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380 EXTENSIONS OF REMARKS January 16, 1981 EXTENSIONS OF REMARKS NCLC-LAROUCHE GROUP The NCLC exhibits an extreme form as the method to bring about a Na­ REORGANIZES of the personality cult customarily de­ tional Socialist has been declared defunct. tion. To as great an extent as possible, keeping force of Soviet troops that The original LaRouche organization, the NCLC is a closed band, but one would be better able to control the the National Caucus of Labor Commit­ with its own unique twist that makes U.S.S.R.'s Middle East "clients.'' In tees

e This "bullet" symbol identifies statements or insertions which are not spoken b~ the Member on the floor. January 16, 1981 EXTENSIONS OF REMARKS 381 United States-British "axis" was "re­ Bizarre and slanderous smears of all the activities of Lyndon LaRouche and viving the cold war." The "Caucusoid" individuals perceived by LaRouche his minions. backing of Stalinist chief of the Portu­ and the NCLC/USLP have become the Among those being smeared by La­ guese Communist Party, Alvaro hallmark of the group. Rouche as "moles linked to Soviet Cunhal was hardly surprising. In 1977, The NCLC has since ignored the KGB Gen. H. Philby" are , the uncovering of a Soviet espionage CPUSA and SWP. LaRouche has publisher of the respected newsletter ring in New Jersey was termed by found more interesting targets. on U.S. political groups, the Informa­ NCLC/USLP "an undisguised attempt NCLC/USLP continuously finds con­ tion Digest; political columnist ("The to provoke the Warsaw Pact," but, spiracies which are trying to kill La­ Intelligence War") Robert Moss; Mi- continued NCLC, "the socialist sector Rouche, or provoke Russia into a nu­ . chael Hementhaler, a member of the with Czechoslovakia in the lead, is fast clear war. At various times, these con­ staff of the House Science and Tech­ unraveling the • • • networks Wall spiracies have been run by amorphous nology Subcommittee, and Charles Street has used against it." By this, entity termed "British intelligence" Fager, formerly a reporter for the the NCLC was backing the persecution but which has been expanded to in­ Phoenix, and who is now on of the charter 77 dissidents. clude hundreds of British and Ameri­ the staff of my distinguished colleague And so the use in NCLC 1980 publi­ can organizations, corporations, re­ from California, the Honorable PAUL cations of materials from official search institutes, foundations, banks, N. McCLoSKEY. Soviet propaganda media has not been legislators, government officials, orga­ The institutions smeared include the a completely unprecedented develop­ nized crime chiefs, and individuals conservative think tank, the Heritage ment in the development of the La­ from reporters and novelists to song­ Foundation, which has published criti­ Rouche group. NCLC/USLP literature writers. cisms of the NCLC. also has been supporting quite a few When the Anti-Defamation League Some 6 years ago, John Rees pub­ Cuban interests in Central and South criticized NCLC/USLP antisemitism, lished a richly documented report on America. These include attacking the New Solidarity, the newspaper of the the origins, development, and activi­ Venezuelan Government because its National Caucus of Labor Committees ties of the LaRouche group. His wife, supreme court overturned the convic­ and the U.S. Labor Party, ran a front­ Louise, a member of my staff, has pro­ tions of four anti-Castro exiles; claim­ page story-August 22, 1978-head­ vided me with continuing updated re­ ing prior to the Jamaican election that lined, "Israeli Intelligence Runs World search on terrorism, and on threats to the Jamaican Labor Party, which was Terrorism," by Jeffrey Steinberg, a U.S. security including LaRouche's successful, was trying to bring about long-time "Caucusoid." Steinberg NCLC apparatus. Independently, anarchy and civil war to benefit inter­ wrote that a "terrorist international Chuck Fager also carried out original national drug dealers; and that con­ run largely through Israeli intelli­ research into LaRouche's political his­ servative think tanks were conspiring gence and its affiliated Zionist net­ tory and NCLC, published in the to "collapse the Cuban economy and works within Western Europe, the Boston Phoenix. In the course of re­ magnify internal political dissidence United States and Canada" was "re­ searching the article, he interviewed on the island." sponsible for the kidnaping and assas­ LaRouche's parents-an action which As I have previously reported to my sination of Hanns-Martin Schleyer evidently earned him the undying colleagues, NCLC chief Lyndon La­ and Aldo Moro." enmity of the NCLC boss. Rouche was a member of the Trotsky­ Steinberg, who is styled the counter­ LaRouche's cadre have forgotten ite Communist Socialist Workers intelligence editor of subsidiary NCLC that information must be evaluated Party from the late 1940's to the early publications, the Executive Intelli­ according to its source. LaRouche's ef­ 1960's. After leaving the SWP, he gence Review, and Investigative Leads, forts to discredit individuals and orga­ became involved with Trotskyite splin­ was also security director of Citizens nizations who have exposed the activi­ ter sects. When none of these groups for LaRouche. LaRouche's security ties of violence-oriented extremist recognized, as he wished, that Lyndon squads have received professional groups-both his NCLC and others­ LaRouche, then using the alias or training in firearms and executive pro­ have had the effect only of confirming party name Lyn Marcus, was really a tection techniques. As a loyal cadre of the placement of NCLC and all other theoretician above the rank of Karl LaRouche's pdlitical cult, Steinberg LaRouche operations in that category. Marx, he formed his own small group. continues to chum out material for The operations of violence-oriented Practicing the old Trotskyite tech­ New Solidarity, now termed an "inde­ armed extremist groups who utilize co­ nique called entryism, LaRouche's pendent" newspaper. A recent article ercive manipulative techniques to labor committees joined Students for a described U.S. neo-Nazi groups as "not maintain a cadre totally dedicated to Democratic Society and recruited a small band of criminal lunatics, but the whims of its leader should be of among SDS members. Lyn Marcus was instead the covert arm of the secret concern to individual citizens, to law sufficiently highly thought of by New services of several governments" enforcement agencies, and to this York SDS members that he and sever­ which NCLC indicates are the United body. In regard to the LaRouche orga­ al other labor committee leaders States, Britain, and Israel. nization, the potential of a recourse to taught at the 1968 "Liberation As noted earlier, LaRouche has cus­ violence or terrorism against perceived School" held by SDS at Columbia Uni­ tomarily utilized the "Big Lie" tech­ enemies is obvious.e versity that summer. Just before fac­ nique against his targets. Currently tion fighting destroyed SDS, the orga­ the NCLC cadre are circulating an ar­ nization expelled the SDS labor com­ ticle on the letterhead of the New DR. MARTIN LUTHER KING-A mittees. Solidarity International Press Service GREAT AMERICAN Despite the expulsion, assorted radi­

79-059 0 - 84 - 25 (Vol. 127 Pt. 1) 384 EXTENSIONS OF REMARKS January 16, 1981 Many regulations-in the environmental, be no greater than can be soundly support­ world levels. The "composite" price, that is, civil rights, and other areas-are useful and ed by growth in the private economy. the price of the national blend of domestic necessary. But too many regulations, issued We have reached the end of the line. The and imported oil which determines what too rapidly and thoughtlessly, in ever great­ growth of social programs can no longer consumers pay for products, will be about er complexity, defeat their every purpose, exceed the growth of the • businesses on $3.50 a barrel lower than the average world except perhaps the enlargement of govern­ which they finally depend. price of about $39 a barrel, after the recent mental power. A crucial mandate is to prune This is the bottom line. OPEC prices increases. the forest of rules and let the economy But there is also a line of hope. For the Price controls are scheduled to expire at grow. best way to reduce the burden on all Ameri­ the end of September. But some in the new Equally important is a prudent program cans is to enlarge the total economy and to Reagan administration argue that it should of tax cuts for corporations and individuals. give the poor and unemployed opportunities happen much sooner. In his "Economic The initial purpose of supply side tax cuts is for real jobs. And that can be done if we Dunkirk" memorandum, budget director­ to counteract the damage already inflicted have faith in the future of freedom. We can designate David Stockman urged that do­ on America's corporations by the vicious in­ never surely predict what is to come. But we mestic crude oil prices be "administratively terplay of inflation and taxes. While there can be sure that any trial or difficulty can terminated cold turkey" by February 1. An­ is still some disagreement on the form that be overcome by the American people, if other Reagan adviser has recommended depreciation reform should take, there is their leaders trust them to be free. even swifter action-that he decontrol now gratifying agreement that it has top By relieving our workers and entrepre­ "within the first hour of moving into the priority in tax reform-that we must in­ neurs of the burdens of inflation and con­ White House and changing into his working crease, and increase dramatically, the speed trols, we can release the most powerful en­ clothes." at which new plant and equipment can be ergies in the history of the globe-the ener­ A number of reasons have emerged for written off. We should also implement a ju­ gies that transformed a wilderness into the swift decontrol. The most compelling, ironi­ dicious program of income tax cuts that will world's most productive economy. We face cally, is that decontrol now might end up ultimately encourage personal savings. problems today. We confront limits. But if being cheaper for consumers than decontrol Special assistance for R&D also is justi­ we remember our past, we can gain inspira­ eight months later. fied because its benefits spread far beyond tion for our future. We can understand that Oil prices were controlled along with ev­ the company pursuing it. Otto Eckstein of our current limits and problems are merely erything else in 1971, as part of the Nixon Data Resources has concluded that supply our newest frontier. freeze on wages and prices. Then a sudden side tax reforms designed to enhance pro­ In my own lifetime, I have seen America rise in the world market in 1973-74 led to a ductivity can be an effective instrument in triumph over crises of depression and war long, grueling battle over domestic oil overcoming inflation. In a report for the far more desperate than our current plight. prices. Should they be set by the world Joint Economic Committee, he presented Provided we keep our trust with the Ameri­ market? Or should they somehow be re­ empirical evidence of a multiplier effect in can people-and maintain our faith in God strained? Was the quadrupling in prices the the relationship between productivity and and in freedom-! am confident we can pre­ result of international pressures or oil com­ inflation. Each sustained increase of one vail over the curse of inflation that afflicts pany manipulation? Were oil-company prof­ percent in productivity growth can bring a us today.e its "obscene"? two percent reduction in the rate of infla­ The outcome of the debate was a clumsy, tion. unwieldy system of oil price controls which, In the long run, innovation is perhaps the DECONTROL OIL NOW, AND in 1975, were extended at least through Sep­ economy's most potent force for lower SAVE tember 1981, with the option to renew. In prices. Between 1950 and 1974, for example, the period 1976-78, the composite price re­ high technology companies grew about sulting from the blending of domestic prices twice as fast as the rest of the economy, HON. STAN PARRIS with imported prices was 15 to 25 per cent while their prices grew only one-sixth as OF less than the world price. fast. In general, throughout the economy, IN THE HOUSE OF REPRESENTATIVES On April 5, 1979, in the midst of the the companies with the highest profits are Friday, January 16, 1981 Second Oil Shock, set off by the fall of the those that can use earnings most produc­ shah of Iran, President Carter announced tively in reducing the costs of the entire e Mr. PARRIS. Mr. Speaker, as Presi­ that he would allow controls to run out at system. dent Reagan begins his term of office the end of September 1981. The move made Let me conclude on this note. as the 40th President of the United a great deal of sense. For, during the latter As bankers, you and l-and particularly States, he faces a unique challenge in half of the 1970s, American oil imports had you-must spread the word to all of those his effort to restore our economy. increased dramatically-up to almost half of with whom we come in contact-our custom­ total domestic consumption. The United ers, our neighbors, the media, and politi­ One of the first steps he can take, States had become by far the largest buyer cians alike. We must convince our constitu­ which I believe will greatly assist of oil in the world and in German Chancel­ ents that inflation, once and for all, must be America in its effort to reduce our de­ lor Helmut Schmidt's phrase, its "sheer brought under control. You in this audience pendence on foreign sources of energy, weight" in terms of imports and consump­ carry considerable clout in your local com­ is to immediately decontrol the price tion had a profound impact on the market. munities. I would urge you to use it-to of domestically produced petroleum. Yet American consumers were given false demand an end to the debauchery of the These controls are scheduled to signals by prices that, in effect, "lied" about money of the American people and the be­ expire at the end of September 1981 the relationship of the domestic to the trayal of their trust. and this action by the President would world market. The key truth we must communicate, the Amidst the passions and suspicions of crucial fact we must face is that unless we send a clear message to our allies of those months, President Carter's act was a halt the irresponsible growth of government our willingness to reduce our level of courageous political decision. It was received spending-we will fail in all our other goals. imports. with surprising calm. Perhaps the public's It is that simple and also that painful. I would like to insert at this time an thinking on the oil problem was undergoing We are talking about programs that in­ article which appeared in the Wash­ a change. The fall of the shah and the rise volve literally millions of Americans. The ington Star of Sunday, January 11, of the ayatollah was bringing home how growth of such programs over the past 40 1981, for my colleagues' benefit and power had shifted from the oil companies to years is a great tribute to the generosity of use. OPEC. Moreover, President Carter had fol­ the American people-and no major politi­ lowed up with a windfall profits tax that re­ cian or other American leader, least of all The article follows: sponded, in the eyes of many, to the equity myself-wishes to have these programs re­ DECONTROL OIL NOW, AND SAVE issue. pealed. It may not make sense at first glance, but But since the 1980 election, pressures have But I would not be honest with you if I immediate decontrol of domestic crude oil been building for immediate decontrol. did not say something else: the headlong ex­ prices could end up saving the American Some of that can be explained in terms of pansion of government benefits, if it contin­ consumer a lot of money. For quick decon­ basic Reagan policies-cut back on regula­ ues, will make it impossible for us to control trol is one of the most important steps that tion, depend on the market-and as a re­ inflation, or restore healthy economic can be taken to try to prevent another dev­ sponse to vocal supporters. growth, or provide adequately for the na­ astating run-up in world oil prices that The urgency, however, arises from an­ tional defense. The burden of government might well result from the Iran-Iraq War. other reason-the continuing war between benefits on the productive economy must Price controls on oil keep average domes­ Iran and Iraq. Given the amount of oil lost first be reduced, and future increases must tic crude oil prices $6 or so a barrel below to the world market because of the conflict January 16, 1981 EXTENSIONS OF REMARKS 385

- January 16, 1981 EXTENSIONS OF REMARKS 399 cies that the incoming administration pro­ nouveau-monetarist program that Reagan LOOK AT THE FACTS! poses are grossly biased toward the well-to­ appears bent on, it acknowledges the wage The Economic Commission for Africa, do. Labor will respond to them by struggling spiral as inflation's deepest root. which is a United Nations organ, established for the largest wage increases it can muscle, It is ever so much easier to pretend that that 14 African countries had achieved no and the spiral of inflation will run on. What technical manipulation of monetary and tax growth at all since their independence in we must seek is a true accord between labor policies will stall inflation ana lead to a new the 1960s and, indeed, that in most cases the and management comparable to that wave of productive investment. Those poli­ standard of living was lower than before achieved in Japan. There, in contrast to cies not only misdiagnose inflation, but also independence. Another UN body, the Food Britain, a spirit of understanding and represent a political cop-out. If we really and Agriculture Organization, found that mutual interest across the bargaining tables want to stop inflation, the working people the per capita food production in Africa had has led to low inflation, high investment, of this country have to be involved and have declined by an average of 1.3 percent per minimal unemployment and the most strik­ to be asked for sacrifices. They are simply annum. Africa features prominently in the ing growth of any major economy in the not going to cooperate with any program United Nations list of "Most Seriously Af­ world. Inflation, in short, is a social and po­ that lavishes handouts to business while si­ fected Countries." Indeed, it is a myth that litical problem that cannot be solved by multaneously squeezing interest rates so African countries are independent: In the monetarist tinkering or a package of busi­ high that their children can't afford to buy last 20 years or so, they have become more ness tax breaks. ahome.e dependent on the colonialists and imperial­ If we are going to endure a period of aus­ ists-through billions of dollars in develop­ terity, we must find a more equitable pro­ THE MYTH OF AFRICAN ment aid from the West as well as their gram. That means one of sacrifices for all­ INDEPENDENCE trade and other economic ties to the former not simply "incentives" to business and in­ mother countries. As far as maintenance of vestors. Here are a few parameters of a pro­ their power structures by weaponry, they gram that would have a chance of working: HON. LARRY McDONALD have become dependent on their Commu­ Limit wage increases. Much as he may OF GEORGIA nist masters in the case of countries such as prefer dodging this politically volatile issue, IN THE HOUSE OF REPRESENTATIVES Ethiopia and Angola. This picture of retro­ Reagan must come to realize that labor will gression is to be found throughout most of continue to reach for the largest settle­ Friday, January 16, 1981 Africa. In Mozambique, agricultural and in­ ments possible. Insofar as these settlements e Mr. McDONALD. Mr. Speaker, dustrial production has plummeted by 70 surpass the rise in productivity, they form since World War II, we have been percent in the five brief years of independ­ the base of our inflation. They can only be watching the Western-induced winds ence. halted by Reagan's working with labor to of change blow over Africa. What have This is a very tragic story of what one develop a program on wage restraint, prefer­ man, one vote has meant to Africa. And I ably by consensus, but, if need be, by law. these winds of change produced? The have not even touched on the even more Arbitrarily, let us say that the ceiling we theory is that they produced democra­ tragic record of Africa on human rights: shoot for is 5 percent annually for three cy, one man-one vote and prosperity. The upwards of 1,500 people who, Amnesty years. At best, this might limit the base rate The grim reality is that they have pro­ International estimates, are in indefinite de­ of inflation to 3-4 percent. We must have an duced a series of dictatorships, some tention without trial in Tanzania; the un­ incomes policy. Soviet controlled, labor camps, and counted thousands who were butchered to Focus tax breaks on workers. Since any misery. Food production has gone death in Equatorial Guinea; the 1.3 million wage-restraint program would require sub­ down, human rights violations have refugees in Somalia who are victims of stantial sacrifice by labor-and provide ad­ gone up, and chaos reigns supreme. man's inhumanity to man; the statutory tor­ vantages for all businesses-there must be ture and murder machine established in Idi compensation from government. Since there The last stupid act of this policy is Amin's Uganda.... is a limit to total tax reductions, I would being played out now in South Africa Cold statistics such as these are frighten­ argue that we should target a major portion and in particular Southwest Africa. ing, often horrific. Is it possible, one won­ of our tax breaks to individuals who earn There is still time to reverse this dis­ ders, for a Washingtonian or a Londoner or less than, say $20,000-in recognition of the astrous course of action. In a recent a Parisian or a Berliner to comprehend just sacrifices the program asks of them. This, article by Dr. Christiaan Barnard, the what life is like in a one man, one vote Afri­ together with some flexibility for wage in­ can democracy? creases, would enable labor to keep within famous South African heart surgeon, hailing distance of inflation. that appeared in Leaders magazine for THE VIEW FROM THE BLACK SIDE Raise corporate taxes while increasing in­ January-March 1981, he outlines the Let me quote you a few remarks made by vestment breaks. The nation cannot return problems of Africa and why Western the black man in some of the independent to an aggressive approach to economic policy is so wrong. It is an article African countries I have visited: growth unless we reduce inflation. As a worth reading and I commend it to the "The biggest disaster that ever struck our matter of justice, sacrifice from the business attention of my colleagues. country was independence. From that time onwards, we have only gone backwards." community is an essential concomitant to [From the Leaders magazine, January­ any restraint to the wage front by labor. March 1981] "The only change that independence There is little disagreement that we must brought about is that the white bosses have stimulate investment and technology. They THE MYTH OF AFRICAN INDEPENDENCE been replaced by the black bosses." are essential to economic growth. There is "Since independence there is the possibil­ also a basic understanding that we must Following the installation of an interna­ ity to get to the top if you have the money stimulate and motivate entrepreneurialism tionally acceptable Black government in to buy your position." and long-term investment strategies. We Zimbabwe, the human rights activists are The treatment of the ordinary man in the have, in the past decade, substantially re­ zeroing in with a new vigour on South street by their new black bosses is clearly il­ duced corporate and capital gains taxes. Africa, which they regard, with its append­ lustrated by the story of Maria, aged 65, The nation must realize that there is just a age of Namibia/South West Africa, as the after she escaped from a rehabilitation limited amount the federal budget can last redoubt of white rule and colonialism in camp in Mozambique: "We were treated like absorb. If the federal government is to offer Africa. The demand is becoming more insist­ animals. We lived in tiny huts, which reeked additional tax incentives, it is essential that ent for radical change in South Africa, for of feces. There were insects, rats and flies businesses pay part of the price of reducing the elimination forthwith of all forms of everywhere. • • • the hunger. In the eve­ inflation and encouraging the supply side of racial discrimination and, ultimately, for nings, all the guards gave us was a small our economy. Therefore, we must raise cor­ the introduction of one man, one vote-or, portion of maize or sorghum. The women porate taxes at the same time we offer the put another way, for the transfer of politi­ were so hungry that they ate green grass­ supply-side incentives. Thus, businesses that cal power from white to black. hoppers and beetles. And almost all of them don't reinvest will pay part of the price of Where in Africa are the people better off fell ill with fever, dysentery, malaria or our new economic thrust. because of one man, one vote? The answer, jaundice. By day, we had to do hard labour: This, I argue, is rough and negotiable, but quite simply, is that the ordinary men and Clear the bush with hoes and axes, work in as the minimum program to snap inflation­ women-and children-of Africa are no the maize and cotton fields, repair roads ary expectations and, at the same time, en­ better off since they have had one man, one and drains. We were not allowed to wear couraging investment, it would require bal­ vote elections

79-059 0-84- 26 (Vol. 127 Pt. 1} 400 EXTENSIONS OF REMARKS January 16, 1981 night, the camp became a brothel. When­ even if it was more a case of one-man intimi­ I hope no one thinks, that because ever they felt like it, the guards grabbed a dated, one vote. So blatant has the selective only two members of the committee woman and raped her. Often, a whole troop one man, one vote concept become that voted against confirmation, the long would run through the camp looking for at­ President Nyerere of Tanzania, whose tractive women, mostly young ones." people have not had personal experience of hearings were a waste of time. As General Haig himself said, the SOUTH AFRICA'S REAL FEAR democracy for something like 20 years, stated before the results of the 1980 election process was an education for him. Be­ It is the fear that South Africa, under a were announced that he could not accept cause the hearings covered so much one man, one vote system, will show the the results because the election had been same retrogression in its economy, its treat­ ground, they were also, I feel sure, rigged. But after the results were an­ highly educational for those who lis­ ment of individuals, its standard of living nounced, and Mr. Mugabe, of whom he ap­ and its quality of life that make me believe proved, was declared the winner, Nyerere tened, as I did, to the proceedings on in a gradual evolutionary change. pronounced himself satisfied that the elec­ National Public Radio, or who wit­ The realist must acknowledge that the tions had been fair and free. nessed them on public television. place and role of the white man in South I WOULD WAGER ANY MONEY Moreover, General Haig's testimony Africa is not all negative. will provide a useful benchmark In the Ivory Coast, which is one of the I would wager any money that if with this few black African countries that has shown same fair and free election Bishop Abel Mu­ against which his performance can be an improvement in agricultural production, zorewa was returned to power, then neither evaluated as the months go by. it is now estimated that there are more the West nor the African countries, not to He was an impressive witness, who whites than before independence. In speak of the Communist countries, would had carefully prepared himself in ad­ Zambia, 300 white farmers produce 65 per­ have accepted the outcome of the election. vance and had the benefit of the cent of the country's agricultural output. In The same selective concept is being played out in Namibia/South West Africa where advice of an "old pro," former Secre­ Zaire, whites run the rich copper and cobalt tary of HEW Joe Califano. mines in the Shaba Province. the West, jubilantly supported by the Rus­ It is no mystery that in South Africa itself sians and the United Nations, is spending a Senator in particular