with these. 9/16 9/23 9/30 10107 10/14 10121 10/28 1114 The State Social Security Administration, which is in charge of raising revenues for pensions, actually increased The dollar in yen its revenues by 47% last year. Nonetheless, as reported by New York late afternoonfixing the Sept. 15 edition of the daily Pagina 12, the head of that entity, Arnal Cirilino, stated that "for now we've cleaned 140 up the system financially . . . but the final stabilization will only be achieved in the year 2020." By then, today's 130 pensioners will be dead. 120 � - .- 'A damned dwarf' 110 For the past year, hundreds of retirees have gathered every Wednesday in front of the National Congress to protest 100 this policy of genocide. Carrying drums and a huge crucifix, 9/16 9/23 9/30 10/07 10/14 10/21 10/28 1114 those people who helped build Argentina as a nation when The British pound in dollars they were working productively now confront the police I New York late afternoonfixing with eggs, sticks, and stones. Police have cordoned off the area where the protesters gather to demand passage of 1.80 legislation which could alleviate their anguished situation. At the last demonstration on Oct. 21, over 3,000 people 1.70 "- .- . gathered carrying signs which read "Corrupt Menem, traitor, r\Y J � liar, damned dwarf. ...Menem you're a traitor, a bastard. 1.60 � ... No to genocide, we want to live with dignity ... . .� "- 1.50 '" Damned egomaniac, you'll never be granted mercy ... . Caligula's [Menem's1 dreams are fu lfilled, the retirees are 1.40 ! killing themselves." 9/16 9/23 9/30 10/07 10ti4 10121 10/28 11/4 This demonstration of rage has spurred the government into action, largely due to concern "over the political cost The dollar in Swiss francs of the critical pensioner situation," according to the Oct. New York late afternoonfixing 28 issue of Clarin. Menem called an extraordinary cabinet i 1.40 meeting a day earlier in which he demanded "concrete an , swers" to what he characterized as "the government's great 1.30 - ./ r-' est concern." However, the only solution presented thus far ... ./ is the creation of a special secretariat which will deal with 1.20 ""..- the problems of the "Third Age"-pensioners. A decision has been made to grant $50--a pittance-to the poorest 1.10 retirees, and pay Bocon bonds to the most elderly. Social Action Minister Julio Cesar Araoz insisted that the President 1.00 would name a person of "great social sensitivity" to run the 9/16 9/23 9/30 10/07 10(14 10121 10/28 11/4 agency. EIR November 13, 1992 Economics 9 'China model' a la Bukharin is no alternative to the IMF by MaryBurdman Russian and Ukrainian leaders are endorsing what they call the peasants. Additionally, there was the Feation of free the "China model" as an alternativeto the chaos unleashed in economic zones," which he said "could be created in Crimea, their economies by the application of InternationalMonetary Odessa, the Transcarpathians.'r Fund (IMF) shock therapy policies. Already in spring 1991, Similarly, on Oct. 31, UkrainianPresident Leonid Krav leaders of the then-Soviet Union were praising Chinese eco chuk, during a pre ss conferenCf:e in Beijing while on a vi,sit nomic methods, comparing them favorably to those of the to China which is expected to result in increased military West. Then-Deputy General Secretary of the Soviet Commu sales, said, "I have great respectfor the effortsofthe Chinese nist Party Central Committee Vladimir Ivashko, in Beijing Communist Party on economic reform." in February 1991, announced on his returnto Moscow: "We should take a closer look at China, at its experiences, includ What is the 'China model'? ing its economic experiences both positive and negative, The "China model" is hard1y any positive alternativefor and not at the West, as some of our economists mistakenly those seeking a way out of the :International Monetary F�nd believed." The reason for the attractiveness of China's econ trap. Deng Xiaoping readily acknowledges that his reforms, omy then became clearer: Beijing granted the U.S. S. R. cred which are a policy of "feeliI1lg our way" rather than any it worth 1 billion Swiss francs to purchase Chinese food and overall strategy to deal with �hina's enormous economic other consumer goods, which Ivashko called "moral support problems, have three essential �omponents: for our country at a crucial moment in our history." • a police state apparatus tlilatap pears to maintain politi This past February, the head of the Community of Inde cal stability; pendent States (CIS) military forces, General Samsonov, on • limited privatization of : agriculture from the Maoist a visit to Beijing, announced that he was deeply impressed commune system, which has ltd to an increase in food pro by China's "stability" and "economic growth." General Sam duction in the short to medium Iterm; and sonov also toured the Shenzhen Special Economic Zone • a very geographically re$tricted system of "free enter (SEZ) next to Hong Kong. This was the same SEZ where prise zones" or "special economic zones" along China's <;os Deng Xiaoping made his dramatic reappearance into Chinese tal and border areas. politics at the end of January to shore up the faction support This Chinese model is, in essence, a rewarmed version ing his 14-year-old "reform" policy. In the summer and au of Nikolai Bukharin's New Eq:momic Policy for the Soviet tumn, Russian "restorationist" leaders, including industrial Union in the 1920s, which had the same essential features lobby leader Arkady Volsky and Great Russia proponent of peasant family rather than �ollectivized agriculture, and Vladimir Zhirinovsky, both endorsed the "China model." concessions to foreign investors. The policy was thrown out Their support was reinforced by the enormous barter deal during Stalin's drive to build Spviet heavy industry. arranged in the spring, when a Chinese "entrepreneur" pulled But the Chinese model is Qnly a short-term negation of together 500 railway cars of food and texiles to trade for four other economic disasters. BeUing's current "stability" is Russian Tu-15M passenger jets. The total value of bartered based on the world's most repressive police state. The Gang goods was $3 13 million. of Ancients' determination to lceep power virtually guaran In October, newly elected Ukrainian Prime Minister Leo tees a chaotic succession crisis! when Deng, now 88, finally nid Kuchma told the French daily Le Figaro that he "very dies. much likes the Chinese variant," while criticizing the IMF The economic "reform," although it has maintained a shock therapy. Kuchma said, "I don't understand ...the level of food and consumer gOOds production that looks im privatization 'a la Polonaise,' it is like an earthquake." On pressive in Moscow, must inevitably collapse in on itself. China, he said, "It is not a matter of tanks. The primary Under Deng, investment in infntstructureand agriculturehas thing that the Chinese have done, is to distribute land to fallen even since the Maoist period. 10 Economics EIR November 13, 1992 The sharp economic division between rural and urban areas can be best measured in centuries of comparative devel opment. In the interior, some 35 million of China's most impoverished people have an annual income of less than $40; tens of millions more are illiterate, with at most a few years of education. An official China Daily commentary an nounced in August that China's "poor areas" must rely on themselves for development, because the "economically pressed," better-off regions of China cannot contribute to the impoverished ones. This situation has given rise to China's "ultimate weap on"-the massive 100 million-strong "blind current" of un employed men , women, and children who roam the country. Deng has repeatedly threatened Hong Kong, Southeast Asia, Japan, and even the United States, that if the communists lose their grip and China "falls into chaos," hundreds of millions of refugees will flood Asia and America; he made the threat again during his visit to Shenzhen in January. Agriculture The "household contract" system begun in 1978, which abolished Mao Zedong's disastrous communes, allows peas ants to grow their own crops on long-term leased plots of land, and contract for grain production with the state. This led to a big surge in food production from 1978 to the mid- 1980s, but this has since leveled off. With China's population China's peasantry, an economic growing by 15 million a year, grain production has actually who are looking to the policies of the Communists as a way out of their crisis, are in for a shock. China's investment in beenjalling, in per capita terms, since 1984. Only this year, infrastructure and agriculture is falling. and the most backward China finallyexpects to have actually raised per capita grain peasant regions, not part of the booming speculation in the free production. China loses almost 130 million tons of grain a enterprise zones, have been left to fend for themselves. year-about 30% of the crop--due to wastage from lack of storage, transport, and marketing facilities. In many provinc es, 40-70% of grain is "stored" outdoors, and China now has Ministry official stated, "not only need machinery driven by 45 billion kilograms of grain stored in the open air. Since mechanical or electrical power, bJt they also need imple 1949, a tiny $1.4 billion has been invested in building new ments driven by man or animal power." granaries, and some from the old Imperial period (before Investment in agriculture has fallen steadily from over 1911) are still in use. 1 0% of the total Chinese budget irl 1978 to approximately Despite the appearance of abundant food in the cities, 5% by the end of the 1980s. Even the breakup ofthe commu malnutrition remains a major problem in China. The United nes was one factor in this drop in investment: Under Mao, Nations reports that currently 41 % of Chinese children suffer the communes maintained vital irrigation and water-control from malnutrition, a rate worse than most nations in sub projects, but under the Deng "reforms," such maintenance Saharan Africa. was dropped, one of the contributing factors to the disastrous Agriculture remains extremely primitive, massively ex floods of summer 1991. As many as 800,000 people, not ploiting human labor. China, although a nuclear military 2,000, as Beijing has claimed, may have died, and 20% of power, remains a rural agricultural economy, with approxi the cropland was flooded, just w eks before the harvest. mately 75% of its 1.2 billion population still on the land. While the total land area under irrigation grew significantly Average annual income for farmers is 710 yuan, or $125. throughout the 1970s, in the 1980s this area decreased. The Oct. 14 China Daily announced a "drive to modernize A 1991 article from Beijing reported that the farm ma and mechanize agriculture-appropriate to China's specific chinery and tools from the communes were either distributed conditions." This means "applying different measures suited to the peasants or contracted to households. The machinery to different regions." In coming years, areas near Beijing, rapidly fell apart, because the peas�nts could no� afford ade Shanghai, and other large cities, as well as the border regions quate fuel or replacement parts. Now, the article reports, of Xinjiang and Heilongjiang, will be the first to realize "The greatest portion of the tracto�s in the rural areas are agricultural mechanization. "Other regions," an Agriculture being used for transportation. The farmers can only use ani- EIR November 13, 1992 Economics II mals and manual labor to do the farm work." The article from the interior every day. More than 250,000 arrive in estimated that the area of land subject to intensive cultivation Canton a month; 100,000 are reported to have arrived in the by machines is now only one-third of the previous amount. city of Xiamen, opposite Taiwan, and 50,000 in Wenzhou. The draconian austerity imposed on the entire nation in The railroad station in Guandong is completely blocked with 1988 took another big toll. Official Chinese reports admit people, with some 30,000 people living in and around the that rural incomes, which rose 15% per yearuntil 1984, are station. now decreasing. The 1989 bumper harvest caused incomes Beijing warns repeatedly that up to 1995 , China will have to drop 2% from 1988, the first negative growth since the to create at least 35 million new jobs in the cities and towns, reforms, and the trend continues. But the peasants are being and 78 million new jobs in the countryside-on top offinding more heavily taxed all the time. Direct taxation of the peas jobs for the already existing "surplus work force" of 10. mil antry is rising 10% faster per year than income is; when urban lion in the cities and 100 million in the countryside. food subsidies and other social costs are included, the rise is 22% higher per year. Supply costs rose 57.2% over 1985- Industry 90, while grain prices only rose 27.8% to 1988, and not at Chinese industry remains underdeveloped. Only 3% of all in 1989-90. the population constitute the Chinese "working class," yet, The 1988 austerity also caused the collapse of the rural even of the approximately 30, million workers in the state "enterprises"-sma ll, low-technology operations-which heavy industries, 15% have no,thing to do, emphasizing the had employed some of the 100- 150 million laborers who inefficiency ofthese industries. ,They retain their workplaces, cannot be absorbed even into China's primitive agriculture. but have no productive function in the factories. By 1995 , The economic cutbacks in the cities, where many of these the government itself predicts that up to 15 million urban surplus laborers had fled, sent millions of peasants back to workers will not have employment. The prevalenceof illiter the countryside. acy is a major problem. Even in Shanghai, China's biggest industrial city, some 60% of workers have only a rudimentary The 'Special Economic Zones' education, 36% are at least literate with some level of other Industrial production in the SEZs is focused on the pro education, and only 4% are genuine technical specialists. duction of very cheap, light consumer goods for export. Education and training are held:in very low esteem: In China, However, while China's share of world trade almost doubled a manual worker still earns more than an "intellectual," in the 1980s, the vast portion of its record $72 billion in meaning teachers, doctors, and engineers. exports was food and textiles. China had only 1.8% of total The other overall problem with the work force is the world exports in 1990, and its sale of mechanical and elec massive growth of the bureaucracy during the Deng years. tronic products was only 0.8% of the world market, putting The Chinese bureaucracy has more than doubled in the past China still behind such small nations as South Korea, Bel decade, from 13 million to 31 million, a far greater drain on gium, and Switzerland. In per capita value, China's annual the impoverished Chinese economythan industrial workers. exports amounted to $60; compared to $2,254 for Japan, Yet, on Oct. 20, the officialPeople 's Daily announced that $3,483 for the United States, and $11,8 00 forBe lgium. Even "worker welfare" cannot continue. "Some people think the for Guangdong, the most successful of China's provinces, Communist Party should cover every eventuality-life, the value of exports per capita is only $117. Compare this death, illness, housing-and they curse when they feel cov to the $10.50 for the interior province of Sichuan, with a erage is being lost. But without big changes and big upheav population of 100 million. als, society cannot make progress." Subsidies for "money Only a tiny percentage of the population works in the losing factories" will cease, People's Daily announced. SEZs, which are strictly limited geographically to China's There has been as little investment in industry as in the borders, especially on the east coast. While conditions in work force. The Nov. 1, 1991 People's Daily, in a report on these zones can only be compared to the sweatshops of the heavy industry, said, "No major technological transforma 19th century , wages of approximately $680 a year are vastly tion programs have been carried out, so their technology and higher than those in the countryside. Working hours in for equipment have become old and outdated and have lost their eign-owned factories in the SEZs are often 14 hours a day, competitiveness. In recent years, taxes and interest have seven days a week. Factory owners, mostly fromHong Kong squeezed out profits, and all solts of apportions, fundraising and Taiwan, claim that People's Republic of China (P.R.C.) programs, bonds, and expenses have chipped away at enter workers are so much less efficient than their Hong Kong prise profits. What is worse, China's current depreciation counterparts, that the long hours are necessary to achieve the policy not only uses a low dep�ciation rate, but also has not same results. taken into account the influence:of inflation on compensation Despite the conditions, tens of thousands of Chinese pour and the renewal of fixedassets . !' into the coastal cities from the interior looking for work. The Chinese Finance Ministry's response is to turn more Official press accounts report that 2,000 arrive in Shanghai to the development of SEZs and light industry. This past 12 Economics EIR November 13, 1992 spring, Chinese Deputy Finance Minister Zhang Youcai an nounced that China's state sector had registered a loss of 31 billion yuan (approximately $6 billion) and is getting into more debt all the time. He said that the heavy industries had onlY 'until 1995 to tum the situation around. Zhang said that New austeritypro gram even profitable enterprises were losing 10% per year due to in Australia production of shoddy goods. Yet, more economic zones are begins being set up along its Russian, Mongolian, and North Korean by Ve itch borders. The zones will be aimed at spurring Chinese trade Don with these countries as well as attracting foreign investment. All year, there have been regular reports of unrest In a series of measures aimed at introducing a free market including strikes, demonstrations, factory occupations, and regime in Australia, the newly elected Liberal government even attacks and killings of factory bosses-by China's gen of Victoria (Australia's second largest and most populous erally well-controlled work force. The government is trying state) has moved to abolish all basic 'Wagerates and working to implement an industrial "contract labor system" like that conditions and to restrict the activitiesof trade unions. Seven set up for agriculture after 1978, but the situation is much thousand public servants are to be immediately dismissed, more difficult. The industrial work force has been "pam taxes are to be increased, and government-owned. enterprises pered" by Chinese standards. Now, Beijing is warning that and hospitals will be privatized. "reforms" will mean mass layoffs, which means loss offood, After a decade in the opposition in both Victoria and housing, and medical and education benefits. At least 10 federally, the rabid free market-ori¢nted Liberal Party, led million jobs will be rationalized in the next five years, with by former InternationalMonetary Fund (IMP) executive Dr. up to 3 million workers losing their jobs this year. John Hewson, is now rushing to implement its agenda. The Just before the 14th Communist Party Congress this measures of the new Liberal government in Victoria are a month, the party leadership began circulating a document harbinger of things to come. Victoria is set to become Austra titled "Strengthening Police and Legal Work to Better Serve lia's first maquiladora, in imitation of the slave labor camps the Cause of Reform and Openness," which states that "the on the U.S.-Mexico border. Not surprisingly, Hewson has more we go for reform and opening, the more we have to pledged that if the Liberals also win the upcoming national strengthen police and legal work." election, he will bring Australia into the North American Free Trade Agreement (NAFfA). Transport These free marketeers pushing Ithe agenda in Victoria, China is again, as in 1988, running up against its tremen however, may have moved too quicklly. The threatened back dous shortfall of infrastructure. At that point, the govern lash from Victorian workers over these "reforms" couldjeop ment's response was a total shutdown of growth and cutoff ardize Hewson's chances to becom¢ prime minister of Aus of credit to prevent "overheating." The political response of tralia in the next federal election (due to be called no later the population was seen in Tiananmen Square the next than March 1993). spring. China's lack of transport, water, energy, and raw The new Liberal governmentth.t beat out the ruling La materials development once again threatens to choke the bor Party with 56.2% of the vote to L.abor's 43.8% on Oct. 4, economy. Even reputed economic "reformer" Zhu Rongji is now headed by Jeff Kennett, a foI1mer advertising industry constantly emphasizes the problems of China's transport net executive. Kennett has bragged priVlatelyabout his "Genghis work. The railroad network has only grown by 2.8% per Khan"-like beliefs and his intention of leaving his mark on year, while the economy is growing 10-20%. Rail construc politics. tion averaged over 900 kilometers a year until 1980, but since has stalled to just over 300, and investment in transport as a Attack on wages and labor percentage of the economy has fallen from 2.5% in the early Within three weeks of winning: office, the new govern 1970s to just 1 % now . Yet China remains with a very low ment moved to balance the state's finances with a "mini density of railroads to both population and land area, com budget." A number of revenue-raising taxes were introduced pared to even the former Soviet Union or India. Of new including a $100 tax on each hoqse. This latest measure construction, the much-emphasized 2,OOO-kilometer north is reminiscent of former British Prime Minister Margaret south railway, which will link Beijing with the south coast, Thatcher's infamous poll tax. To nd one's surprise, the Ken is being built primarily by manual labor. nett government moves have been isupported by the Rupert Of China's I billion kilometers of roads, only 25% are Murdoch and Conrad Black-controlled press in Victoria. paved, and only 4% are either first or second class. On the The mini-budget was immediately followed by an an roads, only 60% of transport is motorized-the rest being nouncement that a 17% bonus paid on all public service animal- or even human-powered. holiday pay was to be abolished. These steps were a soften- EIR November 13, 1992 Economics 13 ing-up for the next stage: the abolition of all state industrial governmenthas already developed a ruthless arrogance. Se pay awards. cret wage deals have been con�luded with senior public ser The anti-labor package introduced into Victoria's parlia vants. On the other hand, Kennett has created more positions ment sent shockwaves through the community. It is the for his own supporters. The minister who introduced the strongest attack on working conditions here for over 100 legislation to abolish wage awards was given an $8,000 pay years, since the depression of the 1890s. All minimum wage raise on the same day. Other Liberal politicians are to receive agreements and former entitlements such as extra pay for pay raises of up to $25,000. night and weekend work are abolished as of March 1, 1993. The real aim of this step is to force workers to negotiate work Cronyism will spread contracts directly with the employer. The new program in Victoria is but a dress rehearsal for The attempt to drive down wages is complemented by an similar action that will be taken if Hewson wins federal of attack on organized labor. Individual workers can be fined fice. Hewson has vowed to endlall Australian tariffs immedi $5 ,000 for breaching work contracts, and unions will not ately, to impose a 15% goods and service tax, deregulate all be recognized in the work-place negotiations. Compulsory labor conditions, and sell most governmentassets . In effect, unionism and "closed shops" will be outlawed. It will be the economic capacity of governmentis being stripped away. illegal to organize pickets at the work place with more than The justification for the Kennett "reforms" is that unions five people, and police attendance on picket lines will be and wages are a hinderance to growth and prosperity; that compulsory . Australia must become "competitive." All proposals to strike must hold a court -supervisedsecret The Kennett agenda is primarily pushed by the Western ballot, and each ballot will warnstrikers that "if you take part Mining Corp. (WMC) , which is a large bankroller of the in a strike or other industrial action, you may be in breach of Victorian Liberal Party. Its chief executive is Ray Evans, a your contract of employment." Strikes are not to last longer member of the anti-union H.l�. Nicholl Society and a free than fiveda ys. trade think-tank, the Institute of Public Affairs. Evans is also Further special legislation will enable the prime minister, a member of the Mont Pelerin Society. In 1990, Kennett, as in consultation with the governor, to declare certain indus leader of the Liberals in oppos.tion, made moves to SUpPOl1 tries as "vital industries" and to outlaw strike action com tariffs. The head of WMC, Hugh Morgan, claimed that Ken pletely. Workers will be fined $25,000 each for breaching nett was "splitting" the Libera) Party. Kennett soon backed the act. Unions can be fined$250,0 00. down and has not raised the issue of tariffs again. He has now moved quickly to endear himself with the New Right A general strike has been called which firmly controls the Liberal Party and is dedicated to Victorian unions have responded with a call for a general implementing IMF policies. As!was explained by the director strike on Nov. 10, and the federal Labor government plans of personnel at WMC, Barrie Purvis, the Kennett measures to challenge the Kennett measures in the High Court. Labor had simply not gone far enough! Party Prime Minister Paul Keating has stated he will attempt Throughout the 1980s, the Australian economy was to move workers out of state awards and into federal awards. moved in a free trade direction, primarily due to the deregula This is a clever move by Keating, as he can now appear as tion of the finance sector by then Treasurer and currentPrime the champion of workers. It was Keating who, as federal Minister Keating. The results?'The national debt rose from treasurer in the 1980s, functioned as a champion of the bank $5 billion to over $180 billion., Clearly, the next goal of the ers' interests by deregulating the financial sector. It is black New Right is to deregulate the labor market and to drive irony that he should now pose as a champion of ordinary wages down. Australians. Despite the apparent antagonism between the Labor Party The stage has been set for a period of unprecedented and the Liberal Party, within a $hort period of time Australia confrontation. When the measures were first announced, will have zero tariffs , a totally, deregulated wage structure, 2,000 unionists marched on the state parliament. John Half an unregulated banking sector, a floating exchange rate, and penny, a Moscow-trained former Communist Party member state and federal governmentswith minimal ability to maneu and now secretary of the local union movement, has warned ver and reconstruct an already �ick economy. The economic that "something will happen everyday from Nov. 10" (the measures now being championed by the Liberal government day of the proposed general strike). Halfpenny says Victoria in Victoria were tried at the beginning of the 1930s Great does not have enough jails to hold those who will protest. Depression. At that time, the Sank of England sent Sir Otto Recent reports indicate that a special anti-strike force of Vic Niemeyer to Australia to ensurethat English holders of Aus torian police is to be organized to control the strikers . tralian debt were paid. Niemeyer demanded balanced bud The speed with which the measures have been introduced gets, reduced wages, and the dismissal of public servants has caused some disquiet among the federal Liberals. With a precisely the same measures championed by the Kennett gov huge majority in both houses of state parliament, the Kennett ernment. 14 Economics EIR November 13, 1992 u.s. Unemployment Coverup 22% -r------�--�------Last� 3 months 17'5% 20% -+------�--��------17.4% 17.3% 18% -+------,�------�------�\_------� 17.2% Aug Sep Oct 16% -+------�------�._------�------��------��-- � 12'5% 14% -+���------I_��------��----�L-----�------��--�L----- 12.4% 12.3% 12O/o-+------#------�._--��------��.. - 12.2% Aug Sep Oct 10% -bf-----���------���------��L----- � 7'6% .... 8°k -+------i��------�------�._------_.-- .... 7.5% ...... 7.4% .... 6% -+--.r.�------��------��------���------��---- 7.3% Aug Sep Oct Data used for unpublished unemployment rates Explanatory Note (thousands) Civilian Part-time, Unpub- Unpub- In October, over 6.1 million jobless and 6.4 million more semi labor OffIcial Want a economic OffIcial IIshed IIshad employed people were ignoi-ed by the U.S. govemment's force unemployed lob now reasons U-5b rate Rate 1 Rate 2 Bureau of LaborStatistics In its calculation of the official (U-5b) Year (a) (b) (c) (d) ble (b+cYa (b+c+CIya unemployment rate. To bring, out the truth, EIR is publishing 1970 82,77t 4,093 3,88t 2. 198 4.9% 9.6% 12.3% the rates you would see if th� govemment didn't cover up. t971 84.382 5,016 4,423 2,452 5.9% 11.2% 14.1% 87.034 4.882 4,493 2,430 5.6% 10.8% 13.6% 1972 The widely publicized official �nemployment rate is based on 1973 89,429 4,365 4,510 2,343 4.9% 9.9% 12.5% 1974 91.949 5, 156 4,514 2,751 5.6% 10.5% 13.5% a monthly statistical sampling: of approximately 57,000 house 1975 93,775 7,929 5,271 3,541 8.5% 14.1% 17.9% holds. But in order for someo�e to be countedas unemployed, 1976 96, 158 7,406 5,233 3,334 7.7% 13.1% 16.8% the respondent member of ttle household (often not the per 1977 99,009 6,991 5,775 3,368 7. 1% 12.9% 16.3% son who is out of work) must �e able to state what specificef 1978 102,251 6,202 5,446 3,298 6. 1% 11.4% 14.6% 1979 104,962 6,137 5,427 3,372 5.8% 11.0% 14.2% fortthat person made In the I-.st four weeks to find a job. If no 1980 106,940 7,637 5,675 4,064 7.1% 12.4% 16.2% specific effort can be cited, the jobless person Is classHled as 1981 108,670 8,273 5,835 4,499 7.6% 13.0% 17.1% "not in the labor force" and ignPredin the official unemployment 1982 110,204 10,678 6,559 5,852 9.7% 15.6% 21 .0% count. 1983 111,550 10,71 7 6,503 5,997 9.6% 15.4% 20.8% 1984 113,544 8,539 6,070 5,512 7.5% 12.9% 17.7% But nearly6 million of these dillcardedpeople are also reported 1985 115,461 8,312 5,933 5,334 7.2% 12.3% 17.0% on the monthly su rvey indicaling that they "want a regularjob 1986 117,834 8,237 5,825 5,345 7.0% 11.9% 16.5% 1987 119,865 7,425 5,714 5, 122 6.2% 11.0% 15.2% now." EIR's Unpublished Ra� 1 is calculated by adding these 1988 121,869 6,701 5,373 4,965 5.5% 9.9""- 14.0% discarded jobless to the offioially "unemployed." The Unpub 1989 123,869 6,528 5,395 4,656 5.3% 9.6% 13.4% lished Rate 2 includes, in addition, over 6 million more people 1990 124,787 6,874 5,473 4,860 5.5% 9.9""- 13.8% forced into part-timework forieconomic reasonssuch as slack 1991 125,303 8,426 5,736 6,046 6.7% 11.3% 1 6.1% work or inability to find a full-!limejob. These people show up Monthly data(seasonally adjusted) as employed in the official s�tistlcs even If they worked only 1991 : October 125,549 8,582 5,932' 6,328 6.8% 11.6% 16.6% one hour during the survey�eek. November 125,374 8,602 5,932' 6,408 6.9% 11.6% 16.7% For comparability with the otl'icial rate, the EIR rates are cal December 125,619 8,891 5,932' 6,321 7.1% 11.8% 16.8% 1992: culated on the samebase fig�re, the BLS defined civilian labor January 126,046 8,929 6,1 18' 6,719 7.1% 11.9% 17.3% force. This figure comprisesall civilians classifiedas either em February 126,287 9,244 6,118' 6,509 7.3% 12.2% 17.3% ployed or unemployed. For � number of reasons the civilian March 126,590 9,242 6,118' 6,499 7.3% 12.1% 17.3% can be consider� as a bloated figure. Its use as April 126,830 9,155 6,310' 6,272 7.2% 12.2% 17.1% labor force May 127,160 9,504 6,310' 6,524 7.5% 12.4% 17.6% the divisor in unemploymelilt rate calculations thus further June 127,549 9,975 6,310' 6,040 7.8% 12.8% 17.5% masks the depth of the unemployment problem. Large seg 127,532 9,760 6,178' 6,324 7.7% 12.5% 17.5% July ments of the population, who /llight not under healthy economic August 127,437 9,700 6,178' 6,326 7.6% 12.5% 17.4% September 127,273 9,572 6,178' 6,304 7.5% 12.4% 17.3% conditions be forced to seek:worK, have become a part of the October 126,959 9,334 6,178' 6,469 7.4% 12.2% 17.3% civilian labor force over the past 25 years of "post-Industrial so 'The wanta jobnow figure is compiled quarterly. The figureused for monthly calculation of the Unpublished ciety" economy. This includl$young mothers, the elderly, and Rate 1 is that from the most recentavailable quarter. many college students. EIR November 13, 1992 Economics 15 Report from Bonn by Rainer Apel Bonn may be facing another Weimar rent, and a 1!>itmore for long-term ser Chancellor Helmut K�hl is repeating the mistakes of the vicing of the debt." Spath wasn 'tthe only senior mem Bruening government which ruled 60 years ago. ber of the esiablishment to call for debt cancellatioQ, low-interest credit, and infrastructure projects. Otto Schlecht, a former assistant economics minis ter, called tOr financing of economic 'This is the hour of truth in a highly billion, mostly in unemployment ben reconstruction of the five eastern dramatic situation in the history of our efitsand the social, transportation, and states. But Schlecht also did not repu nation," Chancellor Helmut Kohl sajd defense budgets, met little resistance diate the austerity policy. Oct. 26 in a keynote address to the at the convention, but some spoke out The danger of Kohl becoming an national convention of his Christian against aspects of the policy. other BrueQing (1930-32), who tried Democratic Union (CDU) in Dussel Lothar Spath, for example , a long to enforce drastic cuts in living stan dorf. He called for a "solidarity pact" time opponent of Kohl inside the par dards, was addressed by Bruno that would force everyone to accept ty, former governor of the machine Koebele, chairman of the labor union personal sacrifices and cutbacks next building westernstate of Baden-Wurt of construction workers, in a declara year, from wage freezes and state bud temberg, and now chairman of the tion on Nov, 2. get cuts to tax increases and other aus eastern German precision optics pro Contradicting the official Bonn terity measures. ducer Zeiss Jena, while agreeing on jobless figure of 3 million, and as "There is no maneuvering room the need for budgetary savings, serting a more realistic figure of 5 mil left for additional expenses without charged policymakers in Bonn with a lion-based on independent surveys having corresponding cuts in other "terrible lack of imagination," in an of the lab�r market-Koebele de budget positions," Kohl said, an interview with the Der Sp iegel weekly clared that ,"this corresponds to the nouncing "necessary decisions that on Nov. 2. Calling on the government jobless figul!esof the year 1931." The will have to be taken soon." to "use this one-time chance" and go new round 'of proposals calling for Kohl cited the immense costs and for state-funded "structural invest even deeperlcuts in workers' incomes, interest on the old debt of the eastern ments," Spath said: "Take the trans Koebele ch�rged, recalled the end of states (an estimated DM 250 billion portation system. We know exactly the "Weimar Republic" which col [$180 billion] by 1994) and the stream when the air traffic will collapse be lapsed under the burden of old debts of asylum seekers, which, he said, cause of overburdening in the west. in late 1932. and was overrun by the would lead to a "state emergency" if One could build an airport in the east Nazis. not put to a halt by new, stricter immi and an intelligently built grid of mag "In 1930, average indexed wages gration laws, as his main reasons for lev trains for the transport of air pas for workers. still were on a level of demanding additional austerity mea sengers. This way, a totally new trans 107.3 points, as compared with the sures. portation system would be created. 100 points of 1928," Koebele report Other party prominents were more And it would motivate the east. ed. "But then, as a direct result of to the point, admitting the reality of "The entire governmentincluding Bruening's 'emergency decrees and the world economic crisis. Wolfgang the chancellor has to state that we want the restricti\'e central bank policy, Schaeuble, chairman of the CDU par to start something entirely new, for they came down to 84.8% of the level liamentary group, for example, said example in the construction of they had had in 1928." The cabinet of that all Germans would "have to get homes," Spath said. "The federal gov Franz von Papen (who replaced used to the fact that future policy deci ernmentshould decide that the DM 36 Bruening in May 1932) intensified sions will have to be taken under con billion debt burden on the easternGer austerity measures, and the jobless ditions of a deepening world econom man housing sector is lost. That's it. rate shot up to 7 million within several ic crisis." Over. And it can grant the tenants weeks, Koebele remarked, adding, Kohl's austerity package, which credits that will enable them to pur "Not only tbe level of the job deficit has been transformed into a cabinet co chase their own flats, then. They but also many demands on labor wage alition initiative for more rigid cuts and should not pay more interest on the policies in 11}92, fatally recall the last reallocations totaling roughly DM 6 credit than they're paying now for the years of the Weimar Republic." I 16 Economics EIR November 13, 1992 Banking by John Hoefle First City Texas fails, again but only after m\lch difficulty. The The second bailout of First CityBancor p. of Texas is an omen of Abboud group pad great trouble raising the $500 million, and also had banking's catastrophic fu ture . to extend four times its deadline for convincing First City'S bond holders to accept 35-45¢ on the dollar for their bonds. By this time the bank compa ny, which had $13.7 billion in assets T he folly of bailing out insolvent dental Petroleum chairman A. Robert at the end of 1986, had shrunk to banks during a deepening depression, Abboud, announced a deal to acquire $12.2 billion. as a substitute for dealing with the the foundering First City. The deal It was also n(J) longer the second problems causing the depression, was called for the Abboud group to put up largest bank failure in U. S. history, demonstrated anew with the seizure $500 million in cash, and the FDIC to having been bumped to third place by by federal regulators of the 20 banks put up $970 million. That would make the March 1988 collapse of the $33 belonging to First City Bancorp. of the deal the second largest FDIC bank billion First RepublicBank, for which Texas the evening of Oct. 30. bailout to date, after the $4.5 billion the FDIC initially projected a cost of The failure of Houston's $8.8 bil bailout of Continental Illinois in 1984. $1 billion. lion First City ranks as the largest bank The response by regulators to the Despite the signs of impending failure this year, and the eighth largest proposal was typical of the idiocy one disaster, Abboud' penned a commen bank failure in U.S. history. Butthat's hears today. Then-Comptroller of the tary in the Oct. 31, 1988 Houston only part of the story, since this is the Currency Robert Clarke, a Houston Chronicle, boasting that Texas was on second time that the Federal Deposit banking lawyer, called the Abboud its way to becoming a "regional fi Insurance Corp. (FDIC) has bailed out move "a pretty good endorsement" of nancial center. " 'This regional reces First City. With a combined cost of Houston's banking future. sion is ending arid theTexas econo nearly $1.5 billion for the two bail "Those people have analyzed the my-including i� banks-is coming outs, First City is among the fivecost market pretty well and they concluded back," Abboud iqsisted. liest bank failures in U. S. history. that they want to be here," Clarke said Once again, ' reality refused to The crisis at First City came to a in September 1987. "That's pretty bend to the delusions of the spin doc head in 1986, for which the bank post good testimony." Clarke also cited the tors. By March 1991, with the bank ed a loss of $402 million, the largest pending takeover of Houston's Allied being ravaged by depositor runs and loss ever by a Texas bank. In January Bancshares by First Interstate Ban under orders fro� federal regulators 1987, with its credit rating at junk corp. of Los Angeles, saying he had to raise addition�l capital and tighten bond levels, the bank began a desper "a definite feeling" that the Texas lending standard�, the First City board ate search for outside capitill or, fail economy was turningarou nd: "We all firedAbboud . ing that, a merger partner. know it's going to happen, it's just a That didn't help, either. One year By June 1987, the Texas banking question of how long it will take." later, on March � 31, 1992, with the crisis escalated, with the shotgun mar Clarke's comments didn't help bank facing a regulatory demand that riage of the bankrupt InterFirst Corp. much, as both First City and First Re it raise an additi�nal $300 million in with RepublicBank Corp., creating public Bank made Morgan Stanley's capital, First Ci1jy issued a press re the ill-fated First RepublicBank Corp. list of the 10 worst stocks worldwide lease which stated, "Substantial doubt One month later, a small Texas in 1987. Two other Texas banks, exists as to the ability of First City to bank, BancTexas Group, received a MCorp and Texas American Banc continue as a going concern" without $150 million bailout from the FDIC shares, joined them on the list of the assistance from tpe FDIC. in connection with a takeover by the worst 10 performers on the New York But the zombie First City has not Hallwood Group. Like First City, Stock Exchange that year. During gone away. Fe�eral regulators are BancTexas would later join the select 1987, First City lost 88 % of its market now planning t� sell the insolvent group of banks which have been value, while its stock dropped to 40¢ banks to others, land you can bet that bailed out twice. a share. whoever buys it,! will one day tum up In September 1987, a group head The Abboud takeover of First City at the FDIC's bailout window them ed by former First Chicago and Occi- was finally completed in April 1988, selves. EIR November 13, 1992 Economics 17 Agriculture by Suzanne Rose Bad weather hinders U.S. corn harvest The processing facilities get huge But low cartel-induced prices and bad government policies are a federal and state tax breaks. Four eth anol plants are operating in Minnesota fa r worse threat to fa rmers' livelihood. alone, and the Bush announcement is expected to spur the construction of fivemore. As com fanners struggle to get in also way behind. The Illinois harvest The productionof gasohol uses up their crops during a harvest plagued has been about three weeks behind to three tim(!s as much fuel energy and by late maturing crops and rainy and normal. Indiana has harvested 42% of fuel energy products as its use can pro snowy weather, the primary menace its com acreage compared with an av vide, and a� a greater cost than the fuel to farmers' livelihood continues to be erage of 76% by this time of year. it replaces.l Thus, fuel from biomass government policy, rather than bad But far worse than the weather is degrades the environment, robs the weather. For fannersstruggling in the the low price for the crop. Because hungry of needed food , and loots the fields, the com prices are low and the of collusion between the grain cartel farmer. costs of the crop are high. For the eat companies, Cargill, Archer Daniels InsteadJ the U.S. crop, which is ers of the world, their food supply po Midland (ADM) or Louis Dreyfus, almost half the world's annual output tentials are being ruined. Why? Be and the U.S. Department of Agricul of com, sh�uld be going into the do cause of a series of incompetent and ture (USDA), farmers are now facing mestic and international food chain. immoral U.S. government policies. com prices of only $1.8S-2.00 a bush The crop, tlIough raised for livestock First, look at this year's crop it el. When adjusted for inflation, this is feed, could be specially milled for self. Due to unusual weather condi the lowest price for com this century. food relief for Africa and other points ' tions over the 1992 growing season, In contrast, by the USDA's own cal of need. the com belt saw a crop with numer culation, a parity, or fair price, would This ye�r, drought in southern and ous, well-filled-out ears. Wherever be $S.40 a bushel. eastern Africa caused a grain harvest the harvest was timely, record average This low price means catastrophe loss of SO-QS%. In the 10 countries in yields of over 121 bushels per acre for farmers. Their bare-minimum southern Africa, the com belt of that were common. But problems in har costs per bushel of com are $2.S0. continent, the average loss was 46% vesting are also widespread, as farm The government's answer? Push com of the 199� crop. In Somalia, grain ers feared. for ethanol, conduct trade wars using output is ha;lfnormal levels. After an exceptionally wet grow U.S. grain, and ignore the hungry and However, Washington is waging ing season, the moisture content ofthe starving. food warfa.. e with U.S. crops, while com is high-about 24% in Iowa. The ethanol gambit got a boost blaming the decline in U.S. grain ex Many fanners in the state have left from the Bush administration which ports on th(! "loss of market share." their com in the fields to dry rather waived provisions of the Clean Air Consider just the obvious examples. than face the costs of drying it after Act to allow ethanol-blended gasoline An estimated drop of 40 million bush harvest. In addition, farmers have to be sold in five major cities. This els of U.S. com to the former Soviet been unable to get into their fields to sparked a boom in plans to build pro bloc will not be exported, because complete harvesting because of the cessing plants. Russian livestock herds are decimat fall rains, and the snow which came Sold to the farmer as a new mar ed, and because the policy of the Inter in early November. ket, the reality is that ethanol is only national Monetary Fund, World The harvest has been behind possible because of the commanding Bank, and Group of Seven is to en schedule in the heart of the com belt position of cartels like ADM in con force still more austerity instead of to Iowa, South Dakota, Indiana, Illinois, trolling this market. Operating at a net rebuild meat herds. and parts of Minnesota. Only 37% of loss to the economy, the production Also, the U.S. governmentpolicy the 13.1 million acres of com in Iowa of alcohol from the starch in com is of subsidizihg the cartel companies to had been harvested by the first week only profitable because the farmer is export U.SJ wheat cheaply is causing in November, as compared with a nor paid less than the cost of production importers like China to use the cheap, mal year when 93% would be fin and every bushel is subsidized by the imported U.S. wheat to feed their live ished. federal government, to the benefit of stock, and ¢.ento export their com to The South Dakota com harvest is ADM and the few other processors . traditional lJ.S.markets in the Pacific. 18 Economics EIR November 13, 1992 Australia Dossier by Brent Melville Hetherington targets free trade trade because the international com Free trade economists dominate both of the two main political modity markets are so corrupted by a few multinatiOlilals either exploiting parties, and it's destroying Australia's economy . slave labor or foicing prices down by dumping at below the local price. The major political parties have sold Aus tralia out to this. idea in the name of Free trade theorists lurking behind years, however, they have capitulated the so-called global free market which Australia's two main political parties to the city-based Liberal Party which doesn't exist.' are being targeted by Maurice Hether draws support from big business fami "Mr. Hetherington said six tomato ington in his campaign for the federal lies. Hewson, the federal opposition growers in this district, each paying Parliament seat of Hinkler. Hether leader, is a graduate of Harvard B usi out a million dollars in wages, had ington, a co-thinker of U.S. presiden ness School and Johns Hopkins Uni gone out of business in the last two tial candidate Lyndon LaRouche who versity and spent several years work years because of increased comepti has held the office of shire councilor ing with the International Monetary tion from Victorian growers. The Vic for years, is campaigning under the Fund (IMF) in Washington. His for torians traditionally sold their product Citizen's Electoral Councils. mer employment was with Macquarie to processing plants but are now being The seat is located on the central Bank, while his wife Carolyn is in forced into the fresh tomato market coast of the state of Queensland, a charge of the trading floorat Schroed because of the closures of Australian sub-tropical area rich in minerals and ers in Sydney. canneries unable to compete with im agricultural produce, which has been The Liberals are attempting to ported products." betrayed by the free trade policies pro dazzle the electorate with a Goods and Hetherington warned that small moted by Canberra's economists, the Service Tax (GST) as a quick-fix"so crop farms face worse yet to come: "I business oligarchy represented by the lution" to the nation's economic have been informed that thousands of Business Council of Australia, and woes. It just so happens that the GST tons of semi-processed vegetables right-wing think-tanks such as the In is an IMF conditionality. have started coming into Australia stitute of Public Affairs, the Tasman Hetherington's anti-free trade through Perth. I have warned for a Institute, and the Sydney Institute campaign has hit the news media fol number of years now that Australia (formerly the Center for Independent lowing revelations in the Bundaberg cannot survive On this level playing Studies). News-Mail on Oct. 22 that small fieldnonsense ." For instance, sugarcane growers, crops farms in the region were collaps Hetherington attacked the General already struggling under massive debt ing at the rate of one every two months Agreement on : Tariffs and Trade and low world prices, have been hit as a result of a $94 million increase in (GAIT), which "free trade idea was a with imports from the cheap-labor na fruit and vegetable imports. A story front for the muiltinationals operating tions of Southeast Asia. The sugar tar in the Oct. 27 News-Mail, headlined out of the United States, Britain, and iff was lowered recently despite pro "Free Trade Policy Changes Demand Europe. 'Many people in the rural in tests from growers and some members ed," quoted Hetherington's insistence dustry who support GAIT just do not of the National Party, the junior part that the free trade economic policy realize it is just a new form of the old ner in the conservative federal coali that has destroyed Australia's econo imperial trading set-up--that means tion with the free market-oriented lib my must go. smaller trading nations such as Aus eral Party. Hetherington "believes more jobs tralia are kept as quarries for raw ma , Despite protests from National will be lost in the local vegetable terials, he said .. Party MPs, their leader Tim Fischer growing and processing industry un "Mr. Hetherington said Liberal went along with Liberal Party leader less Labor and the Coalition change and Labor theotists falsely argued that Dr. John Hewson's hardline "no com their free-trade policy. 'To take away protection of iridustry slowed eco ment" stance on tariffreduct ions. The tariffs and quotas and allow imports nomic development and distorted rural-based National Party is a conser to floodin at a time of global recession trade. 'The fact of the matter is that vative, pro-tariff grouping that histor is nothing more than national suicide,' the more Austqtlia has gone into so ically has worked in the interests of Mr. Hetherington said. called free trad�, the more our econo the agricultural sector. In recent " 'There is no such thing as free my has gone downwards,' he said." EIR November 13, 1992 Economics 19 BusinessBrief s Monetarism a modern industrial structure basedon sound ernment sutveys, 140,000 Italians will lose research and development. East German in theirindustnaljobs next year. On Oct. 25, over Bulgarian government falls dustries are in "Portuguese conditions," he 15,000 shopkeepers met in Rome to discuss charged, and the neglect of industrial R&D how to prot¢st the introduction of a "minimum over IMF,shock therapy produces a less productive job structure by tax . " More radical participants are pushing for boosting the service sector. Instead of ex a closure of all shops in the country for one The "democratic" Bulgarian government of ploiting the opportunity to launch "new con day . On Oct. 29, some 200 factory councils Prime Minister Dmitrov was forced to resign ceptions" with a rebuiltindustrial economy in in northernand central Italy decided to join a on Oct. 28 afterthe parliamentdefeated it in a the East, "we have copied the western states, strike of cqemical workers against the gov vote of no-confidence. The technical issue on with all the mistakes." ernment. I which the governmentfe ll, had to do with one Spath called foran increasein R&D spend minister's purporteddeal to sell arms to Mace ing and more public R&D orders . According donia. But as Dmitrov himself made clear in a to the Economic Institute Halle (IWH), the public statement, it was on the government's R&D potential in the fivenew states will have ASEAN I economic reform program, which was man collapsed 85% by mid- I 993 and the number of I dated by the International Monetary Fund employees will have dropped from 75,000 in Six nat;ons consider (IMP) and required parliamentary approval, the beginning of 1990 to 15,000 in October that the government was defeated. Dmitrov 1992. shared ipower grid has beengiven a mandate by PresidentZhelev to constitute a new government. Southeast Asian nations are considering con This is the latest sign of the collapse of de struction ofa $10 billion powergrid, aimed at mocracy beingcaused in formerlycommunist Italy sharingelectricity through land and submarine eastern andcentral Europeancountries by the cables. Offil:ials from Malaysia's power firm effects of IMF policies. Recently, Lithuanian 'National sovereignty' Tenaga Na�ional Bhd told Reuters on Nov. 2 President Vytautas Landsbergis and his Sa that Malays�a is coordinating the project. judis party suffered a humiliating defeat at the at stake, says adviser The ect will involve the construction hands of the country's communist opposition, Pf9i of eight po er transmission lines linking Bru largelybecause of the population's rejectionof Vf The "national sovereigntyof the economy is at nei, IndoneSia, Malaysia, the Philippines, Sin IMF austerity . stake," Massimo Pini, chief adviser for public gapore, and Thailand. The project, overseen In Bulgaria, the government hasbeen im industry to Italian Prime Minister Giuliano by economk ministers of the Association of plementing one of the most atrocious "shock Amato, said in the weekly Mondo Economico Southeast Asian Nations (ASEAN), would en therapy" policies of any governmentin the for in late October. Pini is opposing an Anglo sure that the region had a reliable "fallback" merly communist realm. This program has American plan for privatizing Italian public in source of Nwer during emergencies, one of beencited positivelyas a model by the Jeffrey dustry as a recipeto balance the state deficit. ficial said. "We hope eventually the system Sachs maniacs. "It is useless to hide it," Pini said. "Priva would become like that in Europe where one tizations would openup foreigncapital to our country supplies electricity to another when industries, and defending ...those sectors the need arij;es, without payment." where we guarantee national products," such The officialssaid the firstphase ofthe proj R&D as in food distribution, "means to defend the ect would be the construction of a $150 mil Italian position in Europe." lion, 600mtlgawatt tra nsmission cable linking Market-oriented policies Pini was referringin particularto pressure the northernpart of Malaysia to southern Thai to sell SME, a foodgiant owned by the Italian land. This phase of the project will be jointly destroying Germany state, which is coming under pressure from fi undertaken by Tenaga and the Electricity Gen nancial raider Raul Gardini, who is allied with erating Authority of Thailand (EGAT) . Here, The collapse of east German industrial re French financierJean-Marc Vernes. Rumors the cost willibe equally sharedbetween EGAT searchis beingcaused by wrong westernpoli of insider tradingon the SME have prompted and Tenaga. cies, declaredLothar Spath, the formergover a parliamentary inquiry. Another phase of the project involves lay nor of the state of Baden-Wiirttemberg and On Oct. 28, Amato declared that plans to ing submariite cables between the Malaysian now managing director of one of the fe w sur privatize the country's state industries could Peninsula �d the Sarawak state of BorneoIs viving high-tech companies in eastern Germa not berushed. "Privatization is not something land. "This phase is expectedto cost $4 billion , ny, Carl ZeissJenoptik. to betreated lightly," Amato told Italian state and will be borneby Malaysia as it's a domestic Speaking to a conference of scientists in television. "We have to take our time to avoid project," an official said. The link between Berlin, Spath attacked western investors for selling at low prices." Malaysia ankiSarawak would be later expand only setting up businesses with a "fast product" Amato's remarksfo llowed an ongoing re ed to Brunei and the Philippines. for a short-lived market, instead of developing volt against austerity. According to non-gov- The officialsnoted that Malaysia's energy 20 Economics !EIR November 13, 1992 Brifj1y • SIX JAPANESE trading compa nies announcc:da feasibility study for a $4 billion petrochemical plant in northern China (formerly Manchu ria), which would be the biggest Jap needs were expected to double by the end of Deputy Minister for International Trade anese-ChineS!! venture yet, the Oct. the decade to more than 10,000megawatts and and Industry Chua Jui Meng said on Oct. 23 26 Internatianal Herald Tribune re that the country neededto step up powergener that the projects make up 65% of the total man ported. The Japanese government is ation to meet rising demand. ufacturing investments of $9.6 billion ap expected to dontribute to the project proved during the January-September period. if it goes ahead. The government, he said, would encourage further expansion of the petroleum sector, es • A BRITISH FIRM began paying peciallyinvestments in downstream plants. InternationalCredit workers in German currency on Oct. Officials in Kuala Lumpur estimate that 28. "We have no confidenceanymore the four new projects will raise Malaysia's re French council calls in the British pound; that's why we're finingcapacity to 850,000 barrelsper day, up taking the deutschemark now," said for recovery policy from the current 214,800 bpd. Martin Cuthbert, the director of the The largest of the four proposed refineries, Brownstone Glass and Glazing firm which will cost about $1 .5 billion, is to be com A report on the economic situation by the Eco in Leicester, Britain. nomic and Social Council, a national institu pleted by the French group Societe Nationale Elf Aquitaine. This project will be its first tion in France, underlined the necessity to • THE PRICE of gasoline will rise crude-processing plant set up in Southeast launch a "selective and concerted Europe by up to 12 per gallon in 38 U.S. Asia. ¢ wide recovery policy," even if only among a metropolitan areas beginning Nov. 1, few countries, according to coverage in the under the provisions ofthe Clean Air Oct. 28 French press. Act of 1990� Oxygenated gasoline, This recovery policy would be based "on supposedly Co control smog during an active support of the housing sector" and Demographics the winter months, will cost approxi more generally of the constructionand public mately 7¢, While the decreased mile works sectors, with a "mobilization of credit" Abortion a necessity, age from the new product will cost 3- for road infrastructure and collective urban 5¢ more per gallon. transports, the report urged. genocidalist tells IPPF The reportattacked the "optimism" of the • JAPANESE officials strongly government, probably referring to the incredi "Safe abortion" must be increasingly used as a defended a plan to ship plutonium ble statement of FrenchPrime Minister Pierre means of birth control, and 70% of women from Europe: on Oct. 26. Briefingre Beregovoy some days ago that "the crisis is require at least one such abortion if they are porters on Japan's 1992 nuclear ener behind us." to restric their fe rtility to two children, stated gy white paper released on Oct. 23, The "competitivedeflationary" policies of Francine Coeytaux from the New York-based Shigeru Mac:da, deputy director of "the present government have reached their Population Council, in a presentation to the the Scien¢e and Technology limits and must be inflected," the report said. 40th anniversary congressofthe International Agency's Atomic Energy Office, "One cannot remain inactive" while certain Planned Parenthood Federation in New Delhi, said, "Japan�s stance is that there is personsbegin talking about a 1 929-sty Ie crisis. India, the Oct. 27 London Guardian reported. no other method but atomic energy. We must change policies, because "disinfla Stated Coeytaux: "I personally find this We cannot do without it." tion can lead to deflation and deflationto re statistic amazing, that even under the best of cession." circumstances . . . seven out of ten of us will • OVER lO,OOO people protested need to rely on abortion. One of the things that in Madrid, Spain on Oct. 26, in soli has driven me . . . has been the conviction that darity with ; Spanish steelworkers, we can control our fertility. And of course we 40% of whqrn are being laid off be Energy can. But to a degree. And that degree depends cause of Spanish governmentand Eu largelyon our access to abortion. . . . Contra ropean Community proposals to Malaysia expected to ception is still far from ideal. Thus, while close steel mills and cut jobs. strengthening contraceptive services is essen become net oil exporter tial to reducing the number of unwanted preg • MALARIA increased fourfold in nancies, contraception will not altogether re Ibero-America, the World Health Or Through new oil project investments, Malay move the need for abortion. In summary, ganization has reported. The number sia will emerge as a net exporter of petroleum induced abortion is here to stay and plays a of cases in 1990 was 1.1 million, up products, the wireservice Opecna reportedon critical role in family planning and fe rtility re from 270,000 in 1974. The WHO Nov. 2. In the first nine months of this year, duction." identified PQverty, migratory move the governmenthas approved four refineryand Coeytaux added that "safe abortion" ments, and , drug trafficking as the three other petroleum-relatedpro jects worth a should therefore be an integral part of "family main factors spreading the disease. total investment of $6.3 billion. planning" programs. EIR November 13, 1992 Economics 21 • TIillFeature The ANCleads SouthAfri ca�s plunge into \far by an EIR Investigative Team On Oct. 19, Nelson Mandela, president of the African National Congress (ANC) of South Africa, startled the world with a press conferenceheld in Johannesburg, in which he chastised the leadership of his own organization for atrocities and torture against its own members. Mandela released a report commissioned by him on documented atrocities carried out by the ANC's security over the course of the 19808 against its dissenting members and others. As the Los Angeles Timesreport ed on the press conference, ANC dissidents "were imprisoned without charge and denied adequate food and water for months on end. Some of their eardrums burst when they were forced to pull out their cheeks while being repeatedly slapped on the face. Others were lathered in pork grease and forced to crawl through colonies of biting red ants." These incidents, as Mandela reported, took place under the supervision of the ANC's military wing, Umkhonto. we Sizwe (Spear of the Nation) at its Quatro camp in Angola. "The morality of our liberation struggle demands of us the highest moral and ethical standards," Mandela warned, adding, however, that the tortures "must be understood in the context in which they occurred." In reality, Mandela's admission of the ANC's extreme brutality toward its own members, coheres precisely with the brutality it has used publicly, primarily against blacks, in its drive to take power in South Africa. While the government of South Africahas been negotiating with the ANC as its primary partner in the transition to majority rule, the level of violence in South Africa has been escalating rapidly. As this report will show, despite Mandela's :stated desires or efforts, the promotion of such violence-which took 26,000 lives in 1991 alone-is central to the ANC's entire strategy to seize power for itself in South Africa. This report will also present evidence showing that behind the ANC's drive for power stands not the support of the majority of bl�k Africans in South Africa, but rather the Communist Party of South Africa, Which remains alive and well despite the demise of communism in the former Soviet empire. This is possible 22 Feature EIR November 13, 1992 Nelson Mandela (l) and his Winnie Mandela (r) at a White House ceremony in Washington . Although Nelson lvuma:eta ANe leadership for atrocities against their own members, Winnie has spoken of liberating South Africa "with necklaces ." because of the vast support the ANC commands from high special envoy to South Africa. MaJlldela won his agreement, level political and financial sources in the West, including and since then U.N. monitors in South Africa have acted Hollywood, who appear prepared to hand over South Africa consistently to protect the ANC's campaigns of "mass ac to the ANC and its communist controllers. tion," even when the ANC has led scores to their deaths, as A few weeks before Mandela's press conference on ANC in the Sept. 7 ANC march on Ciskei. torture methods, the truth of the ANC's strategy and tactics Jaffrey pointedly concludes by noting that there is a was exposed in a report issued by the well-known anti-apart "common denominator in what the reports of these organiza heid organization, the South African Institute of Race Rela tions omit. All three organizations 'gnore: tions. Released at the end of September, the report examines • "the ANC strategy of fo tering 'ungovernability' a report on violence in South Africa released earlier this year through mass action; by Amnesty International (AI) titled "South Africa-State • "the intimidation and coer ion which the ANC ac of Fear," and other reports by the International Commission knowledges commonly accompan� mass action; of Jurists (ICJ) (Agenda for Peace) and the Human Rights • "the ANC's refusal to disband Umkhonto we Sizwe Commission (HRC) (Special Briefingon Massacres). Insti (Umkhonto) or to surrender its secret arms caches; tute of Race Relations author Anthea Jeffrey stated that ex • "the ANC's refusal to desist from the establishment of amination of the violent incidents listed in the human rights township 'self-defense units,' contrary to the provisions of reports showed that AI, the ICJ, and HRC were presenting a the National Peace Accord; "disturbing level of disinformation. All the reports are highly • "the frequent incidence of attacks on members of the selective in their focus. All ignore the rules of evidence and South African Police (SAP), which have resulted in the the principle of audi alteram partem [to hear the other side]. deaths of more than 120 policeman in the first seven months All seek to elevate allegation to the level of fact." of 1992; and Despite their misrepresentation ofviolence in South Afri • "the high number of IFP [Inkatha Freedom Party] of ca, Jaffrey wrote, the cited reports were used by the ANC ficials and members-now totaling over 1 ,OOO--who have to "buttress its accusations against the government and to been killed in recent years." strengthen its demands for international intervention." In his Recognizing the actual nature ofI the ANC is the. first step I July 1992 speech to the United Nations, in fact, Mandela had in stopping the spiral of violence w ich will soon lead to civil devoted most of his attention to the findings in the Al and war in South Africa. Such a cat strophe, however, is the ICJ reports, in motivating his call for the U.N. to send a hope ofthe British-dominated financial oligarchy which con- EIR November 13, 1992 Feature 23 trois the largest chunks of the South African economy. Na all black Africans. Its strongly Christian outlook was reflect tional bankruptcies, civil strife, wars, famines, and depopu ed into modem times in the person of-Chief Albert Luthuli, lation-all under the watchful eyes of the International winner of the 1960 Nobel Peac¢ Prize, ANC President"Gen Monetary Fund-have become the norm for Africa, as the eral from 1952-67, and an �tspoken opponent of com- British seek to reestablish their direct rule over the continent, munism. : .. including South Africa itself. The SACP moved to take over the organization shortly In this case, the weapon of choice is the communist Afri after Lenin sent a number of c�mmunists to South Africa'i n can National Congress. 1921 to found the party. By 1926, the Cominternhad instruct ed the SACP "to pay particular .ttention to the ANC" in order Communist domination to establish an "independent n'tive republic" as a stepping In February 1990, ANC leader Nelson Mandela was freed stone to communist rule. Wh¢n the SACP was banned in from prison after 27 years, and the South African government 1950, many of its leading ca 24 Feature :EIR November 13, 1992 and 1980s from exile, including its terror attacks into South South Africa, this from an MK force C!stimatedat only around Africa. SACP documents presented in court in Rivonia stat 6,000. The pro-ANC U.S. State Dewrtment reported in their ed that the SACP now "completely dominated" the ANC, 1990 annual human rights survey, '1Numerous, credible re but that that fact should be kept secret. ports of torture and mistreatment by ANC security personnel By 1969, the SACP's secret domination of the ANC of ANC defector-detainees at ANC �fugee camps continued became public at the ANC's famous Consultative Confer in 1990." ence in Morogoro, Tanzania. The ANC adopted a series of The Maoist influenceon the ANG was also reflectedin the SACP-authored resolutions, including: ANC-sponsored "people's courts" in the black townships, • The Slovo-authored "Strategy and Tactics" document, where youths were encouraged or �ven forced, to tum on a watered�down version of the SACP's own 1962 program, their elders. As in Peru, where the Maoist Shining Path terror "The Road to South African Freedom." ists make everyone in a village cut! a piece of flesh from a • The creation of the Revolutionary Council charged living victim, the informants in the townshipswere forced to with directing the struggle day-to-day. The council's chief flog their friends or family member$ with iron bars or wire, executive was an SACP veteran. or even to "necklace" them with a rubber tire which was then • The opening of the ANC to non-blacks. The first set aflame. whites to join were all SACP members, including Joe Slovo, ANC Security began to recruit from 12- or 13-year-old the first white on the ANC's NEe. youngsters who can be brainwashed to kill on command • A formal declaration of alliance between the SACP youths who, as Moise Twala put it, �'don 't ask questions, but and the ANe. just carry out orders." The pool df such youngsters grew Soon, purges of nationalists began. In 1975, eight lead massively, as the ANC-SACP put forththe slogan of "Libera ing ANC members declared that the ANC had been "hi tion before Education." Students 'Were forcibly kept from jacked" by the SACP, that the communists in the ANC attending school, and following Pol Pot's example in Cambo suppressed freedom of speech, and thus, that "Criticism of dia, many schools were burned to the ground. According to official ANC policy has come to be regarded within the one estimate, 5.4 million children, an entire generation, is leadership circles as nothing less than treason." The so entirely illiterate because of this ANC-SACP policy. called "Gang of Eight" was expelled from the ANC in Octo ber 1975; their leader, Tennyson Makiwane, was hunted 'Mass action' down by the MK and murdered in Transkei in 1980. Since its legalization in February 1990, the ANC has been in talks with the governmentand other parties for transition to Trained in torture majority rule. But in its systemati¢ campaign of assassina ANC brutal1� toward its opponents, both within the or tions, necklacings, and terror, the ANC shows itself to be in ganization and without, took a major step for the worse fol strict line with SACP policies, as :enunciated in the SACP lowing an SACP-arranged trip by the entire ANC leadership house organ, The African Commun;st. The magazine assert to Indochina in 1978. Its purpose, said one former ANC ed, right at the time of the legalization, "The ultimate goal member, was to "learn how the revolutions had triumphed" for the national liberation struggle is the seizure of power. and to apply the methods of the Indochinese communists to There can be no peaceable or friendly seizure." Africa. This included the Maoist Khmer Rouge, whose brief In July 1990, just before the planned second round of four years in rule (1975-79) resulted in the death of 40% of talks with the government, police �ncovered massive com the Cambodian population. puter files which demonstrated the existence of "Operation Moise Twala, former ANC member and chairman of Vula," an ANC plan to build a mass underground armed the Returned Exiles' Coordinating Committee, told EIR (see structure for the near-term seizure of power. interview), "It was only afterlea rningfrom the Khmer Rouge Though that plan, overseen by the seven-man ANC Presi ...that they came back, and it was only then, in 1979, in dent's Committee, was set back, the ANC has announced its January, that they sent us to go and erect that prison, the intent to seize power in the black homelands not favorable to notorious Quatro [in Angola] . It means they went to learn." them, in particular KwaZulu, Bophuthatswana, and Ciskei. Upon their return,the ANC executive mandated the construc Several SACP leaders including General Secretary Chris tion of prison camps in Angola, Tanzania, Zambia, and Hani and SACP Politburo member Ronald Kasrils, both of Uganda to hold members who questioned being sent to fight whom are on the ANC's NEC, on Oct. 5 led the ANC march in Angola, Zimbabwe Rhodesia, or Mozambique. There, on the homeland of Ciskei, which resulted in 28 dead and such "dissidents" were tortured and often killed. several hundred wounded. The match was to culminate, said According to informed estimates, some 600 ANC mem Kasrils, in the "peaceful overthrow" of Ciskei head of state bers disappeared or were murdered in these camps, while Brigadier General Gqozo. another 1,000 or so were killed in "liberation wars" outside Led by Kasrils, ANC marchers ignored agreements they EIR November 13, 1992 Feature 25 signed with Ciskei, broke through barriers, and charged the in Bophuthatswana, are at bitter odds with the ANC. 150 or so Ciskei soldiers who were guarding government However, as violence esca�ates, the cleavages will be buildings, and who opened fire. South African intelligence inevitably drawn more sharply i along tribal lines. Already sources say hard evidence exists that the plan was not to there are numerous reports of Af1lC supporters throwing peo capture Gqozo, but to publicly necklace him. Ofthe slaughter ple off trains, or shooting theIl!l, because they were heard of his own followers, Kasrils commented, "We knew it was speaking Zulu. There is no doubt that the Zulus feel extreme dangerous. Sometimes people have to die." ly threatened. Zulu King Goodwill Zwelithini, who has here ANC leaders are not bashful about their commitment to tofore refrained from politics and recently took a Xhosa violence. Said Chris Hani, protege of Joe Slovo and his woman as his fourth wife, charg<:din a rally Sept. 27 that the replacement as MK chief until he recently took over as SACP ANC plan was "to wipe the Zuhls offthe face of the earth." secretary general, "We are prepared to see a wasteland, if i that is the price of freedom." His friend Winnie Mandela Deep pockets behind the ANC chimed in, "Together, hand-in-hand with our matches and Though lacking the support df the majority of South Afri our necklaces, we shall liberate this country." Even the unof ca's black population, the ANC is the darling of the country's ficial ANC foreign minister Thabo Mbeki, touted in the press dominant corporations, allied multinationals, and the u.S. as a moderate, has said, "Violence is a very important ele and western European governments, as reflected in its bal ment to achieve change." ance sheet for 1991, which shOwed $560 million in assets Not surprisingly, the pace of violence in the country is worldwide, and a cash income of $92 million. escalating dramatically. In 1991 in South Africa, there were According to a variety of sou�ces in South Africa's intelli 26,000 murders! From January to July 1989, attacks on the gence community, in non-ANC black organizations, and police and army had averaged 33 per month, while in the within the ANC itself, this large$se includes: year after the ANC's legalization, they averaged 480 per • Millions of dollars which tiny Rowland's Lonrho cor month. poration put up for the ANC to move from Lusaka, Zambia Terrorism complements the ANC-SACP strategy of after its unbanning, to Johannqsburg, and the 20 million "mass action" designed to force its way into power. At a rand purchase price of Shell Ho�se in Bramfontein Center in May Day parade in 1992, Jay Naidoo, head of Cosatu, the Johannesburg, as a joint head 26 Feature �IR November 13, 1992 was the U.S. Central Intelligence Agency. In 1971, then-AAI President William R. Cotter also told Interview: Moise Twala the U.S. Congress: "I personally am in complete accord with those who call for the strongest measures by the U.S. to accelerate the process of change within South Africa. Nor would I automatically rule out violence as an instrument for obtaining the rights of the non-white majority." An AAI brochure says: • "Scholarships for training should be awarded where possible to students affiliated with a liberation movement, ANC dissideI)ttells and the training program and efforts to assure trained stu dents' utilization on return, should be planned and carried of torture terror out as much as possible in cooperation with liberation move and. ments." Moise Twala, chairman of the Retur�ed Exiles' Coordinating • "Whatever steps are taken to solve short-term prob Committee in South Africa, granted this interview to EIR lems, there is only one ultimate solution to the overall prob on Oct. 8. The Returned Exiles' Coordinating Committee lem: That is the overthrow of minority regimes in southern represents ANC dissidents who werje tortured, put in deten Africa and the liberation of the southerntier of the continent." tion, or driven out of the ANC fo r q�estioning policy. South African corporate giants such as Anglo American and the country's largest industrial firm Barlow Rand, are EIR: Could you tell us about the to¢ure and detention camps also working to shape the political process to the advantage run by the ANC? Twala: The most notorious detention camp and the firstone of the ANC-SACP. The Codesa negotiating process is a case I in point: Its chief executive is Zach de Beer, longtime Anglo that was created was Quatro in Ang¢lla, built in 1979. Imme- American executive and protege of old Anglo head Harry diately it was put up, a lot of dissentlersand people who were Oppenheimer. The country's liberal press is also largely critical of the leadership were rou�ded up. But the largest owned by Anglo American. number rounded up was in 1981, the year there was a general Barlow Rand has added its weight to the ANC scales purge within the ANC. A lot of people were sent to Quatro, through the National Peace Committee, chaired by Barlow and disturbing news started reaching us, that there was a Executive Director John Hall. Hall and fellow business exec mass slaughter of people that went' on. Torture, beatings, a utives marched in the front ranks of the ANC demo against lot of people died there. Most of the people who were rounded the Ciskei government Sept. 7, right next to leaders of the up in 1981 we never saw again. SACP. This was to be a continuous tbing for anyone who dis Barlow and Anglo American also helped found the South sented, or who was critical of the leadership. Another devel African Co-ordinating Committee on Labor Affairs (Sacco opment occurred also in Zambia. iThey started putting up la), an employers' confederation which negotiated a draft some prisons, private houses, where they were killing peo "Charter for Peace, Democracy and Economic Reconstruc ple. One was the Green House, anbther was called RC, for tion," with the SACP-dominated Cosatu, the country's major Revolutionary Council. There was !alsoa farm where people labor confederation. The charter committed labor and indus were killed and thrown to the crocoktiles, an ANC farm .... try to a program of action "to force the pace of transition," There were other detention centers. One was in Dakawa including a national one-day strike, scheduled for last Aug. 3. in Tanzania. Another was at Somafco, the so-called ANC According to the London Financial Times of Sept. 21, college in Tanzania (there was also a prison camp there). It the strike fizzledout at the last moment, because other firms stands for Solomon Mahlangu Freedom College. There is a got cold feet: "The private sector also appears to have balked prison there. There was also, is evep now, one called Kigwa, at the last moment at the idea of business and labor ' ganging it is towards the Ugandan border, �n the northof Tanzania. up' against the government, in favor of the ANC." There are still some detainees beiqg kept there, up till now. Two Anglo American executives offered an explanation There are also some detainees in rvarious prisons, they are for all of this corporate charity in candid discussion with said to be imprisoned by the ANC in Ugandan prisons. That journalists in Johannesburg a couple of years ago. "Let the is, government prisons. And some are being kept in some blacks rule," said the first. "We'll make a lot more money houses in Uganda which are owned by the ANC. out of a black governmentthan out of a white one, because they would be a lot easier to manipulate." Added the second, EIR: How many of the atrocitie� were due to the SACP "It doesn't bother us if a radical black regime comes in. We'll control over the ANC? just put up the fences and keep pulling the minerals out just Twala: The effort has taken the �ACP many years to con the same." solidate control over the ANC, bUt the takeover took place EIR November 13, 1992 Feature 27 in 1950. And so they have just been consolidating them trinated creatures who did not know anything and who just selves in all the structures of the ANC. Hence you wouldn't simply carried out orders. be wrong to say that more than 70% of the ANC leadership are members of the Communist Party, and almost 100% of EIR: So they directly picked up these techniques from the the intermediate leadership is Communist Party. Pol Pot forces and applied thero? .... Twala: Yes. And applied therrt. They had gone tolearn. 1 EIR: Do you have any estimation of how many ANC cadre would say that they learnedquit e well, because some of the may have died because they were sent to fight in Rhodesia things that were committed by the ANC-feeding peopleto and Angola? crocodiles, using poison to eliminate people and a lot of Twala: In those foreign wars? There are those people who things-the tortures that they used, I think they learnedquite died in the foreign wars, and there are those who were well. You will hear from the testimonies [that such thi,ngs] decimated by the ANC security for questioning things like, are still happening. . . . "We don't want to fight in foreign wars, we want to go and fight at home"-who are critical of certain things: "Let's EIR: Were the Soviet KGB and the East German Stasi review our whole policies," that type of thing. Those are the involved in hunting down som� of the dissidents? people who perished in the camps. Always the reason was, Twala: Well, you have to undellstandthat the ANC security "They are enemy agents." That was the ANC; they always was trained by the KGB and by the Stasi, mostly the Stasi. said that anyone who questioned things was a "reactionary," The most were being sent to the Stasi ....For instance, if "He is an enemy agent." Those sorts of derogatory terms a dissident is in Europe, it [the ANC] did not have the would be used to justify slaughter of the victims. capability of neutralizing someone, but the Stasi and KGB had a longer arm. EIR: Do you have any idea how many ANC members actually died from the camps and the foreign wars? EIR: Have you yourself been under a good deal of threat Twala: In the camps I would estimate over 600 perished at by the SACP-ANC? the hands of the security. And on the other hand, in these Twala: Even now, when I wa� in London, my wife was foreign wars, it is about 1,000000ver 1,000. You have to receiving threatening calls and all that. I mean, it is a way understand that this MK, the army of the ANC, was never of life. Violence has so consumed the South African social a big army. It had many camps, but in the camps you would fabric, that threats are there all: the time. Even when you findmaybe only 100 men each. They were scattered all over walk on the street, you know that you could be assasssinated Angola ....The ANC wanted to create an impression that at any time. That is the way we Hve--especially if you have it had thousands and thousands of men, which was not the given yourself attention, or you have drawn the wrath of the case. ANC. EIR: Are there any connections between the Pol Pot forces EIR: So the African National Congress, to your knowledge, in Cambodia and Shining Path in Peru and the African had specificli sts and assassinatioh campaigns against people National Congress? in the township and Inkatha members and so forth? Twala: I would say the only link that we saw, was in Twala: This is done every day. I They have hit squads Who 1978 when the entire leadership of the ANC went on an go out and hit their targets. It goes on and on and on, every educational tour to Indochina, Cambodia, Laos, and Viet day. Some people are not killed because they belong to nam. They had gone to learnhow the revolutionary-let me Inkatha or other opposition parties. The ANC sometimes say, how the revolutions had triumphed. They had gone to tells people, "You are not going to pay the rent," but some learn how to implement strategies and tactics to the victory people have values, they don't want to take something for of the revolution. It was at the time, if you remember, this nothing, they want to pay. But then the ANC comes up with guy Pol Pot and Ieng Sary were still in power in Cambodia. this type of mentality: "No rentsl don't pay any rents," and It was before they were deposed. It was only after learning people who pay, they are killed; from the Khmer Rouge and the experiences in Vietnam that Mass action, for instance-that there's going to be a they came back, and it was only then, in 1979, in January, stay-away, everybody mustn't gd to work. Someone has got that they sent us to go and erect that prison, the notorious his own commitments with his family. He has children at Quatro. It means they went to learn. school. He is paying his furniture, car installment, his house And also generally, if you look at the ANC security, it is bonded. He knows his own financialsi tuation and he does started growing, but they were only recruiting youngsters, not believe in the ANC and their.campaigns, but he will die some as young as 12 years. Some 12, 13, 14 years, that is for that. His property will be destiroyed. His children will be the material they were using as security, people who don't necklaced. All those sorts of things happen. It is a common ask questions, but just carry out orders--completely indoc- occurrence now. 28 Feature SIR Novembef'13, 1992 Mx: 'DelIlocratizer' Santuel Huntington prilIles SouthMri ca fo r fascism by an EIR Investigative Team The key to the African National Congress's drive to power But it was not only governmentofficials wh om Hunting was the De Klerk government's February 1990 decision to ton tutored. A former ANC leader reported that Huntington embark upon the transition to "majority rule." The master was "very instrumental in training some of the top people mind behind this strategy was Prof. Samuel Huntington of within the ANC." One of his ANC students, whom he hosted Harvard University's Center for InternationalAffairs . at Harvard for one year, is Murpherson Morobe, now the Huntington has been a senior American strategist for de officialcoordinator of the Convention for a Democratic South cades. He was coordinator of security planning at the Nation Africa (Codesa), the Communist-dominated negotiating fo al Security Council under President Jimmy Carter, and is a rum for black majority rule. Said the former ANC leader frequent consultant to the Office of the Secretary of Defense, about Morobe, "He is the one who didthe everyday running the National Security Council, the State Department's Policy of Codesa affairs. He is the one who;made the recommenda Planning Staff, the U.S. Air Force and Navy, and the Agency tions as to which organizations oould be admitted into for InternationalDevelopment . Codesa, and which organizations could not be, and that type He is also a leading figure in the U.S. government's of thing. This was a pretty powerful position." National Endowment for Democracy, the notorious "Project Pik Botha and Huntington met' often when Botha was Democracy" under which the Iran-Contra arms for hostages South Africa's ambassador to the United States. After be deals which were run. The NED, in the words of one of its coming foreign minister, in 1981 Bptha invited Huntington senior officials, "does the kinds of things the CIA used to do, to South Africa to give the keynote t EIR November 13, 1992 Feature 29 cY-'-it is revealed to a small group of political leaders whose with Huntington at Harvard and brought back Political Order support is essential." Then, for implementation of this secret and No Easy Choice: Political Participation in Developing plan, 'The most promising approach" would be a "combina Countries, which were translated into Chinese and spread all tion of Fabian strategy and Blitzkrieg tactics .. ..This Fabi over the country. an, step"by-step approach enables the reformer to pacify con These books provided the theoretical basis for the "New servatives by minimizing the significance of any one change Authoritarianism" movement; of Deng and Zhao beginning and by implying that each proposed change, like Hitler's 1986, whose fruits were the slaughter at Tiananmen Square territorial demands in Europe, will be his last." and the opening up of China for slave-labor exploitation by According to one insider, Huntington was adopted as the the West. In Political Order, ,Huntington argued that dicta "intellectual oracle of the Afrikaner political establishment." torship may be require in order to impose upon developing Editor-in-chief Tertius Myburgh of the Johannesburg Sun sector countries the painful �onomic reforms required by day Times in 1985 concluded that political developments in "free trade" liberalism, just as he had argued in his 1974 the years following Huntington's first visit were "in many work that the global economic collapse evident already then, respects, as if his script was being followed to the letter." required eliminating democracy. In his 1992 book, The Third Wave, Huntington put for Tyranny with a democratic face ward guidelines for "reformel's," among which he includes Huntington's espousal of "democracy" has nothing to do South Africa's present National Party government. Among with the republican principles of the American Constitution, his recommendations are: whose ideas can be traced back to Plato's Republic. For him • "Secure your political base. As quickly as possible "democracy" is the latest slogan for operations to destroy place supporters of democratillation in key power positions any nationalist forces who might threaten the financial and in the government, the party, and the military . geopolitical world order of London and Washington. • "Gradually shift your own constituency so as to reduce For the United States itself, Huntington's prescription is your dependence on government groups opposing change exactly the opposite: radical revision ofthe American Consti and to broaden your constituency in the direction of opposi tution to do away with representative government. tion groups supporting democtacy. Huntington was the chief author of the Trilateral Com • "Be prepared for the sta�dpatters to take some extreme mission's 1974 Task Force on the Governabilityof Democra action to stop change (e.g., a ¢oup attempt)-possibly even cies' report, The Crisis in Democracy. In 1974, Trilateral stimulate them to do so--andtlhen crack down on them ruth circles put forward the slogan of "fascism with a democratic lessly, isolating and discredititigthe more extreme opponents face," which Huntington elaborated in that report. There he of change. bemoaned that "an excess of democracy" makes governing • "Seize the initiative and surprise both opposition and difficult in a period of economic collapse, when extreme standpatters with the concessions you are willing to make. austerity is required from the population. Huntington assert • "Secure endorsement of the concept of negotiations ed that just as "there are potentially desirable limits to eco from leading generals or other top officials in the security nomic growth, there are also potentially desirable limits to establishment. the indefinite extension of political democracy. . . . Democ • "Do what you can to enhance the stature, authority, racy is only one way of constituting authority, and it is not and moderation of your principal negotiating partner. necessarily a universally applicable one." • "If the opposition succeeds, you very probably will be In the chapter on the United States, he argued that "the in the opposition. Your prime concern, consequently, should effective operation of a democratic political system usually be securing guarantees and safeguards for the rights of the requires some measure of apathy and non-involvement of opposition and of groups that have been associated with your some individuals and groups," adding that while "this mar government. Everything else is negotiable." ginality on the part of some groups is inherently undemocrat Huntington makes some pointed recommendations as to ic . . . it has been one of the factors which has enabled how the "democrats" should handle the military, once they democracy to function effectively." But now, he com have taken power, under the subhead, "Curbing Military plained, the once-marginalized black citizens have been in Power, Promoting Military Professionalism": corporated as "full participants in the political system," • "Promptly purge or retire all potentially disloyal offi which threatens to "overload" democracy. cers, including both leading supporters of the authoritarian Huntington's role as a shameless apologist for totalitari and military reformers who may have helped you to bring anism is most evident in his intervention into communist about the democratic regime. rJ'he latter are more likely to China. His 1968 book, Political Order in Changing Socie lose their taste for democracy than their taste for intervening ties, became the bible for the butchers around Deng Xiaoping in politics. in the Chinese Communist Party. One of the students of • "Make major reductions in the size of your military Deng's longtime heir-apparent, Zhao Ziyang, went to study forces. 30 Feature EIR November 1 3, 1992 • "Drastically reduce the number of troops stationed in According to institute co-director Dr. 1.K. Cilliers, "There or around your capital. Move them to the frontiers or other is agreement that a mUlti-party sUbcdmmittee on defense will relatively distant unpopulated places. be established, consisting of six full-time members of the • "Give them toys. That is, provide them with new and various political parties who will take control over the de fancy tanks, planes, armored cars, artillery, and sophisticat fense force. And there's also agreement that the post of a ed electronic equipment (ships are less important; navies do military ombudsman will be created and there is talk of the not make coups). New equipment will make them happy and establishment of an expert body, what we would call a Coun keep them busy trying to learn how to operate it." cil of Defense. " Cilliers is well acquainted with his MK negotiating part The Institute for Defense Politics ner. "About two years ago," he reports, "I was one of a few The task to "secure endorsement of the concept of negoti South Africans who went to Lusaka and talked to MK on the ations from leading generals or other top officials in the secu future of the military and security in southernAfri ca. I came rity establishment" has been handed over, by Huntington's away from it very much convinced that we need to get our allies in South Africa, to the newly established Institute for act together." Defense Politics. The lDP sponsors conferences ahd publishes a bimonthly Set up in 1991 with funding from the Anglo American journalreplete with references to HllIntington's writings. CiJ and DeBeers Chairmen's Funds (the same corporations liers remarked about the influenceof Huntington on himself, which finance the ANC) and an Anglo-allied firm Gencor, "I have had occasion to study his w Fax (703) 777-8287 Ph: (703) 777-3 66 1 (800)-220- 1037 Virginia residehts add 4.5% sales tax. EIR November 13, 1992 Feature 31 �TIillInternational New push for 'Greater Serbia' backed by United Nations by Umberto Pascali On Oct. 31, a meeting of Serbian Chetnik leaders in the have been perpetrated without any intervention from the Serbian-occupied Bosnian town of Prijedor, announced the governments? ...Yes , I am cJiiticizing." unification of all the occupied areas in Bosnia and Croatia Sommaruga indirectly attacked U.N. Secretary General and the establishment of a common currency and a common Boutros Boutros-Ghali, by defending Mohamed Sahnoun, militia. The Chetniks have occupied-and ethnically an Algerian diplomat who resigned in late October as repre "cleansed"-70% of Bosnian territory and a sizable part of sentative of the U.N. relief program in Somalia after a violent Croatia. At that meeting, the president of the so-called Serbi row with Boutros-Ghali. "I send him publicly my solidarity," an republic of Bosnia, Radovan Karadzic , threatened to with Sommaruga said, criticizing those who use humanitarian ac draw from the U.N.-sponsored peace talks in Geneva, "until tivities to "pursue political interests." the actual existence of the republic [the occupied areas] and Formerly paying lip service to the peace negotiations, the nation's right to self-determination is taken as the basis Serbian strongman Slobodan Milosevic is now giving his for the talks"-i.e., either the U.N. recognizes and accepts support to the pan-Serbian state·in the occupied areas. Milo the conquest and the genocide of the non-Serbians, or they sevic is, in this way, repudiating the agreement signed with will sabotage the peace talks . the U.N. at the beginning of thiS year. That agreement states On Oct. 29, the Serbian forces captured the Bosnian city that the Croatian territory occupied by force remains part of of Jajce. There followed a three-day procession of civilian the internationally recognized epublic of Croatia. ' Rj Croats and Muslims who escaped on foot, the victims of terrorism perpetrated by the Chetnik gangs. The Yugoslavian Army master plan But the genocide is not an issue for the U.N., which is "What we are seing now is!the final implementation of focused on making sure that the flow of victims takes place the secret master plan prepared by the Yugoslavian Army without trouble. The reaction ofthe U.N. peacekeeping forc many years ago," said Maurizio Blondet, correspondent for es has been to ask Croatia to accept more refugees, victims the Italian Catholic daily A vvenire and one of the top experts of ethnic cleansing. Croatia, badly damaged from the war, on the conflict. Blondet has personally followed the war; he is incapable of taking in more than the 700,000 refugees it has been shot at, his hotel room in Sarajevo has been bombed, has already accepted. and he has been arrested by the Chetniks in Dalmatia. 'This plan is known," he said. "The Slovenian authorities Some are outraged say they have the original documents proving it. The plan is This attitude of the U. N., and its acceptance of Serbian the following: In case of a third world war or in case of an genocide, provoked a strong reaction from the president of internationalcr isis that threatened the federal state, the Yugo the International Committeeof the Red Cross, Cornelio Som slav Red Army would be deplo)!ed to annex, by force, large maruga. In former Yugoslavia, he said on Nov. 3 from Tunis, parts of the territories of the non-Serbian republics. And this "what the governments should have done was to prevent is what they are realizing under tbe eyes of the world, without attacks on the population. How can such ethnic elimination meeting any resistance, using genocidal means. 32 International EIR November 13, 1992 "It took so long because the Serbian Army, contrary to unarmed civilians. But the U.N. was only interested in pre the propaganda, besides having very bad soldiers-cruel, but venting Croatians from getting weapdns." cowardly-also has very bad generals. It is not capable of deploying on two different operations at the same time. And 'Greater Serbians' make thei" move this despite the incredible abundance of weapons and war ma Milosevic's decision to make a Ipush to consolidate a teriel. At the beginning of the war, for example, the Federal Greater Serbia has began to sink in, even among diplomats. Army had more war planes than France. What you see there On Nov. 4, one of the U.N.'s Geneva officials confided to is the realization ofthe Greater Serbia, and the United Nations reporters: "There is a growing feelin$ that Serbs across for and the West did not really move a fingeragainst it. Possibly mer Yugoslavia have decided that the time has come to create what Serbia is preparing to do-with the complicity of the their 'Greater Serbia' and to hell with what the world thinks." internationalcommunity-is to call one day for a referendum "Milosevic," �xplains Blondet, "pas toyed with interna in the occupied areas. The Serbians will be, of course, the tional opinion, or maybe there was . division of labor. He majority, or, rather, the only inhabitants, because Bosnians needed to gain time to let his troops Jmplement the plan; all and Croatians have been killed or expelled. " the rest was a means to guarantee that goal. As shown by the case of Milan Panic, who now has �een brutally put in his Opposition undermined place. Panic has been the best alibi fot the crimes of Milosev The Serbian population is not unified under the insane ic. Now the alibi is no longer needed;" leadership of Milosevic. There is a large potential for resis Panic is the nominal prime minister of the so-called Yu tance, but it does not receive any support from the West. goslav Republic, i.e., Serbia, Mont¢negro, and the captive Says Blondet: "Already in 1990, the leaders of the student Kosovo region. Panic, a California:milliona ire, arrived in movement in Belgrade told me: Europe will be shocked by Belgrade with the praises of the U.S. I State Department to be the bloodbath that is going to happen! They were desperate. appointed prime minister, . in one of tJ:te biggest media stunts They were ready to do anything to stop a war that they consid of the war. flanic, who got his positif>nthanks to Milosevic, ered unjust. Many refused to fightfor Milosevic; the level of boasted from the beginning that he w�uld stop the aggression desertion is very high. It is high especially among the most and establish a democratic Serbia bas�d on the U . S. Constitu educated members of the military . For example, though the tion. In the meantime, having coveted the public relations Federal Army can count on 400plan es, in reality only a few flank, Milosevic was free to continu� with his plan. can be used to bomb the population, fortunately. They are Recently, Panic opposed the et�ic "cleansing" and the flownby 60-year-old colonels, old communists. The majori creation of a state in the occupied tetritories. And suddenly, ty of the pilots have refused to bomb civilians. on Nov. 2, in a 93-24 vote of no-con�dence against him in the "All this shows a strong potential for internal dissent, lower house of parliament, Panic's Political life was almost which the West has refused to help or to use. The gang ended. Many parliamentarians sto� up to label Panic as "an leaders, the ultra-fascist groups used by the army, like the American spy" or "a madman." "I atcuse him in advance of infamous Seselj , also terrorize the Serbian population. These being the likely culprit for a civil war in Serbia," screamed gangs hold as hostage a large part of the Serbian population, a close crony of Milosevic, the isocialist deputy Brana especially in the large urban centers. Large parts of the Serbi Zmcevic. Panic was spared the day: after in the Senate by a an popUlation oppose this war and the hysteria of 'Greater single vote-IS-17. It is neverthelc:tss clear that not even a Serbia,' but it has been abandone EIR November 13, 1992 International 33 SchillerIn stitute meets in Moscow, poses alternative to IMF austerity by Konstantin George The Schiller Institute held its first-ever conference in the and a member of the Karabakh Committee; university profes Russian capital Oct. 30-31, co-sponsored by the Russian sors from Russia and Ukrainej journalistsfrom Radio Mos State Humanitarian University and the Ukrainian University cow and a leading Moscow dalily, Moskovski Komsomolets; in Moscow. The historic meeting was held on the premises of a representative from the Diplomatic Academy of the Russian the Russian State Humanitarian University, within walking Foreign Ministry; and a high-ranking anti-shock therapy rep distance of the Kremlin. resentative from a Russian ministry, who has lobbied for The purpose of the conference was to present the pro the Russian governmentto fur1d great infrastructure projects grams for comprehensive Eurasian-wide and global develop along the lines recommended by LaRouche and the Schiller ment, initiated by Lyndon LaRouche, to reverse the world Institute. downslide into a new Dark Age. With Russia now at a cross The conference was co-cllaired by Dr. of Philosophic roads, such an intervention is essential to shape the policy Sciences Prof. Taras Muranivsky, rector of the Ukrainian course of the former Soviet republics, toward peace and secu University in Moscow, and AI1iI1oHel lenbroich of the execu rity based on economic progress. This means pushing tive board of the Schiller Instit�te in Germany. The proceed through a positive alternativeto the "shock therapy" program ings were opened by Prof. Dt. Arkady Romanenko of the of the International Monetary Fund (lMF) , which is now Russian State Humanitarian University. being implemented by the Russian government, with disas trous consequences. The collapse of the Bretton Woods system Schiller Institute founder Helga Zepp-LaRouche, the The conference opened with a presentation by the director wife of the imprisoned American statesman, sent a message of EIR N achrichtenagentur, MichaelLie big, who proved that of greeting to the conference, emphasizing that humanity is the world economy is in a breakdown crisis, that a new Great confronted with a global crisis, and that no solution can be Depression is a present reality and not some "future danger." found to any nation's individual problems unless a global He documented the collapse ofthe postwar Anglo-American approach is taken. Bretton Woods financial system, and the destruction of the "We are already in a Thirty Years' War," she said, citing real economy this has caused in Great Britain and America. the unspeakable genocide being committed with Anglo The adherence by westerngov�rnments to this bankrupt sys American blessing against the Bosnians, the wars engulfing tem, he showed, has brought depression to all the industrial the Caucasus and Central Asia, and the imminent threat of countries. The presentation ha 34 International EIR November 13, 1992 organization of industrial leaders, al1nounced its agree Russian crisis heads ment, after a meeting with President:Yeltsin, that a new government will be formed on the basis of a Civic Union toward a power shift drafted,"anti-crisis economic program." The content of that program has not been revealed. Y eltsin will meet A decisive power shiftis being organized in Moscow by again with the Civic Union on Nov. 14. the military-industrial complex, which already controls A crucial component of the arra�gement worked out the single most powerful Russian institution, the Russian between Yeltsin and the military-ind)1strial grouping can Security Council. By sometime in December, they will be seen in his tough statements and a!:;tions in the conflict extend their power to control the Russian government. that has erupted in the Russian Fe rates, committing every crime up to and including the slaugh the growth and technological advanCl!mentof the real econo ter of many tens of millions of people, to collect the debt. my: to infrastructure construction projects, and for equip The audience was shown how the Third World has already ment and other purchases to get modernindust ries and agri paid, in the last 10 years, twice the amount it owed back in culture going. 1982, leaving it with a debt burden double that of 1982. Tennenbaum explained how this program is not inflation George stressed that breaking with the IMF and freezing ary, since the real wealth it createsj after an initial period, the debt was not a financial question, but a moral question, becomes far greater than the cost in�urred. This is no "leap upon whose resolution millions of Russian lives depend. into the void," but a tested programithat works. Every time Hamiltonian banking, dirigist meth�ds of state support for The LaRouche program industria1capitalist growth have beeniemployed, the economy The second day of the conference opened with a presenta in question has undergone breathtaking rates of sustained tion by Dr. Jonathan Tennenbaum, president of the German growth. Examples include the young United States, the late- Fusion Energy Forum, and co-author with Mr. LaRouche of 19th-century policiesof Russian Finance Minister Count Sergei a book-length development program for Eurasia, Ein Witte, and in the modernperiod, the Germanpostwar "economic Wirtschaftswunder fu r Osteuropa, Das Productive Dreieck: miracle" and France under Gen. Chatiles de Gaulle. Paris-Berlin-Wien (An Economic Miracle fo r Eastern Eu The next speaker was a Moscow scientific researcher, rope, the Productive Triangle: Paris-Berlin-Vienna). Dr. Viktor Petrenko, a member of tljeSchil ler Institute, who Tennenbaum presented the policies of Hamiltonian na introduced the forthcoming firstRUSISian-la nguage edition of tional banking, in answer to what is perhaps the most often the physical economy textbook i authored by Lyndon asked question in the nations of the East: If no aid comes LaRouche, So, You Wish to Learn, All About Economics? from the West, how can the necessary, huge infrastructure After Dr. Petrenko's presentation,i the conference partici projects and industrial-agricultural modernizationdescribed pants received a copy of the proofs of the Russian-language in the LaRouche-Tennenbaum book be funded? As Dr. Ten LaRouche book. nenbaum detailed, the state can act in a sovereign manner A full report on the proceedings of the conference is being and establish a national bank, as Alexander Hamilton did, to prepared by Rachel Douglas, and �ill be published in EIR issue credits to the state, banks, and enterprises, to finance after her returnfrom Moscow. EIR November 13, 1992 International 35 Middle East Institute conference targets 'economic nationalism' by Our Special Correspondent The imposition ofInternational Monetary Fund (IMF) stabili that to understand an econoQIY requires understanding the zation and structural adjustment programs in the 1980s was social contract and the cultu� underlying it. To change an the firstopening in imposing economic "liberalism" and pri economy also requires changing a culture and institutions vatization in the Middle East. As a result, the economic associated with it. nationalism that had previously characterized the region is The region, she reported, bas been characterized by three ending. So said Prof. Karen Pfeifer in her address to the sequential cultures and associ�ted economies. The first cul 46th annual conference of the Washington-based Middle East ture was that of unimpeded European imperial influence. Institute on Oct. 16-17. Liberalism and privatization means The second culture was that df economic nationalism, now making the region into a cheap labor pool for Anglo-Ameri coming to an end, when Euro�ean influencewas restricted. can/French contractors, World Bank Middle East regional The third culture is that charac1\erizedby liberalism and priva director Ciao Koch-Weser indicated. Because these policies tization, introduced into the rejgionby the IMF. are still resisted, the promotion of separatist movements like Unimpeded European influence began to decline in the the Kurds, and the pitting of Islamicists against secularists early 20th century, she said. I�s successor, economic nation and workers against industrialists, were among those tech alism, best characterized mod�rnTurkey , Egypt, and Alge niques recommended to realize their success. ria. Modem Turkey was formed by Mustafa Kemal Ataturk The Middle East Institute is a de facto arm of the New in the 1920s, when he threw out the Europeans and formed York Council on Foreign Relations and functions as the U. S . an industrial state. The 1952 �evolution in Egypt overthrew establishment's mouthpiece for Middle East policy. The 200- the old ruling dynasty of King farouk; the pan-Arabist Gamal member audience was largely drawn from former or active Nasser came into power. Algeria came into being in 1962 duty State Department, CIA, and Pentagon officers, as well with the successful completio� of the Algerian war against as representatives of affiliated university departments and French colonialism-Houari �oumedienne became head of think-tanks. While the institute apparently receives a sub state. I stantial amount of its funds from the (British-run) Sultanate What was common to th� systems forged in Turkey, of Oman, and is largely run by State Department "Arabists," Egypt, and Algeria, she said, ",as asocial contract where the it does not shy away from retailing Israeli propaganda lines. population expected their sta�ard of living to rise. In their The Anti-Defamation League of B'nai B'rith, and the Wash heyday, these states emphasiz,edbuilding up infrastructure, ington Institute for Near East Policy, an arm of the American health care, industrialization,!basic resource development, Israeli Public Affairs Committee, were two of the 10 organi and central planning. This was Ithe type of Third World think zations which maintained official book tables at the event. ing which would lead every state to assume that it had to have Panel sessions of the conference analyzed the Middle its own steel industry. East peace talks; the new Central Asian states; Kurdish insur Pfeifer noted that as impressive as the developments have gency; Islam and politics; and the politics of economic poli been in each of these three states, the social contract failed, cy. It was in the latter panel that the conference speakers and, consequently, the system failed. By the late 1960s, made their imperial policy most clear. Egypt was in trouble; Turkey ",as hit hard in the late 1970s, as was Algeria. The enemies: Ataturk, Nasser, Boumedienne The major reason each o�e of these states failed, and Karen Pfeifer, a professor of economics at Smith College others that imitated them, is that they remained import-de and an editor with the Mideast Research and Information pendent, especially because they had to import advanced Project (MERIP), spoke on the best way to impose privatiza technology to meet their ambitious development objectives. tion and IMF structural adjustment programs on the Middle By depending on fluctuatingworld markets for export earn East. Introducing herself as a student of Karl Polyani, the ings to finance these imports, these states were thrust into a founder of so-called economic anthropology, Pfeifer noted crisis, especially because the� had to borrow from interna- 36 International , EIR November 13, 1992 tional financial institutions to sustain their development. accelerate these reforms since, as the goal of strategic self All this led to use of IMF standby credits, and the imposi sufficiencyfades away, Arab govemments will become more tion of stabilization programs and structural adjustment pro willing to integrate their economie& with global markets and, grams. By accepting such an external intervention, these of course, to cooperate with their :neighbor Israel. This, he states were forced to open up their societies to western efforts said, represents an enormous windPw of opportunity. A key to impose liberalism and privatization. By imposing a tighter feature of such regional cooperation is allowing for labor nwnetarypolicy , and a policy of domestic recession, and by mobility, such that abundant cheav labor-for example, in devaluing their currencies, these states set themselves up for Egypt and Jordan-<:anbe wedde EIR November 13, 1992 International 37 LaRouche warns: Shubeilat case is parto f scheme to breakJo rdan The trial on charges of sedition against Jordanian parliamen the Jordanian member of Parliament. tarian Laith Shubeilat "is part of a strategic shiftdictated by Typifying the coercive environment in which the show the United States in concert with the Israelis and certain trial is being held, Maj. Gen. MollammedMango , the court's British forces," independent presidential candidate Lyndon public prosecutor, told reporters 'in a prepared statement on LaRouche stated Oct. 26. It is "an Anglo-American policy, Oct. 25 that he is considering prosecuting a group of 11 primarily a U.S. policy, involving a shift by the government parliamentary deputies, together With trade unionists and po of Jordan into alliance with Saudi Arabia and the United litical activists, for their public driticism of the prosecution States against Baghdad." of the trial. Jordan's King Hussein had been one of the few Arab The trial ended Nov. 4, one day afterthe U.S. presidential heads of state to maintain ties to Iraq during the U.S.-led war election (see accompanying interView). against Baghdad in 1991. The current U.S. operation against Jordan entails forcing the king to shiftpolicy and align Jordan The strategic context with Egypt, Saudi Arabia, and Israel in operations to bring Shubeilat was arrested on AUig. 31, when King Hussein about the overthrow of Iraqi President Saddam Hussein, and was in the United States receiving treatment for cancer. While to prepare new atrocities against Palestinians in the Occupied he was convalescing in the United States, Egyptian President Territories and elsewhere. The verdict and sentencing of Shu Mubarak mediated a meeting between King Hussein and Sau beilat, expected on Nov. 10, could well be the trigger which di Arabia's ambassador to the United States, Bandar bin Sul sets off such a chain of events. Among the expected mid tan. Rumors have since circulated that King Hussein will meet term results of such developments is the destabilization of Saudi King Fahd when the Jordanian monarch makes his ex Jordan itself, long an Anglo-American/Israeli objective. pected visit to Saudi Arabia later this year. The summit would On Oct. 26, the London Financial Times, quoting "pal mark a full rapprochement betweelnJordan and Saudi Arabia, ace sources" and "diplomats" in Amman, predicted that King an event many Jordanians would object to. Hussein would "dissociate himself publicly from Saddam The pressure for such a summ.t has been steadily mount Hussein, while continuing to express support for the Iraqi ing. On Oct. 14, King Hussein visited Cairo and met with people." According to unconfirmed reports, the Anglo President Mubarak. In the last week of October, King Hassan Americans plan to establish the regional headquarters of the of Morocco conducted a whirlwind tour of Jordan, Syria, Iraqi opposition forces on Jordanian soil. Saudi Arabia, Egypt, and, probably, secretly, Israel. Hassan, a backer of the war against Iraq, met with King Hussein Why Shubeilat? on Oct. 28, to arrange the Hussein-Fahd summit. A related Shubeilat was not only a strong and popular opponent of purpose of the meeting, and of Hassan's tour, was to put the the U.S. war against Iraq-the war in which Egypt and finishing touches on a new Camp David-style deal among Saudi Arabia were leading participants-but has also been Israel and Syria and Jordan. a strong advocate of the cause for a Palestinian homeland. In addition to such strong-arming, talks with the London Shubeilat, who has fought against Jordan's obeisance to the Club of creditors for rescheduling' part of Jordan's $7 billion austerity demands of the International Monetary Fund, is debt, which is 181% of its Gross National Product, collapsed now on a hunger strike, in repudiation of the "secret ses in September. With an economy 78% dependent upon trade, sions" held by the prosecution and the judge on Oct. 17, at Jordan's current account deficit stood at $704 million at the which no defense counsel was present. The trial, which is beginning of this year. being held before the military-run state security court, has Prior to the war against Iraq, Jordan had received substan been rife with such irregular actions on the part of the tial Saudi grants, as well as remittances from its workers in prosecution, and the government"star witness," a convicted the Persian Gulf oil fields. These ,workers, and hundreds of agent of the Israeli Mossad, recanted his testimony against thousands of Palestinians employed in the Gulf, have been 38 International ErR November 13, 1992 returned or fled to Jordan, boosting unemployment to over one-quarter of the work force. Moreover, the continuing Interview: Maitre Claude Pernet blockade on Jordan's only outlet to the sea on the Gulf of Aqaba, allegedly to prevent neighboring Iraq from evading the United Nations embargo, is destroying the Jordanian economy. Iraq had been Jordan's largest trading partner by far, prior to the war. The Israeli role The Shubeilat trial also takes place against the backdrop 'Shubeilat trialI is a of continuing U.S. -orchestrated talks between Israel and rep resented Arab nations. On Oct. 26, the Israelis underscored travestyof justice' their recalcitrance with a series of heavy attacks into southern Lebanon. With one tank column moving north of the Israeli Maitre Claude Pernet, a prominent Paris trial lawyer and so-called security zone, the Air Force carried out repeated professor of international law, traveled to Amman, Jordan air strikes against Palestinian villages and camps in Lebanon. on Oct. 5, accompanied by Mrs. Muriel Mirak-Weissbach The attacks were in retaliation for attacks on the Temple of of the Schiller Institute. As observrers, they watched several the Patriarchs, allegedly by Islamic fundamentalist terrorists. days of proceedings in the trial of lj,aithShubeila t, the Jorda It is said that the Israelis have repeatedly threatened to launch nian parliamentarian who was arrested on Aug. 31 and hot pursuit strikes against Jordan. charged with conspiring against the state (see previous ar On Oct. 29, Jordanian negotiators at the "peace talks" in ticle). Washington announced a "breakthrough" in their negotia On Oct. 31, the State Securi�y Court prosecutor Maj . tions with the Israelis, one day after King Hassan met with Mohammed Hijazi wrapped up the: case, reviewing evidence King Hussein. produced by state witnesses, and 4alling for a guilty verdict Reportedly, a common statement on the agenda required against all four defendants. Major Hijazi pointed out that to achieve a Jordanian-Israeli peace has been accepted. The some of the charges carry the d¢ath penalty, but said he document states that the aim of the negotiation is to reach a would leave the sentence up to the court, i.e., the three formal peace treaty with Israel, as Egypt had done in 1978. military judges. Although the document calls for a comprehensive Arab Hijazi surprised the court by omitting reference in his Israeli settlement, it does not mention the issue of Israeli summation to the "secret" witnes$ who purported to be the annexed East Jerusalem, nor does it explicitly require the bag man bringing $200,000 from: Iran to Shubeilat. It was Israelis to withdraw from the Occupied Territories before a in protest against this Syrian witness that the attorneys for settlement is reached. Shubeilat and defendant Yacoub I Qarrash, also a member Predictably, 10 Palestinian factions based in Damascus, of Parliament, had walked out. aoth rejected their court Syria, led by the Popular Front for the Liberation of Palestine appointed lawyers, and began a �unger strike on Oct. 17. and Hamas, denounced the breakthrough as "destructive," Hijazi refused to comment on his omission of such an impor and called on popular forces in the Arab and Islamic world tant witness. He tried to prove tha� Shubeilat is the leader of to "hold the Jordanian regime responsible." By discrediting the secret insurrectionary organijzation, by referring to a itself through such deals, Jordan is being set up for an Israeli policy paper of the group, in the handwriting of defendant linked destabilization further down the line. Israel asserts Ahmad Ramzi Al Ayoubi. Ayoub� had testifiedthat Qarrash that Jordan, not the West Bank, is the proper location for a had dictated it to him, but he belielVedLaith to be the author, Palestinian homeland. "because the sheikh is not so smart." "The entire Israeli intelligence pack" is behind the opera Lawyers for defendants Ayoubi and Hamid Sadeq tions against Jordan signaled by the trial of Shubeilat, said Dkedik said their clients were guilty of belonging to the LaRouche in his Oct. 26 memorandum. "This has essentially group, but intended to fight in th¢ Intifada (uprising) in the made the Kingdom of Jordan, at least for the moment, virtual Occupied Territories, "which is legitimate." Shubeilat had ly an Israeli strategic pawn, together with the Saudi Arabian no legal summation in his defense, as he had rejected the royal family, which is very much a part of this operation, court-appointed lawyer, who askred to be excused from the whether on its own, or because of its relationship with the case as a result. The prosecutqr instead ordered him to Israelis." From the United States side, said LaRouche, the present a summation when the court reconvened for its final operation against Jordan "also has to do with the fact that a session on Nov. 3. Then the cQurt recessed; a verdict is Clinton administration is more Zionist in this respect than is expected on Nov. 10. Tel Aviv or the Israeli governmentin Jerusalem." Extraordinary security measures were introduced at the EIR November 13, 1992 International 39 Oct. 31 session, preventing all but lawyers, press, and family EIRNA: Is the trial proceeding in conformity with recog from reaching the court, to prevent pro-Shubeilat demonstra nized standards? tions. Pernet: An attempt is being made to have things look order In the defense summation-submitted against Shubei ly. The sessions are held in pu�lic, the defense is allpwed lat's will-the court-appointed lawyer essentially rejected to speak; but behind this formal facade of correctness, the the prosecution's charges. He said the prosecution had failed actual content of the law is bei�g violated, e.g.: . to prove the existence of the illegal group, and had insuffi • At every hearing, witnes/ies and incriminatory evi cient evidence to support any of the ch&rges. The other dence wereproduced by Maj. Mohammed Hijazi, the prose parliamentarian was expelled from the court after trying to cutor, under conditions where the defense could not realisti present his own defense, as was his wife, for shouting in the cally examine said witnesses and evidence. Thus were the courtroom. Heavy security was again visible. rights of the defense trampled t4>0n. The farce of a trial has now ended. Laith Shubeilat is • The depositions by prose¢ution witnesses were jum- ' continuing his hunger strike. bled and extremely vague. Maitre Pernetgave the following interview to EIR Nach • One of the main prosecutjon witnesses, Mohammed richtenagentur (EIRNA). Moghrabi, jailed for spying for I.rael, actually withdrew his deposition during the hearing; tile stated that he had been EIRNA: Could you tell us a little about yourself and how offered a reduced sentence if he .greed to lie, and claim that you became involved in the Shubeilat affair? Shubeilat was a member of the �slamic Liberation Front! Pernet: I'm a practicing lawyer in the Paris Appeal Courts, • The expert witnesses wer� scarcely credible, for two and I also teach internationallaw at university. The associa reasons: tion of which I am vice president, "Law of Nations versus a) these so-called experts were in fact men from the Law of Force," denounced the western states' behavior in intelligence services, who lacked any real professional the Gulf war, the U.N. embargo against Libya, and the status; genocide which Serbia is perpetrating against Croatia and b) in the case of the alleged afms caches, the incriminat Bosnia. I was invited to Amman by the Committee to Sup ing evidence was never produc�d, and other prosecution port Laith Shubeilat, where I took part, as an observer, in evidence was only shown to t� defense at the very last several of the decisive hearings in the trial of the MPs minute. I Shubeilat and Yacoub Qarrash before the State Security At every hearing, the pros¢utor would tum up with Court. This was from Oct. 5-1 1. fresh evidence, which the defe�se could not properly ex This trial is a travesty of justice; it defiesall law , and for amine. Jordan, it is nothing but a political farce. For the first time in the Kingdom of Jordan, the court It's a travesty of justice for several basic reasons, all of admitted tape recordings as evi 40 International EIR November 13, 1992 enforcement and investigatory tool to capture and fully prose cute anyone who commits violence against the peace process . . . . No one is going to escape." Salvadoran'pe ace FMLN wants power, not peace plan' breaks down Despite media claims that "bo$ sides are at fault" for failing to comply with the peace acc United Nations upon El Salvador, has opened the gates of ons they turned in were in poor conditionI , with broken muz- war in that country once again. zles and parts missing, and seemed more a threat to the The FMLN was clear from the outset that it viewed the shooter than the target." . agreement, hailed as a model of supranational intervention The FMLN has insisted that it will not tum over all weap for dealing with Marxist insurgencies on the continent, as a ons until Army "pUrification" has begun, and until it receives time-buying device, while awaiting a communist comeback legal title to some 600,000 acres of land-12% of Salvadoran globally. At the same time, pressure wielded by the U.N. in national territory-it claims to hav'1 won. One-fourth of that the guerrillas' favor has won the FMLN the power it never land is in El Salvador's richest coffee-growing region, and won on the battlefield. could prove an important source o� wealth for the guerrilla While shooting between communists and their opponents movement. Said Joaquin Villalobos., one of the FMLN's five is still sporadic, the crumbling of the U . N. accord confirms senior leaders, "What interests us now is economic power; what EIR has been saying all along: that the "peace pact" is we demand what we won." a recipe for war, because it is premised on the elimination of The FMLN's stall tactics, whilei encouraging its support national sovereignty, and of such national institutions as the ers to occupy territory through land seizures, makes it clear Armed Forces, and therefore is inherently unstable. The col that the guerrilla group's objective ijsnot ending the war, but lapse of this experiment in supranational manipulation was capturing the political , military, and economic power it has always just a matter of time. always sought. This was made explicit in a statement issued by the FMLN's diplomatic represeptative to Ibero-America The guerrillas' protectors at the time of the peace accord signiJ1lgin January of this year. On Oct. 26, the United Nations approved the FMLN's Declared Miguel Angel Amaya Cu�dra, "We are negotiating request for a postponement of its demobilization deadline. as equals, as one power to another; the FMLN did not accept At the same time, the U.N. 's Ad Hoc Commission, mandated nor will it accept a demobilization, but rather a reconversion to investigate alleged human rights abuses by the Salvadoran of its forces, where its combatant$ will belong to the new military, presented the government with a list of over 110 Civic National Police and will alsq join the productive sec high-ranking military officers, including Minister of Defense tors; and the FMLN will become a �olitical party." General Ponce and his deputy minister, whom they demand The FMLN has every hope that its power play will be ed be purged or transferredwi thin 30 days. President Alfredo assisted by the new U.S. administration of Bill Clinton. This Cristiani declared in response on national television on Oct. was stated by several representative� of the Siio Paulo Forum, 28 that he would proceed no further with the government's a collection of the continent's left1terrorist remnants which treaty commitments to reduce and restructure the Armed met in Buenos Aires in late October to give its endorsements Forces until the FMLN was fu lly demobilized and its weap to both Clinton and Peru's Shining Path. They said that the ons surrendered. Democrats are "more accessible" than the Republicans. In answer to the FMLN's demand that U.N. Secretary Also assisting El Salvador's "p�ace process," it appears, General Boutros Boutros-Ghali convince Cristiani of "his will be the newest Nobel Peace laut:eate, Rigoberta Menchu, grave error," two U.N. mediators were flownto El Salvador. an internationalrepresentative ofG1I1atemala' s narco-terrorist Also coming to the FMLN's side was U.S. Assistant Secre group URNG, whose "indigenist ri�hts" campaign serves as tary of State Bernard Aronson. Ostensibly addressing death a cover for the new world order'� attack on the sovereign squad threats against FMLN leaders, but in fact directing his nation-state. Menchu has already fequested a meeting with warning to any Salvadorans who would oppose the U.N. U.N. Secretary General Boutros-Qhali, to seek a mediating scenario, Aronson threatened that "the United States and the role in the "peace efforts" of El Salvador, Guatemala, and entire international community will use every possible law wherever else she may lend her ser}'ices. EIR November 13, 1992 International 41 u.s. policy on hemispheric s�curity Washington wants to give the OAS "blue helmet" powersto enjo rce its new world order. Excerptsjro m an Oct. 17 memorandum by EIR. I. Overview of policy II. Chronology The mid-October 1992 trip of Gen. George A. Joulwan, Nov. 21, 1990. Gen. George A. Joulwan is named com the head of the U.S. Southern Command, based in Panama, mander of the U . S. Southern Command, Panama. to the Southern Cone of Ibero-America, is part of Washing Dec. 4, 1990. Argentina'� ambassador in Brazil, Jose ton's political preparations for the upcoming extraordinary Manuel de la Sota, proposes a Southern Cone alliance in session of the Organization of American States (OAS), which defense of democracy, in whiah sanctions and even armed will probably commence on Nov. 23, 1992 in Buenos Aires, interventions would be used by members of the alliance Argentina. against any other member country which failed to maintain The U.S. policy objectives for this meeting were made a "democratic" system. De la Sota made the proposal at a clear at the June 3-9, 1991 Organization of American States luncheon at which Brazilian President Fernando Collor de General Assembly in Santiago, Chile, and again at the OAS Mello and 21 other Ibero-American and Caribbean ambassa meeting in the Bahamas in May 1992: dors to Brazil were present, during U.S. President Bush's 1) reform the OAS charter to give that body "intrusive visit to Brazil. powers" in member states, should "democracy" be threat Jan. 11, 1991. London's Financial Times hails Argen ened in any country; and tine efforts to "modernize" their armed forces, and says Fi 2) restructure the Inter-American Defense Board (1ID), nance Minister Domingo Cavallo is "trying to interest his to convert it from an advisory body on military matters into neighbors in a regional security pact that would keep the the OAS's deployable military force, on the model of the generals out of politics and busy with non-threatening duties, United Nations' "blue helmets." such as protecting the environment and stamping out drug In Ibero-America, the period of January through June trafficking. " 1991 saw a concerted policy drive by the United States, with March 1991. Argentine Foteign Minister Guido di Tella strong backing from Argentina and Venezuela, to launch the holds secret meetings with his Chilean and Brazilian counter total transformation of the OAS and the 1ID along the lines parts to elaborate a strategy for forging a military wing of described in the brief chronology below. But the September the Southern Cone common market known as Mercosur, to 1991 military coup in Haiti made it clear to Washington that enforce "democracy" within the region, while simultane not everyone on the continent would go along with the new ously reducing both troops and conventional weaponry with policy without protesting. And subsequent developments in in each nation. The Argentine daily Pagina 12 reports March Venezuela (February 1992) and Peru (April 1992) served to 13, 1991 that the goal is to accelerate the "dismantling of the underscore that point. hypotheses of conflict" between neighboring countries. In the last few months, Washington has faced: Head of the Joint Chiefs of Staff of Argentina Adm. • renewed coup concerns in Venezuela; Emilio Osses echoes Di Tella's proposals, saying it is neces • the emergence of nationalist civic-military movements sary to "assume that the Armed Forces model that has been in various countries in the region; and accepted throughout most of this century has come to an • a terriblethreat to Bush's entire new world order with end," and that "modernization"of the forces is required with the example provided by Brazil's peaceful removal of its in the framework of reform of tbe. state and the "new existing corrupt President from office. international context." The essential role of General loulwan has been to silence Argentina's Ambito Finantiero newspaper reports that these protests of the Ibero-American militaries. His deploy behind these moves is the U.S� strategy to prevent internal ments have been the most intense immediately afterthe vari insurgencies which could threaten democracies in the region, ous threats to "democracy" in the recent period. In other and that the U.S. is pushing for a Conference of Southern words, he has been used on several occasions to pressure and Cone Defense Ministers to for$e a Southern Cone Security threaten the Ibero-American armies back into line. This is Treaty to establish specific meChanisms of consultation and the significance of his most recent trip as well. enforcement. 42 International EIR November 13, 1992 April 25, 1991. Former U.S. Defense Secretary Robert determined that the new international order should have an S. McNamara, in a paper for the annual meeting of the World immediate derivative south of the Rip Grande: 'a new region Bank, strongly promotes the concept of such "collective ac al order. ' It would be like killing �wo birds with the same tion" on the model of United Nations intervention in Iraq, and stone that was intended for SaddamIHussein." urges that the OAS be similarly transformed: "Agreement by Opposition by some nations, iricluding Mexico, forces the [U.N.] Security Council that regional conflictsendanger the adoption of a less radical compr EIR November 13, 1992 International 43 Feb. 4, 1992. General Joulwan visits Colombia, where In conversations with Argentine officials, General Joul he tells El Espectador newspaper that "it is a pleasure for the wan tells them the drug problem had become "one of the U.S. Army to help Colombia maintain democracy." Defen hypotheses of conflictthat U.S. political-military strategy is sively, he insists that in cooperation in the war on drugs, the premised on," and that he intended to encourage "the process U. S. Army seeks "not to violate Colombian sovereignty, but of demilitarization of the countries of Latin America. " to defend it." After Joulwan's visit, President Carlos Menem tells a Feb. 5, 1992. Coup attempt in Venezuela against Presi meeting of foreign ministers of , the Rio Group, gathered in dent Carlos Andres Perez. Buenos Aires March 26-27, that the OAS should create a Feb. 26, 1992. U.S. Army Chief of Staff Gen. Gordon security council to intervene in: the countries of the hemi R. Sullivan testifiesbefore the U.S. House Armed Services sphere to "protect democracy." According to the Mexican Committee on the Army budget for 1993. He stresses that daily La lornada of March 27, Menem "reiterated his pro the national defense forces must shift from "an orientation posal that the OAS should have aimultina tional force to inter toward the global Soviet threat to a focus on regional crises vene in cases of coups d' etat. " I and the sources of instability ....We now face a strategic March 28, 1992. Venezuela's daily El Nacional reports environment that requires rapid projection of power--often that Venezuelan President Perea backed Menem's proposal with little or no notice-in reponse to regional crises while for an inter-American military force, but that the Rio Group remaining engaged in vital regions through forward rejected the idea. Argentine Fortign Minister Di Tella states presence." unhappily that "this matter was not brought up." Perez says, Sullivan describes the main threats to U. S. interests as: more frankly: "Unfortunately, in Latin America when we • inimical ideology; defend the principle of non-intervention, we fall into the • amassing arms and technology proliferation; trap of indirectly supporting didtatorships, because when a • regional instability; dictator is installed here, the p�inciple of non-intervention • economic collapse, competition or restrictions; goes in favor of the dictator and not in favor of the people • renegade states (Cuba, North Korea, Iraq , Iran, who lost sovereignty. That is Why I have insisted that the Libya); concept of non-intervention thaJt should prevail essentially • ethnic, religious, and cultural differences; and must accept the presence of supranational rights to be defend • environmental degradation. ed by the region, not as a right of each state but as a right of Regarding Ibero-America, Sullivan says the three great the Latin American region itself. One of those rights is re est threats to stability in the region are: 1) the pervasive spect for popular sovereignty as ¢xpressed at the polls by the effects of drug trafficking; 2) the inescapable demise of au inhabitants of a country, and thatiright should be multilateral thoritarian rule in Cuba; and 3) chronic economic difficulties. ly defended." "Any of these factors could be a catalyst threatening vital Mexico's La lornada of Mwch 26 says that then-Vene U.S. interests." Sullivan concludes, "The Army of today zuelan Defense Minister Gen. :Fernando Ochoa Antich is is focused on no-notice, forcible entry, crisis response to prepared to closely study the idea of creating an intervention conventional regional conflict by means of tailored force ist Ibero-American military fOFce capable of "protecting" packages-armored, light, and special operations forces democracies. from the continental U. S." April 5, 1992. Peruvian President Alberto Fujimori sus March 24, 1992. The New York Times editorially calls pends the Congress and the Supreme Court, in what is widely for the creation of an "inter-American military force" to pro described as an autogolpe, or "self-coup." vide a cover for U.S. military interventions into Ibero May 7, 1992. The U.S. HoUse WesternHemisphere Af America. "There is little time to lose ....In Venezuela, fairs subcommittee holds hearings on the Peru situation, in military nationalists challenge democracy. . . . which chairman Rep. Robert TOItricelli (D-N.J.) says that the "A hemispheric intervention force is more likely to be Peru events are "not simply anOther seizure of power in a accepted if Washington maintains a low profile," the Times Third World capital causing a momentary ripple in relations, adds. "The time has come to create a new inter-American but a growing insurrection with political consequences for military force that could intervene to protect democratic gov the region and further fueling tbe exportation of dangerous ernments from hijacking by armed terrorists." coca for cocaine production in neighboring facilities." March 24, 1992. General Joulwan visits Argentina for Testifying before the subcommittee, General Joulwan three days to hold discussions with high-level government states: "One of my command's strategic objectives is to and military officials, reportedly on joint actions against the strengthen democratic institutions in Central and South drug trade. At the end of his visit, General Joulwan is asked America. When democracy is tQreatened, we need to send a to comment on the New York Times editorial: "I know nothing clear signal to the military that we cannot do business as of this, but it would be a political decision among the govern usual . We have sent such a signal, and I have personally ments of the region and the OAS." made this clear to the military leadership of Peru ....We 44 International EIR November 13, 1992 will continue to assess our involvement with the Peruvian military based on progress made on a return to democracy." May 18, 1992. The OAS meets in the Bahamas, and the discussion centers on the issue of "democracy" in Haiti and Peru . The meeting agrees to tighten the embargo on Haiti , and Peru is pressured to return to "democracy" immediately. Argentine Foreign Minister Di Tella proposes to the as sembly that the OAS charter be reformed by two additional articles: the first, requiring the suspension of non-democratic governments from the OAS; the second identifying the neces sity to fightpoverty . Di Tella's additional proposal for Peru to be immediately suspended from the OAS is not accepted, at which point he urges an extraordinary meeting of the OAS for late 1992, in Buenos Aires, to discuss his proposed changes in the OAS charter. This is agreed to . Di Tella's proposal for OAS reform is co-sponsored by the U.S., and calls for giving the OAS "intrusive powers ," similar to the U.N. 's power of imposing embargoes and send ing peacekeeping forces. A military parade in Bogota. Colombia . La lornada of Mexico reports that the Brazilian and U.S. apart the continent's armed forces and representatives co-sponsor proposals to broaden the concept supranational "blue helmets" force. of "hemispheric security" to include not only weapons con trol and human rights, but also the strengthening of democrat ic institutions, drug-trafficking, the liberalization of trade tioning of U.S. troops in V supposedly to help in " and economies, and protection of the environment. Einaudi fighting drug trafficking and including joint emphasizes that this will set "an exemplary precedent" and coastal patrols with the V I Navy. One of the two that the hemispheric security proposal is "an impressive pro zones mentioned is the southern of Lake Maracaibo, posal for the post-Cold War era which, doubtless, represents an area of vast oil deposits. a significantcontribution not only to the security of the Amer September 1992. General 10ulwanI visits El Salvador. icas, but of the whole world. " Sept. 17, 1992. Argentine Navy Chief Adm. 10rge Ferrer La lornada reports that Einaudi and others sharing the submits a report to President Menem to discuss the "feasibili U.S. view nearly succeed in setting themselves up as a de ty" of establishing a "mechanism of interaction" between the facto OAS "informal security council" without assembly ap Argentine Armed Forces and NATO saying that "Argentina proval . will be the first of the so-called peripheral countries to join Another proposal is presented by a commission of 10 the biggest military organization in the world." nations headed by the United States and including the South Sept. 28, 1992. Argentine For�ign Minister Di Tella ern Cone countries, Nicaragua, Ecuador, and Honduras , gives a presentation in Brussels to the Permanent Council of which urges the 1993 General Assembly of the OAS to take NATO Ambassadors on how Argentine foreign policy has up the issue of transforming the JID into a supranational force realigned itself with the objectives of the western world, and comparable to the U.N. blue helmets. Argentina's Di Tella formally requesting that Argentina's military be permitted to proposes, according to La lornada. that the lID "have a conduct joint exercises with those of NATO. He says that relationship similar to that which each armed force has with Argentina is "introducing reforms into the military structure , the civilian authorities of the states." to be better able to regularly particip te in [U.N.] peacekeep Einaudi summarizes the U.S. views: The postwar pillars ing operations." In response, the c uncil invites Argentine of stability for Ibero-America are democracy, private enter Defense Minister Erman Gonzalez Jnd the chairmen of the prise, and the �AS . He warns that "those who subvert de defense commissions of Argentina's House and Senate to mocracy will remain isolated , will remain without normal address them. diplomatic contacts , without financialassi stance and without Oct. 1, 1992. General 10ulwan visits Venezuela, meets participation in the central activities of the Enterprise for the with President Perez to discuss U.S. assistance in fighting Americas initiative." drugs. 10ulwan comments upon leavling the meeting that the Sept. 18, 1992. General 10ulwan visits Venezuela and U.S. is worried over the drug traffickers ' threat to democracy meets with President Perez. According to the daily El Na and sovereignty, and that he has disc ssed a joint cooperation cional of Venezuela, one topic under discussion is the sta- counternarcotics plan with President!perez. EIR November 13, 1992 International 45 of the bad debt must be written off, and the rest stretched out, as Alexander Hamilton stretched out the U.S. Revolutionary War debt. Japan should then abrogate the Bank for Interna Japan's partyfissure tional Settlements' restrictions� on bank lending, and urge banks to participatein the new physical expansion programs. threatenseconom y LDP 'like Gorbachov' The in-fighting within the LDP does not grid directly, by Kathy Wo lfe one-for-one, on this more fundamental policy debate, but it has made policy impossible to dlarify. The special session of the Japanese Diet (parliament) which The fight "could make the LDP look like Gorbachov," opened on Oct. 30 was gridlocked during its first week by a top Japan-basher Chalmers Johnson of the University of San harsh leadership battle inside the "Takeshita faction" of the Diego told EIR on Oct. 27. "This could be for real. Possibly ruling Liberal Democratic Party. In-fightingin this largest of we'll have something like the Stalin-Trotsky split, or the LDP factions, and related uproar over the Sagawa Kyubin Mao-Liu Shiaoqi split-very broody. " trucking firmscandal , has made it impossible for Prime Min A Takeshita faction split, Johnson insisted, means a split ister Kiichi Miyazawa to pass his $87 billion emergency of the LDP itself. "If they create a new faction, I don't see economic package. how a full LDP party split can be avoided. It's excellent." Miyazawa, put in power by the Takeshita faction, will In fact, Tokyo is in for a lot bfpressure from Washington fall if the Takeshita faction should formally split. This could to try to force the LDP out of power, because Professor John collapse the LDP and the government. As long as the Takeshita son, or one of his proteges, ma)1be appointed U.S. ambassa faction is deadlocked, as it is at this writing, Miyazawa is dor to Japan by the new Clinton administration, National Pub equally helpless to organize a new powerbase or take any action lic Radio reported on Nov. 4. "The end of the Cold War means on the economy. He could follow George Bush out of power that the United States no longe[' has any reason to keep the very soon. "Japan could swing quite sharply toward paraly LDP in power. We don't need them," Johnson told EIR . sis," the London Financial Times said happily on Oct. 29. "If this means loss of powefiby the LDP or that the liberal The real issue here, unreported in the western media, LDPers form a coalition government with the socialists, all however, is the substantial policy disagreement between two to the good," he said. schools of economic thought on Japan's future . Japan's phys The Takeshita factional row began on Oct. 23 when the ical economy, which has been investing $300bill ion a year elders of the faction, headed until recently by Shin Kane in new plant, equipment, and technology for a decade, is maru , named Keizo Obuchi, aide to former Prime Minister fu ndamentally sound. Japan's banks and stockbrokers, how Noboru Takeshita, a