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Send check or money order CU .S. currency only) to: 21st Century Dept. E P.O. Box 16285 Washington, D.C. 20041 Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman Associate Editor: Susan Welsh From the Editor Managing Editors: John Sigerson, Ronald Kokindo Editorial Board: Melvin Klenetsky, Antony Papert. Gerald Rose. EdwardSpannaus. Nancy deas make history, and bad ideas have a nefarious effect on physi­ Spannaus. Webster Tarpley. Carol White. I Christopher White cal reality. This has been brought home by the networks being probed Science and Technology: Carol White in connection with the Oklahoma City terroristatrocity, which reveal Special Projects: Mark Burdman the frightful criminal insanity of the "anti-authoritarian" mind when Book Editor: Katherine Notley Advertising Director: Marsha Freeman it is directed against the very institution of the state. This is the Circulation Manager: Stanley Ezrol opposite of a political movement aimed at rooting out government INTELLIGENCE DIRECToRS: corruption or misconduct. Agriculture: Marcia Merry Asia and Africa: Linda de Hoyos As Lyndon LaRouche's article "Structures of Sin Still Rule the Counterintelligence: Jeffrey Steinberg. Nations," showed in last week's EIR, these same diseased ideas, Paul Goldstein Economics: Christopher White when peddled in the antiseptic world of academic economics, are as European Economics: William Engdahl murderous as a high-potency bomb in their impact on the millions of lbero-America: Robyn Quijano. Dennis Small Law: EdwardSpannaus people to whom the resultant economic policies are applied. A case Russia and Eastern Europe: in point is described in the article on p. reporting on a recent Rachel Douglas, Konstantin George 6, United States: Kathleen Klenetsky Vienna meeting of economists of "neo-liberal" stamp--aterm which INTERNATIONAL BUREAUS: in Europe and Thero-America means devotion to Adam Smith's Pakdee Tanapura. Sophie Tanapura Bangkok: "free-market" capitalism and hatred of the nation-state. Bogota: Jos� Restrepo Bonn: George Gregory. Rainer Apel This week' s Feature and several other articles in this issue high­ Buenos Aires: Gerardo Teran Copenhagen: Poul Rasmussen light the role of the banking fraternity'sInternational Monetary Fund Houston: Harley Schlanger in destroying the lives and hopes of nations. On the front lines of Lima: Sara Madueiio Mexico City: Hugo LOpez Ochoa combatting this veritable economic terrorism are the Schiller Institute Milan: Leonardo Servadio and other institutions inspired by the principle that all men and New Delhi: Susan Maitra Paris: Christine Bie"e women are created in the living image of God, which is the basis of Rio de Janeiro: Silvia Palacios Lyndon LaRouche's approach to the science of physical economy Stockholm: Michael Ericson Washington. D.C.: William Jones and to politics. Wiesbaden: Goran Haglund With delegations representing the LaRouche movement inter­ vening against the IMP' policies in Ukraine, Nigeria, and elsewhere EIR (ISSN 0273·6314) is published weekly (50 issues) 51 except for the second week of July. and the last week of around the world, it was not much of a surprise when the IMF December by EIR News Service Inc .• 317 Pennsylvania Ave .• S.E .• 2nd Floor. Washington. DC 20003. (202) took the outrageous step of revoking the press credentials of EIR 544·7010. For subscriptions: (703) 777-9451. correspondent Wiliam Jones, who was assigned to cover the annual European Headq""'*": Executive Intelligence Review NachrichtenagenlUr GmbH, Postfach 2308, D-65013 Wiesbaden, Otto von Guericke Ring 3, D-65205 meeting of the IMF in Washington. The IMF's press secretary told Wiesbaden, Federal Republic of Germany Tel: (6122) 9160. Executive Directors: Anno Hellenbroich, Jones that it is their policy never to allow anyone connected to Michael Liebig LaRouche to attend their meetings. When Jones called the police and In Denmarlc: EIR, Post Box 2613, 2100 Copenhagen 0E, Tel. 35-43 60 40 filed a complaint, the officer told him, "There were people here In Mexico: EIR, Francisco Dlaz Covarrubias 54 A·3 Colonia San Rafael, Mexico DF. Tel: 705-1295. passing out a leaflet.That's why they are so ticked off." See Econom­ Japan .Ilb.criplion .ales: O.T.O. Research Corporation, ics for Jones's report. Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208·7821.

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ITillContents

Interviews Reviews Economics

20 Natalya Vitrenko and 58 Unique view of Italian 4 IMF !demands more powers Vladimir Marchenko Renaissance painting in as financial chaos grows Ukrainian parliamentarians and Morgan Library exhibit But many officials at the leaders of the Socialist Party, Dr. "The Painted Page: Italian International Monetary Fund's Vitrenko and Mr. Marchenko are Renaissance Book Illumination, Interim Committee meeting saw members of the Parliament's 1450-1550," at the J.P. Morgan Banquo's ghost, in the form of a Committee on Economic Policy. Library in New York City. message from Lyndon LaRouche.

6 Beydnd von Hayek: Departments neoconservative anarchism Report from a conference of the Photo and graphic credits: Cover, 10 Dateline Mexico International Institute of Austrian pages 15, 32, EIRNS/Stuart K. Shock program takes its murderous Economics. Lewis. Page 28, Christian Huth. toll. Page 30, Christopher Lewis. Page 7 Schi ler Institute group 42 , Library of Congress/Prints and t warDS Nigeria on IMF Photographs Division. Page 44, 48 Report from Bonn EIRNS/Suzanne Klebe. Pages 59- A step closer to the truth . 61, Courtesy of the J.P. Morgan 8 German municipalities face Library . 49 Andean Report breakdown On the heels of the Cali Cartel . 9 Currency Rates 64 Editorial Irregular warfare: the name of the 11 Agriculture game. U. S. food stocks for emergencies are gone .

12 Business Briefs •

Volume 22, Number 19, May5, 1995

Feature International National

26 Great Britain unleashes 52 House of Windsor escalates global irregular warfare war against United States To understand the dastardly 28 French Presidential terrorist act in Oklahoma City , elections defy calculations don't look at the "lone assassins" of Paris nomenklatura being paraded about in the media, but focus instead on the patternof The victory of Lionel Jospin was a evidence showing who is surprise to all, and the crisis facing controlling the pawns and patsies. the country means that business-as­ The annual meeting of the International Monetary usual calculations no longer hold. Fund and World Bank in Washington, D.C. on April 55 British pawprints on 24. Managing Director Michel Carndessus is de­ Jacques Cheminade , the "surprise manding even greater dictatorial powers over nations candidate" and friend of Lyndon Oklahoma bombing like Ukraine. LaRouche, announces his plans to build a new political movement. 56 OSI targets more innocent 14 Schiller Institute thwarts people the IMF's plans in Ukraine 31 Kissinger offers Brazil a The Justice Department's Office of The Ukrainian Parliament is the hemispheric condominium Special Investigations, having scene of high drama these days, as botched its campaign against John the Kuchma governmenttries to 34 Scandal rocks Israel: Will Demjanjuk, is looking for more fish implement the International Sharon be hit? to fry . Monetary Fund's austerity demands, and parliamentarians 62 National News fight back. When the U.S. State 35 The unfolding of Russia's Department and the Schiller 'Great Criminal Institute arrived on the scene at the Revolution' same time, the fur really began to Part 2 of Roman Bessonov's fly . analysis of Chechnya, the Russian Sicily. 16 How the IMF's policies destroy the physical 38 'Human rights' protectors economy of nations play a double game EIR's Dennis Small's speech to a conference in Kiev, Ukraine. 43 Celebrate the victory over fascism, by destroying 20 IMF shock therapy is fascist policies today pushing Ukraine toward a Nancy Spannaus, president of the social explosion U.S. Club of Life , writes on the An interview with Natalya Vitrenko 50th anniversary of V-E Day . and Vladimir Marchenko. 50 International Intelligence �ITillEconolllics

IMF demands more 1?owers as financialchaos grpws

by William Jones

The semi-annual meeting of the International Monetary Fund hard in relation to the yen- the yen has appreciated more Interim Committee in Washington on April 21-27 occurred than 20% against the dollar sin¢e Jan 1 of this year- creating under the specter of increasing chaos in the world's exchange significant problems for Japan(!se exports in their traditional markets. This fact, although recognized by most of the parti­ Asian markets. Camdessus plaCed the blame for this develop­ cipants, including the finance ministers of the Group of Seven ment on the United States, demanding that the Federal Re­ (G-7) industrialized countries, was nevertheless downplayed serve Board raise interest rates. Aware of the devastating by many ofthe participants, perhaps in the hope that it simply effect of such a move on the U.S. economy, the Clinton would go away. Attempts by IMF Managing Director Michel administration has resisted suah pressures. Camdessus to "talk up" the world economic situation was At the same time, the Tteasury Department and Fed given a cold shower by the circulation at the meeting of a Chairman Alan Greenspan ha�e neglected to take any action thousand or so copies of a statement by U.S. economist to stop the fall of the dollar. S�me pro-British policymaking Lyndon LaRouche on the global financialcr isis, entitled "To institutions, such as C. Fred Bergsten's Institute for Interna­ Be or Not To Be" (see last week's EIR), distributed to dele­ tional Economics, are privately gleeful over this develop­ gates by LaRouche supporters outside the meeting. The IMF ment, because they blame the instability on the Japanese Directorate was so incensed by the distribution, that they trade surplus and see the sh.ft in the currency rates as a removed this author, an accredited Washington journalis� means of "forcing down" that �urplus-a rather risky line of assigned by EIR to cover the meeting. thinking, indeed, since such instabilities could easily bring In his statement, LaRouche notes the impossibility of down the entire financial system. Unfortunately, this line of "preventing both general financial collapse, and subsequent thinking was also reflected in the statements of Treasury global monetary and financialdisin tegration, unless the IMF Secretary Robert Rubin to the Interim Committee on April system and the central banking systems of all leading nations 26. "Japan needs to import more and to absorb more of its are placed under bankruptcy-reorganization measures by rel­ available savings," he said, "$0 that its external surplus ad­ evant leading governments." He also expresses grave con­ justs to a more sustainable level." cernabout the refusal of the world's governments, including the U.S. government, to deal effectively with the currency Takemura points at derivatives instability now wreaking havoc with the Japanese yen. "Ja­ Japanese Finance Minister Masayoshi Takemura had a pan's relations with the United States are of a very special different view of the cause of the present instability, pointing nature," LaRouche says. "A lack of adequate response to his fingerat the increasingly volatile derivatives markets. In Japan from Washington could set forth a chain-reaction of his statement to the Interim Committee on April 26, Take­ collapse of every vital U.S. policy-interest in East Asia, and mura said, "I have the impression that speculative and erratic beyond." elements of derivative trading; arising from the recent finan­ Leading up to the IMF meeting, currencies had been hit cial liberalization and technical innovations in the function­ by tremendous volatility. The dollar had fallen especially ing of the exchange markets may have aggravated the fluctu-

4 Economics EIR May 5, 1995 ations of the exchange rates. " tary institutions was a hot topic of discussion, both at the The obviously destabilizing effect of the derivatives mar­ IMF and at the G-7. Despite all the "upbeat" talk, it is difficult kets has led to ever-greater cries for regulation of the high­ to hide the fact that the Bretton Woods financial system is in risk derivatives trading, including an increasing number of an endgame scenario. The IMF, under firefor having "missed voices echoing LaRouche's call for a 0.1 % tax on deriva­ the boat" in failing to have "foreseen" the Mexican crisis, is tives. This, however, is a bitter pill to swallow for advocates demanding greater surveillance powers and more money. of the British "free trade" ideology, who continue to play Camdessus is calling on member countries to raise their IMP down the problem. British Chancellor of the Exchequer Ken­ quotas in order to vest the IMF with more dictatorial powers neth Clarke, at his press conference on April 26, when ques­ over the world's economies. "If we are to adapt the Fund to tioned about the role of derivatives trading in the collapse of the problems of the next century, we must think big, of what BaringsBank , claimed, "I don't believe that derivatives were kind of resources will be needed," he said. the cause of the Barings crisis, but rather a lack of internal However, not even Chancellor Clarke, otherwise a strong regulation. . . . Derivatives simply tend to speed up the im­ supporter of IMF policies, seemed willing to raise IMF quo­ pact of dangerous overexposure. ,� tas, a measure that would undoubtedly evoke a heated parlia­ The concernsof the Japanese were reflected in comments mentary debate. Camdessus is also into "self-criticism," by the French and the Germans, whose currencies have also claiming that the IMF has been too lenient in the implementa­ been effectively revalued in relation to the dollar. This con­ tion of its conditionalities! "We have a kind of tendency in cern was also reflected in the statement issued by the G-7 the Fund at times," he said in his April 24 press conference, finance ministers, who stated that "recent movements have "to give too much of the benefitof the doubt to our member gone beyond the levels justifiedby underlying economic con­ countries." Camdessus called for greater "frankness" and ditions in the major countries," and that "orderly reversal of "harshness" in dealing with recalcitrant member nations. On these [currency] movements is desirable. " this point, Clarke was in full agreement. Speaking todte Interim Committee on June 26, Clarke said, "I agreewiththe No agreement on a course of action Whittome Report's analysis," referring to a report on the But no indication was given by any of the countries as IMF's actions in the Mexican crisis, "that too oftenthe Fund to what steps should be taken to reverse these movements. has given undue weight to members' sensitivities and has Chancellor Clarke admitted that markets may have "over­ pulled its punches as a result." Ironically, Clarke has been reacted," but insisted that the markets themselves "will com­ praised for his call for reducing Third World debt, but he pensatefor that." made his point quite clear in his remarks to the InterimCom- . Emerging from Blair House with the other financeminis­ mittee. "Writing down debt to manageable levels increases tersdirectly after their meeting, Canadian Finance Minister the chances that the debtor countries will actually meet those Paul Martin was the only one willing to talk. "Currency payments," he said. rates have overshot," Martin said, using the term that several ministers would use to characterize the volatility. At the same IMF is part of the problem time, he said, "each country must do what it has to do." In Although lip-service is still being paid to the need for in­ other words, the ministers agreed to disagree. Martin himself creased IMF surveillance, there is growing awarenessthat the admitted as much, indicating that there was "no agreement world can no longer proceed as it has up until now. The funda­ on coordinated currency stabilization." mental instability created by the very IMF measures taken More importantly, Japanese Finance Minister Takemura through the years to "roll over" the ever-widening financial formally put forward his proposal for revamping the entire crisis is now endemic to the system itself. There is no more "floating exchange rate" system. In comments to the Japa­ "predictability," apart from the predictability of increasing nese press on April 25, Takemura said that he had proposed chaos, barring fundamental reform . And in such a reform,as "a mid- to long-term review of the current foreign exchange LaRouche has time and again pointed out, the IMF is definite­ rate system." He noted, however, that the response was mut­ ly a part of the problem, rather than part of the solution. ed. "I threw the ball only today," he said, "so everything is Although the G-7 finance ministers' statement seems to up to future discussion from now on." have papered over the intense policy fight going on behind In response to a question from this correspondent regard­ the scenes over what the post-Bretton Woods world will look ing the Takemura proposal, Treasury Secretary Rubin, at his like, with the rapid pace of economic collapse, it will quickly press conference on April 25 , simply remarked that he didn't "lose the name of action." The ball now is in the courtof the think he should "discuss specificswith respect to proposals." leaders of the G-7 when they meet in Halifax in June, and, He added, "But I will say, I don't think there is any significant more specifically, in the hands of President Bill Clinton. If level of support for eliminating the flexible [sic] exchange fundamental financial reform is to be implemented, it must rate system." be the United States and its allies in Europe and Asia that must However, the need for reforming the internationalmone- chart the way-not the bureaucrats of an anachronistic IMP.

EIR May 5, 1995 Economics 5 von Hayek, inspired by Austri� economic theorist Ludwig von Mises, had such a provocative affect on the social market economy grouping during the 1 �30s, that Alexander Rustow, Beyond von Hayek: one of the fathers of market economic policy in postwar Germany, had sarcastically demanded, in 1938 at a sympo­ sium in Paris, that one should "preserve Hayek and his teach­ neoconservative er von Mises in spirits and dijsplay them in a museum as the last remaining examples of a finally vanished species of anarchism liberal which is responsible for the current catastrophe." In view of the rubble heap leftbehind by the monetarist liberal­ by Rainer Apel ism of the Weimar period, exemplifiedby a Hjalmar Schacht or a Heinrich Bruning, people iike Rustow held free-market In the neo-liberal think-tanks, the battle has been raging for liberal theoreticians like Hayek:responsible for the post- 1933 months between "soft" and "hard" tendencies, with the latter catastrophe. (Chancellor Bruning's policies paved the way accusing the former of watering down the Conservative Rev­ for Hitler, while Schacht joined the Nazi governmentas eco- olution by making concessions to the social market econo­ nomics minister.) I mists. (The "soft" tendency includes most of the German Radnitzki referenced this conflict of 1938 in order to neo-liberals, such as Herbert Giersch and the late free-market clarify the irreconcilability of free-market liberalism with the guru Friedrich von Hayek himself.) The "hardliners" or, as social market economy, but also in order to explain that von they call themselves, "strict" free-market liberals, consider Hayek had not recognized thi� front-line position but had themselves as the only true Conservative Revolutionaries. indulged in illusions about th� nature of the welfare state. An insight can be gained into their thinking from the "We must concede that Hayek's theory of the social order conference held in mid-March by the International Institute and affirmationof liberalism remain imperfect, in many parts of Austrian Economics (IIAE) on the topic of "Hayek vs. show a lack of cohesion, and offer no effective defense Keynes, " counterposing the two most celebrated 20th-centu­ against the visions of the welfare state based on 'creeping ry schools of monetarist quackery: the one tied in with the socialism,' "said Radnitzki. German "right-wing" economist Friedrich von Hayek, the To the "soft liberalism" ofivon Hayek, one must count­ other with the British "leftist" John Maynard Keynes. erpose "strict liberalism" and upderstand this, above all else, Not only did Keynesianism come under heavy fire here, as an uncompromising "freedcj)m," the absence of external and thus to a certain degree, the "social democratic system," compulsion, said Radnitzki. Tbe politicians' calls for "social but even more so, the thinking of von Hayek himself. A justice" are indeed only raised in order to justify measures to whole series of speakers, including Gerard Radnitzki from limit individual freedom and to/violate one's inherent "ethic" Trier in Germany, who was presented as the spokesman for of a spontaneous impulse to acdumulate personal wealth, just the "strict" school of the Mont Pelerin Society which von to serve the supposed "ethic" of the welfare state. That would Hayek founded, claimed that von Hayek had sold his soul to be nothing other than socialisrq, expropriation, and suppres­ the "creeping socialism" ofthe social market economists, and sion of the actual "free mariqet" by the supposed "social that he was to blame for the compromises which conservative market," charged Radnitzki. All the western social systems politicians still make with electoral democracy today, years based upon this veiled socialiism have altogether curtailed after his death. individual freedoms, have no moral authority, and will col­ Antony de Jasay from London started the IIAE confer­ lapse, just like the undisguise� socialist system. The "state" ence by proclaiming that there are errors and serious inade­ and the artificial "people" of the traditional democracies will quacies in von Hayek's thought, that the "axe" which he be displaced by group intere* and spontaneously worked applied to the roots of the welf� state "lacked important out structures of cooperation-+-sort of the political counter­ parts," and that therefore he has only limited usefulness in part to the restored "freemarket ," explained Radnitzki, since today's debate. Von Hayek's failure in attempting to define the market can manage without rigid legal structures. Private the limits of the state has created a vacuum which others, agencies such as today's creditlbureaus would be completely invoking his authority, have filled with a"false conception sufficient,Radnitzki opined. (The unacknowledged model is of the state," he said. Benito Mussolini's corporate state, the cornerstone of This was the introduction to a debate which Radnitzki, Fascism.) with his speech "Man, Market, and State," took in a direction which could be summed up as: You talk about the Conserva­ Profiteers and speculators tive Revolution? I'll tell you what the Conservative Revolu­ The deep crisis of the wes�rn economic systems should tion really is! not be a cause for concern and for a call for an expanded Radnitzki acknowledged right off the bat that Friedrich state, continued Radnitzki, but are to be seen positively,'

6 Economics EIR May 5, 1995 The Democrat headline on April 24 for its page-one Schiller, Institutegroup storyon the visit read: "World Bank-IMP: Anti-Nigeria." The article reportedthat the Schiller Institute had warned warns Nigeria on IMF that the world economic system under the International Monetary Fund is at a "dead end." In paraphrase, the A delegation led by Godfrey Binaisa, former President Democrat said that the delegation pointedout that in face of Uganda, Lawrence Freeman of the Schiller Institute! of the collapse of important infrastructure and declining U. S.A. , and Uwe Friesecke of the Schiller Institute/Ger­ buying power of the majority of the world's population, many, has held a series of meetings with high-level offi­ particularly in the developingsector, a revivalof theworld cials in Abuja, Nigeria, andm ade calls for reorganiza­the economy is immediately required, and this can only be tion of the international monetarysystem for thep urposes done with major infrastructural development. They ob­ of economic reconstruction, EIRNS learnedon April 26. served that the economic potentialof Nigeria, with itsvast They were joined by NigeriansLawal Idriss andSennussi agricultural and mineral resources, is being strangled by Dagash. the present conditionalities of the IMP and World Bank, Thed elegation was received at the office oft he secre­ especially the demand that the economy be left to the tary to the federal government, Akhaji Aminu Saleh, on mercyo f free market forces. April 17. In the next days, Mr. Saleh organized a two­ Mr. Saleh nco firmed to the delegation that Nigeria hour seminar for the delegation with the director general is now at the IMP's mercy. "We opened our doors and for the foreign ministry , and representatives of the press windows to the IMP and now they are demanding we andthe c onstitutional conference, on theworld economic open our rooftops. This is becausethe focus ofour policy collapse and the outline for a new monetary system . The remains payment of the debt." delegation met separatel y with the ministers of industry, On April 25, the delegation gave a two-hour briefing commerce, and with the actingdirector general for foreign tothe economic intelligencecommittee of the government affairs. led by Prof. Samuel Aluko, who expressedhis gravecon­ The visitors received widespread TV coverage April cern over the attemptsto force the governmentinto further 17-18 , and their visit was featured in the Nigerian daily concessions to the IMF, through political pressure, in­ The Democrat and in theAhuja Mirror . cluding the attemptedcoup of March 1995.

since previous "mild" crises, such as the one under Margaret of the "information society" would do the rest; nothing more Thatcher in England in 1979, had not led to an actual rolling would be necessary in the "free market" of the future. Above back of the state and therewith to greater freedom. Deep all, Radnitzki concluded his speech, the defeat of the ostensi­ crises lead to a no-holds-barred competition among the bly unfree "spirit ofthe Ecole Polytechnique ," France's great states, and thereby back to the "freedom" of the market, and scientificin stitution founded at the close of the 18th century, especially also with the "information society," an element of and "the Europe of Delors," the concept of a Eurasian eco­ individual freedom in the acquisition of knowledge would be nomic recovery based on great infrastructural projects carried added, that would make superfluous even the present state­ out by governments as proposed by former European Com­ run school system in the West, said Radnitzki. He continued, mission head Jacques Delors, must be defeated. "Internationaltrade is a shining example of a nicely function­ Radnitzki got backup at the conference from Gregory ing 'anarchy,' for a spontaneous order, and therefore the Christiansen (University of California), a follower of the so­ markets stand outside the law. In all these cases, the state is called "Virginia School of Economics," which works with not needed, quite the opposite." the conservative insurgents around Republican Speaker of Thus Radnizki arrived at the kernel of his ideology, the the House Newt Gingrich (R-Ga.). Christiansen attacked the destructive "conservative anarchism," which seeks the down­ system of central banking and recommended a return to the fall of the state itself and everything pertaining to it. Thus system of "free banking" as it had allegedly existed in the it seems consistent that he demanded an end to all financial United States afterthe national bank was abolished between regulation and applauded the formation of financial oases (off­ 1838 and 1860, and the issuance of bank notes was leftto the shore banking) in the "legal no-man's land between the na­ discretion of the individual private banks. The historical fact, tion-states," thus championing the cause of speculation. It is that this very financial policy encouraged the secessionist also appropriate that Radnitzki intimated that the spread of movement in the southern states and paved the way for the spelling books, as was practiced in England in the early 19th Confederate secession and Civil War, went unmentioned by century, is enough for an educational system. The potential Christiansen.

EIR May 5, 1995 Economics 7 ' ' facilities. Right after German ification in 1990, these old municipal debts amounted to D 5 billion. Today they have risen to DM 7.5 billion. T German municipalities � New investments will be trangled While eastern municipalitie are rejecting their responsi­ face breakdown bility for these old debts, the rman Finance Ministry has now established the "Society £ r by Lothar Komp the Old Municipal Debt in Connection with the Currency onversion" as a debt collec­ tion agency. This would have d vastating consequences, es­ According to the German municipal finance report for 1995, pecially for the former industri centers in the east. Urgently German cities have to be prepared this year for "their most needed new investments woul be strangled. In the eastern severe financial test ever." For the third year in a row, tax German city of Schwedt, for e ample, the old debt (DM 70 revenues from local businesses will shrink, despite all the million) amounts to 50% of t e municipal yearly budget. talk about an ongoing "recovery. " For the very same reason, Cities such as Rostock (DM 41 million) , Leipzig (DM 480 social expenditures by municipalities, especially for unem­ million), and Magdeburg (DM 280 million) are in a similar ployment compensation, are sharply rising. Deindustrializa­ situation. tion and job cuts are taking their toll. Tax revenues from local b�siness are falling in western The reaction of German municipalities to their mounting cities, and are still at an extrem ly low level in the east. This financial problems is twofold. First, they have imposed in is no surprise, given the rapid eindustrialization in recent recent years more and more fees and charges, both on house­ years: Today the share of outp of eastern German states is holds and industry. Fees for waste water and waste disposal less than 5% for machine buildi g, less than 4% for electrical have seen dramatic increases. Second, despite a large backlog engineering, and less than 2% £ chemicals. In order to make in infrastructure investment, construction outlays by munici­ up for these revenue losses, mu icipalities are increasing fees palities will be further reduced. In 1993, they spent DM 45 and charges, this year by anoth 6% . The main factors here, billion (roughly $25 billion) for construction; in 1994, it was however, are the exploding cos�for waste and waste water DM 41 billion. This year it will be only DM 38 billion. But disposal, because of the onerou environmental regulations. still the majority ofthe bigger German cities, especially in the Since 1985, expenditures of Ge an municipalities for these west, will face huge budget deficits in 1995. The conse­ categories have increased by 15[2% ! quences are obvious: decay of transportation and other infra­ Even more stringent waste water environmental regula­ structure, even higher social expenditures next year, reduc­ tions are now in preparation by [the German Ministry for the tion in household's purchasing power, and more debt. Environment, which, according to the association of German In 1995, German municipalities will spend DM 60 bil­ lion for welfare payments. A large part of this will be for people who have run out of federal unemployment benefits. FIGURE 1 Today , far more than 2 million households are completely Public debt in Germany s new states, 1991-93 on payments from municipal social institutions. 1 dependent (without "old debt," billions of deuts hemarkS) Almost 5 million persons are receiving welfare payments, at f least temporarily. After an increase this year of 8%, this 32 area of municipal budgets is showing the fastest growth. 28 Personnel costs were reduced by drastic job cuts. Municipal administrations in the eastern states alone have eliminated 24 112,000 out of 657,000 jobs from mid-1993 to mid- 1994. 20 Thousands of nursery schools in the east are being privatized or dissolved due to the expectation that easternstates will see 16 a dramatic decline in the number of children between the 12 ages of three and six-from 600,000 in 1991, to 215,000 in 1999. 8 In addition to the effects of deindustrialization, the east­ 4 ern German municipalities are obliged this year to begin o payments on "old debts" (Figure 1). These debts had been 1991 1992 1993 1991 1992 1993 imposed arbitrarily on eastern municipalities by the former Municipalities States communist regime, and are related to real estate such as i nursery and other schools, cultural institutions, and sports Sources: German Association of Cities, &IR.

8 Economics EIR May 5, 1995 municipalities, cannot be justified on environmental grounds. The regulations will ultimately surpass the financial urr capabilities of municipalities to meet them, and will lead to C ency Rates dramatic price increases for water usage-an expected sever­ al deutschemark increase per cubic meter for both households The dollar in deutschemarks and industry. New York late afternoonfixing The financial disaster will have catastrophic consquences for municipalities' budgets for construction investments. In 1.70 total, municipal construction investments will fall by 5.6%. 1.60 In western Germany, there will be a reduction of 7. 1 % . According to construction industry association estimates, I.SO many westerncitie s plan even greater reductions: Frankfurt,

-19.8%; Braunschweig, - 17.0%; Cologne, -15.3%; Kar­ 1.40 .- .-...... - - ...... slruhe, -15.3%; Stuttgart, -14.8%; Hanover, -12%. � In February 1995, Friedrich Hassbach, the director of 1.30 the German construction industry association, warned at a 3/8 3IlS 3122 3129 4IS 4112 4119 meeting in Bonn that "never before in the history of the The dollar in yen Federal Republic has the public financialmaneuvering room New York late afternoon fixing been so tiny." He noted that since 1992, public infrastructure

investments are shrinking; public construction investments, 120 if price inflation is taken into account, have fallen below the

level of the mid-1960s; and this will soon lead to shortages 110 in infrastructure equipment. 100 Cuts will not improve finances Apart from construction, many municipalities are plan­ 90 0.-. '-- ning drastic cuts in services this year. According to a poll by ...... so ...... the German municipal association, 56% will reduce outlays 3/8 3/1S 3122 3129 4IS 4112 4119 4126 for roadmaintenanc e, 38% will restrict street lighting, 59% will reduce energy consumption in public buildings, 46% The British pound in dollars will cut expenditures for school learning aids, 25% will cut New York late afternoonfixing school transport, 24% will reduce theater and opera events, 41% will cut expenditures for libraries, 20% will close librar­ 1.80 ies, and 33% will at least temporarily close public baths. 1.70 But all that cost-cutting and fee collection will not improve municipal finances. In 1995, most of the big westernGerman 1.60 - .- - - cities will still have huge budget deficits, such as Essen V - (DM 478 million), Diisseldorf (DM 282 million), Bochum I.SO . (DM 177 million), Mainz (DM 148 million), and Hanover (DM 141 million). 1.40 The financial crisis of the Federal Republic, states, and 3/8 31lS 3122 3129 4IS 4112 4119 municipalities has reached dangerous dimensions. It is al­ The dollar in Swiss francs ready threatening the German Unity Transport Projects, in­ New York late afternoon fixing cluding investments of DM 230 billion into railways and DM 210 billion into highway modernization. In addition, I.S0 there is a huge backlog in waste water infrastructure invest­

ments-up to DM 300 billion, about 50% of this alone in the 1.40 east. Another DM 200 billion will be required in the years ahead for waste-processing plants, in order to keep up with 1.30 new environmental laws. Unless, there is a fundamental break with liberal dogmas 1.20 of infrastructure financing and "third wave" service sector � -- ...... 1.10 � r- utopias, formerly rich German municipalities will be turned � 3/11 3/15 3/22 3/29 4/5 into wastelands. 4112 4/19 4126

EIR May 5, 1995 Economics 9 DatelineMexico hyHugoL6pezOchoa

Shock program takes its murderous toll In the firsttwo months of this year Timidly, the government has called for controlling speculative alone, 753,000 workers lost their capital, but it continues to support the free market. jobs, accorqing to the government's national statistical agency. This re­ presents 65.?% of the 1,149,100 peo­ ple laid off in all of 1994. We are talking, then, about a total of 1,902,100 people who don't even ' work one hOur a day. If we consider If the world perceives that our resorted to severe credit restriction as that 3.5 pedple depend on each one country is in shambles, it is mistak­ a means of halting the exchange of of those wotkers, then there are 10.4 en," Mexican President Ernesto Zed­ pesos for dollars. Since December million MeXlicans who have absolute­ illo told Business Week magazine at 1994, monetary circulation has fallen ly no means of supporting them­ the end of March. From Copenhagen by 12.8%; but internal credit of the selves, out �f a total population of to Jerusalem, from Washington, D.C. Bank of Mexico, according to its almost 90 million. to Dallas, Texas, President Zedillo as quarterly report, has plunged by Even prior to the release of these well as Foreign Secretary Jose Angel 145%. figures, the Mexican Workers Con­ Gurria and Finance Minister Guiller­ The rise in interest rates is the federation (CTM) reported a total of mo Ortiz have desperately delivered highest since 1987, reaching the as­ 8 million unemployed, including of­ the same message: The Mexican debt tronomical level of 120% before sta­ ficially recognized as well as "hid­ crisis which exploded on Dec. 20, bilizing at between 90% and 99%. den" unemployed. Numerous other 1994 is in the process of being "re­ The 50% increase in the Value Added studies report that 44% of all Mexi­ versed." Tax (VAT), from 10% to 15%, led cans live below the poverty line. But reality is otherwise. to a 30% fall in retail sales and an 80% The deep economic depression al­ Thanks to the approximately $40 drop in industrial sales immediately ready brought on by the IMF program billion financial rescue package of­ following its imposition. The Mexi­ will cause a liropin the Gross Domes­ fered to Mexico, a substantial portion can Association of Machinery Dis­ tic Product (jlfabout 5.1 %, according of which came from the United tributors reports that sales in this area to Banco de ;Comercio estimates. The States, at least $14 billion has been have dropped to zero for the firstquar­ Mexican Banking Association reports paid to holders of short-term treasury ter of the year. that loan d<¥aults have increased by notes, tesobonos ($16 billion remains So far this year, inflation stands 45%, from a value of $5.1 billion in to be paid this year), and for the mo­ at 26.2%, and according to official December 1994 to a value of $11. 9 ment the peso has stabilized at about figures will reach between 42% and billion at present. This means that six to the dollar. But the destruction 56% for the year. But any citizen who banks' expo�ure relative to their loan of the physical economy resulting shops at the local market knows that portfolios has gone well beyond 12%, from the International Monetary in many cases the rate of inflationhas although in reality, that exposure is Fund's shock program has left the already reached 100%. Add to this now 100%, �iven the insane increase country on the brink of social up­ the generalized increase of 31% in all in interest rates by almost 900%. heaval. public utility rates, and the planned Add to jill of this, the economic The program's main goal is to privatization of remaining state-sec­ devastation prought about in the state achieve a trade surplus in the first six tor companies, excluding-for the of Chiapas by the actions of the narco­ months of the year. This is being done moment-the state oil firm, Pemex. terrorist ZaPatista National Liberation because of the brutal drop in imports The purchasing power of the mini­ Army (EZ�N), and a terrible two­ which followed the peso devaluation, mum wage isn't frozen-it is de­ year-long d�ught which has afflicted and because of other measures de­ stroyed. Its value in dollars dropped the central aIIld northern plains states, scribed below, but not because of any by 40. 1 % to become one ofthe lowest especially Chihuahua, Durango, significant increase in exports. in the world: an average of $2.69 a Coahuila, and Nuevo Leon. Six Because there are insufficientfor­ day. Even the price of the tortilla, a states-Sonora, Chihuahua, Jalisco, eign reserves in the central b�mk, the staple of the Mexican diet, rose by Baja Califotnia, Quintana Roo, and Bank of Mexico, the government has 26%. Chiapas-are on the verge of default.

10 Economics EIR May 5, 1995 Agriculture by Marcia MerryBaker

u. S. food stocks for emergencies are gone According to the combined data The worldwide financial breakdown is evident in low grain from the F AO and the International Wheat Council, world grain harvests harvests and fo od reserves . and stocks are headed for new lows, relative to the current level of annual consumption (which is itself too low). On April 24, the head of the U.N. food relief; last year, $114.8 million Total world output of all kinds (wheat Food and Agriculture Organization worth was donated. This year, the to­ and small grains, com and coarse (FAO) in Rome, Jacques Diouf, tal will be $11 million worth; with grains, and rice) for 1994-95 is fore­ warned of the world's low food aid nothing from now on. Under Public cast at 1,916 mmt, when over 3,000 provisions, and the world's low har­ Law 480 (the "Food for Peace" act of mmt are required to provide everyone vests. Although the FAO, like other 1954), Congress may authorize funds with a decent diet. U.N. agencies, is no friend of man­ to purchase food, which is then do­ Wheat harvests are especially kind, the warning is more than in nated, but this too is dropping. low. U.S. and Ibero-American crops order. Look at the picture in tonnage are down, Australian and South Afri­ In the United States, the world's terms. Earlier this year, U.S. aid of­ can harvests are severely hit by largest food donor nation, there are ficials informedthe World Food Pro­ drought, and the Russian crop is now no government-owned surplus gram and others that the United States down. The InternationalWheat Coun­ food stocks for either foreign or do­ would cut its pledged tonnage of cil forecasts a world wheat harvestfor mestic food relief, for either emergen­ grains for aid this year from 4.47 mil­ 1994-95 of 526 mmt, and it could be cies or for "discretionary" donation. lion tons , down to 2.5 million tons. lower. Compare that to 593 mmt in This is the first time that there have On April 7 , U. S. Agency for Inter­ 1990-91; some 547 mmt in 1991-92; been no such stocks since the years national Development (AID) director about 566 mmt in 1992-93; and 565 immediately following World War II. Brian Atwood informed the White mmt in 1993-94. Thus, world wheat Under a 1949 agriculture law House and State Department that no stocks are falling to their lowest level known as "Section 416" (amended in stocks or funds exist. "If we get hit in years-an estimated 105 mmt. Oth­ the 1985 farm law as "416 B"), gov­ with another massive flow of refu­ er staples are similarly low. ernment-owned surplus commodities gees, or another civil rights conflict This year's world grain harvests (wheat flour, grain sorghum, butter breaks out, another national disaster, are forecast to come in so low that oil, cornmeal, etc.) have been donated we're going to find we don't have the even the FAO statisticians, who rou­ internationally from time to time for food," he said. tinely understate the lack of food, emergency food relief, and donated Earlier in the week, FAD Director warn that total world grain "carry­ domestically to institutions, the General Diouf met with Atwood in over" stocks, as a percentage of annu­ school lunch program, and poor fami­ Washington on the cuts in aid. There al average consumption, is below the lies as "bonus commodities." No is now talk at the FAO of holding a FAO's "danger threshold" of 17%. stocks exist now. world food summit on food security This ratio was alreadydown to the 18- As of 1992-93, all wheat flourfor next year in Rome. 21 % level over the past fiveyears , but U. S. "bonus commodity" distribution On April 24, in Rome, Diouf now is plunging further. had to be discontinued, causing hard­ briefed the FAO Committee on World The falling harvests and stocks re­ ship to many financially strapped Food Security on the drop in food aid flect decades of lack of installation school districts. Cornmeal and butter volumes. He said that "total cereal and maintenance of agricuitural infra­ oil donations continued, until those food aid committed for 1994-95, for structure-land improvements, water stocks, too, ran out. There is still some . example, is estimated at less than 10 systems, farm machinery, food pres­ milk powder, but this is not common­ million (metric) tons for the firsttime ervation systems. In former food bas­ ly used in foreign emergency assis­ in more than a decade ." In 1992-93, ket regions, family farmers have been tance. total cereals food aid distributed inter­ shut down, replaced with nothing or Therefore, the foreign aid statis­ nationally amounted to 15.2 million with a few "factory" farms run by the tics show that, under Section 416 B, metric tons (mmt). Since then, the food cartel companies. In Africa, the in 1993, surplus food stocks worth need has increased, but the provisions degradation of agriculture has reached $639.7 million were used for foreign have declined. the point of genocide.

EIR May 5, 1995 Economics 11 BusinessBrief s

Aerospace interest rate of 1.8%, bringing Japan's total has already invested $3 billion in foreignand yen loans to Vietnam to 165.6 billion ($2.01 domestic fuddsin building up infrastructureto South Korea, China agree billion). About 17.1 billion yen of the loan will develop its l1uge natural gas reserves, and he on joint production . go for the firstphase of construction of a ther­ called uponIndia to assess possibilities of par­ moelectric power plant in southern Vietnam; ticipating in · 32 projects, which he unfolded other projects include rebuilding highways beforeindus tyrepre sentatives at a meeting or­ South Korea and China have agreed to jointly and railway bridges. ganized by the Confederation ofIndian Indus­ produce mid-sized passenger airplanes, an of­ try in New Qelhi. ficialat Seoul's InternationalTrade and Indus­ tryMinistry said on April 23 , afiernegotiations between governmentofficials from both coun­ CentralAsia tries,Reuters reported. Debt Under the agreement, a South Koreancon­ Turkmenistan, Iran, I sortium, led by Samsung Aerospace Industries Nigeri urges relief Ltd. and the state-run Aviation Industry of India boost cooperation ab China, would select a foreign partner from for developing nations U . S. and European firms to provide state-of­ I Turkmenistan Foreign Minister Boris Shik­ the-arttechnology that Seoul and Beijing lack. hmuradov announced during a visit to India in Nigerian Foteign Minister Tom Ikimi called The partner would be allowed to take up third April that his country is planning a gas pipeline for at least 70%of the debt of developing coun­ to 20% of the equity in the project to produce project extending through Afghanistan, Paki­ tries,especi�ly Africa, to bewritten off, Reu­ 100-seataircraft . Boeing of the United States, stan, and India, continuing to the Far East to ters reportedj on April 13. France's Aerospatiale, and Daimler Benz Japan. Shikhmuradov said India and Turk­ Ikimisai�thatnearly halfofNigeria'sdebt Aerospace of Ge y will be considered. rman menistan are "strategic partners ," following was "aresultpf interestrate charges, the recap­ The ministry last year said that the South the signing of a tripartite agreement on April italization of interest arrears, anddebtresched­ Korean consortium would have to invest $1.2 18 by India, Iran, and Turkmenistan for in­ uling," as OpPOsed to debt incurredin order to billion by 1998 to develop the aircraft. creasing trade and cooperation. boost produqtion. According to the agreement, Turkmenis­ Ikimi sa¥l the capacity of Nigeria to play tan will open up the "Silk Route" to India a necessary l�adership rolein Africadepended through the Persian Gulf, instead of the tradi­ upon its economy: "It must be understood that Nuclear Energy tional route through the Khyber Pass. The Per­ the well-beiJllg of Nigeria lessens the burden sian Gulf route is shorterand doesnot involve of the international community toward Afri­ Vietnam needs nuclear to Afghanistan and Pakistan. Iran has offered a ca-a respo'-sibilitywhich we have willingly new land route through its territory for Indian shouldered since 1960." develop, says official goodsin transit to Central Asia, and has urged greater bilateral cooperation inoil, natural gas, DoMuoi, general secretaryof the Communist and petrochemical products. Iran , which ' Party of Vietnam, said in an interview with signed six memorandums of understanding Medicine South Korea's Yonhap news agency that "for with India, has set up four new ports to facili­ national industrialization to be materialized, tate trade . Iranian President Ali Akbar Ha­ Adult human brain Vietnam needs nuclear energy." Reuters re­ shemi Rafsanjani also expressedIra n's desire portedthe comments based on their release by to deepencooperation inscience and technolo­ could renew itself the official Vietnam News Agency on April gy and partakeof India's expertise. I 17. The proposed new route will take Indian Dr. Steven Goldman at Cornell University Muoi said that South Korea and other goods by sea from Bombay to Iran 's southern Medical Co'ege has discovered that the hu­ countries, which were unidentified, have "ex­ port of Bandar Abbas, and then overland, by man adult brain harbors precursor neurons pressed their preparedness to help Vietnam road or rail, to Central Asia. The route runs (nerve cells)\ vestiges of embryonic develop­ build a nuclear power plant." Muoi, during his through Sirzan, Karamex, Firdaus, and Ma­ ment, whicl1 can be made to divide in tissue first visit to Seoul, said experts could soon shad in Iran , to Sarrak on the Turkmenistan culture, if properly stimulated, he told 218t study possible cooperationin the nuclear field. border. Century Sci4nce & Technology magazine on Meanwhile, Muoi signed an agreement Shikhmuradov said Pakistan has agreed to April 18. Althoughthe current understanding with Japan on April 18 for a 58 billion yen loan extend the gas pipeline to India through Paki­ of what signlUs trigger these cells to divide is ($707 million) , which is earmarked for eight stan, which will also deliver gas to Pakistan. very crude, �. Goldman envisions that within infrastructure projects. The loan is for 30 A similar pipeline will supply liquid fuel to a decade or 1Iwo, clinically it may be possible years, with a lO-yeargrace period, atan annual Europe. Shikhmuradov said Turkmenistan to pharmacologically induce neurogenesis to

12 Economics EIR May 5, 1995 2 BriljIy

• ISRAELI Foreign Minister Shi­ mon Peres arrived in Amman, Jordan on April 24 for a seminar on a multi­ billion-dollar plan to develop the Rift marks . DASA reported aloss ofDM 438 mil­ guide and enhance the survival and migration Valley, Reuters reported. "It is a seri­ lion for 1994, after 16,000jobs were cut and of just-divided neurons to replaceareas of the ous attempt to engage the private sec­ six DASA factories closed down. brain which have suffered damage . This tor" of the United States, Israel, and would provide the basis for long-termreha bili­ Jordan, a Jordanian official said. tationand recovery of functions destroyed by acute brain trauma or diseases such as Parkin­ • CHINA is using Russian govern­ son's and Alzheimer's disease. ment loans for nuclear power plants, Medically, it has long been held that the according to an article entitled "Li­ adult human brain, once damaged by disease Finance aoning Imports Russian Capital to or trauma, cannot repair itself, because nerve Develop Nuclear Energy" in Ta Kung cells cannot be made to divide beyond the em­ Japanese industrialist Po, a pro-Beijing paper in Hong­ bryonic phase. kong . The acting governor of Liaon­ Goldman reported that researchers are warns of global crisis ing province was quoted saying that now workingon techniques that will transform they have made use of $ 1.2 billion in the careof acute brain trauma patients , so that Tadahiro Sekimoto, chairman of the Japanese Russian loans. more of the brain will survive the immediate Nippon Electric Co. (NEC), wamed on April trauma, providing a better basis for long-term 19 that the Group of Seven nations "must take • DONORS have agreed to finance rehabilitation. measures immediately to modify the floating the cash-strapped Palestinian Au­ This work is expectedto provide an alter­ rate currencysystem . . . along with other ma­ thority's 1995 budget deficit, and native to the use of fetal brain tissue trans­ jor actions," or "we are likely to experience a have reportedly pledged to cover last plants, and stands in marked contrast to the financial crisis on a global scale." Sekimoto, year's remaining deficit, Reuters re­ eugenics approach toward coma patients suf­ who is also the vice chairman of Keidanren, ported on April 15. Last yearthe au­ fering from acute brain trauma. Japan's leading industrial association, issued thority received $238 million out of a statement to the press intended to convey the $820 million pledged. concerns of Japan's elite. NEC is Japan's largest manufacturer of electronicequipment. • INDIA AND IRAN are dis­ Currencies Sekimoto sharply attacked currency spec­ cussing a pipeline to supply India ulators. The fall of the dollar "is the result of with Iranian gas. Iranian Foreign European aerospace hit a money game beingplayed by fund managers Minister Ali Akber Velayeti told the and currency speculators simply for their own Iranian News Agency in New Delhi hard by dollar fall profits," he said. He pointed out that entire na­ that the two nations would share the tions have been forced into dumping the dollar cost of "a fe asibility study" for a $5 The Europeanaerospace industry "risks disap­ to buy yen, to salvage the value of their foreign billion, 2,200 km pipeline , the Lon­ pearance," becauseof the collapse in the value currency reserves. Since this involves dollar don-based Arabic Al-Hayat reported of the dollar, Louis Gallois, director of the sales in the hundredsof billions, it is a process on April 20. Frenchfirm Aero Spatiale, said in an interview which, if not halted, would quickly lead to the inthe FrenchdailyLeFi garo on April 19. 'The sort of Weimar financial mudslide predicted • CHILE is facing a strikeof 8 ,000 current value of the dollar is giving an unde­ by U . S. economist Lyndon LaRouche. state hospital doctors, their second in served and destructiveadvantage to the aero­ Meanwhile, most of Japan's cabinet now less than a month, who are de­ space industry situated in the dollarzone ," he questions the floatingrate currencysystem. On manding a 50% wage hike . Most earn said. April 21 , Japanese Finance Minister Masayos­ under $1,000 a month. Earlier, a While correct that currency fluctuations hi Takemura repeated his call (first made on strike in Santiago, the capital, shut are destroyingindustry, Galloisoffered no so­ April 10 and then characterized as a personal down 90% of the city's bakeries. lutions. He backed up the InternationalMone­ comment by the Japanese Finance Ministry) Teachers were also expected to begin tary Fund, calling for pressureon the United for "rethinking" the floatingrate currency sys­ an indefinite strike. States to balance its budget and lower its debt. tem, Japanese officialsources confirmed. On Jiirgen Schrempp, the head of Daimler April 20, the source said that Prime Minister • CHECHNYA is facing the immi­ BenzAerospa ce, said that if the dollar remains Tomiichi Murayama, Ministryof Internation­ nent outbreak of typhus because of at less than 1.40 deutschemarks, another 10- al Trade and Industry Minister Ryutaro Hashi­ the prevalence of body lice, the chief 20,000 high-technology jobs will be cut in moto, and Bank of Japan chiefYasuo Matsus­ disease control officer of Badakshan DASA's German operations and transferred hita all agreed in hearings of the Japanese has warned Red Cross officials. Hos­ into dollar-rone countries. He said two-thirds Lower House Budget Committee that "some­ pitals are short of soap, heating fuel, ofDASA's business is denominated in dollars, thing must be done" to stop the chaos in the medicine, food, and other essentials. calculated on the basis of the dollar at 1.60 currency markets .

EIR May 5, 1995 Economics 13 , TIillFeature

I Schiller InsUtute

thwarts theIMF i 's plans in Ukraine ,

by Karl-Michael Vitt and Susap Wels� ." . '. -, "' ". �. ��. : .

International Monetary Fund Managing Director Mi�hel Camdessus told the IMF annual meeting in Washington on April 24 that thF Fund must stop giving its member nations "the benefit of the doubt," and must $hift to an even more draconi­ an policy in order "to convince them to take the harsh!steps they need" (see article, p. 4). Among the many nations whose economies are being destroyed by IMF austerity programs, Ukraine is one where Camdessu$'s "No More Mr. Nice Guy" threat is sure to send out political shock waves. I On April 12, as EIR has reported, the Parliament ffUkraine rejected the IMF's demand for sweeping privatization of state-owned enterprises, a central element of the "reform" package put forward by the Fund. Parliamentarian and economist Dr. Natalya Vitrenko, chairman of a subcommittee of the Parliament's Commis­ sion on Economic Policy, was among the chief opp�nents of the measure, as the Wall Street Journalreported the next day. You will 6nd in the following Feature an interview with her and fellow parliamentarian V�adimir Marchenko, in which they mince no words describing the effect that the, IMF's policies have had on Ukraine's economy. As Mr. Marchenko stresses, the economic crisis has reached

the point where a social explosion of potentially devastatingI consequences be- comes a real possibility. Vitrenko and Marchenko had been hosted by the lSchiller Institute for a visit to Washington at the end of March; they attended a! conference of the institute, keynoted by Lyndon H. LaRouche, and met with Washington policymakers to brief them on the current situation in their country .• In return, a delegation from the Schiller Institute visited Ukraine in April.

Inflation and industrial decline Ukraine is sinking deeper and deeper into econQlnic depression. The national currency, the karbovanets, has been devoured by inflrtion; it can now only be com­ pared to the infamous German reichsmark of 1923 i which was carried around in ' wheelbarrows to buy a loaf of bread. One U.S. dollar !,:anbe exchanged for 140,000

14 Feature EIR May 5, 1995 •

\'0.Q ' ,t Ukrainian President Leonid Kuchma (left), and Ukrainian parliamentarians Vladimir Marchenko and Dr. Natalya Vitrenko. Kuchma's supportfor the International Monetary Fund' s austerityprogram is being countered by parliamentarians who see their nation being destroyed almost overnight.

coupons.Meanwhile, the Russian ruble,which stands at 5009: 1 ar who set into motion the criminal revolution in Russia with to the dollar, is viewed in Ukraine as a "hard currency. " his IMF-dictated "reforms" starting in January 1992, as the Even the modem factories are idled, because wages have head of the Moscow government and finance minister. This not been paid for months. The wages themselves in many conference was co-sponsored by the German ruling Christian cases are below the level of subsistence. People on pensions Democratic Union party's Hanns Seidel Foundation. have been reduced to $7 a month for their livelihood, which The sponsors of the second conference were the Universi­ leaves nothing for rent and electricity. ty of Indiana and the U.S. State Department's Agency for Since the outset of 1995 , the IMF-ordered privatization InternationalDevelopment (AID). The topic was the division has been moving ahead. Every citizen has obtained a share of power between the Legislative and Executive branches in worth $10 and is wooed to cede it over to one of many funds, times of social and economic crisis. Two former officialsof which seek to earnprivate property with it. Organized crime the U.S. Department of Justice, from the time of the Reagan­ is heavily mixed up with these funds, as is international Bush administration, were principally responsible for play­ speculative capital from the likes of George Soros and other ing the role of "thought police" at this affair. Among the derivatives privateers. The "Great Criminal Revolution" of audience were 60 or so national legislators, governmentof­ Russia is also afoot in Ukraine. Strong opposition to this has ficials, and scholars . Some American professors trumpeted been making itself felt in the Parliament, which is outspoken the "historic transition phase" of the recent past in countries in its mistrust of the government. like Chile, Spain, and France, as a model for Ukraine. In The IMF pressure on Ukraine, and its Parliament, is very particular, the supposedly highly successful "transition from intense. The same Parliament that voted down the privatiza­ dictatorship to democracy" in Chile under General Pinochet tion package on April 12, a few days before had approved was praised to the skies. the 1995 budget of President Leonid Kuchma, an austerity Since it was clear to several Ukrainian parliamentarians plan dictated by the IMF. Yet ofthe $2 billion long promised that the IMF "success recipe" was supposed to be sold in a by the IMF, not a dime has been forthcoming. moderate packaging at this conference, they decided to invite Against the background of this power struggle between Dennis Small, Ibero-American intelligence editor of EIR , President Kuchma and the majority of Parliament over the and Karl-Michael Vitt, from the German Schiller Institute, as future course of Ukrainian policy, two conferences took place speakers at the conference. The U.S. conference organizers on April 8-9. At one of them, those who want to stick to the tried to prevent both speeches from being given, but in vain. monetarist shock therapy of ruthless privatization gathered In fact, the speeches were the only ones which were greeted around the Russian guest speaker, Yegor Gaidar. It was Gaid- with applause. Small's speech is reprinted below.

EIR May 5, 1995 Feature 15 How the IMF's policies destljoy the physical economy of na�ons by Dennis Small

This speech was delivered on April S in Kiev, Ukraine at a increasing ability to produce tnarket baskets of necessary conference sponsored by the U.S. State Department's consumer and producer goods, for a growing population, and Agency fo r InternationalDevel opment and the Universityof to do so with progressively smaller proportions of society's Indiana, attended by 50-60 Ukrainian parliamentarians. total labor . This can only be achieved by continuous scientific and technological advance, by substantial investments in There are those who maintain that the neo-liberal economic great infrastructure projects, and by organizing national cred­ policies of the InternationalMonetary Fund are just what the it and monetary policies to facilitate such real, tangible, phys­ doctor ordered for the economy of Ukraine and other nations ical economic growth. emerging from under the yoke of communism. There are That said, let us tum directly to the case of Mexico, those who will argue that the so-called "success stories" of perhaps the best available example of IMF-produced catas­ Ibero-America prove that the policies of the IMF in fact trophe. work. There are even some who are trying to sell the smelly corpse of the "Mexican economic miracle" to the credulous. The debt bomb in Mexico The view I will present to you today is exactly contrary . When the debt bomb exploded in Mexico at the end of My thesis is that there is in fact not a single case in recorded last year, LaRouche noted that this was not a Mexican prob­ history of successful economic development premised on lem, but a New York and London problem, meaning a prob­ IMF and neo-liberal economic policies. I will prove this thesis lem of the world financialsy stem. He explained that it was the using case studies from Ibero-America. I would also like to lawful follow-on to the Orang� County, California blowout argue a related point: that every known case in modem history earlier in 1994, and that it would not stop in Mexico, but of actually successful economic development has occurred as could hit next just about anywhere: Argentina, Hungary, a result of the more or less conscious application of neither some other American county, and so on. Adam Smith liberalism nor of Karl Marxism, but of a third Why did the debt bomb blow out in Mexico? Because of school of economic thought, that of cameralism or mercantil­ a world speCUlative frenzy called derivatives. Over the period ism. Cameralism springs from the philosophy and economic from 1986 to 1994, the world derivatives market has grown science of Gottfried Wilhelm Leibniz, and is responsible for from a mere $1 trillion to over $45 trillion-an annualized the success of eighteenth- and nineteenth-century U . S. indus­ growth rate of 59% (Figure 1), As Figure 2 shows, there is trial capitalism, ofthe Meiji Restoration ofJapan, the postwar nothing on the face of the earth that has grown as fast as that German economic miracle, etc . The modem exponent of this speculative bubble--except some deadly cancers. The only school is the founder of EIR magazine, U.S. economist and thing that even came close was the world drug trade, which former political prisoner Lyndon LaRouche. we estimate to be growing at the rate of about 25% per year­ Let's get one further preliminary point out of the way be­ which might tell you something about just what is propping fore proceeding: We must firstdefine what we mean by "eco­ up the derivatives bubble. But as the speCUlative bubble has nomic success." If a doctor definedsucce ss as reducing a pa­ grown exponentially, the productive physical economy of tient's high blood pressure no matter what the cost, the the world-the food, steel, energy, and so on, on which quickest way to "succeed" would be to kill the patient: The the survival of the human race actually depends-has been blood pressure would drop to zero, every time. That's more or collapsing. Over the last eight years, world steel production less the IMF approach to inflation, and financial stability more per capita has been dead flat. Grain production per capita has broadly. For example, this is the case of Jeffrey Sachs's model actuall y dropped by 1.3 % . country Bolivia, where his policies did indeed reduce inflation Sooner or later, when the speculative cancer has de­ back in 1985-withthe minor complication that he also wrecked voured most of the physical economy underlying it, the sys­ the Bolivian economy and promoted the drug trade. tem breaks down. The day or hour may be unforseeable, but EIR and LaRouche posit a different criterion. Success the process is inexorable. must be measured in physical-economic terms by a society'S U.S. banks are heavily addicted to derivatives. Most of

16 Feature EIR May 5, 1995 FIGURE 1 FIGURE 3 World der vat ves growth Mexico: growth of foreign d bt versus i i e. (trillions $) production, 1981-93 (percent change) $50 $45.0 250% +234%

40 200%

30 150%

20 100%

1 0 50% $1.1 --'---...... _ ...... --- 0 -27"10 -22% -2% +2% 1986 1987 1988 1989 1990 1991 1992 1993 1994 0%

: Sources: Bank for Intemational Settlements, Fortune, Swap Monitor. Steel Grain Cement Meat Debt -50%

FIGURE 2 Sources: World Bank, ECLAC (United Nations)� INEGI (Mexico). World growth rates, 1986-94 (average annual percent) banks-British, American, and otheq;-following them into 60% 59% bankruptcy soon. What happened in Mexico is a !microcosm of this big . picture. Between 1980 and 1994, �xico's official foreign 50% debt soared, reaching $141 billion bf 1994. But in addition to the official debt, Mexic

EIR May 5, 1995 Feature 17 FIGURE 4 FIGURE 5 Mexico: producer and consumer goods Cumulative physical looting of Ibero-America (index 1 981 =1 00) (billions $)

100 $600

Total physical looting = $535 95 � Producer goods $500

90 $400 85

$300 80

75 $200

70 "Consumer goods $100 69 Nominal trade surplus 65

$0 60 ��,-��1980 1982 1984 1986 1988 1990 1970 1975 1980 1985 1990

Source: EIR. Sources: ECLAC (United Nations), INEGI (Mexico).

imports, and you get less for your exports. In other words, if adopted by thl.'-n-President Jose Lopez Portillo. But the bank­ you need to import a ton of steel, in year one, it takes a ton ers thought otherwise. Nineteen eighty-one was the last year of your copper exportsto get it; in year two, under worsening of growth, and then the IMF and the oligarchy launched all­ terms of trade, it takes two tons of copper to get the same ton out war on Mexico. In the subsequent two administrations, of imported steel. of Miguel de la Madrid and Carlos Salinas de Gortari , every If the terms of trade factor is considered, we calculate an aspect of British free-market dogma was dutifully imple­ additional $181 billion of physical loot which has gone out of mented-and the Mexican economy collapsed as a result. Ibero-America since 1980 (Figure 5). So the actual adjusted Bean production dropped by 37% per capita; milk by 22%; trade surplus was almost $400 billion. To put it differently, steel by 27%. Overall consumer goods dropped by 20%, if the terms of trade had stayed exactly as they were in 1980, producer goods by 27% (Figure 4) . the cumulative trade surplus would have been $399 billion How did this catastrophe happen? which left the continent. To that you have to add the amount that left illegally as Bankers' arithmetic capital flight, about $136 billion cumulative for a grand total During the early and mid 1980s, Mexico-like the rest of physical looting of $535 billion extracted, sucked out of of Ibero-America, serviced its foreign debt by running a the continent through this looting process over the decade. large trade surplus. On IMF orders, these nations slashed That corresponds to about 13% of the productive GNP of imports-they stopped purchasing everything that was need­ Ibero-America over the decade of the 1980s-and we are ed to run their economies and sustain their living standards , talking about a continent that was already in dire poverty at from food to machine tools-and exports were driven up the beginning of the decade. This extraction of wealth needed as rapidly as possible. The difference between exports and for consumption and investment, in order to pay debt at imports is a nation's trade surplus, the amount gained in all costs, produces "Africanization," a non-linear downward foreign currency, which is then used to pay foreign debt. If spiral of negative growth. you add up the total amount between the import and export It is of course the payment of the foreign debt which is lines, you have the total cumulative trade surplus. the principal mechanism through which this looting process This adds up toa very sizable cumulative amount: $218 works. billion between 1980 and 1990. Ibero-America's total foreign debt in 1980 was $257 bil­ This i.s bad , but it is not the fu ll story . During this period, lion (Figure 6). Over the course of the next 14 years, the we have an added factor: the collapse of the terms of trade nations of the region paid $4 17 billion in interest payments for Ibero-America. This means that, if you are an Ibero­ alone, i.e., excluding amortization of principal. And yet at American country, each year you have to pay more for your the end of that period, they owed more than at the beginning:

18 Feature EIR May 5, 1995 FIGURE 6 FIGURE 7 lbero-American foreign debt, and interest paid Chile: foreign debt and acc�mulated interest (billions $) payments (billions $) $600 $257 - $41 7 = $547 $547 $30 Total debt 500 • • Interest paid $25 $41 7 400 $20

300 Foreign debt � $257 $15

200 $10 "'"In terest payments 100 $5

O ...J.A__ L 84 85 86 87 88 89 90 91 92 93 94 $O�"���'-'I�'�-'�'-'I-'��"I-'� 1970 1975 1980 1985 1990

Source: World Bank. Source: World Bank.

$547 billion. In other words, as you can see as clear as day, $257 minus $4 17=$547. That's what is called "bankers' derivatives bubble, so Chileans may soon find their savings arithmetic . " wiped out, much like the citizens of Orange County, Califor­ The irony is that the IMF and its apologists frequently nia, or the nation of MeXico. argue their case on the grounds that if you liberalize, money Throughout, Chile has faithfully paid its foreign debt. In will come pouring into your country. Open your economy, fact, the debt was very low when the Chicago Boys tookover they say, so we can ship in capital. But the door that is opened with Pinochet in 1973, about $3 billion, but since that time it is the door through which capital leaves the country, not has grown to about $21 billion today, despite the fact that arrives. There is in every case net capital exports, a looting over $25 billion in interest has been paid (Figure 7). In fact, of the national economy. Chile has the second highest per capita interest payments record of Ibero-America from 1981 to 1990, afterVenezuela. The case of Chile In conclusion, let me shock you with the fact that lbero­ The case of Chile also exemplifies this point. Although American foreign debt is actually the Slowest-growing of any time does not permitme to present the evidence in full, the region of the world: It has been increasing at about 5.5% per fact is that the Chilean crash of 1982-83 was caused by the year, compared to a world average of 8.0%. The countriesof "Chicago Boys' " neo-liberal policies. The modest recovery Europe and Central Asia have a foreign debt which is among from those depths are a result of 1) abandoning the worst the fastest-growing in the world, at 10.7% per year. This part excesses of neo-liberalism after 1983; and 2) the high interna­ of the world is also seeing bankers' arithmetic in action. The tionalprice of copper over the last few years, which is Chile's total debt of Europe and Central Asia was $97 billion in 1980; main export commodity. over the next 14 years, $192 billion in interest was paid, and But the recovery should not be exaggerated either. GNP at the end of this period, $403 billion was owed. At this rate , per capita is today scarcely higher than it was in 1973; and and with IMF policies, this region is rapidly being trans­ the small growth in employment, for example, has been prin­ formed into Third World nations by the IMF. cipally in the non-productive services area-just like the The solution to this crisis lies in the opposite direction rest of lhero-America. As for Chile's much-promoted high from neo-liberal reforms. Sovereign nations must take mea­ savings rate , this is mainly related to the privatization of its sures to protect their physical economies, and ally among socialsecurity system, which has simply meant that billions themselves to have the political muscle to do this. And such of dollars of these funds have heen invested in large interna­ nations must also act immediately to bring about a new world tional financial institutions, such as Merrill Lynch or Bear monetary system to replace the IMF, a system premised on Stearns. They in turn are heavy speculators in the world the principles of mercantilist physical economy.

EIR May 5, 1995 Feature 19 Interview: Natalya Vitrenko and Vladimir Marchenko

IMFsh ock therapy is pushing Ukraine toward a social explosion

Ukrainian Members of Parliament Natalya Vitrenko and Vla­ from the ruination of the economy. They began to import dimir Marchenko were in Washington March 28-April 4 as foreign cars for themselves, gOljJrmetfo od, appliances, tape­ guests of the Schiller Institute, where Mrs. Vitrenko spoke at recorders. The majority of the population experienced a the March 29 conference "Is There Life After the Death of steep deterioration of life, whilt a small portion-we calcu­ the IMF?" (see EIR, April 14). Both are members of the late about 15%-gained fromi the reforms. Their income Parliament's Committee on Economic Policy, and leaders of began to grow, especially their *nregulated income on which the Socialist Party. They were interviewed by Rachel Doug­ no taxes are paid. las on March 31. That was the essence of ourlrefor ms. Naturally, we can­ not term such actions reforms ib the true sense of the word, EIR: What measures were adopted under the slogan of re­ because "reform" implies, fir�t of all, consistent, gradual form in Ukraine? What was done at the outset, and what were change and, secondly, improvement. Here, we have wit­ the results? nessed not gradual, but an avalanche-style change. A torren­ Vitrenko: We can date the reforms from 1989, in what was tial change in prices. An avalan¢he collapse of our currency's still the Soviet Union. That year, a law on cooperatives was value. An avalanche-style chap.ge in import-export policy. passed. Under that law , and then with the creation of small Avalanche-style privatization is commencing. All of this is enterprises, state property began to be broken up. All this done at breakneck speed, on a forced march. was done under the slogan of market reforms. But the most important rea$on this cannot be called re­ In 1991, Ukraine obtained its independence and such form , is that there has been n() improvement, but rather a reforms really picked up. The essential point was that the deterioration of the situation. I We have seen a threefold command system had to be destroyed; an economy based on shrinkage of Ukraine's per capi.a GD P in the past three years. central planning was not justified, and it was to be replaced From a level of $2,228 per capita in 1991, it fell to $778 per by a market system. But this meant "market" in the worst capita in 1994. The national income collapsed twofold during sense of the word: not a regulated market, not a socially that period. If we look at the main categories of production, oriented market, but the sort of market which, according to such as machine-building, consumer goods, agricultural the doctrine of Milton Friedman and von Hayek, is supposed products, we see four- , five-, eightfold and greater collapses. to be spontaneously regulated by supply and demand. In some categories, a 50-fold c()llapse. Thus the reforms boiled down to the elimination of price Naturally, there is no imJllrovement here whatsoever, controls, the elimination of the fixed exchange rate, and the only a deterioration of the economic situation. The worst abolition of regulation and management of foreign economic thing for the country is that this deterioration of the economic activity. All of these processes, which previously were total­ situation is transforming the majority of the population into ly under state control, were 80-90% deregulated. impoverished, unfortunate peOple who are afraid of what The jump in prices immediately dealt a blow against tomorrow will bring. These are people without a steady production, which began to fall. Then, under the slogan of source of income adequate to live on. This situation pushes sovereignty, economic ties with Russia and other republics them into various forms of resistance to the existing regime. of the former Soviet Union were broken. With the institution We don't yet know where this Will end. of a floatingexchange rate , the national currency immediate­ ly began to lose value. Today, one dollar exchanges for EIR: Would you explain how such developments are a dan­ 160,000 of our Ukrainian karbovantsy. ger to not only the Ukrainiall population, but the whole The deregulation of foreign economic activity led to world? the uncontrolled export of raw materials, commodities, and Marchenko: I think the worhl knows that Ukraine suffered semi-manufactures, while we imported no new equipment as a result of the Chemobyl accident. It has been extremely or critical necessities, but rather consumer goods for those expensive to deal with the aftermath of that accident. There layers of the population who were beginning to get rich is also the question of closing the Chemobyl nuclear power

20 Feature EIR May 5, 1995 station altogether, as accident-prone. This also requires created by the government's own policy. funds. Take, for example, the breaking pfties with Russia. Rus­ On the other side, Ukraine has proclaimed itself a state sia is our most importanteconomic JlIartner, both historically on whose territory there will be no nuclear weapons. But for and, I am deeply convinced, for 1jhe future. We have an historical reasons, there remained on our territory after the economic interconnection. The structure of production in break-upof the Soviet Union a large quantity of missiles and Ukraine is such, that one-third of our output involves semi­ nuclear warheads, which must be destroyed in accord with manufactures. This means that we· received some compo­ internationalagreements which Ukraine has signed. This also nents or raw materials from Russia or we would send semi� takesmoney . manufactures to Russia. This production was designed as a For example: As of now, a technology has not even been single cycle, part of a single national economic complex. In developed for the orderly destruction of liquid-fuel rockets. breaking those economic ties, we pulled the rug out from But if they were to be eliminated by burning, the atmosphere, under both Russian enterprises and our own first and fore­ theecology of all Europe would be affected. Here, too, funds most, because our economic situation is more difficult; we are needed. have fewer raw materials. Therefore , when reforms are proposed, it is very impor­ When these ties began to be pulled apart alive, instead tant that these reforms stabilize the social situation in our of financing some kind of parallel productive enterprises to state, the economic situation, so that Ukraine might be able replace the suppliers which were now abroad-No! The cred­ to utilize its veryrich , highly developed scientificand techno­ its were used for current incurred costs, to pay bills for oil and logical productive capacity. What has been proposed to us, gas. Ukraine has no energy conservation policy, although however, is packaged as the unanimous demand of the West production of fuels is falling. Th� resource-intensivity of and the only possible direction for reform-politicians who production is growing. This is an illiterate use of credits, seethe destructionit is leading to, want to figureout whether from an economic standpoint. We will never have enough this is really so. Because if Ukraine plunges into being a credits, if we are constantly using ,them to pay Russia for socialearthquake zone , this turbulence in a state in the center growing volumes of fuel. of Europe will necessarily affect surrounding countries. It On the question of IMF credits, I would point to the will be extremely difficult toextinguish such a conflict. reforms, intensified in October 1994, again under the influ­ ence of the IMF. As I understand it, the IMF was not satisfied EIR: You speak of these reforms as "proposed to you." with Ukraine's fulfillment of the obligations it had as­ What role doesthe IMP play here? sumed-because the memorandum of 1992 was unful­ Vitrenko: Ukrainejo ined the IMF almost immediately upon fillable. This is particularly clear r�garding privatization. It achieving independence. The preparatory work had been go­ was impossible to privatize in such a short period what was ing on for a long time beforehand, in the framework of the called for in that program. The legislative basis was not former Soviet Union, under Gorbachov, as soon as his re­ prepared. Most of our people didn't understand, and still forms began to be implemented. In 1992, the government of don't, what a joint-stock company is-an open stock offer­ Ukrainealready completely openly, officiallysign ed its first ing, a closed one, what a corporation is. When people take a memorandum of understanding with the IMF, where it as­ look at this and see that they don't understand it, their reaction sumed the obligation to implement the prescription the IMF naturally is to draw back. would recommend. That is where it was written that there The dissatisfaction with the course of reforms in Ukraine should be decontrol of prices, the exchange rate, foreign was also linked with the fact that the IMF was very closely economic activity, privatization-at stunning rates. All of monitoring the process of transfer of power: how the Presi­ this was signed and promised to the IMF. It was promised, dent was changed, what the turnover in Parliament was. The against the credits to be received. first guest to arrive in our country after the election of the In orderto introduce one's own national currency, and for new President was [IMF Managing Director] Michel Cam­ structuralchanges in the economy in general, of course, there dessus. He came with his new recommendations. is a need for investments. Credits were promised. Then a very And in October 1994, Economics Minister [Roman] interesting situation arose around these credits. Last week in Shpek signed a new memorandum with the IMF. It was not Parliament, we posed this question: What happened to the ratifiedby the Parliament of Ukraine. It was virtuallya secret credits allocated for Ukraine? The finance minister replied document, which shows what Ukraine was supposed to do in that outof $500 million received from the United States, he order to receive a promised $4 billion credit. Concerning the could account for $250 million-that is, half. As for the other very sum of $4 billion, I would lil:e to note that our most !lalf of the credits, he didn't even give us any information conservative calculations show that Ukraine needs $40 bil­ aboutwhere they had gone. And those he did account for, did lion-investments. not go to financenew construction, new technologies. They And I would add this: Thanks to this policy of chaos and were used to paper over the holes in the balance, which were looting, experts estimate that Ukraine has lost $60 billion in

EIR May 5, 1995 Feature 21 capital flight, funds which are now at work in western banks. Having agreed to implementjIMF conditions in order to Instead of working to returnthese funds in a civilized fashion, receive those credits, the Preside�t of Ukraine has the author­ the way any country defending its sovereignty monitors such ity under the Constitution to reg�late economic relations by things, we signed a memorandum with the IMF, saying: his own decrees, which he calls rdforms. If there is no legisla­ "Give us $4 billion." tion, he simply issues decrees-tb implement the obligations And what do we promise in exchange? Once again: price he has assumed before the IMF. ' hikes, although in four years our wholesale prices have in­ The correlation of forces in Parliament is such that there creased 71,OOO-fold and retail prices 49,000-fold! In 1993 is not, at present, a parliamenqu-y majority which would alone, inflation in Ukraine was 9,250%. This means the de­ stand up and say clearly, "No!" lo implementing the policy valuation of goods produced, the devaluation of labor, the imposed on us. devaluation ultimately of human life at a very rapid rate. But Vitrenko: I would add that nobOdy in Ukraine understands now new obligations are assumed which mean another rise what the IMF means for an economy. Only the leftists have in prices. And meanwhile, our economics minister pledges a sense of this. The center forcds and the rightists, and the to restrain the increase of wages. He promises the IMF to nationalists, are coddled by the IMF. They benefitfrom this slash subsidies for public utilities, housing, public transport, policy, and they support it in Panliament. The leftists, being all social programs, and to reduce state support to agriculture. more representatives of the wot!kers' interests, understood And he promises accelerated privatization. He even names already yesterday what the tendency would be, see the results the figure: 8,000medium-sized and major, and 15,000 small today, and know where this is leading in the future-and enterprises are to be privatized. To orient yourself with re­ they oppose it. spect to these figures, understand that the total number of It is quite a sneaky policy. 'irst, the economy is really medium-sized and major enterprises in Ukraine is 8,800, of destroyed by following the pre�criptions of the IMF. And which 8,000 are to be privatized in the course of one year. now they say, without these credits, that's it! There will be For signing this memorandum, Ukraine received from no gas, because there will be nd way to pay Russia. There the IMF $371 million in December, and'how, this spring, will be no medicine. Diabetics will die, because there will be an additional $1.8 billion is promised. But there are new no insulin. To buy insulin we ne¢d hard currency; there's no conditionalities: The budget deficit should not exceed 5% hard currency, unless the IMF gilves it. Hence the thought is and the budget should have been passed no later than March constantly drilled into the mass consciousness: There is no 21. other way out. This means that Ukraine is being strictly held in the status At the same time, public opinion-and people have a of a semi-colonial country, under IMF protectorate. lack of real information, the information provided is very tendentious-is fed the line that 1\hingsare really great where EIR: Don't people, including politicians in Ukraine see the IMF has been followed. Loot how Poland is flourishing! thes,e horrible economic results as a consequence of having Mexico! Argentina, having follpwed the IMF prescription accepted IMF conditionalities? How do various parliamenta­ for reforms, is flourishing! Our Ftesidentis constantly talking ry factions view this, and what power do opponents of these about the reforms in Chile-that Ukraine needs reforms such measures have? as Chile had. Marchenko: The psychological factor is influenced by the fact that our mass media, being in the hands of the Executive EIR: What was your impression from the Schiller Institute branch which signed the memorandum with the IMF, tells conference of March 29, where the result of the IMF policy our population that there is no other way. As deputies, meet­ in these countries was outlined? [See EIR , April 7, p. 58 for ing with our constituents, we find that most people cannot a report on the conference, which took place in Washington.] accept this policy, because their life has deteriorated so Vitrenko: I was simply floored by the depth and civic re­ much, has become so unbearable, that people are on the sponsibility of the organizers and speakers at the conference. verge of a social explosion. All of the presentations, not only that of Lyndon LaRouche, We can discuss why the prescriptions of the IMF are but of those who spoke after him� were very professional and accepted, only knowing the structure of state rule in Ukraine. gave us excellent information. ! Our President enjoys enormous power. He appoints the Exec­ Nobody knows this information! How South America utive branch. He prepares and submits the economic reform has been brought to its knees betbre the IMF. That bargraph program to the Parliament, as well as the budget. So far, no showing how much was paid onlthe debt, and the debt grew economic reform program has been submitted. Knowing that anyway. Nobody knows this! IMF prescriptions were being implemented, parliamentary I work on these questions professionally, and when it deputies have repeatedly demanded: Give us the program! In came out that Mexico was being given $52 billion, the other words, if there are going to be reforms, there is sup­ thought struck me right away: What's going on, if they barely posed to be a program. But there is no program. deign to give Ukraine $4 billioll1, and suddenly $52 billion

22 Feature EIR May 5, 1995 "I am deeply convinced that the IMF was created to destroy the economies qf various countries, to prevent themJrom rising to an equal level. To brake the progress qfhu manity. "-Natalya Vitrenko

for Mexico? Something's not quite right here . Why were nian economy. What has happened with the high-technology they doing this? I found the answer only here at this confer­ industry, and with agriculture? ence. They carried on so much about the success of the Marchenko: Let me begin with a concrete example. I was reforms in Mexico, but then the bubble burst, and they had elected to Parliament after being nominated from a major to immediately save the situation, because the yawning telecommunications equipment factory . I am in my second wound in Mexico very clearly shows that IMF efforts are in term. In the case of my factory, I see how in the economic vain. Their phony efforts , I mean, ostensibly to improve the conditions created under the banner of reform, productive economy. capacities are being destroyed. Our factory, in eastern I am deeply convinced that the IMF was created to de­ Ukraine, has cut the workforce twofold. Wage policy is such stroy the economies of various countries, to prevent them today, as to make it impossible to reproduce the labor force. fromrising to an equal level. To brake the progress of human­ People are abandoning work in those productive areas, which ity. To provide for a narrow group of countries--or,perha ps, were the basis of our progress in science and technology, not even countries, but rather influentialgroups within those our quite advanced industry . They are going off into small countries--constant power over the world, over a world on structures, in order somehow to feed themselves and their the brink of famine and destruction. A world where the ma­ families. jority of people are.inadequately educated and suffer from a The biggest outflow is of the best-trained people. Once a low level of culture, so that they are easier to rule. That is the working collective of such people is destroyed, it is practical­ essence of IMF reforms. ly impossible to reconstitute it. Marchenko: I would also like to say that the conference Ukraine was an intellectual center, developing techno­ made a big impression on me, not only because of the profes­ logies for space exploration, the military complex. These are sional level of the speakers and the analysis, the exposition being destroyed. The wage policy and the lack of priorities, of the real state of affairs in other countries that have fallen including for the priority development of science, for more under the influence of the IMF, but it was most important for efficient technologies, have led to entire scientific schools me to discover that there exists in the West a totally different quitting Ukraine. Some of them, we believe, are already attitude tothe problem of other countries' development. This beyond the possibility of restoration. is important, because upon our return home to Ukraine, we Thus we have quite a difficult situation in science and will tell our fellow parliamentarians that the West is not production. I would like to take the occasion of this interview limited to the prescriptions of the IMF. to ask the IMF: Don't they understand what a tragedy our Vitrenko: Not only Jeffrey Sachs. country is being pushed into? What will the world community Marchenko: Not only Jeffrey Sachs, but here is Lyndon gain, if a social explosion occurs in Ukraine? Because by LaRouche, who has made his mission the development and the IMF prescriptions, there is no responsiblity. They give preservation of national sovereignty, industrial develop­ money, industry and agriCUlture collapse, and the people ment, the creation and development of a stable situation in who prescribed this bear no responsibility. society on the basis of productivity, cooperation among states Vitrenko: Concerning agriculture, I would add that for on a peaceful basis, so that there be peace on Earth . And Ukraine, agriculture not only was an important sector of the these arenot just slogans, but concrete programs are provided economy, but also in the future, agricultureshould define the for these goals. This is extremely important for us to empha­ place of Ukraine in the world community. This is because of size, in order to show that the West is not only the IMF, not the unique conditions. One-quarter ofthe planet' s black-earth only privatization for privatization's sake, not only the myth land is in Ukraine. Our geographical and climatic location is of the successful property-owners which is failing in Ukraine extremely advantageous for the development of agriCUlture. rightnow , in particular. But the West also means entire other With sane reforms, the task should have been to intensify scientifictenden cies, political tendencies, with very different agricultural production. Even if the form of property owner­ goals and prospects for the development of both the national ship were changed, it should have been not by destroying economy and relations among nations. some farms, but by creating a competitive milieu for the exis­ tence of various forms of property ownership, thus increasing ElK: I would like to ask about specific sectors of the Ukrai- the volume of agricultural output, aDd making surethat what

ElK May 5, 1995 Feature 23 I is grown gets processed. But we lose between 30% and 50%, Russia and Ukraine, including oyer Crimea. for various crops, even of what has been produced-from bad Marchenko: The last session of the Parliament recognized roads, bad storage, lack of processing capacity. the territorial autonomy of Crim�a. This territory has a spe­ But now we see a total catastrophe in agriculture. In these cific history. At one time it belo�ged to Russia, then it was last three years, the volume of agricultural production has given to Ukraine in 1954. Afterit !was granted this autonomy, collapsed between 40% and 60%, for various products. The however, a treaty was signed txttween Russia and Ukraine cattle herds have shrunk by one-third, pigs by half. which renounced any territorial: pretensions. Thus Crimea We met with a representative of the U.S. Department of today is Ukrainian territory . Both we and Russia, and the Agriculture, who spoke rather lightly about the problems of world community, proceed fromithis fact. agriculture in Ukraine, saying-Ah, well, it's just the reform The process of drawing up legislation, the absence of period . But he was a specialist in animal husbandry. I asked legislation and lack of experience in statecraft, especially in him, how many years does it take to build back up a herd of cases when regions are granted more power, have brought to cattle? Twelve years, he said. Twelve years ! That means that the fore some problems in both Crimea and Ukraine as a in three years, damage has been done which it will take 12 whole. The legislation adopted in Crimea does not always years to repair. correspond to Ukrainian legislation. The contradictions had This decline in agriculture production means that not to be solved. The relevant commissions were established, only is Ukraine losing its own food base, but also its export working groups with participatiou fromCrimea and Ukraine, capability. In the past, we exported food . But if we lose both to reconcile these questions. our productive base and our export potential, we lose our In my view, the decision by the Parliament was prema­ independence. By the destruction of agriculture alone, ture: The Constitution of the C�mean Republic was abol­ Ukraine becomes a dependent country . ished, rather than amended, as I �ink it should have been, in Regarding what Mr. Marchenko said about the destruc­ order that it be consistent with UWrainian laws. The Presiden­ tion of scientific schools: Ukraine had too high a portion of cy of the Crimean Republic wasl liquidated. It seems to me enterprises belonging to the military-industrial complex. But that this was a rash decision b)l our Parliament, after that those were high-technology enterprises with the most skilled President had already been elec¢d. It was resolved that the workers , the most modem machine tools. That means that government to be chosen by the Crimean Parliament will during the reform process, they should not have been de­ have to be ratifiedby the Parliamj::nt of Ukraine. The Consti­ stroyed and the labor collectives should not have been broken tution the Crimeans are draftingi will have to be ratified by up . Rather, these facilities could at least have been converted the Ukrainian Parliament. to civilian production, or-as some other countries have Thus, while supporting the Principle that the supremacy done-keeping them partially in military production, it of national legislation over regio'1al should be upheld, includ­ would have been possible to trade military products for goods ing in Crimea, it seems to me tllat our current Parliament's in short supply on our domestic market. decision has planted problems which may now be aggra­ In Kharkiv, one of our major cities, military production vated-both within Ukraine, an4 between Ukraine and Rus­ comprised 90% of what was produced there . This was five sia. Abolishing the Presidency and Constitution of Crimea years ago. In 1994, only 1.5%. It was not just a reduction has created a situation where, at the elections slated for June, in output, but a change in structure. Production at most of separatist attitudes will likely pr¢vail. This will fan the cen­ Kharkiv's factories, which were military, has collapsed tens trifugal aspirations of the Crimedns. of times over. So we obtain neither military output, nor civil­ At the same time, this forceful resolution ofthe problems, ian. Labor collectives formed over decades, and who know of the contradiction between Crimean and Ukrainian legisla­ the technologies, are falling apart . tion-and our Parliament's decision is juridically imprecise And it is not simply that people leave one factory for and poorly grounded in some pla¢es-will of course provoke another. The workers are "reborn," so to speak. Not so long a reaction by Russia. It could take various forms, and insofar ago they were producers, they were proud of their factory, as Ukraine is very dependent on �upplies from Russia, espe­ they valued their job. Today, losing their jobs or keeping cially of fuels, and dependent �ith respect to the debt pay­ them with just a beggarly wage, current policy forces them ments we share, pressure could � exerted on Ukraine which to steal. They steal things from their own factory, they specu­ cannot lead to anything good. Tberefore I think that the Par­ late, they eam money in whatever way they can. We see thus liament's solution to the Crimea question, and the President's a degeneration of the labor force from a creative one into backing of it, cannot help develop these relations in a calm, semi-literate speculators. The damage to Ukraine, here lawful fashion. A new potential for conflicthas been created, again, is not something you will repair in a day. It will take a conflict we would not like to see. decades to reclaim the positions that were lost. Vitrenko: Such a conflict would be of no use to Ukraine or to Russia. It is when economic t;ies have been so disrupted, EIR: Please comment on the latest developments between that the potential for such conflicts grows.

24 Feature EIR May 5, 1995 In Russia, the conflict in Chechnya flared up, because EIR: You have read LaRouche' s: memorandum presented Russia is also experiencing an economic collapse. You can before hearings at the Russian Stdte Duma, where he says see this by many indicators . The material that became public that there will be no recovery in ROssia or Ukraine without a . afterthe change of leadership at the Russian State Committee systematic bankruptcy reorganization of the western econo­ on Property was very revealing. Mr. Polevanov took charge mies [see text in EIR , March 17]. If the West wakes up, and then made public the results of privatization in Russia, do you see the development corridors and other approaches which had led to losses for the national economy of Russia outlined there as the basis for cooperation in Eurasia? in many sectors and showed that the privatized enterprises Vitrenko: Absolutely. In the memorandum, as in his pre­ worked worse. sentation at the conference, Lyndon LaRouche begins with As Russian citizens' dissatisfaction was growing, at that the need for a general debt moratorium, where payment and verymoment the Chechnya card was played. First, they were debt service would not be required at least until there has given maximum autonomy; Yeltsin said, take as much as you been a complete stabilization of thd economy and it begins to wish. Then when Dudayev, a figure no less odious than develop. Take Ukraine: Debt sen/ice takes up 14% of our Yeltsin, assumed great powers , a settling of accounts began. budget today. This is 273 trillion karbovantsy. For compari­ And the fact that tens of thousands of people have died or son, we spend 30 trillion on healfrl care. Thirty-four trillion suffered during that settling of accounts does not bother the for education. But 273 trillion for debt service! politicians. If the world community were to listen to LaRouche and There is a horrifying analogy in Crimea. Because the break with the IMF, starting with a debt moratoriuDl as the severe deterioration of the situation in Ukraine can no longer first step, it would allow our country to invest those resources be covered up. It simply can't be ! That should prove to any in solving the most pressing domestic problems. politician, that if his reform policy is severely worsening the Furthermore, we understand very well that even if we situation, he needs to abandon that policy and change it. But succeeded in convincing the Parliament and the President instead of a radical change in economic policy to stabilize and got our program adopted, Ukraine would not succeed relations in society, a different question arises. Mr. Mar­ alone. If the same policy of destru¢tionwere continued with chenko is correct: First, Crimea was granted excessive pre­ respect to Russia, Poland, Mexico, and others, the policyof rogatives. It's as if some state in the U.S. had been given the the strong devouring the weak, Ukraine would not gain. The right to have its own banking system, its own currency, its world as a whole needs to change. The impulse for this own foreign policy. But then suddenly, this does not suit, change, however, has to come from what LaRouche calls in and instead of calmly reaching a settlement, there are abrupt his memorandum "the National Party," that layer of what measures to restore the previous situation. I would call the patriotic intelligentsia in each country. I It would be very desirable for the situation in Crimea to understand that this layer is very thin, too thin, but these are remain under control. One would hope that both the Crimean the bearers of progressive ideas. Beginning with this in each and the Ukrainian politicians will have enough wisdom to country, and moving on to concret� actions by the authorities review some questions, in the course of changing Ukraine's in each country. . . . If it will hapPen also in the more devel­ economic policy-as it will have to be changed-so as to oped countries; this is of great value, when a stronger country allocate more authority to the regions in general . The Don­ extends a hand in friendship, it will be picked up by the bass, too, has its own specificproblem zones. So does Trans­ poorer countries. I sensed this at the conference, when people carpathia. These are specificareas of Ukraine which do re­ came up to me from Cameroon, from Congo. I understand quire something other than commands from a single center, the conditions in Africa; they would be very glad if the IMF moreauthority of their own. Crimea could be granted more stopped torturing them, and other paths were proposed. authority in that context, and also the other regions. Marchenko: I would add that when a country'seconomy is This comes to the problem raised at the conference, destroyed and the country is pushed toward the stage of social namely that the state should be concernedwit h the key, major explosion, the conditions are created for either a dictatorship questions, leaving quite an array of matters to be resolved or a fascist regime to come to power. History shows us how locally. I have always shared the view Lyndon LaRouche that increases the potential for conflict, war, human casual­ expressed inhis speech, that the state is responsible for infra­ ties. Therefore , the world must live by cooperation. I believe structure. The productive and social infrastructure of society that all honest people must work fdr countriesto live in peace is the responsibility of the state. But how industry, agricul­ and cooperation with each other, On the basis of democratic ture, local transport, and so forth are to develop, let the principles. The processes involved in the development of regional authorities decide. Let the regions do some work. countries can foster either democracy, or the advent of au­ And those who are involved in more hands-on management thoritarianism, dictatorship, and fascism. The prescriptions will manage more effectively, although the key national eco­ for the destruction of industry and the economies of countries nomic questions will still have to be decided by the state. will only promote conflictin the world. We do not want this Like the space program. to happen.

EIR May 5, 1995 Feature 25 �TIillInternational

Great Britain unleashes globalirre gular warfare

by Linda de Hoyos

The April 19 car-bombing of the U.S. Federal Building in U.S. foreign policy."It is our great tragedy, that, at this Oklahoma City signals that the perturbations that have shak­ moment, it is not Henry Kissinger who is directing U.S. en the world's institutions with the onslaught of global fi­ foreign policy," Hapsburg stated (see InternationalIntelli­ nancial collapse, have now reached seismic proportions. The gence). car-bombing, as President William Clinton stated, is "an act Secondarily targeted are allies or potential allies of the of war." At stake in this war, is whether world leaders will Clinton Presidency who would support action for monetary be able to take appropriate action to put into place a new reorganization. monetary system able to make the transition from the current financial collapse to global economic reconstruction, or Target Tokyo whether the systemic financial crisis results in chaos and the Dramatic escalation of Britain's global warfare occurred disintegration of nation-states and institutions. on March 20, when deadly sarin gas was released into the Determined to bring the world to the second option is Tokyo subway system. The blind terror attack took place at British intelligence, operating on behalf of the world's oligar­ the height of rush hour and affected the Kasumigaseki sub­ chy, of which the British royal family is primus inter pares. way station, servicing the district for most governmentbuild­ Within the month leading up to the April 19 car-bombing, ings. As one Japanese criminologist noted, "We can assume British intelligence unleashed its assets in global irregular that these people [the perpetrators] wanted to send a clear warfarewith an unprecedented level of terrorist violence and message to the powers that be." The attack in Japan takes successful or attempted assassinations hitting world capitals. place at the point that Britain is working to break the long­ The aim of this "strategy of tension" is not to win on this or standing alliance between Japan and the United States, bring­ that particular point of policy within the targeted countries; ing Japan into Britain's orbit, just as it did in the period the objective is to destroy or otherwise paralyze any institu­ leading up to World War I. Within a month of the Tokyo tion that possesses the capability or potential capability to attack, two more releases of poison gas occurred in Japan, take independent action to avert or place obstacles before the the last on April 19 in Y okahama. oligarchy's drive for global Gotterdammerung. Named as suspects in the gas�attacks is the Aum Adikhari The primary target for British intelligence is the United Buddhist cult of Japan, which has an international following States Presidency of Bill Clinton, which has severed the and is believed to be the repository for millions of dollars of "special relationship" with Britain. The "demand" behind the "hot money." Leaders of the sect were trained by the Tibetan Oklahoma City car-bombing was delivered on April 1 by Tantric Buddhist guru, the Dalai Lama, a known asset of Otto von Hapsburg, heir to the throne of the Austro-Hungari­ British intelligence with close ties to Prince Philip's World an Empire. Writing April 1 , Hapsburg decried Clinton's for­ Wide Fund for Nature. eign policy and demanded that self-avowed British agent of The attack itself and the surfacing of the Aum cult in influence Henry Kissinger be promoted to take charge of connection with the terrorhad an explosive impact on Japan's

26 International EIR May 5, 1995 institutions. Immediate attempts were made to thwart the bombing, a pipebomb exploded in front of the provincial investigation. On March 30, Takaji Kunimatsu, director of legislature in Charlottestown, Prince Edward Island in Cana­ Japan's National Police Agency, in charge of investigating da. No one claimed responsibility for this otherwise com­ the sarinatta ck, was shot and seriously wounded by a gunman pletely unexpected event. outside his home. On April 24, in an incident reminiscent of the Jack Ruby killing of alleged assassin Lee Harvey Oswald Heightened security for world leaders on Nov. 24, 1963, the Aum cult's "science and technology The bombing did, however, force a heightening of securi­ unit" chief, Hideo Murai, was stabbed to death while he was ty around the Group of Seven industrialized nations heads­ holding a press conference, as millions of shocked Japanese of-state meeting due to take place in Halifax, Nova Scotia, watched on television. The head of the cult is still at large. in Canada in June. On April 25, the Globe and Mail released security details on the upcoming summit. While not referenc­ Target Germany ing the Prince Edward Island incident, the paper, citing the In the last week, Germany, which Clinton has designated Royal Canadian Mounted Police, reported that a two-meter­ as the United States' key strategic partner, has again been high concrete and wire barricade will be erected aroundmuch rocked with "green terrorist" violence, as thousands of anti­ of the one-kilometer perimeter of the summit site; military nuclear campaigners battled police in an attempt to prevent helicopters and patrol boats will be stationed to block boats shipment of nuclear waste from a storage center near Han­ and planes from nearing the site. Additionally, many of the over. On April 24, the greens succeeded in halting service 57 businesses near the site will be closed; all mailboxes and on six rail routes when they brought down power lines. newspaper vending machines will be removed. On April 23 , Christian Democrat member of the Bundes­ In South Korea, the combination of the Tokyo terrorism tag (Parliament) Theo Blank narrowly escaped being killed and the Oklahoma bombing has forced the country into a when a bomb exploded at his home in Dusseldorf. Wire heightened security alert, a spokesman for President Kim services allege that the bomb was planted by a "leftistorgani­ Young-sam announced on April 22. Reinforced inspections zation." However, new revelations surrounding the April are being carried out at airports �d ports because of "the 1991 murder of Detlev Karsten Rohwedder, then-director idea that there is a possibility of extremist attacks on many of the Berlin Treuhand agency, points to the more likely and unspecifiedpeople in our country. " . , involvement of intelligence agencies. Rohwedder's murder In Japan, Prime Minister TOIIliichi Murayama has or­ was laid at the door of the Red Army Faction (RAF), but is dered extra security at the homes of government ll'I:inisters now revealed to be more likely the result of a deployment of and all officialsinvolved in the Tokyo gas investigation, after spetsnaz (special forces) by the remnants of the East German the attempt on the National Police director. Murayama's own intelligence agency, the Stasi, which in tum has strong links security cordon was broken on April 1 by a man claiming to to Britishintelligence (see article, p. 48). be a member of a "rightist organiz�ion." ... Security concernshave also beep raised in Turkey, which Target Pakistan and the Philippines the Clinton administration had recpntly afprmed � "an in­ Also under siege are two allies of the United States in valuable ally in the region." On APril 20, the day after the Asia: Pakistan and the Philippines. On April 20, those two Oklahoma bombing, Turkish poli�e arrested 21 people in countries signed an agreement to combat terrorism and nar­ Istanbul on charges of conspiracy to assassinate Prime Minis­ cotics jointly, as both have been the target of Afghantsi net­ ter Tansu Ciller, then on an official visit to Washington. works . Both countries cooperated with the United States in Police reportedly seized a hand-drawn map ofCiller's private the apprehensionof Ramzi Ahmad Yousef, who is wanted for residence in Istanbul and a large number of the group' s �telli­ his suspected role in the 1993 World Trade Center bombing. gence reports , according to news wires. Such drug-terrornetwor ks, who have London as their support Also on April 20, in Spain, the ileader of Spain's conser­ base, have been working to make Pakistan ungovernable for vative Popular Party , Jose Maria Aznar:, narrowly escaped Prime Minister Benazir Bhutto, who came to the United death, after a car bomb blew up his own car and injured 16 States in April seeking closer ties with Washington and an people. This is the first attempt �n the life of a Spanish overturning of the Pressler amendment, under which Paki­ politician in over 20 years. stan has been denied military aid or delivery of F-16 fighter Taken as a whole, the pattern ofviolent threat to leaders planes that it has already bought and paid for. Right before and institutions is unmistakable-in contrast to the tendency the February visit of Pope John Paul II to the Philippines, of each targeted nation to view sucQ terrorattacks as a purely Afghantsi networks were arrested in Manila planning the internal matter. Recognizing both the strategic purpose and pope's murder. Associated networks have also wreaked hav­ ultimate London source of the deri�ative, local operations in oc on the Philippine islands. global irregular warfare is the reqpired first step to enable A full security alert must also be placed on the lives of patriotic institutions to take counlermeasures that are ef­ world leaders. On April 20, one day afterthe Oklahoma City fective.

EIR May 5, 1995 International 27 French Presidential elections defy calculations of Paris nOIIlenklatura by Christine Bierre

The victory of Lionel Jospin, the Socialist Party candidate, lation. With the notable exception of Edouard Balladur, who in the first round of the French Presidential elections on April didn't hide the fact that he intended to pursue an austerity 23 , was a surprise to all, and proves that in a time of crisis, policy in order to maintain the French franc and to fight even the best attempts to rig the elections through manipula­ against the budget deficit and indebtedness, all the other tion of polls and media, are bound to fail. Since mid-Febru­ candidates-from the racist Jean Marie Le Pen to the Trot­ ary, all of the polls predicted a sure victory for Jacques Chir­ skyite Arlette Laguillier and the environmentalist Dominique ac , the president of the nominally Gaullist party (Rally for Voynet-ran on platforms calling for state intervention to the Republic, RPR), with over 25% ofthe vote, and a second create jobs and increase wages. place, but far behind, for Jospin. The results were almost the But beyond election-campaign demagogy, who is willing opposite: Jospin came in first with 23% while Chirac trailed to attack the real causes of the economic crisis? As Jacques behind with slightly over 20% . Cheminade, the friend of Lyndon LaRouche who took part What does this mean for the outcome of the Presidential in the race, expressed it many times: To tackle the economic race, which will only be defined in the runoff between Chirac crisis in France, it is necessary to attack the Treasury, the and Jospin on May 7? Not much since, in reality, the main Bank of France (central bank), and all the other financial issue is one of program and not of personalities. authorities that are applying to France the monetarist recipes The entire campaign focused on social issues: what to do of Wall Street and the City of London. In the name of the about the whopping unemployment, about the hundreds of defense of strong currencies and of the fight against inflation, thousands of homeless, how to solve the problem of the the high interest rate policies adopted by the Bank of France plunging living standards of the majority of the French popu- and the others, have killed productive investment and pro-

Jacques Cheminade on the campaign trail, visiting an industrial plant . He is calling fo r a break with "the markets" and the launching of an industrial recovery program .

28 International EIR May 5, 1995 moted rentier capitalism instead. These policies are largely responsiblefor the soaring unemployment rate in the majority of the European countries. Anyone who promises wage in­ Cheminade: 111bUild creases and jobs must tackle those problems. a national movement Cheminade's impact The importance of Cheminade's campaign is precisely Thefo llowing statement was issued by Presidential can­ that it was aimed at responding to those questions and at didate Jacques Cheminade on the evening of April 23 : influencing the electoral and post-electoral debate with his solutions. Throughout the campaign, he denounced, as the My campaign gave me the chance to air my ideas and main cause of the economic crisis, the speculative cancer to present a real project for France. A certain press, which is pumping money out of real production. He also reprimanded-but unfortunately , to no great conse­ attacked the "incestuous little club made up of high-level quence-by the National Contrdl Commission, pre­ civil servants of the Treasury, the Bank of France, and the vented me from really making this project known to a Economics and Finance ministries," which serves as the majority of French men and women. Moreover, my transmission point in France for the monetarist theories ram­ honor was constantly attacked. pant in Wall Street and the City of London. To counter those The very low level of the campaign, fomented and tendencies, said Cheminade, it is necessary to break with sustained by a handful of journalists, allowed the far "themarkets" and to restore to the state the means to run the right to score a worrying success. economy. This means bringing to an end the autonomy stat­ I welcome, nonetheless, the gioodresult for Lionel ute of the Bank of France and its power to issue currency Jospin and the second place for Jacques Chirac. I am and to control credit flows. Finally, he said, it is absolutely ready to conduct a dialogue with both of them in order necessary that Europe adopt a Marshall Plan perspective to­ to measure how committed they are to fighting the ward eastern Europe and the South, reorienting credit in the financial cancer which is eating away the economy range of several hundred billions of dollars , toward great and to supporting a new East-West and North-South infrastructure projects. Marshall Plan. In the extremely tense climate that dominated this elec­ Around my candidacy, a new political force has tion campaign, those themes did have a certain impact. One been born and it will be around ,for a long time; the of the reasons is the fact that certain factions in Chirac' s as letters and encouragements which I received open up well as in Jospin' s camp are beginning to question the present such a hope. monetarist policies. For many years, the monetary policies of France have favored "the markets" and rentier capitalism by keeping real interest rates extremelyhigh . This policy has often been justified as a policy favoring a "strong franc ," in Gaullist policy and which is led by Philippe Seguin, the head a fixedparity to the deutschemark, a policy aimed at keeping of the National Assembly, is considering breaking entirely inflation at a near-zero rate . Part of this policy is also the with the present policies, in favor of what is called here in defense of the Maastricht Treaty of European Union, with its Paris, the "Other Policy." The main points of this Other absurd "convergence" criteria which would force all of its Policy include a break between the franc and the deutsche­ participants, with the exception of Luxembourg, to adopt mark, a franc floating away from the European Monetary stringent austerity policies in order to reduce public deficits System, and a lowering of interest rates in France in the and indebtedness, respectively, to below 3.5% and 60% rela­ hope that this would stimulate investment and make French tive to the GNP. products competitive. This was the real debate behind the fight that broke out Cheminade intervened to shape this debate, rejecting during the latter part of the campaign, between Chirac and both the present and the Other Policy as incompetent, and the head of the Bank of France, Jean Claude Trichet, when calling instead for 1) burying the Maastricht Treaty; 2) estab­ Trichet made a public statement opposing anything but sym­ lishing a reference currency and a system of fixedpariti es; 3) bolic wage increases. Both Chirac and Henri Emanuelli, the putting an end to the autonomy of the Bank of France; and, president of the Socialist Party, immediately, and appropri­ 4) most important of all, creating a positive climate for pro­ ately, intervened to tell Trichet not to meddle with what was ductive investment by launching a new Marshall Plan toward none of his business: the state's wage policies. easternEurope and the South. To the persistent questions that The City of London and other financial headquarters, Germany's Bundesbank would never accept those policies, however, immediately recognized what was at stake. Ac­ Cheminade insisted that one should not mistakeGermany for cording to articles in the financialdaily La Tribune, the group the Bundesbank, that the German nation has everyinterest in in the RPR that has steered Chirac' s policies toward a "social" adopting this Marshall Plan, in particular in light of the crisis

EIR May 5, 1995 International 29 Jacques Cheminade gives a press conference in the town of Nancy during his campaignfor the Presidency. Although a nasty media slander operation against him kept his vote total below 1%, he has emerged as a nationally known figure, and his programmatic proposals are the subject of heated debate. looming in Russia and in easternEurope . to set the economy right once again. Just days after, Jean Paul Fitoussi, the head of the French This is the reason why France's financiales tablishment, Foreign Trade Observation Post (OFCE), who has sometimes and its media outlet.s, attacked his candidacy with particular been calle(ithe leader of the French neo-Keynesian school­ fury . Cheminade not only has the competence, but he also a man whom Jacques Cheminade praises as �he best econo­ has the courage to stand up to "the markets," something that mist of France-gave an interview to La Tribune on precisely neit�er Chirac nor Jospin has. It is interesting to note in this those issues. Known to be totally against the present policies, respect that as soon as "the markets" attacked the franc, which he denounced in a recently published book entitled following Chirac's declarations against the head ofthe Bank The Forbidden Debate, Fitoussi did not spare his attacks of France, Chirac and Seguin immediately proceeded to reas­ !lgainst the "Other Policy." One has to be "mad" to defend, sure those markets, indicating that there would be no change against the present policies, this "Other Policy," which on the policy of the strong franc, nor would the autonomy would amount to a weak franc, high inflation, and isolation, statute of the Bank of France be put into question. he said. He denounced the high-interest-rate policy as being During the two to three weeks that the officialcampaign a policy of "no future." Instead, he called for France to lasted, a little gang of journalistsin the national press agency lead the way and lower its interest rates. The International AFP, Le Monde, the two largest TV channels (TFI and Monetary Fund or other European financialinstitutions could France 2), and some of the Radio France-affiliated stations easily extend Special Drawing Rights or other currency in­ launched wave after wave of !ilanders and lies against Che­ struments to the eastern European and southern countries, minade, in an effortto stop him from delivering his message. so as to make available the credit necessary to develop the In spite of this, thanks to his official campaign, Cheminade infrastructure they desperately need. This, he said, would be benefitted from nearly two hours of national TV time, divided a "magnificentway out" of the crisis, which would reinforce in spots ranging from 1 to 15 minutes. All these programs those countries and cause a real upswing in the industrialized were aired on national public radio and on the international countries. and overseas territories affiliates of Radio France. On top of this, his programmatic leaflet was distributed by the state to Media assault against Cheminade the homes of the nearly 40 million voters of France. It is in -this type of debate that Cheminade 's intervention Cheminade the mystery candidate; Cheminade the sur­ was crucial, during the election process and afterwards. A prise candidate; Cheminade the friend of LaRouche; Che­ student of LaRouche's school of "physical economists" dat­ minade has now become a household word in France, and ing back to Colbert and Leibniz-as well as of France's even though his vote tally was contained to a small 0.3% this national administration school, the ENA, where he learned time, this election campaign has offered him the airstrip from all about Charles de Gaulle's concept of a planned econo­ which his political movement will be able to take off in the my-Cheminade is the only one among the candidates able months ahead.

30 International EIR May 5, 1995 Kissinger offers Brazil a hemispheric condominium by Silvia Palacios and Lorenzo Carrasco

Immediately afterhis March 29 speech at Chatham House in visit to Brazil. Speaking in the name of the Britishand their London, where he flauntedhis disagreement with President American stooges, Kissinger had the gall to suggest that Bill Clinton's determination to end the special relationship Brazil take continental leadership and force Clinton's gov­ with Great Britain, Henry Kissinger betook himself to South ernment into this kind of accord. "The United States is seen America in early April, to visit Argentina and Brazil. His as scared to lose the leadership in the hemisphereto Brazil," purpose was to placate the jitters aroused by the Mexican he stated on April 8 in Sao Paulo, Brazil's business capital. crisis, to keep up the illusions of both countries' rulers that Then he denounced Clinton's supposed "failure of foreign things would be different for them, and to beat the drums for policy," due to his "intellectual .crisis." a hemisphere-wide free trade agreement to run the region's In an interview with the daily Estado de Sao Paulo on economies. This Kissingerian agenda was what then domi­ April 9, Kissinger made it clear that he backs everyleftover nated the state visit of Brazilian President FernandoHenrique policy Clinton has kept from the Bush era, but opposes what­ Cardoso to the United States on April 17. ever the President has done to free himself from that nefarious For the well-connected private "consultant" and his Brit­ legacy: "I have criticized the Clinton government, but I em­ ish owners, one key to maintaining Anglo-American world phasize that I support the NAFTA [North American Free power in the midst of the financial system's breakdown, is to Trade Agreement] accord, the emergency measures to sup­ make sure that Ibero-American nations don't attempt any port Mexico, and the policy of relations with China. I have solution of their own outside the British geopolitical scenar­ some philosophical differences with [Clinton] on Europe, on io. Indeed, in both Argentina and Brazil, the president of relations with Russia." Kissinger Associates sold himself and the pro-British ma­ chine he works for, as running a veritable shadow govern­ British geopolitics ment to Clinton. In Brazil's case, Kissinger offered to re­ The geopolitical idea of a U.S.�Brazilian power-sharing launch the old "special link" with the United States which he arrangement as the axis of hemispheric control, is not without himself had set up in 1975 when he was Gerry Ford's secre­ historical precedent. Early in this century under President tary of state, an arrangement broken up by Brazil's national­ Rodriguez Alves, who pushed an extreme monetarist policy ists in 1977 in a revolt against submitting militarily and strate­ very close to the Real Plan now ruining Brazil's economy, gically to British geopolitics. the Brazilian Foreign Ministry at Itamaraty Palace was set up Back in the United States, Kissinger spelled out his plan and controlled by the Baron of Rio Branco, a fan of British in his monthly column, which appeared on April 23 in the "balance of power" politics, for which Kissinger is themod­ Washington Post, in the German weekly Welt am Sonntag, em apologist. Rio Branco, together with his close friend and other places: "There is a need for closer cooperation Theodore Roosevelt, proposed to split the continent into two between the United States and the Southern Cone countries, zones of influence-North America, Central America, and and particularly Brazil as an emerging giant. In 1975 Brazil the Caribbean for the United States; and South America for and the United States signed an agreement to consult before Brazil, as the basis for Anglo-American policy in the region. undertaking major initiatives in the Western Hemisphere. Kissinger's policies fithan d-in-glove with the pretensions The time is right to implement these provisions." of the currentdenizens of Itamaraty Palace, dominated by Rio Kissinger's policies, which do have some backers inside Branco epigones, who dream of winning Brazil a permanent the present U.S. government, do not represent the official seat on the United Nations Security Council--even if it be Clinton administration line. Rather, they speak for the An­ only to keep the seat warm without the slightest overall deci­ glophile political groups tied to ex-President George Bush, sion-making power. We remind our readers that when he was orbiting in the United States around House Speaker Newt foreign minister in the last government, President Cardoso, Gingrich (R-Ga.) and other "Conservative Revolution" hon­ during a visit to London, openly mooted reviving the special chos. They orient to the so-called Enterprise for the Americas link to Britain which prevailed a century ago, a proposalBrit­ initiative, which Bush proposed during his December 1990 ish Foreign Minister Douglas Hurd called "adorable."

EIR May 5, 1995 International 31 David Rockefe ller and Henry Kissinger at a Council of the Americas Conference in April 1992 in Washington. Kissinger is working to revive the U.S. "special link" with Brazil.

Next, it was the tum of Brazil's ambassador to London, Brazil's sovereignty to the degenerate British monarchy Rubens Antonio Barbosa, to be the bearer of tidings of total could hardly have been more clearly expressed. submission to the financial power of the City of London and its Wall Street partners , via two signed articles in the The Washington visit newspaperFolha de Sao Paulo. On April 4, his article, enti­ It was this Kissingerian, or Rio Branco-style, outlook tled "Brazil and the City of London," conveyed to the Brazil­ which defined the main outlines of Cardoso's recent visit to ian Congress the City's demands that they urgently pass the the United States, which looked more like a pilgrimage to series of constitutional amendments projected by the Cardoso Wall Street than a state visit to Washington. Cardoso had his administration in order to liberalize the economy and allow bags packed fullof problems at home, especially, a political the richest state enterprises, such as telecommunications, to standoff with the Congress in Brasilia, which is balking at be privatized, opening the country up as a looting ground for approving the sellout of Brazilian economic sovereignty de­ London. "The market experts in London clearly distinguish manded by the international banking fraternity. With power Brazil in the Latin American context," he wrote. "They know rapidly slipping through his fingers, Cardoso needed to our structural advantages. They are capable of comprehend­ quickly build up an image as a world statesman, an interna­ ing calmly decisions like those recently adopted to temporari­ tionally recognized academic figure, to try and gain time for ly contain imports of certain products, measures which did getting his domestic "reforms" through. not produce negative effects in the City in terms of investment Before getting to Washington, Cardoso stopped in New decisions. " York with his entourage to meet with U.N. Secretary General In an earlier article on Feb. 2, Barbosa gave unlimited Boutros Boutros-Ghali, with the Wall Street bankers-to backing to the policy of putting the Amazon under interna­ whom he practically pledged the Southern Cross, in ex­ tional control, capitulating shamelessly to the demands change for their rapid return with their investments-and which the House of Windsor has made for the region. In with Henry Kissinger, who reiterated, "Brazil is going to "Brazil and the NGOs: A View from London," Barbosa progress and will be the leader of the hemisphere. Brazil is claimed that the British Intelligence-steered "private" organi­ successful. It is on the right path based on democracy." zations recognized by the U.N. deserve the right to make Wined and dined by the Anglo-American financial elite, decisions in this strategic region. "I have verified that the President Fernando Henrique Cardoso left New York as the non-governmental organizations based in Britain, such as heir to the position Mexico held until its economic crisis blew Amnesty International, Survival International, Anti-Slavery up last December-a questionable success. "I like stability, International, and the World Wide Fund for Nature, are fol­ and Brazil today is this program of stabilization, with strong lowing with interest the orientation taken by President Fer­ political support," commented Paul Volcker, the former nando Henrique Cardoso in his government's actions." Giv­ chairman of the Federal Reserve Board, whose high interest en that the World Wide Fund for Nature (WWF)is personally rate policies, beginning in 1979, sent the world economy into run by Prince Philip, the queen's consort, the will to cede a tailspin and set the fuse burning on the Ibero-American

32 International EIR May 5, 1995 debt bomb. The bankers were so euphoric over Cardoso's the hemisphere. According to a report in Jornaido Brasilon promises, that the president of Citibank in Brazil gushed, April 13, Batista proposed creating a huge free trade zone ''The President in his trip to the United States definitively among the Amazon countries, establishing the Merconorte, committedhimself to the internationalizationof Brazil." which would integrate Brazil with t11e countriesof thedefunct From the Executive branch in Washington, it was De­ Andean Pact. Then, this would tie �p with Mercosur and the fense Secretary William Perry who fed the Cardoso adminis­ result would be SAFTA, the South American Free Trade tration's fantasies, stating that Brazil is not seen by the United Agreement, with Brazil as the mediator. States as a regional but as a "world power." Batista, as usual, presented this Kissingerian scheme in Speakingwith Clinton, Cardosopushed the Kissingerian seductive garb. He mentioned that it would be a matter of notion that "it is time for a new partnership." He agreed that interlinking transportation, telecorrimunications, and energy Brazil would "go ahead with programs on peacekeeping," infrastructure, using concepts of "physical economy" which he promised quick congressional action to reform Brazil's are dear to the Brazilian nationalists. Yet at thesame he played constitution as perWall Street's demands, and he called for the part of defender of infrastructure, Batista attackednuclear "giving more leverage to the IMF [International Monetary energy and other alleged "pyramid-building projects" which Fund] to act more promptly to solve problems ." The United have been at the heart of the Brazilian nation-building effort. States and Brazil also agreed to take concrete steps to unify This was typical of Batista's game in the 1980s withthe NAFT Aand Mercosur, the free-trade accord of the Southern famous Carajas mine project in the Amazon jungle, which he Cone countries, also as per Kissinger's policy line. initiated. Carajas ended up being reduced to a big open-air, The Brazilian press did not fail to notice that Cardoso met high-trade iron-ore mine, exploited efficiently forexporting with World Jewish Congress leader Edgar Bronfman at his the ore at low prices to the benefitof the transnational compa­ private residence in New York, behind closed doors. This nies and Brazil's creditors, but producing constantlosses for tete-a-retewith the chief of North American Zionism brought the Brazilian Compania Vale de Rio Doce, which runs it. back to mind what Brazilian President Fernando Collor de Batista is joined in his militant ecologism by Kissinger's Mello, later ousted for corruption, did on his first U. S. offi­ friend Israel Klabin. The two have formed the dynamicduo cial visit-he gave Bronfman the privilege of being the only of the House of Windsor's causes in Brazil since at least privatepersonage to meet with him. The deference to Bronf­ 1991. When Prince Charles came, to Brazil, an elite group man, the Seagrams liquor tycoon, so flagrant that even the of national and international businessmen-some of them Brazilian press found it odd, can only mean that Cardoso members of the "1001 Club" of Prince Bernhard of Hol­ plans to continue Collor de Mello's overall project, particu­ land-met on the royal yacht Britannia, which was anchored larly when it comes to implementing the plan for foreign at the port of Belem in the Amazon Istate of Para, to talkabout bankers to grab the Amazon's resources under "environmen­ "sustainable development" in two successive seminars. talist" cover, and the continuation of the process of disman­ The first seminar was sponsored by the Forum of Busi­ tling Brazil's Armed Forces and their intelligence services. ness Leaders of the Prince of Wales, instigated by Business in the Community, a British philanthropic group, createdin NAFTA and SAFTA 1981 by British Petroleum and other major companies. The The groundwork for all of this had been laid by Kissing­ second was organized by the Business Council for Sustain­ er's early April visitto Brazil. During his stay, the traditional able Development (BCSD). These events were attended by dinner given always by his old friend Israel Klabin, took the Batista-Klabin duo, plus banker Jose Safra, anotherchap place as usual. Klabin's interests have been linked to the "wired in" to Anglo-American power circles. British-American intelligence networks built up since World Later, in 1992, the Brazilian chapter ofBCSD was found­ War II under William Stephenson and Nelson Rockefeller. ed, called the Brazilian Foundation for Self-Sustainable De­ A select group of businessmen and politicians was at the velopment (FBDS), for the purposeof managingthe interna­ dinner, among them former Foreign Minister Celso Lafer, tional financial resources which foreign oligarchs were Klabin's partner and the biggest propagandist for Frankfurt making available to environmentalist causes. Within Brazil School brainwasher Hannah Arendt in Brazil; businessman this group is made up mainly of representativesof big Anglo­ Eliezer Batista; sociologist Helio Jaguaribe, who is in the American interests like Shell, British Tobacco, BritishPetro­ Club of Rome, the oligarchistoutfit which sold the "limits to leum, Brascan of Edgar Brofmann, and Metal Leve (Brazil) growth" hoax; Gov. Tasso Jereissati; banker Walter Moreira of Mindlin-Lafer-Klabin. It is particularly serious that the Salles; and others . secretary of strategic affairsin the Brazilian cabinetis turning The high point ofthe dinner was the intervention ofEliezer over to FBDS the task of coordinatingthe plan forthe ecolog­ Batista, who, after declaringhimself a fu ll-time environmen­ ical-economic zoning of AmazJOnia, thus allowing the talist and proclaiming a strugglefor a "borderless world," laid Batista-Klabin pair and their friends abroad a free hand in out to Kissinger the form in which the new version of the determining the economic development planningof the stra­ Anglo-American-Brazilian condominium could be set up in tegic Amazon region.

EIR May 5, 1995 International 33 following the death of its previous owner, British media mongul Robert Maxwell. The :latter committed suicide or was killed following a lifetime of service to at least three intelligence services-the Sovi�t Union, Britain, and Isra­ Scandal rocks Israel: el's. It has also been alleged that he had ties to the Russian mafia. Nimrodi, as a former civil servant employed by the Mossad, apparently became a �llionaire as a result of being Will Sharon be hit? the key intermediary in arms deals to Iran during the 1980s. by Dean Andromidas He is currently partners with a Saudi arms dealer of Iran­ Contra fame , Adnan Kashoggi,: in an enterprise they claim wants to invest in Gaza and the West Bank, but has so far On April 22, Israeli police arrested Ofer Nimrodi, editor of failed to build anything. the mass circulation Israeli daily Ma' ariv, as he was about to Nimrodi made his son, Ofer,leditor of Ma' ariv soonafter board a flightfrom Tel Aviv to Zurich following allegations the latter graduated from Harvard University. The paper has implicating him in Israel's most spectacular illegal wiretap­ expanded rapidly, now challenging Yediot Aharanot as the ping scandal ever. Ofer Nimrodi is the son of Ya'acov Nim­ top circulation newspaper in Il!rael. According to Israeli rodi, a former memberof the Mossad, former Israeli emmisa­ sources, Ofer had been part of Ariel Sharon's legal team ry to Iran, and one of Israel's biggest arms dealers, who when the latter sued Time magazine for libel a few years ago. worked with George Bush and Oliver North in the Iran­ Contra arms-for-hostages operation. An ongoing investigation : The younger Nimrodiis accused of commissioning ille­ According to Raine Marcus; an investigative journalist gal wiretaps by private investigators, who were not only with the Hollinger Corp.-owned Jerusalem Post, the probe wiretappingMa ' ariv' s competitors, but politicians and gov­ into wiretapping has been ongoing for over a year. Wiretap­ ernment officials, including police, the secret services, the ping is a widespread abuse by private investigators. Defense Ministry, and even the office of the President of Arrested along with Ofer WIlls his lawyer, Motti Katz, Israel. Both father and son have in the past been associated who has close links to the Israeli Defense Forces. Also arrest­ with Ariel Sharon, theagriculture , defense, and housing min­ ed was Ofer's personal security chief, David Ronen, who is ister in previous Israeli governments under the leadership of a former senior official in the Shin Beth, Israel's internal the right-wing Likud Party. security service. It was Ronen who commissioned the wire­ Today, Sharon is spearheading the drive to wreck the tappers, allegedly on behalf of QferNimro di. Middle East peace process, and he has been coordinating this The wiretappers themselves: enjoy close links with the effort with circles in the United States, Britain, and France. Israeli security establishment. Ya' acob Tsur, one of those He has been massively funded by these sources to , in tum, indicted who turned government witness, giving authorities finance the provocative settlers movement, including the fa­ the evidence required to arrest Nimrodi and the others, natic Kach movement which spawned Baruch Goldstein, through his Agam private investigation firm, was able to who massacred Muslim worshippers in Hebron last year. acquire a $100,000 apparatus that could tap fax machines Recently, Prime Minister Yitzhak Rabin accused the Likud and cellular phones. That machine, which was too expensive of being "complicit" in the terror bombings by the Palestinian for Israeli police agencies to purchase, was "loaned" to him militant organization Hamas . Rabin's charges were bolstered by its manufacturer, ECI Telecom Ltd., which developed the a few weeks ago, when Israeli police broke a money-laun­ machine for sale to government security agencies. dering ring which involved Jewish Yeshiva students and Pal­ Another side of this case invoJves the other leading Israeli estinian money-changers who were suspectedof transferring daily, Yediot Aharanot, whose cliliefeditor, Moshe Vardi, is funds to the Hamas. accused of ordering the wiretapping of Dov Yudkovsky, a So far, the probe of the Nirnrodi wiretapping scandal has former editor of both Yediot Ahamnot and Ma' ariv. Yudkov­ not turned up any publicly released evidence linking it to the sky was a close relative of Robert Maxwell. Although the Sharon circle's efforts to bring down the Rabin government. publisher of Yediot Aharanot, Amon Moses, is said to be Nevertheless, although under Israeli law, wiretapping is a close to the Labor Party, his wife is the sister of Silvan misdemeanor punishable by no more than one year in jail (or Shalom, deputy head of the Likud Party. According to testi­ three years for persons convicted of commissioning the taps), mony by one of the private investigators charged with wire­ the case is being personally directed by Minister of National tapping, Vardi hired a firm whose principals had been arrest­ Police Moshe Shahal, and it is apparent that there is more ed last March for conspiring to · kill three leading Russian involved here than a war between rival newspapers over mafialeaders living in Israel. circulation and advertising. This byzantine story promisesto have a significantimpact In 1992, Ya'acob Nimrodi purchased Ma' ariv for his son on Israeli politics for years to come.

34 International EIR May 5, 1995 Chechnya, The Russian Sicily

The unfolding of Russia's 'Great Criminal Revolution' by Roman Bessonov

The fo llowing is the second and finalpart of an analysis on tional and regional conflicts. Chechnya, the firstand most outstanding example of Russia' s Yeltsin's coming to power in August 1991 was not a "Great Criminal Revolution," where fighting has already result of a decision by some "unanimous majority" in the claimedover 40,000 lives. Part 1 was in last week's issue. Central Committee of the Communist Party of the Soviet, Union (CPSU). Actually, that was not even the case with Moscow politics Gorbachov in 1984-85. But more crucial changes between Recently Gen. Lev Rokhlin, commander of one of the 1984 and 1991 affected the character of the power transition. two Russian militaryunits that proved able to score victories When Eduard Shevardnadze suddenly left his post as against Chechnya leader Dzhokhar Dudayev's forces, ex­ Soviet foreign minister in late 1990, it was already clearto plained the reason for the outcome (or the half-outcome, the upper echelons of the U.S.S.R. leadership that some­ more precisely) of the war in one sentence: "Dudayev was thing would happen in the summer and autumn of the next relyingupon Moscow, his peoplein Moscow, but they could year. That is when CPSU funds were hurriedly placed in not help him." many banks and into many kinds of business. The last Cen­ This usually untalkative general did not mention support tral Committee of the CPSU evidently had a replacement from Afghanistan or Iran, from Lithuanian and Ukrainian for Gorbachov ready; in May 199" according to unofficial radical nationalists, or from supporters of Dudayev in the sources, Shevardnadze was supposed to become his succes­ United States. The "Moscow factor" in the Chechnya events sor. Even after the "August Revolution" of 1991, Kremlin has to be examined in earnest. intriguer Aleksandr Yakovlev said at a round table of activ­ Not only ordinary Russians, but even members of the ists from all political parties: "We have saved not the Presi­ Russian Federation Council (the upper house of Parliament) dent [Gorbachov] but the status of the President [of the are puzzled. Why, they say, if it was desirable to prevent Soviet Union] ." Chechnya's separationfrom Russia, wasn't it stopped at the Thus the secret meeting ofYakovl ev, Yeltsin, Aleksandr outset, when Dudayev declared independence? Why not Rutskoy, Shevardnadze, and Gavriil Popov in the White defeat him before he created his own army, why not block House (the Russian Parliament building) as they waited for the fuel supplies to Grozny, why give him arms, including it to be stormed on the night of Aug. 21, 1991, was not the heavy artillery and aviation? moment when the final decision .was made. Only several People who ask such questions seem to have forgotten days later, after three sudden deaths--of CPSU financial what the realsituation in Russia was when Dudayev declared manager Nikolai Kruchina, Soviet Internal Affairs Minister Chechnya independent. This was in September 1991-after Boris Pugo, and Marshal Sergei Akhromeyev; after Gorba­ Boris Yeltsin had won power in Russia, but when Mikhail chov, returned from his detention by the coup-makers' forc­ Gorbachov was still President of the U. S . S. R. It was before es, made two speeches within an interval of one day, in the the Belaya Vezha agreement (which created the Community first of which he still spoke aboqt a "communist perspec­ of Independent States), among the Presidents of Russia, tive," while in the second only about the "free market" Ukraine, and Belarus, when it became finally clear that economy; and after the CPSU was at last dissolved-only Gorbachov had no entity over which to rule any more. It then did it become clear that Yeltsin was top man in the was when Yeltsin, lacking as yet any reliable team of his U.S.S.R. and that Gorbachov would be the last President own, had to use his unqualified and inexperienced people of that state. The CPSU was the last political structure from the Ural Mountains city of Sverdlovsk (where he had holding the remainder of the U.S.S.R. together. There were been a Communist Party official) to solve complex interna- other structures, not yet split up-including the army.

EIR May 5, 1995 International 35 exerted control now not with the mechanisms of "party FIGURE 1 will," but with financial nooses, unsupervised and feeling Chechnya and the Transcaucasus region no responsibility for the development of industries, infra­ structure, science, and social aid. They were busy dividing up money, traveling abroad for "business trips" and again sharing money, lobbying their relatives and again dividing up money, selling raw materials abroad and real estate and again dividing up, dividing up, and dividing up money, converting and reconverting former state property. Where they could not manage for themselves, they hired bankers to "turntheir money around," for a fast profit,making Russia "the country of banks." They hired' KGB officers to acquire information about rival monopolies. Others hired pure crimi­ nals and energetic young fellows right offthe street as debt­ collectors. They were following Gorbachov's instruction, borrowed from the Soviet leader Bukharin in the 1920s: "Enrich yourselves!" Foolish democratic activists, meanwhile, were certain that anybody would be able to get rich, just as soon as "radical reforms" were in place. When Gaidar became prime minister in November 1991, he just did what his predecessors had done, converting the Russian ministries into private companies and trying to con­ centrate more capital in new locations that his government could control. The economic liberalization, as well as the tax reform, were designed to undermine existing powerful The new pillars of power rivals. Gaidar relied on these tested methods, creating new How was it that the system of all-Union ministries, the unofficial monopolies. His close friends called him an "insti­ powerful and numerous structures through which the Soviet tutionalist" rather than a monetarist, since he institutional­ economy was organized, gave up so quickly, without any ized existing criminal relations. resistance? They didn't. By this time, they had already been His and Y eltsin' s careers also depended on the Interna­ transformed into semi-private commercial structures. This tional Monetary Fund (IMF). But he needed more money, was part of Gorbachov's reforms, which had fostered the from any source. Gaidar had an interest in money-making creation of a number of powerful concentrations of capital . by any means, e.g., from a Chechen invention-the false As events unfolded, these became the basis for a nomenklat­ aviso (banking letter of advice). Gaidar forced the entire ura-based opposition to Yeltsin, who meanwhile relied on productive economy into crime , because his tax law could other sections of the nomenklatura, the old Soviet hierarchy. not be obeyed without hiding income. He criminalized the This was the political basis for the future activities of entire society. Gaidar was a continuer of the Great Criminal Yuri Skokov, Aleksandr Sterligov, Arkady Volsky, and Revolution, his father being Gorbachov and his mother being others who not only opposed the radical liberalizers around the IMF. Prime Minister Yegor Gaidar, but eventually Yeltsin's own authority and power. (This did not, however, happen right A Soviet oil man away, for Yeltsin tried to satisfy their demands as long as These Moscow notes are a necessary introduction to the he could.) third, most important aspect of the Chechen question, set This was the source of power for Yuri Luzhkov, now against the total political, economic, and moral crisis that mayor of Moscow, whom Yeltsin was forced to appoint bred the Great Criminal Revolution. instead of the inexperienced Gavriil Popov, who too openly Historians of Chechnya are quite right when they say that tried to build up his own financialempire , also on the base a taip (a tribal formation) is not a criminal structure, but a of real-estate speculation. mode in which different groups of one people live together, This was the source of power for Yaragi Mamodayev understand each other, and share territory and influencewi th­ in Chechnya. out using force. It subsumes a mechanism for talks, or negoti­ This was the source of power for the "Great Criminal ation, which is also utilized in criminal relations, and in Revolution." The unofficial monopolies, left to their own geopolitics. The special condition, however, is that when devices, were feeding themselves and not the country. They money and personal ambitions become more important than

36 International EIR May 5, 1995 the fate of the country and its people, criminal relations and Kabardino, or, otherwise, ac�s Georgia. They were ensue. interested in exploiting any suitable bccasion to take power, The nationalist movement in Chechnya was criminalized acquiring the oil-refining industry �d local oil extraction. when it became more important to amass big money, than They were clever enough to hide their appetites behind a anything else. screen of anti-communist rhetoric, p�aying for time and addi­ Doku Zavgayev (appointed First Secretary of the tional support to seize power. Chechen-Ingush Regional Committee of the CPSU in July On Aug. 19, 1991, a great ralty convened in Grozny 1989) was not the worst choice to rule Chechnya. He was under nationalist, anti-communist slogans. It lasted for two the firstCommunist Party official in Russia to have allocated weeks, being declared the United Congress of the Chechen a portion of party property for the use of children and the aged. But he had power-hungry rivals, eager to control the oil and refined petroleum products in the whole republic. There are two great lies aboutthe Yaragi Mamodayev (who now heads "the Chechen gov­ Chechnya tragedy. Thefirst ernment in exile" in London) had spent many years in Mos­ is that cow, at the U.S.S.R. Ministry of Oil and Gas Extraction. there are patriots on one sideand He was quite happy away from home. But when the ministry gangsters on the other. The second is system collapsed, a nomenklatura man accustomed to his that there are aggressors perquisites was not about to give up what he had. He sought on one side power and money, and the same privileges, but in another and a courageous, bold,freedom­ way. And he saw a brilliant opportunity to keep all this­ lovingpeo ple on the other. It is not not as a small parasite feeding on a lot of people, but as true. thefirst parasite on his own people. He launched a new career. Mamodayev's people took absolute control at the All­ People's Congress of Chechen People in May-June 1991. People. Then, Zavgayev, chief of the Chechen Supreme So­ Yeltsin was not yet President of Russia. The future Chechen viet, was kicked out of his building, ;with other councilmen. leadership, formed at this time under Mamodayev, was thus This "people's revolution," sponsored by Mamodayev, not controlled by Yeltsin. Nor was it loyal to Gorbachov; took place on Sept. 6, 1991. Days tater, Yeltsin's officials later, Dudayev would say he regretted the destruction of made their first visit to Chechnya: State Secretary Gennadi the U.S.S.R., but this is pure populist posturing, to attract Burbulis, head of the Ministry of�s and InformationMik­ communists and pensioners. hail Poltoranin, Deputy Foreign Minister Fyodor Shelov­ Zavgayev was making mistake after mistake, trying to Kovedyayev, special presidential aiiviser on national rela­ please everybody. As a result, he looked weak and got a tions Galina Starovoitova, and futuft Speaker of the Russian reputation as a local Gorbachov. Federation Supreme Soviet Ruslam Khasbulatov. Eduard For Mamodayev, as for others who built financial clout Shevardnadze also visited Chechnya. Burbulis and Poltora­ on the basis of their former jobs, a former regional CPSU nin promised Dudayev a higher general's rank. leader like Yeltsin was no great authority . Becoming the Khasbulatov took Dudayev at his word, that he would lift effective leader of an independent state, he considered him­ the blockade of government buildings, the former Chechen self Yeltsin's equal. But rather than run for President of Supreme Soviet and the TV station.·With Khasbulatov's as­ Chechnya himself, he looked for a younger and easily ma­ sistance, former Supreme Soviet mdmbers met to elect 35 of nipulated man. He found him in Gen. Dzhokhar Dudayev, their number to a Temporary Suprerbe Soviet, which was to one of the two Chechen generals in the Soviet Armed Forces, conduct free elections to the new Chechen Parliament on an emotional person and a good orator. Nov. 18, 1991. On Aug. 19, 1991, Zavgayev made his last, fatal mis­ take-he supported the coupsters of the State Committee Independence declared for the Emergency (GKChP) and not Yeltsin, being under On Oct. 8, 1991, however, Dudayev dissolved theTem­ the illusion that there still was reliable central authority. porary Soviet and set parliamentaryand presidential elections This spelled the end of his career. in Chechnya for Oct. 27. Then he declared he had been elected President, although only abOut 17% really voted for Power shift in Grozny him. Next, he declared Chechnya independent, and appoint� The leaders of the separatist opposition in Chechnya al­ ed his government. The prime minister was Yaragi Mamo­ ready in 1991 had their eyes on the Baku oil agreement, dayev. expecting it to be signed very soon. They knew that the most On Nov. 6, 1991, Yeltsin ordered a state of emergency probable oil transportation route would lie across Chechnya in Chechnya. The order was sabotaged.

EIR May 5, 1995 International 37 contradictory as it might seem .. Yushenkov was never a recpgnized human rights ac­ 'Humanrights ' protectors tivist before the Chechen war. As with many middle-rank liberal functionaries, he was grlUlted a building for some play a double game "democracy-promoting" foun$tion in 1992, when he also took part in setting up the �ussian Union of Cossacks Five months after war flared in Chechnya, Russian politi­ Troops. His heroism was furth¢r displayed in his hearty cians and journalists learned that President Yeltsin had support for Y eltsin' s violent abplition of the Russian Su­ issued a decree earlier than his Dec . 9, 1994 order No. preme Soviet (Parliament) in October 1993, and then in 2166. His secret statement No. 2137, with a description organizing the electoral campaign for Yegor Gaidar's similar to No. 2l66i was dated Nov. 30, 1994, before Russia's Choice liberal bloc lin November-December his ultimatum to stop the fighting in Chechnya expired. 1993. Statement No. 2137 formed a secret group under Gen. Pavel Grachov, the defense minister, to "direct the actions A sudden alliance to disarm and dissolve armed formations" in Chechnya. ManyRussians were astonisl).ed to see Gaidar's people, On the secret group were Speaker of the Federation Coun­ and radical left,Working Russia Ilctivists, together atpublic cil Vladimir Shumeiko and Speaker of the Duma Ivan rallies in Moscow and St. Petersburg, in support of the Rybkin, as well as the heads of the defense committees in "Chechen national-liberation mqvement." It was a sudden those respective houses of Parliament, Pyotr Shirshov and alliance begging attention not to Ote colorof banners,but to Sergei Yushenkov. the geopolitical background of tqe Chechen affair. Thus, only on April 13, 1995 did it emerge that Yus­ But the main part in the h"man rights performance henkov, probably one of the most violent opponents of was played by the Moscow mass media, controlled by Grachov and President Boris Yeltsin on the Chechnya Moscow Mayor Yuri Luzhkovi and his close associates question, was a member of the secret group overseeing from Vladimir Gusinsky's Most Bank group. This finan­ the start of the war. On Jan. 15, 1995, Yushenkov told a cial group was also involved with the arms deals of "Ros­ Russian TV reporter that he was not alone in his opposition vooruzheniye." In the summer: of 1994, it was already to Grachov and in backing the actions of the Russian clear that Gusinsky's networks' were deeply involved in military in Chechnya. He declaredthat the Bertrand Rus­ geopolitical games around Chedhnya, even as they devel­ sell Foundation in Brussels, Belgium had launched a spe­ oped a widening system of contacts in the state leadership, cial commission to investigate human rights violations in including high officials in the Army and counterintelli­ Chechnya. Participation in launching a war and then a gence agencies, prepared to intrigue against Yeltsin. On public struggle against the same war, however, are not as July 30, the Most Bank-financedNTV television program

Khasbulatov related what happened, in a Jan. 27, 1995 first flop in Chechnya. The fact that Gorbachov had greater interview in Smena:"Sev eral planes with unarmed comman­ influence on the Army than Yeltsin is easily explained: Not dos arrived at the Grozny airports , while the weapons went yet being "commercialized," RlJssiantroops retained formal to . . . Mozdok, North Ossetia. For two hours, the soldiers discipline, and obeyed U. S.S .Rt commander Shaposhnikov, wandered around until they got an order from the Defense who was of higher rank than RU$sian Defense Minister Pavel Ministryto flyback. [Minister of Nationalities Affairs] Shak­ Grachov. bray asked me to flyto Grozny myself, explaining he 'could Yeltsin's unlucky attempt to defeat Dudayev was evaluat­ not find Yeltsin.' I called Arsanov, the head of Grozny ad­ ed by radical liberals, especiaJ.ly by the self-styled "anti­ ministration. He said that the streets of the town were lifeless fascist" wing of Democratic Russia, as a "gross political and Dudayev had fled. Dudayev really disappeared for some mistake." The most pro-Dudayev person in the liberal circles three hours but then was seen again, when it was clear that the was Galina Starovoitova, who had been active in theCauca­ state of emergency had failed. Then I was told that Marshal sus region since her involvement in support of the Karabakh Yevgeny Shaposhnikov and General Barannikov (internal movement in Armenia in 1988. (Although vociferously pro­ affairs minister at that time) refused to lead troops into the Armenian and anti-KGB , Starovoitova suddenly started city, citing Gorbachov. I called Gorbachov and he told me speaking out in favor of Azerbaijanwhen Heidar Aliyev, the that he had indeed ordered the troops not to be sent. " former Azerbaijan KGB chief �nd co-owner of the Caspian Thus, the dual-power situation-Y eltsin as President of oil consortium, returned to power.) In 1991, she wanted to Russia, Gorbachov of the U.S.S.R.-determined Yeltsin's divide Russia into 72 separate countries; in the summer of

38 International EIR May 5, 1995 that he had unofficial links to the s$e arms-tradingcompa­ gave the floor to Sergei Filatov to declare that "there are nies and joint ventures in the Baltici states as Dudayev had. healthy forces in the Chechen opposition to Dudayev, and Gaidar's team was more specifiQally involved in another Russia should support them. " notorious Chechen venture, the infrujnousfalse aviso. Crimi­ If British Petroleum and/or other interests wished to nal operations with huge amounts �f money that appeared block the Baku-Grozny-Novorossiysk oil pipeline proj­ "out of thin air" started in March-April 1992, when it became ect, they would welcome not a quick and effectivemilitary clear that Gaidar's tax policy wasn't working, and the pay­ operation in Chechnya, but a long and bloody war that ments crisis could cause a social explosion. would destabilize the situation in the whole surrounding The false letter of advice issue was exposed while Georgi region. Both Yushenkov and the Luzhkov-Gusinsky me­ Matyushin was Central Bank directCJ)r; after his replacement dia have given a boost to such geopolitical hopes, for the by former U.S.S.R. Bank Director Viktor Gerashchenko, Caucasus and the Caspian Sea region. nothing more was heard about Matyushin. The mechanism The tilt toward arrangements preferredby London t?x­ of producing money "out of thin a1ir" still functioned, but tends tot he north, as well. When the European Bank for was used only by a limited number of special channels. Reconstruction and Development refused to invest in the This may explain the continuing ma1ierialand propagandistic Primorsk port project on the Baltic Sea, one potential support for Dudayev from certain Moscow financial clans. terminus for the Caspian Sea oil, its place was promptly The more than 4 trillion rubles, by preliminary accounts, taken by the Anglo-Dutch Shell Oil Co. derived from false aviso operations, along with the profits Controlby British oil firms ofthe entire oil route from from unofficial arms sales, sufficedto create a powerfulpro­ the Caspian Sea across Ukraine , Belarus, and Latvia to Dudayev lobby in the Russian leadership. theBaltic , would reproduce the infamous East India Com­ In early 1992, Shaposhnikov, tl).en commander-in-chief pany that was designed not only for trade , but for long and of the Community of Independent States (CIS) forces, re­ bloody wars "in the queen's name." Today's oil pirates, ported to the Russian leadership that Dudayev had suggested assisted by the corrupt Russian elite, have created the sharing troops in two parts . Defens¢ Minister Grachov later bloodbath in Chechnya and will not hesitate if they have claimed that he had withdrawn all the weapons fromGrozny. an opportunity to create bloodbaths in other countries and But the most reliable version is that none of them were regions, too. -Roman Bessonov withdrawn; when they were later sold, some high-ranking officials in Moscow shared the money, maybe in two parts. When the two former state arm$ trading companies (the Sources former Chief Engineering Departrntmt and Chief Technical 1. Anatoli Stepovoy, "The War in Chechnya Began under a Secret period Statement of Yeltsin," ehas Pik, April 14, 1995. Department of the Defense Ministry, aftera two-year 2. "Government Anxious About Future of Primorsk Port Project," of being half-privatized and, consequently, tremendously DelovoyPeterburg, March 31, 1995. corrupted) were finallyunited into the State Rosvooruzheniye ("Russian Arms") Concern in 1993, Marshal Shaposhnikov was appointed the President's representative to the firm. It was later reported that First Vi¢e Prime Minister Oleg 1994, she spoke of "the peaceful returnof Crimea to Russia." Soskovets and Chairman of the Federation Council Vladimir She often visits London, where her son already lives, and Shumeiko were competing for influencein the concern. The Washington. former director of a military plant, Shumeiko was under Starovoitova insisted that the state of emergency be investigation by the Supreme Soviejt for large-scale corrup­ dropped, held phone talks with Dudayev, and explained to tion, in the summer of 1993. This resulted only in the the mass media how "gallant" and "democratic" this person resignation of Internal Affairs Mini$ter Andrei Dunayev and is. (Three cut-off heads of Dudayev's opponents were dis­ Security Minister Victor BarannikQV; Shumeiko did not re­ played in Grozny in November 1993 as a symbol of his sign. Subsequently, Yeltsin suppo� him to become chair� power,perhaps also illustrating his gallantry.) man of the Federation Council, �d for a while he was spoken of as a possible successor to Yeltsin. The arms caches Supplies of weapons were left in Chechnya by with­ Shumeiko and Dudayev drawing Russian troops. Recently, Shaposhnikov's name Shumeiko has evidently played:an important role in the has figured foremost in this connection. But when Shakhray Chechnya events and in the personal fate of Dudayev. directly accused him during an Ostankino TV program in In March 1992, when the anti�Dudayev opposition in January 1995 , the marshal replied that Grachov and Gaidar Chechnya was planning its firstdemonstration to protestcor­ wererespon sible. The freshly appointed Gaidar had not been ruption and unemployment, the separatist Dudayev received in a position to initiate such an arms deal, but it later emerged 150 million rubles from Moscow. In August 1992, a week

ElK May 5, 1995 International 39 before planned opposition actions, 500 million more rubles to start already in 1990, except that a group of high-ranking came from Moscow. In December 1992, Mamodayev him­ criminal authorities gathered ih Sukhumi and decided that self went to Moscow, this time seeking 2.5 billion rubles. the tourist season would be metre profitable than a war. The The opposition was preparing a republic-wide strike. The war came in 1992, started su�denly by Abkhazia with its real problem was the deepening economic disaster, the star­ declaration to join Russia. Afte!r the bombing of Poti port, it vation of old people who hadn't received their pensions for was clear that the Caspian oil wDuld not flowacross Georgia. half a year, while casinos were booming and anybody who It was also clear that not only the Russian leadership stoodto had the money could travel anywhere, to Saudi Arabia or the gain from the Baku-Grozny.Novorossiysk oil transport Emirates, even without a passport. The republic had become route, but also the elites of the North Caucasus republics the most criminal region of Russia. (Adygea, Circassia, Balkaria, !forthOs setia). It's no wonder they stayed loyal to Moscow. ' There were indications als<) of outside interests at work Yegor Gaidarfo rced the entire in the region. The emergence Of ideas such as "Greater Cir­ cassia" and "Greater Adygea" smacks of British intelligence, productiveeconomy into crime, and may have had encouragem�nt also from Turkey or Saudi because histax law could not be Arabia. Dudayev got little support from nearby Muslim re­ obeyed without hiding income. He publics, except for some signs (/)fsympathy for him in Dage­ stan. Therefore he sought support from Turkey, which has criminalized the entire society. its own reasons for opposing th¢ northernoil shipment route. Gaidar wasa continuer qfthe Great Turkey does not support him diirectly, but the pro-Dudayev Criminal Revolution, hisfather being activity of the Bos Gurd (Gray !Wolves) radicals in Azerbai­ jan is a sign of indirect SUpport4 Gorbachov and hismother beingthe International MonetaryFund. Dudayev in scandal In August 1994, some months after his brother's cut-off head was displayed in the centr... square of Grozny, Chechen opposition leader Ruslan Laba�anov publicly revealed some And, again, Mamodayev got the money, even despite secret Dudayev documents: Operation "Cobweb." Transpor­ the scandal with the false letters of advice. When, finally, tation of oil products to Minsk, Bryansk, and Alma-Ata. Five Russian Supreme Soviet member Isa Aliroyev tried to find billion rubles [at 1992 rates!] d�posited in a bank in Grozny. the source of these funds, he realized that the trail led to the Oil products disappear. Duday�v orders a criminal investiga­ First Vice Prime Minister of the Russian Government(today tion. Investigators are killed, c*se closed. Speakerof the Federation Council) Vladimir Shumeiko. Another operation: 40 towns. A total of 640 million ru­ bles and $2 million. Money , received, goods disappear. Region in flames Again, investigator killed, case closed. Late autumn 1991 was a peakperiod for separatist activity Operation "Impulse." In Dudayev's handwriting: "Close in the Caucasus. The Chechen opposition was trying to make the case." Over two years, such operations have involved an alliance with Georgia under Zviad Gamsakhurdia. Another $25 billion. group of Chechens was trying to ally with Adygea and Cir­ On March 20, 1993, some 18.2 tons of paper money with cassia, supporting the idea of "Greater Shapsugia" (Adygea). a total face value of 2.5 billionl rubles were loaded onto two Here, Dudayev and Khasbulatov's interests intersected airplanes and sent to Chechnya from Tallin, Estonia. The old for a short time. Khasbulatov, a descendant of a Circassian­ type of bills were to be exchanged for the new type. Nothing origin taip, later supported the idea of a Confederation of came back. Highland Peoples (Adygea, Kabardino-Balkaria, Karachai­ Once, Chechen officialsthemselves were fooled by a Mr. Circassia, Chechnya, and Ingushetia), while Dudayev tried to Krivoshapkin, who presented himself as an administrator of create a wider bloc under his own rule-the Caucasus Home, a nonexistent "Culture and Trade Center" in Yakutia, Sibe­ including both Georgians and Abkhazians. He failed, even ria. He offered five tons of gold for 2.78 billion rubles. He before the outbreak of war between Georgia and Abkhazia. took the money and was not se¢n again. The Adygeian-Circassian union has a religious base that The easiest thing in Chechnya was to register a gun. You is quite different from Dudayev's Kadireia tariqat (way). just said, "I bought it at a markel," and it would be registered. After Dudayev allied with Gamsakhurdia, the Balkar, Cir­ Thus, it is no exaggeration tpcall Chechnya a "free crime cassian, and Adygey leadership stopped supporting him. zone." When Dudayev approaqhed his radical liberal friends The situation in Georgia was crucial in 1991-92. There in Lithuania and said, "We are your gate to the south and you were reports that the Georgian-Abkhazian conflictwas about are our gate to the West," everybody knew what he meant.

40 International EIR May 5, 1995 Drugs were sold openly in Chechen markets. More and more but rather because Shumeiko was sai tohave beenintriguing 4, trains passing from Russia to Azerbaijan were robbed-559 against him constantly.) of them in 1993, according to data from the Defense Commit­ On May 27, 1994, an unknown tFrroristtried to kill Du­ tee of the Russian State Duma. dayev; Dudayev used the attack to s�art an anti-Russia cam­ The more criminalized Chechen society was and the more paign. He wrote a harsh letter to Yeltsin, whereupon Yelt­ chaotic its economy, the more tense the inter-taip relations sin's chief of staff Sergei Filatov, Qaving backed Dudayev became. In a criminal atmosphere, the authority of a person until that moment, warned that "a Sh¢vardnadzevariant may or a taip was determinedby his or its amount of stolen money. happen in Chechnya"-meaning tha_ Zavgayev might return Suspicions, envy, and hate flourished. The only way to get to lead Chechnya, as Shevardnadze had in Georgia. Two money was through speculation. Cultural life lay in ruins. months later, Avturkhanov (a mem�er of Zavgayev's taip) False independence, built upon doubled and tripled met with Filatov. Avturkhanov now headed the Temporary fraud, split the society. The richest taips were satisfied with Council, an institution the federal authorities in Moscow the way of life as it was, but each wanted more influence. supported from this point on. Ancient traditions that made taips a mechanism of concord On Aug. 4, 1994, the Temporll1l' Council issued a "De­ were ruined. That is why Dudayev's power eroded. And that cree on Power," providing for free elections and an "agree­ is why the inter-taip war became a Russo-Chechen war, when ment on distinguishing authorities" between Russia and one of the taips called for help from Russia. Chechnya. In the spring of 1993, Dudayev's position was deteriorat­ In July and August, Grozny was visited by the self-styled ing. After a huge opposition rally, he dissolved his Parlia­ Russian nationalist General Sterligov and by Nikolai Kosit­ ment on April 17 (just as Yeltsin was to do in Russia, five syn, an aide to Cossack leader Atamap,Ratiye v. (The Russian months later) . The Parliament resisted and called a referen­ Union of Cossack Troops, formerly led by Ratiyev, was dum. On July 4, Dudayev's people destroyed the election originally formed as a guard servic� for "democratic busi­ commission and referendum ballots. An opposition rally was nessmen. "It is an alternativeto the Cossack Union headed by crushed with armored personnel carriers . Ataman Martynov .) Dudayev and Kositsyn, with Sterligov's Dudayev's cousin Shamil was killed. Dudayev dissolved assistance, signed a treaty under which the Cossack Troops the Town Assembly. Its chairman, Beslan Gantemirov, be­ and the Ichkeria Republic (Chechnya) promise to "follow came his enemy. Four taips summoned Dudayev to a shariat and guard arms belonging to each other if they are for the trial. He would not come. Then, one of the opposition lead­ defense of one of us." Stopping in the southern Russian city ers, UmarAvturkhan ov, declared the Nadterechnaya district of Rostov, Sterligov tried to convince the Cossacks that they to be the Terek Chechen Republic. also should establish their own independent republic. From that point, the following events unfolded: Political solution scrapped Aug. 11, 1994: Dudayev announces the beginning of the That situation calmed down until early 1994, when Av­ military mobilization. turkhanov visited Moscow and met Sergei Shakhray, the Sept. 1-5: Fighting between Dudayev's people and the Minister of Nationalities Affairs. Shakhray agreed to pass a opposition begins. law in the state Duma to "regulate relations between the Sept. 10: Dudayev celebrates the third anniversary of ruling bodies of Russia and Chechnya." It resembled the independence. treaty signed previously by Russia and Tatarstan. Sept. 20: The Baku oil contract is signed. At the same time, Shakhray and Ramazan Abdulatipov Sept. 28: The first Russian spet�naz soldiers are seen in (a prominentRussia n politician, representing Dagestan in the Chechnya. Federation Council) suggested holding a "round table" of Sept. 30: Opposition helicopters attack Dudayev's political organizations of the North Caucasus. Dudayev airport. called Shakhray, saying he would speak only to Yeltsin him­ Oct. 6: Russian Defense Minister Pavel Grachov meets self. Here, suddenly, Shumeiko interfered; he said that Yelt­ in secret with President of Kabardino-Balkaria Valery sin should recognize Dudayev as President. Shakhray replied Kokov. that it was impossible to override the statement of the (by Oct. 13: Zaindi Choltayev, head of administrationof the then no longer existing) Russian Supreme Soviet, which had Temporary Council, meets Sergei Filatov in Moscow. refused to recognize Chechnya's independence. He insisted Oct. 15: Opposition troops freely approach and enter the that the Russian government should pay pensions to aged Presidential Palace in Grozny. The palace is empty. They people in the Nadterechnaya district, and said that only free withdraw and stop only 40 kilometers from the town. This elections would solve Chechnya's problems. Several days foray is announced as a general rehearsal for the decisive later, Shakhraysuddenly resigned from his nationalities post, battle with Dudayev. being replaced by Nikolai Yegorov. (Unofficial sources say Oct. 19: A sudden attack by Dudayev's troops. Beslan that Shakhray's resignation was not because of Chechnya, Gantemirov's unit is dissolved. Urus-Martan is occupied.

EIR May 5, 1995 International 41 Coming soon in EIR

Nextweek' 8 EIR will featurea SpecialReport on Britain'8 warsagain!!t the United States in Asia: in the 189Os, the 1920s, 1940-55, and again today. 'the conflict we are seeingnow betweenLondon andWashington , is a conflict between the Britishmonarchy and the UnitedStates wh ich has been under way since 1763. The very existence of th e United States has always depended upon Americans recognizingthat our pri maryadversary on this planetwa s; . and is, the British monarchy. In this lengthy feature package, prepared under the linRoosevelt ruined Churcb ill ' plflns; direction of Lyndon H. LaRouche, Jr. , we shall analyze: • WarPlan Red and WarPI �Orange: U.S . warpJans i . • The U.S. fight with the British Pacific Empire in during the 1920s and later, to/defend the United States the 19th century: Commodore Perry , Abraham Lincoln, against the British by annexing Canada, as Lincoln had Henry Carey� and E. Peshine Smith. intended to do afterthe Civil War; • WinstonC hurchill's Pacificwar against the United ' • Britain's Pacific war against the United States to­ States, 1941-55, and how Douglas MacArthur and Frank day: case studies of Japan and Korea.

Oct. 21: Umar Avturkhanov asks Yeltsin, Chernomyr­ own pleasure , don't care for others and take as much as din, and Grachov to intervene into the situation and to stop you can in any way possible-began to develop even before the slaughter of peaceful inhabitants. Gorbachov, during the so-called "stagnation" period of the Late October: A so-called "transport blockade" is begun 1970s and early 1980s, when leaders who could scarcely under the supervision of Filatov, Shakhray, and Presidential speak were unable to give the people any impulse of develop­ adviser Emil Pain. Troops go around chaotically, appearing ment. How could they, if they were just living for their own and disappearing again, leaving nothing really blockaded. pleasure beyond the high fences of party dachas? That is Foreign observers can't make out what is going on. the moral origin of Yegor Gaidar, a nomenklatura son of a Nov. 18: Shakhray is removed from all activities con­ nomenklatura general, brought up with no concern for his cerning Chechnya. In Mozdok, General Kotenkov forms fellow citizens. That is the origin of the psychology of power ' nine battalions of Chechen volunteers. based upon having property the proprietor never created. Nov. 26: Opposition forces attack Grozny from nine di­ That is the origin of the criminal psychology, war psycholo­ rections. The battalions are not coordinated, commanders gy, and geopolitical psychology. have no maps of the town. The tanks go forward, leaving the There are no heroes here. Yeltsin is no betterthan Duday­ infantry behind. As they stop by the Presidential Palace, ev, and Mamodayev no worse than Shumeiko. Relations are Dudayev's soldiers shoot at them from the back with grenade of the same quality in the Russian and the Chechen elites­ launchers. The infantry enters the palace and begins to loot. relations of utmost mistrust, envy, and hatred. They retreat, abandoning tanks. There are two great lies about the Chechnya tragedy. The Nov. 29: Yeltsin gives an ultimatum to both sides, threat­ first is that there are patriots on one side and gangsters on the ening a state of emergency. other. The second is that there are aggressors on one side and Dec. 9: Yeltsin issues decree No. 2166 on "reestablishing a courageous, bold, freedom-loving people on the other. the constitutional order and disarmament of the illegitimate It is not true. The incessant war that goes on in Russia military forces in the Chechen Republic." now is a war of half-criminal clans,just the same as in Chech­ nya. It is a war of one Russian nomenklatura clan manipulat­ The liberal 'moral creed' ing its nomenklatura people in Chechnya against another The Sicilian mafiawould have never appeared, ifItaly itself nomenklatura clan with different allies in Chechnya. The were not ill at that time. The chronicle of events in Checbnya tragedy is that neither those fighting, nor poor, good people proves best of all , that it was the total crirninalization of post­ killed on both sides, realize that all of them are manipulated Soviet society that made Checbnya the Russian Sicily. by the same source of world evil, though in this case it is The liberal "moral creed"-live for yourself, for your most evident.

42 International EIR May 5, 1995 On the 50th Anniversary ofV-E Day

Celebrate the victoryove r fas ci$ID, by destroying fas cist poliCies tdday by Nancy Spannaus

Mrs. Spannaus is president o/ the U.S. Club o/ Life. The toll from these fascist policies gets !worseI by the day. bankrupt global financial system, presided over by the Inter- As the world gears up for celebrating V-E Day on May 8, national Monetary Fund (IMF) and theWorld Bank, is dictat­ the 50-year anniversary of the military defeat of fascism in ing conditions to nations everywhere! that condemn peopleto Europe, it is high time we carried out some serious reflection death in order to pay the debt. The fascist cultural policy, on the crimes of the Nazis. Not the normal kind of hand­ which definesthe human being as a consuming beast, is lead­ wringing on the horrors of the past, or revenge against 85- ing to additional massive sacrifice ofhuman life in widespread year-oldformer concentrationcamp guards. Let me be blunt: practice of euthanasia, abortion, drug-use, and other degra­ We must stop patting ourselves on the back at a point where dation. we are condoning the same kind 0/ crimes coming from the To tliose who now find themselves shocked at the mass same kind o/ ideology promoted by leading institutions today . death in Africa, or the outright murderof helpless individuals We must stop the perpetration of Nazi-like crimes today. in nursing homes in order to cut costs, we can apply the Now, I am well aware that the crimes to which I refer, dictum ofthe Nuremberg trials after World War II: You knew, are not necessarily the ones which others proclaim. Among or should have known, that your policies would lead to such the mythologies which have been spread since World War II crimes against humanity. We warnedyou fromthe late 1960s have been the identification of fascism with nationalism, forward of what the consequences of IMF conditionalities militaryestablishmen ts, "authoritarianism," and even certain would be . We warnedfrom the 1970s forward,that Malthu­ specific nations, like Germany. Those who made up these sian ideology would lead to genocide as well. stories, like Prince Philip or Margaret Thatcher, are covering We could once again review where these fascist policies up for their own crimes against humanity. have come from-showing the continuity of the policymak­ Lyndon LaRouche and those of us who have worked ers from Hitler's period to today. But today, let us concen­ closely with him for decades now, have pointed to two major trate on the two policy areas where our warnings have been sewers of fascist policies today-the dividing lines between the loudest: economics and health care. Let us hold up a those who value human life, and those who seek to tum man mirrorbefore you, and demonstrate without a doubt that we into a beast. LaRouche's first economic forecasts warned in as a civilization are now repeating the very policies which the 1950s of the resurgence of fa scist economics, this time led to the necessity for the worldwide mobilization to defeat on a world scale. The practices of austerity, which used up Hitler 50 years ago. Then let us recommit ourselves to de­ human labor as the Nazi concentration camps did, were on feating fascism, by stopping these . anti-human policies in the agenda of the world's leading financial institutions, their tracks. LaRouche charged, if scientific and technological progress were abandoned. Nazi euthanasia: the Earle Spring case In 1982, LaRouche's wife, Helga Zepp-LaRouche , There is no question but that the major industrialized launched the Club of Life , an organization to fight such a countries of the world today are deliberately, explicitly reins­ fascist resurgence in other areas of policy as well-from the tituting the Hitlerian policy of Nazi euthanasia. This crime, cultural and social realms, to economics per se. The Club of for which the World War II victors tried Nazi doctors for Life set out to destroy the rationale for all policies which "crimes against humanity" at Nuremberg, is now being ra­ relegated groupings of people to the status of "useless eat­ tionalized as economically, socially, or morally necessary. ers," and concentrated its sights against all its manifestations, The courts are approving it; the referenda("popular opinion") including cultural pessimism. are approving it; and some parliaments, such as that in the Not only were these warnings not heeded, but the grisly Netherlands and China, are doing the same.

EIR May 5, 1995 International 43 Associates of Lyndon LaRouche rally against the International MonetaryFund in Washington in 1983 . Many defenders of the "single issue" of the "right to life." support economic policies that are leading to the deaths of millions.

Lyndon LaRouche and the publications associated with LaRouche on the 'Right to Life' him firstraised a major alarm about this practice back in Janu­ As the Earle Spring case raged, and LaRouche' s associ­ ary 1980, in the case of a 78-year-old Massachusetts pharma­ ates sought support for his right to live, quite naturally we cist by the name of Earle Spring. Spring was ordered by Mas­ were in touch with organizations which claimed to be con­ sachusetts Probate Court Judge Sanford Keedy to be removed cerned with the fight for the Right to Life. To say that the from kidney dialysis treatment, medication, and the special response was disappointing, would be an understatement. diet he needed to survive-so that he might "die with dignity." Some leading individuals responded, but not the organiza­ While this practice was evil in itself, there was another tions as such. complication here. Earle Spring did not want to die! In the In response, LaRouche wrote a document entitled "The course of an international mobilization against the court deci­ Truth About the 'Right to Life,' " published in New Solidari­ sion, the LaRouche Presidential campaign was able to get ty newspaper on Jan . 25, 1980. The document identifiesthe nurses to interview Spring. In an affidaviteventually submit­ critical economic area of continuity between Hitler's fascist ted to the Massachusetts Supreme Judicial Court judge who crimes, and those crimes being committed in the area of ordered Spring to be placed back on dialysis, nurse Donna medicine today. We quote at length: McDonough put it this way: "The principle of the 'right to life' zoomed into impor­ "I asked him if life was good. He said, 'Yes.' tance as a major international issue during 1973 and 1974. "I asked him ifhe wanted to die. He thought for a moment This fightfor the principle of life was prompted chiefly by and said, 'No.' " the evil proposals of a United Nations-linked organization The Spring case contained all the elements which advo­ called the Club of Rome. cates of the Nazi practice of euthanasia champion today . "The Club of Rome commissioned an evil, fraudulent First, it was Spring's family which petitioned the court to report entitled Limits To Growth. The Club of Rome used take him off dialysis. Second, the excuse was that Spring that fraudulent report to support the argument that the human was not "mentally competent" to decide to live. Third, it population must be reduced to as little as 1 billion persons by was argued by some medical personnel that kidney dialysis about the year 2000. treatment had to be rationed, and that giving him the treat­ "In the context of that Club of Rome propaganda cam­ ment, as was eventually ordered by Judge Francis Quirico, paign, a variety of anti-life proposals were circulated by was "extraordinary ," too costly, and therefore unjustified. immoral professors and other influentials. Leading Club of Even at the time, LaRouche's fightto save the life of Earle Rome spokesman Aurelio Peccei promoted an 'obj ective dis­ Spring went againstthe pro-fascist tide. Other Presidential cussion' of the conditions under which cannibalism might be candidates refused to respond to LaRouche's plea to inter­ regarded as ethically tolerable, as a means to solve problems vene. The New York Times had already gone on record back of hunger. There was an attack, chieflyfrom leaders of the in May 1978 to the effect that "the effort to provide all the British medical profession, against the U. S. medical practice medical care anyone might want--or even need-is simply of 'overuse of kidney machines' to keep patients alive, and beyond the nation's resources." proposals for denying medical procedures to senior citizens

44 International EIR May 5, 1995 as a way of 'letting nature take its course' in cutting down "The supporters of the Club of RqJme andof entities allied that portion of the human population. . . . to the Club of Rome all premise their,arguments for genocidal "Despite the shift in public-relations posture by the Club of policies on the policy of 'zero' economic and technological Rome, that evil association continues the same genocidal doc­ growth. They argue , quite consistently , that without techno­ trine and practice to the present time . It is supported by such logical and economic growth the world cannot sustain its United Nations institutions as Unesco, Unitar, Unctad, Unido, present level of human population, about 4 billion persons, and by the World Bank of Kennedy ally Robert S. McNamara. let alone the 6 billion who should exist by the end of this "Because of the spread of such evil, genocidal policies century or thereabouts. Therefore , tl)eirargument continues, , throughthe 'conditionalities' policy of the International Mone­ in order to achieve the goals of ' zero growth, we must reduce taryFund and the 'appropriate technologies' policy of theWorld the world's human population to l�vels which can be sus­ Bank, the question of the 'right to life' has rightly become one tained without such necessary measllres as the development of the leading moral issues of political concern today . of nuclear energy. The estimate of the world population "The practical form the principle of the 'right to life ' which could be sustained without nuclear energy and other takes in political affairs is this. Positively, we who support advanced technology is somewhere ,between 1 and 2 billion the principle of 'life' say that we will tolerate no economic persons. Therefore , to achieve their economic utopia of ' zero or other policy, either nationally or internationally, which growth,' the human population must be reduced by at least requires or promotes genocide by any means or in any guise. one-half during the coming two decades. Negatively, all of those who actually support the principle of "Every proposal for eliminating human life-whether 'life' agree, we denounce as satanically immoral any political Peccei's earlier efforts to have canllibalism regarded as an figure or governmental administration which supports the ethical solution to the food-shortage problem, the euthanasia 'conditionalities' policy of the International Monetary Fund provision of various health bills, and increased emphasis on or the 'anti-technologies' policy of the World Bank and so­ abortion almost as a way of day-to-daylif e-are all products called Brandt North-South Commission. . . . of that economics-rooted determination to halve the human "In this context, the moral issues of abortion properly population by the year 2000 or thereabouts." occupy a prominent position. Unfortunately, some evil per­ sons who support every anti-life policy but abortion have How genocide would occur infiltrated the 'right to life' organizations in an effortto make LaRouche then noted how parallel this genocide is in abortion the only issue of those organizations. Such persons form with Hitler's, although in fact, Hitler's crimes are are to be denounced as either immoral fools or willful frauds. dwarfed in numbers of people killed. Abortion is a proper issue, but it is immoral to pretend that "The present-day model for reducing the world's popula­ abortion is the beginning and end of the issue of the 'right to tion by half or more over the coming two decades is Adolf life.' It is immoral to do nothing against the proposed geno­ Hitler's Nazi Germany . The 'fiscal austerity' policies intro­ cide of half the human population, and to defend only the duced to Germany by Nazi Finance Minister Hjalmar Schacht fetus inthe early term of pregnancy." were a form of economic cannibalism. An economy ruled by the kind of 'fiscal austerity' policies introduced by Hj almar Who is the enemy of life? Schacht cannot survive without cannibalizing parts of its own LaRouche elaborated on the way in which demands for economy and population, and without proceeding further to fascist economic policies necessarily lead to genocide, al­ cannibalize the economies and popldations of its neighbors. though advocatesof such policies may attempt to justify them Once such a policy is adopted and maintained, the remaining on the basis of other reasons. policy question is which sections of the population shall be "In its earlyform-the 1973-74 propaganda of the satanic condemned to a slave-Iabor/death-aamp elimination, which Club of Rome-the promotion of mass death and even canni­ nations shall bear the greater relative brunt of the looting balism was plainly advertised as a product of a certain eco­ and genocide. In the Nazi case, it was Jews, Slavic people, nomic policy. The argument was that the utopian 'zero ' eco­ gypsies , and communists who were placed at the head of the nomic and technological growth required a massive reduction line leading into the slave-Iabor/death-camp slaughter. of the earth's human population. It was proposed that the "It is the economics of Hjalmjlf Schacht which stand world must let three horsemen of the apocalypse-famine, behind the present policies of the Club of Rome, World epidemic , and homicidal social chaos-take their 'natural Bank, International Monetary Fund, and U.N.O. organiza­ course . ' Itwas proposed that this general approach be supple­ tions such as Unesco and Unitar. ...Today , Nobel Prize­ mented by measures of euthanasia (against the old and griev­ winner Milton Friedman is the leading American supporterof ously ill) and various modes of intensified birth-control, es­ the policies of Nazi Minister Hj almar Schacht. Most leading pecially in undeveloped nations. U. S. academic economists support the same drift in econom­ "Unless this economic motivation behind the anti-life ic and monetary policy as Lerner, Friedman, and other bald­ forces is pinpointed, one cannot properly identify the ene­ faced defenders of Schacht's economic policies. mies of life, nor can one combat those evil forces effectively. "This adoption of Nazi economic doctrinesby most leading

EIR May 5, 1995 International 45 professional economists in the United States todayis not incon­ us, the custodians of that heritage today, to not only foster sistent with the influence of Cambridge University's John May­ scientific and related progress in knowledge, but to base the nardKeyn es. Keynes's famous 'General Theory' was first pub­ practical relations of one citizen to another on the practical lished, not in an English-language edition, but in a 1936 Gennan­ realization of those reflections of the divine qualities of the language edition. For the 1936 Berlin edition of his 'General individual citizen. Theory , ' Keynes wrote a specialprefa ce. Inthat preface he iden­ "Eachlife is potentially sacred to us. A scientist may make tified the Nazi regime as inherently better suited to carrying out a discovery of universal importance, a discovery which serves his policies than the Western democracies . Lerner, Galbraith , as the foundation for subsequent further advances in seeking and others aretherefore able to 'defend' their present-day poli­ atonement of the mind with the lawful ordering o( Creation. A cies as a consistent outgrowth of their stand as leading Keyne­ teacher assimilates and disseminates that knowledge, realizing sians. Friedman has been rightly identified by Cambridge the creative work in a universaliting way. A working person University's Mrs . Joan Robinson as a 'degenerate Keyne­ translates that into universal praCtice. A parent nurtures the sian,' as a relatively stupid person who cannot comprehend young minds capable of becomibg such scientists, teachers , the subtler features of economics .. .. working persons. Each such individual life adds something irreplaceable to our species' labor as the instruments of God in No 'single-issue' defense possible the continuing work of Creation. Each life is sacred. "Therefore the only efficient defense of the principle of "To develop a fetus into a human being is a sacred under­ 'life' is a direct attack on all those professed 'environmental­ taking, an act of creative work of an instrument of continuing ist' and others who support 'neo-Malthusian' policies. It is Creation. To develop a child, om;eborn , communicating the the neo-Malthusian policies of Barry Commoner, Governor power of love to the newborn 'infant, is also such sacred Brown, and others , which are the premise and motive for the work. On this point, no admissible differences exist among promotion of genocidal policies pushed variously by the Club moral persons. of Rome, the World Bank, the InternationalMonetary Fund, "Nor does any man have the right to terminate his own or the U.N .0., and the Georgetown University-based Kennedy other lives because that life haSi been savaged by illness or Center for Bio-Ethics. Remove the motive for genocide and pain. We lack the power to kltow what another smile of the danger of genocidal violations of the principles of life is lovingness might contribute. We have no right to practice easily pushed aside . euthanasia against the sacred mind of a single living person, "Although prominent New Hampshire supporters of the even if those mental powers are reduced. . . ." candidacy of Gov. Ronald Reagan have publicly supported a 'Right to Life' amendment, Reagan supports economic and IMF conditionalities are • Nuremberg crime monetary policies which are fully consistent with the 'neo­ The emphasis which LaRouche has put on fightingfascist Malthusian' doctrines of the IMF, World Bank, and so forth . economics flows from the fact that such economic policies It might be that Reagan himself would oppose abortion now-, deny the nature of man as imago 'VivaDei. in the living image contradicting his earlier signature on a pro-abortion law en­ of God. But it is worth recalling at the current juncture, that acted in California. However, such an anti-abortion stand by LaRouche wrote a very specifio document drawing out this Reagan supporters is a fraud. They might take a posture of point back in August 1982, in an open letter addressed to defending fetuses, but continue to support economic and governments which were members of the IMF. monetary policies which threaten to reduce the population of "Conditionalities" are a "Nuremberg crime," LaRouche the world by half or more . wrote , addressing in particular the fact that the usurious prac­ "Therefore , one's suspicions are rightly aroused whenev­ tices of the international bankers had unleashed the Four er one encounters persons and groups who allege that abor­ Horsemen of the Apocalypse in the least developed coun­ tion is the one and only issue of the 'right to life' effort. They tries, which amounts to genocide. The so-called developed are misusing the issue of abortion to pull supporters of life countries will come next, LaROUche warned, citing the inter­ away from the leading issues of life in the world today . They national bankers as "Lombards" in the following context: are immoral individuals who implicitly insist that they are "To employ Lombards' austerity measures, is to reduce willing to let half the world's population be wiped out in investment in production and b�ic economic infrastructure. genocide, clinging to the pretext that they have saved, per­ This is a reduction in the living standards of populations, haps , one or two fetuses." which, at a certain point, lowers the average conditions of In conclusion to his 1980 statement, LaRouche made the life of many below the level at which individual life can following statement of principle: probably survive. When the screws of Lombards' austerity "There is a commitment to a pro-life position embedded are tightened to a certain degree , now as during the 14th in the U. S. Constitution. There is a commitment to scientific century, a genocidal, savage reduction of the population­ and technological progress, to the development of the pro­ mass-murder, pure and simple-erupts ." ductive powers of labor-all through fostering the creative In a section entitled "The Echoes of Nuremberg," potentialities of the individual. Our nation's heritage obliges LaRouche wrote:

46 International ElK May 5, 1995 "The aggravated degree of austerity being practiced, has being tomorrow? reachedthe point that officials of governments and suprana­ "Unless the recent 15-year direct�on in internationalmon­ tional institutions are placing themselves personally at jeop­ etary and economic policies is reversed immediately, we ardy under provisions of the 'Nuremberg Code.' In Africa must divide the otherwise unfores¢eable course of future and elsewhere, ladies and gentlemen, you are already com­ developments into three categorical ranges of possibilities. plicit in what you know or should have known to be mass­ If the worse among the sponsors of neo-Malthusian doctrines murder against entire nations. have their way, this new depression will lead through a 'new "To this point, the worst among you reply with words to dark age' into what is best described as one-world-govern­ theeff ect: 'So, what?' Such fellows have argued, to the effect ment modeled on Malthusian world�federalist policies afoot of these words: 'Perhaps, we are increasing the death rates, today: the end of civilization. Second, there is the likelihood even to as great a degree as you accuse us of doing. So, what? of thermonuclear war erupting becal¥'eof the extent of desta­ Thereare too many people living already, especially among bilization and maddened desperation the foreseeable collapse the darker-skinned populations of the world. So, what, if of institutions will produce. Third, peoples may ariseto resist many of them must die for the sake of our monetary policies? these two alternatives, and with such effectiveness that the Show me anywhere today, a court which has the inclination perpetrators of genocidal policies are brought to justice, jus­ and power to put me and my friends on trial because of these tice applied with more vigorous resolution. than duringthe policies. We are running the world's monetary institutions, Nuremberg proceedings. and we shall do as suits us. Good day ! I have nothing more "The long moribund Nuremberg Code of justice for to say, wasting time arguing with you on this subject. ' crimes against humanity will be then revived. It will be re­ "This is a fair description of arguments this writer has vived, predictably, because the victors' sense for the impor­ heard from financialofficials and others repeatedly since late tance of law will prompt them to revive previously existing 1975 and early 1976: in Basel, Paris, the Federal Republic law, where it is available from recent history, to order the of Germany, London, the United States, and elsewhere. indictments, trials, and sentencings." . "The racist component of such arguments is no excep­ tion. Such racialist motivations for the policies of the Club The tasks before us today . of Rome were volunteered by a former official of the OECD It is all too hideously clear tlUit the warnings which [Organization of Economic Cooperation and Development] , LaRouche gave in the early 1980s and earlier were not heed­ recently, Dr. Alexander King. King identifiedhimself as the ed. Hundreds of millions have died needlessly due to IMP creator of both the Club of Rome and of the present career of actions to deny development to areas such as Africa and Aurelio Peccei. . . . Ibero-America. A similar process of strangulation by IMP "Not only the policies of the Club of Rome, but the Global policies is dramatically visible in the former East bloc, and 2000and Global Futures reports issued by the outgoing Carter in the so-called advanced sector as well. administraiton, are explicit policies for genocide against, es­ The cultural pessimism which bas resulted from these pecially, populations of the developing nations. The same horrorshas been overwhelmingly ugly. There are intellectual policiesare espoused by London's Chatham House [the Royal circles which have raised again the argument that fascist Institute ofInternationalAffairs] in its ' Year 2000' proposal. policies and methods will be "necessftry" to deal with a world Although economic warfare against populations did not be­ driven mad by economic and social collapse. Already, we come generally a component ofU. S. governmentpolicy until see the reemergence of fascism's ugly twin, communism, in HenryA. Kissinger became national security adviser in 1969, eastern Europe, as a "reaction" to the depredations of the the first law to this effect was enacted on the sponsorship of IMF austerity. In the West, the disaffected and enraged are Sen. William Fulbright (D-Ark.) as early as 1963. being inundated by fascist ideology by the likes of the Con­ "These racialist, neo-Malthusian policies are endemic servative Revolution think-tanks, in popes of building a pop­ among the policymaking public and private institutions of ular base for fascism once again. nations, and extend into eastern European capitals through It is high time we looked into the mirror-and recoiled. such institutions as the International Institute for Applied The emaciated concentration camp � victims in Bosnia, the Systems Analysis (IIASA). It is the influence of such neo­ starving elderly patients in the nurs.ng homes, the children Malthusian policies and their supporters which is chieflyre­ dying of disease in refugee camps-theseare the totally fort!­ sponsible for widespread condoning of economic-monetary seeable results of a fascist ideology andeconomics that deni­ measures of genocide against targeted LDCs [lesser devel­ es the value of human life. We must take decisive measures oped countries] and other nations today. now to rip those policies out of our, ruling institutions, and ' "To such political figures and their accomplices, a clear out of ourselves. warningmust be issued. Remember: The Nuremberg tribunal Then we can say that we rightly commemorated the vic­ was created aft er 1945 . 'Where is the court which would try tims of fascism, and the heroes of $e war against fascism, you for your support of genocidal policies today?' Perhaps 50 years ago. We carried on their work, and ensured that they there is none. Can you be certain one will not spring into didn't die in vain.

EIR May 5, 1995 International 47 Reportfro m Bonn by RainerApel

A step closer to the truth "business" ibterests between British New evidence sheds light on the assassination of public figures, investors during the late-Thatcherite confirming what EIR reported four years ago. period, and $ast German leaders, not only to sabo�ge reunification, but to smuggle hugF sums of money out be­ fore the in*gration of the eastern In most of the big cases of political view of the state sector properties in economy with the western one was assassination of the past 10 or more the turbulent weeks after the collapse completed. 'In this context, years, EIR has stood alone in its effort of the East German regime, Rohwedder ¢ame under attack in the to cut through the blather of the "ex­ Rohwedder's Treuhand staff had British press for his plan to slow down perts" and, based on independent in­ come across evidence that Socialist the privatization of the East German vestigation, provide the strategic Unity Party (SED) and state security state sector industry, and instead to background to these acts of "terror­ apparatus (Stasi) members had been preserve prQduction and jobs, stop­ ism." Finally, some other journalists involved in illegal transfers of up­ ping the sell�ut of properties to "free have concluded that, indeed, the truth wards of DM 500million ($310 mil­ market" intetests. is quite different from what the "ex­ lion) to bank accounts in the West. Also, a Nionitor TV special on the perts"have said. Threatened with exposure, the national ARIJ>TV channel revealed on For example, a television special sources said, these networks de­ April 20 that there are secret files in on the death of Detlev Karsten ployed specialists from a former Stasi the archives i of the Russian military Rohwedder, the director of the Berlin sp etsnaz (special forces) unit, belong­ intelligence �gency GRU in Moscow, Treuhand agency which oversaw the ing, to the Willy-Sanger paratroop that back tqe hypothesis that West reorganization of the state sector in­ special forces regiment that operated German C1lrlstian Democrat Uwe dustries of East Germany· afterreuni­ out of a remote military base in Leh­ Barschel did not commit suicide in fication, was recently produced by a nin, near Berlin. This unit was trained Geneva on Oct. 11, 1987-as official team of Germany's WDR-3 station. in the use of NATO high-precision analysts wo�ld like people to be­ (Rohwedder was killed by a sharp­ weapons of the type used in the attack lieve-but tllathe was killed by arms­ shooter on April 1, 1991.) on Rohwedder. dealing net�orks operating between Although the incident had all the Experts of the West German BGS the East and the West. According to characteristics of a professional con­ (border police, which also commands this report, �arschel had made contact tract killing, the authorities and the special anti-terror units) told WDR-3 with a speci� section of the U.S.S.R. media blamed it on the leftistterrorist that Rohwedder was killed with the Defense Ministry as far back as 1979. group of the Red Army Faction (Baad­ first shot, fired through the window In particular, Monitor mentioned er Meinhof Gang). What remained of his house-something that only a a GRU file that reports that on June mysterious, however, was the fact sharpshooter of special forces quality, 6, 1984, Batschel paid a considerable that, among the core RAF terrorists not the RAF, could do. sum of western hard currency to an put on trial, none was ever charged After the collapse of the East Ger­ East German intermediary, to enable with the assassination of Rohwedder. man regime, "western" firms hired Moscow to i secretly purchase then­ The WDR-3 special, aired on members of the Lehnin-based special embargoed western high-tech equip­ April 18, for the first time buried the unit, and some of them were stationed ment. In ret\U1l, the Soviets sold arms "RAF terrorist"theory before a broad­ in the Dusseldorf region, where via East Ge�any, to select Arabian er public audience. It presented a story Rohwedder lived in 1991. regimes where direct western arms , that might not be true on all accounts, This may lead to the doorsteps of sales were t� delicate. but definitely is much closer to the certain British-linked agencies, This refirs to the arms-peddling truth. which EIR has always suspected to cabal of O�iver North and George According to the documentary, be involved in Rohwedder's death. Bush which, in the early 1980s, oper­ Rohwedder was killed because he fell It is known, though not proven on ated covertlt between the East Ger­ in with powerful, intelligence-related all accounts yet, that the SED and man port ofRostock and the Persian underground networks of the former the Stasi used banks and investment Gulf. The program didn't name these East German regime. Sources told funds in London for illegal money names, but its revelations are directly WDR-3 that in trying to gain an over- transfers. There were secret mutual related to the North-Bush affairs.

48 International EIR May 5, 1995 AndeanReport by JavierAlmario .

On the heels of the Cali Cartel fickerswere caught, but vast quantities President Samper is growing nervous, as drug investigations of documents were seized, including proof of cartel payments to politicians, take on the country's political elites. businessmen, police officials, show business stars , and details on cartel business fronts and their representa­ After 10 months of vacillation, Co­ Mauricio Guzman Cuevas, the mayor tives. lombian Prosecutor-General Alfonso of the city of Cali; "Gaviota," the One of those business fronts is Li­ Valdivieso has moved against the Cali country's leading soap opera starlet; tofarallones, which, according to the drug cartel, and the ruling Liberal Par­ and Santiago Medina, Samper's for­ documents seiz(ld, sent various of ty and President ErnestoSamper Piza­ mer campaign treasurer. Also among Samper's political allies thousands of no are starting to sweat. the accused is Sen. Alberto Santofi­ unspecified "units." Samper's 1994 On April 21, Valdivieso an­ mio Botero, who in 1982 was active campaign treasurer, Santiago Medina, nounced that he had asked the Colom­ in the Liberal Party faction controlled received 20,000 such "units," which bian Supreme Court to begin a crimi­ by then-head of the Medellin Cartel journalists conjecture refers to 20 bil­ nal investigation against Comptroller Pablo Escobar. Both Santofimio and lion pesos. Medina maintains that it General and former presidential can­ Escobar were bitter enemies of then­ means 20,000 campaign shirts. If so, didate David Turbay Turbay, as well Justice Minister Rodrigo Lara Bonil­ one has to ask why a Cali Cartel front, as against nine Liberal congressmen, la, who fell to a cartel assassin's bul­ which went "baJllkrupt" immediately among them House of Representa­ lets on April 30, 1984. The latest afterthe elections, was used by Samp­ tives President Alvaro Benedetti. Sev­ charges against Santofimio could er's campaign for its propaganda. Ju­ eral of those named were active in prove to be the death blow against his lian Murcillo, who was managerofLi­ Samper's 1994 presidential cam­ long and tainted political career. tofarallones at the time, is also the paign. They are all facing allegations "We have only just begun," stated manager of Exposal. that they are on the payroll of the Cali Valdivieso in an April 20 press con­ Valdivieso stated in his press con­ Cartel. ference. Evidence already in hand ference that "for, now" he is only in­ In addition to the investigations, could implicate a majority of the vestigating the iqfiltration of the drug former senator Eduardo Mestre Sar­ country's political elites. trade into the cOQgressional elections, miento, an ex-president of the Liberal According to information from the and President Samper has had no Party, has been arrested and sent to Prosecutor General's office, the inves­ choice but to back such an investiga­ a maximum-security jail, along with tigation began with a July 1992 raid tion. But already, former justice min­ Cali Cartel "executive" Eduardo Gu­ conducted jointly with the U.S. Drug ister Enrique Parejo Gonzalez has th�rrez Arcila. Arrest warrants have Enforcement Administration, against called on Samperto reopen the "narco­ been sworn out against cartel chief­ a cartel warehouse in Panama. Five cassettes" case which "would be an un­ tains Gilberto and Miguel Rodriguez tons of cocaine were discovered, hid­ equivocal demonstration of your will­ Orejuela and 12 others who allegedly den in a 200,OOO-ton salt shipment ingness to clarifythat troublesome ep­ handle the finances, accounting, and contracted by the cartel company Ex­ isode." business fronts of the cartel. Among posal with a state company, Concesi6n V arious analysts speculate that theseis journalistAlberto Giraldo, the Salinas. The manager of Concesi6n V aldi vieso' s action was only taken un­ public relations man for Rodriguez Salinas at the time, whose signature der pressure from the United States. Orejuela who surfaced last year in the appears on the contract, was Monica U. S. Ambassador to Colombia Myles infamous "narco-cassettes," in which de Greiff, a close associate of Samper Frechette has in fact issued a statement Giraldo and the Rodriguez Orejuela who went on to become his 1993 presi­ "applauding" the bold initiative. How­ brothers can be heard discussing the dential campaign treasurer. She is the ever, there is little doubt that the great millions of dollars being given to the daughter of the former prosecutor gen­ majority of Colombians are remo­ Samper campaign to assure his presi­ eral Gustavo de Greiff, whose last act ralized by the fact that someone has dential victory . in officein 1994 was to absolve Samp­ had the courage to take up the task be­ Among others called to testify are er in the narco-cassette scandal. gun by Rodrigo Lara Bonilla, who German Bula Hoyos, former Colom­ Then, on July 12, 1994, the offices gave his life to try to prevent Colombia bian ambassador to the Soviet Union; ofExposal inCali were raided. Notraf- from becoming a narco-tyranny.

EIR May 5, 1995 International 49 InternationalIntelligence

Dwight Eisenhower, during whose adminis­ der the "Holy Alliance" of the early 19th Ben Bella: West should tration Dr. Frondizi became the first Ibero­ century: Professor Henry Kissinger. supportpope 's strategy American head of state to address a joint Hapsburg fawned, "Kissinger's articles session of the U. S. Congress. Dr. Frondizi' s demonstrate that the currentsituation would 1958-62 presidency also overlapped that of The West should support Pope John Paul have been, more successfully mastered, if John F. Kennedy, with whom he developed II's peace strategy rather than launching cru­ people haq listened to him. His analyses of a close working and personal friendship. His sades against Islam, former Algerian leader questions, his in-depth knowledge of histo­ views and counsel on Ibero-America were Ben Bella said in an interview with the Vien­ ry , and hi� clear judgment, are impressive. sought by Popes John XXIII, Paul VI, and na daily Die Presse on April 24 . For a long time, one has had the feeling, that John Paul II, with whom he met several Expressing confidence that it will be it is the great tragedy of the ,U .S.A., that times. this possible to revive Islam as a cultural para­ man r�mains more an observer on the Dr. Frondizi, himself 12 times a politi­ sidelin digm that promotes "real development by es, �nd is not listened to by below­ cal prisoner, worked tirelessly for the re­ average putting man at the center," with "poetry, pepple in the administration." lease of his friend, the jailed American Hapsbdrg literature , music and prayers ," Ben Bella calls on the Republicans, after statesman Lyndon LaRouche, and more re­ their victory said that he hopes that one day, people in at the polls, "to promote Kis­ cently, for his full exoneration. To this end, singer's c*eer, the West will be able to "understand that in view of the catastrophe he exchanged several letters with the Vati­ of Clinton'is policies." the [Persian] Gulf war has hurt the Islamic Yet the Austrian oli­ can, and wrote to U.S. President William garch can't avoid the world as a whole and the Arab world particu­ sticky lucre issue: "It Clinton. would not easy for him larly, and findthe right words for those that Ipe , since his success Upon learning of his death, LaRouche as a scientist, writer, and speechmaker, the West has humiliated in a wild repetition pays wrote to Frondizi' s family, "I believe that off handso�ely." of the crusades. the great service done to me by our departed "The West has violently thrown back friend is generally known in Argentina and Iraq, which was the pride of all Islamic be­ in high places in other parts of the world. ings. They have humiliated and beaten an He was a true and generous friend to me , Fascist economics fe eds honest, serious, and hard-working people. and a treasured collaborator on world issues And with the embargo, they have signed the violence in Bolivia on which we have shared a profound con­ death sentence for the weakest. cernsince our first meeting,as dinner guests "If they paid attention to the words of The Bolivian government of Gonzalo San­ of two mutual friends, nearly eleven years their pontiff, peacewould arrive faster-not chez de Lozada declared a 9O-day national ago. In him, I have met a soul of rare beauty just in Algeria," Ben Bella concluded the state of siege on April 19, after raiding the and excellence. interview. headquarters of the Bolivian Labor Federa­ "I shall miss his presence very much, tion (COB) with elite police units and ar­ while I carry my share of the torch which resting mqre than 100. The raid capped his tired hands passed to us during his last weeks of increasingly violent confronta­ Frondizi dies at 86; days." tions betw�en the police and strikers from was ArgentinePresid ent the COB , �pecifically, from the teachers' Hapsburg demands union, which shut down schools six weeks Arturo Frondizi, former President of Argen­ ago over wage demands and rejection of the tina, died on April 18 in Buenos Aires after return of Kissinger government's New Age- flavorededucation­ a brief illness. Born in the province of Cor­ al "reform.!' rientes on Oct. 28, 1908, Frondizi was one Otto Hapsburg, the aged former pretender Sanchet de Lozada is a former promi­ of 14 children of Julio and Isabel Frondizi, to the imperial throne of Austria-Hungary , nent member of, and remains close to the an Italian couple that migrated to Argentina. penned an April Fool's Day article in the Inter-American Dialogue, the Wall Street­ He was accorded a state funeral . Austrian daily Vorarlbergen Nachrichten run think-tank which promotes free trade, Elected President of Argentina in 1958, which begins by pronouncing: "American legalized drugs, and dismantling of the mili- . his administration was marked by a foreign foreign policy under President Clinton has tary throug!iloutIbero-Amer ica. His govern­ policy that stressed independence and total had, up to this point, negative consequences ment has �en on a privatization spree ever respect for national sovereignty. He met for the Free World." since he to()k office in 1993, deepening the with some of the most renowned leaders of According to Hapsburg, there is but one conditions of desperate poverty in the this century, including France's Charles De solution, to bring back the man who is the country. Gaulle, Germany's Konrad Adenauer, In­ greatest living admirer of the devious Count The Bolivian situation appears to be a . dia's Jawaharlal Nehru, and U.S. President Metternichwho served Otto's ancestors un- set-up for brewing a "Zapatista" insurgency

50 International EIR May 5, 1995 • A VENEZUELAN mass-circu­ against the nation-state like that in the state military capabilities of the great powers in lation magazine, Elite, reproducedin of Chiapas in Mexico. Although the COB is Asia-China, Japan, and India-will be its April 25 , 1995 issue the full text of the powerful umbrella organization of the substantially greater by 2010," Dibbs the April 1993 'EIR article by Dennis whole Bolivian labor movement, its leader­ writes. "The real danger is not the export Small, Carlos Cota, and Peter Rush ship has always been a nest of leftist provo­ of finished weapons to East Asia, but the in which the collapse of the Mexican cateurs . Among those arrestedwas Evo Mo­ transfer of technology, that enhances the miracle was forecast. rales, the head of the coca-growing farmers' ability of the region's states to build the next association who has led a violent campaign generation of weapons themselves." • TURKISa Foreign Minister Er­ against the eradication of coca crops . Dibbs charges that China will modern­ dal Inonu was ,quoted by Reuters as There is a separatist movement afoot in ize and purchase weapons enabling it to tar­ telling the parliament in Ankara on at least six Bolivian provinces, several lead­ get all of Asia from positions close to China. April 18, "If The Netherlands] do ers of which have been arrested afterdeclar­ "Japan's highly advanced technological J not stop this movement we will take ing themselves "a provisional government." base by 20 10 will mean that it could expand other measures and they will have to Morales was arrested during a military raid its military capabilities very rapidly indeed bear the consequences." Inonu was onaclandestine meeting of the so-called and with little warning," he writes. India's refering to the "Kurdish parliament­ Andean Council of Coca Producers, ac­ military will remain at the same size, but it in-exile," whic:h the Dutch allowed ,' cording ' to sources in La Paz, who said he will press ahead with its nuclear capabili­ the terrorist �KK to fonn in The was accompanied by 17 foreigners, includ­ ties, targeting China and Pakistan, ac­ Hague. on Aprill l2. ing Peru's leading pro-drug journalist Roger cording to the Jane's analysis. RumrilL • PAKISTANI Prime Minister Bt!­ As of April 24 , coca growers in Bolivia nazir Bhutto cQntinues to pressahead were battling authorities and threatening to with her drug qrackdown. According block highways in a massive "resistance" to Say State Planning Ctte to an AFP reIX*tfrom Islamabad, P�­ the state of siege, wire reports said. downgraded in China kistan's elite i AnDy anti-narcotics . force has seiz�d a record 40 tons of China's State Planning Committee, the hashish after 4 gunfight with smug­ Jane's of London most powerfulbody in the planning and im­ glers on the AJlabian Sea coast in Ba­ plementation of economic policy in China, luchistan on April 15. flaunts Asian 'threat' has been reportedly downgraded through the stripping of its authority to allocate funds • SINN FE�, the political arm of TheMay 1995 edition of Jane's Intelligence for infrastructure projects. This is called a the Irish Repu�lican Anny, will enter Review, the British Defense Ministry's "radical change in the mainland's political peace talks w� the British govern­ think-tank in London, charges that China, power balance, with the position of Vice­ ment for the firSttime at the ministeri­ Japan, and India, because of their large Premier Zhu Rongji consolidating signifi­ al level, PrimeiMinister John Major's economies, are arming fast enough to pose cantly," by China editor Cary Huang in the government �nounced on April 24. a dire threat to each other and to the United Hongkong Standard, a colonial paper, on A White Hou¥ spokesman said that States within 15 years. The article is by Paul April 3. President Clinton welcomed the an­ Dibbs, fonner deputy secretary of Austra­ Henceforth, the State Development nouncement. the step reflects U.S. lia's Defense Department, and head of stra­ Bank and the State Economic and Trade pressure to upJrade the talks. tegic studies at Australian National Uni­ Commission, both under Zhu's control, will I versity. have the finalsay on allocations. According • SAUDI AltABIA signed a debt Mr. Dibbs is evidently a cothinker of to this report, the conservative Planning agreement witftthe Algerian govern­ London's InternationalInstitute of Strategic Commission, under Li Peng and the State ment, currently embroiled in a deadly Studies operative Gerald Segal and British Council's control, had accused Zhu and the civil war witij Islarnist rebels. The Foreign Office agent Henry Kissinger, for banking sector of being responsible for the Arabic daily }<\l-Hayat reported on he argues, just as they do, that economic inflation crisis, while Zhu had blamed the April 19 that t"'e governorof the Sau­ growth in China and Japan must be stopped, Planning Commission for approving too di Monetary *stitution met with the becauseit is a strategic threat. His argument many projects. "Beijing sources" are report­ deputy govefl¥lr of Algeria's central feeds Segal's proposal for the breakup of ed to have con finned that Zhu had con­ bank Abdulq�ir on April 17 to sign China and Kissinger's proposal that Asian vinced the leadership that checks on the a deal to rescijedule $500 million of nations go to wareach against the other. Planning Commission's power in capital in­ Algerian debt to Saudi banks. "Given sustained economic growth, the vestment was crucial to stop the inflation.

EIR May 5, 1995 International 51 �TIillNational

House of Windsor escalates I war against United States

by Jeffrey Steinberg

I While it is still far too early, despite the media hype, to their role conforms precisely to � NATO-vintage "strategy of draw any definitive conclusions about who bears ultimate tension," employing the "gang tersus countergang" methods responsibility for the April 19 bombing of a federal building tested and perfected by the Lon40n Tavistock Institute's Gen. in OklahomaCity , a pattern of evidence has surfaced about Frank Kitson in Kenya during the 1950s counterinsurgency that bombing, and about a recent series of irregular warfare campaign against the Mau Maul. attacks against the United States and allied nations. This As EIR documented in a Sp�cial Report last autumn titled patternstrongly suggests that the recent wave of "blind terror­ "The Coming Fall of the House bfWindsor" (Oct. 28 , 1994), ism" conforms to the current offensive being waged by Great the kind of Kitsonian destabili�ation now hitting the United Britain's House of Windsor and the Club of the Isles against States was devised as part of �ritain's post-World War II the Clinton Presidency, the United States, and the fragile drive to reassert control over * former colonies, using the configuration of nation-states lining up alongside. World Wide Fund for Nature (\\jWF) as a leading instrument. Three broad categories of evidence contribute to this pre­ Third, information made p�blic to date about the milieu liminary evaluation. First, an across-the-board pattern of from which the Oklahoma Ci�y bombers were deployed, gloating on the part of the leading City of London news media strongly suggests that the appar�tus of rogue intelligence and over the Oklahoma City attack, particularly over the crisis paramilitary operatives of the Rpagan-Bush era, who were in into which it has thrust the Clinton Presidency, indicates and around the Bush and Oliver North-led "secret parallel that the recent terror attacks are consistent with the well­ government" team of Iran-Con�a infamy, may have played documented British assault against the Clinton Presidency. a part in the recent irregular warfare attacks. The fact that this That assault has included efforts to manufacture phony scan­ �pparatus, known broadly as "the Asteroids," is fomenting a dals against the President, to instigate violent attacks against new secessionist insurgency against the U . S. federal govern­ the First Family and the White House, and, most recently, to ment, is just one of many indications that this apparatus is trigger a long, hot summer of civil disorders across America. in league with the Club of tM Isles in the assault on the i Second, the Club of the Isles assets, including British Presidency. intelligence figuresLord William Rees-Mogg and Ambrose The origins of these curre�tly active networks can be Evans-Pritchard, and such organizations as the Anti-Defama­ traced in many instances directly back to the period of the tion League of B'nai B'rith (ADL), the Cult Awareness Net­ failed 1961 Bay of Pigs invasion. At that time, a manipulated work, the Southern Poverty Law Center, and Cambridge network of disgruntled and cOljlupted covert operators pro­ Political Research Associates are demonstrably involved in vided a cover for British intelli�ence's Permindex assassina­ orchestrating a climate of deep paranoia leading up to the tion bureau to murder President John F. Kennedy and suc­ Oklahoma City bombing. Not only does this show a strong, cessfully cover up the crime. �e parallels to the Kennedy premeditated involvement by Windsor-linked capabilities; assassination in the current con1!rontationbetween the Wind-

52 National EIR May 5, 1995 sor-Club of the Isles apparatus and the Clinton Presidency, in and Chip Berlet, along with MorrisDees of the Southern cannot be emphasized enough. Poverty Law Center, as purported "experts" on the radical right. Strategy of tension Less than two years ago, the ADL was under criminal From the early days of the Clinton Presidency, when the investigation for running an illegal private espionage and administration first showed signs of a strategic policy break dirty tricks campaign against hundreds oflegitimate political, with London over the genocide in the Balkans, the United religious, and civil rights organizations, and against an esti­ States has been a target of a "strategy of tension," similar to mated 1 million American citizens. ADL agents provocateurs , the kind of broad-based political and psychological destabili­ were identifiedas some of the most violent members of white zation that hit Italy during the period from 1969 up through supremacist groups, and at least one League undercover the 1978 kidnapping and assassination of Prime Minister sleuth was caught by the FBI and the San Francisco Police Aldo Moro. In both instances, British-centered networks Department selling U . S. government classifieddata to (pre­ were behind the strategy. British agent-of-influence Henry Mandela) South African government $pies. Kissinger's involvement in the Italy destabilization, and his The year-long San Francisco District Attorney's Office prominent role at a recent London Chatham House (Royal criminal probe of the ADL was ultimately shut down, as a Institute for International Affairs) conference to map out the result of heavy-handed intervention by the ADL's friends next phase of the Club's war against the United States, is inside the Justice Department, the RBI, and other federal illustrative of this continuity. agencies. That coverup alone is an ominous bit of evidence The use of irregular warfare to target the Clinton Presi­ that the permanentbureaucracy of the federal governmentis dency began within days of his inauguration. The shooting honeycombed with subversives. spree outside the headquarters of the Central Intelligence More recently, the major daily newspaper in Montgom­ Agency in late January 1993; the Feb . 26, 1993 bombing ery , Alabama ran an eight-part series exposing MorrisDe es, of the World Trade Center; and the ADL-CAN-instigated the director of the SouthernPoverty Law Center, as a money­ governmentassault against the Branch Davidian compound hungry con man who did nothing to; advance the cause of in Waco, Texas, were all identifiedin a March 1, 1993 mem­ civil rights. orandum by Lyndon LaRouche as evidence of the revived The fact that the mass media, from Cable News Network "strategy of tension." The fact that the Waco assault was (CNN) to the Washington Post, systematically covered up carriedout nominally by elements within the federal govern­ the ADL and Dees scandals, and has now touted those agen­ ment, in no way contradicted the fact that the attacks were cies as "experts" on the right-wing militia movement, should directedat destabilizing the Clinton Presidency before it ever serve as a warning to honest citizens that nothing coming out got off the ground. of the media on the Oklahoma bombing can be taken at face President Clinton's commendable handling of the Okla­ value. homa City bomb blast stands in sharp contrast to the adminis­ In fact, it is the ADL and its allied Cult Awareness Net­ tration's mishandling of the Waco affair, which occurred in work that bears the greatest burden of responsibility for the the firstdays of Clinton's tenure. Sources close to the White April 19, 1993 disaster at Waco. As EIR documented at House told EIR that one of the crucial lessons learned from the time ("Kidnapping 'Experts' Bid to Take Over Justice the Waco tragedy, was that neither outside agencies such as Dept. ," May 14, 1993, p. 58), it was the ADL and CAN the ADL and CAN, nor permanent governmentbureaucra ts , that instigated the government investigation of the Branch such as MarkRichard and other career Department of Justice Davidians by manufacturing and internationally circulating officials who dominated the command decision-making pro­ an inflammatory disinformation report on the group. A year cess at Waco, could be relied upon. Within hours of the earlier, the ADL played a similar provocateur role in jacking Oklahoma City bombing, the President set up a war room at up federal agents in Idaho, when they attempted to serve an the White House, and he reportedly took personal command arrest warrant on Randy Weaver. of the relief effort and manhunt from day one. Moreover, The ADL and CAN played the identical kind of role in while the President has come under sharp criticism for not fostering a federal and state law enforcement raid on the going far enough in censuring federal law enforcement offi­ Leesburg, Virginia headquarters of LaRouche-linked pub­ cials for the tragic 1992 Randy Weaver shootout in Idaho, he lishing companies on Oct. 6, 1986. Governmentdocuments has been careful to avoid giving federal agents a clean bill of reveal that ADL-controlled "informants"had provided feder­ health in those two hideous affairs. al prosecutors with fraudulent information aimed at inducing a bloodbath. Federal and state police officers were told that Waco revisited they would be walking into an armed camp; that office doors One of the most disgusting aspects of the American news would be booby-trapped with bombs; and that file cabinets media's sportscast-style coverage of the Oklahoma City would be outfitted with incendiary devices. The raid was bombing, has been the trotting out ofthe-ADL 's Tom Halper- called off after 24 hours as the result of a personal telegram

EIR May 5, 1995 National 53 from Lyndon LaRouche to President Reagan, alerting him to Today, the impetus to aCQOmplish the British Crown's the events on the ground. However, the Leesburg invasion goal of destroying the United States, is greater than at any led to a series of Bush-era federal and state frameups of time since the assassination of President John F. Kennedy, LaRouche and associates. and perhaps since the British assassination of Abraham Lin­ As this cursory summary should make clear, no compe­ coln. The world financial system is in a collapse, verging tent review of the Waco and Weaver cases is possible without on a disintegration crisis. Wh�n the moment of breakdown a full review of the circumstances and personalities behind occurs, the fate of civilizatioh will hang or fall on what the October 1986 Leesburg raid and the railroading of actions are taken by the President of the United States, and LaRouche. And no review of any of these incidents or the there is a strong possibility that:the moment of reckoningwill Oklahoma bombing is possible, without facing up to the occur while William JeffersonCl inton is occupying the Oval filthy role played in each of these situations by the ADL and Office. And no American Pr�ident in recent memory has its cohorts . been engaged in such a war-and-a-half with the House of Windsor and the Club of the Isles, as President Clinton is at 'Nine Nations of North America' this moment. Less than a week afterthe Oklahoma bombing, a sophisti­ cated mail bomb claimed the life of a timber industry lobbyist Venom from British pens in Sacramento, California.Federal authorities have tentative­ Every effort to date by the Windsors and the Club to bring ly linked the murder to a string of letter bombs and package down the Clinton Presidency h�s failed. Partlyin responseto bombs that have killed or injured a score of people over a 17- that persistent failure, Londonis frustration at the President year period. The bomber has been nicknamed "The Una­ came spilling out in a string of incredibly callous and impoli­ bomber" by FBI investigators . A day after the killing, the tic attacks against him follklwing the Oklahoma City New York Times published a letter it received from the pur­ bombing. ported bomber, which indicated strong ties to the radical The London Guardian of April 21 reported that Conser­ environmentalist movement. vative members of the Parliam¢nt, "still resentful at theU.S. While the Oklahoma City and Sacramento terrorist at­ administration's red carpet welcome for Gerry Adams, the tacks are being attributed publicly to very differentnetwor ks, Sinn Fein president, in Washington last month, respondedto there are at least two common threads that run through both the Oklahoma bomb outrage qy claiming that it had taught incidents. First, they both are part of the continuing pattern the Americans a lesson." The $tory went on to quote froma of ever-escalating, low-intensity warfare directed against the letter to U. S. Ambassador to the Court of St. James, William United States, Japan, China, Ibero-America, the Indian sub­ Crowe, from Tory parliamentarian David Wiltshire, de­ continent, and Turkey. manding that "as a consequen¢e of your tragedy," the U.S. Second, they both are consistent with the Club of the government "must rethink its lIetingof apologists for terror­ Isles's revived efforts to balkanize NorthAmerica and there­ ism in Northern Ireland." by destroy the United States as a sovereign nation-state. The London Economist's 1\pril 22-28 issue pointed its In 1982, Joel Garreau, then a reporter with the Washing­ warning directly at the President: "Suddenly everywhere [in ton Post, wrote a book, The Nine Nations of North America, America] seemed vulnerable. But, of course, it has been so which called for the breakup of the United States, Canada, for years. America, famously free of terrorism, is indeed still Mexico, and the Caribbean into nine separate states, along as wide open to it as the fun

54 National EIR May 5, 1995 ment, which conforms to a plan which is sometimes called the "Nine Nations of North America." They are, in profile and in ideology, at least from the top down, dominated by something coming out of Britain. . . . You have a notorious fellow by :the name of Liebman British pawprints who's got quite a track record, and this fellow was used by on Rees-Mogg and company, to spread the report that the mili­ Oklahomabom bing tias were going to be targeted for a Waco-style operationby the FBI, or words to that effect. That was the Davidson LyndonLaRouche had the fo llowing comments on the weekly report. This was seen to drive everybody crazy; this made no radio program "EIR Talks" on April 27. sense, there was no track of such an operation. It was just through this Liebman connection via Rees-Mogg, Davidson, EIR: What do you see as the critical elements in analyzing and so forth. thebombing of the Federal building in Oklahoma? However, later, when the terrorism incident occurred in LaRouche: First, one must take all the sociologists and put Oklahoma City, then people played back to that, and said them in a zoo someplace, and don't let the press interview that because of that report which had been circulated by them, because the idea oflooking for the motivation of "some Rees-Mogg, that some desperadoes in the militia or related poorschnook ," as we would say in Brooklyn, who actually environment, had suddenly taken to tlte hills, pulled out big may have been involved in the incident, is the most stupid explosives and blown up the Oklahoma federal office. This kind of investigation in the world. The characteristic of all was their dirty role. terroristacts is that some poor dupe is manipulated on some So obviously, the British played a, crucial partbe fore the pretext into doing something which has nothing to do with fa ct in creating the pretext which the �ritish exploited aft er themotivation in the mind of the personwho does the manip­ the fa ct to try to explain the provocation authorship of this ulating. terrorist incident. This is typical socidlogy. They all want to What we're looking for here, in a fairly sophisticated say: "Here's the motive of the group for doing it," as if the typeof terrorismwhich was not seen in the pre- 1989 period, big motives for this act were anywhe� but London. that is, not seen in practice, is obviously some large agency We cannot yet prove that the Britisb monarchy, as typified which is conducting similar or related acts of terrorism by the faction of the monarchy which is associated withRees­ throughout the world. And therefore, we're not looking at Mogg, directly deployed a terrorist act of a type which did "some poor schnook," or some militia, this or that. We're not exist prior to last year anywhere in the world, but which looking at tryingto findout who's behind it. has been on the British books of the Tavistock Instituteet al. for years. And that the British deployed it, in the same general EIR: The Strategic Investment newsletter of British Lord Tavistock mode that the British mon�chy created the Mau William Rees-Mogg about a month and a half ago had a Mau in Kenya through their infiuence, over people like Jomo scenario involving the militias and U.S. Attorney General Kenyatta. And then, once Kenyatta and others had deployed Janet Reno. How does that fitin? the Mau Mau, a British-designed operation, then theBritish LaRouche: The problem is that all of the capabilities in­ sent in Kitson and others, with South Africans and what-not, volved, seem to be a continuation of the same group of people as Kitson describes in his book, to set lIPa counter-Mau Mau who organize the motivation of assassination threats against to drive the Mau Mau crazy and into corners, and then the the President from Britain, and Lord Rees-Mogg; Ambrose British Army cleaned them up. Evans-Pritchard, the Telegraph correspondent in Washing­ What you had in this case, was a Mau Maulcounter-Mau ton; James Adams, all these kinds of characters, going Mau operation, in which both sides of the operation are set through the American Spectator, and so forth , using Larry up by the British, using a British-designed type of terrorism, Nichols, this guy who was tied in with George Bush in drug­ in a very sophisticated application. And then saying that a runningoperations . . . all seems to be the same sort of thing, couple of "Jomos" came out there witb a big pile of ammoni­ with the same motivation, the same profile. um nitrite and oil, and somehow just �iolently, madly, what­ Remember, the militias were started by George Bush, ever, did this act-that's a bunch of bunk. essentially, under his Presidency, as a concomitant feature The point is that you've got the British pawmarksall over of launching of the Persian Gulf war in 1990-91. And so, this place, Rees-Mogg' s pawmarks; a1lld even thepeople they they dohave a kind of a pedigree. They also have a political claim were assets of the terrorist owration, are their own pedigree, along with some of the other funny right-wing assets, that is, part of the Evans-Pritchard following, pro­ groupswhich are on the Bush league side of the neo-conser­ Bush league, anti-Clinton crowd. The thing stinks up and vatives, of trying to destroy the United States through priva­ down, and the obvious suspects are withinthe British monar­ tization, decentralization, destroying the federal govern- chy-oligarchy.

EIR May 5, 1995 National 55 warmth toward humankind. Yet in 1979, with your colleague from Philadelphia, Joshua Eill>erg, you both concocted a law to negate the most valuable .document in the world, 'The U.S. Constitution.' OSI "Your law, 'The HoltzmF Amendment,' is out to get targets more septuagenarians, who suppoS¢dly were working in concen­ tration camps, under the Nazi �cupation of easternEuropean innocentpeople nations. Ms. Holtzman, has it ever occurred to you, that the selected victims of the OSI had no choice under the 'Gesta­ by Scott Thompson po ,' or have you considered being a guard at this horrendous time, did not mean that these people were murderers .. .. The U.S. Justice Department's Office ofSpecial Investiga­ "For example, Frank WaIus, a native of Poland, was tions (OS I , better known as the Officeof Special Inquisitions) one of OSI's first victims. Hp was the only one telling the has launched a last-ditch effort to salvage its track record as truth, while 11 Israeli witness�s committed perjury. The pre­ the government's ace Nazi hunters by carrying out a shame­ siding judge, Julius Hoffman) denaturalized Walus. Later it less extortion and blackmail campaign against hundreds of was proven that Walus did m fact state the truth and was naturalized American citizens, according to sources close to reinstated with his U. S. citizenship. . . . a number of these cases. "We cannot forget Karl URnas, an Estonian native who OSI suffered a major setback several years ago when the was deported to the U.S.S.R.� and seeing your sadistic plea­ Israeli Supreme Court overturned the conviction, instigated sure being revealed while Aeroflot flew him to Leningrad, by the OSI, of retired Cleveland, Ohio auto worker John where he died in a hospital, for being a traitor to a regime Demjanjuk on charges that he was the concentration camp which occupied his native land and murdered his kin. OSI guard "Ivan the Terrible," and allowed Demjanjuk to return accused him of being a cam� commander. If you have any to the United States. The U.S. Sixth Circuit Courtof Appeals human compassion or common sense, you would realize followed up the Israeli Supreme Court ruling with its own that the Nazi government wopld not and never did permit a finding that the OSI had committed fraud upon the court in foreigner to be in charge of a Nazi camp. This man would its handling of the Demjanjuk case. never have been killed if it wasn't for your machinations, The OSI has now begun a campaign against about 600 sneaky methods and the way rour bill was put into law. We minor figures in World War II who are still alive, including hope you realize that this man)' s blood is on your hands. . . . several Volksdeutsche (ethnic Germans living in easternEu­ "Another case on hand is �ictim [Andrja] Artukovic, a rope) who had been dragooned into the Waffen SS and were Croatian native. Artukovic s�ffered from Alzheimer's dis­ forced at pain of death to be perimeter guards at concentration ease and sclerosis of the brain� and didn't know what time of camps. OSI officials are reportedly threatening these people day it was and had to be fed. OSI, with armed Federal Mar­ with prosecutionand deportation unless they agree to sign an shals, broke into his home, b�cked up with a hovering Coast admission of guilt-in return for whichthe OSI agrees not to Guard helicopter and two �bulances waiting to take him pursue deportation. For the majority of these targets, now in away. He was deported to Yugoslavia where he died in pris­ their late 70s and 80s, the prospect of battling against the on .... U.S. Department of Justice is out of the question. And so, "The point here is, that n�ne of the aforementioned vic­ the OSI is amassing a string of "victories" aimed at fending tims were ever provento have physically abused any person." off a growing chorus of critics charging that the entire Nazi­ hunting effort was so rife with corruption and hidden agendas Hundreds of innocents targeted that it was a major national embarrassment. According to Nezowy, the OSI, recognizing that most potential targets are dead or

56 National EIR May 5, 1995 information on his immigration papers . Breyer had been in­ manded by a three-judge panel back to the INS. vited to enter the United States, after an initial rejection, Nikolaus Schiffer. Schiffer was born in Philadelphia on because he was a skilled tool-and-die maker. April 9, 1919 to Romanian parents ofI German extraction. In 1943, Breyer was drafted at age 17, because he was One year after he was born, the family: returnedto Romania, of ethnic German ancestry, based on a farm in the remote where he grew up in the small town of Moravitza. Afterhis mountains of Slovakia. He was forced against his own and father died, he worked as a baker. his parents' will into the Waffen SS, which by that time had In 1940, at age 21, he was inducted into the Romanian been broken into a hodge-podge force of 900,000, conscript­ Army. In 1942, he was wounded near Stalingrad andretumed ed from everywhere. He was taken to Buchenwald where, to Romania for treatment. The next year he was conscripted after minimal training, he was made to stand perimeter guard into the shattered Waffen SS and, as a Volksdeutche, he 12 hours a day. When he criticized the commanding officer, was assigned guard duty, which he did at four concentration he was threatenedwith prison. Breyer was himself a de facto camps, serving as a perimeter guard with the rankof private. prisoner of war, only he stood outside instead of inside the In 1945, Schiffer was captured by American forces. He was walls of the prison. After three months at Buchenwald, he sent to Dachau for interrogation and investigation of war was given leave in August 1944; he went home, whereupon crimes. In 1947, he was released as a oivilian, and a German his parents hid him until the family itself was expelled as civilian court cleared him of wrongdoing. In 1953, after a Volksdeutsche in January 1945 . Hans was next sent by the period in Austria with his mother, he received paperS to Germans to the Russian Front, where he had several narrow immigrate to the United States, where he has been a pastry escapes with death. Eventually, he was captured and sent to chef ever since. a Russian POW camp, where many died from starvation. At On Aug. 25, 1993, after a seven-day trial, a Federal six feet tall, Breyer weighed 98 pounds when he left the District judge issued an order in a case brought by the OSI to Russian camp nearly blind. revoke Schiffer's citizenship. After three years of investiga­ One of the furthercomplications in the OSI's case is that tion, the OSI could only claim that S¢hiffer had lied on his Hans Breyer's mother is American-born. The OSI began a immigration papers, not that he had h!lfIlled anyone. As we campaign to manipulate the Justice Department and the go to press, Schiffer is scheduled to appear before a deporta­ courts into deporting him anyway. The case has been re- tion judge.

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EIR May 5, 1995 National 57 Unique view of Italian Renai$sance I painting in Morgan Libraryexhi bit by Nora Hamerman

New York City's J.P. Morgan Library is displaying, until However, other masterpie¢es by Giraldi's hand are visi­ May 7, more than a hundred rarely seen painted manuscripts ble here, such as the delicatt watercolor paintings in the and incunabula (the earliest printed books), in the exhibition borders of a superb copy of ! Virgil's Aeneid produced in called "The Painted Page: Italian Renaissance Book Illumi­ Ferrara in 1458 for a Venetian! patron, which, as the catalog nation, 1450-1550." entry puts it, show "a perfect nIlastery of the rules of perspec­ The show offers a historic opportunity to see the colors tive and unusual skill with the lhandling of space." Although and craftmanship of Renaissance painters . Unlike the era's Dante was the most popular non-liturgical subject of illumi­ better-known frescos, altarpieces, and panel paintings, most nated books in the 14th and 15th centuries, Giraldi's Inferno of the books have been protected for more than 500 years illustrations were the firstin wbich the landscape matches the from the asssaults of light, weather, and restoration. The action of the poem and the figures capture the real drama of glow of the rich tempera colors and gold leaf on parchment the character's torments. (the prepared skin of a sheep, calf, or goat) , the medium of most of the objects, cannot be captured even with the best of Art wed to technology modern reproduction techniques. This is not to denigrate the The Morgan Library show, which opened on Feb. 15 (it catalogue, edited by the exhibit's guest curator Jonathan J.G. was seen at the London RoyaliAcademy of Arts on Oct. 27- Alexander (published by the Royal Academy of Arts , Lon­ Jan . 22), stresses an aspect of Renaissance bookmaking little don, and distributed by Prestel-Verlag, 1994; $39.95 soft noticed even by experts: the existence of many incunabula cover, $75.00hardbo und, with illustrations of each work in which were designed to be hand-illuminated after printing. the show , scholarly essays, and bibliography), which will be This part of the show demolis*s some oft-repeated assump­ a treasured reference for years to come . tions about the alleged rupture between the era of hand­ This gathering of manuscripts demonstrates how after copied books and the age of printing. The firstGerman print­ 1450, Renaissance ideas about reviving the achievements of ers set up shop outside Rome !at the Benedictine monastery classical antiquity and joining them with Christianity radiated of Subiaco in 1465 . In the 1470s, a Frenchman, Nicolaus out from Florence into many north Italian cities, including Jenson, became the major producer of these remarkable early especially Milan, Ferrara, Padua, and Venice as well as to printed books in Venice. Although paper does not offer as papal Rome , with each leading center developing its own luxurious a surface for the tempera colors as parchment, distinctive style. Florence, thecradle of Renaissance culture, nonetheless one can only rejoice at the idea of combining the was also the birthplace of the new style of book illumination, art of illumination with the new technology that obviated the and continued to be the unrivaled capital of book production time-consuming work of prod�cing the text by hand. and patronage-the workshop of Attavante degli Attavanti The rate at which progress was made in the 15th century became a veritable heavy industry of the day-but the show is also worth remarking upoh, even in the period before at the Morgan reveals how important other centers were , printing caught on. For example, Professor Alexander writes such as Ferrara. in the catalog that starting around 1400, the distinctive Italic The number and quality of painted manuscripts from Fer­ script "with letter forms whicl1 continue in use even in the rara reminds us that the watershed ecumenical church Council age of electronic technology ;was evolved self-consciously of Florence of 1438-44 opened in that city to the north of by a small group of scholar-h'¥llanists in Florence, of whom Florence and is officially called the Council of Ferrara-Flore­ Niccolo Niccoli and Poggio Btacciolini, with the encourage­ nce. (The court at Ferrara was also key in the development of ment of Coluccio Salutati, Chancellor of Florence, were the the earliest polyphonic choral music .) In the 1470s, one of the leaders. The way in which the new script caught on was finest specialists in manuscript painting from Ferrara, Gugliel­ spectacular, and within twen1:JY years it had spread all over mo Giraldi , illuminated a celebrated codex of theDivine Come­ Italy as a style of writing. Its adoption 9Y the printers in Italy dy of Dante (Vatican Library), which appeared in the London after 1465 assured even wider dissemination, though other edition of this show but was not lent to New York. countries in Europe had begun to adopt it even before Guten-

58 National EIR May 5, 1995 berg's invention of printing in Mainz in the early 1450s." The new script went hand in hand with spelling reforms and efforts to purify texts of corruption, as well as a style of decoration of twining white vines, believed, like the rounded letter forms, to have been based on Antiquity but actually evolved from medieval models. The script's analogy to the "round sound" in singing, which apparently developed at the same time, judging from the representation of musical angels in painting and sculp­ ture , is striking. This was also the era when round paintings began to be made to commemorate very special occasions, such as a birth or marriage, and when, for the firsttime since antiquity, the idea of round or centralized ground-plans for churches became popular. The archeological pretext for this was the existence of some round (or regularly polygonal) early Christian churches, but it was also emphasized that the circular form most approximated the perfection of the Deity.

Christian and classical themes blended The show, encompassing over 100 of the most important surviving examples of Italian Renaissance manuscript paint­ ing is divided into eight sections. The firstdeals with liturgi­ ' cal and biblical manuscripts. The second, which is particular­ ly extensive, highlights Renaissance patrons and libraries. The third deals with classical and humanist (i.e., non-sacred) texts, ranging from works by the ancients, including Livy, Aesop, Homer, Ovid, Virgil, Ptolemy, and Aristotle to the modem Italians such as Dante, Petrarch, Poggio Bracciolini, and Leonardo Bruni. A fourth section, titled "All'antica," In afull-page unframed miniature, the great pedagogue Guarino da Verona (right) presents his translation of the ancient Greek presents manuscripts imitating "Antique" style and content, geographer Strabo to a patron (Albi, Bibliotheque Municipale). including a particularly lavish Florentine version of St. Au­ This is one of the most fa mous Italian Renaissance manuscripts, gustine's City af Gad, made in the 1470s for a Neapolitan importantJor its provenance, text, script, painted initials, patron, Inigo d' Avalos, of the celebrated Spanish family of miniatures, and its position in the historyof manuscript patrons of the Renaissance. illumination . The translation ofthis work (previously little known in the West), attests to the enthusiasm fo r geography awakened The fifthsection , "The Hand-Illuminated Printed Book," around the Council of Florence, which led to the voyages of is followed by "Illuminators and their Methods of Work ," discovery. "Choir Books," and "The Sixteenth Century ," by which time the invention of printed books made manuscripts an uneco­ nomic lUXUry restricted to exceptionally wealthy patrons. In this last part, the liturgical books made by Giulio Clovio in label points out, St. Augustine referred to the North Wind as Rome in that era, with their vivid pastel palette, appear to add a "wakening call" to penitence for the unconscious sinner, a evidence to the arguments in defense of the recent cleaning of theme most appropriate for Lent, and this might have been Michelangelo's Sistine Chapel ceiling, which has shocked in the mind of the illuminator's clerical adviser. some observers due to the unfamiliar bright colors revealed in the cleaning. Petrarch and individual achievement Among the choir books is one from the Piccolomini Li­ The extensive section on "Renaissance Patrons and Li­ brary in Siena Cathedral, illuminated by Liberale da Verona. braries" introduces us to a large number of distinguished The miniature of the North Wind, a male nude with puffed persons and institutions of the era, pointing up, again, the out cheeks and a huge blue "Afro" hairdo, reproduced on the message of "The Currency of Fame," a Renaissance portrait cover of the catalog, demonstrates the symbiosis between medals exhibit held at New York's Frick Collection and the classical Antiquity and Christian themes. This picture ap­ Washington National Gallery of Art in 1993-94. As Stephen pears in a Gradual with service music for the Thursday after K. Scher wrote in the catalogue for The Currency af Fame, Ash Wednesday in Lent, and has no direct connection to the the idea of individual achievement and the "good life digni­ Gospel text for that day. However, as the Morgan Library fied by practical activity and rendered delightful by beauty ,

EIR May 5, 1995 National 59 figure to explicitly reject the influence of Aristotle over sci­ ence as it was studied in the universities and particularly in Venice. The Italian poet, who inspired England's Geoffrey Chaucer and the parallel projects of vernacular poetry in France, Spain, and elsewhere in Europe, was the moving force behind a Europe-wide project to train a younger genera­ tion in classical Greek, recover Plato's dialogues and trans­ late them into western languages, and more generally to re­ vive the treasures of Greek and Roman culture. (It was Petrarch's network in Florence, around his pupil Salutati, which created the new script described above.) The young Nicolaus of Cusa came into the orbit of Pe­ trarch's collaborators at least by the time he matriculated at the University of Padua in 1416, and in 1429 he was well known in Italy as a successful hunter of ancient manuscripts. Cusa's library in his native town ofBernkastel-Kues, situated on the Moselle River in Germany, is filled with the beautiful­ ly illuminated manuscripts and incunabula which he once owned. In "The Painted Page" show at the Morgan Library, we meet the image of the Petrarchan scholar over and over again. St. Jerome, the 5th-century translator of the Bible into Latin, is shown surrounded by the volumes and scientificparapher­ nalia of a 15th-century man of learning, as are the classical pagan writers Plutarch, Livy, Ovid, and Pliny, whose works "Pliny" is shown as a Renaissance scholar sitting at his desk appear in several richly decorated editions in the show. pointing to an armillary sphere, in his Natural History, translated Among the books and pages seen in this section are some into Italian by the Florentine Platonist Cristofo ro Landino, and printed on parchment in Venice by the French printer Nicolaus commissioned by Ludovico Sforza, the duke of Milan who Jenson in 1476. The book was commissioned by the Florentine employed Leonardo da Vinci for two decades; a Book of Strozzifamily, and the illustrations added by hand by a Florentine Hours for Cecilia Gonzaga, the extraordinarily gifted pupil of miniaturist in the early 1480s. (Oxford, Bodleian Library). Vittorino da Feltre, founder of the most famous Renaissance academy for children, who interceded on behalf of Cecilia to persuade her father, the duke of Mantua, to allow her to enter and learning appealed strongly to the upper classes of the a convent and continue her intellectual pursuits rather than to Italian city-state." He went on to observe, "In the early four­ marry; and a presentation page showing Vittorino's col­ teenth century one man in particular gave impetus to this league, the other famousItalian pedagogue, Guarinoda Vero­ development-Francesco Petrarch .... Petrarch assumed na, as he presents to the Venetian nobleman Jacopo Antonio that human talent, if properly used, was certain of recogni­ Marcello his own new translation of the Geography of Strabo, tion. Therefore glory, or fa ma, was inevitably the result of an ancient Greek writer largely unknown in western Europe excellence, or virtus, and this virtus was a function of a man's before the Council of Florence, translated on commission to entire personality. . . . It was this excellence that raised a Pope Nicholas V, the founder of the Vatican Library. man above his fe llows regardless of his material or social Here we see a telling, albeit subtle, contrast between status. Increased consciousness of one's excellence resulted Florence and the areas most directly in the Florentine cultural in an examination of one's own personality with the need to orbit, and the Venetian orbit, even in the period of the second comment openly about such observations and do so in a way half of the 15th century when Florentine ideas swept into the that would survive the erosion of time and fragility of men's City of the Lagoon. The differenceis that in Venice, it is often memories. It was, in other words, important to establish a difficultto determine the individual patron of a manuscript, durable means of attaining earthly immortality." because what appears in the book is the name only of the Petrarch (1304-74), was born to a Florentine family ex­ fa mily. iled with the great poet DanteAli ghieri's White Guelphparty It was, of course, in the wake of the Council of Florence in 1302, and had survived the cataclysm of the Black Death that the sharpest polemics over Plato versus Aristotle broke of 1348. He had been involved in the effort to establish a out, as one manuscript in the "Patrons and Libraries" section republic in Rome at mid-century, and set up intellectual­ (Cat. 10) reflects. It is the attack by Andrea Contrario (ironi­ political networks all over western Europe. cally ofa Venetian family, although Venice was the epicenter An Augustinian Christian, Petrarch was the first major of the Aristotle revival) on the Latin translations of Plato

60 National EIR May 5, 1995 made by the Aristotelian George of Trebizond. Contrario's text, written in Naples in 147 1 and dedicated to the king of Naples, includes among its illustrations a portrait of Cardinal Bessarion, a leading protagonist of the Council of Florence, who also wrote an attack on George of Trebizond , as a "slan­ derer of Plato." Petrarch's "Triumphs" (a cycle ofverna cular poems cele­ brating the successive triumphs over each other of love, chas­ tity, death, fame, time, eternity), were also a favored subject of these exquisite books. There are two versions in the "Clas­ sical and Humanist Texts" section of the show, a Florentine book of 1457 (Cat. 59) of the Triumph of Love, which in­ cludes a vignette of the humiliation of Aristotle by the shrew­ ish Phyllis; and a book produced in Urbino in the late 1470s, with the Triumph of Death over Chastity.

Medici birth tray at the Met Anyone traveling to New York to see the Morgan show , should also visit the Metropolitan Museum of Art, now cele­ brating its 125th anniversary. The Morgan show features several books that once belonged to the Medici banking fami­ ly, Florence's unofficial rulers and greatest art patrons throughout most of the 14oos, such as a beautiful copy of Pliny's Natural History dated 1458, Aesop's Fables in Greek, a Book of Hours of 1485, and a sumptuous service book illustrating the Medici Pope Leo X being vested for Mass. Meanwhile, the Met has just put on display a new acquisition which was also made for the Medici, a desco da parto commemorating the birth in 1449 of Lorenzo de Medi­ ci, later known as "The Magnificent" and a seminal figure of

European history. Full-page miniature of "God creating the sun, moon, andearth" Painted in tempera, silver, and gold on a circular wood attributed to Vincenzo Raimondi, a French artist who worked in tray measuring 36Y2 inches in diameter, the salver features Rome, inspired by the picture of the Creator on MicheLangeLo's Sistine Ceiling, fr om the PsaLter of Pope PauL 11/, written in Rome, the figure of winged Fame standing with outstretched arms, 1542 (Paris, BibLiotheque NationaLe) . By this date, de Luxe holding a sword in her right hand, and in her left a statuette illuminated manuscripts were onLy produced in exceptionaL of Cupid with his bow drawn. Winged Fame surmounts a circumstances,for particuLar patrons, like the popes and globe pierced by six portholes, from which winged trumpets cardinaLs in Rome. sound to herald the arrival of the newborn baby and his expected future fame . This imagery is drawn from Petrarch's "Triumph of Fame," in which Fame vanquishes Death, and will never be adequate to sustain America's museums as reminds us of the new regard for earthly fame inspired by teaching institutions, a role they have increasingly taken on Petrarch in the Renaissance. for the millions of visitors each year, and with constantly The birth tray, an altogether unique historic object, be­ dwindling resources. Every major loan exhibit, including the longed to the New York Historical Society, which sold it Morgan Library show reviewed here, is assisted by funding earlier this year. The artist is Scheggia (Giovanni di Ser from the National Endowment for the Arts and the Federal Giovanni di Simone, 1407-86), the younger brother of Ma­ Council on the Arts and Humanities, which often provide saccio, one of the key early Renaissance artists. The tray indemnities to cover the staggering costs of insuring loaned remained in the Medici family's possession until they were works of art . If the political agenda of some "conservative" driven out of Florence in 1494. Thomas Jefferson Bryan, an insurgents in Congress is fulfilled, that crucial margin of American collector, bought it in 1851 in Paris and donated it funding will be reduced or vanish, with incalculable conse­ to the New York Historical Society in 1867 . The Metropoli­ quences on the future of our civilization. If we are to launch tan was able to raise the $2 million to keep the picture in New a new Renaissance, as many of us believe is desperately York City, thanks to a generous donation from Mr. and Mrs. needed, then many people will need to see and be inspired Walter H. Annenberg and other patrons of the museum. by the Golden Renaissance of the Italian 15th century in It should be added, however, that pri vate patronage alone shows like this one.

EIR May 5, 1995 National 61 National News

conference addressed by the President in­ tended "tq keep nation-states and their peo­ cluded governors of leading agricultural ple from the impoverishing implications of states in the Midwest. insolvenc ," instead of authorizing credi­ Senate Democratic leader Clinton was also openly skeptical of the tors to seit. e the assets of a country in finan­ latest "official" readings of U.S. govern­ cial distre$s. targeted in federal probe ment economists. "We have, in the last two Leach�s proposal reflects a heated de­ Senate Minority Leader Tom Daschle (D­ years, over 6 million new jobs, the lowest bate over! the IMF's policy that debt-bur­ S.D.) is reportedly the target of a widening combined rates of unemployment and infla­ dened natiions should destroy or sell offtheir probe for allegedly intervening with the tion in 25 years ." And yet, he noted, "I just productiv� economic assets-which has re­ Federal Aviation Administration, on behalf got the report this morning-inthe last three peatedly been enforced even without the of a charter airline company owned by one months, compensation for working people threat of seizing them. The "wild card" is of his friends. The Associated Press claimed in America, all across America, increased Lyndon LaRouche's program for global fromSouth Dakota on April 14 that Daschle at a lower rate than it has in any three-month economic ,recovery, which includes putting is under investigation by the U.S. Depart­ period in 15 years-totally against all com­ the entire �nancial system througha Chapter ment of Transportation's inspector general. mon sense. The good news is, we have low I I-style rtl0rganization, eliminating cancer­ According to AP, the probe was requested infla�on. The bad news is, nobody's getting ous speculation and usurious debt-collec­ by FAA Administrator David Hinson and any more money for working. And it is more tion. LaRouche's proposals have been Sen. John McCain (R-Ariz.). pronounced in the rural areas of America, widely cirFulated internationally, as well as The purported scandal has been kept where incomes have stagnated." on Capitol Hill. simmering in the South Dakota press since As for the demands ofthe privateers that last September, surfacing at the same time funding be slashed for agricultural research, that scribblers for Britain's Hollinger Corp. Clinton said, "We need more agricultural media began: wildly bombarding President research, not less .... As we give more Clinton with unproven allegations concern­ responsibilities back to state and local gov­ Solari family charged ing the so-called Whitewater affair. ernments, more responsibilities back to the A number of veteran observers of Capitol private sector, the national government still with c imes has a commitment, it seems to me , and an r Hill politics have noted that Senator Daschle Former Brooklyn, New York Democratic is more tuned than most to the reality of the obligation to support adequate research." Congress� Stephen J. Solarz and his wife internationalfinancial crisis-and to the fact Nina are tiack in the limelight, in roles they that both Congress and the Clinton adminis­ may wishihad remained behind the scenes. tration may soon have to respond to it. So may thb British-backed promoters of the National I Endowment for Democracy House Banking chairman (NED), thf;:U.S. -based apparatus for plung­ ing sover�ign nations into chaos whenever wants expanded IMF role London requires it. Clinton defends gov't In response to the accelerating meltdown of Nina Solarz pleaded guilty on April 19 the global financial system, Rep. Jim Leach to federal tharges ofstealing $7,500in 1992 support for family farms (R-Iowa) has recommended that bankrupt from the "American Friends of Turkish Addressingthe Rural Economic Conference nations be subjected to financial reorganiza­ Women" charity organization, while serv­ at Iowa State University on April 25 , Presi­ tion under the International Monetary Fund ing as its president. She used the money to dent Clinton raised important questions (IMF). The House Banking Committee cover a b�d check, written to the Internal about the long-prevailing policy of cutting chairman was granted space for a commen­ Revenue Service on her husband's banking down federal farm-support programs . "I tary in the April 10 Wall Street Journal, privileges�as a member of the House of Rep­ don't believe that we ought to destroy the to put forth "an alternative way to stabilize resentatives. In early 1992, a House ethics farm support program if we want to keep the illiquid nation-states that puts the principal investigation found that the couple had writ­ family farm ," Clinton declared. "Should we burden of restructuring on those who choose ten 743 overdrafts during a 39-month peri­ modify it, can we improve it? I'm sure we and can afford to take risks." od . The J"stice Department said no charges can. Should we emphasize other things? Of Leach recommended that the IMF, would be filedagainst Stephen Solarz. course we should. But our first rule should which imposes genocidal policies on na­ Nina Solarz is the current executive di­ be , do no harm." tions, be given the authority to supervise rector of the Fund for Peace, which works The next five-yearfarm bill must be sub­ and administer the international equivalent closely wJth the opposition-in-exile to the mitted this year to Congress, where the pri­ of U.S. Chapter 11 and Chapter 9 bankrupt­ governmept of Sudan, based in London. vateers of the Conservative Revolution are cy laws, designed to allow bankrupt corpo­ Last year the Fund for Peace received preparing to gut what remains of vital feder­ rations and municipalities to continue to $44,000 ftom the NED, whose board of di­ al protection for American agriculture. The function. Leach claimed his scheme is in- rectors indludes Stephen Solarz, to "support

62 National EIR May 5, 1995 Brilffly

• BRITAIN'S HERITAGE Foun­ dation, the Fabian Society's free­ market stand in Washington, D.C., released its program for destroying continued publication of the London-based William J. Mathieson was president and American agriculture on April 25. SudanDemocratic Gazette. a leading voice chairman of the Harrimans' Cold Spring Over-ripe Fabian huckster Stuart of democratic pluralism," says the NED's Harbor laboratory between 1906 and 1922. Butler told reporters that "Congress annual report. NED issued another grant for The Cold Spring Harbor operation was the should sweep away most farm pro­ $40,000 to assist "activists working inside leading U.S. branch of Britain's fascist grams ." As an alternative to food, Sudan and in neighboring countries to docu­ "race-science" movement, otherwise Butler offered the foundation's re­ ment and disseminate information" on al­ known as "eugenics." port, entitled "Freeing America's leged human rights abuses. Farmers: The Heritage Plan for Rural According to an April 20 report in the Prosperity. " New York Times. the Clinton administration had considered Stephen Solarz for ambassa­ • WHITEWATER prosecutor dor to India in early 1994. Any prospects for Supreme Court orders new Kenneth Starris now probing allega­ his nomination disappeared following dis­ trial for death-row inmate tions that the CIA traded in guns and closures of his relationship to reputed Hong­ In a rare decision placing truth over mere cocaine through Mena airport in Ar­ kong mafia leader Albert Yeung Shau­ procedure, the U . S. Supreme Court on April kansas in the mid-1980s, the New Shing, who was jailed in the early 1980s. 19 ruled 5-4 that a condemned man be given York Post claimed on April 21. While a new trial, on grounds that the prosecution pushing the hope that the investiga­ suppressed evidence which might have led tion might lead to PresidentClinton 's to his acquittal. The majority decision was door, the story made no mention of concurred in by President Clinton's ap­ the roles of George Bush and Oliver Obituary reveals Olin pointees (Justices Ruth Baader Ginsburg, North. and Stephen Breyer), and Justice John Paul role in British subversion Stevens. • ROBERT JAY LIFfON, a A recentWashington Post death notice inad­ The ruling applies to the case of Curtis leading U.S. advocate of brainwash­ vertently reconfirmed evidence of British Lee Kyles, a Louisiana inmate who has ing methods developed by Britain's sponsorship of the "Conservative Revolu­ spent II years on death row . The Supreme Tavistock Institute, told the Wash­ tion" onslaught against the American Re­ Court has ordered a new trial, because the ington Post on April 21 that the public. In its obituary on April 18, the Post prosecution failed to disclose witnesses and "heartland" target of OklahomaCity reported, "Spencer T. Olin, 96, a former evidence supporting the possibility that the for a terrorist bombing was a good executive of munitions maker Olin Corp. , state's principal informer had framed the choice, because "if you can attack who was a prominent Republican Party sup­ defendant, in order to avoid coming under there successfully, in such an obscure porter, died April 14 at his home in Hobe suspicion himself for the 1984 murder of a place, it can happen anywhere." Sound, Florida." woman. EIR has previously documented that Justice Antonin Scalia, a rabid supporter • ROBERT DORNAN became "Hobe Sound" is merely a pseudonym for of execution without review, dissented, ar­ the seventh candidate to declare for Florida's coastal Jupiter Island-the heavi­ guing that the "reality is that responsibility the Republican nomination for Presi­ ly guarded, secret enclave of the Harriman for factual accuracy, in capital cases as in dent, on April 13. The California and Bush families. For generations, the other cases, rests elsewhere ....We do congressman said in a TV interview mystery island has been a retreat for leading nothing but encourage foolish reliance to that he will address "social issues" British-allied figures, both in the U.S. intel­ pretend otherwise." Justices Clarence ignored by Bob Dole and Phil ligence community and among executives Thomas, Anthony Kennedy, and William Gramm , the "only two front-run­ of arms, chemical, and drug companies. Rehnquist joined in the dissent. ners." Doman added, "We are facing The exclusive colony was organized in the In concurring with the majority decision financial disaster, but moral decay is 1930s by Harrimanites in the DuPont and written by Justice David H. Souter, Justices a bigger issue." Remington companies, engaged in arming Stevens , Ginsburg, and Breyer rebuffed Adolf Hitler's Nazis and installing them in Scalia, emphasizing that "our duty to ad­ • SENATE MAJORITY Leader powerin Germany . minister justice occasionally requires busy Robert Dole (It-Kan.) said that he The obituary's confirmation of Spencer judges to engage in a detailed review of the and Sen. Joseph Lieberman (D­ Olin's residence on Jupiter Island puts a particular facts of a case, even though our Conn.) will reintroduce their bill to spotlight once more on the family's Olin labors may not provide posterity with a new­ compel the lifting of the arms embar­ Foundation-a prime sponsor of the Con­ ly minted rule of law." The opinion also go against Bosnia "sometime soon," servative Revolution phenomenon in the notes that the "current popUlarity of capital on NBC's "Meet the Press" on April United States since World War II. The fami­ punishment" made the Court's role espe­ 16. Dole downplayed reports that ly fortune was based on the Olin Mathieson cially important. Justice Sandra Day Iran is providing weapons to Bosnia. corporate conglomerate, whose co-founder O'Connor joined Souter's decision.

EIR May 5, 1995 National 63 Editorial

Irregular waifare: the name ofthe game

On April 23, within the same timeframe as the Oklaho­ the atrocities, British Overse�s Development Minister ma bombing and the second poison gas attack in Japan, Lynda Chalker actually supported the actions of the perhaps as many as 8,000 Rwandan refugees were ei­ Rwandan government. In a IBBC interview on April ther gunned down by governmenttroop s, or were tram­ 24, this apologist for genocicfe said: "These camps are pled as panicked inmates of the camp tried to escape. full of Hutu extremists with \\jeaponry who were break­ The confluence of these events cannot be regarded as ing out at night, terrorizing 1lbe villages where people merely coincidental; they are all part of British global have [resettled] . It was in trying to empty these camps destabilization operations intended to strengthen the that some break-outs took �lace organized by Hutu imperial aspirations of the House of Windsor and the extremists, and that's what *arted the stampede. The internationaloligar chy. government troops panicke4, undoubtedly, over the The bloody hand of British irregularwarfare is rec­ weekend, which added to th� deaths and the injuries." ognizable worldwide, whether in outright terrorism or Chalker said that it was vhal for the Rwandan gov­ the imposition of terror by a fascist state apparatus, ernment to restore order around the camps, where such as that run by the Rwandan government or the weapons and "extremists" were still to be found. "It Serbian government and its Bosnian Serb offshoot. must be for the governmentdf Rwanda to restore order That is the truth behind the most recent atrocity in in the area and let the non-gqvernmental organizations Rwanda. get through with food and rnpdicine and water, other­ Some accounts have lowered the death toll to wise more will die. I'm afraid we have a long way to 2,000 , but in any event, the 80,000 people who had go and probably some more tragedies on the way, but been living in the Kibeho refugee camp have now been we'll try and prevent them," �he added. driven out to face certain death. The policy of the ruling The British policy of giving full support to Tutsi Tutsi-Ied Rwandan Patriotic Front is to shut down all genocide is identical to theiripolicy regarding Serbian of the refugee camps to which Hutus had fled at the atrocities against the Bosniarts and Croatians. As with time of the Tutsi coup. The government has shown no their early support of Adolf Hitler's rise to power, they sign of remorse for the action of the army; indeed, are again attempting to brin� the world's population only one day after the massacre, they announced their under their boot, by bringi� fascist governments to readiness to flush out the last 1,000 Hutus holed up in power. It is in this context tijat the role of Lord Rees­ the Kibeho camp. Mogg's newsletter in attempting to foment violence in "We are getting impatient with these people," said the United States must be seen . one soldier of the government's Rwanda Patriotic Since the publication of ;EIR's Special Report on Army , as hundreds of troops massed at the camp. "Ei­ "The Coming Fall of the Hquse of Windsor" on Oct. ther they surrender and we take them to jail, or we go 28, 1994, events are confinping LaRouche's ringing in and take them out. We are ready for them but we are condemnation of the crimes pf Britain's Prince Philip just waiting for orders from Kigali. " and his coterie. To quote from LaRouche's introduction While the refugee centers are being forcibly closed to the report: "The world h� tolerated for more than down, an even more brutal situation exists in Ausch­ three decades a criminal cdnspiracy of an enormity witz-like death camps which are being operated to already vastly exceeding in �ts toll upon humanity to house imprisoned Hutus who have been identified as date, the memorable atrocities of Hitler's crew." political leaders. Over 1,000people are being sent from The recent atrocities are i beginning to take on the jails to these camps each week. dimensions of actual warfare . As much as the war In contrast to other major governments, including against Hitler, this is a war �hich' we cannot afford to the Clinton administration, which swiftly condemned lose.

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