. SIGN -l:he. PErl110Nto make A.lnS_ REPoRTA BLE "" (-\!ool'vsuc.� len) ---" "EIR has commissioned this White Paper to bring the truth on the developing Panama crisis to American citizens and lawmakers, so that decisive action can be taken to stop this campaign, before the United States faces a new strategic crisis on its southern flank."

White Paper on the Panama crisis Who's out to destabilize the U.S. ally, and why

While the New York Times and other major media pump out "news" on Panama to fit these plans, North Carolina's Sen. Jesse Helms, the U. S. State Department, and sections of the Reagan administration have joined in a campaign to overthrow Panama's government and Defense Forces, allegedly because they have been taken over by the narcotics trade. Therefore, the United States must bring to power PanamA's" democratic opposition" movement. As this report shows, the principal figures in the "democratic opposition" movement are drug:money launderers, lawyers for cocaine and marijuana traffickers, terrorists, and gun-runners. Their presidential candidate, Arnulfo Arias Madrid, is a life-long Nazi.

The report includes: • A "Who's Who" in the drug. mob's campaign to overthrow Panama's government; The facts on how "conservative" Jesse Helms has joined with 100 pp. • State Department one-worlders to implement a destabilization Order your copy today! campaign designed by the U.S. Liberal Eastern Establishment; Price: $100 • How David Rockefeller's Trilateral Commission and the New York Council on Foreign Relations created the "off-shore" From banking center in Panama, to handle their debt-and-drug loot­ ing of South America; �TIillNews Service • Proposals on how the United States can help secure Panama, P.O. Box 17390 through a series of Canal-centered development projects, wbich Washington, D.C. break Panama's economic dependence on the "off-shore" 20041-0390 economy r4.n by the international banking cartel. Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor-in-chief: Criton Zoakf,Js Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke. Nancy Spannaus. Webster Tarpley. Christopher White. Warren Hamerman. From the Editor William Wertz. Gerald Rose. Mel Klenetsky. Antony Papert. Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Joseph Cohen Director of Press Services: Christina Huth INTELLIGENCE DIRECTORS: elga Zepp-LaRouche, who founded the Sell-iller Institute two Africa: Douglas DeGroot. Mary Lalel'/Ie H Agriculture: Marcia Merry years ago to stop the "decoupling" of Western Europe from the Asia: Linda de Hovos United States, reported to us from a recent visit itO Europe that the Counterintelligence: JefIre.,· Steinberg. Paul Goldstein Atlantic Alliance is now drifting apart at an alarming pace, as the Economics: David Goldman European Economics: William Engdahl. elements of a "New Yalta" deal are being put into place. This process Laurent Murall'iec is documented in this week's International report ih articles on Spain, Europe: Vivian Freyre Zoakos Ibero-America: Robyn Quijano. Dellllis Small Italy, and Germany; we especially draw your attention to the step­ Law: Edward Spannaus ping-up of Soviet irregular warfare against our allies (see page 47). Medicine: John Grauerlwl:. M.D. Middle East: Thiern- Lalevee It is more urgent than ever that the battle to revive the common Soviet Union and East!!rn Europe: cultural matrix of our Western civilization be joiried, particularly on Rachel Douglas. Konstantin George Special Projects: Mark Burdman two fronts: the fight against AIDS, and the war on drugs. United States: Kathleen Klenetsky The cover story beginning on page 30 and featuring the extended INTERNATIONAL BUREAUS: commentary of EIR founder Lyndon H. LaRouQhe, Jr., reports on Bangkok: Pakdee and Sophie Tanapura Bogota: Javier Almario the political battle heating up in California, ovet a ballot initiative Bonn: George Gregory. Rainer Apel which would make AIDS reportable as a deadly tommunicable dis­ Chicago: Paul Greenberg Copenhagen: Poul Rasmussen ease. Twenty years of the "cultural paradigm shift" that legitimized Houston: Harley Schlanger the rock-drug-sex counterculture stand to be reversed, this year, in Lima: Sara Madueiio Los Angeles: Theodore Andromidas this fight to defend the West against the AIDS palndemic despite the Mexico City: Josejina insane demands of a "gay rights" minority. On ,a lesserMenende: scale, but Milan: Marco Fanini New Delhi: Susan Maitra important in this direction, is the Supreme Court ruling (page 62) Paris: Christine Bierre upholding a state law banning homosexual sodoqty. Rio de Janeiro: Sih'ia Palacios Rome: Leonardo Ser\'adio. Stefania Sacchi Equally strategic is the anti-drug fight. The subversion of the Stockholm:' William Jones West through the spread of the drug countercult4re has been Soviet United Nations: Douglas DeGroot Washington. D.C.: Nicholas F. Bell/on. strategy since 1967. Pope John Paul II's beautifbl intervention into Susan Kokinda Wiesbaden: Philip Golub. Garan Haglund Colombia against illegal drugs and usury as "slavery" is the leading edge of the war on drugs (page 42), in which the international bank­ EIRIExecutil'e IntelligenCl' R"I'iell' (/SSN 0273-6314) i,l' published weekly (50 i.'-'II'-') e.\"l'el'tfi" the ,

Interviews Science & Thchnology Econ�ics

48 Gen. Garcia Conde Cenal 22 Livermore Laboratory 4 Worl_ financial storm is The fonner Chief of General Staff vindicated on x-ray laser now gathering of the Spanish Air Force says the The fraudulent campaign to Low interest rates, it is believed defense of West Gennany is the discredit the laboratory's by leading New York bankers and duty of all European states. extraordinary successes has been by Donald Regan, will enable the annihilated by a new government debt-stJtapped U.S. money-center report. banks tb get refinanced, at least for a fejw months. 26 Weinberger counters anti­ Departments ' SDI lobby 6 Peru 8 Garcia campaigns in M.xico for Ibero­ 15 Report from Rio The secretary of defense compares President Reagan's vision of Ame';can integration Drug mafia descends on Brazil . strategic defense to President Kennedy's dream of the 8 Top bankers admit: 'We 53 Report from Bonn exploration of space. are bankrupt, in fact and Money laundering for the SPD. in policy.'

54 Report from Rome 10 IMF pushes Indonesian What Andreotti has in mind. Book Reviews government toward the economic precipice 55 Andean Report 65 D. Stockman and the Peru outdoes U.S. in war on triumph of subterfuge 12 South Africa wields the drugs . A review of David Stockman's debt weapon The Triumph of Politics; How the 56 From New Delhi Reagan Revolution Failed. 13 Illegal-drug use soars in Rajiv Gandhi on the frontline. Argeatina, thanks to IMF 66 Military reform: If you austerity 57 Southeast Asia liked McNamara, you'll Phuket ablaze: Thailand's love Gary Hart 14 Curr�ncy Rates Wackersdorf. A review of Sen. Gary Hart and William S. Lind's America Can 16 International Credit 72 Editorial Win: The Case for Military Drug money leverages drug "Where there is no vision, the Reform. money; people perish." 17 Domestic Credit The oil belt leads the nation down. )I

18 AgricUlture Funny money for farmers.

19 Medieine Vaccin�-preventable diseases return..

20 Businiess Briefs II

Volume 13 Number 28, July 18, 1986

Feature International National '

42 John Paul II in Colombia: 60 SDI faces its most drugs worse than slavery dangerous challenge yet Will President Reagan be 44 Chihuahua elections: convinced that Moscow's "new" Mexico turns back a arms-control agreement is worth threat to sovereignty limiting the 1 anti-missile defense program? 46 U.S.-Japan alliance holds firm in vote 62 Sodomy ruling by high court poses threat to NSIPS/JimDuree liberal counterculture An initiative calling for applying classical public-health 47 Soviet anti-SDI warfare: measures to AIDS has been certified for the November German high-tech Documentation: Excerpts from ballot in California, after more than 690,000 signa­ specialist killed by RAF the Supreme Court ruling on the tureswere collected this spring fromCalifornia voters. right of statts to make sodomy 30 A golden moment to act 51 Lebanon falling to New illegal. against the AIDS Yalta plan 69 Eye on Washington pandemic Defense cuts flaunt Cap's 'dire By Warren J. Hamerman, 52 Silence covers East Berlin warnings' . Director, EIR Biological Holocaust bloodbath Task Force 70 National News 58 International Intelligence 32 A program to stop the AIDS pandemic Excerpts from the second in a series of occasional press briefings by Mr. Lyndon H. LaRouche, Jr.

36 Political war over AIDS referendum

38 Conference Report: 'Experts' perpetuate WHO's cover-up of the AIDS epidemic

40 AIDS in the tropics: How does it spread? By Dr. Mark Whiteside, co­ director of the Institute of Tropical Medicine in Miami, Florida. TIillEconomics

World financial storm is now gathering

by Crtton Zoakos

On July 7-8, for two days in a row, the New York Stock likely to be the time for such . collapse to occur. Exchange registered a combined loss of nearly 5% of stock On the first, the causes lejading to financial collapse: The values, the worst since the 1929 Crash. Also on July 8, the total level of worldwide indebtedness, domestic and foreign, London Stock Exchange joined Wall Street in a franticselling as of mid-1986, is an estimated $27 trillion, which requires session, resulting in one of the most spectacular plunges in an annual debt service of sofe $6.6 trillion-far in excess "The City's" history, wiping out an all-time record of $8.2 of the monetary value assigned to the industrial output of all billion of share values in one day. the nations of the West combined. The situation of total The day following, July 9, the Federal Reserve's Open worldwide debt service s�sing the value of tangible means Market Committee met, this time sans Preston Martin, to set of payment produced, has e�isted for some years now, but, monetary policy for the next three months. Over the vehe­ since the 1979-82 period, the rate of growth of debt service ment, and unprecedented, objections of senior European fi­ has been outstripping the nominal (i.e. monetary) rate of nancial circles, this body lowered its discount rate to 6%, its growth of output by leaps and bounds. In fact, the Volcker 1977 level. The Central Bank of West Germany, the Bun­ interest rates of 1979-82 had, as their net effect, the further desbank, warned that it will not tolerate a cheaper V. S. dollar acceleration of the rate at w�ich the growth of debt outstrips and, in uncharacteristic tones, demanded that the Fed not the growth of output. In the c�se of the Vnited States domestic decrease the interest rates which it charges to V. S. banks. economy in particular, not pnly debt service increased by The secret concern behind these metaphysical matters of growing rates, but actual ph�sical output declined instead of interest rates, is the question of whether or not to refinance growing. the worldwide V.S. dollar-denominated indebtedness. In the Approximately 90% of all new credit generated by all the balance hangs the survival or ruin of the 10 largest V. S. developed nations' central bianks, was employed to finance banks. Low interest rates, it is believed by leading New York speculative ventures which riised fictitious amounts of nom­ bankers and by White House Chief of Staff Donald Regan, inal money, which in turn Were repeatedly applied to refi­ will enable the debt-strapped V.S. money-center banks to get nance existing loans in both the private and public sectors. refinanced, at least for a few months; whether this belief is The major brokerage houses which manage what they have justified or not is questionable. In fact, British and Swiss come to call the "worldwid� capital market," accepted the financiers-and many representatives of American "old hard cash of the $400-500 billion-per-year global drug trade, money"-are betting that the scheme will not work. sell four-to-five times the anlount in option to various finan­ cial instruments, and then nJrn to the Eurodollar market to The general causes raise bonds covering the dif&rence. These operations, from Who is right? The readercan judge for himself, provided 1983 to date, have producedithe single most important com­ he is supplied with some important-butignored-facts and ponent of present world indebtedness, a $3 trillion total of figures. There are two sets of such facts and figures, one liabilities of the international�anking system, known as "off­ which identifies the more general causes for the present ten­ balance-sheet" liabilities, owed by banks, to banks. Most of dency toward world financial collapse; the second which this incredible debt burdens.the V.S. banking system. The identifies why the period between now and Sept. 30 is most top 15 V.S. banks are offiC;ially estimated to carry $1.26

4 Economics EIR July 18, 1986 trillion off-balance-sheet liabilities, almost twice their com­ Islands haven for unbridled specula�on.The published pol­ bined assets.Th is far outweighs Mexico's $0.1 trillion debt, icy papers of" I 980s Project" boaste4 that "the principal rival or South Africa's $0.025 trillion debt, or the combined total for the 1980s will not be either Co�munism or Socialism, $0.8 trillion debt of the entire Third World. but, rather, mercantilist [i.e., American System based], eco­ From 1983 to early 1986, the collapse was prevented nomic systems in which sovereign governments maintain because the major players were able to get out of bad invest­ economic functions." ments in time, and unload them on someone else.The "some­ In midyear 1986, an unprecedented and potent opposition one else" would get out in a similar manner, and thus the hot to the Trilateral Establishment's wprld economic strategy ' potato was being tossed from player to player.Ba d financial emerged, where none existed before. This opposition, for the instruments were not being called, presumably because they time being, centered in the governments of Japan and the were backed by the good reputation of the institutions, the Republic of South Africa and, in it different way, in the players, backing them; this "good reputation" was held up by growing reluctance of lbero-American governmentsto repay these players' ability to introduce new hot potatoes into the their debts as the creditors and the IMF propose-namely. game.We have now reached the point that the "hot potatoes" their reluctance to trade in their national equities for their outnumber the number of hands of all the players together. debt. Virtuallyall of Third World debt has been non-perform­ Japanese Prime Minister Nakasone's landslide election ing during 1986; the $400 billion debt of the world shipbuild­ victory the Sunday before the New iYork stock market col­ ing industry similarly; with the drop of oil prices, the same lapse, was acclaimed as a mandate Ifora strong nationalist, situation is progressing in the energy sector; real estate values dirigistic economic policy; this means that the Japanese econ­ are plunging; the rate of bank failures in the United States omy's resistance to the Trilateral Commission's nation-bash­ during 1986 is double that of the previous year. Industrial ing around the world will grow.The South African govern­ output has been steadily declining across the globe, driving ment's decision to openly organize for a worldwide debt down the prices of raw materials and primary commodities. moratorium against the Trilateral Cdmmission' s instigations As a result, during the firstsix months of 1986, all the senior for "economic sanctions," is another major strategic threat to players in the world capital markets have realized-some to the Anglo-American liberal bankers� Establishment. their utter horror-that the rate of growth of world debt is Organized opposition has emerged from l) the West's speeding up in inverse proportion to the rate of decline in most efficient industrial economy-Japan; 2) the West's world physical output. greatest reservoir of strategic metals and industrial raw ma­ The world capital markets, as of the second quarter of terials-South Africa, and 3) the potentially most cohesive 1986, are in the same position as an individual whose un­ sector of the debt-strapped Third World-Roman Catholic employment checks have stopped coming at the same time Ibero-America. as his monthly credit-card repayment requirements have During the week before the July 7 events on Wall Street. grown to double his monthly living expenses. at an international financial symposium in Zurich, held by bankers and for bankers. the main problem of the world The immediate triggers economy identified wasthe discrepancybetween the mass of As to the particular triggers which define the present financial speculative paper and actual wealth produced.As a financial quarter as the most likely timeframe in which the Bank of England spokesmanput it, "Only a tiny fraction of financialcolla pse may occur: the money placed in the world capital market is in any way The present form of world financial insanity began in connected with actual commercial and industrial activities." January 1977, when the Trilateral Commission imposed the The leading financial interests of London have been talk­ Carter administration on the United States, with a mandate ing their U.S.banking brethren into collapse since the Mex­ to implement a worldwide economic program titled "1980s ican debt renegotiations went awry. The same has been the Project." The authors of "1980s Project," were the same case with the Swiss banking pow�rs, which also control leading financial families of the Anglo-American Establish­ banking policy in France and Genrlany.It is no secret that ment which had earlier organized the 1971 destruction of the London and Swiss finance has enterddinto an agreement with gold standard and the 1973 oil hoax, both perceived as emer­ Moscow to remove all U.S.influen te from Europe and pro­ gency measures to save them from their overextended posi­ ceed with what NATO General-SeCretary Lord Carrington tions in the unregulated, speculative "Eurodollar market," has dubbed a "New Yalta Agreemerit." which the same interests had brought into being during the Moscow wishes to enter into its imputed "New Yalta 1963-71 period-i.e.after Pr esident Kennedy's murder. obligations" only after the American Strategic Defense Ini­ The purpose of the "1980s Project," and of the Carter tiative program is defeated and not before. Moscow also administration, guided by Fed Chairman Paul Volcker, was estimates that the SDI can be defeated only if its FY1987 to eliminate all governmental regulatory or other influence funding is cut.Oct. I, the date on which the 1987 budget is on all economic matters throughout the world, to tum the expected to be approved, is also thel day after the end of the ' world economy into an unregulated, "offshore" Cayman- current financialqu arter.

EIR July 18, 1986 Economics 5 Peru's Garcia campaigns in Mexico for Ibero-American integrati6n

Through a series of dramatic radio broadcasts into Mexico paid increasingly less.Later, ip 1950, Peru tried to industrial­ preparatory to Peruvian President Alan Garda's visit there ize itself, but only concentrated industries in the city of Lima, in late July, the government of Peru has escalated its cam­ forgetting the rest of the natiop. paign to promote the ideas of political solidarityand econom­ · ..And what is worse, i{before we were raw materials ic integration across the Ibero-American continent. The in­ exporters, now we have beco�e.. .an importer of machines terviewsfeatured Luis Negreiros, president of the Peruvian to establish industry, and we have indebted ourselves in the Congress and secretarygeneral of the APRA ruling party on process.They pay us increasipgly less for our raw materials July 7, and President Garda himselfon July 8. Thefo llowing (cotton, sugar, oil) and charae more for the machines and are excerptsfrom the 50-minute interview with Alan Garda, industrial products .... transmitted live by satellite across Mexico. This brings up the big question of this period, which is the foreign debt, a question "'Ihichis crucial and historic for our continent, and a questionl before which one must take a Q: Mr.Pr esident, approximately two months ago you made clear stand: Either one is withithe internationalbanks , or one international headlines with the news of a series of decisions is with the people. Either on� is with the interests of world . . .on economic matters which have turnedyou into one of capitalism, with which one can co-exist and respect but to the most debated figures in many economic forums .... I which you cannot submit, or pne is with the people's devel­ would like you to explain how you found the Peruvian econ­ opment and with the fate of th¢ citizens who elected you. . . . omy when you took power nearly one year ago. · . .When we received th� government, only 35 of every Garcia: First I would like to note that I don't see Peru as an 100 Peruvians had a permanept and secure job paying above isolated case. Peru is part of Latin America. And Peru has the vital minimum wage. Th� rest either had no jobs or had the same problems that Latin America has, with a different to subsist, as throughout Latin America, on underemploy­ intensity, different characteristics perhaps, but we are-as I ment, which is hidden unemp¥>yment.That is, informal jobs, say-a province of the same nation which is Latin Ameri­ street vendors . .. which as I "ave seen exists also in Mexico, ca.... exists throughout Latin America. The deterioration of Peru did not begin fiveyears ago These were the problems we faced: inflation, unemploy­ under the previous government.It actually began centuries ment, permanent devaluationiof our currency which encour­ ago. The historic clash of cultures caused the process of ages inflation, as you know.Ali we buy many productsabroad, concentration of wealth in a few hands to continue; caused a when the price of the dollar in�reases and the national curren­ processof economic concentration in one region to continue, cy devalues, the price of these:fore ign products grows for our leaving other regions of the country in absolute poverty; population.Then , devaluatiqn provokes a new round of in­ caused the strengthening of modem industry and the State flation.And we received a cpuntry indebted to the tune of while leaving the peasantry in abandon.And this is why Peru $14 billion which had to be Raid during the year 1985, plus continues to produce less food and has to buy more from that which wasn't paid in 1984, plus what was foreseen for abroad, why there is more and more poverty and why the 1986, nearly $5 biliion, when all we produced with exports industry of Lima, which is the capital city, has no one to sell was $3 billion. I its products to. · . .The debt is the histo�c synthesis of dependency, of This contradiction, this accumulation of problems, de­ domination, and of the exploitation to which Latin America fines forus a society in which violence is slowly growing and has been subject. The debt �oday is a subject in which is in which, what is worse, despair in the democratic system is synthesized all the problems : since Cuauhtemoc, since Ata­ growing. hualpa in Peru; the problem o( imperial domination, the prob­ Peru has been a raw materials exporter since the begin­ lem of the colonization of pur countries; the problem of ning of the century, raw materials for which we are being having been kept as second-classnation s, as satellite nations,

6 Economics EIR July 18, 1986 in alliance with the internal oligarchies of our continent, in has allowed us to accumulate mo than foreign-exchange alliance with the ruling classes of our continent who serve reserves. This has enabled us to ke p the reserves we have the colonial interests of imperialism. and prevent devaluation of the curre cy. As you know, when I repeat that we have been exporters of raw materials for there is a shortage of exchange in a ountry, the currency is which we are increasingly paid less. Look at the case of the devalued. When the currency is de alued, internal interest silver produced by Peru and by Mexico.Look at the case of rates increase, and with them the rate of inflation, and all of the oil which we too produce and which has been reduced by this feeds back into a new devaluatiqn. internationalconfli cts to a third of the price being paid a mere We must end this vicious circle bjypreventing O\lrmoney six months ago; look at the case of fish-meal.We have been from being devalued and for this, we peed a reserve of foreign forced to produce raw materials in all of Latin America: Peru, exchange to allow us to live.And th�se reserves we can have silver, copper, fish meal; Argentina, meat, wheat, wool; only by not paying the debt. Becaus� they have already col­ Mexico, silver, oil. We have been forced to produce raw lected enough throughout these yearS ....How many times materials for the world and are paid less and less. have we paid the debt with the interest rates they have im­ On the other hand, the industry we do have we have posed on us? How many times have we paid the debt that the bought from them at excessively high prices. This relation­ wealthy of our countries brought (rom Europe. from the ship between our raw materials and the price of their ma­ United States? How many times have we paid the debt in the chines and technology has been working against us for years. high prices of industry they have charged us, in the imported And this handicap is the origin of the foreign debt of our products for which they have char�d. us double, triple the countries. In the last 20 years we began to indebt ourselves cost? . . because we did not have sufficient [resources] to industrial­ ize, or to feed ourselves as in the Peruvian case, and we Q: Mr. President, to what extent h�s Peru, throughout the began to accept credit. 12 months, been internationally isolated from an economic Credits which have frequently been mis-used by our rul­ and financialstandpoint? ing classes, by our wealthy classes who have brought this Garcia: If you are telling me the banks have isolated us, money from abroad.Be cause if you ask me where the money well, I prefer to be alone than in such bad company. . . .In of the foreign debt is, I would answer you that the majority that sense, we are alone .... of it is in accounts in European banks, in the U.S. banks , in . If you are telling me that we arealone because on this Switzerland.And if the banks want us to pay them the foreign question of limiting payment to 10% we have not been ac­ debt, let them collect it by taking it from the deposits of those companied by a single other Latin American nation, I w ill who took it from here. tell you, sorrowfully, yes. But I am not worried, for two The origin of the foreign debt is in the low prices they reasons: It is not just that we remaid alone, we have always pay us for raw materials, in the high prices they charge us for been alone; Peru has always been �lone, Mexico has been industry, in the interest rates they impose on the debt that we alone, Argentina has been alone, ea�h with its own problem, originally had.They have charged us 12%, 14%, 15% inter­ believing illusorily, naively, that each, alone, can better re­ est while internalinfla tion in the United States was 5%. Then, solve its problem and better deal with the great boss of the there was a 10% overcharge, 10% unilaterally imposed by international economy. What a terrible mistake, to believe the banks. that through bilateral negotiations, leach one of us, in our We have rebelled against this. Because you well know weakness, is going to be able to wi�. better conditions from that if a country resigns itself to pay what they say it must the world economic forces. . .. pay, it does so at the expense of its population, it does so by Each of us wanted to industrial&e, and so we build the impoverishing its population, it does so by devaluing its same industries in 20 Latin Americnn countries, instead of national currency. What we had to do was defend the re­ building one, single, great industry for the entire continent, sources of the country and we had to take a position that and all we have done is go deeper idto debt.Each one of us might appear sacrilegious, heterodox, heretical.Bu t I believe wants to arrange his problem with the Monetary Fund . . . that therecan come a time when certain positions must· be and the only thing we do is get mo¢ stuck in the swamp in taken. We said we were going to recover the prices of our which only those who have the mdst can win, that is, the raw materials. If we don't recover them, how can we pay? powerful and the bankers. . . . They don't pay enough for our work, but we must pay them Peru alone is worthless, Mexico �lone is worthless.They for the debt they say we have. So, we are linking the two are going to sink us deeper in the problem.We are going to questions. As much as you pay me for the raw materials I be begging from door to door and k�king at every doorfor export, so much will I pay you.And we then fixed a quota. a credit to pay the previousdebt. and in return for this we are The quota: 10% of the exports for the public debt. going to accept terribleeconomic cooditionsfor our people. And we fixed a quota which with great sacrificewe have Why don't we unite? Why don't ivetake the historic step? met despite the serious problems, the threats of embargo, the Why don't we understand that only �ogether can we set con- threats of economic sanctions against our country. But this ditions on the world, alone no. I

EIR July 18, 1986 Economics 7 Conference Report

Top bankers admit: 'We are I bankrupt, in fact and in policy' by William Engdahl from Zurich

The leading unofficial economic adviser to the Reagan to the 1931 Vienna Kreditanstalt crisis which inaugurated the administration and former chairman of the Council of Eco­ Great Depression, is the Mex�o debt crisis. Though most nomic Advisers, Dr. Alan Greenspan, said it: "There is no participants scrupulously tried to keep Mexico offthe formal recovery in the United States; there is none either in Japan. agenda in Zurich, privately, leading people admitted to its And there certainly is none in Western Europe." explosiveness. John Crow, deputy director of the Bank of A few minutes later, former top Reagan economic strat­ Canada, acknowledged that Mexico is making bankers "very, egist on the National Security Council, Dr.Norman Bailey, very nervous. The reason Melico is so difficult is the fear admitted, "There is an increasing disconnection between the that Brazil and Argentina will demand equal terms" regard­ financial economy [stock markets and commodity markets] less of how "specific" Mexico's debt problems are. and the real economy. The financial economy is booming. Mexico's foreign debt-largely to New York and Lon­ But the real economy is in recession-shipping, oil, bad don banks-is 70% dependent on oil export. Since Decem­ Third World debts, agriculture ....The new tax reform law ber, Mexico has lost $8 billion:from the oil-price fall alone. and the [Gramm-Rudman] budget reductions will hit at just The worry ofthe bankers is the combined $350 billion in debt the wrong time." owed to the leading internationalbanks by the Ibero-Ameri­ These unusually frank admissions of the present econom­ can debtor nations. Assistant U.S. Treasury Secretary for ic reality were made at a private, informal gathering of some InternationalAffairs David Mulford told a questioner, "Mex­ 200 of the world's leading banking- and economic-policy ico, well, they will get $4.5 billion in a new package.But I strategists the weekend of July 5-6 in Zurich.The audience am worried about the political situation.The PRI [governing included the heads of the central banks of West Germany, party of Mexico] is going to lose the next elections [July 6 in France, Italy, Switzerland, Canada, and Britain. It included the state of Chihuahua]. And, nobody knows what that is the powerful head of the New York Federal Reserve Bank, going to mean for the stability of Mexico." top people from the U.S. Treasury Department, the West Mulford's cryptic, and as it proved, wrong electoral pre­ German and French financeministrie s, two of the "fivewise dictions reflecta policy mafiaiJil Washington centered around men" of German economics, and top strategists from the former Merrill Lynch financierDon Regan and people in the InternationalMonetary Fund. State Department who are proposing to back the narcotics­ It also included representatives of the world's largest and tied opposition PAN party ini a bid to throw Mexico into most influentialprivate banks, including Credit Suisse, Vi­ chaos. Their objective would be to destroy national institu­ enna Kreditanstalt, Citibank, Chase Manhattan, West tions which until now have resisted the foreign bankers' Deutsche Landesbank, Banco di Roma, Credit Suisse First usurious demands to betray national resources-turningover Boston, and Goldman Sachs. ownership of Mexico's huge petroleum reserves, for exam­ In other words, it included the top people responsible for ple, as tribute to pay the debt. decisions which determine the course of the world economy today. 'Who will bail out the banks now?' What did these august bankers and friends come up with? The real theme underlying accepted international bank­ They admitted, again and again, in the course of three days ers' code language actually ennerged during the conference. of discussions, that the world economy is teetering on the Ironically, it was the Hungariah National Bank's firstdeputy brink of catastrophe, and that, at present, every policy solu­ president, Janos Fekete, who crudely expressed the current tion they propose would explode in their faces. bankers' panic. "You in the West," Fekete gloated, "you One of the possible triggers of a new bank crisis similar have collapsed your markets in Latin America. You have

8 Economics EIR July 18, 1986 I I collapsed your markets in Africa, including even South Af­ cent "trade war" tensions between W,shington and especially Germany on steel were a result of ashington's unwilling- rica. Now, you have collapsed your markets in the Philip­ WI pines and Asia." He drew Moscow's blunt point: "You in the ness to curtail the desperation imports into the United States West have no other choice. You cannot now afford to ignore of steel from debtor countries such as Brazil, for fear of the a market-Comecon-which has 400 million people and consequences to U.S. banks. which pays its debts. You must come to us. " At Zurich, Bundesbank head Otto Pohl and various rep­ Whether the assembled bankers agreed with Fekete's resentatives of Japanese banking indicated that they were not conclusions, it was clear that they realized they had a major about to buy the new Washington "proposal ." The problem global financial crisis on their hands, and that nothing the is that Pohl and Germany's Trilate$l Commission Finance IMF and big international banks patched together in the 1982 Minister Gerhard Stoltenberg have imposed policies which debt crisis has produced any solutions other than huge un­ have driven German unemployment to postwar record highs employment in Europe, the United States, and Ibero-Amer­ already. ica, and the threat of a far worse financialcrash today. This is the dilemma. To bail out the bankers for their Senator Bill Bradley (D-N.J.) bluntly told the group, inability to successfully spur anything other than greater eco­ "Debt management is killing growth worldwide. It is stran­ nomic chaos, will trigger a major new collapse of employ­ gling the economies of the Third World and it is killing ment worldwide-a classic depressipn crisis as in the 1930s. employment in the United States and other industrial coun­ Italian Labor Minister Gianni de Mithelis and parliamentary tries. Since 1982, one million Americans lost work because participants from the United States and Europe warned that of the collapse of exports to Latin America." more of the bankers' "recovery medicine" of 1982 vintage Speaking accurately for a change, Bradley pointed to the will produce social explosions. gimmick used by the bankers in 1982 to bail out their system, at the expense of their own and the world's long-term real 'Give us more casino economies' economy. "To pay the debt," Bradley continued, "we told The answer of the private bankers was clear: We don't Latin American and other debtors to slash imports and sub­ care what the consequences are soj::ially, allow us to beg, sidize 'desperation exports' to the United States to pay the borrow, or steal worldwide to keep �ur banking game afloat. banks their debt." The result has crippled growth, created One private banker from First Boston admitted that the pri­ austerity, and fueledmassive flight-capitaloutflow s, Bradley vate bankers' policyis to export froliothe United States what added. he termed a "casino economy" of wild, unregulated, and His solution, given the scale of the problem, was pathetic: often fraudulent stock-market malbpulations. One of the Bradley suggested reducing interest rates by 3% over three world's leading private-bank oper*ors , John Hennessy of years to the Latin debtors. Credit Suisse First Boston, said d�fensively, "You cannot But the significant point is the admission of how the crisis blame globalization of securities tr�ing as the problem. It's had been postponed for the past four years by the banks and like blaming the bartender when tie alcoholic gets drunk. Washington. Now , that patchwork is threatening has come Liberalization of international finanfial markets is good." loose, and the consequences threaten to be far worse than It's a bit like giving Meyer Lansky the keys to the Bun­ 1982 or even 1931. desbank for safe keeping. Even the chairman of the pow�rful New York Federal Will Germany and Japan bail out the banks? Reserve Bank, Gerald Corrigan, was forced to admit to a The issue of forced exports to pay the debt by Brazil, dichotomy between the real econ�my and the paper debt Mexico, Argentina, et al . was at the heart of the battles pyramid, as two distinct processes.ICorrigan admitted, "We among the bankers. The spokesmen for the U.S. Federal have seen a spectacular rise of liquidity in world equity mar­ Reserve and private banks ganged up on their West German kets. Theoretically, this should stirhulate the world ecomo­ and Japanese colleagues. Their mugging exercise had one my. But this stimulation is not e�ident." Corrigan feebly simple objective-Germany and Japan must tum on the spig­ admitted he had no idea what to do �bout this major problem: ot and flood their economies with deutschmarks and yen. The "upswing" in world stock-market shares in New York, Why? Frankfurt, Milan, Paris, and Londpn in recent months has Two days afterZuric h, the Wall Street Journal admitted nothing to do with real industrial tecovery. In fact, it is a the game: The United States is demanding that Germany, as symptom of a speculative orgy pl:ecisely like that which Europe's largest economy, begin to swallow Brazilian, Ar­ brought the world into depression ii 1929-3 1. gentine, and Mexican "desperation exports" which have Thus, the world's august bankerSgathered in the secluded brought the domestic U . S. economy to the brink of ruin since Swiss mountain retreat, at least am"'ngwhat they considered 1982. Germany is, in effect, being asked to import Brazilian a friendly audience, remarkably admitted: "We are bankrupt, steel, Argentine agriculture products, and so forth. The re- in fact and in policy. "

EIR July 18, 1986 Economics 9 Conference Report

IMF pushes Indonesian govehnnent toward the economic precipice by DeanAndromidas

The June 18-19 conference at the Hague, Netherlands of the in privately held foreign debt, .ndonesia has not reached the Inter-Governmental Group on Indonesia (IGOI), the multi­ kind of debt crisis that Ibero-American countries have expe­ national aid-donors group supervised by the World Bank and rienced. But it has managed to tprestallthis only by canceling the International Monetary Fund, only proved that those in­ 48 significant development projects since 1983, cutting food stitutions are committed to forcing Indonesia to give up sov­ subsidies, and pursuing an ex�emely conservative financial ereign control over its economic institutions and resources. policy aimed at contractingas f�w high interest -bearing com­ If allowed to reach its goal, this policy will mean the looting mercial and export loans as possible. of this nation on the same scale as Mexico and other countries But the current collapse of,he price of oil, a commodity of Ibero-America. accounting for 70% of foreign-exchange earnings, from $26 Holding out the promise of $2.5 billion in development to $12 a barrel, could rapidly �ansform this situation. The aid and soft loans, $100 million more than last year, the IMF Indonesian government has already announced that it will and World Bank used the opportunity of the IGOI conference have to implement an austerity policy with a 7% cut in the to apparently convince Indonesia to adopt a commodity-ex­ national budget, which will in¢lude a 22% cut in the devel­ port strategy, by liberalizing its import regulations and fiscal opment budget. But worse, even this austere budget proposal policies. This was the same policy the IMF and World Bank was calculated on an oil price 0�$25 per barrel, not the current had forced on Brazil, Mexico, and Argentina, with well­ $12 per barrel. Therefore, desp,te the austerity measures, the known disastrous results. Because Indonesia has made it balance-of-payments deficit relj,ched $2 billion; foreign debt­ clear that it is not prepared to fully accede to the World Bank service payments of $4 billion lWere made in 1985 (covering and IMF demands, these same financial circles have initiated both interest and principal) an4- the debt-service ratio stands an international campaign directed at destabilizing the gov­ at 27.1%. ernment of President Soeharto. IGOI was formed in 1968 to "rescue" Indonesia from the IMF asks for a pound of flesh financialdisasters of the period of the late President Sukarno, The IMF confidential report tabled at the IGOI confer­ who fell from power in 1966 following a bloody abortedcoup ence reports that the Indonesiap economy expanded by only led by the Indonesian Communist Party and an Indonesian 1.3% in 1985, down from the 7-9% growth rates of the late default on its foreigndebt of $5 billion. IGGI's stated purpose 1970s and early 1980s. The IMP recommended that Indone­ has been to extend development aid and credits, and to insti­ sia shift its development poliqy from one of building up a tutionalize IMFlWorld Bank annual reviews of the perfor­ domestic industrial base to a CO$l1odity-exportstrategy whose mance of the Indonesian economy. For the IMF and the purpose is to ensure the payment of debt. World Bank, it has served as the chief leverage point for To quote from the final prejis release of the IGGI confer­ forcing the Indonesian governmentto accept to its destructive ence: "Given that Indonesia'S! debt service ratio has risen programs. priinarily as a result of the fall of oil prices . . . growth of Although the government of President Soeharto has been non-oil exports, which is this year's special topic, is partic­ committed to a policy of industrial development modeled ularly important." upon that of Japan and South Korea, it has been forced pe­ To accomplish this, the IMF demanded the same mone­ tary riodically to accede to IMF demands for a labor-intensive, arid protectionist stripteas, it has demanded of Mexico, commodity-exportpolicy with liberal and deregulated finan­ Argentina, and other countrieS! of !bero-America. This poli­ cial policies. cy, while increasing exportso� primary commodities, has in With $25 billion in public foreign debt and $3.8 billion fact led to massive capital fti�t and collapse of these coun-

10 Economics EIR July 18, 1986 tries' internal economies, accompanied by a further balloon­ which played a leading role in the! downfall of President ing of foreign debt. At the conference, the world agencies of Marcos of the Philippines. It also in�ludes Anatolii Gromy­ usurydemanded complete removal of all regulatory practices ko, son of Soviet President Andrei Gromyko, and Vladimir and monetary controls, including: Lomeiko, chief spokesman of the Soviet foreign ministry. • Elimination of price supports for agriculture. This Another initiative aimed at undermining the government criminalpolicy will reverse the great success Indonesia ex­ is the Inter Non-Governmental Organization Conference on perienced in becoming self-sufficient in rice production; the IGG! Matters (lNG!) which lobbied with Dutch Develop­ country is now a rice exporter. The success was the result of ment Minister Schoo, who chaired the IGGI conference, to defying World Bank policy and establishing a domestic fer­ reduce aid to the Soeharto government. INGI comprises 13 tilizer industry, while maintaining a stable price-support sys­ Indonesian non-governmental organizations and 19 organi­ tem on the rice market to protect Indonesian farmers. While zations of countries represented in !GGI, including the En­ refusing to dismantle the price-support policy as the IMF vironmental Defense Fund ofthe United States; the Friedrich demanded, Prof. Ali Wardhana, coordinating minister for Naumann Foundation, the think-tank of the German Free economy, finance, industry, and development supervision, Democratic Party; and several Dutch organizations implicat­ did announce thatprice-supports for fertilizer will bedropped. ed in subversive activities in Ibero-America and Asia. • Adoption of a commodity-export strategy. This is aimed It is interesting to note that INGI's chairman W. J. L. at dismantling regulations that the Indonesian government Spit, is former vice-president of the Dutch Trade Union Fed­ has maintained as a means of encouraging and protecting eration and a close associate of Dutch Trilateral Commission industries crucial to the industrial and economic development member Andre Kloss. of the nation. Although the Indonesian government an­ nounced a package of deregulatory actions May 6, this was not deemed adequate by the IGGI conference and, according to the final press release, the group "suggested the need for I further steps to remove restrictive and regulatory practices which adversely affect efficiency and reduce the competi­ Whobacks the IGGI? tiveness of Indonesia's non-oil exports ." Who is to buy these exportswas leftambiguo us. Japan. 80 billion yen, an increase over last year's 75 • Deregulation of the internal banking structure and low­ billion. er interest rates for domestic credit. Though certain limited Canada. 54 million Canadian ddllars. concessions were made on this issue, Dr. ArifinM. Siregar, United States. 86 million U.S. dollars, Down from governor of the Bank of Indonesia, was quick to point out last year's $100 million because of the Gramm-Rud- . that the government "does not dare" to lower interest rates man budget cuts. too much, because this would encourage capital flight.More­ United Kingdom. £45 million, down from last year's over, he pointed out, Indonesia's domestic banking sector, £50 million. which is dominated by state-controlled banks, is structured Australia. 47 million Australian dollars. to channel the country's limited financial resources to prior­ Belgium. 350 million Belgian fr1tncs. ities outlined in its five-yeareconomic development plans. New Zealand. 3.8 million New Zealand dollars. Netherlands. 179 million Dutch guilder, up from last Political destabilization years 160 million. Concurrent with the IMF and World Bank financial and Austria. 100 million Austrian . schillings, first ever I economic demands has been an expanding effort to political­ pledge. ly destabilize the Soeharto regime. The destabilization is Spain. 12 million U.S. dollars, �rst ever pledge. being managed by political circles representing these same Switzerland. 15.5 million Swiss francs. financial interests. Finland. 12 million Finn marks. During the week of the IGG! conference, the leading World Bank. 1.1 billion U.S. dollars. Elseviers Magazine Dutch weekly published an article enti­ Asian Development Bank. 500 million U.S. dollars. tled, "Prologue to a Crisis," attacking Soeharto as a corrupt U.N. Development Program. 44 million U.S. dol­ leader whose military-backed government is losing the sup­ lars. Elseviers' portof the people. chief editor, Andre Spoor, lives European Community. 40 miltion U.S. dollars. in New York City and happens to be vice-president of the International Bank for ReconStruction and Devel­ Alerdink Foundation, an institution dedicated to Western opment. 10 million U.S. dollars. press collaboration with the KGB . Spoor's colleagues in the foundation include Larry Grossman, president of NBC News,

EIR July 18, 1986 Economics 11 bankers' bluff, and the financ· press howled with outrage. "South Africa needs the good ill of the banks more than the banks need South Africa," w�te the July 3 London Times editorial, titled: "South Afri� versus the Banks." Citing Ambassador Worrall's wami�g that confrontation with his country "would bring down �e whole world financial sys­ tem," the Times argues that �e statement "contains a pro­ found miscalculation. A yeari ago, big debtor countries in South Afri ca wields Latin America might well haye been tempted to follow if South Africa had been the firstilemming over the cliff." the debt weapon In fact, the British newsp.per is whistling in the dark: Both the financial desperation I of the South American debt­ by Roger Moore ors, and their political will to resist, are greater than at any time since the debt crisis exploded in 1982. The bankers themselves are quietly selling! off their South African debt The Republic of South Afric.a has become the first debtor­ paper on a shadowy secondary!market, for discounts of up to nation to unveil the debt weapon openly, threatening the 30%, according to various repcllrts. international banks with a global financial collapse, if West­ em governments impose economic sanctions against the be­ Bankers miscalculated i leaguered country. Ambassador Dennis Worral from the South The bankers miscalculate�, believing that South Africa African Embassy in London told a House of Commons com­ could be manipulated by an international perception game mittee hearing that his country would re-introduce a debt into accepting the dismantling Of the only industrial economy moratorium if far-reaching sanctions were applied against on the African continent. SO$th Africa is one of the few the South African economy, a step he said "would bring down countries in the world that ha$ systematically used dirigist the whole world financial system." economic methods to become an industrial power. Were it On July 2, South African Finance Minister Barend Du not for these methods, it wou�d be in the same situation as Plessis reiterated, "A country that is prevented from export­ most Third World countries, trying to subsist on a stunted ing will obviously not be able to eam foreign exchange re­ agriculture and selected raw-thaterial exports, in a market quired for meeting its other international commitments . " controlled by speculators and 'cartels at the expense of the South African government sources told EIR that South producer nation. Africa is now in the same boat with Mexico, Peru, and other It was, ironically, the Afrikaaner-initiated National Party Third World countries suffering under the policies of the which, on taking power in 19�8 , tried to bureaucratize the International Monetary Fund. The Pretoria government is pre-existing British Empire ap4ftheid tradition, while simul­ well aware that a South Africanpolitical response to pressure taneously launching a postwar �dustrial boom which created by its creditors would set a precedent for Ibero-American, a demand for increasingly skilled black urban labor, thus African, and Asian debtors . shattering the irrationalconstrajints of apartheid on economic British government sources report that Prime Minister development. This industrial policy created the Sowetos, the Margaret Thatcher opposes sanctions against South Africa, Alexandras, the segregated uJtban townships, leading to a despite strong pressure for sanctions from Queen Elizabeth 50% urbanization rate, without comparison in sub-Sahara II, as well as the British Commonwealth, in part because she Africa. is painfully aware of what the consequences would be. The One Afrikaaner industriali$t involved in siege-economy U.S. House of Representatives, which passed a resolution planning against possible sanctions, said that South African favoring sanctions, apparently has no clue concerning the whites have a much different .ttitude to Africa, than those consequences of its actions. whose objective was to come, Plake money, and then leave. The push for sanctions, and South Africa's response, "We have a commitment, a wilJ, to develop the country. The have ended an 18-month standoff between South Africanand world underestimatesthis commitment. " its banks. South Africa introduced a debt moratorium in He added, "The economy and apartheid have an interest­ August 1985, after its creditor banks, led by David Rocke­ ing relationship. The econom}1 has always been opposed to feller's Chase Manhattan, called in South Africa's short-term apartheid. Apartheid inhibits �onomic growth." The siege­ debt. South African Reserve Bank head De Koch then an­ economy plans will include t/le elimination of free trade nounced a moratorium on $14 billion of the country's $24 under GATT (General Agreerqent on Tariffs and Trade), in billion foreign debt, and asked former Swiss National Bank favor of quantitative import cor1trols. Under the protection of Chairman Fritz Leutwiler to mediate a "ceasefire"with bank­ these controls, new branches of industry will be created to ers. replace imported products. Ch�micals, consumer durables, Leutwiler resigned July 3 after South Africa called the and electronics, were cited as I*obable new sectors.

12 Economics ElK July 18, 1986 illegal-drug use soars in Argentina, thanks to IMF austerity by Cynthia Rush

Most readers of EIR are aware of Argentina's status as the According to OfficerGuillermo Mendizabal of the Bue­ Ibero-American debtor which has for 10 years obediently nos Aires Federal Police, reported i, a May 1986 edition of followed the dictates of the International Monetary Fund, La Semana magazine, 600kilos of cOcaine now pass through both under the 1976-83 military dictatorship and then under Argentina every year, of which I 20: are consumed domesti­ the "democratic" regime of President Raul Alfonsfn. cally by 20,000 hard-core addicts. Another 250,000 people What is emerging now is a shocking picture of how this can be categorized as "sporadic" consumers. deliberate policy of economic looting, especially under the Ten tons of marijuana from BrlZil and Paraguay enter IMF's much-lauded Austral plan, has opened this once-pro­ Argentina annually, half of which is c:onsumeddomestical ly. ductive nation to the drug mafias, and SUbjected its increas­ Refined cocaineenters from Bolivia and is transported through ingly impoverished population to the degradation of drug the Andes to the cities of Mendoza ,or Bariloche. From the consumption and the "culture" accompanying it. country's north, it is then distributed to such major cities as Five or six years ago, most Argentines would report that Cordoba, Rosario, and Buenos Airts. Marijuana produced their country was only "a country of transit" through which domestically can't compete with Brazilian or Paraguayan marijuana, cocaine, and other drugs would pass to reach their imports. Even so, a policemap of tht capital and province of final destinations in the United States or Europe. "We're Buenos Aires shows50% of the total /lfea, covered with small lucky, we don't really have a drug problem here," they would marijuana plantations. say. Federal Police note that Argentilljaexports to neighboring Today, Argentina is no longer a transit zone, but a coun­ try with a growing drug consumption problem, where a nas­ cent cocaine-processing industry is developing, and where an alarming degree of crime in major urban areas is drug Argentina is no longen a transit related. zone, but a country with a growing This growth of the drug trade and its "culture," is an assault on the sense of cultural and technological optimism drug consumption problem. A which has historically characterized Argentina's population. cocaine-processing intriustry is Since December 1983, when Alfonsfn came into office, developing, and an alarming citizens have witnessed the extraordinary growth of Argen­ tina's pornography industry, the highlight of which was the degree qfur ban crime is drug introduction of the Argentine edition of Playboy magazine. related. All this occurred under the rubric of "freedom of the press," flourishingunder the new democratic regime.

Now, Argentinians are watching with horror as their chil­ ! drenfall prey to the drugtrade . A growing number of drug countries all the chemicals used in jthe refining of cocaine: victims are youngsters-teenagers from "marginalized," ether, chlorhydrlc acid, potassium! permanganate, sodium poorer sectors of the population, or abandoned street chil­ chloride, and alcohol. But federal judge Alberto Piotti, of dren, some as young as 9 or 10, seen sniffingglue or smoking San Isidro, reports that the country i$ also developing its own marijuana in Buenos Aires subway stations, when they are cocaine-processing industry. This began to emerge after 1983 not out begging for food or money. as anti-drugefforts in Colombia, Perp, and Brazil made mafia These statistics never findtheir way into the IMF board activities more difficultin these cou�tries. meetings, where members demand that Argentina impose Piotti told Somos magazine that he had two cases in his more austerity, to qualify for new loans. courtrelated to cocaine processing, lUld that "of 972 cases in

EIR July 18, 1986 Economics 13 my court, 500are drug related. " II A drop in the price of cocaine-a gram now costs be­ tween 25 and 30 australes ($35 to $40)-has led to increased ------es consumption nationwide. Dr. Carlos Cagliotti, founder and Currency directorof Cenaresco (National Center for Social Rehabili­ The dollar in deutsch�marks tation), reports that his centernow receives 100 new cases a New York late afternoon 6xlDg month for drug rehabilitation. Between 1980 and 1984, the j center received 36 new cases monthly. In 1985, the figure 2.SO jumped to 85, and today approaches 100. ! 2.40 I Future of a nation 2.30 Argentina's economic crisis didn't begin under Raul Al­ .- fonsfn. But the existence of the drug trade, and its impact on � the nation's culture and social fabric, has become most visi­ 2.20 � .AJ "'" � "'" ble only within the last year. During that same perod, the � 2.10 Austral plan was gutting workers' wages by 40%, causing a 5/2 1 5/28 614 61 1' 6/16 6122 71 7 18 drop in living standards, and cutting off credit and invest­ ment, which has put tens of thousands out of productive The dollar in yen employment. New York late afternoon 6xing The social and moral disintegration accompanying this economic collapse can be gleaned from the pages of Buenos 190 Aires' major newspapers. They include almost daily ac­ i counts of violence, crime, and deaths related to drug con­ ISO I sumption or trafficking-many of them involving children. I 170 Somos magazine reports that the average age of most addicts � .,. � - - is now 16, down from 25 a few years ago. � 160 � In early June, the death from a drug overdose of 12-year­ I old Marcelo Cerruolo, shocked the inhabitants of Buenos ISO Aires. The son of a poor, working-class family, Marcelo and 5/2 1 5/28 614 61111 61 16 6122 711 718 his classmates had for some time been regularlyconsuming I marijuana and inhaling glue or other substances provided by The dollar in Swiss francs New York late afternoon 6xing an adult who came by the school. The case of Marcelo Cerruolo is not an -isolated one. A I 2. 10 study done recently of one poor section of Buenos Aires -- -+- found, that of 48,000 intoxicated children and adolescents, � (representing 70% of the youth population of the Ciudadela Norte area), 65% consumed alcohol and inhalants, 25% 1.90 � I smoked marijuana, and the 10% remaining consumed psy­ V chopharmacological drugs. 1.l1li � r-..... The "drugs of poverty" consumed by these children are � I " glue and other combustible substances, which can be pur­ 1.70 chased at the local drugstore or bookstore, or the corner 5/2 1 5/28 6/� 611 , 61 16 6122 7/ 1 718 newspaper stand. In Buenos Aires, a significant degree of The British pound in 40llars. street crime-assaults on pedestrians, shops, and cars-is New York late afternoon 6xing committed by the "poxi gangs": bands of poor youth who

daily inhale these substances. "'"' ..J..... - ,...., - -- .... Dr.Cagliotti has documented the devastating effect which I.soL � ! glue inhalation has on the body's vital organs, producing 1.40 : severe respiratory ailments, weight loss, intestinal hemor­ I 1;30 rhaging, change in blood pressure, and psychosis, among ! other things. Death from overdoseof glue is not uncommon. ; 1.20 In recent international conferences, authorities have I pointedout that Argentina is quickly entering the category of 1.10 countries like Colombia or Mexico, where 10 children per 512 1 5/28 6/4 6/ 11 6/ 16 6122 7/ 1 7/8 day die fromglue inhalation. I

14 Economics EIR July 18, 1986 ,

Report from Rio by Silvia Palacios

Drug mafia descends on Brazil mansion in MatofGrosso do Sui served The country is turning into a huge cocaine warehouse­ as the infrastructure for an internation­ especially in the areas o/ the Thurn und Taxis holdings . al ring of drug Vaffickers. Not acci­ dentally, it is also in Mato Grosso do Sui where the European oligarchic family Thurn upd Taxis owns vast tracts of land. Brazilian police estimate that dur­ ing the past year, the international drug Brazil has become a vast cocaine to the original Peru-Mexico traffick­ mafia moved at least six tons of pure depository, where the drug is refined, ing paths. Given the current conflicts cocaine through Brazil, and that figure packaged, and ultimately shipped off in Central America, explained federal is expected to bei surpassed in 1986. to Europe and the United States, ac­ police chief Tuma, Brazil offers the The cocaine trade has become one cording to the June 17 admission of drug mafia a more secure trafficking of Brazil's most ilucrative businesses. Brazil's federal police director, Ro­ route. "Perspectives o. invoicing and mar­ meo Tuma, after having cracked an At the present time, coca paste is keting are $1 billion a year, a figure importantlink of the so-called Belgian brought to Brazil primarily from Bo­ substantially larger than the amount connection. During the past year, co­ livia, and to a lesser extent from Peru moved by the great majority of the caine shipments from Brazil have and Ecuador. The paste is refined in country's private businesses," said a numbered in the hundreds. giant underground laboratories locat­ . federal police s�kesman to the daily On June 13, Rio de Janeiro police ed in Rio de Janeiro, Sao Paulo, Mato o Globo June 22. intercepted a shipment of 100 kilo­ Grosso, and Mato Grosso do SuI, and Another, more fundamental rea­ grams of pure cocaine, destined for then smuggled into Miami, Paris, and son for why the international drug­ Belgium and France . The shipment, Belgium. trafficking mafi' is making itself at well camouflaged, had a duly author­ One important reason that Brazil home in Brazil is the fact that the fi­ ized export bill of lading from the gov­ has become an internationalcenter of nancial elites of Dope, Inc. are now ernment's foreign trade agency, CA­ the cocaine trade is that ether, an in­ establishing theilr banking operations CEX. The individuals arrested in that dispensable chemical for the refining there. After 12 years of patient wait­ drug bust, including the chief of the of coca paste into cocaine, is readily ing, the Hong K,ng & Shanghai Bank operation, one Edgar Barde, are part available in Brazil. The chemical is has succeededemerging in froma mere of the Sicilian network of mafioso not produced in Colombia, Bolivia, or representative office to full entrance Tommaso Buscetta, according to the Peru, and its import into those coun­ into the financi� speculative market police. The band also had in its pos­ tries is now carefully monitored. in Brazil, with tilecreation of its HKB session a vast number of weapons and According to reports published in Distributor of Titles and Property Val­ ammunition, all from Armed Forces' the Jornal do Brasil. of Feb. 19, the ues. arsenals. mafia operates with total impunity in Enormous ads in Brazil's news­ Edgar Barde launched his career the states of Mato Grosso and Mato papers and magazines heralded its in Switzerland, where he established Grosso do SuI, thanks to the complic­ triumphal arrivajl. "Brazil is going to an antique store which served as a front ity of police officialsthere . Such was know one ofthe lworld's largest finan­ for exporting Far East heroin to the the case of the security secretary of cial groups," s� the ads, which ne­ United States. His financial invest­ Mato Grosso, who in Februaryof this glect to mention that Brazil is now also ments were concentrated in Switzer­ year was accused of involvement in going to knowth¢ wor ld's largestdrug­ land and Texas, where he possessed cocainetrafficking and consumption. money laundry. A.sthe book by an EIR bank deposits in dollars and dia­ In addition, Mato Grossodo Sui is investigating te�, Dope. Inc., has monds. a region controlled by the large land­ documented, tlte Hong Kong & In following the trail of criminal holders, a number of them known to Shanghai Bank Ihas functioned since activities of this international drug­ be involved in the drugtrade . In April, its creation dut!ng Britain's Opium trafficking networlc, investigators have thefederal police discovered thatthree Warsas a centr� bank for liquidating uncovered the fact that Brazil has be­ giant cattle ranches, a major pharma­ Far Easterntran .actions on the opium come an alternative contraband route ceuticals distributor, and an elegant and heroin black market.

ElK July 18, 1986 Economics 15 International Credit by David Goldman

Drug money leverages drug money these loan�, but obtain funds at a lower What is happening in the equitymarkets bears an eerie rate , by iS$uing securities on the Eu­ resemblance to events of the J 920s and early J 930s . robond m3ifket. However, 80% of all Eurobond sales are to numbered Swiss bank accounts and anonymous trust accounts. Eurobonds are "bearer," i.e., unregistered paper, favored by internationaldirty money. Most of the funds Merrill Lynch raises to fund T he world depression of the 1930s We try to screen, but I'm sure there's margin purchases by one drug traf­ began in Germany in 1928, before the dirty money coming in. ficker co� from other drug traffick­ 1929 stock-market crash, and, in fact, "This money is then leveraged to ers. as a result of the stock market bubble. the hilt. Say someone comes into one "The r¢al thing now driving these Margin loans to stock speculators, with of our offices in South America with markets is all this insane 'options' interest rates reaching 12% in 1929, $100,000. We then do what we call business," iadded the chief of the equ­ became the single most profitable form 'gearing' -his $100,000 buys equi­ ities division at a London merchant of lending in the world. Brokers ac­ ties or securities worth $600,000 face bank. "N� just stock options, but in­ cepted 1O¢ on the dollar for stock pur­ value. We lend him the other dex options, futures options, options chasers, and lent speculators the re­ $500,000. We then sell notes [on the on options., It's insane. Where the 1929 mainder. The New York stock bubble Euromarket] to cover that and collect Black Friday was triggered by margin sucked cash out of the rest of the world. the profit onthe higher interest rates. problems, !if we have a crash today, The small trickle of funds that Ger­ This is today the biggest source ofnew we could �ay it was triggered by this many, Austria, and the Eastern Euro­ business in the world. As long as we options in�anity." pean losers of World War I had ob­ know when to get out, we are holding For thqse speculators without large tained from the international banks all the cards. The fees we charge our amounts of dirty money to invest, the turnedinto a leak outwards. The stock clients for this business, I tell you, are commodit.es and options market per­ market crash only made matters worse, incredible. We gouge our clients .... mits them �o speculate for a downpay­ and the global banking collapse began And some people would kill to get a ment wortlila few percentage points of in Austria and Germany in 1931. piece of this business because it's so the value Qf the shares they purchase. That is why some financial ob­ profitable. I don't want to paint a pic­ The LondQn banker cited notes that it servers warnthat the reorganization of ture that we deal in dirty money, but is now possible to write an option to the London Stock Exchange, the "Big I'm sure that there's some dirty money buy or sell the future value of a con­ Bang" scheduled for next Oct. 27, coming in. But this business really tract link� to the price of the Stan­ might trigger a global financialcra sh. scares me. There's a lot of wild things dard & P(Jors stock market index, The post- 1929 regulation of U.S. se­ going on out there." representiq.g a degree of leverage un­ curities markets, starting with the 1934 In other words, the dopetrafficker known in 1929. founding of the Securities and Ex­ of today has stepped into the shoes of What �s most remarkable is that change Commission, gave way in the the speculator of 1929-no surprise, the largest source of funds for actual last three years to the "global market­ since the $500billi on annual narcotics purchase Qf stock shares-after all of place," with a degree of speCUlative traffic is the world's single largest the futuresiand options contracts have leverage that would have given pause source of ready cash. Through off­ cleared-is offshore dirty money. to the most dedicated bulls of 1929. shore branches of the major brokerage During the last half of 1985, major "What scares me most is what I houses, he buys securities for 116 of corporatio(ls made net purchases of term, 'creative lending,'" one Euro­ their value-even though U.S. Secu­ about $50 billion in equity in the U. S. pean equities specialist said July 9. rities and Exchange Commission rules stock markets, in the process of merg­ "Merrill Lynch does it, Amex Inter­ demand that stockpurchasers put down ers and acquisitions. During the first national, Salomon, Credit Suisse First at least 50% of the value of stocks they quarter of 1986, their purchases fell Boston. We are all in it. Say, for ex­ purchase. off to "onjly" $11 billion. Nonethe­ ample, South America flight capital. The brokerage houses charge the less, the market continued to climb, There's so much drug money there. dope traffickera high interest rate for as dirty mQney washed in.

16 Economics EIR July 18, 1986 Domestic Credit by EIR's Houston Bureau

The oil belt leads the nation down creases in lendin� nationally, produc­ The tollfr om the collapse in the oil price is only beginning to ing the first absdlute decline in bank show up in the Texas economic disaster. lending since 1974, and the second since the close of World War II. The collapse of municipal budgets in the oil-belt, in tum, merely leads the con­ traction of municipal revenues across the country. A 660-city survey by the National International crude oil prices fe ll tors in the slowdown. "It's a very dy­ League of Cities (NLC) reveals that sharply July 8, with trades confirmed namic set of circumstances," he said. more than half the cities and towns as low as $5.50 a barrel for Kuwaiti "What we're seeing here is a set of across the count� expect to end their crude. Saudi Arabian Light, once problems affecting the state's econo­ budget year in the red. "Wherever you OPEC's benchmark crude, traded at my, and they're growing. It doesn't care to look, it is clear that the belt has $8 a barrel. Normally both the Ku­ just end in the oil patch. It goes be­ been tightened to its limit as far as waiti and the Saudi Arabian light are yond that point." The unemployment municipal budgets are concerned. It's sold for about the same price as U.S. rate for Houston hit a record 10.7% in no longer a matter of cutting comers grades. North Sea Brent traded at June. or trimming fat----.-theknif e is now cut­ $9.60 and $9.80 a barrel, and closed Texas State Comptroller Bob Bul­ ting the bone andislicing into the vital July 9 at $9.65 perbarr el. Significant­ lock, who recently forced a special muscle and sine�s that make our cities Iy, the North Sea price did not move legislative session with his estimate work," says NLC executive director in response to a report of slightly low­ that the state's budget deficit would Alan Beals. er U.S. gasoline inventories, released reach $2.3 billion, has now predicted Texas and L..ouisiana cities, he July 9 by the American Petroleum In­ that the deficit will be "substantially adds, face an extm burden from the oil stitute. higher" than that figure. "A skyrock­ price collapse, and have been forced EIR's forecast of oil well below eting unemployment rate will be one to take drastic actions to stay in the $10 per barrelduring the summer ap­ key factor moving the state's budget black. He cited IHouston's 3% em­ pears to be borne out. The conse­ deficit well above the current $2.3 bil­ ployee pay cut, a similar 1-5% cut in quences for America's oil belt-which lion," Bullock said. "Workers without Dallas, and the pt,ospect ofI ,000 city­ do not yet reflect the latest ratchet­ jobs and paychecks reduce economic employee layoffstin New Orleans. Be­ decline of oil prices-already amount activity and taxes." Bullock said, "We fore the cuts, he said, Houston was to a disintegration of that region's eco­ expect to finish a new revenue esti­ facing a $76 millipn shortfall and Dal­ nomic and social fabric. mate before Aug. I, and, frankly, none las a $47 million $hortfall. The auster­ The Texas unemployment rate hit of the indicators contain an ounce of ity cuts are "the only flexibility these a record 10.5% in June, breaking the good news. I'm not going to second­ cities have," he said. recordof 9.6% set the previous month. guess the exact number we'll be facing The city of Houston ended its fis­ Texas has the highest rate among the at the end of the month, but with de­ cal year by laying off the first81 of up 11 most populous states, followed by teriorating conditions in the Texas to 770 city employees; 150 people were Michigan, with 9.4%. Due to the col­ economy, it will be substantially high­ scheduled to be laid off June 30, but lapse of oil prices, "every sector is er than the current estimate." 66 found jobs elisewhere on the city showing some sign of weakening," Bullockalso reported the firstweek payroll. Some citly-licensed vocation­ according to Bryan Richey, regional in July: "We see a small net out-mi­ al nurses will now be court clerks, commissioner of the Bureau of Labor gration of Texas to other states this while other employees will become Statistics in Dallas; he said the prob­ year. . . . Obviously, when there are police dispatchers, airport laborers, or lems in Texas are "deep-seated and no jobs, people will not stay here, and water and sewet workers . Houston pervasive," and appear to be "outside today there are no jobs if you look at Mayor Kathy WtJ.itmire still plans to of the immediate control of anyone." the overall picture." lay off 403 people by Aug. 30, but has Richey cited troubles in energy and Earlier, EIR reported that the lend­ postponed the remaining 367 layoffs agriculture, and troubles along the ing collapse of Texas banks had been until the City

EIR July 18, 1986 Economics 17 Agriculture by Marcia Merry

Funny money for farmers for about �05% of their face value. It may be insane, but ifit' s goodfor the fo od cartel, it's Cargill an4 other cartel companies are Department of Agriculture policy. soaking them up like sponges. The companiesi advertise in farm region newspapers, to acquire them directly from farm¢rs. You probably thought the U. S. De­ emment is broke (except when it comes Farmets are also selling their cer­ partment of Agriculture's PIK (Pay­ to paying its own debt service). How­ tificates at; local feed or storage cen­ ment in Kind) program in 1983 was ever, government policyunder the new ters, for apout 104% of face value. crazy. Farmers who idled land re­ farm law, "The Food Security Act of The certifi�atesare then passed along, ceived title to commodities they didn't 1985," is to drastically reduce food at a highet! point or two, to the same grow. Now you may think that the output. Therefore,· early this year, cartel companies. 1986 dairy herd buy-out program is farmers were asked to sign up to take The celtificates are not only issued crazy-where farmerselimina te their large amounts of their cropland out of to farmers t.vhosigned up for the crop­ milk herds in exchange for payment production, in exchange for large fi­ land set-as,de programs this year, but for the milk they don't produce. Well, nancial payments-payable in part in to farmersjwho signed up in the Con­ you ain't seen nothin' yet. generic crop certificates. For exam­ servation Reserve Program, mandated For the first time ever, the U.S. ple, com growers who agree to take by the ne� farm law. Under this plan, Department of Agriculture has started 50% or more of their land out of pro­ the farmeri agrees to take land out of issuing "generic crop certificates" to duction are to receive 90% of the value food production for at least 10 years. farmers in payment for various crops of that unproduced crop (valued at the As of Oct! I, he will start receiving they agree not to produce. The farm­ September 1 market price). In addi­ generic cettificates. ers, in desperate need of cash, can sell tion, they are to receive some of that There i is also discussion taking this "funny money" to get realmoney . payment in advance of harvest-time, place at th� USDA on using the certif­ The purchaser can then hold the cer­ in generic certificates. A similar pro­ icates to MY dairy farmers in the dairy­ tificates, or cash them in with the gov­ cedure exists for other crops. herd term*ation program. ernment for any of the government's Depending on how much land the Even \fithoutexact numbers, you "program crops" -wheat, com, hon­ farmer removes fromprod uction, the can see hoy..the USD A's brilliant "new ey, cheese, whatever. In fact, there is value is noted differently on the certif­ currency"iwill have the result of de­ a USDA "catalogue" of what is in icates. They can range from, for ex­ pleting national food stocks, while at stock. ample, $10 to $10,000 a certificate. the same lime preventing food pro­ Who benefitsfrom this USDA in­ They are filled out locally by the coun­ duction. 'Qte rationalization offered for novation? Who ever benefitsfrom any ty officeof the Agriculture Soil Con­ this by Cqngress and the administra­ USDA program? The international servation Service, which is overseen tion is that/. less food will bring higher food-cartel companies-Cargill, Con­ nationally by none other than USDA prices for Ute farmers-the miracle of tinental, Bunge, Louis Dreyfus, Andre undersecretary in charge of interna­ the "free ' market." However, this (Garnac), ADM, etc. This provides tional commodities and domestic leaves out the existence of the food them, as the main purchasers of the cropland, Daniel Amstutz, the 25-year cartels, for whom the generic certifi­ funny money, with a mechanism to Cargill executive who established the cates wor* to provide even more le­ tighten their grip over the shrinking company's Swiss officein 1954. verage over food supplies here and U.S. food supply. Thus does the fox guard the hen­ abroad. ' The USDA does not represent the house. The certificates-whose total Cargill, for example, can assem­ matter in this light, of course. In the value in circulation is not available at ble millio�s of dollars worth of certif­ words of one USDA spokesman: "The this time-are redeemable in crops icates fro, farmers who set aside all certificatesare just 'a new currency.' " from government-approved storage, kinds of l.nd-Iand for rice, cotton, Here's how the game works-as loan, and "surplus" programs. But wheat, coto-and then, at any time, far as anyone can tell, including the most farmers need cash. So they sell in any lotation, the USDA will be wizards at the USDA. First, beginwith them. obliged td redeem the certificates in the understanding that the federal gov- At present, certificates are going whatever ¢rop Cargill wants.

18 Economics EIR July 18, 1986 Medicine by John Grauerholz. M.D.

Vaccine-preventable diseases return live poliovirus vaccine. In this case Measles. whooping cough. and polio are on the rise. thanks to the problem has been cases of polio the "free market" approach to public health . caused by the ;vaccine itself. These cases were the �rst large suits against vaccine manufacturers, predating the subsequent suits against other vac­ cines. The commQlldenomina tor of suits against these and other vaccines is in Amid the tumult and shouting over shortage of the vaccine is the fear of fact the success of vaccination for these AIDS , especially since the certifica­ rare , but severe and sometimes fatal diseases. The success of vaccination tion of the Acquired Immune Defi­ side effects. This has led many parents for polio, for example, has made the ciency Disease Initiative statute on the to refuse to have their children inocu­ small number of vaccine-associated California ballot, another ominous lated and has provided a basis for a cases unaccept4ble precisely because threat to public health is becoming ev­ resurgence of various and sundry anti­ they represent filmost all, if not all, ident. This is the comeback of a num­ vaccination groups here and abroad. new cases of p

EIR July 18, 1986 Economics 19 BusinessBrief s

Industry or no advance leasing , are the 53-story, Her­ space gliher Sanger. a fully reusable two­ itage Plaza Tower, with 1.2 million square stage vehfcle for transport into earth-orbit. Japanese leader rips feet, and two office buildings with 360,000 The space glider is being developed by and 280,000 square feet of space . The over­ the German Institute for Experimental Air monetarist policies all commercial vacancy rate is 26.8%, in­ and Space Travel and engineers from the cluding complete and incomplete down­ Munich oompany MBB . The basic concept, AIdo Morita, chairman of Sony Corpora­ town and suburban buildings, according to originally developed in 1943 and later re­ tion, told the private Zurich monetary meet­ the survey. fined in 1,960 to 1963 by space-pioneer Eu­ ing ofleading central and private bankers on Yet, the Salomon Brothers investment gen Sanger, was one inspiration for the U.S. June 30 that their policies of monetarism and house predicts that Houston real estate val­ Shuttle design. specUlation have destroyed possibilities for ues will drop another 20-30% before they industry worldwide. hit bottom. "Planeloads of investors would "In my 40 years as a scientist at Sony, I be coming to Houston if we had a 30% de­ have never consulted my banker as to what cline in our real estate prices on top of what or how I should produce any product. I am we've already had since the early 1980s," Food an industrialist. But the situation today with said J. Fred Baca, publisher of the Baca i interest rates, exchange fluctuations and such Report real estate newsletter . "Nobody is Vitanlin deficiency blinds is that industry is run by financiers, not by expecting a dramatic increase in the price of industrialists. oil," said one researcher, referring to Salo­ a million children "Industrialists must play the money mon's statement that there is a "strong be­ speculation game today to stay afloat. . . . lief' in Houston that "oil will again reach Approximately one million children under They are forced to buy and sell companies $30 per barrel and [Houston] will resume the age of six in Bangladesh are blind be­ just like they were any other commodity. the growth path of the 1970s." cause of � disease caused by a vitamin defi­ How can industry be strong under such cir­ Barton Smith, directorof the University ciency, aiBangladeshi health ministry report cumstances? Industry is, after all, the foun­ of Houston's Center for Public Policy, said, released �n early July said. dation of economy. "It's oversimplification to talk about a 20% The 'tport said that most of the children "Unless industry and industrialists are to 30% drop across-the-board . You can't suffer frqm Xeropthalmia, which is caused revitalized, there can be no growth." talk about Houston real estate in homoge­ by the la�k of vitamin A. A separate report neous terms. The residential market has al­ by Helen Keller International , an indepen­ ready hit bottom . . . but commercial real dent groUp,said at least 30,000children lose estate . . . has a way to fall." their eye$ight each year through nutritional weakness. Both reports said the disease was RealEstate most PI'CIvalent in poverty-stricken rural areas . H¢a1th Minister M.A. Matin said at Houston leads Space least 50� could be cured by increased vita­ min intakte . the way down Europe could become

A recent study by Houston real-estate re­ space power in 2000 searcher William D. Berry showed that 72 South l'rica office buildings are currently vacant in Europe should become a space powerof the Houston, some of them major office towers. 21st century and West Germany especially ThatCher: 'What's The largest vacant building is the 34-story should engage in more spaceflight, con­ Phoenix Tower, a 63 1 ,OOO-sqare-foottower cludes a report published June 24 by a task moral about sanctions? completed in 1984 but never occupied. force of the German Foreign Policy Asso­ There are two 47 1 ,OOO-square-foot ciation. British Plrime Minister Margaret Thatcher buildings vacant: One housed a research fa­ The proposed European space program again lashed out at her critics on the South cility for Gulf Oil that was closed after includes development of a space station, African sanctions issue, this time in a Lon­ Chevron took over Gulf, and the other is the launcher capabilities (Ariane 5, Hermes, and don interview with two Toronto correspond­ former southwest regional headquarters of air-breathing vehicles), and capabilities for ents, pu�ished in Canada on July 8. Prudential . Other vacant buildings have Earth surveillanceand military purposes. At Sanc�ions would damage "the most suc­ square footage of: 221,000; 175,000; the same time, a concept of a new space cessful eConomy in the whole of Africa," 160,000; 148,000; 142,000. transport system was presented to the West she said. Thatcher, due to arrive in V ancou­ Still under construction, but with little German Research Minister Riesenhuber: the ver on July II, said those who embrace the

20 Economics EIR July 18, 1986 ,.

• NEW ORDERS for the West German engi�eering industry are down for the March-May period, continuing the recentnegative trend. "symbols and emotions" of sanctions are a tor, the Norwegians and U.K. OPEC is no­ According to the West German en­ serious threat to the well-being of the black where near any accord. The effect of the gineering i�dustry association majority. latest round of global overproduction will VDMA, new �oreign orders for the "What's moral about deliberately and hit the markets about September. Prices entire industry' were down a full 1 i% willfully depriving many black people-and could easily go down to $8/barrel ." from the same' period in 1985 . whites and coloreds-of the living they are Swiss and London banking sources both honestly gaining?" she asked, insisting the project that the oil collapse could finally top­ • A MINI 'COMPUTER devel­ economy has to be preserved so that "when ple the world financial bubble, which has oped by Sovi�t scientists is capable apartheid is over, all the people of South beenheld up by currencymanipulations and of performing up to I billion opera­ Africa can inherit a decent economy . " the like. One analyst reported that we can tions per second, or 50% more than expect the oil price to collapse 20¢ a barrel comparable U.S. models, TASS an­ every day , for the next two months. nounced on July 8. A new state com­ InternationalTrade Inearly July, prices were as low as $5 .50 mittee to oversee the development of a barrel for Kuwaiti crude. Saudi Arabian computer technology was established Light, once OPEC's benchmark crude, trad­ in March. Ibero-American nations ed at $8 a barrel. Normally both the Kuwaiti to form common market and the Saudi Arabianlight are sold for about • GOVERNOR WHITE of Texas the same price as U.S. grades. North Sea has renewedhiis call for an oil-import Brent traded at $9.60 and $9. 80 a barrel. tariff. "Saudi Arabia is tightening the On July 28, Brazilian President Jos� Sarney West Texas Intermediate, the U.S. bench­ noose aroun41 our industry . ... will sign an unprecedented economic agree­ mark crude traded at $11 a barrel. World oil prices are down ....Do­ ment in Buenos Aires, Argentina. The mestic produCtion is off. The impact agreement will include a customs union, is beingfelt in related sectors. There's and is aimed to increase trade between Bra­ one solution tQ theproblem and I think zil and Argentina from last year's $200mil­ Pandemics more people in Texas and across the lion annually to $1.4 billion by 1990. nation are recognizing the need now Brazil plans to sign a similar bilateral for a variable tariff on imported oil. " agreement with Uruguayin August. The Rio Insect vectors daily 0 Globo commented July 6, that Uru­ confirmed for AIDS • PHILIPPiNES Finance Minister guay "is part of the apex of the triangle to Solita Monsop Collas was in Peru in build the Latin American Common Mar­ Two researchers from the South African Na­ early July on a private mission for ket ." tional Virology Institute have demonstrated President Aqllino to study Peruvian Argentine President Raul Alfonsin gave that bedbugs carry the AIDS virus. andMexican debt policies. Collas told a speech July 5 in which he said Latin Amer­ Entomologist Peter Jupp and virologist Peruvian Vice-Minister Gustavo Sa­ ican integration is the only way to overcome Sue Lyons have, for the first time, deter­ berbein that the difference between an "absurd discrimination that we face in mined that an insect feeding on human blood Mexico and Peru is that the firstca n't foreign trade because the more developed could transmit the disease, the French daily pay and discretely does not, while countries have policies to prevent our de­ Quotidien de Paris reportedon July 5-6. Peru proclaimsit with audacity , which velopment and seek to keep us in stagna­ Preliminary research has established that could bring problems. Saberbein re­ tion." the virus fromcontaminated blood survived plied that the real difference is that a few hours when the bloodwas ingurgitated Peru has a debt under $20 billion, by a bedbug . This discovery indicates that while Mexico�s debt is just under $100 Oil the insect could contaminate a healthy indi­ billion. vidual bitten some hours after the contami­ Price predictions nated blood was taken by the insect biting a • CHINA'�first domestic satellite sick individual. network is nOw operating, and offi­ promise more declines The two researchers also noted that a cials say it should be a major boost to greater portion of developing-sector chil­ modernization efforts, the New China The recent collapse of oil prices again to $10 dren are infected with the HTLV-IIIILAV News Agency:said in early July. ''This a barrel , has unleashed expectations of a virus than in developed countries, and that is a great step forward in the modern­ drop to new lows. A spokesman for Petro­ this indicated that "the disease could be ization of China's communications leum Argus in London told EJR on July 7, transmitted in other ways than simply system," ViCe!Premier Li Peng stated "The prospect, at least in the short-term, is through sexual contacts," Quotidien con­ at a ceremon� in Peking. bleak. The Russians are an increasing fac- cluded.

EIR July 18, 1986 Economics 21 �TIillScience & Technology

Livennore Laboratory

vindicated on x-ray Ilas er The campaign to prove that the laboratory's extraprdinary successes were aJra ud, has been blown out ofthe water by a new government report. Carol White reports.

As we reported in the May 30 issue of this magazine, a very As EIR's Charles Stevenls wrote at that time: "Teller nasty smear campaign has been conducted against Lawrence explained that U . S. experime�ts have shown that the nuclear Livermore Laboratory, as part of the ongoing effort by the powered x-ray laser, whose principle 'is established,' can -be pro-Soviet lobby in the United States to wreck U.S. defense designed to send a beam a thc>usand miles with a spread of capabilities. In June, the U.S. General Accounting Office no more than five feet. This !degree of focusing, which is (GAO) released a report clearing the laboratory of charges thousands of times better than Iwhat SO I critics have claimed that it had deliberately attempted to defraud the government, to be physically possible, mtans that a single x-ray laser by exaggerating claims for its x-ray laser experiment. device could destroy upwards of tens of thousands of nuclear The laboratory was accused, by both the Los Angeles warheads and missiles at any state of their trajectory. " Times and Science magazine, of falsifying its startling suc­ Teller also confirmed the learlier statements by SOl Di­ cess in focusing nuclear-pumped x-ray lasers. Their attack rector Lt.-Gen. James Abrahamson, that the Soviet Union followed upon an article which appeared in the New York was between two and fiveye�s ahead of the United States in Times in November 1985, in which science correspondent developing the x-ray laser. A �ide feature of the GAO report, William Broadleaked the news of the Livermore results. is the admission that in the United States work on the nuclear­ In responseto the Los Angeles Times allegations, Reps. pumped x-ray laser is being hampered by strictures limiting EdwardMarkey (D-Mass.) and Bill Green (R-N. Y.) request­ the ABM defense system development to non-nuclear missile kills. As a result, work on the -ray laser, despite the extreme ed that the Department of Energy look into the matter. The iI DOE report clearing the laboratory of charges, was then promise of the results, is beiqg mandated to "assess the po- submitted to the GAO for further review, to make doubly tential of Soviet nuclear directed-energy work," rather than sure that the laboratory was not involved in a fraudulent to give the United States this �apability. attempt to gain funding. The whole tenor of Markey and Green's questions, is to Froma certain point of view, the furor about the results reproduce press slanders against the SOl, and in particular was understandable, since they showed an amazing ability to the x-ray laser program. By rytising the red herring of fraud focus lased x-ray beams. These results refuted once and for on the part of the national la�ratories, they are hampering all the claims by incompetent critics of the Strategic Defense the work of the labs, already starvedof necessary funds. Initiative (SOI)-notably the congressional Office of Tech­ Clearly, the x-ray laser is an essential part of an effective nology Assessment-that the x-ray laser would never work. SOl configuration, but the reaiity is that the program is being Ironically, wasit the verysuccess of the experimentwhich held back by a combined oper�tion. On the one hand, kinetic­ provided the pretext for the attacks upon Livermore. Such an energy-weapons development is absorbing the majority of intense lased beam was created, that the diagnosic instru­ funds available to the SOl, de$pite the fact that missile ABM mentation could not properly measure it. Follow-up tests systems have, at best, a limi�d application as point-defense confirmed the impressive results, as Dr. Edward Teller re­ weapons. On the other hand� President Reagan has placed ported to the Senate on May 9 of this year. the directed-energy-weapons Iside of the program in a stra-

22 Science & Technology ElK July 18, 1986 The Novette laser at Lawrence Livermore National Laboratory was usedfor the experiments which yielded a startling ability to fo cus lased x-ray beams.

Lawrence Livennore it jacket, with the stricture that only non-nuclear ABM de­ search program with many unresolved issues. In our opinion, vices will be developed under the SDI. there was no "design flaw"in the diagnostic instrumentation It would be more appropriate to subject the pro-Soviet as mentioned in the Los Angeles Times article. However, lobby on U.S. defense policy to investigation, than wasting analysis of test data by Lawrence Livermore National Labo­ the taxpayers' money and scientists' time by answering their ratory (LLNL) scientists raised questions about the accuracy false charges. The real fraud is the attempt by congressmen of some experimental data. As a result, some diagnostic and the media to cover up the fact that the Soviets are vigor­ equipment was reconfigured. These unexpected measure­ ously pursuing their own anti-ballistic missile defense pro­ ment uncertainties are now much better understood. In our gram, at the same time that they are using every means to opinion, there was no need to delay the latest x-ray laser persuade the United States to abandon the sm. nuclear test. We also found that the x-ray laser program was not being arbitrarily accelerated. No tests in the atmosphere Wefeel that it is a usefu l service to our readers to reproduce or space of the nuclear explosive driven x-ray laser are envi­ extensive excerpts from the GA O report. even though this sioned, according to LLNL officials. version is an abridgment fr om a longer non-classified ver­ Our evaluation of DOE's answers to the questions is sion . The report is addressed to Samuel Stratton. chairman. included in the appendix. The answers that DOE provided to Subcommittee on Procurement and MilitaryNuclea r Affairs. your Subcommittee are generally consistent with what we Committee on Armed Services. House of Representatives: found during our review of selected aspects of the x-ray laser program. Classification restrictions limit the amount of de­ This briefing report responds to your May 14, 1986, request tailed information we can present in this unclassified briefing that we review the Department of Energy's (DOE's) answers report. to a series of questions raised by Representatives Edward We performed our work at DOD's smo and at DOE's Markey and Bill Green about the x-ray laser program which Officeof Military Applications, LLNL, Los Alamos Nation­ DOE is conducting for the Department of Defense's (DOD's) al Laboratory (LANL), and Sandia National Laboratories Strategic Defensive Initiative Organization (SmO). Many of (SNL). Also, we contacted members of the JASON group, these questions resulted from press reports, especially a No­ which advises DOD and DOE on national defense scientific vember 12, 1985, Los Angeles Times article. During the and technical issues. Our evaluation was based on a review period from December 1985 to April 1986, we reviewed of various x-ray laser program documents, reports , letters, selected aspects of the program to answer these same ques­ and memorandums, as well as interviews with program man­ tions at the request of Representatives Edward Markey and agers, scientists, and reviewers. Most of our work was per­ Bill Green . formed at LLNL. ... We provided a detailed classifiedbrie fingon the results of our review to Representatives Edward Markey and Bill Answers to questions by Markey and Green Green on April 10, 1986. We also provided you and Repre­ sentative Marjorie Holt with the same briefing on May 14, Question 1: How is the performance of the x -ray laser mea­ 1986. sured, and what is the nature of the design flawthat has been Essentially, we found the x-ray laser program is a re- identifiedin the dl!vicementioned in the press account? What

EIR July 18, 1986 Science & Technology 23 " , effect does the flaw have on the data that has been gathered GAO's evaluation: The DOE I� esponse is consistent with the on the x-ray laser program? Do the problems that have been infonnation we obtained du ng our review. None of the ri " , identified relate only to last spring's test or all of the x-ray individuals named in the Lo� Angeles Times article ques­ laser tests that have been conducted to date? tioned that lasing has occurr4d. As shown in Question 1, DOE's response: There are four propertiesof the x-ray laser absolute power calculation inac uracies occurred in past tests. that detennineits perfonnance: (a) the total power in the laser t beam; (b) the color of the laser light; (c) the size or spreading Question 4: Reports suggest ��t while there have been some (divergence) of the laser beam; and (d) when the laser beam adjustments to the measuring revice, further adjustments to turns on and how long it lasts. The measurement of these the device (that would pennit fTIore accurate readings of the properties is a difficult task because of the nuclear environ­ laser's intensity) could not h,ve been completed until six ment and the high intensity, short timescale of the lasing months after what the press *ports identify as the "Gold­ process. There was no "design flaw" in these experimental stone" test. Is this the case? Provide an assessment of the measurements. The high intensity laser pulse interacts strongly feasibility of temporarily delaying testing until these techni­ with the measuring device during the time of observation. A cal problems had been resolve�. scientific question was how accurately we could make the DOE's response: See classifi�d answers. measurements and, thus, whether the quoted absolute power GAO's evaluation: Provided in classfied briefing. ! was correct. GAO evaluation: The DOE response is consistent with the Question 5: Is it true that the $chedule for x-ray laser exper­ infonnation we obtained during our review. We agree there iments is going to be accelenhed? What is the justification was no "design flaw" as such, but cannot explain the basis for this acceleration? Provide �n assessment of the validity for our conclusion in this unclassified document. of this justification. DOE's response: Since its inqeption the x-ray laser program Question 2: In addition to the measuring device that has had has been operating on a resource-limited basis. Because of these problems, examine what other instruments are used to the impact a Soviet x-ray laser would have on United States gather data on x-ray laser experimentsand explain what kind Strategic Defense Initiative (SDI) architectures, the Fletcher of infonnationthey provide. Panel strongly recommended acceleration of the x-ray laser DOE's response: The color of the laser light is detennined program. The only way we have of assessing the potential of by a variety of high-resolution spectrometers. These spec­ Soviet nuclear directed energy work is to conduct such re­ trometers measure the line energy and intensity of the lasing search ourselves. If infonnatio� on weapon feasibility for the transitions and also measure detailed atomic physics of laser counterdefense mission is to be provided to the Strategic materials. The size of the laser beam is detennined by a one­ Defense Initiative Organizatiop (SDIO) in a timely fashion, dimensional imaging instrument. The time history of the laser the program must be accelerated. beam is detennined by the same diagnostic that measures the GAO's evaluation: The DOE response is consistent with the total power. This instrument measures the temporal shape of infonnation we obtained during our review. The Fletcher the laser beam, when the laser beam turns on relative to the Panel recommended a technology-limited, not a resource­ nuclear pumping source and how long the laser beam lasts. limited, program. The DOD ar,dDOE officials we contacted GAO's evaluation: The DOE response is consistent with the stated acceleration is needed to provide data to SDIO in a infonnation we obtained during our review. timely manner.

Question 3: The press reports indicate that tests show the x­ Question 6: What is the overllll funding for the x-ray laser ray experiment is lasing, but that tests do not provide suffi­ in FY 1986? Please provide a d�tailed breakdown of the types cient infonnation regarding the intensities such devices can of activities supported by thes� funds. Is there a strong sci­ achieve. Is this so? Please provide infonnation on the kind of entificand technical basis for accelerating x-ray laser funding intensities detenninedto be necessary for the various military at this time? applications currently under consideration for an x-ray laser DOE's response: The overall funding of the x-ray laser weapon and compare them to other candidate laser systems. program and a breakdown of the activities and the amount of DOE's response: There is no controversy over whether x­ funds supported by the program are classified. The basis for ray lasing has been observed. The purpose of the ongoing accelerating nuclear directed energy weapons (NDEW) re­ research program is, among other things, to detennine what search is to assess adversary threat at the earliest possible intensities an x-ray laser can achieve. date. X-ray lasers have several potential military applications GAO's evaluation: The DOE (esponseis consistent with the including counterdefense, booster kill, post-boost vehicle infonnation we obtained durin, our review. kill, reentryvehicle kill and discrimination of reentry vehicle decoys. The technology requirements for each mission are Question 7: We have heard that the SDI Program Officehas different. a program that will provide $38 million in contracts to the

24 Science & Technology EIR July 18, 1986 DOE weapons laboratories. Press reports indicate that these account in their planning for futuJ1 research and testing of funds are being provided on a "reimbursement basis" for this device. nuclear-related research. Is this so? What exactly will this DOE's response: In all the classi ed reviews held to date , money be used for? Will it supportthe x-ray laser program. there has been unanimous opinion �at x-ray lasing has been DOE's response: $38 million in reimbursable funds are being demonstrated. In all the scientific aftd program reviews, the made available from the SOlO. Of this $38 million, the LLNL staff have used the most cUrrent and most accurate LLNL share is $20 million. These reimbursable funds in the information available. Most of the !scientific reviews have, LLNL program will be used in areas of significant and legit­ in fact, been requested by LLNLj in order to provide in­ imate Department of Defense (DOD) interests. Areas ad­ dependent peer review of the results and progress. In all dressedby these funds are: systems analysis studies, weapon cases, we have accurately conveyed the current statusof the platform studies, and acquisition, pointing and tracking sys­ x-ray laser program to all levels lof government and the tems. These augmented funds potentially help to accelerate scientificcommunity . No major dis,greements with LLNL's a more broadly based x-ray laser program. presentation have been expressed. I!T he outcome of the re- GAO's evaluation: The DOE response is consistent with the views have, in general, been enthusiastic support for the information we obtained during our review. In fiscal year program as laid out by LLNL. The program management 1986, $38.0 million is being provided by the Military Inter­ has always used the most current I information to plan for departmental Purchase Request process to be used for matters the future research and testing of th� x-ray laser. Since there of interest to the DOD. Of this $10.0 million is going to is still much to learn about x-ray :lasers, there have been LLNL for the x-ray laser program. Only a small portion of changes in the underground tests and their associated ex­ the remaining $18.0, going to LANL and SNL, is earmarked periments to addr:ess the physics �d systems issues of an for the x-ray laser program. Detailed explanation of fund x-ray laser weapon. The ongoing !nternal and external re­ usage can not be provided in this unclassifieddocument . view process has been a normal parthf the program planning, and we have always tried to incorp�rate any suggestions we Question 8: We have also heard reports that there may be have received during the review tkocess. We know of no an additional $62 million available in DOD accounts, either example where a major scientific concern was not fully in the SOlO budget or elsewhere, to support additional x-ray considered prior to the planning or execution of an under­ laser tests in FY 1986. Is this true? Just what will this money GAO's evaluation: The limited �cope of our review and be used for? Are these additional funds fully justified? DOE's use of all inclusive terms ddes not allow us to express DOE's response: The program is in a state where additional an opinion on the DOE responsel However, we have no funds can be used to accelerate the rate of technical progress. know ledge about the program that �ould cause us to question If the additional $62 million in funds available from the DOD the accuracy of DOE's response b�sed on our review of the can be transferred to the DOE, this money could be used to x-ray laser program. ! accelerate the rate of testing. We interviewed all the individ�ls named as reviewers or GAO's evaluation: The DOE response is consistent with critics in the Los Angeles Times 4rticle. These individuals the information we obtained during our review. DOD has were not outside or independent dritics, but were program proposed a one time $62.0 million appropriation transfer to participants or peer reviewers . As:such, they were offering be divided between LLNL, LANL, and SNL. The majority constructive criticism. We also intdrviewed other individuals of these funds, if approved, will go to LLNL to be used we identifiedas program reviewers. primarily for x-ray laser research. DOD and DOE officials Overall, the above individuals generally supportthe cur­ we contacted told us these funds are needed to accelerate rent x-ray laser program, but they1 have identified problems the x-ray laser program. or issues which must be addressep. These issues were , or are , being considered by x-ray laser program managers. Question 9: The attached Los Angeles Times article indi­ LLNL officials also kept SOlO officials apprised of cur­ cates that several classified reviews of the x-ray laser pro­ rent program status. Program results were presented at a June gram have called into question earlier claimes for the weap­ 1985 briefing. When some of these results had to be modified, on's success. The first of these critiques was issued as far due to the measurement inaccuracies (see Question 1), anoth­ back as August of 1984. According to the article, by last er briefing was held in July 1985, ;at which time the revised summer scientists from the Los Alamos Laboratory, the data was presented. Livermore Laboratory, and the Jason group had all identified Question 10: What explosive yieilds have been determined serious technical problems with this program. Please ex­ to be necessary for nuclear testin� in support of research on amine these internal reports and interview the individuals the various military applications of an x-ray laser? According who prepared them. Provide an assessment of these critiques to current planning, at what poini (if any) would explosive and their implication for further research on the x-ray laser testing in the atmosphere or in space be needed? program. Examine whether the officialsresponsible for man­ DOE's response: See classified� nswers. aging the x-ray laser program took these criticisms fully into GAO's evaluation: Provided in classifiedbriefi ng.

EIR July 18, 1986 science & Technology 25 Weinbergercounters anti -S�II lobby The secretary ojdfif ense likens President Reagan's vision qf strateg ic defe nse to President Kennedy 's space exploration dream. I

On June 23, the U.S. Space Foundation was addressed by seemed so clear to that young President that any effort to Dr. Edward Teller and Defense Secretary Caspar Weinber­ chain men forever to the Eartl), to deny them access to the ger. Both endorsed a broad approach to the U.S. space pro­ vast oceans of space, would sUfely be doomed. gram, supporting the ambitious goals of the National Com­ Man is an explorer, is an a�venturer. He is, to put it quite mission on Space, and both warned of the grave danger of simply, as he should be: very curious. Curious men and congressional moves to reduce, to below the rate of inflation, women have always looked toward the stars and wondered. the monies made available for development of the Strategic They have always asked ques�ions about that infinity. And Defense Initiative (SDI). Teller warnedthat even the Reagan they have always reflectedon their place in the universe. And administration's original request for the program, $5.4 bil­ what made President Kennedy' � challenge so compelling was lion, was far too low. that it really struck so purely �t the very core of our nature, In answer to a question about the state of the Soviet as thinking men and women. , program, Teller said: "The CIA hasn't told me, and what's America could sit back anq debate budgets and question worse, the CIA doesn't know." He then described the major feasibility, and defer decisioqs , and refer things to expert laser laboratory facility which the Soviets have at Tyuratam, committees, but you couldn'� just spend that time, you calling it "the kind we cannot have for another few years." "I couldn't just spend all of our �trengths calculating possible hopewe will have one like it before the end of the decade," commercial spin-offs, or things of that kind. We couldn't he added, "unless the Senate and the House cut back the really refuse to explore vigorqusly the unknown reaches of budget." Teller quipped that we should really call our pro­ space , and, by definition, to etplore them before they were gram the Strategic Defense Response, since it was the Soviets safe to explore, before all of toe possible arguments for and who had initiated the program. against had been exhausted. : Secretary Weinberger warned, when asked about the ef­ Kennedy's message was, 40n't delude yourself. Others fects of a threatened $3 billion cap on the program, that such will not hold back. Others win take the risks. Others will a cut "would stimulate a very much larger activity in the spend the money. Others, therefore, will enjoy their rewards, Soviet Union, which we would not be able to monitor or and yes, it will be necessary o¢casionally to accept the pain measure. They would be quite encouraged by the fact that of failure in trying to do those !pings. we were slowing down ....It would delay undesirably the Today, we really have another vast challenge set before time in which we would be able to determine whether and us. This President is older in years, but he's as young and when we can deploy." imaginative in spirit as anyoqe in this country. President Reagan has challenged us now �o finda way to transcend the The fo llowing are excerpts from Secretary Weinberger's threat of mutual suicide that is �he consequence of the deter­ speech at the U.S. Space Foundation on June 23,' rence based on offensi ve nucle� weapons. He has challenged us to devise a way to rest our s�curity on defense rather than It's just hard to realize that it is just a little over 20 years ago, revenge. And he has asked, in' short, that through our inge­ that President Kennedy seized the imagination of the na­ nuity and our technological genius and skills, that we relegate tion ....He didn't really do very much more actually than nuclear missiles to the dustbin: of history. As in the case of recognize the obvious, but it did seize the imagination of the President Kennedy's call to sel1d a man to the Moon, Presi­ nation and the world. And, he said the exploration of space dent Reagan's Strategic Defe�se Initiative will, of course, will go ahead whether we join in it or not. We choose to go demand sacrifice. It will, of cqurse, occasionally have fail­ to the Moon in this decade, and to do the other things, not ures, as we proceed along the �ad to success. are are because they easy, but because they hard. And it But what other altematives1really do exist for us? That's

26 Science & Technology EIR July 18, 1986 programs and they were all by perfectly reasonable people who had no axe to grind. They didn't want to just kill the program, but were just quite sure that this was something that American should not embark on. And it was overriding those

arguments, that I take great pride in now. . . . So long as we have a space program, the American spirit has a living symbol. And there's no question that the loss of the Challenger has resulted in very significant setbacks in civilian and the defense components of our space program, and we've never tried to hide that and we shouldn't .... One set of reactions to the Space Shuttle tragedy, of course, was completely predictable ...what I think was a most unseemly haste, a rush to point out the Challenger failure as an argument that a reliable defense against Soviet missiles is unobtainable. The logic, of course, should be and was lost on many, and they belabored a most obvious truth, that advanced technologies are indeed complicated. But their criticisms are no more compelling than the array of charges-many of them contradictory-that we have been hearing since March 1983 about the Strategic Defense Initia­ tive, when the President firstannounced it. Strategic defense, we are told, will be impossible to build, prohibitively expen­ sive , easily overcome by Soviet countermeasures, and des­ tabilizing, and it will oreate an arms race in space. But I have not yet figured out how it is possible for a technologically infeasible, economically disastrous, easily neutralized mili­ tary system also to be destabilizing. If it is so unobtainable, NSIPSISluartLe wis why have the Soviets been working so desperately on it for Defense Secretary Caspar Weinberger 17 years? Indeed, you hear very little about the Soviet strategic what we should ask, as President Kennedy asked in connec­ defense program from our critics. They prefer to ignore it. tion with the original challenge of space. And very much like And what leads them to their "destabilizing" argument is the the challenge of reaching the Moon, President Reagan's chal­ fact that they don't seem to realize that the Soviets are very lenge to all of us to defend people from nuclear missiles has well advanced toward achieving what we must achieve, and encountered an endless array of critics and skeptics .... what I'm confidentwe can achieve. In the aftermathof that Shuttle disaster, a most important Our strategic defense critics have set out on a new course, and a very little-appreciated thing happened ....The Amer­ one that avoids contradictory arguments by avoiding argu­ ican people made clear that they wanted us to continue, and mentation altogether. We now simply hear that the funding a large factor in that was the President's magnificient and levels are too high and must be cut. I think we should be quite eloquent address the night of that tragedy. On Jan. 30 of this clear about what's going on. year, which was just shortly after the death of the seven The effort to slash the SOl budget request is nothing more astronauts, polls revealed that 85% of those questioned said or less than an attempt to strangle the program in its cradle. they wanted the Shuttle program to continue. In fact, more And the same is true of efforts to definewha t we may continue people consider the Shuttle a good investment today than did to do with respect to SOl. ...But even with the increases in 1981. And a sizeable number of men and women would that we think the program requires, even with a budget, as still volunteer to flyon the Space Shuttle. the President submitted it, strategic defense would represent This program has very wide and very deep support . And about 1 .5% ofthe total defense budget. The Soviets seem not of course I take a personal interest in it, since I was at OMB to heed the cries of skeptics, if cries of skeptics are permitted [the Office of Management and Budget] at one time, and at there , for they spend just as much on strategic defense­ the time I was there , the Space Shuttle program came up for including air defense-as they do on strategic offense. consideration. This was all the way back in 1971 and '72- The fact is that the assault on the strategic defense budget in that range. And I think it's fair to say that the staff of OMB is an excuse, really, I think, for avoiding serious thought was unanimously against the Shuttle program. And we heard concerning the strategic problems of our time. It's so much all of the arguments that we've heard about so many other easier not to have to bring any new concept in. And indeed,

EIR July 18, 1986 Science & Technology 27 one of the problems with strategic defense, is that it repeals separated from the boosters. e purpose of the President's the education of so many people who have committed them­ initiative is not to return to so e idea of Mutually Assured selves to only one kind of strategic concept. And with the Destruction. It is not merely to rotect our defensive missiles, failure of the SALT II accord to do anything but allow a large or anything of the kind. It is it to protect those, so we can growth of the Soviet strategic arsenal, and with even that better threaten retaliation. It ir> a totally new concept; and accord regularly violated by the Soviets, we have to consider part, at least, of the confusion �at our opponents pretend to how we might transform the basis on which we construct and find, arises from the fact that �t is a new concept, and that maintain a nuclear balance. people still may talk in terms pf targets that would be pro­ Arms reduction talks must remain a part of our overall tected and the missiles that w�uld be protected. But that is strategy for dealing with a very aggressive Soviet Union. We not the goal of the system in a� sense. really need arms reduction and we need it very badly, and we If we can, as we seek to , <¥stroy Soviet missiles before have not had agreements that brought it in the past. And they get into the Earth 's atmosphere , then, yes, we can pro­ negotiations must be integrated into a larger framework that tect our people. And if we ca . do that, yes, we can protect includes our own strategic modernization, conventional de­ some other things. But more than that, we can make the terrence, and vigorous research into strategic defense, with missiles obsolete and impotent . It isn't a matter of protecting nothing done to ban our ultimate ability to use strategic de­ the sites or protecting points �r protecting missiles or pro­ fense. tecting a retaliatory capability It is a matter of destroying We must understand that the SALT II variety of arms Soviet missiles outside the at osPhere of the Earth, before control is both obsolete and undesirable. President Reagan they get near any target. And� here is �ot the slightest con­ has said that we want treaties that result in real reductions in fusion about that in the admin stration ; and there is not the nudear arms, and not agreements that allow or codify mas­ slightest misunderstanding a�t it. And I'm sure that most sive Soviet growth .... of our opponents who talk abqut that-that being a reason And now I'd like to deal with another attempt to defeat for reducing funding-know itJperfectly well .... and ridicule the strategic defense-and that is the claim that As with the American spa'fprogram , for which all of there is no unanimous agreement as to its objectives, as to its you have done so very much, re President's dream of de­ goals. . . . We believe that a veryfundamental part of a more fense against missile attack, his1� dream that we can someday stable nuclear balance, and a far more durable policy of protect our citizens from the thteat of nuclear holocaust, is deterrence, will be the advanced technologies that compro­ compelling to those capable of looking behind the narrow mise strategic defense. And if our research into this proves confines of the commonplace and the mundane. And it is fru itful, as I believe that will-stability will be achieved, I only those, I think, disposed to dream of the future , who can think, rather than the systems that we have had to rely on build space stations, launch probes beyond our solar system, now. And even a partially effective defense of the nation and send Americans to distant plarU!ts, bring them home, and, of the allies would be a powerful deterrent to the Soviet yes, create a reliable defense against the horrible weapons of Union, as well as from the maverick nations which also war, a defense that involves destroying them outside the have-and more that will have-nuclear missiles. atmosphere of the Earth before they get near any target, and Such a system of strategic defense would so complicate is not designed to protect any retaliatory capability, but is Soviet first-strike planning and introduce so much more un­ designed to protect people . . . .! certainty into their calculations, that they would, I think, be deterred from the target. At least, they would have a great Q: When the Shuttle comes ba¢k on line in the next couple deal more to take into consideration. Moreover, it's essential of years, there will be a backlog of both defense as well as that strategic nuclear deterrence not be based only on the commercial ventures trying to get onboard. Do you see the threat of retaliation, which is what we have to do now-a commercial ventures being bumped in favor of national se­ mutual suicide pact of Mutually Assured Destruction. Of curity? course, we continue with that now, because we have nothing Weinberger: We would have j to find out how many re­ else. But that should not prevent creative, inquiring minds, sources were available, what Was our capability and our and minds-such as the President's-fully willing to accept capacity. It is, I think, quite risky for us to allow very much challenges to the conventional wisdom, from trying to get time to go by without replacing I in one way or another, the something better. And that's what he's doing. ability of the military payloads td becarried aloft. And I think that a great deal of the answer to whatever continued com­ A totally new concept mercial activity we could have! would depend on the total The objective is very simple: to destroy enemy missiles, number of resourcesand the abilityto satisfy the very urgent and to destroythem as far away from any targets on any point military requirements that will flow from the backing-up you on Earth-preferablyoutside the Earth's atmosphere-as we describe. can. Ideally, of course, before the warheads have even been Meanwhile, I am basically a great advocate of the private

28 Science & Technology EIR July 18, 1986 sector and privatization, and I think we ought to explore and at the moment. With any effort of th�s kind, there's bound to try to develop as many ways of supplementing whatever be a very substantial improvement in the quality of life of capabilities the governmenthas with private initiatives. millions of people, hundreds of mitlions of people, really, just as has followed from the space program. Q: Mr. Secretary , you spoke of the importance of the East­ I think this is why so many Europeancountr ies, after their West relationship of arms control . How, in your view, will political leadership initially reacted thesame way many peo­ SDI contribute to arms control and the reduction of Soviet ple here did with respect to strategiC defense, because of its weapons? Do you feel that, on the one hand, the prospects of novelty and because it doesrepresellt a total departure from a successful SOl will so intimidate the Soviets that they will conventional wisdom. But as they s¢e more about it, as they voluntarily or through negotiations reduce their levels? Or do are now, more and more they want to be part of the program. you see the SOl program itself as a negotiable element in And it is very important that they do. I will be welcoming the these talks with the Soviets, i.e., will you negotiate certain defense minister of the United Kingdom tomorrow for his elements of the SOl program? first visit here, and we certainly are going to discuss at very Weinberger: I don't think we should do anything at all that great length the commercial benefits, as well as the strategic would hamper our ability to do the necessary research at the benefits fromour both working on this program together, as best level we can, the most consistent with the necessities we have now signed to do. and the realities of the situation, that is, nothing should ham­ perthe research program and certainly nothing should ham­ Q: Mr. Secretary, do you see any possibility of the SOl per or delay in any way our ability to deploy a strategic becoming a bargaining chip? defense system, should the research prove, as I believe it Weinberger: No sir, I do not. I think that the President is will, fe asible. too firmlycommitted to it. It has mlilchtoo high a priority in That said, I don't see any reason at all why we can't have his mind. He is not putting it· forward as something to be very effective agreements to bring about substantial reduc­ given away. In the first place, what you would get for it tions in offensive systems and arms , if, indeed, the Soviets would be promises that would ultimately have to be proved want them. We urgently want them. We want them to be real to be faithfully kept. And you would also be giving up the reductions. We want them to be thoroughly verifiable. And ability to finance a program of this kind, while conceding to it would seem to me that, since the Soviets are working very the Soviets, because of the differences in their system and vigorously on strategic defense, and I'm sure haven't the the closed nature of their society and ability to keep on work­ slightest intention of slowing down their work on it, no matter ing on it by themselves, as indeed they have now for 17 what they might sign, it would appeal to them that, if there years. They wanted urgently to maintain their monopoly, and can be a Strategic Defense Initiative developed in the United that would be what they would be bargaining for. And I don't States, that it would be very clear and underline the lack of believe the President would have any real desire to help them necessity, not only for an ever-increasing number of offen­ in that process, particularly in view of the importance he sive weapons, but be a strong, impelling argument for the attaches to protecting them, rather than just getting a better reduction of many of those offensive weapons; and that, or a larger way of destroying them. therefore , I think the two go hand-in-hand, that is, the ability to continue working on strategic defense-not with some Q: Mr. Secretary , if the SOl budget is cut to the $3 billion ineffective or narrowly defined research that basically is de­ level as the senators are now saying it should be, what would signed to persuade the Congress that they shouldn't fund be the implications of this as far as the ability to affect a anything, but would permit full-scale development as soon program and the future for the United States? as possible, and deployment. ... Weinberger: Two or three things. I think it would stimulate a very much larger activity in the Soviet Union, which we Q: I wanted to know if you see a point of convergence where would not be able to monitor or measure because of the nature SOl, as a defense initiative, and the Space Act, statedly for of their society. They would be quite encouraged by the fact peace and the benefit of all mankind, can publicly improve that we were slowing down. It would slow us down and it the perspectiveof both supporters and adversaries? would, I think, delay undesirably the time in which we would Weinberger: Yes. It seems to me that, inevitably, there will be able to determine whether and when we can deploy it. be a very great deal of major benefits, totally aside from the And it is, I think, very important that we not have that slowing strategic benefits of having a much larger number of people down process. It will also make the whole process more protected and safe, that will flow from the program itself. expensive because we can always, with larger initial invest­ Just as there is an inevitable large amount of commercial and ments, do more at a time when prices will inevitably be lower quasi-public fallout from research on this scale, and particu­ than they will be in the future . I think the main worry , how­ larly research that delves into so many new technologies that ever, is the fact that it will slow down and distort the planned can have uses that many of us can't even perceive or conceive research in a way that can delay us in a very undesirable way.

EIR July 18, 1986 Science & Technology 29 �TIillFeature

A golden moment to act against the All )8 pandemic by Warren J. Hamerman, Director '. EIR Biological Holocaust Thsk Force

A golden opportunity now exists to stop the spread of the acquired immune deficiencysyndrome (AIDS). The Californiasecretaty of state has certifieda ballot initiative undertaken by the Prevent AIDS Now Initiative Committee (PANIC), backed by nearly 700,000 petition signers. The initi�tive will let voters in Novem­ ber decide if they want government and p.ublic-heaiIth officials to continue their coverup and inaction in the face of this deadly epi�mic, or to implement tradi­ tional public-health measures to halt the spread of the disease. Each day, new and horrifying developments on the AIDS front from all parts of the world are reported. Only the Soviet Union an4 its Warsaw Pact allies are to date, apparently, relatively unscathed. World Heal,h Organization (WHO) and U.S. Centers for Disease Control officials, who only yesterday were lying that AIDS was a threat limited to certain so-called high-risk groups, and not widespread at all in Africa, have now been overwhelmed by eve�ts. Their lies stand exposed. What the EIR Biological Holocaust Task Force alone raised at the November 1985 Brussels Conference on AIDS in Africa, namely, that tens of millions of impoverished "non-risk" Africans are infected with the 100% fatal disease, is now ' becoming generally accepted as truth. Evidence has accumulated that in the tropical hellholesof Africa, Ibero-Amer­ ica, the Caribbean, and southern Florida, AIDS is spreading out of control-the result of the conditions of enforced poverty deliberately created by the IMF and World Bank in these areas. Scientists are now warning that, in Africa, the ;'post-AIDS diseases," three deadly hemorrhagic fevers carried by wild rodents, .fleas, ticks, and monkeys­ Lassa fever, Marburg virus, and Ebola virus-are breaking out of their "reser­ voirs." If anything, these have an even faster and more widespread "kill potential" than AIDS. The only institution in the world which has accu�ately evaluated and reported the growing threat of "biological holocaust" has been the EIR Biological Holocaust Task Force, formed in 1973 at the initiative of econc;,mist Lyndon H. LaRouche, Jr. The Task Force has published three major scientificstudies to date, and dozens

30 Feature EIR July 18, 1986 A distastefu l scene from a San Francisco "gay" parade on June 28. Hundreds of thousands of homosexuals have denounced Lyndon LaRouche as a 'fascist" fo r proposing measures to attempt to save them fr om otherwise certain, early death . "One can only conclude that these homosexuals are suffering a very special kind of insanity."

NSIPS

of reports, on these questions: housing, and water systems; II) activation of the National A. In early 1974, the Task Force published a now-famous Disaster Medical System (NDMS); 12) U.S. withdrawal from forecast on how deadly new, newly "recombined," and reac­ the Soviet-dominated WHO. tivated old diseases would be the inevitable consequence of The 140-page EIR War Plan is the only proposal for a then-proposed "zero-growth," "Fourth World triage," and global effort to wage war on disease. brutal "population-reduction" or mass-murder policies of the We are at a unique historic moment. The combination of IMF, World Bank, and Bank for International Settlements. the PANIC initiative in California, the acknowledgment of B. On July I, 1985, the Task Force published an EIR the general threat to "non-risk" populations, th� Supreme Sp ecial Report entitled, "Economic Breakdown and the Threat Court decision against sodomy, and a growing movement in of Global Pandemics," in which the 1974 study was reviewed lbero-America against the IMF have created an opening for in the context of the unfolding "biological holocaust" in Af­ concerted action. rica and the overwhelming of the health defenses of the United Mankind has the scientific resources, if mobilized, to States and Europe. High officials of the U.S. government successfully colonize Mars within the first three decades of dismissed the EIR report on the grounds that we would be the coming century . We must utilize that scientificand eco­ correct but for the fact that "economic recovery" was raising nomic mobilization capability now to implement the full EIR the standard of living in Africa, the United States, and around War Plan against AIDS. the world. These officials also rejected the EJR evaluation Recently, scientist Edward Teller echoed the proposal by that AIDS was a threat to national security. EIR for a Biological Strategic Defense Initiative against AIDS. C. On Feb. 15, 1986, the Task Force published another Other scientists internationally have also endorsed the thrust EIR Sp ecial Report presenting "An Emergency War Plan to of the EIR War Plan. Fight AIDS and Other Pandemics." It contained a 12-point All that remains in the way is the "political" and "budg­ War Plan to combat AIDS and other disease threats: etary" impediments imposed by governments, which persist I) Declaration of war mobilization; 2) universal screen­ in judging it too "costly" to fight for life. No institution, ing; 3) an Apollo Moon-shot-scale crash biomedical research force, or individual who stands in the way of launching that program; 4) full state-of-the-art medical treatment for all fight can be allowed the continued liberty to destroy society. confirmed cases; 5) universal "classic" public-health mea­ We must fighta global War on AIDS and other pandemics. sures, including quarantine; 6) an all-out war on drugs; 7) a Societies which mobilize their resources to fightdis ease Biological Strategic Defense Initiative (BSDI) utilizing the and raise the general health of their populations will thrive. most modern laser and other optical-biophysics technologies We now have a golden opportunity to unleash our full sci­ for defense of the health of the world's populations; 8) up­ entific andmedical capability. This course-or the alterna­ grading ofthe nutritional intake of the world's populations to tive, a biological holocaustworse than the 14th-century Black enhance immune function; 9) worldwide mosquito, insect, Death-is the fundamental cultural and political question and vermin control; 10) emergency upgrading of sanitation, now before mankind.

EIR July 18, 1986 Feature 31 among those supporting the policies. It is also expected, Press Briefing unfortunately, that there will be a rather violent minority which denounces me for my p blic-health policy on AIDS. In light of these political 4evelopments, honest journal­ ists and editors will begin to bteak the black-out on the facts about AIDS. As the facts abottAIDS becomebetter known, the reason that AIDS has �ome a major political issue internationally will begin to blecome� better understood. For the sake of those who are int sted ' I summarize the basic presently known facts about A DS, and then describe the two A program to stop reasons AIDS has becomea Ie ding policy-issuefor the 1988 presidential campaign. the AIDS pandemic Facts about AIDS I i . by Lyndon H. LaRouche, Jr. My knowledge about AI is based on the work of a special scientific task-force, hich has been working for about a year, reviewing the f ts with leading medical spe­ Mr. LaRouche is a candidate fo r the Democratic Party's cialists around the. world. Re� nt developments confirmthe 1988 U.S. presidential nomination. The fo llowing discussion accuracy of what I published o. this issue last September and is excerpted from the second in a series of occasional press October, but there have been more recent discoveries which briefings by the candidate, dated July J. enable me to report the facts with better precision than was possible with the knowledge available to scientificspec ialists As of this past week, public-health policy in the matter of nine months ago. AIDS has become a leading issue of the 1988 presidential AIDS is the most diabolically clever kind of fatal infec­ campaign. The November 1986 Californiaballo t will carry a tion which is ever known to have attacked the human popu­ proposition requiring that AIDS be classifiedas a dangerous lation. To the best of our knowledge, AIDS is approximately communicable disease. One hundred and fifty thousand 100% fatal to those who contract the infection, and every homosexuals paraded, denouncing me , in Los Angeles dur­ person infected is an active carrier of the disease to unsus­ ing the middle of the week, and there were much smaller pecting contacts, even beforel the infected carrier presents demonstrations against me in San Francisco and New York AIDS or AIDS-related symptOms. One of the reasons AIDS City this past Sunday. Meanwhile, in Paris, the World Health is so diabolical, is that it is a $low-incubation infection; the Organization (WHO) began to admit publicly, for the first present estimate is, that, on � average, an infected person time, that AIDS is a major threat to life among the normal will carry the disease for abdut four years before coming members of the world's population. down with symptoms, and will die within about a year or so The population is beginning to be strongly polarized aftercoming down with the symptoms. This means that mil­ around the AIDS issue, and the personal attacks on me on lions of infected persons walk around, infecting others for this issue are now threatening to dominate the 1988 presiden­ about four years each, before showing symptoms of the in­ tial campaign, as well as influencingmarginally the Novem­ fection. ber 1985 elections. In addition to the attacks on me by homo­ The popularized assumptiOns about the possibility of sexual parades, there have been hysterical statements by pol­ communicating the infection, are dangerously false. Casual iticians and some newspapers. Meanwhile, it is estimated communication of the infection by an unsuspecting carrier to that about 4 million Americans will die of AIDS or AIDS­ an unsuspecting victim, is higl1ly likely. Under certain con­ related causes by 1990 , and at least a million such deaths ditions, the infection can be communicated as an air-borne during the coming 12 to 18 months; barring a thermonuclear disease. In black Africa, there are at least 30 million cases of war, AIDS will soon be the leading cause of death in the infections. Most of those infected are not classifiable as mem­ United States, unless effective measures are taken to stop the bers of what the U.S. Centers for Disease Control list as spread of this pandemic. A politician's stand on AIDS will "high-risk categories," such as! male homosexuals and drug­ soon be the leading domestic issue in an increasingly polar­ users. In the United States, among sections of the very poor ized environment. living in the insect-bite belts of the Caribbean and Atlantic It is safe to predict that a majority of the voters will soon coastal states, we have an exwosion of AIDS among local demand support for my policies on AIDS. Polls taken by populations who do not fitany Iof the CDC "high-risk" clas­ some news media in Californiaare already indicating such a sifications. Exactly what the probabilities are , we do not trend. A growing percentile of homosexuals will be included know presently, chiefly because our government has failed

32 Feature EIR July 18, 1986 i to conduct the necessary kinds of investigations, and has even born neglect. I attempted to preventsuch investigations; we do have conclu­ A "crash program" for medical research, is also a multi­ sive proof that casual transmission of the infection is the billion-dollar effort. It means revivin� those institutions which nonnal method by which the infection is carried to persons the United States closed down over!the 1969-72 period as a who areneither homosexuals nor drug-users. result of Henry A. Kissinger's negotiations with Moscow; it The best estimate available so far, is that the number of means matching the Soviets' work ,n their 10 major immu­ persons infected with AIDS in the U.S.A. is not less than 4 nological centers . It means cranking up medical and biolog­ million persons, and that the rate of infection is doubling ical training-programs, as well as fromoting research by a approximatelyevery six to eight months. wide range of kinds of laboratory . programs, all of which These estimates suggest, that Americans dying of AIDS have significant bearing on the stud� and conquest of this and or AIDS-related causes during 1986, are, on the average, related diseases. : those who contracted the infection during 1981 or 1982. This AIDS is the greatest danger the human race has ever also means that at least one-third of the 4 million presently faced, potentially a greater menac¢ to life on Earth than a infected will die during the coming two years, and nearly all full-scale thennonuclear war. However, we are faced with of them within four years. It means that, under present med­ early spread of new varieties of de*dly epidemics from Af­ ical and public-health conditions, the death-rates caused by rica, including the dreaded Lassa Ftver, according to scien­ AIDS will double, triple, or even quadruple every year, and tific reports delivered to a recent taris conference. Mean­ will soon become the leading cause of death among younger while, inside the United States, we/ already have major out­ American adults. breaksof new strains of tuberculosis, and of new varieties of Unless we do two things, as a matter of policy, the entire familiar diseases we thought we hltd brought under control U . S. population could be wiped out by about the end of this earlier during this century. It is tJte poor who suffer the century. First, we must isolate and treat all carriers of the greatest degree of threat from all of these infections, AIDS infection. Second, we must launch a "crash program" of included; but, once thesediseases gain a large foothold among research and treatment for AIDS infection and symptoms, the urban poor, they spread rapidly;to the population in gen­ whatever cost such a program entails. eral . The medical research and treatmentprograms must center We need a "crash program" ofinational defense against aroundtwo general objectives. First, we must aim to suppress infectious disease, and against dis4!ases of aging of tissue, the infection. This means attempting to prevent a person such as cancer and cardiovascular �iseases. Assuming that already infected from continuing to be a carrier of the infec­ we conquer AIDS during the comijng 5 to 10 years, as we tion. It also means attempting to suppress the growth of the could surely do with a "crash program," we still need these disease in the person already infected. Second, our "crash same institutions of research and cafe as our national defense program" must aim to develop both cure and innoculation for against all dangerous fonns of new and old diseases. the infection. There are already some promising lines of Today, there is a great hullabaloo around government, research in both directions, some more promising, some less over a few billions spent on natioIlJll defense, and a refusal so; the amount being spenton this disease is so pitifully small even to discuss the expenditure for AIDS so urgently ne.eded. that we must describe our government's present AIDS pro­ At thesame time, we are spending qnlya few tens of millions gram as a grim joke. on fightingan annual U.S. expenditpre for recreationaldrugs running into the hundreds of billions. Not only are our citi­ An issue of economic policy zens and children paying hundredsiof billions of dollars an­ At present, detection and isolation of persons infected nually for recreational drugs; this is �he major cause of street­ with AIDS is our first line of national defense. We have no crime and related fonns of crime, aqdcosts our society many, cure, and we have no assured method of treatment to suppress many billions of dollars through o�reffec ts. So far, despite the infection. Every person infected with AIDS is, however the dedicated efforts of a few publ� servants and other citi- , innocently, a menace to hundreds or thousands of unsuspect­ groups, our national war on �rugs is a bad joke, even ing other citizens. Humane isolation and treatment of persons by comparison with the Nixon adm/.nistration's program. So infected with AIDS means the kind of cost per person we far, thereare only token, slap-on-tt,-wristtreatments of ma­ associate with tuberculosis sanatoria; with not less than 4 jor financial interests involved in idrug-money laundering, million Americans already infected, this means many billions while influential groups , such as the Inter-American Dia­ of dollars, much less than the hundreds ofbillions Americans logue organization, propose to legalize the cocaine, mari­ are spending annually on their recreational-drug habits. juana, and heroin traffic into the pnited States. The argu­ In the present budget-balancing hysteria, our government ment, that we can not afford adeq�ate national defense, can does not wish to hear about spending such sums, no matter not afford a "crash program" agaiIl/'tAIDS , is naked hypoc­ how many millions of Americans die because of such stub- risy when seen in light of the expeqditure for drugs.

EIR July 18, 1986 Feature 33 Beyond this sort of hypocrisy around Gramm-Rudman­ City, on Sunday, presented its f as "Nazis in Leather." It is Hollings, the reason our government is refusing to face the rather well known that the fasc st dictator Benito Mussolini issues of both national defense and AIDS, is that our Liberal was a pederastic bi-sexual. A ,rominent authority has pub­ Establishment, together with a cartel of international finan­ lished a reportin Italy, describinjgMussolini as "even a bigger ciers, is still insisting that our government and Federal Re­ homosexual than Hitler." The meadership of the Nazi Stur­ serve continue those monetary and economic policies of the mabteilung (SA) was a homosJxual ring; much of the Nazi inner core was recruited froni among post-World War I homosexual circles such as thad of Stefan George. Although Hitler later launched a brutal, l although token persecution Those poor wretches who paraded against some German catamite�, this was done as a measure of compromise with forces whlch demanded that the Nazis inJro nt ojNew Yo rk s St. Patrick's suppress their own homosexuai practices as a condition for cathedral, announcing themselves Hitler's remaining dictator. i as "Nazis in Leather, " accurately Many of the neo-Nazi groqps of today are homosexual rings, just as the cited continge�t of New York homosexuals pinpointed themselves as a satanic described themselves as "Nazi$ in Leather." The high inci­ type, and revealed more nakedly dence of homosexuality amongj fascist groups is not an acci­ than some others in the dental phenomenon. Naturallyl those homosexuals tending toward sado-masochistic prefe¢nces are the most likely can­ demonstration, the essential didates for brutal concentration�camp guards; but, wherever character ojthe political movement homosexuality appears in the i form of a "political move­ d jo r homosexuality. ment," rather than an indivi ual inclination of scattered members of the population, suqh "political movements" ex­ press the essence of the fascist ,ersonality type. The trouble is, that the �verage American has been past 15 years which have bankrupted both our government "brainwashed" by Hollywood $1d other popular media, into and our national banking system. If the United States scrapped a dangerously false image of the Nazi type. The duped public these monetary and economic policies, in favor of the kinds imagines that the Nazis were so�e "super-rationalist" variety of economic-recovery measures we used so successfully be­ of "authoritarian personality," $ extreme of the image of the tween 1939 and 1943, our tax-revenue base would grow, our "Prussian officer" type. Directl� the opposite was true. The deficits would be brought under control, and we could afford violence-prone Green Party activist in West Germany today, both national defense and a "crash program" against AIDS. is an almost perfect copy of thel ranks of Hitler's Nazis. The In black Africa today, a visitor driving through the streets Nazis were fanatically "ecologlsts," of the "back to nature" watches persons collapsing and dying on the streets before types, like today's Green partyl The West German terrorist their eyes. This is a commonplace experience. We have not and "punker" of today, is a resUrrection of the kind of vio­ reached that point with the AIDS epidemic in the United lence-prone Nazi who brought clown the Weimar Republic. States; but we shall within a few years, unless we adopt a A former Swiss volunteer !pember of the Nazi SS, Dr. "crash program" against AIDS now. For our governmentto Armin Mohler, a student of Nn,zi-sympathizing Prof. Karl say that we can not afford such a "crash program" is the most Jaspers, has documented the inber mind of the Nazi type of monstrously insane sort of hypocrisy one might imagine. yesterday and today with some precision. The Nazi type is a product of the influence of sucli figures as Fyodor Dostoev­ AIDS and the 'counterculture' skii, Friedrich Nietzsche, and �leister Crowley upon post­ More than half the male homosexuals in the United States World War I Germany: Hitler was an Austrian "bohemian," are now estimated to be carrying the AIDS infection. All of and his followers were chiefl� members of the "Age of those infected today will be dead within two to four years, Aquarius" movement led by *ietzsche and Crowley, the unless the kind of program I have outlined is implemented. same "Aquarius" movement bellind today's "ecologists" and Yet, hundreds of thousands of these homosexuals, in Los "political homosexuals." I Angeles, San Francisco, New York City, and elsewhere, Nietzsche and Crowley propbsed to eradicate the heritage have denounced me as a "fascist" for proposing measures to of Socrates and Christ, to make1 the 20th century the birth of attempt to save them from otherwise certain, early death. the "Age of Aquarius." Both Nletzsche and Crowley identi­ One can only conclude that these homosexuals are suffering fiedthe "Age of Aquarius" with ithe worship of Dionysos and a very special kind of insanity . Lucifer. Both identifiedSocrate � and Christ with the "Age of One of the parading groups attacking me in New York Pisces"; hence, their doctrine �as to destroy the "Age of

34 Feature EIR July 18, 1986 Pisces," in order to make way for the "Age of Aquarius." policy must be consistent with bot� morality and reason is Twentieth-century fascism and bolshevism were twin the kind of "authoritarian" who musjtbe driven out of Amer­ outgrowths of this "Age of Aquarius" project, both steered ican political life, and perhaps judi¢ially murdered, as Soc­ from such centers of influence as Venice and the Tiberius rates was. cult on the island of Capri. The sponsors of both, who over­ I have no evidence that MoyniHan is a homosexual or a lapped, as the case of Venice's Count Volpi di Misurata cocaine-sniffer; however, he is a m¢mber of the "Aquarian" illustrates the connection, created two gangs, the fascists and counterculture in a more general -Way. Moynihan's "neo­ the bolshevists, with the idea that one of the two competing Malthusianism" is key to the Congr�ss's "benign neglect" of gangs would prove to be the successful one, and that the two both the wretchedly poor of the wdrld, and of the plight of would ultimately be merged into one, under either German present and future AIDS victims. or Russian sponsorship. Various theosophical cults, such as The core of the neo-fascist courterculture of today is the Crowley's theosophists and the Golden Dawn cult which so-called "neo-Malthusian" moverrlent centered around the Aldous Huxley introduced to California, were also organized Club of Rome, and the Club of R�me 's interface with the forms of the "Age of Aquarius" projects. Soviet KGB, the Laxenberg, Austr¥-based InternationalIn­ When the fascist or bolshevist ideologue speaks of "The stitute for Applied Systems Analy�is. This movement was Revolution," what he means is not simply a particular kind formally launched in 1963, by So�iet-friendly British offi­ of political revolution. He means a "permanent revolution": cials working inside the OECD organization. It was first a continuing, violence-ridden upheaval, to the purpose of launched in the form of the OECD' � proposals for reforms in destroying the last relic of the Augustinian Judeo-Christian public education, the source of the !policies of to day's U.S. heritage, and destroying the heritage of Socratic reason. He National Education Association. the Club of Rome was means a pandemic of countercultural upheavals, to crush and launched by OECD official, Dr. Alexander King, and Lord eradicate everything produced by WesternJudeo-C hristian Solly Zuckerman, during the secon4 half of the 1960s. Zuck­ civilization. erman and King worked closely �ith Soviet KGB official Such a fascist or bolshevist ideologue is a pure type, of Dzermen Gvishiani, to establish tlhe International Institute satanic evil incarnate. His pleasure, his pleasure-seeking mo­ for Applied Systems Analysis as the t:lubof Rome's interface tive, is to commit any act which he views as rejecting and with Soviet KGB headquarters in Moscow. Zuckerman is a destroying Western Judeo-Christian culture. This is the sa­ member of the circle of Henry A. Kiissinger's special friends tanic essence of Hitler and Hitler's Nazism, and the satanic in London, the inner group of ass�ciates of former British quality of Mussolini' s fascism as well: pleasure in doing evil Prime Minister Harold Wilson, whb resigned under a cloud simply because one's conscience believes that it is evil, like of suspicion as a suspected Soviet "sset. Zuckerman himself Iago in Shakespeare's Othello. is well known as a Soviet asset in his own right. The establishment of a homosexual political movement, The transformation of the 1960s "New Left" into the is of this satanic type. This is not the individual homosexual "ecologist 'Rainbow Coalition,'" b!eginning 1969-70, was a who says, "Despite my peculiarity, treat me as a human project steered by the same U. S. Establishment circles which person." This is homosexuality pursued out of hatred against had adopted the neo-Malthusianis$ of the Club of Rome. Judeo-Christian morality; this is purely satanism. Those poor The creation of the lesbian and male-homosexual cults of wretches who paraded in front of New York's St. Patrick's today, was begun during the 1969-10 period, by such groups cathedral, announcing themselves as "Nazis in Leather," ac­ as the Trotskyist Socialist WorkerstParty, as part of the pro­ curately pinpointed themselves as a satanic type, and re­ cess of transforming the 1960s anti-Iwar organizations into an vealed more nakedly than some others in the demonstration, Aquarian "Rainbow Coalition." The launching of the first the essential character of the political movement for homo­ U. S. terrorist organization, the Weatherman narco-terrorist sexuality. cult, was an integral partof this same project. When these Nazi-like satanists of the political homosex­ In several interviews, Club of Rome founder King has ual movement accuse me of being "Nazi-like," they are ech­ insisted that the purposeof the Club of Rome was pure Anglo­ oing the Sen. Daniel P. Moynihan who insisted, at a New Saxon racialism: Bertrand RusseU's program for reducing York University gathering, that I must be exposed as a fol­ drastically the population of Gree*, Italians, and Iberians, lower of Socrates. Moynihan's argument echoed the thesis as well as the darker-skinned raceS of Africa and Asia. No­ of the leftist I. F. Stone, who endorsed the judicial murder tably, this policy was first introduced to the U. S. government of Socrates; his argument echoed the thesis of the London in a pilot-project form , during the rnid- 1960s, and was pro­ Tavistock Institute, which insists that Socratic reason is the moted by Zbigniew Brzezinski unqer the rubricof "Techne­ essence of what Tavistock and Moynihan describe as "the tronic Society," during the secon� half of the 1960s. The authoritarian personality." Moynihan and the "Aquarian" center of this support for the ClUb of Rome, and for the ideologues generally, insist that whoever insists that public promotion of the Aquarian counterculture more generally,

EIR July 18, 1986 Feature 35 was the same group of Establishment families, associated with the New York Museum of Natural History, which had backed Adolf Hitler during the early 1930s. This includes the Harriman family, which is the principal backer of both Brze­ zinski and Moynihan. U.S. tradition, until the late 1960s and early 1970s, was the promotion of technological progress in an energy-inten­ sive, capital-intensive mode. On the basis of the ability to Political warI over increase our productivity, through such technological prog­ ress, the majority of Americans insisted we could meet the AIDS referendum material costs of defending the sacredness of individual life, and of providing political and economic equalities ofoppor­ A California ballot initiative t<)have AIDS declared a com­ tunity for our citizens' households. The "ecologist" move­ municable disease, subject to e�dsting public health laws, has ment, and other elements of the "Rainbow Coalition" of polarized the political life of th¢ state. Aquarian radicalism, was used to destroy the means for meet­ The initiative, sponsored by the Prevent AIDS Now Ini­ ing such material demands, and to undermine the principle tiative Committee (PANIC), was certified on June 20 for of the sacredness of human life as the principle of law set placement on the ballot in the M'ov. 3 election, after support­ forth in our Declaration of Independence and atthe outset of ers of presidential candidate iLyndon LaRouche gathered our federal Constitution. nearly 700,000 voter signature� to do so. The characteristic shiftin public morality during the past The AIDS referendum has ibeen endorsed by a growing 20 years, has been toward revoking the principle of the sa­ number of national medical experts, and one congressman. credness of life, step by step. The "abortion movement" was Gus Sermos, the Centers for Disease Control health officer used as the wedge-end of a campaign which has introduced who set up the AIDS surveillan¢e program in Florida, on July to the U.S. today the Nazi crime against humanity, euthana­ 7 announced his support for �he initiative. A Mississippi sia, in the name of the "right to die" movement, and, now, resident, Sermos charged that tlteAtlanta-based CDC'scov­ the introduction of active measures of homicide in hospital er-up of the AIDS crisis cons�itutes "malfeasance," and a and other practice, as a cost-saving measure. violation of the CDC's own ptocedures for dealing with a This countercultural mentality comes to the fore in the deadly communicable disease. : refusal of our governmentand the leadership of our political An eight-year veteran of the CDC, Sermos set up the parties to confront the realities of the AIDS pandemic. "Let AIDS surveillance program fOIlthe state of Florida in 1983. them die,'; says our government, say the liberal leaders of In November 1985, he was ab�tly ordered back toan empty both m'lijer parties: "Our budget will not let us defend our office at CDC headquarters in r\tlanta, as a result of a deal nation against Soviet imperialism, or defend our citizens between the CDC and Florida health officials, who were against the most diabolically deadly pandemic the world has upset by Sermos' s exposure of their misuse of federal monies known." granted for AIDS surveillance. Now Florida-with the third­ Who are today's Nazis? They are the homosexual politi­ highest number of AIDS cases in the United States-has no cal movement and Senator Moynihan, among others of the active surveillance program fori seeking out new cases. counterculture's Rainbow Coalition. Although an investigation by the inspector general of the Whether homosexuals are Nazis or not, we shall not treat Department of Health and Human Services has documented them as the Nazis would have done. Their lives are sacred, a number of Sermos's charges I Sermos was fired from the too, and we must respond to their plight so, for the sake of federal service. the principle of life. CaliforniaRep . William Dannemeyer (R-Fullerton)be­ The crazed political elements among homosexuals may came the firstcongr essman to supportthe PANIC Initiative, refuse to accept the public-health measures needed to defend in a July 2 press conference. NQting that the initiative would the United States from a pandemic more deadly than ther­ not change a single already-exi�ting law in the state, Danne­ monuclear war, but those among our citizens who are still meyer said he is also proposing !federal legislation to make it sane will not allow us to be blackmailed by the countercul­ a crime for infected individualS to kiss, copulate, or donate ture's threats of violence. The AIDS issue has surfaced as the blood. "We cannot just sit hereiand watch the growth of this leading domestic issue of the 1988 presidential campaign, epidemic without taking rationalacts to stop the transmission and will become the most discussed issue as the death-rates of this disease," he said. from AIDS-related causes soar. How a prospective President Medical doctors who have CJ)fficiallyendorsed the initia­ stands on the AIDS question implicitly reveals his or her tive include: Donald E. GibsoJli,Connecticut; H. S. Hewes, morality on every issue; so, increasingly, the majority of our Texas; G. W. Kimball, Arkan$as; Carlos Mattioti, Texas; citizens will come to view the candidates. Luz Velandia Popescu, D.D.S!., Texas; James M. Sandel,

36 Feature EIR July 18, 1986 Texas; George W. Sibley, Texas; Edward Sivick, Pennsyl­ publican-joined the demonstratio including Supervisor vania. Quentin Kopp (D), who marched n ar the front carrying a "Stop LaRouche" sign; ultraliberal emocratic Assembly­ Gays and liberals man Willie Brown; and Republica� officials passing out The opponents of the AIDS initiative are moving swiftly handbills from such organizations a. "Concerned Republi­ to try to block support for it, and have vowed to raise a $6 cans for Individual Rights." million war chest for propaganda and dirty tricks efforts. On Other California politicians who bave attacked the PAN- June 22, close to 200,000 activists demonstrated on "Gay IC initiative include: Pride Day" in Los Angeles, carrying signs that read, "No to • Senator Alan Cranston (D); I LaRouche." The campaign to stop the AIDS initiative was • The liberal Republican conten�er for Cranston's Sen­ also a prominent feature of the San Francisco Lesbian/Gay ate seat, Rep. Ed Zschau , who calle4 the initiative "danger­ Freedom Day Parade on June 29, as an estimated 18,000 ous and irresponsible"; participantsmarched through the streets , led by a contingent • Los Angeles Mayor Tom BradlFY (D), who sent a letter of 200 "Dykes on Bikes." The San Francisco Chronicle to Gov. George Deukmejian (R) urging him to oppose the described it as "II solid blocks of humanity swathed in leath­ ballot measure; er, chaps, lace, gold lame or nothing." • Los Angeles City Councilmen poel Wachs and Gilbert Several San Francisco politicians-Democratic and Re- Lindsey. !

munities, and the public health at large; and C. Utilize the existing structure pf the State Depart­ ment of Health Services and local h�alth officers and the 'Prevent AIDSnow : the -statutes and regulations under which they serve to preserve California initiative the public health from acquired imnlune deficiency syn- drome (AIDS). I The fo llowing referendum to place AIDS on California's Section 2 list of "communicable diseases and conditions," will ap­ Acquired immune deficiency syndrome (AIDS) is an pear on the state ballot in the November election. The infectious, contagious and communi¢able disease and the initiative, certified on June 20, was signed by nearly condition of being a carrier of the ijTL V-III virus is an 690,000 voters .It would require the Department of Health infectious, contagious and communicable condition and Services to use standard public health measures to treat both shalI be placed and maintained the director of the AIDS, the same way it treats other deadly contagious h Department of Health Services on fte list of reportable diseases. This means that all cases must be reported; no diseases and conditions mandated by Health and Safety carrier of the virus may be a teacher, employee, or student Code Section 3123, and both shalI b� included within the in a public or private school; no carrier may be employed provisions of Division 4 of such c�e and the rules and as a commercial fo od handler; it is a crime to knowingly regulations set forth in Administrati Code Title 17, Part spread the disease; and the _ state is obliged to test and � 1, Chapter 4, Subchapter 1, and alI personnel of the De­ quarantine as much as required to stop the spread of the partment of Health Services and alII health officers shalI disease. fulfilI alI of the duties and obligatiQns specified in each and alI of the sections of said statu.pry division and ad­ Section 1 ministrative code subchapter in a rnllnner consistent with The purpose of this Act is to: the intent of this Act, as shall all otHer persons identified A. Enforce and confirmthe declaration of the Califor­ ' in said provisions. nia Legislature set forth in Health and Safety Code Section 195 that acquired immune deficiencysyndrome (AIDS) is Section 3 serious and life threatening to men and women from all In the event that any section, subsection or portion segments of society, that AIDS is usually lethal and that therefore of this Act is deemed uncOlilstitutional by a prop­ it is caused by an infectious agent with a high concentra­ er courtof law, then that section, subsection and portions tion of cases in California. thereof shall be stricken from the �ct and alI other sec­ B. Protect victims of acquired immune deficiencysyn­ tions, subsections and portions th�reof shall remain in drome (AIDS), members of their families and local com- force, alterable 'only by the people, .ccording to process.

EIR July 18, 1986 Feature 37 Conference Report

'Experts' perpetuate WHO's cover-up of the AIDS epidenrlcI by Wolfgang Lillge. M.D.

The Second International Conference on AIDS which took Probably even more alamling are figures from East Af­ place in Paris June 23-25 could be viewed as an "interesting" rican countries like Ruanda � Uganda, and the West Afri­ science meeting, if the stakes for mankind, given the world­ can nation of Senegal, where !the rate of symptom-free car­ wide AIDS epidemic, were not so high. But "interesting" riers of the AIDS virus stand� at 18-23% of the population. science conferences are not enough to defeat one of the most In the bigger cities, the carritt ratio is 10%. In the Zairean dangerous pandemics that has ever faced the human race. capital, Kinshasa, 180,000of � million people are infected. At the outset, this conference, bringing more than 2,500 The sudden recognition of teality on the part of the WHO, medical doctors and scientists from all parts of the world to however, is restricted to the ntportage of more accurate sta­ the Paris Conference Center, seemed destined to finally break tistics. When it comes to thi more decisive questions of the cover-up of the real dimensions of AIDS by agencies like epidemiology and preventionj of AIDS, Kapita quickly re­ the World Health Organization (WHO) and the Atlanta Cen­ turnedto the same old WHO l�e, that AIDS is exclusively a ters for Disease Control (CDC). Alas, that proved not to be sexually transmitted disease. �apita refused to talk about the the conference organizers' purpose at all, and they did not obvious economic and environmental factors , poverty, allow it to happen. breakdownof the health infrastructure, and immune suppres­ Bila Kapita, the head of the Infectious Disease Center at sion by multiple infection witttother tropical diseases as co­ the Kinshasa General Hospital in Zaire, and also a WHO factors in AIDS. Incredibly, tie had only one recommenda­ representative, reported that 6% of the African population tion for the African populatio�: "Learn to change your life­ has been infected by the AIDS virus, HTL V-III/LAV, and style"-as if Africanvictims 6:equent gay bathhouses! there is a spread of the infection of 1 % each year. i These figures come from a previously secret study of AIDS and tuberculosis I Africa conducted by the World Health Organization. The At this huge conference, oh only one occasion known to study was worked out in cooperation with the U.S. govern­ this author was there any officially sanctioned talk about ment, Zaire an authorities, and the Antwerp Institute for environmental factors . This w.s a small afternoonsession on Tropical Medicine. The French press, in particular, ran head­ AIDS in Africa, where Dr. Nzilarnbi of the Zaire Health lines on the results of the WHO study, which states that 2 Department, who collaboratesl with Dr. Kapita's group, pre­ million Africans are infected, and 50,000 have come down sented a revealing picture of AlDS in Zaire, which is in sharp with the full symptoms of AIDS . contrast to the WHO line on 'I AIDS, the purely sexual dis­ This rare piece of truthfulness in reporting on the AIDS ease." He reported on a study of patients in a tuberculosis catastrophe on the African continent fully confirmsthe con­ sanitorium in Kinshasa and debtonstrated that, in Africa, the clusions of EIR's Biological Holocaust Task Force on the first manifestation of AIDS �ay very well be tuberculosis. true dimensions of the AIDS pandemic. Kapita reported: The AIDS infection was discqvered in 247 tuberculosis pa­ "AIDS is striking more and more people every year, and the tients examined by Dr. Nzilan1bi. number of infections, illnesses, and deaths are multiplying EIR 's task force insisted od the tuberculosis link to AIDS at a disturbing rate. For Africa in general and Zaire in partic­ as early as 1984, when it b�came known that a massive ular, we can say there is a hidden epidemic under way." increase in tuberculosis casesi in New York City was very These statements represent a sudden change, at least in probably triggered by the im�ne-suppressive effects of the reporting of statistics: The Soviet-dominated WHO has offi­ AIDS virus. People have diee; from a sudden flare-up of a cially listed only 378 AIDS cases on the entire African con­ drug-resistant strain of tuberchlosis, and only post mortem tinent. was it found that they were infected by the HTLV-III virus.

38 Feature EIR July 18, 1986 Typical of WHO/CDC methods of cover-up, these are listed Haseltine, and Luc Montagnier did no contribute to bringing as TB deaths. All the AIDS-related cases from New York about a change of orientation. In the r view, research must City, Africa, or elsewhere are not counted in any official be exclusively focused on the laboratotyaspects of molecular statistics for AIDS cases or deaths. They do not fitthe WHO biology. They imagine their work wilJ be completed as soon or CDC "definition." as an effective drug or vaccine for AIQS has been developed. In the subsequent question-and-answer period in the Af­ What about the economic condition� that produced AIDS, rica session, the significance of malnutrition for weakening and are already producing other, new!, perhaps more deadly the immune system and activating the AIDS virus was men­ hemorrhagic fe vers? How many more: vaccines will be need- tioned. But this did not compensate for the otherwise com­ ed? 1 plete WHO/CDC control over the conference proceedings. Ironically, the Paris conference destroyed any illusions about early prospects for an anti-AIDS drug. All reports on Work on the possibility of insect transmission of AIDS I in the tropics, which Dr. Mark Whiteside from Florida want­ clinical trials with different substancc!s produced rather dis- ed to present to the conference, was banned outright in the appointing results. A vaccine against AIDS, according to Dr. preparatory phase of the conference. Studies which do not Gallo, is still a possibility, but nobody believes in an early quite fit the WHO guidelines were, if anything, referred to success. . the "poster sessions," where, in a tiny space, an "abstract" of Dr. Herve Fleury, a virologist frortiBordea ux, who spoke potentially significant work could be presented. at a Fusion Energy Foundation conference in honor of the great Louis Pasteur in Paris two wee�s earlier, stated at the No cure in sight end of this conference: "This conferen�e was a hoax. Beyond In contrast to this, the special sessions on virology, epi­ that, I come away with the conviction;that we have no treat­ demiology, and psychiatry of the AIDS disease were packed ment in sight, and I would even say no hopes of one if we with presentations about the latest little details of molecular continue on the present path." biology, gene sequencing, immune reactions, etc. Overall, Another scientist who has specialized in documentation one's chief impression was the astounding lack of any real of the relationship between environ$ental factors and the science at this Second International Conference on AIDS. spread of AIDS in the tropics, had eklier expressed doubt Even Dr. James Curran of the CDC was forced to admit that WHO and CDC could successfull� exercise control over that there has been no major breakthrough in AIDS-related AIDS research. "The best thing," he Said, "is to forget this research in the last year. He estimates that by 1991 there will conference as fast as possible ....Pebple are satisfiedwhen be 74,000AIDS cases per year in the United States, and an they have run their gene sequences in the laboratory and don't additional 29,000 cases must be assumed, due to "underre­ care about what is going on in Africa Or the Caribbean." porting." The overall health care costs per year for AIDS victims in the United States alone would, by then, amount to $8 billion! While this is only a linear projection of the heavily un­ derreportedfigures of today, Curran admitted that he had no idea what the incidence rate for AIDS would be in the future. EIR In one graph, he presented three options for the way in which AIDS' incidence might develop: The worst case is a contin­ SpecialB.el'ort uous acceleration of the number of cases; he ruled this out as unrealistic, because the CDC based its statistics on an alleged decrease in the doubling rate of AIDS. Second, a virtual stop of the AIDS incidence rate. While such might be accom­ An Emerg�ncy plished in the case of transmission by blood transfusions, more broadly, this, too, he called unrealistic, and not to be War Plan to : Fight expected generally. So, third, the CDC assumes a linear extrapolation of the current incidence! There was not much comfort, somehow, in Curran's promise that CDC would be vigilant in watching for possible changes in the rate of AIDS' spread-especially afterCurran AIDSi stated that, given the lack of an effective drug or vaccine, the $250.00. Order from: EIR News �rvice, P.O. Box single most effective factor in influencing the incidence rate 17390, Washington, D.C. 20041 -0390. Order would be "a change in the behavior of gay men." This, in a #85020 situation in which AIDS is about to wipe out the whole Africancontinent . The "stars" of AIDS research like Robert Gallo, William

EIR July 18, 1986 Feature 39 transmitted viruses, for exa pIe, Dengue. The AIDS belt seems to be also the insect betlt in many areas of the world, such as the belt for Kaposi'� sarcoma and Burkitt's lym­ AIDS in the tropics: phoma. The epicenter of the ! endemic Kaposi's sarcoma is the area between Zaire and tfganda, and of course modem How does it spread? day AIDS is increasing rapidl\Yin men and women-almost equally in men and women in �entral Africa-andspreading by Dr. Mark Whiteside somewhat to East and West Africa .... We think that AIDS has . broad base in the Caribbean, and is increasing in many of �e major islands of the Carib­ Dr. Whiteside is co-director of the Institute of Tropical Med­ bean, from Cuba on over to: Puerto Rico. We have never icine in Miami, Florida, where he carries out clinical work thought it was limited to Haiti � but Haiti is the poorestcountry and research on tropical diseases, including AIDS. He also there. AIDS is spreading in �ba, the Dominican Republic, heads the tropical clinic in Belle Glade, which has the highest Jamaica, Puerto Rico, etc., iQcluding heterosexual AIDS as per capita incidence of AIDS in the United States. We publish well as high-risk AIDS (hom�sexual men, intravenous drug here portions of a speech which he delivered on June 7, users, etc.). In the United Slfttes, about 17% of the AIDS before a conference in Paris on "The Importance of the patients are Hispanic individuals, which often means Carib­ Method of Louis Pasteur fo r Conquering AIDS and Other bean .... Pandemics." The conference was sponsored by the Fusion AIDS does not show only pne abnormality in the lab, but Energy Foundation. many, like low white blood ce' count, low lymphocyte count, depression in the ratip of hel�r lymphocytes to suppressor . . . Increasingly in the state of Florida, in a sub-tropical lymphocytes, sometimes ane�ia and low platelets, causing area, we are seeing men and women, heterosexuals, who the production of antibodies tp several different viruses, in­ may not have the usual risk factors that we are inclined to cluding the implicated cause or AIDS, HTLV -III/LAV virus. think about in developed countries, including the United But we don't think that LA� is the only cause of AIDS. States and Europe. These people often have antibf>dies to several different virus We are very interested in environmental factors in rela­ agents. We noticed that symptoms of AIDS resembled the tion to the disease in the tropics. This includes insect-trans­ symptoms of many viruses, i\ncluding insect- or mosquito­ mitted diseases, which we will talk about; other blood mech­ borne viruses, which we c�l arboviruses, and especially anisms in the tropics, for example, sores rubbing against parallel were severeforms of .-ooviraldisease , the prototype sores in crowded living conditions. AIDS is presumably of modem Dengue hemorrha�ic fever .... caught by virus, or viruses that go into the blood stream. We think that some of these environmental factors are being Environmental factors:! the case of Florida unfortunately neglected today. We think it is critical to study Our clinic is in Miami, but lYehave worked in Belle Glade them, for they have great significance for prevention and for several years, and I runthe !tropical disease clinic in Belle control of this disease. Glade, working with the cou�ty health department of Palm AIDS is becoming a worldwide disease, with a rapid Beach County. We have had 14 screening program for AIDS increase in Africa, the Caribbean, South America, as well as among sexually active homo�xual men in Key West for a concentration in risk-groups in other areas, such as the United number of years. Belle Glade �as about 20,000 people, Key States and Europe. . . . Many areas show a relentless in­ West about 25,OOO-small to\fns with a high prevalence and crease, and especially in south Florida, we think we are incidence of AIDS. There aI"eI over 1 ,200 AIDS patients in seeing a very different pattern of the disease, with more cases the state of Florida, with over �ooin Miami. There are neigh­ outside the established and so-called risk groups. . . . borhoodsin Little Haiti in Mi�i with multiple cases of AIDS The coming debate is over how much disease we will see among Haitians, and AIDS qases among other groups are transferred between men and women. Heterosexual trans­ beginning to show up. The aaitians are clustered within a mission today has been very rare in the United States. It was certain section of Miami. We qoticed that in the places where at least rare in the case of male to female transmission. . . . our Haitian patients lived, "*re were many public health We don't know if AIDS can be transmitted from woman to problems. We had seen more �isease in the environmentally man, although that is the subject of intense investigation. We poorestareas , which is what g�t us interested in looking into think it needs to be studied, but we don't think it explains the environmental factors, even �fore going up to Belle Glade. equal sex ratio in the tropics, for example in Central Africa. We gathered mosquitoes from an abandoned swimming That's part of the reason we are interested in environmental pool in Little Haiti, in an are!! of high incidence of AIDS. factors. This old swimming pool was breeding not hundreds or thou­ In many parts of the world, AIDS is parallel to insect- sands, but millions of the CuleJtmosquito , which is the South-

40 Feature EIR July 18, 1986 em house mosquito and an efficient vector of encephalitis. walking through the slums of Belle IGlade. Much of Belle The well in front of the house was breeding Aedes aegypti, Glade is a nice middle-class town, i with no disease. The which is the urban vector of Dengue and, in the past, of central depressedneighborhoods are mostly non-white, mostly yellow fever. It took us almost two years to clean up this native-bornblack Americans, but wi1h a Caribbean influxof swimming pool . Culex likes dirty water, while Aedes egypti Haitians and other groups. Ten thousand Caribbean workers, breeds in clean water. Jamaican workers mainly in sugar cane, experience over­ Little Haiti has also one of the highest populations of rats crowding and tremendous public health problems. When we in the city. We still have blood saved from rats that we are do our environmental survey, we will go down the list, and looking at as a reservoir for some of these viral kinds of often over 90% of the items on that list are going to be infection . Rats have played an important part in epidemics positive: active and potential insect-breeding, high rat pop­ throughout history . ulations, otheranima ls, animal sewage, raw sewage, etc. . . . In Key West, there are 50 cases of AIDS , 50 cases of multiple sclerosis, which is a neurologic disease. The homo­ What really causes AIDS? sexual men for whom we had screening and an educational With crowded living conditions, many blood-sucking in­ program came from the old part of Key West. sects, and high levels of viremia, OJ1e can get mechanical Belle Glade is isolated, rural, agricultural , with sugar transmission of retroviruses. We think that includes HTL V - cane and vegetables. It's about 75 miles northwest of Miami. III/LAV , although that has not been proven in humans. It is It has the highest rate of AIDS in the United States, 2.5 per known that animal retroviruses, how�er-like equine infec­ thousand, with a steady increase. It has been documented tions leucemia, bovine leucemia-can be transmitted me­ that in the poorer areas of Belle Glade, 10% of people are chanically by blood-sucking insects. In fact, that's one of the sero-positive, as to antibodies HTLV -III/LAV . Some 1 in 10 main ways they are transmitted, again. in conditions of crowd­ so far is infected in. that neighborhood, and already 1 in 200 ing where there are many, many insects. ' has AIDS . I know this is very controversial, because most people Over half of our AIDS cases in Belle Glade are in men consider the retrovirus HTL V-III/LAV to be the cause of and women who do not fit into the usual risk groups. That AIDS . It should be pointed out that it has not been proven to includes 30% born in the Caribbean, and 20% born in the be the cause of AIDS. . . . Even if bne thought AIDS was Southeast of the United States, men and women, heterosex­ caused by only one agent, we know that animal retroviruses ual, and belonging to what we call non-identified risk (NIR) are transmitted mechanically, so instct transmission should groups. The final striking thing, is that all our cases have be studied anyway. long-term residence in one of two central depressed neigh­ In south Florida, we have high levels of urban-breeding borhoods, the same neighborhoods which have been de­ mosquitoes that like containers. We have not identified a scribed as world-class slums for some time . mosquito vector or carrier yet, although this summer we are There are 50 confirmed cases of AIDS in Belle Glade, going to begin collecting mosquitoes! and look for retrovirus but we know that AIDS is under-reported by a factor of at as well as arbovirus in our target areas, and this would include least three to one, because of lack of diagnostic facilities, and Belle Glade .... there have been very few autopsies in the past. In this rural Again, the coming debate is over how much heterosexual area, we know that there are , therefore , many more cases of transmission there is of AIDS. In the United States, we would AIDS than those which got reported-and this will be true argue that it has been very limited. .'. . There have been no for many other areas. But at least, in Belle Glade, we are female cases in the areas of high incidence, including Key keeping track: We have lists of our AIDS patients, our ARC West, and only one female heterosexual contact case in the [AIDS-related complex] high-risk patients, our HTLV-III/ entire city of San Francisco. Our main objection, is that we LAV sero-positive patients identifiedby the Institute ofTrop­ don't think there are good control st�dies of the data to date . ical Medicine or by the Centers for Disease Control . We have Most of the studies, even the Centers for Disease Control 50 confirmedcases , 100 suspect cases-many of whom have study in Belle Glade, are very bia�ed to look at sexually died before diagnosis-200 ARC, and at least 500 HTLV­ transmitted disease, to the virtual exclusion of environmental III-positive individuals, in this one small town. As of one factors .... year ago, all these patients had long-time residence in one of In south Horida, we live in a swatnp. We must not forget two small neighborhoods. the delicate ecological relationships, and for heaven's sake, We are seeing an overlay with cases of tuberculosis, we cannot forget the environment a$ part of the epidemiol­ which are increasing in the same areas. Tuberculosis has long ogical triad. We must emphasize, that we do not think AIDS been recognized as an environmental disease, but I don't would eVer go from an isolated insect bite, but we think it know anyone who considers it to be a sexually transmitted takes a tremendous exposure over titne. The environmental disease. Who knows, maybe it will be reclassified? factors must be looked at in respect to AIDS transmission in It is very difficult to convey theimpression one gets when the tropics.

ElK July 18, 1986 Feature 41 John Paul II in Colombia: dru gs worse than slavery by Val erie Rush

During his July 1-7 visit to Colombia, Pope John Paul II not the object, of economics Ilndof politics." issued a call to the leadership circles of Ibero-America to join Speakingon July 7 in the coastal resort city of Cartagena, • I forces against the modem forms of enslavement: drugs and whlch was once the port where black slaves were brought usury. His intervention was timely, as international banking into Colombia, John Paul II :extended his theme on the im­ elites are racing to prop up their disintegrating financial in­ morality of the "free market" ideology: stitutions with the profitsof Ibero-American drug traffickers, "Slavery has been abolisihed throughout the world. But before the "debt bomb" explodes in their faces. . . . new and more subtle forms of slavery have emerged. . . . From the first to the last day of his trip, the Pontiff's Today, as in the 17th century . . . the lust for money has speeches were appeals for the resurgence of universal stan­ seized the hearts of many pe�sons, turning them through the dards of morality in society and, most pointedly, in the eco­ drug trade into traffickers in tllefre edom of their brothers and nomic and political life of nations. In his first speech to 700 enslaving them with an enslavement more fearsome, at times, political, business, and government leaders in the presiden­ than that of black slavery. lI'he slave dealers denied their tial palace of Bogota on July 1, the Pope reminded his audi­ victims the exercise of freeqlom. The drug traffickers lead ence of Paul VI's warningduring his 1968 visit to Colombia their victims to the very desttfuction of their personalities. that courageous intervention and sacrifice at moments of "As free men whom C�t has called to live in freedom, crisis in history could have averted"explosive revolutions of we must fight decisively agJlinst this new form of slavery desperation." John Paul II identifiedthe problem of the con­ which subjugates so many in;so many parts of the world, but tinent's foreign debt as precisely such a moment of crisis: especially the youth, and which it is necessary to halt at all "The poor people cannot pay intolerable social costs by cost. ..." sacrificing the right of development, a right which grows increasingly illusory while other countries enjoy opulence. Uplifting national mor�le Dialogue among populations is indispensable if equitable The Pope's intervention in Colombia, according to eye­ agreements are to be reached in which not everything is witnesses, dramatically uplifted the morale of the Colombi­ subject to harshly tributary economic laws, lacking in soul ans at a crucial moment in the country's political life. Mil­ and moral criteria. Here one encounters the urgency of inter­ lions of Colombian Catholics were moved to tears as John national solidarity, especially in regard to the problem of the Paul II urged each of them tp take Jesus Christ "as the pro­ foreign debt, which exhausts Latin American and other coun­ totypeof our own dignity. . . . Each time that you cross paths tries of the world ....An order of priorities can be estab­ with a poor or needy fellow citizen, if you truly see with the lished which takes into account that man is the subject, and eyes of faith, you will see in him the image of God, you will

42 International EIR July 18, 1986 I . ., II see Christ, you will see a temple of the Holy Spirit, and you Perhaps the unhappiest of all overpohn Paul II's visit are will realize that how you have treated him is how you have the narco-terrorists, who were the tar�ets of the Pope's most treatedChrist himself." vehement · condemnation. "There is ho lack of those who The trip was timed with a government change from the proclaim as the ultimate desperate sQIution, the armed vio­ strongly anti-drugBelisa rio Betancur to a Liberal Party pres­ lence of the guerrilla, to whom have f!1llen a number of your idency under Virgilio Barco. John Paul II's focus on the companions, sometimes against their will, others disoriented issues of drugs and corruption, and his repeated appeals to by ideologies which are inspired by thepr inciple of violence the national leadership to assume responsibility for the future as the only remedy for society's ills.' In many cases, it has of the citizens, were clearly a challenge to Barco to rid him­ reached the absurd point of brother fighting brother, youth self of a coterie of advisers who are notorious for pushing the against youth, swept away by blind vjolence which respects drug economy. neither the law of God nor the elementluypr inciple of human There is little doubt that the Pope's crusade for morality co-existence. " in government hit its mark. During his above-cited address Overwhelmed by. the outpouring

Ayala (1982-86), lamented that John Paul II "made more in favor of the ruling classes. " I politicalpronou ncements than clerical ones" during his sev­ The protests of the narco-terrori�ts and their political en-day stay in Colombia. Such a comment is not accidentally backers are one important reflection: of the success of the similar to the repeated insistence of Turbay's predecessor, papal visit to Colombia. President Betancur, summing up ex-President Alfonso LOpez Michelsen, that morality and that success, declared . in his July 7 tprewell address to the politics do not mix. Both Lopez and Turbay oversaw during Pope: "After your visit, violence, guerrilla warfare, terror­ their executive terms in officethe surrender of the Colombian ism, and the drug trade have even les, reason to exist. What nation to the drug mafiaand its political and financial protec­ remains clear ...is the urgency ofLa�in American solidarity tors. to mutually contribute to our develqpment and to change Answering the outrage of these "purists" at the Pope's unjust relations with the afftuentcountr ies, such as the exter­ politicking was Peruvian President Alan Garcia, who de­ nal debt, which has become the etern�ldebt ...." clared July to at the inauguration of a new airport in the

Peruvian jungle, "There cannot be politics without reli­ Populorum Progressio 1 gion ... If one does not believe in God, politics is only John Paul II particularly invoked. in his journey the en­ materialism, venality, and egoism. Only when one believes cyclical of PopePaul VI, Populorurri Progressio, issued in in the transcendance of the spirit and in another life can one 1967, and Paul VI's trip to Colom."a the following year, give oneself without fear. . . . Only when one believes in 1968. In that document, Paul VI had stated that "development God can one truly make politics." is the new name for peace." John Paulihas already designated John Paul II's denunciation of immorality in politicsand next year, 1987, as the year of Popu{orum Progressio, and in economics has apparently prompted the Ibero-American on July 1 he told 700national leaders pf Colombia to "be the Church to take one step closer to the drive of Alan Garcia for authors of a more just society." lbero-American unity on the debt. On July 9, the secretary He specified, "We arespeaking of� society in which hard general of the Latin American Episcopal Council (CELAM), work, honesty, the spirit of particip�tion at all levels, the Colombian Bishop Dario Castrillon, told the press, "For us, performanceof justice and charity arc; a reality. This society the debt is no longer debt but has become misery, something could be called the civilization of lov�. " central to our concerns." The bishop declared that the Pope's He concluded thatspeech, "May you all be pioneers in t call for developing-sector solidarity in solving the debt crisis that integral respect for the rights o . man in the image of "forcesus to insist on one point: the debt cannot be paid with God." the desperation of our peoples. We cannot establish the se­ EIR will publish extensive quotesifrom the Pope's inter­ curityof capital on the insecurity of man." ventions in Colombia in the next issu•.

ElK July 18, 1986 International 43 Chihuahua elections: MexicO, turns back a threat to sovereignty : by Mark Sonnenblick

The victory of the ruling PRI party in the July 6 Chihuahua cratic Policy Committee, re�rted from Chihuahua just be­ state elections shows that Mexican patriotic forces inside that fore the election, "As electior) dayapproa ched, foreign press party and the labor movement are reasserting their power. and 'observers' descended on!Chihuahua. Most of them were ' Despite heavy pressure from Washington for "political plu­ pro-PAN, and were convincdd that fraud and violence were ralism," the state was not given away to the National Action inevitable. A reporter from a Paso told me that he had seen Party (PAN), an anti-governmentmob rooted in a Nazi past. the PRI bring in ballot boxes already full. When asked where The "Mexico-bashing" games played in the U.S. Congress he saw this, he said, 'I didn't really see it, but I heard about by Sen. Jesse Helms (R-N.C.) have backfired. it. ' " I The remoralization of Mexico's ruling party means that As per the scenarios gr�und out by Washington think the country's creditors will find it more difficult than they tanks, the defeated PAN gutJernatorial candidate, Francisco may have expected to grab control of Mexico's prime assets Barrios, demanded that the dlection be annulled. To "make as conditions for renegotiating the country's unpayable $97 the governmentrepent for having committed the biggest elec­ billion debt. On the contrary, Mexico has opened its doors, toral fraud in Mexican histdry," he promised "10 days of its radio and television, for Peruvian President Alan Garcia action," a formulation bringing to mind the "10 days of rage" to talk up his sovereign imposition of national priorities on enacted by Weatherman terrdrists in Chicago in 1969. creditors. Barrios said the PAN executive has planned 56 actions. Mexico is still talking with its creditors. But, behind the On the firstday , the PAN blJx;ked streets in Ciudad Juarez, scenes, it is intensely promoting the first Latin American across the Rio Grande from EI Paso, Texas, and tied up 17 summit meeting ever, as a vehicle for joint regional action intersections in the capital, Cl:hihuahua, for an hour. On the on the debt. second day, 3,000 PAN mePtbers rioted in Ciudad Juarez The overwhelming PRI vote has also stalled, even if afterone of them was arresteQ on charges of carrying a pistol. temporarily, the "New Yalta" plans of the U.S. State De­ On the third day, most busintsses closed down for 12 hours. partment and allied political circles. Those plans revolved Any upsurge of PAN viblence has nothing to do with around using electoral violence on the U.S.-Mexican border annulling the elections. Any 4hance of that ended when Mex­ to force a redeployment of American troops from Europe ican President Miguel de la Madrid ratified the PRI victory back to North America-thereby abandoning Europe to So­ July 8 by proclaiming, "W¢ [Mexicans] have ratified our viet domination. decision to continue formi� a society of free men, in a The danger of the PAN provoking a violent explosion democratic context in whic� power originates in the great along the Texas border remains, but newsmen sent to look majorities. " for trouble on election day failed to find it. "I'm really dis­ Observers in Mexico believe the PAN may be stirring a appointed," a veteran U.S. TV correspondent complained, ruckus as part of bargaining! a new peace with the govern­ the daily Unomasuno reported the day after the elections. ment, in which all the illegal things it did during the electoral The correspondent went on, "My chiefs in New York called period would be pardoned. lOr, it might be going after a me and said I was sending them crap, that they want stories serious stepping-up of violence. But a violent rampage would on the violence ....But there isn't any!" The U.S. media, be short-lived, because thel Mexican army has quartered which had worked so hard to prepare for violence, blacked 25,000 soldiers and police uhder its command in the state to out reports of an election with less disturbances than in a deal with any trouble. hotly contested race in Massachusetts. Four days after the Were the PAN to act on �ts repeated threats of violence, elections, the New York Times could come up with little more it would be proving accusati�ns that it was an agent of Mex­ proof of fraud than a PAN poll watcher who said he had been ico's foreign enemies seeking to undermine the country. It kept out of a polling place for trivial credential problems. would pay a heavy price, in¢luding the loss of its party reg­ Harley Schlanger, Texas leader of the National Demo- istration.

44 International EIR July 18, 1986 Such a crazy gambit cannot be ruled out, since even the peasants and workers arrive at the po�ls to vote for the PRI ! PAN 's foreign controllers realize the party is incompetent to candidates. rule Mexico. The PAN has never been anything more than a Finally, to ensure a calm and orderly election, more than collection of drug pushers and promoters of Hitler's slave­ 25 ,000 troops were brought in. This d�scouraged PAN plans labor economic policies, and of wealthy landowners who for violent disruptionsand intimidation of voters and election never accepted the Mexican Revolution. Under the "free officials; it also was a preemptive meli4ureagainst post-elec­ enterprise" slogan, which endears PANista operatives to the tion violence, and demonstrated that the. governmentwould easily-manipulated Senator Helms, lurks an unholy alliance not be intimidated. of Nazi-Communists, made clear by the open collaboration These last-minute steps spoiled the /icenariosin Washing­ between the PAN, and the Moscow-controlled PSUM, Mex­ ton and Moscow, which counted on a PANvictory or massive ico's communist party . fraud. The buses arriving at the pollilg places would have PAN 's controllers would be willing to destroy their own been empty had the issue been the can�dates or the declining asset in a flurry of violence, if they thought it would lead to economy . pulling U.S. troops out of Europe, as advocated by Henry The turnaround was engineered latgely by the Mexican Kissinger. Parallel chaos operations such as mercenary vig­ labor movement. Over the past few mdnths, its battle cry for ilante squads rounding up illegal aliens on the Arizona-Mex­ defense of living standards and defen� of sovereignty from ico border have the same intent. creditor demands has won hegemony Inside the PRJ. Its po­ sition was recognized by President de :la Madrid in his Feb. Chihuahua: a turning point 21 speech, reiterated much more strongly June 2. The exciting part of the Chihuahua election story went Fidel Velazquez, the head of the ci>nfederation of Me x­ unreported by the U. S. press. All the hype of He]ms, and the ican Workers stated July 3, "PAN ha$ shown itself to be a foreign press, was not sufficient to overcome the PRI's major traitor to the Fatherland by provokingthe interference ofU. S. advantage: It is the political party which represents Mexico's authorities in the internal affairs of Mexico." Velazquez majorities. To win, it must mobilize that support and get it to moved on Chihuahua knowing that b� giving PAN even a the polls. That is what the PRI did. foothold in Chihuahua, to propitiate M:exico's "friends" in Helms and cronies portrayed the Chihuahua elections as the United States, the country's sove*ignty would be lost. a "test" of Mexico's democracy. They expected the PRI to With the overwhelming victory for th¢ PRJ's reluctant can­ lose in a fair election. In an abomination to the PRI's mass didate, the partysmashed whatever polJtical deal Bartlett had membership, the PRI candidate was hand-picked to be a cut during his secret meetings with top Wall Street strategists loser, in a back-room deal between Interior Minister Manue] at Columbia University in New York ... Bartlett and the "Chihuahua Group," the tightly-knit club of feudal landowners, front-men for foreign-owned border Peruvian emissaries sweatshops, and cross-border narcotics traffickers . Now, Mexico has greater freedomto take sovereign ac­ The Chihuahua Group declared July 7 that the PRI· and tion on its debt. Mexico will be ad$ant in insisting that PAN candidates were equally acceptable. As far as PRJ lead­ creditors accept the terms de la Madrid has outlined, which ers of peasant and worker constituencies were concerned, permit a bit of growth in 1987 and 1988.Its will is already both were unacceptable. being strengthened by Peruvian envoy$. Several steps taken by Mexico's leaders during the last From June 23 to July 5, Peruvian Congressman Wilbert week of the campaign turned around this planned defeat, Bendezu Carpio toured Mexico. He was sponsored by the without systematic fraud. First, the "LaRouche Card" was international Schiller Institute of Helga;Zepp-LaRouche. One played. As a representative of the NOPe, the political orga­ of the most trustedpartners of Peruvian President Alan Gar­ nization founded by U. S. presidential candidate Lyndon cia, Bendezu spoke at a dinner with 200 leaders of Mexico's LaRouche, Harley Schlanger held a series of press confer­ powerful oilworkers' union, met with !the Foreign Relations ences in Chihuahua and Mexico City, in which the IMFlNew Commission of the Mexican House otiRepresentati ves, and Yalta scenario was exposed. These werecovered on TV news addressed 80 students and teachers frqm the National Poly- nationwide, and on page one of the leading dailies. This technic Institute. I provided the Mexican voters with an understanding that Sen­ Again and again, the �exican le�ers listening to Ben­ ator Helms's intervention on behalf of the PAN was part of a dezu expressed shock at the relativei ease with which the conspiracy aimed at destroying MexicQ, and the Western economy of a nation may be ordered, ionce national interest alliance. is put firstover debt payment, as the Qarcfa governmenthas Secondly, the PRI sent some of its top organizers into done. Chihuahua, to "get out the vote." In "town meetings" "How far can one go against the powerful economic in­ throughout the state , the PAN was exposed, and voters were terests without suffering reprisals?" a�ed one congressman challenged to give a massive defeat to the "traitors." On from Sonora. Congressman Bendezu's answer was simple: election day, foreign reporters were stunned to see buses of Peru expects the support of the Thero-American continent.

EIR Ju]y 18, 1986 International 45 but also able to defend itsel , is what brought voters out for the LD P. The vote was produ�fed by "the Japanese character," said one Japanese political qbserver. "In the bottom of their hearts, the Japanese people like Mr. Nakasone." U. S.-Japan alliance The biggest loser in the eJection was the Japanese Social­ ist Party, the counterpart to ;Western Europe's Socialist In­ holds firm in vote ternationaldecouplers . The *P, the largest opposition party, lost some 25 seats while ot�r opposition parties lost 1 or 2 by Linda de Hoyos seats. JSP leader Masahi Is�ibashi, who has carried on his own diplomacy with the Spviet Union and North Korea, hinted July 7 that he might resign: "I feel a strong sense of Although the forces for the break-up of the Westernall iance crisis. Nakasone will push forward many dangerous plans, are moving with increasing speed in WesternEurope and the such as Japanese participatior in the Strategic Defense Initia­ United States, in Japan, the line for the U.S.-Japan alliance tive." held firmly July 6 with the landslide victory of the Liberal Democratic Party in national elections. When the count was A Nakasone third terlJ,l? in, the LDP won 304 seats in the 512-seat lower house of the Nakasone emerged fromithe elections the strongest poli­ Japanese Diet. tician in Japan, but he must win a power struggle within the For the LDP, the election, held for seats in both houses party if he is to force thro�h the two-thirds majority that of the Diet, was a clear reversal of the setback it suffered in would allow him to change t�e rule that limits the chairman's 1983, when LDP voters tended to stay home. Although it is term to two. The chairman ofthe majority LDP automatically recognized in Japan that the opposition parties had nothing becomes prime minister. to offer voters but criticism of the LDP and government of Nakasone's own faction, in the party now stands as the Prime Minister Yasuhiro Nakasone, the elections July 6 saw second largest, right behind that of the powerful Kakuei a 71% vote turnout. But LDP voters came out not only to Tanaka, the last Japanese ptiime minister to gain an interna­ affirm their allegiance to the party, but to deliver a mandate tional reputation before he \\faswatergated by the Kissinger­ to Nakasone. orchestrated Lockheed scandal of 1976. This mandate was delivered despite the fact that the prime Nakasone's firstchalle nger is Foreign Minister Shintaro minister's acceding to demands to "open" Japan's market Abe, a member of the factiqn led by former prime minister and suppress its exports has caused a near-recession in the Takeo Fukuda, who announped his bid for the prime minis­ Japanese economy. Only a week before the elections, statis­ tership right before the eleCtions. Another strong rival is tics were released showing that the growth in GNP for the Finance Minister Noboru TaJ

46 International EIR July 18, 1986 Soviet anti-SDI warfare: German high-tech specialist killed by ffi\F

The director of the German Siemens Corporation's R&D system which would render their ovetwhelming strategic at­ department, Prof. Karl Heinz Beckurts, was killed on July 9 tack capability impotent. in a brutal bomb attack that was claimed by the notorious Indeed, on the day of the murder, �uly 9, the Soviet army terrorist Rote Armee Fraktion (Red Army Faction, or Baader­ daily Krasnaya Zvezda said the U.S.A. would never achieve Meinhof Gang). the goals of the SOl because Moscow would take all measures Shortly after leaving his home in the town of Strasslach, needed to counter it. The military p�per noted, "Many sci­ 12 miles south of Munich, Beckurts's car was ripped apart entists and military specialists of diff�rent countries hold that by an explosive device that was attached to the base of a tree such an anti-missile system cannot beieffe ctive," and added, and triggered manually by the terrorists, who were hiding in "This is all the more so since the Soviet Union will not idly the woods. watch space weapons being created iacross the ocean." To According to police estimates, the bomb was composed restore the balance, it said, "the SOVoiet Union will have to of more than 20 pounds of commercial or military explosive take necessary measures to neutralize the 'Star Wars' elec­ mixed with steel scrap and filled into steel pipes to focus the tronic space machine .. blast wave onto the vehicle. Mr. Beckurts unfortunately had refused to use an armored vehicle and preferred to use several Soviet complicity different cars, hoping that terrorists would have problems Specialistsin German security agencies do not hesitate to finding outwhich car he was traveling in-obviously under­ point out the Soviet hand behind the wave of terrorist attacks estimating the skill of professional terrorists like those of the in Western Europe and the Federal Riepublicof Germany in RAF. particular as long as they talk offthe record. As one specialist Mr. Beckurts's driver, Eckart Groppler (42), also died in put it, "It is only the cowardice of politicians in Bonn that the attack. The explosion was timed so well that the security keeps us from revealing all the proof of Soviet terrorist in­ car with two private guards following the Beckurts car was volvement in public." only slightly damaged. In this case, though, some of the Soviet steering of so­ called anarchist terrorism was revealed by Federal Prosecutor An outstanding industrialist Kurt Rebmann in his press conference and a TV interview. Karl-Heinz Beckurts was an outstanding promoter of the Rebmann said that it was the student organization of the use of nuclear energy and the development of fusion energy German Communist Party, which had published in its mag­ and computer technology. As director of the Siemens R&D azine, Rote Blatter. the list of partici�ts in a secret meeting department, he was also on top of all developments relating of high-ranking German military persOnnel and industrialists to the Strategic Defense Initiative and the European high­ with a delegation of U.S. SOl speci�ists under Gen. James tech promotion program Eureka. Before becoming a Siemens Abrahamson. The meeting took plac� in July 1985, and the executive, where he was in charge of the 36,000 personnel list of participants can have been obtained only through engaged in the research and devolpment department of the professional espionage capabilities. This very list, as pub­ German multinational, he was the director of the JillichNu­ lished in Rote Blatter. was found in January 1986 in a terrorist clear Research Center. safehouse in Hanover used by two terrorist suspects, who The assassination is but the latest step in an escalating have since been released "for lack of proof of their terrorist campaign against every person and institution resisting So­ involvement. " viet threats and intimidation against President Reagan's Stra­ But Beckurts's name had been fOUnd as early as 1984 in tegic Defense Initiative (SOl). The Soviets have repeatedly a terrorist safehouse in Frankfurt-where six terrorists were warnedthat they will not allow the West to develop a defense arrested-among about 10,000 names, more than 1,000 of

EIR July 18, 1986 International 47 which police believed to be likely terrorist targets. In January 1985, another high ranking German manager, Dr. ErnstZim­ Interview: Gen. arcia Conde Cena! mermann of the MTU-corporation in Munich, was assassi­ nated by RAF-terrorists, six months after his name was found on the Frankfurt terrorist list. A European-wide meeting of terroristsand their support­ ers , held in Frankfurt in February of this year, passed the word to the terrorist scene that the "military-industrial-com­ The defense of We st plex," namely, the SOl, is the focus of all terrorist activities for the foreseeable future . A dossier of 18 pages was circu­ is the duty of all the lated on that occasion. outlining the terroriststrategy to strike I against as many "high tech" targets as possible. The assassi­ General Garcia Conde Cen(ll.fo rmer Chief of General Staff nation of key industrialand military leaders is only the tip of of the Spanish AirForce. sWke with our correspondent Leo­ this iceberg. During 1985, in West Germany, 1,604 terrorist nardo Servadio. in Madrid �t the beginning of June. attacks were carried out, ranging from minor arson against police cars up �o outright executions and mass murder. EIR: Spain occupies a stra¢gic position of great importance This is the reason that one has to conceive the terrorist for the defense of the Mediterranean and all Europe . There attacks as what German military strategist Brigadier F. A. are military threats to Spain-t Can you give us your evaluation von der Heydte (see EIR , July 4, 1986, pp. 26-31) described of these threats, and where �ey come from? as a Soviet strategy of "low-intensity warfare ." This low­ Conde: There is a lot of talk of the threat from the south, an intensity warfare is by no means limited to West Germany, imaginable threat, but this tpreat has two aspects. There is a but is carried out all over Western Europe and beyond. But possible direct threat to Sp�n for reasons of territorial dis­ in West Germany, since the violent "demonstrations" against putes , as in the case of Ceuta or Melilla, but this bilateral nuclear plant sites at Wackersdorf and Brokdorf in May­ threat is not very probable� at least in the short term. And June, it has escalated to a particularly intense level. There is there is another, much mote serious threat, also from the now a transition in progressamong the hard-core strata, from south, which from the point of view of defending Europe is improvised killer-weapons, such as deadly slingshots, to lim­ very important: the threat �at an invasion from the East ited use of conventional weapons and accumulation of pre­ would try to envelope Europe by the south. positioned and other military-weapons caches. The first threat is not vety probable; the relation of force between the possible aggressor and Spain is relatively reas­ Specifically anti·SDI suring. This is not the case pf the threat of the encirclement Leaving aside the earlier assassination attempts against of Europe from the south, ahd naturally, from the north . On General Kroesen and former NATO Commander Alexander this terrain, the policy of tt* government [of Felipe Gonza­ Haig, and the assassination of Gen. Leamon Hunt in Italy, lez] in the joint strategic plan, is a policy we would call the terrorist hits since 1985 have had a specific anti-SOl shamefaced. It cannot be said, as has been said when we were orientation. One week after the killing of Zimmerman in called to the referendumon NATO, that Spain's military non­ January 1985, the SOl-linked Gen. Rene Audran in Paris was integration into NATO has las its objective that our soldiers killed by the terrorist Direct Action, which closely collabo­ may not go outside our borders . rates with the RAF. At the same time, in a militarily planned In short, let us considet what aggression from the East fashion, the NATO-pipeline network in Europe was under would look like, this famousiaggression which they say would constant terrorist attack. The series of assassination attempts arrive in Burdeos in eight days. If the absurdity were put continued against the French General Blandin (failed), against forward that the Ukraine Republic is going to declare war on the leader of the French industrialists association CNPF, West Germany, and Polan� is going to declare war on Hol­ Brana (failed), and then on July 9, against Mr. Beckurts. land, and that some other socialist Soviet republic is going According to the best estimates of German security spe­ declarewar on France, in thiis absurd scenario it would seem cialists, the RAF is expected to try two more major hits natural that the German soldiers defend themselves against against high-ranking military or industrial leaders before re­ the Ukraine, that Holland defend itself against Poland, and tiring to regroup for several months. This strategy has also that the French defend themselves against their aggressor. proven to be very successful in France and would give the But in realitythe scenario isinot this. Soviet threat against German SOl involvement the necessary The scenario is that the ;armies of all the socialist Soviet emphasis. As a military security specialist put it: "As long as republics and their allies of �e East are going to attack all the our politicians are lining up in Moscow to hand over the latest states of Europe . And therefore , to say that Spain integrated technologies, while the leaders of the companies developing into NATO is only going to defend its soil when the enemy these technologies are killed by Soviet-directed, terrorists in arrives at our frontiers-w�ichis what is implied by the idea their homeland, we are in a bad position. " that our soliders will not moive outside our borders-is, from

48 International EIR July 18, 1986 terrorists, for example. · I Conde: Given my profeSSion, I do ot have concrete data, proof of concrete accusations. But exjamples can be given. The prime minister of the Spani$h government went to render posthumous homage to [Swedi�h Prime Minister] Olof Palme after his unfortunate assassi�tion. Olof Pal me had asked for money in the streets of his cduntry, for ETA . Pal me , Germany and his party, subsidized ETA . Whether Olof Palme was an agent of Moscow in this domain or in !some other, you would states of Europe have to ask the politicians more than the military men; I don't have information on this. But it is a! hard fact: Olof Palme the purely military, scientific, and ethical standpoint, truly sent money to ETA . And as a corollary I can add that after repUlsive. the funeral, Mr. Ortega, ofNicaragua� returnedto his country Germany's frontier with the East is under the threat of on a plane belonging to the Spanish government, placed at being attacked by all the states of the Warsaw Pact together, his disposal by the Spanish prime mirHster. Here the game is and it must be defended by all the states that are on this side being played by international politidians who have always of the Iron Curtain, and on the front line. supported ETA , because Ortega is anotherone of those they The proposal that the government is right now putting have backed. forward,is that our forces are in the south of Spain to defend As far as the Canaries go, I can easily demonstrate that Spain from a possible attack from the south, which means, via the Canary ports, one can get into Spain without the takingit to the absurd, that after 8-10 days of war, the forces slightest hinderance. Any Russian bbat, in the port of Las of the East will be at our borders, and 24 hours later they will Palmas, can debark its men without the least hinderance. If encounter our forces in the south of Spain, looking at the these persons go to the airport and tet a ticket to Madrid, Straits [of Gibraltar-ed.] , and they will take them from the since the Las Palmas-Madrid flight is a domestic flight, they rear. don't have to presentany l.D. They just have to give a name. There is another case which is much talked about and So, they can go to Madrid withouti any personal security which theoretically is much studied as well, that of the Bal­ check. The Canaries are a free and lopen port of entry for earic Islands-Straits-Canaries axis. The Balearic Islands are every class of foreign agents who want to get into the country . well defended, including by their proximity to the coast of the peninsula. But the problem of the Canaries is completely EIR: Regarding the political backi.g which the terrorists different. If you analyze the state of the North Atlantic, you can expect to get here in Spain, it sedns that people from the will observe that the Canaries are the only island air bases in Shining Path [Sendero Luminoso ofP�ru] and M-19 [Colom­ the whole Atlantic, the only ones that could be the target of bian terrorists] are findingsome facilities here. an East bloc offensive, to occupy them and thus exercise a Conde: There are offices here of tbese terrorist organiza­ decisive influenceon the whole trafficin Gibraltar. tions which are dedicated to recruitingpersonn el, but above To be sure, the Madeiras Islands are not well defended, all to collecting money to financially!support these terrorist but in no case can they be an aeronautical base, because they organizations. They have always exiSted, and are tolerated. have no air base, nor can it be constructed, nor do they have a port capable of serving as a naval base. It is the Canaries EIR: In the face of this situation, do you believe that the that are, in their present state of lack of defense, an easy national defense apparatus is adequate? What do you think target, I believe, and of firstpriority because of their ease of of the prospect of reducing U.S. troops? Can this be done beingoccupied by the East in case of a conflict. Therefore, without affecting the national defensd capabilities? the Balearic-Straits-Canaries strategic policy, as it is pro­ Conde: The Spanish defense budget Hs, in proportion to the posed, is absolutely absurd. Gross National Product, the lowest practically of all the I think that the defense of Spain must be carried out Western countries. Therefore, howe1Ver well it may be ad­ beyond the Rhine, in the case that the attack of the East comes ministered, the effect of the potency1of our armed forces is through Europe, as predicted; or in the south of Spain and in diminished by this fact. This diminution or limitation was particular in the Canaries, in the case that the East tries to partially alleviated by the presence of American forces in make a maneuver involving the south. Spain, which now they are trying toi cut or nullify. But the policy of reducingthe American for, the reality is that the Germany with the Greens? Here in Spain, you have the ETA presence of Americantroops in Spaid produces, as compen-

EIR July 18, 1986 International 49 sation, extraordinary economic and technical aid to our forces from the United States. And no one says this. So that if the U.S. forces are withdrawn from our country, not only are we Spain and is going to lose the support of their strength, stationed here, and surroundin s of their technology, but we are going to lose the economic �: €.AI'l armed and technical support that this presumes for our forces. be EIR: How could one strengthen cooperation between Spain and the United States? Conde: One thing that would have to be done is that the policy of the U.S. State Department would have to change, which has this extraordinary capacity to mistreat its friends and reinforce its enemies. Numerous examples could be cit­ ed. I Otherwise, the media here that are directly or indirectly I... ( subsidized by the communists , by the East, are trying to I -,- Las Palmas � generate animosity against the American people. rtt is could 1 ./ 01 ""'" ; be compensated bythe media that are not compromisedwith .""'0 , 0 ./ ALGERIA the KGB , which could compensate for the negative effectof Canary IsWlds e �; these ultra-leftists. ,--'" , But what cannot be tolerated is that the state-owned media J �" should be the firstagent promoting aversionto the peopleand ,I' MAURITANIA " policy of the United States among the Spanish people. -- A "

EIR: Speaking of the State Department, what examples are truly extraordinary, not on� in terms of scientific, but also you referring to, of policy which goes against friends and economic collaboration. lit the reconstruction of works of favors enemies? Is it true that the U. S.State Department was art, financed in some casesiat an absolute loss by the U.S.; the firstto propose the reduction of the air base at Torrej6n? and in health , the same. This is not published, not stated, and Conde: The base at Torrej6n is a very debatable thing; it that's how battles in psychdiogicalwarfare are lost, not only was chosen by the Americans at an earlier time. When it was in Spain, but around the world. built, it was much debated and had no justification. The ! Torrej6n base should have been in Albacete or in some other EIR: Do you think that tethnical and military cooperation place. The Torrej6n base has created an extraordinary con­ between Spain and the U.SiA. on the Strategic Defense Ini­ flictfor air traffic in the Spanish capital. And, moreover, it is tiative is possible, and woulijyou favor cooperation between a threatto the capital, a base which is so close to thecity . We the two continents? have to say frankly:The Americans, when they decidedwhere Conde: We always run up against France. Historically, Spain to put the base, committed an abuse. runs up against France . For �e there is no doubt that any kind The Americans wanted to live in Madrid, not in the mesas that cooperation with the United States on the SOl would be of La Mancha or of Castile. It was an error; there are many useful for Spain, not only in the military aspect, but in the billions of pesetas invested in Torrej6n and really the situa­ scientific, economic , and deivelopmentaspects . But we stum­ tion from the standpoint of air traffic and military objectives ble up against France, wqich has inserted itself with the is very serious. Torrej6n is not an independent air base, it is Eureka plan [a "counter" prpposal to the SOl involving only so close to Barajas that it is one more runway of the Barajas Europe-ed.], and it cannpt be forgotten that France has airport, or if you wish to turn it around, the Barajas runways great sway over Spain, bec�use there is a kind of blackmail arejus t extra runwaysfor the airport of Torrej6n. They have produced in the domain of terrorism. Terrorism in Spain is to function in coordination, a plane can't take off from Tor­ 90%prot ected, directlyor indirectly, by France. It is a harsh rej 6n without the Barajas control tower knowing it, or vice thing to say, but that's the way it is. I mean by this that the versa; the runways come together. French proposals, such as �reka and others , for Spain often As far as the State Department goes, the Philippines is a tum out to be impositions. past example. The case of Korea is a future example, of a State Department policy which places friendly countries in EIR: The only way, then, would be toestablish cooperation jeopardy. with France against terrorism, which would also allow better Otherwise, there is a failure of propaganda. There are cooperation with the United States .. kinds of aid which the United States is giving to Spain in the Conde: Yes, of course, but first we would have to see if cultural realm, the health realm, and sanitation; these are France were disposed to establish thiscoopera tion.

50 International EIR July 18, 1986 move into West Beirut. Syrianmilita rJadvisers have also set up checkpoints with the Amal and PSP militias that cut off Beirut from southern Lebanon. Six weeks earlier the same Syrian intelligence Brigadier Kanaan had turned the AmaI loose on tlhe Sabra, Shatila, and Lebanon falling to Bourj al-Barajneh refugee camps in West Beirut to crush a resurgenceof support forPLO chairman Yasser Arafat. Armed New Yal ta plan with Soviet T-54 and T-55 tanks and, supported by the 6th Brigade's heavy artillery, the Amal trdops caused 2,200 Pal­ by Scott Thompson estinian casualties in this new "war of the camps ," killing civilians and guerrillas indiscriminate� . President Amin Gemayel has denounced the latest Syrian On June 26-27, Assistant Secretary of State for Near East occupation of West Beirut as "illegitimate ," saying that nei­ Affairs Richard Murphy met in Stockholm with his Soviet ther the President nor the military leadership of the Lebanese counterpart, Vladimir Polyakov, a member of the Collegium Forces had been consulted. But on July 10, a State Depart­ of the Soviet foreign ministry. At their first meeting in Feb­ ment spokesman for Richard Murphy countered this, saying ruary 1985, sources report that Murphy had offered the So­ the occupation was approved by Lebanese Prime Minister viets leave to take over Lebanon, acting through their main Rashid Karami. Murphy's spokesman added that: "It is dif­ client state in the region, Syria. The latest Murphy-Polyakov ficult anymore to know where the seat of authority within meeting reportedly hammeredfu rther details of a "New Yal­ Lebanon lies." ta" settlement that would virtually annex Lebanon into this The Syrian occupation of West Btirut has also been ap­ "Greater Syria" design. proved by the Soviets. The day after the first 500 Syrian High-level Pentagon sources confirm this assessment of troops entered the city, pro-Syrian stooge, Prime Minister the Murphy-Polyakov meeting, saying that at present, State Karami met with new Soviet Ambassador, Vassili Ivanovich Departmentpolicy is: "Anyone who wants to get into Leba­ Kolotucha, to discuss the "peace plan}' Simultaneously Syr­ non is welcome. If the Syrians can bring a degree of stability, ian Brigadier Ghazi Kanaan met with and briefed the Second that's terrific." According to this same source, Syrian manip­ Secretary of the Soviet Embassy, AlelXei Bolivitche, on his ulation of sectarian fighting in Lebanon has caused so much operations. deterioration , Israel is no longer even interested in going back The entire occupation plan and the camps war had been in to partition the country between Greater Syria and Eretz worked out June 15 in Damascus in la meeting chaired by Yisroel, as Secretary of State Henry Kissinger had firsttrea­ Syrian Vice-President Abdul HaIim Kh'ddam who is in charge sonously proposed in 1975. of plans to partition and annex Lebanon . Attending the meet­ Afterthe State Department and Congress kept the Reagan ing were Lebanese Prime Minister Rashid Karami, Nabih administration from settling the Lebanon crisis in 1983, as Berri of the Amal, and SocialistInternational Vice-President President Eisenhower had done earlier, the stage was set for and Druze PSP leader Walid Jumblattl Apart from hammer­ an accelerated "New Yalta" giveaway of our Lebanese allies ing away at the need to crush any resurgence of Palestinian by Richard Murphy. Well-informed sources report that out­ support for Arafat, Vice-President Klhaddam also stressed going U.S. Ambassador to Lebanon Bartholomew recently that the Syrian occupation of West Beirut would be only the circulated a highly classified final mission report that envi­ first step toward renewing the "tripartite agreement." This sions furthercollapse of the politicalsituation through 1988. calls for rewriting the Lebanese Constitution in such a way Predicting the growth of sectarian zones, Bartholomew en­ as to give Syria's Muslim allies unchallenged control of the dorsed Murphy's plan by saying that U.S. policy toward country, which would topple Christiab President Amin Ge­ Lebanon must plant its left hoof in Damascus and right hoof mayel and end Lebanese sovereignty. ; in Jerusalem. Murphy and Polyakov reportedly .Iso discussed how the On the very day that Murphy and Polyakov were meeting Soviet Union would be brought dir�ctIy into Lebanon by in Stockholm, Syrian military intelligence Brigadier Ghazi Moscow replacing Washington as the funder of the U.N. Kanaan oversaw the move of 1,000 Shi' ite members of the forces (Unifil) that form the "Red Line" with Israel in the Lebanese Forces (6th Brigade) into West Beirut, where they South. Both the U.S. and U.S.S.R. agreed to renew U.N. closed scores of offices of the Shi'ite Amal and Druze Pro­ Resolution 495 for the Unifilfo rces when it comes up on July gressive Socialist Party militias. 19, as long as Israel's demand to cletn out the Palestinians No sooner had the Lebanese 6th Brigade taken up posi­ from SouthernLebanon is met. MeanWhile, Amal militiaman tions in West Beirut, than 500-1,000 heavily armed Syrian Mahmud Atweh appearedon Israeli r�io July 5 to agree with elite troops became the first to occupy Beirut since the 1982 an offer from Maj. Gen. Antoine Lahd ofthe Israeli Southern Israeli invasion. Lebanese sources report that they are the Lebanese Army that the Amal would work with Israel to vanguard of as many as 4,000 more Syrian troops who may police the Palestinians in Lebanon.

EIR July 18, 1986 International 51 Status-and reported that th entire areahad been sealed off, not only by police, but by hJ� ndreds of East German armed secretpolice from the MinistIjy ofState Security (Stasi). Such a deployment would never � ordered for a mere subway fire. The July 6 BUd am Sonntag htass-circulation newspaper re­ Silence covers East portedthat U.S. military moqitoring and interception in West Berlin of East German radio tommunications confinned that Berlin bloodbath a mass escape attempt had occurred and failed. Until the Wall was built in 1961, the tracks of the side­ by Konstantin George tunnel used in the escape attempt linked up with the tracks of the West Berlin subway system. Then, a nine-inch-thick slab was placed in between. The plan was to drive the train up to According to reports from the West Berlin based West-Ost this slab, and then leave the train and run the last several Nachrichtenagentur (WONA), on May 7, a group of 10-12 hundred meters along the tra¢ks into West Berlin. East Germans, some of them armed, failed in a dramatic According to WONA, the group included six former East attempt to escape to West Berlin. They were either betrayed German soldiers , who had re¢eived paratrooptraining during or spotted beforehand, and the attempt ended in the worst their military service; the nephew of an active Stasi official; bloodbath seen in an East European satellite country since and the son of a retired Stasi major-general. One of the group the Hungarian Revolution. All the participants were either was said by WONA to be a Bulgarian officer, who had been killed on the spot, or soon thereafterexecuted by firingsquad. serving as the aide to the B�garian military attache in East As a sign of the "New Yalta" epoch, even though the facts Berlin. EIR has confirmed tltat a Bulgarian first lieutenant, are known to the governments of the United States, Great Nedelin Makedonski, serving as assistant to the military at­ Britain, France, and the Federal Republic of Germany, not tache at the Bulgarian embassy in East Berlin, has indeed one government spokesman or member of parliament has been missing from the embassy since May 7. uttered a word of protest. The West German government has gone out of its way to deny the story as a "fabrication." Call for investigation The facts of what transpiredand the scandalous responses After the WONA story .broke in the major press, the by the West German government and the three Western Al­ general secretary of the Berlin (West) Christian Democratic lied Powers are chilling testimony to how far the West has Union (CDU) , Klaus Riidiger Landowsky, called for a "j oint plunged toward concluding a "New Yalta" sellout of the West expert commission of the Four Powers" (U. S., Britain, to the Soviet Empire. France, U.S.S.R.) to investigate what occurred in the East The escape plan involved driving an East Berlin eight­ Berlin subway tunnel on Ma� 7. Landowsky said that if the car subway train, which was lying in an unused side-tunnel, East Germans had nothing to hide they would agree to such running southeast from the Alexanderplatz subway station an investigation. He added, however, that if indeed a mass and junction, towards the abandoned Jannowitzbriicke sub­ escape had failed and ended: in a bloodbath, then, referring way station which lies inside East Berlin on the tracks of the to the postwar history of S�viet and satellite puppet mass West Berlin subway Line No. 8. The subway Line No. 8 is executions, it is "a case not �n in Central Europe since the one of two West Berlin subway lines running under East Hungarian uprising of 1956.�' Berlin for part of their route . Landowsky's call has prpvoked rage and hysteria from Something extraordinary did happen on May 7 in that East Berlin. The East Germ� foreign ministry issued a state­ tunnel. The East German News Agency ADN, on May 9, merit, calling Landowsky's remarks "stinking fabrications." reported that a major "electrical" firehad erupted in a subway The East German News Agency, ADN, raved about a "hair­ side-tunnel, somewhere between theAlexanderplatz subway raising wild west story cooked up in the dirty poison kitchen station and Klosterstrasse. ADN reported that the fire com­ of Landowsky," and denounced Landowsky as a "notorious pletely burned out an eight-car idle subway train in the side liar" and "sabre-rattler." tunnel, and caused sufficient damage to halt all subway ser­ The West German new�aper, Fran/ifurter Allgemeine vice between Alexanderplatz and Klosterstrasse, with pas­ Zeitung. supplied an appropriate commentary, in an editorial sengers forced to take a shuttle bus service. The description on July 2: "Germans attempting to escape from East Berlin of the fire and its effects is inexplicable, when matched with and East Germany are gunned down like rabbits by the au­ any normal electrical-failure fires (large amounts of smoke thorities." The editorial denounces the reluctanceamong pol­ and relatively little firedamage) among idle subway trains. iticians to take up any issu� like the Berlin subway affair, On May 7, a French military patrol was in East Berlin which they fear would confti<:;twith the general detente mood: near Alexanderplatz-such patrols occur daily by the rights "It is unwelcome here . . . 1p pose any questions on affairs accorded the threeWestern Allies under Berlin's Four-Power which, if confirmed, would disturb the so-called detente ."

52 International EIR July 18, 1986 Reportfrom Bonn by Rainer Apel

Money laundering for the SPD i Tel Aviv died of a!heart attack. The investigation of the Friedrich Ebert Stiftung may hit top • Jakob LeviQson. The president Social Democratic leaders hard. of Bank Hapoaliql, who knew about his bank's relations to the Naphtali Foundation, decided to shoot himself in the head in February 1984. The same Levinson happened to be the only per­ son, outside Hesselbach himself, who knew the details, of all the money transactions. Hes�elbach himself, of Over a period of one year, the So­ cial Democrat, Hesselbach is also on course, is not talk�ng. cial Democrats here have unsuccess­ the board of the FES, the same board The SPD, naturally, knows noth­ fully tried to tum part of the "Flick" which decides where the donations the ing of the affair. But the German pros­ party bribery scandal into a means of foundation receives are to be invested. ecutors are investigating where 40 toppling Christian Democratic Chan­ Moreover, Hesselbach is the man million deutsche�arks for the Social cellor Helmut Kohl. The investigation who founded the Fritz Naphtali Foun­ Democrats' electIOn campaigns in of the Chancellor's possible involve­ dation in 1961. 1980 actually carriefro m. The docu­ ment was formally dropped in May. From the Naphtali Foundation, ments, if there ever were any, went But now, the Social Democrats them­ connections reach into the Bank Ha­ with the late treasurerAlf red Nau, who selves have been hit by a scandal in­ poalim in Tel Aviv, the Histadrut la­ had been working for the FES for dec­ volving the Friedrich Ebert Stiftung bor confederation, and the Israeli La­ ades. What is knolWnis that the FES, (FES). bor Party, and back from there into the the SPD's political foundation, placed The FES is being investigated for German Social Democrats and the a lot of money in /the Naphtali Foun­ illegal money transfers, misuse of its BFG, the German Labor Union Fed­ dation's bank account in Basel. status as a foundation, and even mon­ eration's Bank fUrGemeinw irtschaft. While those who died can tell no ey laundering. Rumors have it that Well, such investigations take a tales, the membeq;hip list of the FES several tens of millions of deutsche­ long time, one might say, and little board "speaks." It'reads like a leader­ marks passing through the foundation may come out in the end. ship list of the S�D: Holger Bomer, are not in the foundation's books. This is certainly true. In fact, the acting governorot the state of Hesse; Considerable sums of money, which FES has beenu nder investigation since Horst Ehmke and �gon Bahr, the key the FES received from German indus­ 1982. It was not until mid-June that strategic policy makers of the SPD; trydonors , weretransferred to the Fritz the prosecutors decided to raid some Peter Glotz, national partymanager of Naphtali Foundation in Tel Aviv, financialoffices of the BFG, the FES, the SPD; Peter voq Oertzen, publisher which turnsout to be a mere letter-box and the SPD, securing a lot of docu­ of Vorwiirts magazine, the Social venture, with a telephone that no one ments and bookkeeping material. This Democrats' offici�lparty publication. ever answers. should have come earlier, because, as And, last but not l¢ast, Johannes Rau, The main interest of the German happens in these kinds of affairs, the the Social Democrats' chancellor can­ investigators right now is a secret bank responsible parties, those who could didate for the nationalel ections in J an­ account kept in Basel, Switzerland, at tell the whole story, have a habit of uary 1987. the Internationale Genossenschafts­ dying offrather quickly. All of this is now being investigat­ bank (Ingeba). As it turned out, mil­ The following people are already ed, and it will taketime. But six months lions of deutschmarks were placed in dead in the FES/Naphtali affair: before the next national elections, Jo­ this bank account by Alfred Nau, the • Alfred Nau. The Social Demo­ hannes Rau and his SPD associates treasurer of the Social Democratic cratic Party treasurer during the period cannot welcome �uch an investiga­ Party (SPD) until 1982. The director in questiondied in thesummer of 1982. tion, with all the bad media headlines of the Ingeba board is Walter Hessel­ His successor, Friedrich Halstenberg, it will entail. bach, a West German banker with happensto know nothing of what Nau Worse may h�ppen than just bad many connections to the international did. Nau never told him, naturally. headlines: The affair could end some underworld of real-estate speculation • Henryk Margulies. Walter very prominent poiIitical careers in the and dirty-money transactions. A So- Hesselbach's main representative in SPD. Let us hope so.

EIR July 18, 1986 International 53 Report from Rome by Marco Fanini

What Andreotti has in mind i there is qo room for a second Craxi Now that the New Yalta crowd has topp led Craxi, the governmtnt, opening the situation to Communists will "make the trains run on time." all soluti�ns. The Communists have proposed a "programtnatic government," based on a platform they would support if they were included in the next cabinet, At this moment of writing, the gov­ Carrington, Henry Kissinger, Willy which is identical to that of Andreotti ernmentcr isis in Italy has just started, Brandt, and Vatican Secretary of State and De Mita: cutting public spending but we can already foresee its out­ Cardinal Casaroli, for an agreement and the �ublic deficit. The Andreotti come: The incumbent foreign minis­ with Russia at any cost. The New Yal­ faction hts proposed a budget law for ter, Christian Democrat Giulio An­ ta implies that strategic areas like Eu­ the next fiscalyear that Italian Repub­ dreotti, will be the next prime minis­ rope and the Middle East are left to lican Pruity head Giorgio La Malfa ter, and his government will be sup­ Russian control, and the United States correctly I labeled "a kind of Italian ported by the powerful Italian Com­ should confine itselfto the Americas. Gramm-iudman." It proposes to munist Party. Since West Germany will fall into the drasticall cut pensions to the elderly The government of the Socialist hands of the Soviets, if, as expected, and publ tc health, and then cut every Bettino Craxi had lasted three years, next January the Social Democrats of other kin of public welfare , lowering the most stable government of post­ Willy Brandt win the national elec­ the livin � standards of Italians. war Italy. Formally, Craxi fell be­ tions, then Italy should follow a simi­ It sh�uld be noted that most of It­ cause of a secret vote of Parliament lar pattern. aly's statt! public deficit is a debt of against one law proposed by his This is why, suddenly, the Craxi the state �oward its own citizens who governmenthas fallen-and why the bought tax-free Treasury Bonds. administration. The reality is differ­ . ent: Craxi was pulled down immedi­ Vatican newspaper Osservatore Ro­ MUSSOli during the 1920s, man­ ' ately afterthe end-of-May congress of mano started last month to issue harsh aged not� 0 pay Italians on their Trea­ the Christian Democracy, where the attacks against Premier Craxi. This is sury Bo s, a Fascist move that was absolute winner had been Giulio An­ why Andreotti was welcomed in June done with the consultation and full dreotti. If Craxi was able to keep the by U.S. Secretary of State George support ¥ the U.S. Mellon banking faily, and then-U.S. Federal Reserve Communists out of power for three Shultz, one of the top "New Yalta" . years, Andreotti will do exactly the advocates, as the only trusted political chief Be amin Strong. contrary. man in Italy. Add to this that Soviet Now$. e Andreotti faction is trying Already in 1978-79, Andreotti leader Gorbachov had promised Craxi to push ople to abandon Treasury formed a government with the silent he would come to Italy in the spring Bonds and invest in the Italian stock but important external support of the but postponedhis trip toOctober, when exchangq, which is growing at an in­ PCI: In other words, the Communist another government will be there. This credible �nd crazy speed toward an deputies, almost 30% of Parliament, is a crisis totally orchestrated by the inevitablt crash. This is fascism "with voted in favor of the government or Italian and international forces of the a democ!atic face." The Communist abstained on decisive bills, thus al­ New Yalta and has nothing to do with Party of ltaly, which is still dominant lowing the governmentto survive. Al­ an internal power struggle between in the la�or movement, expects to be though Craxi was not particularly pro­ Craxi and Christian Democrat leader able to dtliver workers to passive ac­ American, and never really gave clear De Mita, as the American press has ceptance of the massive austerity mea­ and strong support to the Strategic De­ stated. sures derp.andedby the New Yalta ar­ fense Initiative of President Reagan, After the fall of Craxi, Italian rangemept. To prove this capability, Andreotti is a well-known friend of President Francesco Cossiga invited the ComIllUnists just pulled offa "quiet Moscow's Libyan asset Qaddafi and the president of the Senate, Amintore summer'� operation, which guaran­ of the Kremlin. Fanfani, to find out if there was any teed that; for the first time in Italian It is not that Andreotti is a Com­ possibility of forming a second Craxi history , �ere will be no trains or ships munist. He follows the policy of the government. Fanfani ended his con­ or airporis on strike in Italy during the New Yalta, elaborated by Lord Peter sultations and reported to Cossiga that summer �eason.

54 International EIR July 18, 1986 Andean Report by Val erie Rush

Peru outdoes U.S. in war on drugs ident Alan Garcia i-as bombarded with The Garda government's anti-drug fightshows up the effo rts of demands from both leftand right that the Reagan administration as not serious. his cabinet resign �n confession of its complicity in the �xecutions of Sen­ dero prisoners during the June prison rebellion. Luis Bedoya, head of the Social Christian Party and supporter of Chilean dictator Augusto Pinochet, joined with the P�ruvian Communist Party in indicting iGarcia for making A stunning new anti-drug raid by Interior Minister Abel Salinas re­ "gross errors" in �eploying the mili­ Peruvian police forces testifiesto the vealed in his press conference on the tary against the Sehdero uprising. determination of the Alan Garcia gov­ raids that in the first 10 months of the On the internationalfr ont, "friend ernmentto step up its war against nar­ Garcia government, more than 23 tons of Peru," Socialist�nternationalchair­ co-terrorism despite the attempts­ of pure cocaine (or its equivalent in man Willy Brandt t,vas accused by for­ domestic and international-to de­ basic coca paste, PBC) had been mer Venezuelan F(!)reign Minister Jose stabilize it in the wake of the mid-June seized-almost as much as the 27.5 Alberto ZambranQ of trying to force Sendero Luminoso (the "Shining Path" tons confiscated in all federally assist­ Alan Garcia to negotiatewith Sendero terrorband) prison uprisings. ed anti-drug operations in the United Luminoso. In charges made to the Ca­ In a multi-flanked operation begun States during 1985 (DEA estimates). racas press and c.rried by the Lima July 1 and lasting three days, more In addition, 144 clandestine air­ daily El Comercill on July 3, Zam­ than 100of Peru's special anti-drug strips and 28 drug laboratories have brano revealed that Brandt had tried to (Umopar) police penetrated by air and been destroyed in the Peruvian jun­ convince Garcia to negotiate with the land that region of Peru's Upper Hual­ gles, along with 452 tons of cocaleaves terrorists while chairing a Socialist In­ laga Valley known as "the cocaine tri­ ready for processing. Fourteen planes ternational confen:nce in Lima; the angle" (Uchiza, Sion, Paraiso, and and 25 motorboats have been seized, Venezuelan likeneid such an act to the Paupayacu). An army of mercenaries and 62 traffickers captured. "We will West German gov�rnmentnegotiating ensconced in three fortresses gave bat­ not rest until we exterminate the with the Baader-t.1einhof terrorists. tIe to the raiding police forces, using gangs," said Salinas. He asserted that Zambrano added tpat Brandt's efforts weapons that included powerful sur­ with the raid the governmenthas dem­ had endangered thl! stability of Peru's face-to-air missiles and other modem onstrated its commitment to reestab­ democratic gover�ment. He did not weaponry. lishing "the rule of law" in the jungle. mention that dialogue with the narco­ One police official who took part Days after the police raids in Up­ terrorist Sendero �ould also have un­ in theoperation noted, "What we found per Huallaga, an explosion in a sub­ dermined Garcia'� war on drugs. was truly incredible. Not a single po­ urban house in Lima on July 6 re­ The voice of Brandt's faction in lice or military unit in the jungle is vealed a terrorist factory belonging to the Social DemoCratic Party, Vor­ equipped with such sophisticated the Tupac Amaru (MRTA) urban warts magazine, devoted its late June weaponrynor with these ultra-modem guerrilla. A car-bomb the narco-ter­ issue to a sympathetic appraisal of the means of attack and defense." One of rorists had been preparing went off, Sendero Lumino!/,o narco-terrorists three Air Force helicopters was nearly killing them and injuring inhabitants which is also an attack on the Garcia downed by the drug traffickers. of neighboring houses. Besides the government. Journalist Michael When the fightingended , over 2.5 abundant weapons and MRTA litera­ Stuehrenberg, an �dent defender of tons of cocaine paste ready for refine­ ture discovered, Peru's investigative Sendero's Colombiancohor ts, the M- ment into pure cocaine were seized, police (PIP) found quantities of ether 19, writes: "The only thing to know along with vast arsenals of weaponry. and other chemicals used in process­ [about Sendero) is !Whythey belong to Two of the largest and most sophisti­ ing coca paste, leading the Peruvian the Peruvian reality of today, and how cated refinement laboratories ever press to speculate anew about the ma­ they could resist tpe dirty war of the found were discovered, and 13 traf­ fia-terroristlink . Army. The Sendepstas are . . . vic­ fickerscaptur ed. The governmentde­ While the police were raiding the tims of a terrorism; the shape of which clared the bust its largest to date. Huallaga Valley drug networks, Pres- is congruent with state power."

EIR July 18, 1986 International 55 From New Delhi by Susan Maitra

Rajiv Gandhi on the frontline nomic lktivity. Yet, during Rajiv Rhetoric ran headlong into reality during the prime minister's Gandhi' $ big May tour of the frontline whirlwind visit to Mauritius. states of Zambia, Zimbabwe, and An­ gola, no. a whisper of this complica­ tion was heard. India is, to be fair, not at all una­ ware of 'the urgent and rudimentary Raj iv Gandhi's sudden and unu­ 8% of its trade was with that nation, economic needs of the African na­ sually high-powered 36-hour visit to and it could have grown much larger. tions, as; shown by Foreign Minister the tiny island-nation of Mauritius on It remains to be seen what effect K. R. N�yanan's participation in the July 4-5 seems to have been a singular such a patronizing approach, however recent U!N .-sponsored session on Af­ misadventure for Indian diplomacy. eamest, will have on India's relations rica's eccmomic crisis. In the event, however, it may have with Mauritius, 60% of whose popu­ But .ow that the cat is out of the served to bring something of a reality lation is ofIndian origin. Bilateral ties bag, so tb speak, Rajiv Gandhi seems principle to the push for mandatory slightly frayed by recent public charges to have put himself in the curious po­ sanctions against South Africa, a push of "Indian interference" may need sition oflsponsoring a proposal which for which Prime Minister Gandhi is more than the $10 million aid-promise will bri� the sanctions campaign he emerging the self-appointed leader. the prime minister also brought along. has cha�pioned to a permanent halt. At a July 4 state dinner in his hon­ More immediately, the visit gave When h� announced the compensa­ or, hosted by Mauritian Prime Minis­ a two-pronged jolt to the sanctions tion proJlosalin Port Louis, the Indian ter Anerood Jugnauth, Rajiv Gandhi campaign. First, Mauritius's insist­ prime ml.nister vowed it would be on declared categorically that there was ence on putting reality before rhetoric the age�a of the August Common­ no alternative to comprehensive and forced out onto the table the open se­ wealth �ummit. But it can hardly be mandatory sanctions to end the era of cret of the Black frontline states: their expected to gamer support from the apartheid. economic dependence on South Afri­ reposito�es of monetarist austerity, During officialtalks the following ca. both in afldoutnf the Commonwealth, day, Mr. Jugnauth reportedly ex­ Second, Rajiv Gandhi's typically who COUld otherwise underwrite its plained to Mr. Gandhi that the sanc­ earnest response-the proposal for the provisio�s. tions were very nice, but there was no Commonwealth to compensate the A Commonwealth breakup over way that Mauritius could participate boycotters-may be the deathknell of the SoUth Africa issue, seriously without compensation for the eco­ the sanctions initiative itself. mooted in some African quarters, nomic losses the island will sufferthe According to Mauritian officials, wouldn't help much-unless, that is, moment it cuts trade links with South the country's import bill would soar if India itself is prepared to finance the Africa. the tiny nation were forced to import sanction�. Indeed, India is finding it At a joint pressconference before goods from countries other than South difficult110 even maintain tradeties with his departure that evening, in response Africa. Mauritius not only has tourist Africa, .nd proposals are circulating to a question about Mauritius's reluct­ and trade links with South Africa, but here to �et European aid flowsto Af­ ance to endorse sanctions, Mr. Gan­ is angry at having been singled out for rica e�arked for purchases in India. dhi delivered a small lecture on "prin­ condemnation while the other, larger Indi�' s imports from Africa have ciples" before proposing that the frontlinestates maintain their dealings droppedlfrom 10% of its total imports Commonwealth link the sanctions with with Pretoria at the same time that they in 1970 !to less than 2%, and today a compensation guarantee for those wax fiery on the need for economic represer¢ no more than .6% of Afri­ adversely affectedby cutting links with boycott. ca's exJi>rts. Moreover, most of the the Botha regime. In fact, Mauritius is not unique, purchas4s are not direct, but through "When one stands up for certain except perhaps in the candor of its London br other colonial centers. The principles, one has to make certain government leaders. There is not one purchase of $1 billion worth of dia­ sacrifices," Rajiv Gandhi instructedthe southern African nation that isn't de­ monds i� Belgium annually, much of Mauritians, adding that in 1964, when pendent on ties with South Africa for which lIP doubt originates in South India snapped ties with South Africa, anywhere from 50-90% of its eco- Africa, � a case in point.

56 International EIR July 18, 1986 Southeast Asia by Sophie Thnapura

Phuket ablaze: Thailand's Wackersdorf The Thai people's struggle in Phuket Escalating Soviet "irregular warfare" is the framework in which is just because it i� to protect the en­ a tantalum plant was burned byan angrymob on June 23 . vironment and thelr own lives. This just struggle will cpntinue," says Vi­ entiane authoritatively, "despite the state of emergency declared by the Thai government. ,� With the escalation of irregular used as an alloy for making metal cut­ One of the local operatives, how­ warfare, also called "low-intensity ting and drilling elements in machine ever, who played ' key role in organ­ operations," in the Greenie-led assault tools; as a material for making capac­ izing the anti-indu; try climate around on the Wackersdorf nuclear site in itors; for aerospace engines because of the plant, is univer ity environmental­ West Germany, the Soviet Union has its ability to withstand heat and its ist Prof. Dr. Surap�ol Sudara, a lead­ chosen to move into another new phase malleability; and for nuclear reactors ing member of the World Wildlife of its global war plans. This is the and special lenses. Fund of Thailand, Iwhere he joins the strategic framework for the June 23 In Thailand, tantalum is obtained genocidal likes of Prince Philip and event in Thailand, when the Thailand as a by-product of tin, and comes in Thacratejechai Viravaidhya. Rumors Tantalum Factory-85% complet­ the waste material of tin slag. The set­ have it that Royal ;Dutch Shell gives ed-was burned downed by an angry ting up of the tantalum factory would substantial support �o his environmen­ mob. have been an exemplary attempt to in­ tal club in the U"versity of Chula­ . . Nobody thought that the beautiful troduce downstream advanced tech­ longkorn. A maril'\e biologist " posing island resort Phuket off the coast of nology industries to Thailand. The as an expert in n ..clear technology, Thailand in the Andaman Sea could plant was to become the world's larg­ Dr. Suraphol argu�d that the radioac­ overnight tum into an unprecedented est tantalum producer, with a capacity tive element in tan�alum was going to scene of violence. A crowd of 40,000- of 300 tons of tantalum, representing contaminate the environment. "Sura­ 60,000 gathered in front of the prov­ 30-40% of the world's annual supply. phol has been stirring up protests incialcommunity hall to protest against Given the strategic quality of tan­ against the tantalum plant since its in­ the establishment of Thailand Tantal­ talum, the real manipulators of the ception in 1982. He also vowed that um Industry Corp., Ltd. on Phuket, conflictare unlikely to be local. Reli­ he will protest oth�r projects such as degenerated into an uncontrollable able sources estimate that the whole the Nam Jone Darn project and proj­ mob which burned down the Tantal­ scenario was mounted as a joint An­ ects in the Eastern Seaboard Com­ um Factory and a couple of floors of glo-Soviet operation. Sources also plex. Suraphol did; his graduate work the first-class Phuket Merlin Hotel. point to Singapore, since smuggled tin at the University o( Hawaii. Police officers, insufficient in num­ from Thailand is usually refinedon the Also significant;is the arrest ofNew ber,were taken by surpriseand gripped island nation, and Singapore stands to Force Party candidate Rewuth Chin­ with fear. There were no casualties. lose a cheap source of smuggled tin. dapol and his younger brother. The The board of directors of the Thai­ With Laos the headquarters of the New Force Party :is an ultra-liberal land Tantalum Industry Corp., Ltd. Soviet KGB in Southeast Asia, it is party which enjoy� links to the Fried­ has made it known that the firm will not surprising that the official Laotian rich Ebert Found*ion, the German undertake a feasibility study to relo­ press is hailing the destruction of the Social Democrati� Party, and the cate the plant from Phuket. Phuket tantalum plant. A wire issued Green Party. I The tantalum plant in Phuket was by the Vientiane domestic servicesays: Priorto the mo" scene on June 23, designed to become the world's most "This tantalum is used in the manufac­ Rewuth was knowh to have plotted a modem plant of its kind, according to ture of weapons and space equipment kamikaze assassiniltion scheme. He Dr. Wilfried Rockenbauer, a top ex­ and may cause radioactivity affecting declared that he was ready to die if ecutive of the German-based Her­ the environment and human lives, thus necessary in ordet to eliminate both mann C. Starck Berlin which sold the damaging the tourist industry on this Industry Minister : Chirayu Isarang­ technology to Thailand Tantalum. island . . . with high industry. It is kura Na Ayuthayarmd Thailand Tan­ Tantalum is found in tantalite, col­ necessary to resort to violence by set­ talum Industry's �ain shareholder, umbit, struverite, and tin slag. It is ting ablaze many parts of the plant. Yeap Soon Arun. !

EIR July 18, 1986 International 57 International Intelligence

Germany, he said. The T -80 tank is being Mafia lJigh Commissioner, Prefect Riccar­ German SocialDems introduced in Soviet divisions stationed in do Bodcia: "From preliminary investiga­ map ties to theEast EasternEurope . tions, i* has emerged that this remarkable Altenburg called for an increase in amount of heroin [the biggest seizurein Eu­ NATO's own conventional armaments to rope ev r] came from Kabul in Afghanistan, Leaders of the West German Social Demo­ � meet this threat. and, byIand, through Soviet territory. It was cratic Party (SPD) are currently mobilizing trans ed to the shores of the Baltic Sea in supportfor a draftparty programwhich calls IJOtt Latvia, �o the port of Riga, and from there it for "a security partnership between East and was bo�ded on the cited ship for the Neth­ West" and "a total withdrawal from nuclear 'BlackAf ricans will be erlands!" technology. "It demands reorienting NATO hurt most by sanctions' IIQiornale also revealed on July 8 that armed forces for a "non-attack capability," a top-stcret directive of the Soviet KGB, and replacingNATO with a West European President Quett Masireof Botswana said on design� "M-1 20/00-50," was given to defense system if "the United States contin­ July 8 that South Africa's blacks and its Westeqt intelligence services on Feb. 10, ues to use the Alliance as an instrument for black neighbors would suffer the most if 1971 bJa Bulgarian defector, Stefan Sver­ its military superiority and confrontation­ Western countries imposed economic sanc­ dlev. Thedirective, dating from 1967, al­ seeking global strategy. " tions on South Africa. "We are vulnerable legedly included plans for using drugs to The program, which is scheduled to be ! in the highest degree," Masire said, in an destabi�izethe Western countries. The strat­ adopted at the party's national congress in interview with the German newspaper Die egy for manipUlating corruption in the West August, is indistinguishable from Soviet Welt. was la ched in 1967, during a top meeting propaganda, and in many respects from the Almost all of Botswana's imports and of the astern intelligence services in Mos­ programof the fascist ecologists, the Greens. exports are channeledthrough South Africa. l cow. ter, in Sofia, Bulgaria, a more de­ Erhard Eppler, an ultra-leftist who heads "Obviously, we can't probibit theWest from tailed ategy was worked out, and drug the party's Commission on Basic Values. � imposing sanctions on South Africa and we traffic was a focus. announced on July 3 that the new program welcome every form of pressure on the II (;iornale also reported that drug cul­ would mean "a farewell to the notion of apartheid regime," Masire said. "But the tivatiod is widespread on Soviet territory: technological dependencies." The future , he people who would be hardest hit by a boy­ "In U�kistan the drug seems to be the said, in reference to America's Strategic cott and reprisal measures by the South Af­ prilllllljr natural resource. In Soviet Asia, Defense Initiative, "lies in the solution of ricans are simply the blacks, the neighbor­ there i� an infinity of plantations; in Kazak­ problems here on Earth, rather than in outer ing states like Botswana." istan, � Tadzhikistan, in Turkmenistan, and space." Even ifWestern nations gave extra help also in peorgia and European Russia," drug to his country and other black African states, planta�ons are to be found. he said, it would never compensate for the Soviets boost damage done. fo rces in Europe See $abotage in Soviet role in drug The Soviet Union is building a capability for spac� launch disasters conventional attack on Western Europe, trafficking exposed warnedthe inspector-general of the German French i intelligence has concluded that the Armed Forces, Gen . Wolfgang Altenburg, A Soviet ship, the Captain Tomson, was recent 4xplosion of an Ariane space launch in an interview to Deutsche Welle radio on quietly seized on May 30 in the port of Rot­ was pr�bably due to sabotage, according to July 8. Numerous statements by Soviet mil­ terdam, Holland, with 220 kilos of heroin a Los Angeles Times article by Tad Szulc. itary leaders lead to the conclusion that they aboard-the firsttime that Western author­ The F.h have shared thisinformation with believe in the option of a limited conven­ ities are known to have caught Soviet na­ the Un�ed States, Szulc reports, noting that tional war against WesternEurope , he said. tionals directly involved in drug-trafficking. French i Defense Minister Giraud was in Altenburg, who recently issued a "Situ­ Yet, the Rotterdam bust was covered by Washingtonfor meetings last week. ation Report" pointing to massive Soviet su­ a conspiracy of silence. Dutch police re­ Th� disasters which have hit the U. S. periorityover NATO forces in Europe, cited leased no details, and the media at the time space program, beginning with the Space the modernization of equipment in all cate­ only mentioned the arrest of three Dutch Shuttle�hallenger explosion, may alsohave gories of the Soviet armed forces. New mis­ nationals. been caused by Soviet-directed sabotage, siles with conventional warheads stationed Soviet involvement was firstrevealed in Szulc i$tplies. in East Germany and Czechoslovakia the Italian newspaper II Giornale on July 2, There was a "bizarre pattern" to the threaten about 300 key NATO bases in West which quoted from a reportby Italian Anti- French landU.S. accidents which were"sur-

58 International EIR July 18, 1986 Bri�flY

• 'I SEDUCED a lot of underage boys," Herbert Rusche, Green Party representative in the West German parliament, stated in the July 6 edi­ tion of Bild am Sonntag . It reported that Rusche's office is full of "pin ups" of naked young boys. Rusche is scenario for deserting Europe has circulated rounded by strange coincidences and unex­ reportedlythe only open homosexual plained events . . . including the apparent among U.S. Navy circles. The author is in the Parliament. He framed Green defection to the Soviet Union in of the Rear-AdmiralWilliam P. Mack (USN-ret.). 1983 policy on "the rights of homosexu­ He writes: "We Must: U.S. Air Force's leading expert on rocket als," featuring legalization of sex with "Prepare to establish on short notice a self-destructprocedur es." The expert,Capt. children. He was once a male nurse, continuous barrier along the entire William Howard Hughes , Jr. , was "worth 2,000 but was fired because "he was a dan­ his weight in gold to the Russians in terms miles of the U.S.-Mexican border. ...The , ger to the children. . . ." of future 'StarWars, if we have them," says border is approximately 2,000 miles long, j Szulc. half of it river, most of which is not readily • MIKHAIL GORBACHOV has He also reports that Russian spy "traw­ fordable. Assume that 1,000 watch towers , proposed that the five permanent lers" offCape Canaveral exhibited "odd be­ placed two miles apart, are manned by two members of the U.N. Security Coun­ havior" prior to the Challenger launch Jan. persons using binoculars, searchlights, and cil hold a conference on the Middle 28, steaming at flank speed to the northeast personnel movement sensors ... . Ona five­ East, during talk$ withFrench Presi­ for four hours just before lift-off. The cu­ to-one manning basis, this will require dent Fran,

EIR July 18, 1986 International 59 J1illNational

SDI faces its most dangerous challengeye t by Kathleen Klenetsky

The U.S. Strategic Defense Initiative faces what may be the er grouping around Defense Secretary Caspar Weinberger, most dangerous challenge to its survival yet, as a result of who remains firmly committed to the SOl, has reportedly Moscow's aggressive campaign to convince President Ron­ reached its most intense le,l yet. The Washington Post's ald Reagan that a new arms control agreement would be well Lou Cannon, a longtime "�agan watcher" who also func­ worth accepting stringent limitations on the anti-missile de­ tions as a mouthpiece for .he State Department position, fense program. revealed July 10 that the ouUines of a "grand compromise" Through his latest arms-control gambit, which calls for that would see the U . S. delaying SOl development for Soviet extending the 1972 Anti-Ballistic Missile Treaty for 15-20 cuts in offensive weapons bJive emerged in the administra­ years , and limiting the SOl to laboratory-only research, in tion. exchange for cuts in the U.S. and Soviet offensive nuclear Weinberger opposes any limits on future deployment of forces, Mikhail Gorbachov has succeeded in bolstering those SOl, while Shultz is intrigut¥lby the possibility if it leads to forces in the West, including such members of the Reagan a significant reduction in nuc,ear weapons, Cannon reported. administration as Secretary of State George Shultz, who have Sources cited by Cannon strc$sed that Reagan has reached no been pressing the President to negotiate away the SOl as part decision, while at the same �ime saying the President would of an accommodation with Moscow. insist on a 50% reduction iq Soviet and American strategic Gorbachov's "offer ," which he first made public June 16, arms-as opposed to the 35� proposed by Moscow-before has been seized upon by these jokers to "prove" to the Presi­ considering any limits on SDJ. Cannon's sources also claimed dent that the Kremlin has "softened" its position, and is now that while Reagan is unwill�ng to curb SOl research, a ban truly interested in striking an arms-control bargain. Thus, on deployment, perhaps to �e mid- 1990s, of any product of their argument goes, Reagan must reciprocate with a good­ this research might be negot;able. will gesture of his own, namely, accepting "temporary" lim­ Unfortunately, the Presi�ent himself has been dropping its on the SDI. hints which could be interp�tedto mean he is contemplating This is a dangerous fantasy. Reagan would be signing a such a trade-off. In his latflSt public statement on the new virtual treaty of national surrender were he to go along with burst of Washington-Moscow diplomacy, Reagan told the Shultz's version of Neville Chamberlainism. Knocking out July 9 New York Daily Ne�s that the Soviet's alleged will­ the SOl has been Moscow's No. I strategic priority, and with ingness to allow some research to proceed on SOl "is a good reason. The Soviet Union now enjoys a solid-and concession to the extent that it is a step forward from just expanding-military advantage over the United States. At their one-time flat declaration that we must give up that re­ this juncture, the deployment of even a first-generationABM search." "Certainly," Reagan stated, "we're going to give system holds out the only hope America has of reversing its them the benefit of any doubt" that the nature of the Soviet otherwiseinevitable slide into Soviet serfdom. Nevertheless, proposals signals seriousneS$ about reaching agreements. Shultz and his factional allies are using every deceitful trick Referring to the letter he received from Gorbachov in in the book to convince Reagan he must give way. June, Reagan said, "Obviou�ly, there's reason for optimism" The fight between the Shultz gaggle and the much-small- since the Soviets "are actu�lly talking specific percentages

60 National EIR July 18, 1986 . . . of weapons and this . . . has not taken place before ." He terview June 4. Stating bluntly that th Soviet proposal is also expressed hope that his next summit with Gorbachov "against the n�tional interest!l of the U 'ted States" and "an . , would take place this year, and that "we could perhaps agree attempt to kill the SOlby the side door� the Pentagon chief upon something" there , and leave the details to underlings. warned: ''The Soviets know you can 't t funding for a pro­ � " White House spokesman Larry Speakes subsequently told gram if you've said you'renot going to fuse it for 10 years. reporters that Reagan was preparing a detailed reply to Gor­ Accepting the Soviet proposal for exten�ing the ABM Treaty bachev's letter, which would specifically address the Soviet would cause SOl research "to lose a grea. deal of momentum" proposals on an offensive-defensive exchange. and cause a "loss of all public support ;Or. the possibility of ever deploying a strategic defense." Summit madness and SDI A similar point could be made about.the administration's Talk like this has set off alarm bells among SOl support­ acceptance of the congressional budget resolution, which ers. Syndicated columnist Bob Novak warned, in a television slashed a whopping $28 billion from the administration's discussion show taped July 3, that the anti-missile program proposed Pentagon budget for next year. By acquiescing in is facing "serious trouble" from "the know-nothing spirit in such disastrous cuts without making a national stink about Congress"-as well as the President's "mad desire" for a it-Larry Speakes actually called the resolution "accepta­ summit. Referring to Moscow's latest "offer," Novak said, ble"!-Reagan is undermining his arguments about the need "The really dangerous thing is that the mad desire for a to increase military spending. summit may lead the President to give a guarantee of seven Pressure on the SOl is going to gr�w massively in the years , eight years , on the ABM treaty , and would effectively weeks to come. Through a combinatioQ of diplomatic nice­ . . . put SOl on the shelf. ties and outright terror, the Soviets are moving rapidly to "I think we're in a critical state for the nation's future," extirpate all supportfor strategic defense in WesternEurope . Novak stated. "What's at stake is what is Ronald Reagan, The assassination of Karl Heinz Beckqrts, a West German because it's inconceivable that the greatest advancement he scientist closely associated with the SD1, signals unmistake­ has made in strategic thinking, the SOl, that he would throw ably that the Soviets have decided to pull out all the stops to down to have a little piddling summit meeting so this butcher derail the SDI. As the Soviet army daily Krasnaya Zvezda [Gorbachov] can come over here and see the United States." declared the day Beckurts was killed, the U.S.A. will never Novak said he was nevertheless "afraid" Reagan will agree achieve the SDI because Moscow will take all measures to limit SDI. needed to counter it. Reagan himself denied this when he met with French Moscow is enlisting the help of vari(>us European heads­ President Fran�ois Mitterrand over the Fourth of July week­ of-state in this effort. French President Mitterrand emerged end . According to Larry Speakes, the President told Mitter­ from a tete-Ii-tete with Gorbachov in Moscow July to to tell rand that while he believed the Soviets may be more serious the press that the Kremlin believes, and he agrees, that the than ever about an arms agreement, he underscored his po­ SOl is the one remaining obstacle to ia U.S.-Soviet arms sition that the SOl was "non-negotiable, not a bargaining accord. The situation is not hopeless, thie French leader con­ chip." tinued, because Soviet proposals to allow some research into It is conceivable that Reagan may be sending out ambig­ SOl provided a basis for negotiation! further Soviet blan­ uous signals deliberately, to keep alive the prospects of a dishments toward Europe were expectefj during Soviet For­ summit. There is no question but that the upcoming Novem­ eign Minister Eduard Sheverdnadze' s visit to Britain for three ber elections-in which the Republican Party could lose days beginning July 13. control of the Seriate-maybe one reason why the President As for the U. S. Congress, that body hardly requires any . is now playing lovey-dovey with Moscow. encouragement when it comes to destroying the SDI. The But even if this is all a charade, Reagan's new-found House and Senate Armed Services Committees have already friendliness toward Moscow is certainly feeding into the voted substantial cuts in the Adminstration's proposed $4.8 growing anti-SOl momentum on Capitol Hill. Sources in billion SOl allocation. It is not at all itnpossible that, once Congress have told EIR that any suggestion fromReagan that what passes for the congressional budget process winds up in the Soviet proposal for an offensive-defensive trade-off has September, the SOl will have been savagedeven further. some merit, can be used to force deep cutbacks in the SDI's In the latest anti-SOl initiative, eight Democratic con­ funding. "If Reagan concedes there's even the slightest gressmen announced on June 28 that they will attempt to movement on Moscow's part on Star Wars , then we'll be freeze SOl funding at the currentyea r's �evel of $2.8 billion. able to argue that it would be silly to give anything like full The eight, including Majority Leader �im Wright of Texas funding to the program . If Reagan is going to delay the and assistant Democratic leader Tom F�ley of Washington, program for political reasons, then Congress sure as hell isn't arecirculating a "dear colleague" letter expressing "concern" going to keep giving it money ," said one congressional staffer that the armed services committee had; allocated too much who is deeply involved in the anti-SOl fight. for the program. If they are successful, the SOl will be a dead Weinberger indirectly warned of this in a television in- letter.

EIR July 18, 1986 National 61 Sodomy ruling by high court poses threat to liberal counterculture by Edward Spannaus

Few U.S. Supreme Court decisions in recent years have We protect the decision whether to have a child provoked a greater hue and cry than its June 30 anti-sodomy because parenthood alters so dramatically an individ­ ual's self-definition, not because of demographic con­ ruling in the case Bowers v. Hardwick. In its 5-4 ruling , the Court upheld the constitutionality of the Georgia anti-sodo­ siderations or the Bible's command to be fruitful and mUltiply. my law, overriding the arguments of the appellants that there exists a fundamental constitutional right to engage in homo­ Blackmun goes on to argue that since sexual intimacy sexual sodomy. is "a sensitive , key relationship of human existence": Not only did overt homosexuals take to the streets for The fact that individuals define themselves in a demonstrations, but the EasternEsta blishment press-led by significant way through their intimate sexual relation­ the New York Times and the Washington Post-are still ships with others suggests, in a Nation as diverse as howling about the potential reversal of a "60-years broaden­ ours, that there may be many "right" ways of con­ ing of the sphere of privacy rights protected by the Constitu­ ducting those relationships ....The Court claims that tion." Their moaning and groaning is accompanied by car­ its decision today merely refuses to recognize a fun- toons of "sex police" invading the home, and warningsof a Supreme Court Justice hiding under every bed. Hyperbole aside, the liberals have real reason to be upset. The moral corruption of our culture, characterized by the rise of the radical counterculture of the I 960s and 1970s, and the Yuppie "me generation" of the 1980s, has been accompanied by a corruption of our constitutional law . For years, a shifting majority of the Supreme Court has attempted to write into the Constitution a libertarian notion of individual rights and per­ sonal privacy which is in fundamental conflictwith the basic premises of that document. This is most clearly expressed in Justice Harry Black­ mun's dissenting opinion in the Bowers case, in which he says that the court protects certain rights associated with the family: ...not because they contribute, in some direct and material way, to the general public welfare , but because they form so central a part of an individual's life. "The concept ofprivacy embodies the 'moral fact that a person belongs to himself and not others nor to society as a whole. '"

Hedonistic personal liberty was never the purpose of our repUblic. Our forefathers fought for political liberty , under­ stood to be essential for a republic in which the moral and intellectual development of the individual could flourish. Our Constitution is fundamentally Augustinian in concep­ tion, recognizing a higher purpose to existence than mere individual self-gratification.

Yet Blackmun is absolutely explicit in his rejection of The liberals are upset with the Supreme Court ruling for good such a conception, in his efforts to give a libertarian cast reason. Hedonistic personal liberty was never the purpose of our to the Court's earlier "privacy" rulings: republic.

62 National EIR July 18, 1986 damental right to engage in homosexual sodomy; what the Court really has refused to recognize is the fun­ damental interest all individuals have in controlling the nature of their intimate associations with others . Excerpts from the In the Bowers case, and in the related abortion and pornography cases, it is clear that the liberals, led by Black­ Supreme Court ruling mun , have a much clearer idea what they are fightingagainst , 1 than the so-called conservatives have of what they are fight­ Below are excerpts from the Supreme tourt ruling on the ing fo r. The liberals are fighting to sever any connection right of states to make sodomy illegal, inthe case of Bowers , between morality and law . The "conservatives," unfortunate Attorney General of Georgia v. Hardwicl< et al . to say , may be waging a vigorous and sometimes bitter battle against unbridled liberalism, but they are not fighting This case does not require a judgment on INhether laws against for Augustinian culture or a conception of the Constitution sodomy between consenting adults in general , or between which comports with the natural-law outlook ofthe Founding homosexuals in particular, are wise or desirable. It raises no Fathers. question about the right or propriety of state legislative de­ The Rehnquist-led bloc in the Court has no positive cisions to repeal their laws that crimim\�ize homosexual so­ conception of the Constitution, in the sense that Franklin, domy, or of state court decisions invalidating those laws on Washington, Hamilton, and Marshall understood the Con­ state constitutional grounds. The issue presented is whether stitution as creating a republic in which the moral devel­ the Federal Constitution confers a funqamental right upon opment of its citizens-the creation of virtue in the popu­ homosexuals to engage in sodomy and qence invalidates the lation-was the ultimate object. While Rehnquist and com­ laws of the many States that still make Such conduct illegal pany may be personally opposed to abortion , pornography, and have done so for a very long time . T�e case also calls for selling contraceptives to minors, and sodomy, the consistent some judgment about the limits ofthe Court's role in carrying thread in their rulings and dissents is that the states can out its constitutional mandate . more or less do what they want in these areas, and that the We first register our disagreement w,ith the Court of Ap­ federal government and the Supreme Court shouldn't get in peals and with respondent that the Cou(t's prior cases have the way. If a state legislature wants to legalize abortion on construed the Constitution to confer a �ght of privacy that demand, or legalize pornography , so be it. extends to homosexual sodomy and fOI:all intents and pur­ Let's look at the Bowers ruling from this standpoint. It poses have decided this case .... does not say that sodomy is unconstitutional . It explicitly Accepting the decisions in these cllses and the above does not even say that sodomy is wrong . It does not say description ofthem, we think it evident t�at none of the rights that a state cannot legalize sodomy. What it says, is that announced in those cases bears any resem\Jlanceto the claimed the federal government-through its judiciary branch-can­ constitutional right of homosexuals to �ngage in acts of so­ not overturn a state law outlawing sodomy, on the grounds domy that is asserted in this case. No fonnection between that the right to practice sodomy is protected by the Con­ family, marriage, or procreation on the one hand and homo­ stitution. sexual activity on the other has been demonstrated, either by The same ideological prejudice holds true with respect the Court of Appeals or by respondent. Moreover, any claim to the bitter split in the court on the issue of abortion . The that these cases nevertheless stand for the proposition that four-person bloc on the court which now opposes Roe v. any kind of private sexual conduct betw�n consenting adults Wade is not asserting a "right to life" inherent in the U.S . is constitutionally insulated from state Pfoscription is unsup­ Constitution; they are merely arguing that the Constitution portable .... does not convey a right to abortion on demand. They would Precedent aside, however, respondept would have us an­ uphold state laws restricting free access to abortions per­ nounce, as the Court of Appeals did, a fundamental right to formed for the "convenience, whim or caprice of the putative engage in homosexual sodomy. This wet are quite unwilling mother"; but likewise they would uphold the states' right to do. It is true that despite the languag¢ of the Due Process to legalize abortion on demand. Clauses of the Fifth and Fourteenth I\mendments, which Despite this, the political significance of the Bowers appears to focus only on the processes by which life, liberty, ruling goes beyond the limitations of the majority's own or property is taken, the cases are lesion in which those reasoning. It reflects the popular reaction against the coun­ Clauses have been interpreted to have />ubstantive content, terculture and the "gay lobby" which has been catalyzed by subsuming rights that to a great exteqt are immune from the AIDS crisis, and it is giving encouragement and impetus federal or state regulation or proscription. Among such cases to the developing citizens' revolt against the destructive are those recognizing rights that have; little or no textual effects which the rise of the counterculture has had on our support in the constitutional language. .1 . . society over the past two decad es. Striving to assure itself and the pu�lic that announcing

EIR July 18, 1986 National 63 rights not readily identifiable in the Constitution's text in­ or stolen goods ....And ' respondent's submission is lim­ volves much more than the imposition of the Justices' own ited to the voluntary sex al conduct between consenting choice of values on the States and the Federal Government, adults, it would be difficult,. xcept by fiat, to limit the claimed the Court has sought to identify the nature of the rights qual­ right to homosexual condu t while leaving exposed to pros­ ifying for heightened judicial protection. In Palko v. Con­ ecution adultery, incest, an� other sexual crimes even though necticut . . . it was said that this category includes those they are committed in the home. We are unwilling to start fundamental liberties that are "implicit in the concept or down that road. I ordered liberty," such that "neither liberty norjus tice would Even if the conduct ati issue here is not a fundamental exist if [they] were sacrificed." A different description of right, respondent asserts ttj.at there must be a rational basis fundamental liberties appeared in Moore v. East Cleveland, for the law and that there it; none in this case other than the . . . where they are characterized as those liberties that are presumed belief of a majdrity of the electorate in Georgia "deeply rooted in this Nation's history and tradition." ... that homosexual sodomy is immoral and unacceptable. This It is obvious to us that neither of these formulations would is said to be an inadequate �tionale to support the law. The extend a fundamental right to homosexuals to engage in acts law, however, is constantly based on notions of morality, of consensual sodomy. Proscriptions against that conduct and if all laws representing essentially moral choices are to have ancient roots. See generally, Survey on the Constitu­ be invalidated under the D�e Process Clause, the courts will tional Right to Privacy in the Context of Homosexual Activ­ bevery busy indeed. Even respondent makes no such claim, ity, 40 Miami U. L. Rev. 521, 525 (1986). Sodomy was a but insists that majority �ntiments about the morality of criminal offense at common law and was forbidden by the homosexuality should be declared inadequate. We do not laws of the original thirteen States when they ratified the Bill agree, and are unpersuaded that the sodomy laws of some 25 of Rights. In 1868, when the Fourteenth Amendment was States should be invalidated on this basis .... ratified, all but 5 of the 37 States in the Union had criminal sodomy laws. In fact, until 1961, all 50 States outlawed ChieJ Justice Warren Burger wrote a separate opinion. con­ sodomy, and today, 24 States and the District of Columbia curring with the Court. printed inJull. continue to provide criminal penalties for sodomy performed in private and between consenting adults. Survey, Miami Ijoin the Court's opinion, butI write separately to underscore U. L. Rev., supra, at 524, n. 9. Against this background, to my view that in constitutional terms there is no such thing as claim that a right to engage in such conduct is "deeply rooted a fundamental right to commit homosexual sodomy. in this Nation's history and tradition" or "implicit in the As the Court notes, m#eat 5, the proscriptions against concept of ordered liberty"is, at best, facetious. sodomy have very "ancient roots." Decisions of individuals Nor are we inclined to take a more expansive view of our relating to homosexual conduct have been subject to state authority to discover new fundamental rights imbedded in intervention throughout th¢ history of Western Civilization. the Due Process Clause. The Court is most vulnerable and Condemnation of those practices is firmly rooted in Judeao­ comes nearest to illegitimacy when it deals with judge-made Christian moral and ethical standards. Homosexual sodomy constitutional law having little or no cognizable roots in the was a capital crime undd Roman law. See Code Theod. language or design of the Constitution. That this is so was 9.7.6; Code Just. 9.9.31. Sbe also D. Bailey, Homosexuality painfully demonstrated by the face-off between the Executive in the WesternChri stian Ttadition 70-81 (1975). During the and the Court in the 1930's, which resulted in the repudiation English Reformation when �owers of the ecclesiastical courts of much of the substantive gloss that the Court had placed on were transferred to the Kint' s Courts, the firstEngl ish statute the Due Process Clause of the Fifth and Fourteenth Amend­ criminalizing sodomy was passed. 25 Hen. VIII, c. 6. Black­ ments. There should be, therefore, great resistance to expand stone described "the infadlous crime against nature" as an the substantive reach of those Clauses, particularly if it re­ offense of "deeper malignity" than rape, an heinous act, "the quires redefining the category of rights deemed to be funda­ very mention of which is • disgrace to human nature," and mental. Otherwise, the Judiciary necessarily takes to itself "a crime not fitto be narnbd." Blackstone's Commentaries further authority to governthe country without express con­ *215. The common law ofl�ngland, including its prohibition stitutional authority. The claimed right pressed on us today of sodomy, became the rec�ived law of Georgia and the other falls far short of overcoming this resistance. Colonies. In 1816 the Geofgia Legislature passed the statute Respondent, however, asserts that the result should be at issue here, and that stan!te has been continuously in force different where the homosexual conduct occurs in the privacy in one form or another sincb that time. To hold that the act of of the home ....Plainly enough, otherwise illegal conduct homosexual sodomy is sodtehow protected as a fundamental is not always immunized whenever it occurs in the home. right would be to cast asidd millennia of moral teaching. Victimless crimes, such as the possession and use of illegal This is essentially not a question of personal "prefer­ drugs do not escape the law where they are committed at ences" but rather of the legislative authority of the State. I home. Stanley itself recognized that its holding <;lffered no findnothing in the Constitution depriving a State of the power protection for the possession in the home of drugs, firearms, to enact the statute challenged here.

64 National EIR July 18, 1986 control over interest rates. Other times, the President would defend the need to match the defense bu�et line to the needs BookReviews of national security, rather than the nostrums of David Stock­ man. The premise offered by Stockman about how a national economy should be run, is that it functions in the same way as a household budget. Unfortunately, this corresponded to the President's own prejudices on the subj ect. Thus, while D. Stockman and the the President resisted cutting defense spending and was un­ willing to force social security recipients and pensioners onto triumph of subterfuge the welfare rolls, he was a sucker for deregulation. The President's ignorance of American System econom­ by Carol White ics, as laid out by Alexander Hamilton, and practised by Abraham Lincoln, created his tragic vulnerability to the likes of David Stockman. Thus, although the President supports The Triumph of Politics: How the Reagan the Moon-Mars initiative and understancls the necessity that Revolution FaDed America maintain a frontier in space, he has yet to decide to by David A. Stockman replace the fourth Space Shuttle orbiter, because of the ar­ Harper & Row, Publishers guments of Don Regan that it costs too much. 422 pages There are many deliberate lies in this book, but the worst $21.95 is the so-called economic lesson drawn by Stockman, that the budget deficit can only be eliminated by cutting social services or an across-the-board confiscatory tax increase. Few Americans, suffering from the depression which David Ruled out of discussion is the role that the Federal Re­ Stockman helped to create , should be willing to throw away serve Board has played in distorting the U. S. and world $21.95 on this dull, dull book. Were he merely dishonest and economy, by its high-interest policy, which not only trans­ self-serving it would be one thing-but boring to boot. formed the United States into a debtor I1ation, but made it a On the surface of it, this is an apologia. Stockman admits predator upon the developing sector. Rtlled out is the alter­ to cooking the books in order to achieve his purpose-which native route, in which the governmentwould substitute pro­ was to chop the federal budget to bits. His method, as he tells grams to encourage productivity growth while phasing out it, was to deliberately increase the federal deficit, while as­ the bureaucratic distortions of the Johhson Great Society suring thePresident and the country that the opposite was the Welfare State. case: that the federal budget deficitwas being eliminated. The book opens with the incident in which Washington Then, as the economic situation deteriorated , and the Post reporter Bill Grieder published an expose of the Reagan budget deficit skyrocketed, he would have further justifica­ administration in November of 1981 , based upon leaks from tion for forcing through still more cuts. His major targets, of Stockman. While Stockman pleads innocent, he himself ad­ course, were social security and defense spending. mits that he had allowed Grieder to tape weekly "back­ Indeed, the only thing that could make the Gramm-Rud­ ground" discussions with him. This level of subterfuge is man computer look good-would be the alternative of hav­ characteristic of the book. ing Stockman back in the Office of Management and the Thus, Stockman claims that he is opposed to the auto­ Budget. matic budget-reduction features of the Gramm-Rudman This is a horrifying book, because it plainly shows how amendment, but in fact, his entire book is nothing but a an honest and well-meaning President was deliberately, and rationale for the amendment. His image:of the Congress is a repeatedly, hornswaggled by the advisers whom he trusted. herd of swine with snouts in the feeding ttough, and the White Even despite Stockman's viciously cynical put-down of Pres­ House is presented in the same light. ident Reagan, the picture comes across of a bemused but Stockman admits that he was a left-wing radical in his decent President, committed to a strong defense and econom­ student days. He was then a protege of Daniel Moynihan. ic growth, but being brainwashed into taking decisions which From there, he was picked up by the Trilateral Commission's would inevitably accomplish the opposite. John Anderson, who groomed him for �his cabinet position One meeting is described, right before President Rea­ by placing him as executive director of the Republican Con­ gan's first inauguration, at which he tackled the high interest ference. rates, and the role of Paul Volcker at the Federal Reserve What was David Stockman's secret ilgenda?What is the Board, only to be given an economic "briefing"by economic purposeof this book? Whatever interests he was really serv­ adviser Alan Greenspan, designed to confuse the President, ing, they certainlywere not the national interests of the United and convince him that the Federal Reserve Board had no States of America.

EIR July 18, 1986 National 65 Military refonn: If you liked am ve Gary McN ara, you 11 lo IHart by LeoScanlon

few involved would claim to be working from any particular notion of grand strategy. America Can WiD: The Case for MUitary William Lind, howeve(, has been advocating a dramatic Reform by Gary Hart and William S. Lind shift in U. S. policy, speci�cally that the United States pull Adler and Adler, Bethesda, Maryland, 1986 out of NATO , and is on the record with this proposal in Senate 30 1 pages, clothbound, $17.95 Defense White Papers going back almost 10 years. Lind believes that this type of change will come when Congress becomes the dominant power in shaping defense policy, and that this can be accomplisbedthrough congressional control There are two important features of the latest production of of the budget process. Eac� of the book's specificproposals the "military reform movement" which recommend a de­ flows from that strategy, although the authors take pains to tailed review of this title. By virtue of the prominence given conceal this. to one of its co-authors, Gary Hart, this book will be widely read as a campaign statement by a contender for the 1988 The theoretical fram,work Democratic presidential nomination. The second point is that For example, Lind credits Edward Luttwak, of George­ the authors of the book are partisans of a grand strategy, town's Center for Strategicjand International Studies, for the popularly called "New Yalta," which has broad support with­ theoretical framework for �is attacks on the American con­ in a section of the civilian bureaucracy of the Pentagon. The ception of a republican antty, and other contributions. Lut­ book is therefore more insidious than garden-varietydefense twak, a Romanian-born ac.demic, is the author of The Pen­ bashing. tagon and the Art of War, � critique of the U.S. officercorps It should be stressed that this book is not a "Democratic" and defense establishment] Luttwak asserts that the United political statement, despite Hart's party affiliation. The prin­ States must recognize the t)lilure of our original foreign pol­ cipal author is Hart's defense adviser, William Lind, who icies, oriented toward the clevelopment of republican allies, began his career in Washington writing defense white papers and should model itself on the Roman Empire, with a military for former Sen. Robert Taft (R-Ohio), and is also currently capability matched to thel task of managing a continuous defense affairs adviser to Paul Weyrich. Weyrich, the poten­ series of satrapal wars. Har1iand Lind repeat Luttwak' s claims tate of several neo-conservative fiefdoms in the realm of the that the current officercorps lacks the flexibility to manage Heritage Foundation, has declared that Lind is the person such a strategy, but you haive to read Luttwak, or Lind's old who has most influenced him on defense matters. Weyrich white papers, to know whatit is that these gentlemen expect has also identified Gary Hart as the standard-bearer for the of the officer corps. They: never discuss the war planning new "social conservatism," a movement which putatively requirements of a nation co�mitted to the defeat of the Soviet backs the Heritage Foundation's efforts to forge coalitions of strategy for global domination, and this point is the tell-tale liberals and neo-conservatives united in opposition to spend­ which will guide the readdr across the sea of sophistry that ing to maintain the vital defense and infrastructure of the passes for military analysis among the "military reformers ." republic. The name given to � grand strategy motivating the The sly, anecdotal arguments of the authors have been authors is "New Yalta"; its!arrangements are currently being tailoredfor the speech writers of the neo-conservatives from negotiated by the State Dbpartment and the White House both parties, who will be in need of rationalizations for their staff. Under the terms of New Yalta, the United . States will abysmal behavior during this recent session of Congress. drop political and military commitments to most areas of the Under the banner of "Gramm-Rudman," this amalgam of world outside of the Westetn Hemisphere, and will no longer liberal and conservative networks is vigorously lobbying for need to support a land army in Europe. Likewise, naval and different bits and pieces of the package of reforms presented strategic air forces can be ie-designed to support the limited in the book, and, as with many of the military reform crowd, mission of fighting "wars Qf, maneuver" on our southernbor-

66 National EIR July 18, 1986 ders. Finally, the Strategic Defense Initiative (SDI) need only One soon discovers that the term ' eform," as used by be a point defense system under these conditions, and the the authors, has the same remarkable flt�xibility as their rea­ President's program can be scrapped and replaced by the soning processes. They firstinform us tiltatthe best examples conventional technologies advocated by Gary Hart, Danny of reform are: the upheavals which follqwed the 1806 defeat Graham of the Heritage Foundation, and Assistant Secretary of the Prussian military by Napoleon, an:event which sparked of Defense Richard Perle. the reforms of Scharnhorst and Gneisenau; the U.S. Civil These men, who represent leading strata of what is called War, and its accompanying technological developments; and conservative among government bureaucrats, share a pro­ the World War II mobilization of U. S. i1ndustry (p. 24). found pessimism which induces them to reject any policy After all, the Prussian reforms wete not limited to the approach which demands the mobilization of national re­ creation of the institution of the Gener4l Staff, but incorpo­ sources to achieve great political, economic, or scientific rated the republican nation-building policies of vom Stein accomplishments. Richard Perle, for example, in popular and the educational reforms of Humboldt; Lincoln imple­ perception a "hard-liner," is a zealous advocate of practical mented Hamiltonian banking reforms which created the accommodation to Soviet strategic aims. Perle's open break greatest industrial expansion ever witnessed in history; and withthe President and Weinberger on the SDI, first signaled FDR, using similar credit policies, was able to implement during his appearance in an ABC Nightline interview, and the industrial mobilization policy developed by Douglas stated more forcefully to Time magazine, was preceded by MacArthur and his staffbefore World War II. It is obvious, months of diplomatic activity, documented in EIR , devoted therefore, that "reform" will occur as: the consequence of to spreading the line among our allies, that the SDI would mobilizing the country to accomplish I great industrial and not survive as a program, beyond the Reagan years. technological feats which secure a republican peace. Right? Perle's actions are coordinated with those of Don Regan Wrong. "But even in the military, major changes driven at the White House, and designed to ensure that the disastrous by technology are rare . Despite all the t*lk about 'technolog­ defense budget cuts negotiated by Regan will be passed by ical revolutions in warfare' by the advocates of complex Congress. This faction of the executive branch is calling the technology, such revolutions occur ve� seldom ....Mili­ shots behind the congressional revolt against the President's tary reform consists of returningto the qonstants of the art of defense budget. Gary Hart and William Lind are providing war, not moving in new and untried dillections" (p. 257)! In the window dressing. the space of 200 pages, "reform" has demonstrated great There are , of course, monumental problems besetting the "flexibility. " the U.S. military . The McNamara team institutionalized a Not surprisingly, Lind dismisses the space program with variety of horrendous policies, and, like our present military the assertion, "The last 30 years havel seen only one such reformers, they also claimed to have no political purpose, major change, the spread of television." Another nice trick­ only a desire to introduce "efficiency" to defense planning. if the space program didn't happen, and the only beam tech­ McNamara's policies all operated under a strategic umbrella nologies in existence are cathode-ray'tubes, we certainly formed by the commitment to Mutually Assured Destruction. don't have to worryabout a revolution in war fightingcaused The new military reforms, like the New Yalta policy they are by the deployment of relativistic beam weapons in near-Earth attached to, are the logical extension of that MAD policy, space. Lind has assured us that "these revolutions occur very and have to be considered as a package, and judged by the seldom," and neglects to tell us why the military space pro­ strategic purpose that package is suited to. gram of the Soviet Union will not produce such a revolution. To avoid this issue, the authors make use of a style of The main areas of military technologicaldevelopment in argument which mines the rich vein of horror stories-at­ the postwar period are grouped around IIrelatively few signal tached to every program run under the McNamara system­ programs which have served as the driyers of larger broader and then present the reader with two mutually exclusive efforts in the military and civilian econ�my generally. These approaches to solve the problem, carefully reducing the caus­ are the NASA program, which in tum is the continuation of ality of the situation to the simplistic premises they have the Army Ballistic Missile program developed by Gen. Bruce constructed for the reader. They begin by reporting on a Medaris; the aeronautical and weapons,engineering feats ac­ variety of problems facing the Army, then assert that the wars complished by outfits such as the vaunted "Skunkworks" at which will be fought by the United States in the future will Lockheed (developed the U-2, SR-71, etc.), or the Navy's belimited wars (this emphatically excludes actual low-inten­ China Lake facility (Sidewinder missile, etc.); and the tre­ sity warfare , which the Soviet Union is currently deploying). mendous effort of Adm. Hyman Rick-over to develop the They close the circle with the remarkable assertion: "Because nuclear navy. our conventional forces are relatively ineffective, we have Each of these projects is characterited by the "crash pro­ adopted a doctrine of firstuse of nuclear weapons." You see, gram" approach (the weapons programs were not true "crash it is not the inherent fallacies of MAD which bedevil our programs," but did run as "black" programs, unconstrained military planners, it is rather that the deficiencies of our by the McNamara conditions), and provide the best recent officercorps forced McNamara and company to adopt MAD! examples of how to run roughshod over bureaucratic oppo-

EIR July 18, 1986 National 67 sition to progress. ,Gen. James Abrahamson originally pro­ So in the strange world of ilitary reform , we should aban­ "posedto use the SOlprogram in sllch a fashion, andthereby don aircraft carriers and n�lear� submarines because the So­ fe-e!ll1lhlishstandards ng ofe ineeringperformance cons istent viets have superseded the" by building aircraft carriers and withthe best traditionsof the U . S . military. Do oor reformers large nuclear submarines! I look to this possibility to junk the McNamara abuses? Not The Soviet naval strategy happens to be highly compe­ one word on the subject is to be found! tent, and as they move tneir strategic missile fleet out of R.ickover is given credit for his prowess as a master mil­ "European" territory and onto their submarines, they will itary engineer, Lind writes that this personality type is un­ make use of the large-scale offensive and anti-submarine " suited to modem, "maneuverwar, and it is precisely the warfare capabilities inherent in a carrier action group. Soviet ., ()ver�abundanceof engineers in the officercorps which inhib­ missile submarines will b¢ome no 'less deadly to troops in its tbe study of tbe " att of war. " The authors can barely Europe if the United State$' reduces itself to a coastal navy, contain their hatred for the rigorous thinking which charac- as Hartprop oses. Once agajn, Hart and company demand we terizes true military planning. , abandon the Europeanbatt lefield, and any of our allies who The authors are noted fortheir thesis which asserts that depend on our ability to cO�lDterSoviet strategic pressures. thereis a contradiction between " maneuver" and "firepower" Hart does propose to build standardized military/mer­ as strategies of war fighting (engineers favor the dull use of chant ships, which are necessary to revitalize our merchant "firepower," and eschew maneuver ,of course), yet they pres­ marine, and in an expandtng economy there is no conflict ent examples of military actions which show that there is no between this necessity andl our other strategic naval obliga­ such dichotomy in the mind of any successful commander. tions. But he again counterposesthe two issues, and demands " is .attack on theengineering bias among the officer corps, that we, accept his strategicigoal of confining our naval oper­ , " ', , Th andthe related criticismof diebigb ratioof officersto soldiers ations to the WesternHem �sphere . of the U.S. military, is an argument directed against the Thecr iticism of the AirlForce is based on a similarsleight classical American model of an "expandable army" devel­ of hand. The authors build bn argument which sees a conflict oped by Hamilton and Calhoun. between the air-intercept role ("dogfighting"), and interdic­ , As the founding of West Point as an engineering school tion bombing (the disruption of the enemy supply lines and shows, the American system is oriented toward creating a rear area by fighter-bombcis). The latter function is charac­ large base of trained military engineers who can be called teristic of an air war which is supporting the advance of large upon to lead the country in times of military-industrial mo­ land armies, such as wouldi occur in Europe . bilization. The large ratio of officers to soldiers in peacetime The authors dredge up i the usual anecdotes, drawing on is the precondition for any mobilization call-up of civilians the large stock of fiascos which have attended every high­ in time of crisis. In short, those aspects of the officer-corps technology weapons deveilopment effort conducted under structure which Luttwak and Lind abhor, are the sine qua "McNamara rules." Thes¢ electronic warfare devices are non of republican military reforms, as seen in both the Pros­ heavy and expensive, explain our authors, and would be sian and American examples! unnecessary if we confine; ourselves to intercepting enemy fighters in surprise attacks conducted in good weather. This, Criticisms of the Navy in turn, would allow us to iabandon the expense of research Gary Hart's criticisms of the Navy is about as valid as his into the margins of electroJilic battlefield technology, freeing officer's commission-both have been acquired for political our limited resourcesto build lots of light, cheap fighters . reasons. Nonetheless, he presents himself as somewhat of an Of course, these fighters would not be able to fly in the experton naval affairs , and has written extensively on naval overcast which characteriies European weather, and they , strategy. The gist of his argument, summarizedin this book, would also be unable to �netrate the dense electronically is that the aircraft carrier is no longer the "capital ship" of the sophisticated air defenses; of the Soviet armies, and they fleet, and has been superseded by the Soviet employment of would lack the heavy and expensive radars necessary to large numbers of submarines. Therefore , we must abandon counter cruise missiles, but these are European problems, the "too-expensive" aircraft carrier, and emulate the Soviets after all. And why should we worry if such a fighter is unus­ in constructing large numbers of relatively cheap subma­ able as a patrol aircraft over the Arctic wastes? It can't count­ rines. er the waves of cruise mis$iles carried by Soviet bombers in There is no gainsaying the awesome power of the Soviet the firstpla ce. submarine threat, but let's look at what the Soviet navy is This argument again ends at the unstated premises of the actuaily doing. First, they are embarked on a program of authors . Each of the weapons systems they propose is char­ building largeaircraft carriers of the type that Hartand Lind acteristically useless in Eutope, and designed to fight border recommend we forego. Second, the Soviets have recently wars in the Western hemiSphere. This is the strategic world introduced avery large missile-carrying submarine, the Os­ of New Yalta, it is the mililary philosophy of a nation which car �lass, which has no direct counterpart in the West, but is has abandoned its responsibilities as a global power. It is a of a type and size which Hartand Lind demand we abandon. prescription for surrender tp the Soviets.

68 National EIR July 18, 1986 Eye on Washington by Nicholas F. Benton

have totaled $328 billion in the last thing a "snake oil salesman" aroma. It four years-equal to an entire year's seems designed to Offer more in the defense spending. "Thus," he said, way of unfounded h

EIR July 18, 1986 National 69 NationalNews

"I have seen no evidence either within porters to task. "The bill's authors now claim the government, or in the public sector that that cut<> will go on, killing our citizens with would support the charges, " General cuts of one-third in domestic and social pro­ Congress out to Schweitzer wrote. "Whoever has the sup­ grams, and leaving us defenseless in the face posed evidence ought to bring it forward, of the Soviet threat with a 25% cut in de­ militarize border rather than repeat a series of old allega­ fense. No budget cuts or tax increases will In the name of fighting drugs and halting tions." ever give us what we need, which is a real immigration, u.s. congressmen are propos­ "You will note the original New York economic recovery from the present depres­ ing to deploy U.S. troops to the Mexican Times story is long on 'reports ,' but devoid sion. We need a national defense emergency border. of any evidence. Subsequent to publication mobilization, modeled on Frankin D. Rep. Eldon Rudd (R-Ariz.), a former of the New York Times story , I have sought Roosevelt's policies of 1939. FBI special agent, introduced a bill in mid­ again-thus far in vain-at the classified June which would allow the President to and unclassified levels, to locate any of the deploy military personnel and equipment to hard facts that would support the story," both the southern and northern borders , to Schweitzer wrote . "Maybe there is such evi­ stop the flow of illegal aliens, if Congress dence, but I have yet to see it." fails to enact the Simpson-Mazzoli immi­ Schweitzer's letter responded to an ar­ Hoffman charges fraud ticle appearing in the Washington Times on gration "reform" bill by year'send. The Rudd move to halt recount measure, which an aide admitted was di­ June 19, by Georgie Anne Geyer. Entitled rected chiefly at Mexico, has 16 co-spon­ "Five Minutes to Midnight in Panama," Attorneys for Art Hoffman, the "LaRouche sors . Geyer's article repeatedthe New York Times Demoqat" for Congress in California's 40th In a related move, Rep. Helen Bentley allegations against Noriega, claiming that a C.D., has filed suit in Orange County, Cal­ (R-Md.) introduced a bill June 19 that would "tragedy" was unfolding in Panama, "with iforniato halt the ongoing recount challenge cut off all aid to countries which fail to sub­ stakes . . . even higher than they were in mounted by his write-in opponent, Bruce stantially cut their illegal drug exports to the Cuba" in 1958. What is the danger? Says Sumner.Hoffman won his party's congres­ United States. Bentley has also sent letters Geyer, it is the signs of an alliance between sional primary June 3, beatingSumner, who toPresident Reagan and Vice-President Bush U.S. politician Lyndon LaRouche and Gen­ is the head of the Orange County Democrat­ urging them to deploy all National Guard eral Noriega-which now threatens "the ic Party. A disgruntled Sumner is contesting and Army Reserve units scheduled for sum­ Panama Canal and all the American military the victory . mer maneuvers, to the Mexican border for and intelligence-gathering units in Pana­ Sumner, a former judge, prematurely purposes of drug interdiction. ma," claimed victory Election Night. The next day, it, became clear that Sumner had lost the el€:ftion to Hoffman by 262 votes. The Demooratic chairman, having vowed to pre­ vent "ltlotherLaRouche victory," called for a recol\nt. u.s. general doubts Senate candidate: 'All of . HolIman campaign workers have gath­ ered evidence that shows that ballots which Noriega is corrupt Gramm-Rudman must go' were riowhere to be found Election Night "Hard facts" have yet to be produced which "The U. S. Supreme Courthas now declared have mysteriously begun to appear forSum­ support allegations that Panama's com­ the Gramm-Rudman budget-cutting law to ner. AI Olsen, Orange County's Registrar mander ofthe Defense Forces, Gen. Manuel be unconstitutional. But although the Su­ of Voters, not wanting to admit that an elec- Antonio Noriega, runs "the Panamanian preme Court was right to find Gramm-Rud­ . tion under his supervision could be tainted, connection" to international drug- and gun­ man unconstitutional, they have done so on has told reporters that the reason is that poll running, U.S. Army Gen. Robert Schweitz­ a very narrow basis, knocking out the auto­ workers did not count various spellings of er wrote, in a letter to the Washington Times matic-cuts mechanism, but leaving the rest Sumn�r's name election night. published on June 30. of Gramm Rudman intact. In reality all of Hoffman workers have gathered over 50 General Noriega had been accused by Gramm-Rudman is unconstitutional," said affidavits frompoll workers , many of them the New York Times' Seymour Hersh and in a statement issued by New York senatorial Sumner supporters , declaring that they did Senate hearings orchestrated by Sen. Jesse candidate Webster Tarpley on July 6. count all possible votes for the former judge Helms (R-N.C.). Tarpley, an EIR contributing editor, is within the legal guidelines provided them. Until his retirement on July 1, General running for the seat now held by Alfonse The p<)ll-worker affidavits aver that, there­ Schweitzer headed the Inter-American De­ D' Amato (R), whom he attacked for voting fore , they do not know where the additional fe nse Board , with many years of duty relat­ for Gramm-Rudman. votes now "turning up" in the recount could ed to the United States' southern flank. Tarpley took the bill's sponsors and sup- be coming from.

70 National EIR July 18, 1986 Bri,I jly

j • 20 ARMED MEN, members of a group known a$ Civilian Materiel In one precinct, the recount picked up Perhaps it is Senator Helms who should Assistance, seized 15 illegal aliens in four votes for Sumner. In another precinct be investigated for "corruption," he stated. Arizona near the Mexican border on which was not counted election night, poll "There are those that say" that Helms op­ July 5, and held diem at gunpoint for workers were called into the registrar's of­ poses any revision of the Treaties control­ 90 minutes until BIorderPatrol agents fice the day after the election to count the ling the Panama Canal, Delvalle reported, arrived, an immi*ation official said ballots in plain view of officials. This pre­ "because he has some type of contract here July 6. Harold E�ell, regional com­ cinct, the Hoffman suit reveals, had 20 new in the Canal Zone, that he would lose if the missioner of INS; criticized the ac­ votes for Sumner when it was counted dur­ Torrijos-Carter Canal Treaties were faith­ tion, calling it dangerous and "bi­ ing the recount. fully implemented." zarre." The U.S. Attorney's office is The mysterious appearance of new bal­ not filingcharges because none of the lots, combined with evidence of forgeries aliens were hurt, but the FBI is inves­ and violations of the secret ballot guide­ tigating the incidebt. All 20 men car­ lines, gave Hoffman 's attorneys no other ried AK-47 rifles.1 choice but to seek an injunction to halt the Lugar: U.S . will j recountand to call for a criminal investiga­ • HENRY KISSINGER was one tion. leave South Africa of 1 2 recipients o. the "Liberty Med­ Senate Foreign Relations Committee chair­ al" awarded by thb Statue of Liberty man Richard Lugar said July 7 that South Foundation duringjceremonieson July Africa is moving so slowly in dismantling 4. President Reagan presented the apartheid that political and economic pres­ award to the Soriet agent-of-influ­ sure is moving "toward our getting out. " ence who was onq:: secretary of state. Helms has business "The net political and economic situa­ The award goes t� 1 2 "distinguished tion is leading toward our getting out wheth­ American naturaUzed citizens" who dealings in Panama? er we have decided to do that formally or have "made the f\merican dream a The Presidentof Panama has suggested that not," said Mr. Lugar, a key player in the reality," according to the foundation. Sen. Jesse Helms, who has issued vitriolic review of U.S. policy toward South Africa. attacks on the head of the Panamanian army , "I think there is a basic decision to be • DON REG�, White House Gen. Manuel Antonio Noriega, may be doing made here, and that is whether the United chief of staff, may visit Moscow ac­ so to protect his own personal corruption . States will continue to be involved in affairs cording to source$ . His office denies Senator Helms should show "a little more in South Africa or whether, in fact, we are it. I judgment and sensibility" in his dealings with going to get out now ," Mr. Lugar said. i lbero-American countries, President Eric • A POLL co�missioned by Illi­ Delvalle warned in an interview with the nois Democratic jParty regulars but Mexican daily Excelsior on June 30. "The kept secret, has rpund that the "La­ only thing that he has succeeded in achiev­ Rouche factor" is strengthening the ing is anti-American sentiment in Mexico Colleges should Democratic ticket in the state. The and Panama." poll found a soli� 15-20% core vote Senator Helms's campaign against "cor­ stop drug use for LaRouche-af�liated candidates. ruption" in other countries has gone so far College presidents should show "a little Of voters whose ijttentionis to vote a this year, that he has charged that Mexico's courage" and make America's campuses straight Democratic line, most would currentgovernment is "illegitimate," and that drug-free starting in September, urged Ed­ not split the ticke� against LaRouche Panama's General Noriega, is ''the biggest ucation Secretary William J. Bennett on July Democrats Mark I Fairchild (lieuten­ drug-trafficker in the Western Hemi­ 9. He suggested that America's universities ant-governor) an4/l Janice Hart (sec­ sphere." learna lesson from from military academies retaryof state). �te Attorney-Gen­ This is "viewed as one more attempt" to that have kept out illicit drugs. eral Neal Hardiglm and Sen. Allan derail full implementation of the 1978 Cart­ "If necessary , you use the campus po­ Dixon commissi

EIR July 18, 1986 National 71 Editorial

'Where there is no vision, the people perish'

The death of Admiral Hyman Rickover, just after the "From the splitting of the atom in the I 930s to the Fourth of July festivities, gives us an appropriate oc­ bomb of the 1940s, to the practical nuclear power plant casion to celebrate the qualities which justly made this of 1953, a vast amount of intellectual effort of a high nation great. The colossal banality of the New York order had to be expended. Highly trained nuclear en­ City ceremonies, in which the traitor Henry Kissinger gineers are needed to design, build, and run nuclear was honored with a medal and the patriot Admiral Rick­ power plants. Still greater �emands on the human mind over forgotten, only emphasizes the need to remember will be made if and when v.ieobtain energy from hydro­ why this nation has been great. gen fu sion. Hyman Rickover was born in Russia in 1900, of "It is obvious that the �ind of American who thor­ Jewish parents. He came to America when he was six oughly mastered his envirQnment on the frontier in the yearsold , and he was educated in the public schools of muscle, wind, and water �ate of technology would be New York City and Chicago, and then secured an ap­ totally ineffective in the atctmic age which is just around pointment to the Naval Academy at Annapolis. He the comer, and the fusion tge which is still a way off." qualified as an electrical engineer, and served as a sub­ Rickover was a differert breed of man from Henry marinecommander in the 1930s. Kissinger, as shown by ttJis brief selection from his Following World War II, it was Rickover who de­ comments on Robert McNiamaraand his method: veloped the first nuclear reactor, which would be used "At one time Pagan gocilsruled the world ....Now to propel a submarine. it is the cost accountants. 'lthe cost effectiveness studies These days, when it takes as much as 15 years to have become a religion ..: . They are fog bombs .... build a nuclear plant (due, of course, to the sabotage of Frankly, I have no more faith in the ability of social the anti-nuclear lobby), it is hard to believe that Rick­ scientists to quantify military effectiveness than I do in over built the first nuclear reactor in less than four numerologists to calculateithe future .... years-and under far more stringent, real safety con­ "On a cost-effectiveness basis the colonists would ditions, since it would be housed in a submarine. The not have revolted against �ing George III, nor would contract was signed on July 15, 1949 and, by the end John Paul Jones have engaged the Serapis with the of May 1953, the Mark I reactor was finished. By June Bonhomme Richard, an inferior ship. The Greeks at 15 of that year,full power was successfully reached. Thermopylae and Salamis would not have stood up to Rickover's vision of a future in which nuclear fis­ the Persians had they had icost effectiveness people to sion was the transition to the cheap, unlimited resource advise them. . . . Computer logic would have advised of fusion power transforming the world, was put for­ the British to make terms With Hitler in 1940, a course ward in his book Education and Freedom, in 1959: that would have been disa$trous. " "Whenever man makes a major advance in his age Rickover's spirit is ex�plifiedby the Biblical mot­ old effort to utilize the forces of nature , he must simul­ to from Proverbs that alwlays hung on his office wall: taneously raise his education, his techniques, and his "Where there is no vision, the people perish. " We honor institutions to a higher plateau. Admiral Hyman Rickover�·His was a good life.

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