fast track to rule by the big banks

EIR Special Report, May 1991

Auschwitz below the border: Free trade and George 'Hitler' Bush's program for Mexican genocide

A critical issue facing the nation in this presidential election year is NAFTA, the North American Free Trade Agreement. Bush and Clinton both back it. This proposed treaty with Mexico will mean slave-labor, the rampant spread of cholera, and throwing hundreds of thousands of workers onto the unemployment lines-on both sides of the border-all for the purpose of bailing out the Wall Street and City of London banks. In this 75-page Special Report, ElR's investigators tell the truth about what the banker-run politicians and media have tried to sell as a once-in-a-lifetime opportunity to get economic growth started across the Americas. The Wall Street crowd-led by none other than Henry Kissinger-are going berserk to ram this policy through Congress. Kis­ singer threatened in April: "It should be signed by all parties, and should be defended on all sides as a political vision, and not merely as a trade agreement." Kissinger's pal David Rockefeller added: "Without the fast track, the course of history will be stopped." With this report, ElR's editors aim to stop Rockefeller and his course of history-straight toward a banking dictatorship.

$75 per copy ,. ' Make check or money order payable to: �ITlli News Service P.o. Box 17390 Washington, D.C. 20041-0390 Mastercard and Visa accepted. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor: Nora Hamerman From the Editor Managing Editors: John Sigerson, Susan Welsh Assistant Managing Editor: Ronald Kokinda Editorial Board: Warren Hamerman, Melvin Klenetsky, Antony Papert, Gerald Rose, Allen Salisbury, Edward Spannaus, Nancy Spannaus, We publish in this issue two speeches, which are especially rele­ Webster Tarpley, Carol White, Christopher White vant in light of the current monetary crisis. Both were delivered last Science and Technology: Carol White May-one in Kiedrich, Germany, the other in Tlaxcala, Mexico­ Special Services: Richard Freeman by associates of presidential candidate Lyndon H. LaRouche, Jr. In Book Editor: Katherine Notley Advertising Director: Marsha Freeman the Feature, Cynthia Rush tells the little-known story of the fight Circulation Manager: Stanley Ezrol against British free trade in Ibero-America, particularly in the last INTELLIGENCE DIRECTORS: century when patriots there took up the heritage of Colbert and the Agriculture: Marcia Merry Asia: Linda de Hoyos American System to fightBritish imperialism. In National Economy, Counterintelligence: Jeffrey Steinberg, Bill Engdahl outlines a plan for a national banking system in the Paul Goldstein Economics: Christopher White tradition of Alexander Hamilton, to be applied to the economies of European Economics: William Engdahl Ibero-America: Robyn Quijano, Dennis Small central and eastern Europe which have been liberated from Marx, Law: Edward Spannaus only to be subjected to a new slavery under Adam Smith. Medicine: John Grauerholz, M.D. Russia and Eastern Europe: Yet, no one should have any illusions that the genocidal British Rachel Douglas, Konstantin George free trade system is only a problem in less developed parts of the Special Projects: Mark Burdman United States: Kathleen Klenetsky world, like eastern Europe or Ibero-America. As the National lead

INTERNATIONAL BUREAUS: article reports, the International Monetary Fund has spelled out in Bangkok: Pakdee Tanapura, Sophie Tanapura painful detail its plan for turning the rustbucket U. S. economy into Bogota: Jose Restrepo Bonn: George Gregory, Rainer Ape/ an irreversible rubbleheap. Copenhagen: Poul Rasmussen Anyone who has traveled to the underdeveloped world cannot Houston: Harley Schlanger Lima: Sara Madueiio help but realize how much the rest of humanity depends on the Melbourne: Don Veitch revival of the American economy. But it is no longer even necessary Mexico City: Hugo L6pez Ochoa Milan: Leonardo Servadio to travel to evoke the mission of the Good Samaritan for the United New Delhi: Susan Maitra States. With a staggering percentage of American children growing Paris: Christine Bierre Rio de Janeiro: Silvia Palacios up in poverty, and our schools in shambles, we desperately need to Stockholm: Michael Ericson get back on the track of the American System. Washington, D.C.: William Jones Wiesbaden: Goran Haglund W. Allen Salisbury, a longtime member of EIR' s editorial board of advisers who passed away on Sept. 14, made a crucial contribution EIR (ISSN 0273-6314) is published weekly (50 issues) except for the second week of July, and the last week of to the solution with his discovery in the 1970s ofllie anti-free trade, December by EIR News Service Inc., 3331h Pennsylvania Ave., S.E., 2nd Floor, Washington, DC Christian economists-like Henry Carey-who advised Abraham 20003. (202) 544-7010. For subscriptions: (703) 777- 9451. Lincoln. Last year, while he was already fighting the cancer that EuropeanHeadquarters: Executive Intelligence Review claimed his life, he investigated JFK's plans to revive the American Nachrichtenagentur GmbH, Postfach 2308, D-6200 Wiesbaden, Otto von Guericke Ring 3, D-6200 System, just before Kennedy was assassinated in .963. Allen's arti­ Wiesbaden-Nordenstadt, Federal Republic of Germany Tel: (0611) 8840. Executive Directors: Anno Hellenbroich, cle on that subject was published in New Federalist newspaper, Michael Liebig EIR In Denmark: EIR, Post Box 2613, 2100 Copenhagen 0E, which has kindly granted permission to to reprint it in a forth­ Tel. 35-43 60 40 coming issue. We will sorely miss Allen, but we are also happy to In Mexico: EIR, Francisco Diaz Covarrubias 54 A-3 Colonia San Rafael, Mexico DF. Tel: 705-1295. be part of ensuring that his contribution lives on. Japtul subscription sales: O.T.O. Research Corporation, Takeuchi Bldg., 1-34-12 Takatanobaba, Shinjuku-Ku, Tokyo 160. Tel: (03) 3208-7821.

Copyright © 1992 EIR News Service. All rights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. Domestic subscriptions: 3 months-$125, 6 months-$225, I year-$396, Single issue-$10 Postmaster: Send all addresschanges to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. ITillContents

Interviews National Economy Economics

10 Dr. Janos Goyak 18 A Hamiltonian national Dr. Goyak, a priest and professor banking plan for East of social ethics who works with the Europe Christian Democratic People's William Engdahl presents a detailed Party of Hungary, discusses the alternative to the devastating perspectives for economic reform in austerity programs of the his former communist country. International Monetary Fund. A speech to the Schiller Institute's 35 Hike Babookhanian conference in Kiedrich, Germany in The editor of the newspaper of the May, to an audience which Republican Party of Armenia, Mr. included many representatives from 4 Central bank system Babookhanian is also vice president former communist countries of cracks; new monetary of the Union of Constitutional central and eastern Europe. system urgent Rights of Armenia and deputy of The British pulled the pound out of the Yerevan City Parliament. Europe's Exchange Rate Reviews Mechanism, in a move that will go 39 Yuri Chernichenko down in the history books as that The president of the Farmer Party 66 Classical LaserDiscs: many which plunged the world into the of Russia describes the grain advantages, and a few Great Depression of the 1990s. acquisition crisis in Russia this caveats summer as the worst since 1927 and "Macbeth," by Giuseppe Verdi, 6 Harvard intervenes to 1928. conducted by Giuseppe Sinopoli; aggravate relations "Giovanna d' Arco," by Giuseppe between Russia and Japan Verdi, conducted by Riccardo Departments Chailly; Beethoven Lieder, Peter 8 Centesimus Annus, a Schreier, tenor, and Norman challenge for East Europe 15 Report from Bonn Shetler, piano; Beethoven, A speech by Dr. Janos Goyak to a Monetarist solutions won't work. Symphony No. 9, conducted by conference of the Schiller Institute. Kurt Masur. 51 Australia Dossier 10 Why should we pay the Imperial myths collapsing slowly. communist debt? An interview with Dr. Janos Photo credits: Cover, page 59, 52 Middle East File Goyak. EIRNS. Page 8, Stuart Lewis. Page Iraq issues appeal on "no fly" zone. 35, Philip Ulanowsky. Page 39, Rachel Douglas. 12 Currency Rates 53 Dateline Mexico Shining Path is on the march. 13 Ethanol use debated while millions starve 72 Editorial Ethanol is a fuel made from com, Choose the LaRouche alternative, and is being touted as a way to now . boost agriculture markets. But it's a fraud: a waste of energy and money.

14 Banking Banks claim record earnings.

16 Business Briefs Volume 19, Number 38, September 25, 1992

Feature International National

24 Mercantilism vs. free 32 Shining Path arrest is a 56 IMF moves to seize control trade: the war for Ibero­ black eye for State Dept. over United States economy America The Peruvian government's capture The International Monetary Fund's There is a tradition of of Shining Path terrorist ideologue executive board took the highly "Hamiltonian" economics in lbero­ Abimael Guzman, along with a unusual step--in an election year, America which has been viciously dozen of his top henchmen, was the at that-{)fdemanding that the U.S. suppressed, but which provides the opening shot of an anti-terrorist government immediately enact a key to getting out of the current strategy which could break the back combination of draconian tax economic crisis in the region. A of that organization. increases and spending cuts. The speech by Cynthia Rush to the treatment that has long been meted founding conference of the Ibero­ 34 Serbian regular forces out to the Third W orId has now American Solidarity Movement in move to crush Bosnia come home to ·roost. Tlaxcala, Mexico in May. 35 'Armenia must win the war 58 Remembering Allen so we can develop our Salisbury, a fighter for economy' truth An interview with Hike Babookhanian . 60 'New civil rights movement'targets the 37 Greece, Turkey crises may death penalty widen Balkan war 62 LaRouche-Bevel step up 39 Russian government broke independeDt bid can't pay for winter bread An interview with Yuri 63 Inslaw Case: House Chernichenko. committee seeks special prosecutor 41 Bangladeshi migrants are flooding India 65 Elephants & Donkeys Churches not thrilled with Bush­ 43 Uruguay resists George Clinton duo. Bush's 'democratic new order' 68 Congressional Closeup Documentation: From an interview with former President of Uruguay Juan Marl Bordaberry. 70 National News

46 Pentagon, IMF target Jordan, other Arab states in arrest of Shubeilat

48 Bush miscalculates, this time on China

50 British crisis has the monarchy at bay

54 International Intelligence • �TIillEconolllics

Centralbank system cracks; new monetarysystem urgent

by Chris White

What is still called the Great Depression of the 1930s was man mark than its official DM 2� 78 floor. Thateven ing,a crisis ushered in during the month of September 1931, when the meeting of European officials ratified the suspension of the British governmentremoved the pound sterling from the gold pound and theItalian lira fromthe Exchange Rate Mechanism, standard. The events of Sept. 16, 1992 will similarly go and devalued Spain's pesetaagainst the deutschemark. Sweden, down in the history books. The British will similarly be said meanwhile, raisedits overnightinterest rates to 500%to prohibit to have plunged the world into the Great Depression of the capital flight out of the country. This was all seen as potentially 1990s, when they pulled the pound out of the European Mon­ good for the dollar. etary System's Exchange Rate Mechanism (ERM). In the United States, we still find wishful thinking: It's Scrambling for the lifeboats only a European crisis; it won't have direct effects on the Now we head into another round of emergency meetings U.S.; it may even result in a stronger dollar, as the collapse among Group of Seven and other European officials gathered of the European Monetary System forces Germany's Bundes­ in Washington, D.C. the weekend of Sept. 19-20, for the bank to lower interest rates , reducing differentials with the annual meeting of the International Monetary Fund. Rescue United States. Wishful thinking taken to this degree is fairly packages and currency realignments are supposed to be the called psychosis. order of the day. The French, for their part, will decide in a This pattern was reflected as the world monetary system referendum on Sept. 20 whether to support the Maastricht unraveled. Over the weekend of Sept. 12-13 , emergency project for the political and monetary union of Europe. This meetings of European financial and monetary officialsagreed was a vote whose negative outcome was supposed to have that Germany 's interest rates would be adjusted downwards, been the precursor to the chaos which has already erupted. and that bankruptItaly 's bankrupt lira would be devalued 7% The U. S. pundits are still insisting that, come what may , no within the ERM. These developments were greeted on Mon­ matter how the French vote, it's going to be good for the day Sept. 14 with euphoria in the United States, as signaling dollar. the vindication of so-called U.S. policy. The stock market They seem to have forgotten that a monetary system is rose 75 points. By the next day , it had become obvious that not simply an aggregation of individual currencies freely the lira could not be held at its new level , and that the British competing against each other for market approval, like con­ pound and Spanish peseta were in big trouble. U.S. commen­ testants in some other-worldly beauty competition. The re­ tators began to express second thoughts about the weekend's sources did not exist to defend the system as a whole in the developments. The stock market fell by nearly 50 points. way it has been organized. The system could no longer de­ On Sept. 16, the British government increased its interest fend itself, and the system collapsed. No amount of emergen­ rates, first by 2%, to 12%, in an attempt to stem their currency's cy meetings, realignments, or anything else, will put this slide, then later in the day by another 3%. Neither worked. By Humpty Dumpty back together again. the end of the day, the pound had been pulled fromthe ERM, There is, supposedly, some $350 billion sloshing around and , in freefloat, was trading12 pfennigs lower againstthe Ger- out there , in computer memory storage , credited and debited

4 Economics I EIR September 25, 1992 electronically in foreign exchange transactions every single a much deeper depression today , than in 1931, because of the day that markets are open around the world. London alone influence of 25 years of 'post-industrial' thinking, combined accounts for about one-third of the whole. From reports , with the wild monetarism and deregulation that the world as­ more than $100 billion of that "money" was being thrown sociates today with a decade of greed-the decade of Margaret against target currencies every day, as the crisis developed, Thatcher, Milton Friedman, and similar dangerous lunatics. in the hunt for "profits" which would materialize out of the "The only chance now is to follow the course that I have ether, as devaluations were forced. repeatedly proposed-especially thos� policies that I have What has happened is thatthe central banks which encour­ proposed since 1980. Unless the policies that I have proposed aged the creation of that electronic monster, in the name of are adopted, the United States and the rest of the world will "deregulation," "magic of the marketplace," "creative fi­ now plunge rapidly into a bottomless, accelerated collapse nancing," and the other slogans of the degenerate 1980s, espe­ of unemployment and who knows what else." cially over the period since Paul Volcker took over the Federal What LaRouche has proposed, in such forms as the "0p­ Reserve in 1978 , have finally been devoured by the monster eration Juarez" program for monetary and debt reorganiza­ that they themselves created. These were the institutions that tion in the Americas, and in his 1984 and 1988 election encouraged the growth of "offshore ," stateless Euro�market campaigns, amounts to there- invention of money, as a return monies, especially in the period from 1967 to 1971. They to "hard money" policies, against those associated with usury fostered that growth through the years of the petrodollar, and and speculation and the policy of money breeding money. then , after 1978-82, with the narco-dollar. They permitted He put it this way in his Sept. 17 statement: offshore criminal funds to be used to drive out good money, "What must be done is what I have proposed: Nationalize as economies and employment were dismantled in favor of central banking to create national banks.· Restore protection­ what they called the "post-industrial" society. ism-the American System protectionism. Issue govern­ And now, their flunkies insist that what has happened ment currency as credit; do not use public debt, use Hamilto­ will be good for the dollar, no matter what. Leaving aside nian public credit. Issue this credit at low prices through the criminal roots of much of the dollar funds around the national banks in what is called a dirigist fashion, selectively. world, ask someone who exports goods to the United States All new currency in the United States will come from one what can be done with thedollars so earnedthese days. What source, and only one source: the U.S. government treasury, does the U.S. produce, which one might purchase with the in the form of currency notes issued as credit. These notes dollars earned?Where inside the U.S. could those dollars be will be loaned at very low interest rates to public projects invested? In a bank, like Citibank? In the stock market? In primarily, state and federal infrastructurepro jects, as I have real estate or other tangible property? In government debt? indicated, for the purpose of creating immediately approxi­ What fools they all are to say the dollar will benefit from the mately 8 million new jobs in the public and private sectors. current chaos! No matter how many trillions of dollars there No service jobs-none of that garbage; back to basics. Back are stashed in accounts from the Cayman Islands and Baha­ to physical wealth. Back to an industrial society. Not one mas , through the Channel Islands and Luxembourg to Bah­ penny will be issued except to foster these physical-wealth­ rain and Hong Kong , they are about as valuable as the pound creating projects, and private industries for support. sterling has become. "That, in the United States, will start a recovery. The same thing is true in every other partof the world. However, LaRouche's proposals to so establish national banking means to end the power of There 's one American with a proven trackrecord on these those who control central banking systems. It means to end matters , proven especially in his forecasts of developments the power of those evil forces whichl control Mr. Camdes­ during the period of Paul Volcker's high interest rate dictator­ sus's International Monetary Fund today. This is a political ship from 1979 though 1982, and again in his forecasts of fight between the vital interests of the American and other coming stock market catastrophes in the spring of 1987 and peoples, and my enemies." the summer of 1989. He is Lyndon LaRouche, the framed­ This phase of thecrisis began in theimmediate aftermath up political prisoner of George Bush and company, now of the summit meeting of the Group of Seven. Their unified running for the presidency fromja il in Rochester, Minnesota. idiotic assurances that all was well with theworld, everything In a campaign statement dated Sept. 17, LaRouche pointed was under control , and everyone on the road to tecovery, to two features of what had happened the day before: only proved that there was a complete and utter breakdown "First" he reported, "the central banking system that has of leadership in the world. Their inanity collapsed thedollar. run the world, and whose chief representative officiallytoday Political leaders discredited, it is now the tum of the so-called is the International Monetary Fund, has failed. It has col­ monetary authorities. Within those G-7 countries, lapsed. That monetary system has destroyed itself with its LaRouche's voice alone has said wh.t should be done. The own policies. recent events in Europe show that there is only his way , or "Secondly, the world is in much worse condition, and in the road to ruin, and no middle ground.

EIR September 25, 1992 Economics 5 Harvard intervenes to aggravate relations betweenRus sia and Japan by Kathy Wolfe

Professor Graham Allison of Harvard University circulated a Such British consortia typically use the high cash turn­ confidentialreport to governments in late August, proposing overs in such gambling resorts to launder drug money. that a supranational committee of Washington officials and U.S., Russian, and Japanese "scholars" take charge of the Relations could have been saved crisis between Russia and Japan over the disputed Kurile Japanese-Russian relations did not have to go bad like Islands, EIR has learned. Shortly afterthe document's arrival this. When communism first ¢rumbled, Tokyo's Ministry of in Tokyo, Moscow, and Washington, Russo-Japanese rela­ International Trade and Industry proposed a grand plan to tions blew sky high. reindustrialize Russia, based !on the model of the first U.S. Titled "Beyond Cold War: Trilateral Cooperation in the Treasury Secretary Alexander Hamilton, on which Japan's Asia-Pacific Region; Scenarios for New Relationships be­ own "economic miracle" is based (see EIR, July 24). Har­ tween Japan, Russia, and the U. S . ," the report was sponsored vard's Sachs and his crony, Russian Finance Minister Yegor by Allison's "StrengtheningDemocratic Institutions" project Gaidar, instead convinced Yehsin to take the IMP's destruc­ at the Harvard School of Government. It proposes that the tive free trade program.As we reported last week, now the U.S. government hold conferences between Russia and Ja­ IMF's collapse of Russia's eoonomy has put Yeltsin in dan­ pan, resembling current Mideast "peace" marathon sessions ger of a military coup by Great Russian chauvinists. The in Washington. IMF, the British, and their Harvard co-thinkers, have thus The Sept. 14 issue of the Washington Post warmly en­ created a perfect "Let's you and him fight" trap for Russia dorsed Allison's plan, which would have Washington ex­ and Japan (in Japanese, gyofu nori) . While the real problemis plore a "broad new role" in the Kuriles. "As catalyst and Yeltsin's mishandling of Russia's internaleconomy, Russian broker, the U.S. would help redraw security, economic , and chauvinists seized on the K\ilriles issue in mid-September political links" in the area, the paper said. to wildly attack Yeltsin. Valentin Fyodorov, governor of Russia's Sakhalin province, which rules theKuriles, told the Beware free market madness New York Times Sept. 13 that he has built a "nationalist Tokyo and Moscow should both beware. Allison was resistance of generals, admirals, and members of the resur­ a major force behind introduction of his protege, Harvard gent Cossack movement" to resist any return of the islands to economics professor Jeffrey Sachs, as "adviser" to the Rus­ Japan. "If Yeltsin returns the iSlands, I will resist!" Fyodorov sian government. The "shock therapy" program Sachs de­ said, "I will launch a nation�l campaign. I will reject any signed for the International Monetary Fund (IMF) for newly agreement and I won't implement it." freed former communist countries has destroyed both the Television news reports in Moscow Sept.10 even spoke Russian economy, and post-Cold War prospects for Russo­ of military confrontation between Japan and Russia.Japan's Japanese relations in the first place. request for return of its territory, a broadcast said, "could Such Harvardfree market insanity led the government of increase tension in the region... . It is clear that if Japan President Boris Yeltsin to announce on Sept. 11 the provoca­ does not show its readiness to treatRussia as an equalpartner, tive decision to lease part of one of the Kuriles, Shikotan then a possible cooling of rel.tions, which are not excellent Island, to Carlson & Kaplan Ltd., for 50 years. Carlson & as they are , will lead to attempts by Tokyo to block assistance Kaplan is a developer registered in Hong Kong which wants to Russia by the leading industrialized nations," he said. to construct a huge tourist gambling resort with casinos and Historian Alexander Alexeyev told the Sept. 11 issue of the race tracks on Shikotan. It is actually a "paper company," former Communist Party daily Pravda, that Russia could Japanese officials report, without even a phone listing in even make a case for claiming the northern Japanese island Hong Kong. of Hokkaido, which Stalin had wanted to seize in 1945.

6 Economics EIR September 25, 1992 The British, the Harvard crew, and the U.S . media, in Japan, was furious. meanwhile, have blamed Japan since Yeltsin canceled his Dulles, meanwhile, was anxious that no peace treaty be tripto Tokyo on Sept. 9, because Japan has refused to pour concluded between Japan and Russia. Dulles, Stolyarov said, billions of dollars into Russia to bail out the very mess which intervened at the last minute to rewrite Article 2 of the Allied the IMF created. To force through the Harvard plan for per­ Powers peace treaty at San Francisco in 1951, to make it manent conflict, the U.S. media are taking the side of the vague. "The night before the signing, Dulles changed a few Russian chauvinists, and loudly blaming Japan for selfishly articles in the agreement which harmed our country," Stol­ insisting upon return of the islands, which it refers to as the yarov said. From the original wordin�-"Japan rejected all NorthernTerritor ies. Japan should not only immediately give claims to the Kurile islands 'in favor of the Soviet Union,' up theKurile Islands, editorialized the New York Times Sept. the last six words were struck out, so our delegation couldn't 14, in "Japan's BarrenDiplomacy ," but it should also imme­ sign. " diately "show more magnanimity" and bail out the IMF in Dulles knew quite well that the Japanese have always Moscow. insisted that the term "Kuriles" refers to the northern end of the island chain which Japan long ago ceded to the Russian Anglo-Americans set up dispute in 1951 Czar.The Japanese consider the four islands northof Hokkai­ While meddlers in Washington should be kept away from do, now under dispute, to be the "Northern Territories." the Kuriles dispute, an interesting fact has come to light, "Dulles wished deliberately to keep them feuding," ac­ found among the apologies the Harvard crowdis mustering cording to Allison's office at Harvard, "to keep Japan in the to back U.S. intervention. According to Allison's office at western camp and from signing a treaty with Stalin at all Harvard and Prof. Yuri Stolyarov, head of Russia's Center costs. There are U.S. State Department documents which for Japanese and Korean Studies, it was U.S. diplomat John show clearly that theDulles State Department laterregarded Foster Dulles who created the current set-up for the Kuriles use of these islands as a way of deliberately seeking to foster affair. a rivalry between Russia and Japan---o-and key relevant State "The Americans caused the problem. This should be un­ Departmentdocuments are still classified." derstood clearly," Stolyarov told the press on Sept. 11. "They Dulles's unhappy meddling should certainly be straight­ are responsible for this argument." He contended that the ened out, but not by allowing further involvement of London Soviet Union was ready to sign the official Allied Powers and Washington in the Kuriles problem. peace treaty with Japan in San Francisco in 1951, when British agent-of-influence John Foster Dulles-who had Japan not deterred been brought in as partof a bipartisan group to "advise" the "Asia has the potential to become a more powerful eco­ Truman State Department on the 1950-52 peace treaty­ nomic group than the European and North American groups threw a spanner into the works. in the early 21st century ," said Japanese Prime Minister Kii­ In fact, during most of the 19th century, Japan and Russia chi Miyazawa in a Tokyo speech Sept. 10, reacting against were allied for the mutual economic development of the Far the negotiations for North American and Maastricht free East, including the Russian Far East, under the czars and, trade blocs. "Japan should now seriolilslyconsider how it can from the 1860s, under Japan's pro-industrialEmperor Mei ji. help its Asian neighbors." In two comprehensive treaties, in 1855 and 1875-the latter Since Miyazawa's Washington speech this summer on shaped by Russian Count Sergei Witte, who had built the Japan's development of Asia, which he also emphasized at Trans-Siberian Railroad-Meiji Japan and Russia peacefully the Group of Seven heads of state summit in Munich in July, divided Sakhalin Island and the Kuriles between them, with London and Washington have beenl looking for reasons to Japan taking thefour "southernKuril es." cause a breakdown in Japan's relations with its neighbors. Neither Moscow nor Tokyo has yet realized that it was They will do whatever they can to stop Japan from using its the British who startedthe trouble in 1905 , by goading Japan capital and technology to industrialize the Russian Far East into warwith its ally Russia. Following the Russo-Japanese and the rest of Asia. British sources gloated over the cancella­ War, under advice fromLondon that the Russian "heartland" tion of the Yeltsin trip to Tokyo in this regard. Reuters in of Europe must be humbled, Tokyo struck north and occu­ London, for example, ran a long report Sept. 10, entitled pied half of Russian Sakhalin. The occupation continued "Japan Seeks to Play More Active Role in Asia," which until 1945, when, in retaliation, Stalin seized both Sakhalin concluded smugly that Yeltsin's cancellation could frustrate and the entire Kurile chain. Stalin had waited until after the the effort. "Reduced U.S. involvement, China's new flexing U.S. droppedthe second atom bomb, on Nagasaki, on Aug. of diplomatic muscle and the grouping of regional economies 9, 1945, before he declared waron Japan. Although Japan in North America and Europe, all make Japan want to be surrendered the next day, only on Aug. 18 did Stalin move more active in Asia," but, Reuters said, Tokyo has blown Soviet troops into the four southern Kuriles. U.S. Gen. the diplomatic opportunity by refusing to compromise over Douglas MacArthur, whowanted no Soviet occupation zone the Kurile islands.

EIR September 25, 1992 Economics 7 Janos Goyak

Centesimus Annus, a challenge fo r East Europe

Dr. Goyak, a professor of social ethics who works with the have fatal consequences for our society and for our history . Christian Democratic People's Partyof Hungary, delivered Because if man, who constantllYchang es, is conceived as the this speech on Sept. 5 to a conference of the Schiller Institute final authority concerning the truth, then "ideas and convic­ in Vienna, Virginia. He refe rs principally to two encyclicals tions can be easily manipulated for reasons of power" (CA of Pope John Paul /I, Sollicitudo Rei Socialis of 1988, and p. 46). In such a democracy, it is possible that decisions in

Centesimus Annus of 1991, written fo r the centenary of the society " are not examined in accordance with criteria of jus­ firstmodern social encyclical, Rerum Novarum. tice and morality, but rather on the basis of the electoral or financial power of the groups promoting them" (CA �47). After the collapse of the totalitarian systems in central and This is the model ofa degenerate, a deformed democracy, eastern Europe , the peoples and nations of eastern Europe which unfortunately does exist this way today. Against this including my own country Hungary, are in a transition phase. concept stands the Christian image of man, according to They face the unique historical task of building from the ruins which man is a creative, dynamic image of God. This is the of communist dictatorship, a democratic state ruled by law, source of his inalienable digni1y, as well as his rights. In the i.e., they confront the task of transforming a centralist divine nature of man lies his social orientation "to the other." planned economy into a free market economy. These coun­ This is nothing arbitrary. Marl realized himself in freedom tries face the unique chance of building a human economic by fulfilling his mission. The dignity of man which finds its order and society, based on the guidelines elaborated in the end in transcendence does not allow man to be used as an papal social encyclicals. I would like to elaborate this concept object. Man is the carrier, the reason, and the aim of all a bit further: I would like to elaborate on those questions being. From this standpoint, Centesimus Annus rejects the pertaining to the future economic order by looking at the consumerist thinking and living style, which enchains man papal encyclical Centesimus Annus. to his instincts and which mates man become the slave of A) The democratic state under law and the representative his objects. I have only hinted atsome of the problems, which parliamentarian system with its different parties, is a funda­ we have to deal with, when we aim at liberating man, and mental concept with respect to society and the political sys­ when instead of appearance, 'we want to build a true de­ tem. According to Centesimus Annus, "Authentic democracy mocracy. is possible only in a state ruled by law, and on the basis of a B) The biggest problem we'have, is to build aneconomic correct conception of the human person" (�46 CA). order which is in conformity with man and his needs. But Dear listeners. This short sentence , in particular its latter which system could this be? Are there any models? Centesi­ part, expresses the cornerstone of any true democracy, and mus Annus thinks it is wrong to say thatafter "communism, it is precisely on the question of man, i.e., the image of man, capitalism is the victorious social system" (CA p. 42). We where different conceptions are taken. We deal with two should not be astonished about 'the fact that the average Hun­ fundamentally opposing concepts: Either man is conceived of garian during the 40 years of icommunist reign, constantly as a "freely creating demiurgos," in the way the Aristotelian looked longingly toward the West, and only saw the glimmer philosophy conceives it, "or as a living image of God," as is and glitter, and the well-being of the system, but did not see expressed in the Platonic philosophy, or better, the Christian the shadowy sides of the system he was longing for. philosophy. These two opposing images of man dominate In the encyclical C entesimusAnnus, the popeagrees with our westernculture, definitelysince the periodof theEnlight­ capitalism as a system "which recognizes the fundamental enment, or better, since the French Revolution. and positive role of business, the market, private property, The firstconcept is based on pre-Christian or rather non­ and the resulting responsibility for the means of production, Christian ideas. It absolutizes man and everything that con­ as free human creativity in the economic sector." But it re­ cerns man, including his ethical moral behavior. This can jects that type of capitalism "in which freedomin the econom-

8 Economics EIR September 25, 1992 ic sector is not circumscribed within a strongjuridical frame­ Christian social teachings is in respect to this problem. In work, which it places at the service of human freedom in its Hungary, with almost 5 million employed, we have already totality," that is, an order in which the ethical and religious 10% unemployed. For us this is a new phenomenon. You are at the center (CA �42). might know, that the communist system put a lot of emphasis The encyclical does not go into detailed questions con­ on guaranteeing full employment. But even then there also cerning a just society or economic order. This is not the task was unemployment, but it was hidden behind the walls of of the church. It has "no models to present." Successful the enterprise. In a sense, we can say that in eastern Europe models "can only arise within the framework of different the unemployment is more problematic since it was not historical situations and through the efforts of all those who caused by economic recession, but by the restructuring of the responsibly confront concrete problems" (CA �43). The entire economy. church offers, on the other hand, a spiritual orientation, em­ 4) Finally, I would like to retuffilto my initial remarks. bedded in its social teachings. This question is very compli­ All economic orders are based on a specific concept of man, cated. I can only give some hints and some orientation points. a specificimage of man. If in the econ�my profitis the highest I want to refer to the last encyclicals Sollicitudo Rei Socialis purpose, then such an economic orderis in the final analysis and Centesimus Annus. directed against man. In such economic conditions, man is nothing but a manipulable object. He is not a value in himself, Equal access to markets not a person endowed with dignity and created in the image 1) It is necessary on an internationalscale that the nations of God. It is self-evident that the papal encyclicals all start of the Second and Third Worlds have equal access to the out from the notion of the inalienable dignity of man, of all world market. "Stronger nations must offerweaker ones op­ men, and orient toward the well-being of all men. Our task in portunities for taking their place in internationallif e and the eastern Europe could be summarily outlined in the following later must learnhow to use the opportunities" (CA �35). Of way: We should build up an economy and a society which is course, this must be done without exploiting their resources neither capitalist nor communist, but which is based on the or their labor power. For decades, the countries of the Third principle of private property and private enterprise, i.e., a World have faced these problems, but this question has now free market economy, which leaves wide room for the ful­ also become actual and acute for us in eastern Europe. We fillment of the social demands. It should be an economic can also formulate the question this way: Is the capitalist system which puts man in the center, man being conceived world ready to have us participate as equal partners in eco­ as a living image of God. As the pope says in Centesimus nomic development? How should the world economic order Annus, the "subjectivity" should dominate in such a social best develop for the well-being of all nations, i.e., the whole and economic system. That means it's not the mechanical humanity? The future of easternEurope and the whole world functions of man, but his social orientation as a human being will depend on the solution of these questions. toward other human beings, which is fundamental. 2) An even bigger load on the shoulders of Hungary, as for many other countries of the world, is the question of the Does Hungary have a chance? foreign debt. In the encyclical Centesimus Annus, the pope We now have to answer the question whether the former says that the debts in principle should be paid. But that it is socialist countries, whether Hungary under the present inter­ not permitted to demand debt payments "when the effect national conditions, has a real chance to reach that noble would be the imposition of political choices leading to hunger aim. Or whether my country has the necessary strength and and despair for entire peoples .. ..It cannot be expected that capacity to realize that. Will we use the unique historical the debts which have been contracted should be paid at the chance, or will we miss it? I want therefore to briefly show price of unbearable sacrifices." which political forces play what role in the ongoing restruc­ Dear listeners. The small country Hungary with its 10 turing effort. million inhabitants has a foreign debt of $21 billion, which You might know, dear listenel!s, that in the first free our government inherited from the communists. Half of the elections after the failure of communism, the opposition par­ debt is comprised of loans that the communists borrowed in ties won with an overwhelming majority.The strongest polit­ the last phase of their governmentfrom foreign bank consor­ ical grouping out of the elections were the Democratic Fo­ tia i.e., they borrowed the money at a time, when the failure rum, which together with the Small Farmers Party and the ' of the centrally planned economic systems already was total­ Christian Democratic People's Party formed a government ly foreseeable. Now, dear listeners, just imagine how this coalition. In this coalition, the three parties represent alto­ debt problem bears on the already problematic restructuring gether 58% of the parliamentary seats. It is very important of our economy. to stress that these coalition parties base themselves on the 3) I would also like to point out the problem of unemploy­ Christian cultural heritage of Europe. They conceive the ment. This plague is being criticized harshly by all papal Christian values as fundamental for policymaking. But I also social encyclicals. We all know what the viewpoint of the want to underline that such Christian social and economic

EIR September 25, 1992 Economics 9 ideas are only explicitly represented by the Christian Demo­ ElK: Are you a member of a politicalparty? cratic People's Party. The present opposition instead favors Goyak: I am working with the Christian Democratic P�­ a free capitalist market economy based on such liberal ideolo­ pie's Party, but since I am a priest, I am not a member of that gy, which Pope Paul VI in his writing Octogesima Adveniens party; a priest is not allowed to be a member of a particular also sharply criticized. It seems that these people aim for an political party, but I work with them. unlimited liberal capitalism, which dates back to the initial phases of capitalism. ElK: How did you come in lContact with the Schiller In­ There is a third force in my country represented by the stitute? former communists, or, better said, the former nomenkla­ Goyak: Through very good friends of mine who are mem­ tura, which still has a lot of key positions in the economy. bers of the Association of Fotmer Political Prisoners-my And this, despite the fact that in the elections the communists father was one of them. And in HungaryI and othersfounded could not send any deputy into parliament, and its successor an observer group for human rights. I am one of the founders party only got 11 % of the vote. We must stress that the former of that human rights observer organization, which is not communists in respect to the economic order get very close limited to the political prisoners organization. to the liberal [free market] ideas and thus they form some type of united front against the coalition government. The ElK: What broughtyou to the United States? deeper reason for this commonality is based on their common Goyak: I have found in my profession of teaching Christian image of man. That is, the absolutizing of man. In such social doctrine that many of tht ideas in this Christian social circumstances, the coalition wants to build a just, that is, a doctrine, as I teach it, are thddeas that are in the mind of social economic order. Lyndon LaRouche. Finally, our chance depends upon resisting certain for­ At present, not only among leaders but also among the eign influences, and those inside the country, who propose a general public, it is known that there are two possibilities, liberal capitalist economy. two choices, two ways that Hungarycan proceed at this time. Thereare two groups pushing Hungaryin two differentwa ys. One, which is for a capitalist freemarket economy. The other Interview: Dr. Janos Goyak group advocates for Hungary a social, humanist, Christian ideal in economics. We woul� say that what is needed, is that the decisive influencebe of the European Christian tradi­ tion. The decisive influence w(iluldbe better from this direc­ Whyshould we pay tion, rather than from the free market group. This is suffi­ ciently clear to enough people in Hungary, including within the ruling governmentcoalition . the communist debt? Therefore, I am here because there is an equivalence, or the ideas are very nearly the! same, between the Schiller Dr. Goyak, a professor of social ethics in Hungary, was Institute and those in Hungary who stand with the ideals of interviewed by Ronald Kokinda in Leesburg, Virginia on EuropeanChristian civilization. Sept. 11. EIR: Is this your first visit to the United States? Goyak: I was firsthere five years ago , in Boston and Chica­ ElK: What is your background? go, with a delegation of ChristiM journalists. Goyak: I am a priest, a Catholic priest. I studied at the Lateran University in Rome, and I have been teaching the ElK: Are there any particular impressions you have of the doctrine of Social Ethics of the Catholic Church in the high United States, seeing it both fi\le years ago and today? schools for several years. Goyak: We had meetings with Bishop Weakland of Mil­ Under the communist system, the Catholic Church was waukee, and he had given us an explanation and vision of not allowed to have a university; we were only allowed to the situationin America, and thttren ds. He said thatAmerica have a school up to the level of academy or high school. But has a "superman" mentality. now we have been able to rebuild a university. A particular problem we have in Hungary is the many. small Protestant religious se¢ts which have come from EIR: What is the name of the university where you teach? America to proselytize, backed by much money. This is not Goyak: The Academy of the Science of Faith of Budapest. good. Also, I am a journalist. Some 10-12 years ago I was a copyed­ itor for the Catholic News Agency of Hungary . It is an agency EIR: Are these groups backing the freemarket or theChris­ that is 90 years old, founded before the First World War. tian approach on economics?

10 Economics EIR September 25, 1992 Goyak: These religious sects are coming into Hungary in­ big problem. People really aren't thinking beyond the very tending to break up the old religious traditions of Europe difficultsituation presented by these plain facts. People know of both the Protestant and Catholic churches. And this is a we have to come up with capital, and they're not thinking, dangerous movement. from whom that money is going to come and with what conditions attached. EIR: How do you perceive the danger? Goyak: The problem is that these are sects which have an EIR: Are they aware that the IMF has never allowed a net individualistic view of man. The image of man which is outflow of capital to a country? traditional in Europe, including Catholic and Protestant Goyak: As they have lived a very simple and materially churches in Europe, is being undermined by sects which have deprived existence under communism, people still think to an individualistic image of man. this day that in the West things look better, that what is Individuality and personality are totally different. Indi­ western is good. They don't make a differentiation between viduality means I do not have a natural relationship with the IMF or anybody else; it is just assumed that to be western others . All the churches in Hungary believe that the person is better. has a natural relationship with others, with God, as man and wife. Each man has this natural relationship with all EIR: What is your opinion of the Productive Triangle pro­ mankind. This is a different image of man than these sects I posal that's been advanced by Lyndon LaRouche? How do am referring to, which are pushing a liberal idea that every you think this could affect Hungary? . individual is simply an isolated individual. Goyak: It's my opinion and the opinion of others, that the former communist countries of eastern Europe have to more EIR: In your speech to the conference, you said that the tightly cooperate, especially in economic areas. Although it papal encyclicals say that the debt of a nation should be paid is just a beginning, we are in the process of developing closer unless the people are being driven into famine, despair, and economic cooperation with Ukraine, with which we have a intolerable sacrifices. Is the International Monetary Fund very long border. What I take out of this program as most driving Hungary into famine, despair, and intolerable sacri­ important, is that we must have better understanding and fices? closer economic relations between easternEurope and central Goyak: This is a difficultquestion to answer. Yesterday , I Europe, with help from westernEuro pe. spoke with Hungarians here in Washington, and they ob­ So what exactly does this mean? Germany and France served that the greatest mistake of the new government in are areas that are very highly developed, but they are capital­ Hungary has been to assume the debts of the previous govern­ istically developed. Therefore, I have a little anxiety about ment. Generally, everybody in Hungary is now asking: Why what contents of this plan would end up being realized. We should we have to pay the debts that were incurred by the may want to go one way, and western Europe may want to communists? And we really don't know where all this money go another, so exactly what content will we be getting from we are paying out is going; we don't know where this money these westernEuropean countries? is going to be invested. Hungary has $21 billion in debts, and half of that was EIR: Even though the plan emphasizes the infrastructure incurred at the very end of the communist regime when they development? knew that they were going to be out. Goyak: This is in agreement with . the political parties in Hungary, for example, the Christian Democrats, who under­ EIR: And the IMF knew that the economy was failing? line the necessity of infrastructure development. Goyak: The IMF knew that the communists were going out of power, too. EIR: You mentioned that you have increasing contacts with Ukraine. Is this on a governmentlevel? EIR: LaRouche warned that the IMF policy was to deliber­ Goyak: It is on the partylev el. Different people have under­ ately destroyHungary and the other states that were emerging taken these contacts, not just individuals, but business con­ from under communism. Is that clear to you and others in tacts in trade and industry . Also, don't forget that there is a Hungary? small Hungarian minority living in Ukraine. Goyak: That is not totally clear. Our country stands in tre­ I also want to say on this plan of LaRouche thatit is clear mendous economic difficulties, because in the past the cen­ that all of Europe must be seen as a unity. So, from that trally directed planned economy under the communists did broader standpoint, of course, LaRouche's plan is excellent. not function. We have to totally restructure our economy, because over 90% had been in the hands of the communists. EIR: Are you for or opposed to the Maastricht Treaty for So, we have to come up with some capital from somewhere; European Union? we don't have any capital, all we have is debt, and that is the Goyak: We have little reliable informationabout it. Clearly,

EIR September 25, 1992 Economics 11 the future of Europe must be a unifiedEurope , provided there is also room to maintain legitimate differences-traditions, urre interests-between states. But this all should be in the con­ C ncyRates text of unity. The dollar in deutschemarks EIR: I'd like to come back to the religious sects that are New York late afternoon fixing coming from the United States into Hungary, because a plan 1.80 for development requires a sense of moral purpose greater than the individual. If everyone is in their own little world, 1.70 ; then this undermines the chance for economic recovery. Goyak: A .nation is a natural community. The individual 1.60 1'0 verifies his individual identity through the cultural unity of - - the nation. The nation, and the relationship of the individual I.SO "-- � f to the nation, enriches mankind. In general, Europe has bene­ fited up until now from the differences in cultures and the 1.40 1214 12111 12118 121Z5 111 118 1115 1122 contributions of each nation. The dollar in yen EIR: How much influence does the Catholic Church have New York late afternoonfixing in Hungary? , Goyak: It is a misfortune that for 40 years the Catholic 140

Church was suppressed in Hungary by the communists. I 130 Many people were strengthened in their religion by the op­ ; pression, but many others turned away from a religious life, - 120 - - especially the youth, because the church was not able to teach religious education. So, some 80% of the youth have no 110 religion, and one could say that we have an entire generation without religion. In our society, the church only has a mea­ 100 sure of influence; its influence is bounded. But now, never­ 7122 7129 8112 8119 8/26 912 9/9 9/16 theless, its influence is growing. Even among the middle­ The British pound in dollars aged people who grew up under communism, the church's New York late afternoon fixing I influenceis beginning to grow.

1.90 EIR: I got the impression from your speech at the confer­ ...... � ence that it is only the Christian Democratic People's Party 1.80 ,/ : .-- � which has the firm outlook of creating a nation based on � � the western Christian outlook, the papal encyclicals, and 1.70 Christian economics. Is my impression correct? Goyak: I could say yes, that this party has a direct relation 1.60 to the teachings of the pope and the encyclicals. But there I.SO aretwo other parties in the coalition, the Peasant's Party and ' 1214 12111 12118 12125 111 118 1115 1122 the Christian Forum, and they are recipients of the moral heritage of Christian Europe and moral Christian values. The dollar in Swiss froes President Antal has stated this. ,New York late afternoonfixing

EIR: Has LaRouche's Science oj Christian Economy been 1.60 useful? If so, how? 1.50 Goyak: I can only think of this from my standpoint as a teacherof Christian ethics. The Christian view of man which 1.40 .... -I " Lyndon LaRouche, and also Helga LaRouche have, is deci­ - "- f sive for our future. 1.30 -, � The question is whether the leaders of the nation and the leaders of industry, in developing economic policy, clearly 1.20 see that this moral question of a Christian image of man, is 1214 12111 12118 12125 111 118 1115 1122 the decisive question for our future.

12 Economics EIR September 25, 1992 is produced with an alcohol content of 90% . The caloric value of ethanol amounts to 5.88 kilowatts per hour. A comparison with the heating power of other fuels is: straw (air dried), 4.3 1; wood, 5.23;coal, 9.24; and heating oil, 10. Ethanol thus possesses a caloric content similar to Ethanol use debated straw or air-dried wood. Wasting energy while millions starve But the energy costs of the production process must also be considered. Included must be the energy required for the by Suzanne Rose cultivation, harvest, transport, and processing of the plants. Pilot projects in Europe showed that the net change in energy While the great African drought and famine and harvest was negative. More energy must be employed in the produc­ shortfalls in Russia and eastern Europe confront us, the big tion of the ethanol than is available for use in the end product. agricultural debate in the United States this election year is The energy content of the processed foodstuffs vastly ex­ whether President Bush will press for expanded use of etha­ ceeds the energy content of the ethanol produced. The prod­ nol to boost agriculture markets. The alternative, critics say, uct exhibits an energy density which is relatively trifling, is a collapse in com prices and a sellout to big oil and environ­ compared with that possessed by the raw material out of mentalist interests. The reality is that the control over the which it was originally produced. com markets by the big com processors, who are also thebig The degree of refinement-the quotient of the energy producers of ethanol, has been the cause of the collapsing content of the processed foodstuffs to the energy usage of farmer prices for com. Use of com for fuel is a waste of the production process-is: sugar beets, 5.0; potatoes, 3.17; energy and money. com, 5.36; grain, 3.6. The prospective products at harvest Ethanol is a fuel made from the byproducts of vegetation have stored the totality of the energy that must be expended biomass, such as com. Its use has expanded a hundredfold through fertilization, watering, and the employment of ma­ since the Carteradministrati on, when it was introduced under chinery. When ethanol is further processedfrom these mate­ the guise of making the United States less dependent on rials, the figures are: sugarbeets, 0.56; potatoes, 0.51; com, imported fuels.It has become a boondoggle for the agribusi­ 0.37; grain, 2.1. The degree of refinement is only positive ness cartels such as Archer Daniels Midland (ADM) and for grain, and negative for all other products. Thus, more Cargill. Today, 350 billion bushels of com are processed energy is used, in order to transform potatoes, com, and annually in Iowa and Illinois, in plants built with government sugarbeets into alcohol, than the resulting alcohol is able to subsidies and tax breaks. The goal is to triple the com pro­ deliver. When you include the caloric value used up during cessed for this purpose. the production process, the proportion becomes absurd. In April, the Environmental Protection Agency an­ In order to calculate the real costs of ethanol, the pro­ nounced that it would not include ethanol on its list of fuels cessing schedule of the raw materials is decisive. Agricultur­ which can be used to reduce pollution levels to comply with al goods can only be harvested at specifictim es, and then can the Clean Air Act. The EPA argument was not that com is only be storedfor a short time, so thatthe processing period too precious for food and feed purposes to be burned as a is limited to 90-250 days. This raises the investment costs fuel, but that ethanol use can contribute to ozone depletion considerably, because for the rest of the year the installation when warm weather causes the alcohol to evaporate. ADM, lies idle. The fixed costs, such as installation, building, up­ the biggest producer of ethanol, immediately announced that keep, and insurance, amount to about 50% of total costs. it was scrapping plans to increase its ethanol-producing facil­ Afterthat comes the 10% which makesup personnel, energy, ities in Iowa. Farmers, desperate for markets, are falling and other costs. A study produced by the German govern­ for this definition of the controversy-it's us little farmers ment research ministry, "Fermented Alcohol from Agricul­ against the big, powerful oil interests. tural Products as Bio-Fuel," shows thatethanol is four times Ethanol makes use of energy stored in plants through as expensive to refine as gasoline. photosynthesis in the form of sugar or starch. Its two main German government studies showed that ethanol is not sources are com and sugarbeets. The sugar is fermented into competitive with gasoline. For a fu�l content of 5% ethanol, ethanol and carbon dioxide by means of yeast. The carbohy­ because ethanol has less energy content than gasoline, 12.5 drates are split off through hydrolysis, before they can be liters of gasoline-ethanol mixture would be needed per 100 fermented into ethanol. This creates a 6-12% ethanol solution kilometers, as opposed to 8 liters of gasoline for every 100 which is processed to a higher percentage through distilla­ kilometers. Studies made by Volkswagen indicate as well, tion. This process entails a considerable expenditure of ener­ with higher condensation and lower speeds, an increase in gy. Through a repeateddistillation, the so-called pure alcohol usage of 25%.

EIR September 25, 1992 Economics 13 Banking by John Hoefle

Banks claim record earnings capital to $248.5 billion, and yielding Interest-rate gouging and a "no such thing as a bad loan" policy an equity capital-to-assets ratio of hide massive insolvency in the second quarter. 7.23%, th¢ highest level since the 7.44% recorded for 1966. During the first half of 1992, equity capital in­ creased a whopping $16.7 billion, by the FDIC's phony numbers. The situation with the banks C ommercial banks in the United cutting back on their loan loss re­ would look much different, were one States earned a record $7.9 billion in serves, which are funds set aside to to performI some simple calculations the second quarter of 1992 , according cover future loan losses. At the end of with the FDIC's bad-loan data. to the latest Quarterly Banking Profile the second quarter, the banks' aggre­ According to the FDIC, U.S. of the Federal Deposit Insurance gate loan loss reserves stood at $55.3 banks had $858 billion in real estate Corp. (FDIC), demonstrating once billion, or $516 million less than at loans outstanding at the end of the again the outrageous statistical fraud the end of the first quarter, and some second quarter, of which 4.43%, or which permeates governmentbanking $45 million less than at the end of $38 billion, were officially classified statistics, especially in an election 1990. as non-current. The banks also held year. The banks' justification for this $27.7 billiqn in foreclosed realestate. The second quarter earnings sur­ decrease in loan loss reserves, is that Together, that's $65.7 billion in bad pass the previous quarterly profit re­ the level of non-performing loans has real estate,· of which roughly half is cord of $7.6 billion, set just three also been dropping. According to the held by the big banks. That $65 .7 months earlier. Thus, the banks have FDIC, $71.9 billion of loans and billion is rltore than eight times the supposedly earned$15 .5 billion in the leases were 90 days or more past due "record" profit reported for the quar­ first six months of the year, and are on at the end of the second quarter, down ter. Had the banks set aside reserves a pace to smash the yearly earnings from $75.3 billion the previous quar­ for just 12% more of their admitted record of $24.9 billion, set in 1989. ter, and down from a peak of $85.4 non-performing real estate, the al­ According to the FDIC, there billion in the firstquarter of1991. The leged record profit for the second were "two primary factors" which led level of "troubled assets" (non-current quarter would have disappeared. Had to these record profits. First, "favor­ loans and leases plus foreclosed real they incre�ed their reserves enough able interest conditions produced wid­ estate), was $99.7 billion at the end of just to cover that admitted non-per­ er net margins for the fifthconsecutive the second quarter, the firsttime since forming reall estate, the $10.4 billion quarter," and second, "loan-loss pro­ the end of 1990 that figurehas dropped required w6uld have given the banks visions continued to shrink." Another below $100billi on. a loss for the quarter. Had they in­ factor cited by the FDIC was "gains The claim that non-performing creased their loan loss reserves on sales of investment securities." loans have been decreasing during a enough to oover their $99.7 billion in Part ofthat is true. The banks have period in which the economy contin­ reported trOubled assets, they would indeed made a killing because of the ues to deteriorate , while the biggest have had to add $44.4 billion, wiping low interest rates, by dropping the in­ real estate bankruptcies in history are out their "record profits" nearly six terest rates they pay for money faster occurring, is absurd. What these fig­ times over. than the interest rates they charge for ures really reflect, is massive collu­ According to EIR's calculations, money. This price gouging does in­ sion among bankers , regulators, and had the ba(lks merely matched their deed produce "wider net margins." the press to hide the skyrocketing lev­ loan loss reserves dollar for dollar For the quarter, according to the el of bad loans , and the bankruptcy of with their admitted non-current loans FDIC, the banks earned $64.5 billion the banks, from public view. In effect, and leases, the $94 billion profit re­ in interest income, against $31.6 bil­ a political decision has been made that ported by the banks since the begin­ lion in interest expense, yielding a net there is no such thing as a bad loan. ning of 1987 would have been trans­ interest income of $32 .9 billion. Thanks to this creative account­ formed into a loss of $398 billion, and The rest of the story is pure fiction, ing, the banks reported a record $9.3 the $2485 billion in equity capital sprinkled with just enough facts to billion increase in equity capital dur­ would have been transformed into a make it fly. Banks have indeed been ing the quarter, bringing total equity negative $243 billion.

14 Economics EIR September 25, 1992 Report from Bonn by Vo lker Hassmann

Monetarist solutions won't work on a much reduced level, to their tradi­ The German economy is in a bad slump, but Moelleman' s tional markets iQ the old Comecon. The Institute for Economic Research recipes will make it much worse . in the east German city of Halle warns that the collapse of eastern industrial production will worsen. The engi­ neering sector, hit by the collapse in trade with eastern Europe, was pro­ German Economics Minister Jiir­ knew how big a liability the debt left ducing in May just 25% of its monthly gen Moellemann has called for drastic over from unification would be. The output for the second half of 1990. action to keep a vicious cycle of stag­ official guess is that when the Treu­ Bonn's Economics Ministry reckons nation in the west from undermining handanstalt-the agency selling off that even if production and services in recovery in the eastern states, during East German assets--ends its task at the new states increase by 100% till the recent budget debate in parlia­ the end of 1994, its debts will total 1996, jobs will shrink by 8%. ment. "Most of the economic indica­ DM 250 billion ($173 billion). The In westernGermany , the economy tors point downward. The expected other fund that assumed old corporate is slumping badly. Industrial output relief from . exports is not within debts of the former communist enter­ has been declining since 1992 began. reach," he said. His call for tough fis­ prises, which the Bonn government Capital goods orders dropped by 8% cal austerity, public spending cuts, refuses to write off, is likely to total in July. The machine tool sector, the corporate tax reform, wage restraint, DM 120 billion. These agencies' backbone of German stability, lost and large-scale deregulation, circulat­ funds are supposed to be incorporated 20% of its orders in 1991 and will like­ ing in a ministry strategy paper, has into the German budget over coming ly lose another 25% this year. From been criticized by parts of Chancellor years, and the interest burden will June 1991 to June 1992, insolvencies Helmut Kohl's Christian Democratic make the deficiteven worse. rose by 24%. Huge job cuts are Union (CDU), and rejected outright Already, the budget for servicing planned in the machine tool, auto, by the opposition Social Democrats old debt is the second largest category electrical, and chemical sectors. and the trade unions. in the budget, with DM 58 billion this Western Germany is short 3 billion Moellemann's plan fits into a fiscalyear and DM 59 billion or more apartments. According to Caritas, 1 in stream of proposals from the liberal­ for FY 1993. The budget for social 10 Germans lives below the poverty conservative Kohl government which support and welfare (which also is level and the number is rising; 4.2 mil­ business leaders have scored as "a meant to mollify the effects of the high lion are on welfare . constant flow of half-baked ideas," interest rate policy on industry and Some economists have been warn­ like the low-interest, tax-free "Ger­ employment) is category number one, ing that more fiscalausterity or mone­ man Bond," or forcing non-investing at DM 98.8 billion. New borrowings tarist belt-tightening will not stimulate high earnersto buy governmentbonds for next fiscalyear are DM 38 billion. the needed flow of productive invest­ to help rebuild the east German econo­ German total debt will pass DM 1.3 ments into the physical economy in my. The chancellor has lost touch trillionby 1992' s end and hit a record the east. Projects for transport or with the business sector and has been DM 1.34 trillion in 1993. housing do exist. Herbert Ehrenberg, repeatedly attacked for ignoring the Since the economic strategy for a former Social Democratic labor economic crisis. Bonn policies threat­ the eastern states has failed so far, minister, argues that capital for infra­ en to ruin the economy, charged the shrinking production and job losses structure investments in the DM 100 chief executive of the federation of there have cut the tax base to 20-28% billion range is available on the Ger­ medium-sized businesses, Dieter of what it ought to be, and require man capital market. These funds can Haerthe: "The government keeps on continued subsidies from the western be mobilized without risk, if invest­ demanding better performance with­ states. This will worsen if Moelle­ ments are geared to productive use. out creating the necessary policy mann, who tells investors there to East German states and cities should framework. " "forget the markets in eastern Eu­ be exempt from interest for the next In his state of the nation address, rope," has his way. Most industrial six years, under Ii scheme in which the Kohl admitted that he, "like all oth­ firms in the fiveeastern states are sur­ German central rank will sell part of ers," had been wrong and nobody viving only because of exports, albeit its substantial gqld reserves.

EIR September 25, 1992 Economics 15 BusinessBrief s

AIDS Minister Jerzy Oziatinski , and mooted the es . But neitherEuropean reusable spacecraft is opening of an IMF credit line to Poland in the being fully funded. Sabin doubts vaccine "near future ." The German-Japanese project, called Ex­ Oziatinski said he was hopeful that agree­ ever be possible press, will also have input fromthe formerSo­ will ment on such a creditline, which has beenfro­ viet space program . The Community of Inde­ zen since October 1991 when the Polish gov­ pendentStates will contributework on reentry The developer of the oral polio vaccine, Dr. ernment "violated" the IMF target of a 5% vehicle technology and manned life support Albert Sabin, said that he doubts that a vaccine budget deficit, could be signed by early Oc­ development. Unlike the other contenders, can ever befound to halt the spread of the AIDS tober. Express would not be an aircraft-type design, virus , Reuters reported Sept. 12. "In my judg­ A precondition for the creditline, howev­ but a capSUle-type ballistic vehicle, similar to ment, the available data provide no basis for er, is the collapse of the ongoing strikewave. the conceIXof the Apollocapsule. testing any experimental vaccine in human be­ Pressure from the government against coal These arrangements for space research ings or for expecting that any mv vaccine miners resulted in the strikeat the Rozbarkcoal could make Japan less dependent upon the could be effective in human beings," Sabin mine in southern Poland being called off on U. S. space program,Germany less dependent wrote in the Proceedings oftheNatiofUllAcad­ Sept. 7. Workers there had been threatened upon the European Space Agency, and give emy of Sciences. with police action afterthe expiration of a gov­ Russia more leverage in negotiating space Sabin said he is pessimistic about the ernment ultimatum. As a "concession" to agreements with the United States.

chances for a vaccine, because the way the workers , the government promised not to put AIDS virus behaves in cells makes it very dif­ them on trialfor the "illegal" strike , and prom­ ficult to halt its spread, unlike with polio or ised not to replace some plant managers . measles where spread canbe checked by a vac­ The official jobless rate in Poland is now WaterManag ement cine. He urged scientists to concentrateon kill­ 13.4%, leaving more than 2.5 million unem­ ing the virus rather than preventing infection. ployed at the end of August. Unemployment is Drought hits Sabin criticized scientists for disregarding expectedto increaseby at least another 50,000 the major method of transmission, anal inter­ each month, and to hit an estimated 3 million Africah industry course , in which large numbers of cells con­ by year's end. Independentestimates say that

taining the AIDS virus are transmitted to the the government's figures are much too rosy The drought is ravaging not only the food sup­ recipient through thethin walls of the rectum and that the realjobless rate is already close to ply but the infrastructure and power require­ and into the intestines. The AIDS virus is one 20%. ments of Africa. Zambia faces a power crisis of a group of viruses thatreproduce themselves with falling waterlevels threateningits hydro­ inside cells. Sabin said vaccines have beende­ electric supply, John Wright, of the Zambia velopedfor virusesbut not for virus-containing Electricity . Supply Corp. (Zesco), said on cells. He said a vaccine being tested in mon­ Aviation Sept. 8. Zatnbiadependstotally on waterpow­ keys protected them from the simian immuno­ er for electricity. deficiencyvirus , which is relatedto the human Germany and Japan to Wrightwarned ofa majorcrisisifraindoes AIDS virus, but not from infection from cells not fall by December. He said Zesco had cut containing the virus. cooperate in space output and was carryingout compulsory indus­ trial and domestic electricity consumption Germany's MinisterofResearchand Technol­ cuts. ogy Heinz Riesenhuber returned from a trip Zimbabwe, also suffering from the worst Labor to Tokyo recently, during which a number of drought of the century , has plans to introduce agreements for cooperation in space were electricity rationing. IMF praises Polish signed. Aviation Week on Sept. 7 reportedthat the two space-faring nations will join forces in government austerity automation and robotics, environmental re­ search, remote sensing, and space transpor­ Infrastructure The International Monetary Fund (IMP) has tation. said that the Polish government is on the right Most interesting is the work on a reusable Iraq considers expanding road, staying firmon budgetary consolidation manned spacecraft, which each country has and not giving in to "pressures," i.e. , the ongo­ been pursuing separately. The Japanese proj­ irrigation project ing strikes, tochange its policy.IMF represen­ ect, HOPE, is a small shuttle designed to be

tative Michel Deppler, who has been in War­ launched on a Japanese H -IIrocket . Germany Iraqi engineers are conducting a feasibility saw recently, gave high marks to the strike­ has been designing the Slinger Aerospace study into expanding Iraq's showpiece Third breaking policy of PrimeMinister Hanna Su­ Plane, and the European Space Agency has River irrigation project, by drawing off fresh chocka and the austerity approach of Finance been developing the French-designed Herm- water from the Tigris River and mixing it with

16 Economics EIR September 25, 1992 • THE WORLD Health Organiza­ tion is surveying cases of unex­ plained severe immunosuppression in adults without serological or viro­ FAO reported that in about 50 of the salty water fromthe ThirdRiver. logical evidenc� of HIV infection, world's poorest countries, undernutrition is Projectoperations director Zuheir Abbas the virus which causes AIDS . Since widespread, causing high levels of physical Mahmoud, told the government newspaperal­ 1989, 12 medidal publications have wasting and stunting of children, andmicronu­ Jumhouriyah about the study in early Septem­ reported such lcases in Australia, trient deficiencies. ber:"Four irrigationcanals have extended into Denmark, Fran¢e, Germany , Spain, According to FAO, there wasenough food theheartofthedeserttakingwaterfromGharaf the U.K., and tlte U.S. [the Tigris] anddischarging it into the Third in the world by 1988-90, if distributed ac­ cording to individual requirements , to meet River." • mERO·AMERICA sold off $40 emergency needs. But it estimatedthat during The 565-kilometer (350-mile) ThirdRiv­ billion in government-owned busi­ that period, over 780 million people did not er, expected to start flowing into the Persian nesses in the !list five years to pay have enough food to meet their dietary energy Gulf withinda ys, is beingbuilt to reclaim salty foreign and domestic debts, Reuters needs for an active, healthy life. land by washing it with excess irrigationwater reported Sept. 12. Reuters failed to from the Tigris and the Euphrates rivers . The By the end of the 1980s, about 60% of the point out that these sales have been world's population was living in countries aim of the feasibility study, Abbas said, was to far below the real worth of the com­ look at the possibilityof using the River which hadmore 2,600kilocalories avail­ Third than panies. Their true value was probably itself as a future source of irrigation. able perperson per day. But at the same time, more than double $40billion . therewere 11countri es, mostly in sub-Saharan Africa, with a popUlation of 123 million, • MINISTERS OF HEALTH of wheredietary energy supplies weregrossly in­ the World Health Organization mem­ sufficient. Today , this numberis considerably Nutrition ber states in Aftica have called for a higher, with the current drought in southern strategyto contrOl and prevent cholera. Africa. FAO sees 'paradox of They noted thai cholera is a disease which will require extensive financial plenty' in starving world outlays to bring Under control.

Famineskill millions of children andhundreds Asia • CAIRO, EGYYf has been cho­ of millions of people are chronically under­ sen as the site for the September 1994 nourished, yet the U.N. Food and Agricultural Mt. Pinatubo wreaks Third International Conference on Organization(FAO) and theWorld Health Or­ Population, sQurces report. This ganization (WHO) assume that the world has havoc in Philippines event follows Bucharest in 1974 and more thanenough foodto feed itself. This so­ Mexico City in 1984. An initiative by called "paradox of plenty" was discussed at a At least a million Filipinos have been hit by the "Pintasilgo �ommission," named meeting on nutrition held by the FAO and floodsand mudflowsfrom the Mount Pinatubo after Maria �urdes de Pintasilgo, WHO in Geneva atthe end of August, which volcano, but thegov ernment doesnot have the former prime hrinister of Portugal was the finalmeeting leading up to the Interna­ money to help them, Reuters quoted President and a leading member of the Club of tionalConference on Nutrition in Rome Dec. Fidel Ramos saying Sept. 10. For the second Rome, will be launched soon. 5-1 1. time in four days, Ramosflew over devastated The Rome conference is being touted as areasaround the volcano and appealedfor in­ • JAPAN and Malaysia agreed to ' the most important on nutrition in 50 years. ternationalaid. "issue a strong warning" to the U.S. Background documentsgave the latest global 'The relief and rehabilitation needed by and Canada that the North American assessment of the state of human nutrition: the Pinatubo victims are just too massive for Free Trade Agreement not exclude

• Over 2 billion people sufferfrom defi­ the government alone to address," Ramos told them from NorllhAmerican trade, the ciencies of essential vitamins and minerals, officials in Bulacan province. "Because of the Sept. 10 Inter'lational Herald Trib­ which can resultin serious debilitating condi­ [mudflows] , we continue to seeamillion coun­ une reported. . tions including blindness and mental retarda­ trymen suffering, representing 200,000fami­ i tion, and death. lies," Ramos said. "Many of [them] will not • KARL MAiRXwas a stock spec­

• One in five persons in the developing beable to have any normalcy in their lives for ulator, the Beijing Youth News said world is chronically undernourished. threeto five years," he added. in its effortto j4stifythe development

• Almost 200million childrenunder five Budget Secretary Salvador Enriquez said of capitalist-s*Yle stock markets, yearsof age sufferfrom protein-energy malnu­ on Sept. 8 that the government neededat least Reuters reportQd Sept. 8. "It doesn't trition, including morethan 150 million chil­ $20 million to repair roads, bridges, and build­ take much time to do this, and, ifyou dren in Asia and 27 million in Africa. ings wreckedby the mudflows. The volcano are willing to risk a little bit, you can

• Every day 40,000 children under five has been rockeddaily by hundreds of quakes grasp money away from your oppo­ years of age die, and malnutrition is a major during the past few weeks, possiblypresaging nents," the neWspaper quoted Marx. contributing factor. anotherbig eruption, scientists say.

EIR September 25, 1992 Economics 17 �TIillNationalECOnODl Y

A Hamiltoniann ational banking plan for EastEurope

by William Engdahl

The author presented this speech to the Schiller Institute Karl Marx and Adam Smith would seek to destroy: the eco­ conference on May 2, 1992, in Kiedrich, Germany, to an nomically sovereign development of the nation-state . audience which included numerous representativesfromfor­ Essential to such national e,:::onomic sovereignty is estab­ merly communist countries in central and eastern Europe. lishment of a mechanism to dir¢ct credit to projects and enter­ The intervening months have made the situation he describes prises, deriving its legitimacy from duly elected national even more chaotic, and the solution so much the more urgent. representative bodies or parliatnents. Let us call it a national bank, more or less on the model of Hamilton's First Bank of It is becoming clear to nations of eastern Europe that the the United States. International Monetary Fund policy for economic reform is Unlike today's U.S. Fedttal Reserve, such a national a recipe for catastrophe. The question is, what concretely to bank would not be the captiV¢ of a tiny elite of powerful put in the IMF's place? What follows is our concept of what private banking interests, imposing policy by fiat. It would a national economic alternative could be . We refer to the rather be answerable to popularly elected governmentbodi es. model developed by the first American treasury secretary, The management of the bank sbould be positions of the high­ Alexander Hamilton, who set out to rebuild the economy of est national trust and honor, stlUfed by persons selected from a war-tom, bankrupt, and indebted United States in 1790, a cross-section of national life-agriculture, industry, sci­ after America's revolution against English "freemarket" co­ ence, economists-not merely! bankers. lonialism. The national bank's charter must give it the explicit man­ Various models have been proposed by the IMF, by Mil­ date to foster the general welfate and prosperityof the nation ton Friedman, Jeffrey Sachs, or in the extreme, by Paul as a whole. Given the extraor4inary tasks at hand, the bank Volcker, who argues east Europeans should have no central must not be limited, as the <;Jerman Bundesbank is, to a bank, until they first have built some mysterious, undefined narrow mission of maintenance of "price stability and stable thing called a "free market." In opposition to these Bretton foreign exchange." Rather, national bank policy must be Woods, or more properly, latter-day Versailles System broadly to nurture the increase of "potential relative popula­ schemes, nations of eastern Europe must urgently move to tion density" of the nation, as definedby Americaneconomist establish sovereignty over their own national economic Lyndon LaRouche in his The Science of Christian Economy policy. and elsewhere. This sounds simple, but it is fundamental . In the West According to the specific conditions pertaining in each today, there exists a perverse mirror-image of the old com­ country, this national bank must be able to utilize various munist "world imperialism," under the banner of "globaliza­ tools to accomplish economis growth, consistent with the tion" or multinational "economies of scale," which tramples principle of promoting technological progress, orderly trade on the essential rights of the nation-state. with other states, and a rising per capita living standard, as We address ourselves here to what supporters of both well as providing for the general safety and defense of the

18 National Economy EIR September 25, 1992 nation. This explicitly should be mandated to include promo­ Washington is able to tie the economies of the region to tion and maintenance of productive agriculture and industry, the dollar at a time that the dollar itSelf faces the greatest as well as electrical, water, transport, and communications devaluation pressures in its history. Piudence would make it infrastructure. essential, then, to have a recognized hard unit of value­ There also must be a provision embedded in the national gold-as anchor to the new currencies. The dollar is no constitution, providing for the impeachment of bank officials longer in this sense a "hard currency. 'I in the event that they have forsaken their mandate to promote Gold reserves much larger than 10-15% would unduly such productive credit generation, or have been proven guilty hamper expansion of credit for economic growth. Higher of conduct breaching the public trust placed in them. ratios of gold reserve would put the ; most severe brake on What exactly would such a bank do? credit growth imaginable, and precipitate the kind of crisis The dangerous notion has been fostered among the people such as occurred under the British gold. standard during the of East Europe that any form of state intervention smacks of 1873-96 depression. the old regime, and must be avoided. This dangerous fallacy But the secret to maintaining the value of the new curren­ is being opportunistically used by people such as Harvard's cy is that its gold-backed issue be aC4=ompanied by real and Jeffrey Sachs, to replace tyranny of a communist elite, with rapidly visible improvements in production of essential a new, equally pernicious tyranny of supranational control, goods to the economy. Once the pop�ation realizes the exis­ this one mediated through the dollar and the IMF. The spe­ tence of a genuine government commitment to this overall cific aspects of this IMF control have been detailed by us production improvement, confidence inthe national currency elsewhere. The policy mandate of the national bank must will stabilize, and the black marketor shadow economy will rej ect wholly any interference by the IMF into sovereign fade into the background. national affairs. The key is the increase of essential production through the credit policy of the new national bank, as will be elaborated Creating the new national currency below. The national bank must be the sole issuer of the national The national bank creates the new currency by calling in currency. The supply of credit fromthe bank must encourage all old currency and exchanging it for new. This has the the maximal rates of industrial and agricultural growth, while benefit of enabling the government to control the dangerous at the same time preserving living standards of the population black markets rampant in the easterneconomies. Each holder by ensuring against undue rates of inflation. This is only of old currency would have to account for its origins in the possible through the bank's maintaining steady rises in per exchange process, or forfeit it without compensation. This capita output via establishment of more effective economic must be done in a manner to gain Ute confidence of a dis­ infrastructure and rising technological capacities in the pro­ trustful population, which is sensitive to repeated betrayal by ductive economy. state officials. First, in order to establish confidence in the national The national bank must impose exchange controls-just bank, in the face of rampant corruption, market anarchy, and the opposite of IMF demands-and" as its initial act, call in price inflation in many places in the East, the national bank all foreign currency circulating thrOJ.lgh the economy. The must establish a new currency. This currencymust be backed phenomenon of "dollarization" of the economies of East Eu­ by the one hard commodity which has over centuries been rope in recent years, is a direct parallel to the process by accepted as the internationalanchor of value: gold. A recom­ which looting of the resources of Third World economies, mended ratio of gold to total credit in the reserve of the by those able to command dollar currency, was carried out national bank would be on the order of 10-15%. The Reserve over thepast decade. Bank of South Africa, for reference, the world's largestgold If this cancerous dollarization is :not brought under con­ producer, holds a quite high, 25% gold reserve, as it has trol, and offenders dealt with as cri�inal offenders against access to themetal in ample supply. the public interest, no independent national economic policy A word about the role of gold in basing the new currenc­ is possible. But, once the central l1Iank buys the stock of ies: Since the introduction of Sachs and the IMF economists dollars-under some form of short-term amnesty for dollar into the debate, discussion of using gold to back eastern holders-in exchange for its new natjionalcurrency, perhaps currencies has mysteriously vanished, in favor of a "dollar­ with an initial inducement to make il attractive, the national based" currency reform. There is a reason for that: Since bank can use the foreign currency to �ack the country's inter­ Aug. 15, 1971, the United States has unilaterally abandoned national trade transactions. In Russia alone, there is esti­ its gold redemption for thedoll ar, in order to cheat the entire mated to be some $10 billion circulating in the black econo­ world trade system by inflating its currency at will, forcing my. Many industrial countries, including France and Italy, trading partnersto take the inflated dollars to pay for oil and Taiwan and South Korea, have maintained exchange controls other goods. for much of the postwar period. By makingthe dollar the currencyof trade in East Europe, Simultaneous to this creation of a new national currency

EIR September 25 , 1992 lIoIational Economy 19 and imposition of exchange controls, the national bank and One proposal would be to build the experience base in a the respective governments would begin, where relevant, a clearly defined transition away from top-down to decentral­ "rollback" of the price and other monetary shocks of the ized economic life, using the national bank as the center­ recent IMF measures, to more rational levels. piece. Under the old Soviet system, "domestic debt" did not For example, factories in tqe East are today oftenrife with exist as a category, as the central government owned the discontent, as demoralized workers and technicians confront means of production, and legally the people and the state the absurdities of central plann�ng, which calculates the num­ were synonymous. Thus, when the Soviet state began to ber of screws or bolts based on a bureaucratic central plan incur dramatic economic problems, notably following the made in Moscow or somewhere remote from the production 1986 collapse of oil-based dollar export earnings, the state site. Examples abound of caplJcity left idle due to a bureau­ simply ordered the Gosbank to print more ruble notes to cratic failure to send such things as electric sockets so a new meet shortfalls in receipts under the state plan-much like factory can operate ! Washington does today. The national bank, on tqe mandate from parliament, The Soviet state budget deficit grew fourfold from 1985 could, for example, encourage self-interest of the individual to 1990. But the physical production of the rotting industrial factory or farm producers, by issuing State Share Ownership economy was falling sharply, meaning an explosive increase Certificates, a legal title but lilt "no par value"-say, one of rubles in the hands of a public which had fewer and fewer share per each worker or employee in a former state-owned goods to buy from official state shops. This led to a predict­ factory or farm. The shares would be non-transferable, and able flourishing black market. As exchange controls fell, it without cost. In event of a wo{ker's death or retirement, the became common for unscrupulous western traders to come share might pass to the remaining employees. The operative to East Europe loaded with only borrowed dollars to buy up principle being, that now the factory is no longer owned by valuable raw materials at dirt-cheap western prices on the the state centrally, but by the persons most directly engaged black market. with its output. In short, the national resources of easternEuropean econ­ Further, this factory or farm unit must be transferred omies are being looted shamelessly for the interest of a cor­ "debt free" by the national ballk. Any previous debts under rupt handful, in the name of the IMF's "market economy." the state system were legal accounting fictions or central Such "dollarization" is one of the real objectives of IMF planning tools, which must opt be allowed to hamper the demands in East Europe, a supranational neo-colonialism. priority goal of improving physical output of the economy. By pegging a national currency to the dollar, as Sachs Other countries mustnot permit thetragic error of the German did in Bolivia in the mid- 1980s, a less-developed economy Treuhand in honoring this old debt. is made hopelessly dependent on terms of trade, which can Then, the individual factory or farm group would bid never be to its own national advantage. The only difference for credit from the national bank, via a network of regional between this and 19th-century British financial colonialism, banks-banks initially state-Il1n, but later adding private, is that the Bank of England has been replaced by the IMF regulated banks as much as possible. This bidding process, and the dollar. analogous to discounting of bills of exchange or letters of credit in a western banking system, gives the national bank, Administrative guidance as source of currency issue, the ability to guide economic Now, how does the national bank direct credit to the areas development, consistent with CDverall national economic pri­ where it can most benefit the country?The major problem is orities as, say, would be set outin parliamentary deliberation. how a countrycan proceed in an orderly wayfrom centralized Initially, with the crucial difference of elected parliamen­ top-down economic control to a mixed economy in which tary decision replacing that of an old Communist Party bu­ the individual firmor family farm is more and more the basic reaucracy, the formal aspects of national planning would unit of initiative, in the context of a rising overall living superficially appear to be so�ewhat similar to the old idea standard. of'a national plan. Without planning, no nation in historyhas In many economies of eastern Europe, the most basic succeeded. The crucial difference is that, by issuing, free of cultural requisites of experience with decision-making initia­ cost, share ownership of the means of production, the state tive are lacking, owing to the history of the last decades. has taken the first major step. . in removing itself from the The paradox of economies wanting market structures while inefficientbusiness of running �verything, and has begun the having centralized state ownership, has to be addressed in a process of developing individual initiative in the broader way which will allow the development as rapidly as possible context. of experience with more direct initiative of farm or factory in Then, under this new, let U$ call it the National Enterprise context of an overall national economic policy. The process Ownership Law, the ownership of state-run factories and whereby the population gains such confidence is essential. farms could be transferred to the local farm or factory em-

20 National Economy EIR September 25, 1992 ployees, in the form of such shares of ownership, for a prede­ The state government then finances its overall annual termined period-say, 8-10 years. This could then be re­ expenses by issue of state treasury bills, essentially IOUs of viewed by the national bank or designated representative various duration-say, 12 months to 10 years . These bills local banks, on a periodic basis. After the 10 years were are then "discounted" to the national bank, which credits up, or before , if deemed appropriate by the share-owners, the government with the face value, minus the accumulated ownership of the factory or farm could be sold to others. interest the bill offers until maturity-the so-called dis­ This guarantees, if imperfectly, a transitional mechanism of counting. If it is, say, a one-year treasury bill of 1 ,000 rubles, placing responsibility as well as incentive rewards for greater bearing a 5% yield, then the government would get 1,000 efficiency and productivity, with those producing. minus .05 times 1,000, or 950 rubles on its account at the The difference from IMF "price shock" approaches, or national bank. "privatization" to foreign investors who can grab assets for The state government then offers credit via the banking dirt-cheap prices, owing to the temporary disadvantage ofthe system, which then, perhaps on a competitive bid system economy in transition, is that we preserve essential national where practicable, makes funds available to local enterprises production capacities and work force, while introducing a to fulfill government annual requirements for construction, mechanism for a process of transition and modernization of infrastructure, etc . The national bank, by altering its discount the economy and ownership. Around major infrastructure rate of interest for funds, can determine the rate of credit projects, smaller subcontractors grow up, which bid to per­ circulation in the economy. Local or commercial banks must form specialized jobs in construction, electrical installation, be required to place a certain perdent-say, 10% of total etc . for the large project, thus forming the seed crystal of a liabilities-into a reserve account with the national bank, in genuine Mittelstand [the German term for small and medium­ the event of bad loans. The rest they loan out to local enter­ sized enterprises] . prises at a specified rate of interest�not to exceed, say, 5- Then, as the factory begins to generate a "net profit" 6% annually, preferably less. above the initial contracted production volume needed for Thus we have established a national banking system tied the national parliamentary plan, that net profit should be to the overall guidance of the elected parliamentary body, divided, specified as well in the legislation. Let us say one­ with the mandated task of developing the national economy third would go directly to the employees as dividend or profit­ along lines specified above. sharing; one-third would go into the capital investment of the As rapidly as private or local assets in the community can firm itself, for modernization of machinery, etc.; and one­ be consolidated, local communes or agricultural co-ops could third would go, in the form of taxes, to the national govern­ begin to apply for a charter, upon satisfaction of basic pruden­ ment. As profitabilitygradually begins to increase, the state tial requirements, to establish their own local or private bank. builds a tax base and is able to substitute this for financing Such a system would develop over time, as savings capi­ its essential operations. tal accumulated in a growing economy. But the national bank The economy of Yugoslavia, after a break in 1952 with constitution must explicitly set the basis for such a banking Stalinist state planning, moved in some respects to such a system to develop. Such local banks would then obtain capi­ factory initiative. Indeed, until they began to abandon it after tal from the national bank at a price set by the national bank's the 1974 oil shock, the approach produced dramatic increases discount rate. Local banks would put up their bills of ex­ in the national growth rate. But one fatal flaw limited the change or letters of credit from their lending to local industry adaptability of that model: The communist regime feared to and agriculture, to the national bank, which then "discounts" tum over ownership to the local unit, only operational con­ it to make credit available to the local bank for further lend­ trol. Such a full break is essential. ing. This ensures overall control over money and credit in the national bank, a guard against the kind of fiat money Productive credit generation problem of local banks arbitrarily creating their own mon­ How then does credit get to the enterprises most able to ey-a problem also in the United States before the creation productively use it for the greater prosperity of the overall of the national bank in 1790. economy in this transition? Initially, for the first several years until a genuine indus­ Foreign trade trialMittelstand is established, most national economic activ­ From the standpoint of such an 'organized national bank, ity must originate from the centralgovernment. For example, the problem of orderly international trade relations is solv­ the parliament might in yearone , approve a national budget able. First, as with theyoung United States in the first years in which the goals of credit allocation are as follows: 40% to under the Hamilton national bank after 1790, or Germany transportation, energy, and communications infrastructure; after the 1870s, under the influence of Friedrich List's Cus­ 20% to manufacturing and mining; 20% to agriculture; 8% to toms Union (Zollverein), the parliament must establish the housing construction; 5% to defense; 7% to other expenses. desired national economic policy of fostering the nation's

EIR September 25, 1992 National Economy 21 own industry, to lessen dependence on foreign ones, and to in reality it is the price which they seek to impose on local encourage economic self-sufficiency insofar as is practical. markets, to their own advantage. This point is essential, for without it, no national bank Thus, rather than orient to such a disadvantageous "world can carry out its necessary mandate to order the monetary market" at the initial fragile stag¢ of national economic devel­ affairs of the nation and to defend the national currency. opment, the nations of eastern Europe would be better ad­ Again, the opposite of IMF policy. vised to seek trade on a mutually beneficial basis with other Such a policy ensures that the national economic mandate countries sharing similar problems. This would include de­ of the bank, as laid out by parliament, coheres with the veloping new trade ties with nations of the South-India, the foreign trade policy of the nation. This gives the national Middle East, Asia, Africa, including the Republic of South Africa. These are emerging economies with, in many cases, similar economic problems. ifnations qfeastern Eur op e pursue a Ultimately, of course, barter is a cumbersome necessity, to be superseded as soon as this lis practical by some form of strategy qfnational economic international clearing mechanism. Postwar western Europe, sovereignty, and invite nationssuch with collapsed industrial capacities and no currency convert­ as Germany or Japan to negotiate on ible to another, established sUFh a system, the European Payments Union, which served during the initial postwar a strict bilateral basis, this could period of reconstruction and "dollar scarcity," from 1950 break one qfthe worstbarriers until the European Community was formed in 1958, and worldwide to human progress we the national currencies of western Europe gradually became convertible with one another. have in this century: the power qfthe The problem with certain ttade clearing proposals pro­ IMF. The nations qfeastern Europ e posed today, is that they insist on a model with the reserve possessJar more power than they based only on the dollar. This would further tie the Communi­ ty of Independent States and other East European trading have yet realized. This is what the partners to dollar dependency. The problem is clear from friends qfJfdfre y Sachs in what has been outlined above on "dollarization." Was hingtonJe ar they might realize. One alternative suggested would be a pool from the major trading countries of an agreed reserve of deutsche­ marks or European Currency Units (ECUs), to reflect the reality of import and export relations. But, to avoid total bank a clear criterion to provide the orderly basis for foreign dependence on major currencies which "float" against the trade. Initially, as was the case in the United States in the dollar, such as the deutschemark, the fund should include late 1780s, most foreign trade will tend to be organized a contribution from member ¢ountries of a mix of gold around large barter transactions. An example might be Rus­ and, say, deutschemark hard-currency reserves. This pro­ sian crude oil of a stated grade delivered in Kiev, for so many vides the margin of security sufficient to assure other tons of Ukrainian grain. trading parties that the risk in orienting trade flows to the Such arrangements, outside the destructive notion of stated export market is worth taking. The reward is "world market price," must be made to secure the essential resumption of industrial export markets, while the various major commodity flows of the nations of East Europe. The national economies begin to order their internal economic very notion of "world market price" is a false one. There improvements as described above. exists no such thing as a "world" market, but rather many The initial issue of where arid under whose guardianship regional or national or even local markets. The "world market this, let us call it, East European Payments Union (EEPU), price" idea has been fostered by the IMF economists and should reside, to instill the greatest confidence in all parties, multinational corporations to further a global monopoly role must be negotiated. Perhaps the institution which does this in the trade of vital raw materials. Thus today six giant com­ clearing function might be in Kiev, Prague, Budapest, or panies, all either American or British-Royal Dutch Shell, Minsk. It would not represent a central bank, but merely a British Petroleum, Exxon, Mobil Oil, Texaco, and Chev­ clearing mechanism to facilitate early stages of resuming ron-control the entire terms of trade of the international oil trade, to replace the old imperial arrangements of the "con­ markets. Some four giant firms-Cargill Inc., Continental vertible ruble." Grain (Tradax), Archer Daniels Midland-T6pfer, and Con­ But once this payments union mechanism is established, Agra-control 85-90% of all international trade in grain. in the context of the appropriate national banking model They are the ones that speak of a "world market price," but described above, essential cross-border trade flows could

22 National Economy EIR September 25, 1992 resume on a far more promising basis. Such an approach regional clearing mechanism for trade, the hard-currency would also keep the emerging fragile economies of the East debt problem-today a devastating obstacle to growth-be­ from undue dependence from unscrupulous westerninterests comes one of the simplest to solve. or the inevitable IMF blackmail threats. The basic approach of the Adenauer government in the One quite economical proposal for the present "cost-con­ 1950s London debt conference, as described earlier, should cerned" German government, would be for Germany to set be the model. No penny of hard-currency debt is repaid until aside, with no IMF or other conditions attached, a special trade surplus on current account begins to create the account deutschemark or other European Monetary System member with which such debt can productively be serviced, without currency fund (not dollar), in an amount which, according to damaging the priority of national economic growth. one estimate, would not have to exceed some DM 4 billion. Each debtor country must consolidate all foreign hard­ This would be a one-time payment to help set up the East currency debt, and the national bank issue against it 10- to European Payments Union. That fund, which would not 30-year state bonds. To show good intent in honoring ulti­ oblige individual eastern economies to lock up their scarce mate debt obligations, even those undertaken by the illegiti­ hard currency, would also reward the German government mate previous regimes, the governmentcould offer to pay a by giving eastern German firms today facing bankruptcy in nominal interest, of its own determination, not that of the a western market, immediate potential to resume profitable IMF, of not more than, say, 3-4% per annum for a transition export to the easternmarkets. period of 5-10 years. Then, as the economy begins to func­ Compared to the DM 180 billion or so today being spent tion, the servicing of principal could be added. But in no case by the German governmenton unemployment compensation must the old interest arrearsbe allowedto be added onto the in eastern Germany , this is a ridiculously small sum, which future principal-what the IMF calls "interest capitaliza­ would in a matter of weeks pay for itself many times over, tion," which only ensures that "the more you pay, the more as productive labor is again used to make goods for export, you owe." Interest is a political creation, nothing else, and saving German taxpayers billions almost immediately. One must be so treated. can arguethat such is the only feasible solution for the present Precedents exist. When Washington imposed a political mishandled German economic policies in the new federal credit embargo on South Africa, South Africa in tum froze German states. But any East European clearing mechanism all foreign debt. They put it all in a "box." This was a debt must not wait for Bonn or any other western stateto see the moratorium, though terrified western bankers agreed never light of reason on this issue. to name it so. Then South Africa negotiated, country by Whether or not the authorities in Bonn are rational in this country. It found that West Europeans were not happy with regard, the establishment of anEEPU amongthe trading states Washington's pressure-which had to do with control of of the region is urgent. Based on such barter agreements bilater­ South Africa's vital strategic raw materials, not racial justice. ally among the various states, the EEPU would then use its hard South Africa offered two options: "If you agree to our terms, currency and/or gold reserve to make annual settlements, but we take you out of the 'box. ' Your debt is then a 'registered only of the balances outstanding between specific countries. debt' or special bond, on which we pay interest for 10 years, Because of the existence of a central hard-currency and gold until which time we can repay in a lump sum the old debt. reserve, member-states of the union would have confidence Otherwise, we will pay you a mere 2-3% interest, and nothing that, unlike the old imperialist "convertible ruble" system of on principal." The banks had no choice. the Comecon era, which never was "convertible" but merely As remote as it might seem from the vantage point of left other states with increasingly worthless rubles at year-end, Kiev or Prague or Warsaw or Zagreb, as the Bretton Woods trading partners would have the confidence of gold or hard order is now collapsing in the West, it is possible to split currency settlement of that small portion of trade in surplus or individual creditor governmentsfrom the "iron front" of Lon­ deficitat year-end. Properly done, this would create confidence don, Washington, and the IMF. Washington today is indeed in each national currency as an internal medium of exchange a bankrupt "emperor with no clothes." If nations of eastern (not outside the EEPU), and would contribute enormously to Europe pursue a strategy of national economic sovereignty, stability of presentchaotic trade in the region, without touching combined with the strength of the regional barter arrange­ national sovereignty. ments we have described, and from this strength invite indi­ vidual nations such as Germany or Japan to negotiate on a The hard-currency debt strict bilateral basis, this could, if done right, break one of A word is in order regarding the problem of the hard­ the worst barriers worldwide to human progress we have in currency foreign debts incurred under the pre-1990 era of this century: the power of the IMF. The nations of eastern communist relations: $160 billion or more for the entirety of Europe possess far more power than they have yet realized. East Europe, including Russia. This is what the friends of Jeffrey Sachs in Washington fear From the standpoint of effective national banking and a you might realize.

EIR September 25, 1992 National Economy 23 IImFeature

Mercantilism vs. i free trade: ttie war fo r Ibero-America

by Cynthia Rush

This speech was delivered to the fo unding conference of the [hero-American Solidarity Movement, which was held in Tlaxcala, �exico on May 18-22, 1992 .

The decade of the 1980s saw the brutal imposition ()fthe policies of free trade or "opening" throughout Thero-America. There is not arsingle countrywhich escaped the recipes prescribed by the International Monetary Fund, and we can see the devastating results before us. We haven't seen such,a coordinated offensive since the middle of the nineteenth century, when Great Britain successfully smashed all efforts to reject its policies. However, as in the !mid-nineteenth century, this offensive has once again put on the agenda the battle which began three centuries ago, between Adam Smith's free trade and the system identified by the name mercantilism; that is, the fight of sovereign nation-�tates to develop their econo­ mies and their populations in opposition to the imperial system which seeks to loot through speculation and quick profits. Mercantilism has its roots in Spain and Portugal of the fifteenth to seventeenth centuries, in the great thinkers and economists, among them the Catholic monarchs

Ferdinand and Isabella, who refused to make their nationsI simple exporters of raw materials in a relationship of dependency with GreatlBritain. They sought unity on the basis of national and universal principles·, the same ones which were transferred to the New World through the discovery and evangelization of this continent. This system broadened and acquired its modem expression in seventeenth­ century France, where minister Jean Baptiste Colbert collaborated with the great scientist and philosopher Gottfried Leibniz to successfully apply the concept of physical economy and, for a time, transform that country into an unprecedented model of economic and technological advance. Adopting these principles in the nineteenth century, Alexander Hamilton, Mathew and Henry Carey in the United States, and Friedrich List in Germany transformed their respective nations into industrial powers . Their writings, together with those of their precursors , gave

24 Feature EIR September 25 , 1992 President Theodore Roosevelt's "big stick" enforced debt collection fo r the international bankers. His administrations marked the consolidation of the U.S. alliance with Great Britain, against the mercantilists of both [bero-America and the United States .

form to the nineteenth-century battles in Ibero-America in on the basis of the principle of sovereignty. This includes which nationalist and patriotic factions sought to consolidate protection of internalindustrial development, and setting pri­ national economies and sovereign states. orities for economic development and for the use of credit Unfortunately, due to the lies, propaganda and slanders and trade. associated withthe Black Legend, * together with Great Brit­ 2) Role of the armed fo rces as a defender of the nation's ain's geopolitical manipulations, many people know very sovereignty and territorial integrity. little of this system's positive contributions, or even that it 3) Concern fo r social good: Contrary to the imperial was positive. The history books have told us that this system system, long-term investment is made in the development of was "authoritarian," "reactionary," "despotic," and generat­ infrastructure, the labor force, education, culture, and the ed "inefficient statism" and "fanatical Catholicism." The po­ arts . Population growth is a positive benefit, because man litical or military leader who failed to accept the system of and his role in society are valued. free trade automatically became a "dictator" or "tyrant" who despised "freedom" and "democracy." The British System What do the spokesmen for free trade say? What is mercantilism? For Adam Smith, the nation was nothing more than the What are the primary aspects of this system, compared collection of all the individual interests of all the inhabitants to free trade--or what Pope John Paul II has called "savage of a country-Aristotelian thinking par excellence. Ac­ capitalism"? cording to this mentality, the nation-state, not to mention the 1) Role of the state: Mercantilism was consolidated sovereign individual, could never exist. In his Theory of alongside the emergence of the sovereign nation-state; unlike Moral Sentiment of 1759, Smith described his concept of imperialism, which is based on the looting of satrapsor colo­ man: nies, the mercantilist state organizes its economic activities "The care of universal happiness of all rational and sensi­ ble beings, is the business of God and not of man. To man is allotted a much humbler department, but one much more * The Black Legend is the. lie created by British and Dutch intelligence, which portrays Catholic Spain as a nation of evil degenerates and genocid­ suitable to the weakness of his powers, and the narrowness alists. The legend particularly lies about Spain's colonization and evangeli­ of his comprehension; the care of hisown happiness, of that zation of the New World, and lies about, or omits completely, the positive tradition of Spanish mercantilism, which was transferredto the New World, of his family, his friends, his country ....Bu t though we and which the British especially tried to destroy. are endowed with a very strong desire of these ends , it has

EIR September 25, 1992 Feature 25 been entrusted to the slow and uncertain detenninations of sary, and subordinating foreign interests to national ones, our reason to find the proper means of bring them about. constituted a grave danger to its goal of maintaining Ibero­ Nature has directed us to the greater part of these by original America as a colony capable of eternally providing raw mate­ and immediate instincts: hunger, thirst, the passion which rials to the industrialized nations' markets in exchange for unites the two sexes, the love of pleasure, and the dread of manufactured goods from same. pain." For the Anglo-Americans, the danger remains the same So, according to Smith, man was inspired only by bestial, today. In March 1990, the Trilateral Commission's report physical sentiments , not reason. entitled Latin America at the Crossroads: The Challenge to Thomas Malthus, another agent of the British East India Trilateral Countries argued tha� "long-festering flaws in the Company , said the following in his Essay on the Principles region's economic institutions": are due to "the mercantilist of Population: practices of their fonnercoloni � rulers ." Such practices, the "All children who are born, beyond what would be re­ report underscored, had produ¢ed an inefficient "statism," quired to keep up the population to a desired level, must uncontrolled popUlation growtij, and "excessive economic necessarily perish, unless room be made for them by the nationalism" throughout IberctAmerica. Aside from in­ death of grown persons. . . . We should facilitate, instead of sisting that progress could only qe achieved througheconom­ foolishly and vainly endeavoring to impede, the operations ic liberalization, the report pro�osed eliminating the role of of nature in producing this mortality. . . . the armed forces, given that the :"communist threat" suppos­ "Instead of recommending cleanliness to the poor, we edly no longer existed. should encourage contrary habits. In our towns we should In 1975-76, one of the primary agencies of the Anglo­ make the streets narrower, crowd more people into the hous­ American establishment, the Council on Foreign Relations es, and court the return of the plague. In the country , we (CFR) , published Project 1980s, one of whose volumes, should build our villages near stagnant pools, and particularly Alternatives to Monetary Disorder, written by the fonner encourage settlement in all marshy and unwholesome situa­ editor of the London Economistl Fred Hirsch, warnedthat if tions. But above all , we should reprobate specific remedies the policies of free trade were to be imposed in the developing for ravaging diseases and restrain those benevolent, but much sector, all vestiges of "neomercantilism" would have to be mistaken men who have thought they are doing a service to eliminated. Hirsch complained that the developing countries mankind by protecting schemes for the total extirpation of sought to "politicize" discussioniof issues relating to econom­ particular disorders. " ic development, energy resources, and international finances In his Harmony of Interests, American economist Henry for the purpose of forging a new world economic order "more C. Carey, made the following apt observation about British favorable to their interests." malthusianism: Hirsch wrote that Alexan�er Hamilton in his Report "In Europe, on the contrary, population is held to be on Manufactures had posed similar mercantilist concerns. superabundant. Marriage is regarded as a luxury, not to be According to Hirsch, Hamilton "expressed the opposition indulged in, lest it should result in increase of numbers . of American nationalists to their country's assuming the 'Everyone,' it is said, 'has a right to live,' but this being role of a raw materials exporter to Britain. Nationalists granted , it is added that 'no one has a right to bring creatures feared and opposed two aspects of this role: the tying of into life to be supported by other people' [John Stuart Mill, American economic development to the British economy Principles of Political Economy] . Poor laws are denounced and the growing dependence on Britain for goods vital to as tending to promote increase of population-as a machine national defense." for supporting those who do not work 'out of the earnings of To guarantee that the monetarist policies of the Anglo­ those who do' [Edinburgh Review, October 1849] ....La­ American establishment were successfully implemented, bor is held to be a mere ' commodity' and if the laborer cannot Hirsch proposed "the controllecJ disintegration of the world sell it, he has no 'right' but to starve-himself, his wife, and economy" and the creation of "a framework capable of con­ his children .... Such are the doctrines of the free trade taining the increased level of such politicization . . . by set­ school of England, in which political economy is held to be ting bounds to arbitrary national action and thereby con­ limited to an examination of the laws which regulate the taining the tendencies toward piecemeal unilateral action and production of wealth, without reference to either morals or bilateral bargaining that may ultimately be detrimental to the intellect. Under such teaching, it is matter of small surprise interests of all parties concerned."

that pauperism and crime increase at a rate so rapid." It should be noted that just a few years after the publica­ tion of Project 1980s, the debt crisis exploded in Ibero­ The 'danger' of mercantilism America, effectively smashing any nationalist opposition Great Britain, and later its allies in the United States, and paving the way for the impOsition of free trade policies understood perfectly well that a system which proposed de­ over the subsequent decade. fending national sovereignty, with military force if neces- Another revealing discussion of mercantilism is that

26 Feature EIR September 25, 1992 British attempts to dismember the. American Union in the Civil War (1861-65). I 4. Paraguay: The British �gineered the War of the Triple Alliance (1864-70), pitting �his small nation against Britishgeopolitics Brazil, Uruguay, and Argentina ip a genocidal war from in Ibero-America which Paraguay never recovered. 5 . War of the Pacific: Backed by British finan­ cial interests, Chile waged war ag ainst Bolivia and Peru 1. Argentina: British forces invaded the port of (1879-81). Buenos Aires in 1806 and 1807, but were repelled by local 6. Chile: In 1891 British i�erests financed a phony troops. "revolution" against President Jose Manuel Balmaceda, a 2. Uruguay: By manipulating both Brazil and Argen­ follower of Friedrich List. tina, Britain achieved the independence of Uruguay in 1828, 7. Venezuela: German and British ships blockaded which then served as a base for British operations throughout Venezuelan ports (1902-03) in order to collect unpaid debts . the 19th century . Argentine Foreign Minister Luis Marfa Drago appealed to 3. Mexico: The French invaded in 1863 and installed the United States to intervene on the basis of the Monroe Emperor Maximilian on the throne; this coincided with the Doctrine.

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t\ ;;s::: The regions in which Giuseppe Garibaldi Argentina was organizing separatist and f "democracy" movements between 1838 ( , : . and 1848, prior to his return to Europe. )  ii·l i· Giuseppe Mazzini was his mentor. 0 ...

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EIR September 25 , 1992 Feature 27 found in Makers of Modern Strategy, one of the text books explained quite frankly what was behind this independence: used at the U.S. Military Academy at West Point. In the "The British government didn't bring the Portuguese royal chapter on Adam Smith, Friedrich List, and Alexander Ham­ family to America to abandon it; and Europe will never allow ilton, the author attacks the institution which is the protection only two states, Brazil and Argentina, to be the exclusive and fundamental guarantor of the sovereign nation-state: the owners of the eastern coast of South America from northof armed forces. He asserts perversely that when "the guiding Ecuador down to Cape Hom." ' principle of statecraft is mercantilism or totalitarianism, the • The various separatist movements that developed power of the state becomes an end in itself, and all considera­ throughout the Rio de la Plata region during the first half of tions of national economy and individual welfare are subordi­ the nineteenth century, promoted by British agent and mason nated to the single purpose of developing the potentialities Giuseppe Mazzini and his friend Garibaldi. of the nation to prepare for war and to wage war." Democratic • The War of the Triple Alliance against Paraguay peoples, the author warns, "have a deep-rooted suspicion of (1864-70); the invasion of Mexico by France in 1863; the coordinated military and economic power." War of the Pacific (1879-8 1); and many others extending What the author does not say is that free trade means right into the twentieth century·. war-sometimes literally-against the sovereign nation­ With this picture as background, I think we can say with­ state and its economy. We see countless examples of that out exaggeration that the effortsof several military and politi­ truth today . cal groupings throughout the ni;neteenth and twentieth centu­ Many proponents of free trade insist that lbero-America ries to achieve economic independence for their nations­ didn't develop its industrial capacity in the nineteenth century with all their limitations-are nothing less than heroic. I want due to the allegedly "retrograde" structure it inherited from to mention a few examples of those efforts , since for reasons Spain. The Argentine Juan Bautista Alberdi, a firm defender of time it's impossible to discuss all of them. In fact, I want of Adam Smith and author of his country's 1853 Constitu­ to leave in the hands of people here the responsibility of tion, explained in his writings that Argentina and Ibero­ researching the continent's real history. We have a lot of ' America could only progress economically by importing work to do on that subject. white Anglo-Saxons from the countries of northern Europe and the United States-not from southernEurope or the Med­ The War of the Triple Alliance iterranean, whose people tended to be Catholic and had dark­ One of the most dramatic examples of thatheroism is the er skin-because unlike the Spanish, the Anglo-Saxons sup­ case of Paraguay. That small country represents an absolute posedly possessed the characteristics of energy, hard work, singularity in the continent's hlstory, as an attempt to estab­ and Protestant religion necessary to guarantee economic de­ lish a sovereign state in which national interests and popular velopment. welfare had priority; it was smashed in a genocidal waror­ Look at what Alberdi said in his Bases y punto de partida chestrated by Great Britain. First under the government of para La organizaci6n polftica de La Republica Argentina: Dr. Gaspar Rodriguez de Francia (1813-40), followed by "Put the roto, the gaucho, or choLo, the elementary unit of Carlos Antonio LOpez (1840-59) and his son Francisco Sola­ our popular masses, through all the transformations of the no LOpez (1859-70), Paraguayachieved levels of economic best educational system, and in 100 years, you still won't independence and technological advance unparalleled on the make of him an English worker, who works , consumes, and rest of the continent. Dr. Francia's government not only lives comfortably and in dignity." rejected manipulations which sought to open thecountry up The truth is that it was Great Britain, often in alliance to British trade, but he organizedthe Armed Forces to defend with France and later the United States, which sabotaged the the nation from Buenos Aires as well as from Brazil. industrial development and building of sovereign nations in Analysts and historiansshriek that Francia "closed" Para­ lbero-America, through the same kind of geopolitical games guay, "isolated" it from intern�ional influences, or imposed it used in Europe and the Middle East and which laid the autarky. In fact, Francia organized the Paraguayan market basis for the Versailles system. Through the known tactics and economy in such a way that it benefitted national inter­ of manipulating governments or political factions, financial ests, and this was intolerable to the free traders. The state or military warfare , it sought to maintain the "balance of regulated all economic and commercial activities; it prohibit­ power" in the region; the result was the balkanization of ed the export of gold and silver, which broke the cycle of Ibero-America, territorial disintegration, and the smashing dependence on the Buenos Aires banks and merchants, and of any nascent effort to rej ect the anti-national policies of did away with a negative tradebalan ce. Franciaalso prohibit­ free trade. ed the contracting of foreign loans. With these and other Here are just a few of the results of such manipulation: measures, he eliminated the role of local oligarchies as the • The so-called independence of Uruguay in 1828. In country's dominant political andeconomic force . 1827 , the British consul in Buenos Aires, Lord Ponsonby, The governments of Carlos Antonio LOpezand Francisco

28 Feature EIR September 25, 1992 Solano L6pez deepened the process with the building of in­ wanted to redraw Paraguay's borders and that they intended frastructure, development of the educational system, and to force it to pay the cost of the war. modernization and expansion of the Armed Forces. This What was Paraguay's situation in 1864? With a popula­ caused panic in London. Carlos Antonio L6pez used to say tion of approximately 450,000, it had achieved a significant that "with time and foresight, the governmentwants to avoid level of industrialization, without depending on foreign the two dangers which threaten the Republic: the danger of loans. It had no fo reign debt! The country was united remaining stationary in the midst of progress and advances and, compared to its neighbors, technologically advanced. of all kinds which make up modem societies, and the revolu­ By the end of the war in 1870, half of the population had tionary danger which seeks to rush and disturb everything died: 100,000 men, more than three-quarters of the male using the pretext of progress." population, died in combat and another 120,000 people In the 1840s, the L6pez governmentbuilt roads, bridges, died from wounds, starvation, and cholera. Despite the and canals. Carlos Antonio L6pez made the improvement of lack of resources, the population resisted until-literally­ the educational system a top priority: He founded new the last man, and in many cases, the last child. The schools, libraries, and hired foreign professors to participate country's devastation was total: The war achieved what in this process. Many young people were also sent abroad the "allies" were unable to achieve otherwise---destruction to study, and later returned with expertise to contribute to of the nation's military capabilities and the imposition of national development. Schools, L6pez used to say, "are the "democracy" based on free trade. Brazil occupied the true monuments we can build to national freedom." Carlos country militarily for five years following the war, and Antonio L6pez always emphasized that he was not a man of imposed the Constitution of 1870 which, among other the Enlightenment, and that he was a great student of St. things, altered the borders. From that point on, Paraguay Augustine. suffered years of political anarchy. In 1845, the governmentinaugurated the state-run print­ ing press. Foreign engineers, doctors, and technicians hired The mercantilists make advances from England, Germany, Austria, France, and Italy, helped If we look at the second half of the nineteenth century, to build the military complex at Humaita, together with sev­ we see that there were many effort!1 in different parts ofthe eral other projects such as the iron foundry at Ibicuy, and the continent to reject free trade policies and replace them with Asunci6n arsenal and shipyard. Railroads, the telegraph, and a pro-industrial, protectionist policy. This was the period in numerous military clinics were also built, the latter with which a protectionist tendency, albeit a weakened one, still the aid of foreign physicians. Other projects included the existed in the United States, priot to the assassination of merchant marine andNavy . President William McKinley and prior to the presidency of Many historians lie that it was Paraguay's military appa­ Teddy Roosevelt, when the alliance with Great Britain was ratus which caused the genocidal War of the Triple Alliance consolidated. in 1864.Bu t well before that date, in 1828, the British news­ In his book El mercantilismo mexicano versus el liberal­ paper British Packet and Argentine News of Buenos Aires ismo ingles, Luis Vasquez has presented a detailed picture enthusiastically promoted the idea of an invasion from that of the Mexican mercantilists, beginning with the colbertian city to achieve "the liberation of Paraguay." At that time, the Estevan de Antuniano in the decade of the 1830s, followed British consul in Buenos Aires, Woodbine Parish, told the in the 1860s and 1870s by Carlos de Olaguibel y Arista who Foreign Office that such an invasion would serve the double opposed the defenders of free trade! known as "the purists," purpose of guaranteeing "rich booty" and "guaranteeing an los puros. Antuniano wrote in 1842'that "for our republic the interchange between that wealthy country and the rest of the promotion of industry is not a simp.e calculation, but a point world." In April 1830, the Brazilian consul in Paraguay , of honor and independence." He elaborated an ambitious Correia de Camara, informed his secretary of state that "the plan to transform the Atoyac River valley into "Mexico's only way . . . to do away with that nascent colossus [Para­ industrial valley," rejecting the idea that Mexico would be guay] is through a rapid and well-coordinated invasion." only a minerals exporter. In 1845, he presented a detailed So this is what was behind the War of the Triple Alliance, plan to achieve industrialization, the Plan econ6mico po[(tico financedby Britishloans to Brazil, Argentina, and Uruguay, de Mexico , which, among other things, demanded "absolute and provoked by the maneuvers of its imperial agent Brazil prohibition of foreign manufacture� which we could probably and allied factions in Argentina in 1864. With a rationale build ourselves easily and cheaply." This is "the basis for which reminds us of the "allied" war against Iraq in 1991, Mexico's economic reform," he said. when the treaty of the Triple Alliance was signed, the three Carlos de Olaguibel y Arista was not only familiar with governments insisted that they were going to war against the writings of Friedrich List; he had studied Hamilton as "the tyrant of Asunci6n," Francisco Solano L6pez, but "not well as the French dirigist economists Chaptal and Dupin. against the Paraguayan people"; they did admit that they Like Antuniano, he proposed a global program for Mexico's

EIR September 25, 1992 Feature 29 industrialization and passionately polemicized against free of oil resources was known throughout the continent-in trade: "Laissez faire , the passive policy of free trade , would Mexico, Colombia, Bolivia, Uruguay and Brazil; and Gen. not be useful in the present case; an active policy is needed Manuel Savio, the founder of military engineering who in to liftthat enormous weight which oppresses and suffocates the 1940s built the company Fabricaciones Militares and laid Mexico's productive power ....That is why we, in view the basis for creating the giant Somisa steel complex . of that necessity, have proclaimed as a demand of current Reflecting a sentiment still found today in Ibero-Ameri­ interests, a policy which not only encourages material values, ca's armed forces, and which provokes rage among the An­ but all the productive forces a people might possess under glo-Americans, General Savio said in 1942 before a group any circumstances. " of industrialists, "I feel compelled to say, without euphe­ In his book EI Proteccionismo en Mexico, Olaguibel em­ mism, that without the state's open protection, this and any phasized that "the triumph of protectionism is very important other [industrialization] plan faCes the same fate; it's no se­ because it will put an end to misery, and the diseases it cret that the universal production of all the products I've occasions, and even with Malthus 's system, which has neces­ named is controlled by powerful organizations, with suffi­ sarily been established among us and which in the finalanaly­ cient means to unleash decisive crises wherever and whenev­ sis ... is fatal, because it prevents population growth, er they please." Savio told the iJndustrialists, "Either we ex­ [which] we so urgently need, and which will have to be tract this iron from our deposits . . . or we refuse to leave sustained even if it increases too much, as long as industry behind our exclusive status as an agricultural, cattle-raising is protected." nation, with all of the grave consequences that implies for What about the rest of the continent? In Colombia, Rafael the nation." Nunez, author of the 1886 Constitution--overthrown last It was the nationalist Gen. Juan E. Guglialmelli who, in year by that country's narco-terrorists-reached the presi­ his fightagainst the free-traders of the military junta that took dency in 1880, and again in 1884, 1886, and 1892. He power in 1976, particularly Finance Minister Jose Martinez launched an ambitious program of infrastructural develop­ de Hoz, published excerpts of Carlos Pellegrini's letters and ment, pointing to Alexander Hamilton's example in the Unit­ speeches against free trade , taken from the 1875 and 1876 ed States. The small nation of Uruguay applied its firstprotec­ debates on the customs law in Airgentina's lower House.

tionist tariffin 1875, later expanded by President Ordonez y List and Carey's writings I profoundly influenced the Batlle at the beginning of this century . group led by Vicente Fidel L6pez. First as a congressman, It would also be important to look at the Venezuelan then as President (1890-92), and later as a senatorial candi­ case at the end of the nineteenth century, particularly the date in 1903, Carlos Pellegrini ihsisted that Argentina had to administrations of Guzman Blanco and Cipriano Castro, achieve its economic independence from Great Britain. "It's which ended with the British-German blockade of 1902-03 clear," he said in the 1876 congressional debate, "that today after debt payments were suspended. Note that earlier in we are simply a pastoral people and that our only wealth is 1864 , one year after the French invasion of Mexico, when reduced to shepherding and in very small part to agriculture. Guzman Blanco visited France to discuss debt problems, Where is the nation in the worIdwhich has become great and minister Drouyn de Lhuys threatened that unless Venezuela's powerful on the basis of shepherding? I think it would be books were put in order, "after Mexico, you'll be next." very difficult to find." In the 1875 debate, he warned, "We are , and will remain so for some time unless we find a reme­ Argentina battles the British dy, a farm to the great manufacruring nations." The Argentine case is interesting because in spite of the Pellegrini emphasized that the protective tariffshould not enormous British influence in that country from a very early be used simply as a fiscal tool , as many proposed, but rather date-Britain virtually considered it another colony in the as a vehicle to achieve harmonious industrial development. Empire-mercantilist tendencies dating back to before Inde­ He asked Argentine statesmen aIldbusinessmen to elaborate pendence survived, later merging with the influences of the a detailed and broad plan to achieve the country's industrial­ American System of political economy. This is reflected ization, and toward that end, in 1899 and 1900,he personally most strongly in the group organized around Vicente Fidel directed a survey to determine the level of industrial activity L6pez and Carlos Pellegrini during the 1880s and 189Os. in the country at that time. "We all are , and have to be, They are also seen during and after the First W orId War, protectionist," he said, "and the only possible disagreement when groups within the Armed Forces began to discuss the is over the form and extent of Ithat protection." It was the need to promote the industrialization and development of responsibility of Argentine capitalists to invest in their coun­ basic industry as crucial for national security. I would under­ try, thus providing enough resOUrces "to carry out the proj­ line here the role of such officers as Gen. Enrique Mosconi, ects which national growth demands." later the first director of the state oil company, Yacimientos Pellegrini served as President for only two years (1890- Petrollferos Fiscales (YPF), whose thinking on protection 92), but the measures he took duringthat period caused such

30 Feature EIR September 25, 1992 panic in London, that the British even considered military population increased by more than 50%. Balmaceda modern­ intervention to protect their interests. As President, he went ized education, creating specialize4 schools in the areas of well beyond the protectionist tariffs first applied in 1875, industry, mining, and agriculture. Landlords linked to the promoting the development of regional industries and, by export trade constantly complained that the new jobs created 1891, achieving the reduction of British imports by 48%. by the railroads and construction of public works paid wages Popular ferment against British usury at that time was that were too high, taking away the cheap labor they needed significant. In 1891, while public demonstrations were held for agriculture. in front of British banks and companies, Pellegrini closed But Balmaceda persevered. He emphasized that "the several private banks and created the state bank, the Banco state, in large part, can supply those elements whereby indi­ de la Nacion Argentina, in order to financenational industry. vidual aptitudes must exercise their direct and benevolent To one of his collaborators , Pellegrini confided, "Today, we action, and that is why I insist that fiscal wealth be applied create a bank with national capital." He also imposed taxes to the building of lyceums and schools and all type of institu­ on foreign banks and insurance companies, stopped giving tions of learning to improve Chile's intellectual capabilities; concessions to British railroad companies, and established a that is why I won't cease to build �ailroads, roads, bridges, system to strictly regulate their finances. docks, and ports to facilitate labor, encourage the weak, and increase the energy through which the country's economic Chile's industrializers vitality flows." Almost parallel to Pellegrini's era, in neighboring Chile In July 1891, in presenting his iProposal to the House of a grouping emerged around Jose Manuel Balmaceda, and Deputies for the creation of a national bank, which unfortu­ linked to the Industrial Promotion Society. Balmaceda, a nately was never created due to the civil war which erupted follower of Friedrich List, was elected President in 1886, shortly afterward, Balmaceda said that "the creation of a from which post he promoted infrastructural development, bank with the approval and strict �igilance of the state . . . education, and the creation of a national bank. is one of the most efficient ways to develop the country's Some 30 years earlier, in the 1850s, President Manuel wealth, prevent economic chaos, apd through the action and Montt had tried to encourage national investment in infra­ effective agreement of the community, protect the economic structure and strengthening the state's role in the economy. life of all honorable industry and tI1ade against the usury and But after he was overthrown at the end of that decade, unbri­ the influenceof the few ." dled free trade was imposed on the country by 1864 which, On various occasions, he publicly expressed his intention among other things, strangled the merchant marine and na­ of nationalizing the saltpeter indqstry, over which foreign scent industry. and especially British capital had almost complete control. But in 1883, the Industrial Promotion Society published He so profoundly threatened the el)trenched British interests its founding document, which stated that "Chile can and in the country, that they finally or�nized the "Revolution of must be industrialized . . . it must be industrialized be­ 1891" to overthrow him. As a res4lt of that war, which cost cause it has the capacity to be so; it has important minerals 10,000 lives and severely damaged the national economy, in extraordinary abundance . . . and all the chemical British interests reasserted their domination. It was a war products which industry needs for its creation and develop­ openly financed by British intere!>ts, through the Edwards ment." In February 1884, the society reported in its third family, one of London's primary ¢presentatives in Chile. bulletin that "among the illustrious individuals who make Enrique Matte , one of the pro-British bankers who helped up our men of government ... a single idea circulates, overthrow Balmaceda, boasted in 1892 that "we are the own­ accepted without discussion, on the need to protect national ers of Chile, the owners of capital ,and land; what remains is industry and through that open up the great sources of a saleable and malleable mass; they don't count, neither as wealth the country possesses." opinion nor prestige." Balmaceda's presidency was a real attempt to build and Today, the Anglo-Americans !lIe no less explicit in their transform the nation. The list of projects his government intentions of being the imperial owners of the Ibero-Ameri­ successfully completed includes several railroad lines, in­ can continent. The problem they hllve, as we've already seen cluding one 1,200kilometers long; more than 1,000kilome­ in the cases of Venezuela and PeIP-and other cases which ters of roads of all different types especially to facilitate the are now percolating will undoubtedly arise-istha t, as in the colonization of more remote areas of the country; and at least nineteenth century, people get fep up with the looting, the 300 railroad and road bridges. He created the Ministry of degradation, and oppression, and at a certainpoint, they just Industry and Public Works for the explicit purpose of pro­ say, "Enough!" Our job today is tq wage the fightso thatthat tecting industry. "Enough" serves to reestablish the ,humanist principleswhich With the building and expansion of railroads, the number are firmlyrooted in the Ibero-Americanpeop le, in their tradi­ of workers also increased, and in general there was signifi­ tion, and their history, and only tremain to be rescued and cant population growth. From 1880 to 1890, the working cultivated. We have no choice but to do that.

EIR September 25 , 1992 Feature 31 �IIillInternational

Shining Path arrest is a black eye for State Dept.

by Val erie Rush

Peruvian President Alberto Fuj imori is using the special war­ participation in terrorism, offers severe sanctions. Naturally, time powers he assumed last April 5 to pursue a war against some absurd voices will surface about prosecution of ideas, Shining Path , the narco-terrorist insurgency which has kept but we are obliged to preserve the health of our children." his impoverished nation under siege for over a decade. At the President Fujimoti told the press Sept. 16 that Guzman's same time, he is scoring those governments and international trial would be a case of "exemplaryju stice, to demonstrate human rights organizations, and most emphatically the U.S. that the Peruvian state is a guarantorof law, morality, order, State Department, for having aided and abettedthe Shining and authority." It will begin Sept. 28, with sentencing sched­ Path mass murderers for years. uled for Oct. 7. An appeal would require a finalruling within The Sept. 12 capture of the allegedly untouchable Shin­ 20 days. " ing Path ideologue Abimael Guzman (a.k. a. President Gon­ The President's ability to take these and other wartime zalo"), along with a dozen of his top henchmen, was but the measures is made possible by the support of the Peruvian opening shot of a well-planned and -executed anti-terrorist people. In the days following Guzman's arrest, Peruvians strategy, which could not only break the back of that organi­ massed in the streets of Lima and other cities to sing the zation while giving the Peruvian Anned Forces back their national anthem. Flags hang from everywindow , and anyone dignity and sense of mission, but may inspire other similarly in uniform---even traffic cops-is hugged and congratulated besieged nations to fightfor their sovereignty. by citizens who suddenly realize that it is possible to defeat

Peruvians are in a state of euphoria, as the nation's defense the cancer of narco-terrorism. forces-under the personal direction of President Fuj imori and There is a widespread demand for executing Guzman, a purged and upgraded intelligence service-begin to clean out whose murderous hordes have taken a reported25, 000 lives the nests of terrorists, and their supporters and sympathizers, and caused billions of dollars in damage. Although the Peru­ which have held the nation hostage to their psychotic violence. vian Constitution sets a maximum penalty of life imprison­ Lightning police and military sweeps in the so-called "red ment without parole in times of peace, there are provisions zones" of Lima, Cajamarca, Huancayo, Ayacucho, Arequipa, for applying the death penalty for treason in time of war-a and Huacho have netted scores of Shining Path guerrillas, in­ condition which certainly prevails in Peru today. In fact, cluding some of theirtop military commanders . President Fujimori told the press, "Speaking personally and Legislation is being readied to punish "terrorist apolo­ not as President, I would naturally be in favor of the death gists," such as Shining Path teachers who have infiltratedthe penalty." He added, "The maximum penalty is a life term, Peruvian school system, tearing up the official curriculum but obviously we must listen to the people." The option of and imposing their own brand of "revolutionary education." capital punishment "would have to be studied." Declared President Fujimori, "There are teachers who, in­ stead of teaching love of family, country, liberty and patrio­ On the international front tism, are deforming theminds of children. Well, my govern­ A list of Shining Path front-groups and the names of 50 ment is going to prepare a mechanism that, for this kind of of the group's "ambassadors" operating in nine countries

32 International EIR September 25, 1992 abroad, including in the United States, has also been pub­ readying U.S. rapid deployment forces for regional inter­ lished by the government, and Peru's justice and interior vention. ministers are now in Europe to demand that these terrorists The Fuj imori alternative has, in fact, already inspired be extradited to Peru. Fuj imori's international offensive is patriotic forces inside neighboring Colombia to demand that especially critical , in view of the repeated refusal of nations that country's government fo llow the Peruvian model. The across Europe and the Americas to help Peru prosecute its opposition daily El Espectador editorialized on the Shining war against narco-terrorism. Path arrests Sept. 15: "What the people need is the will to Exemplary is the case of the British government, which impose respect for the law. That is, to govern. To govern is continues to defend Shining Path even after Guzman's arrest. to rule, not make deals. To governis to decide, not negotiate. British Foreign Secretary Kenneth Clarke, in Lima at the time To govern is to force [terrorists] to submit, not to submit of the raids, told the press that Shining Path sympathizers in oneself. . . . The Peruvian terrorists got just what they de­ England would not be allowed to take "active steps" in favor served ....We can't help but think that the only country in of terrorism in England, but insisted that the terrorist exiles the world where the authorities are impotent against assassins could be neither arrested nor deported as long as they limited of every stripe is Colombia." their activities to expressing "opinions," however distasteful. It is no wonder, then, that the nervous Anglo-Americans A British Foreign Office spokesman responsible for Peru are insisting they will accept nothing less than a "restoration even admitted to an inquirer that Shining Path spokesman in of democracy, " i.e. , a returnto the status quo of Shining Path London Adolfo Olaechea had received "exceptional leave" blackmail, in Peru . In a public statement following Guzman's several years ago to remain in London, but would not reveal arrest, U.S. State Department spokesman Richard Boucher the reason for the "leave." insisted that the arrest"doesn 't lessen the need for a restoration As Fuj imori declared in a nationally televised address of democracy." Assistant Secretary of State for Inter-Ameri­ following Guzman's capture, "It has taken the international can Affairs BernardAronson claimed to welcome Guzman's community 12 years to realize that we were dealing with a capture but, according to the New York Times, said it was war criminal, with a genocidalist who could be the envy of "too early to tell" whether it would help restore a sense of the fascist war criminals of World War II. For 12 years, the legitimacy to the Fuj imori governmentor help mend relations malevolent genius of 'Comrade Gonzalo' [Guzman] was able between Lima and Washington. London's The Guardian even to sow death and destruction under the mantle of protective warnedthat "Mr. Fujimori may feel $trengthened by this suc­ silence of the human rights organizations. And Peru had to cess to persist further with dictatorship." count its dead, bury its dead and remain impotent. The human U.S. Rep. Robert Torricelli(D- N.J.), Fujimori's greatest rights of a terrorist and genocidal band were more important foe in the U. S. Congress and the man who has promoted than those of 22 million persons. Let the world know that the Bush administration's campaign to demilitarize Ibero­ this has been the cost we Peruvians have had to pay." America, told the New York Times Sept. 14: "I say this with Fujimori's determination to wage his war on the interna­ great reservation, but this [arrest of Guzman] represents tional as well as domestic front is beginning to pay off. somewhat of a vindication for Fujimori's actions." Torricelli Sweden deported 19 Peruvian sympathizers of Shining Path added that it was "certainly possible" that U.S. intelligence in the second week of September, and has refused entrance to had helped the Peruvians in Guzman's capture. another 500. The German and Dutch immigration authorities Fuj imon shot back, "There was no help of any kind, have refused entryto about 40Peruvians who fledtheir coun­ from any countryor internationalorganizati on. I can say this try after the Guzman arrest. They have been returned to unequivocally, since there have beeh no advisers since April Lima. 5. Rather, we could be the ones to advise other countries in theanti-subversion fight." A 'no' to the Bush strategy Perhaps the most outrageous of all is the Venezuelan To the panic of the western "democracies," which have government, whose Foreign Minister Fernando Ochoa ostracized Peru diplomatically and financially ever since Antich told the media that the Guzman arrest"does not confer April 5, the coherence between Fuj imori's courageous deci­ legitimacy" on the Fujimori government. "The [April 5] ac­ sion then to shut down the corrupt Peruvian congress and tion of President Fujimori is to be qondemned, even though judiciary which had made common cause with the enemy, it has brought the results asked for by the population, because and his successes against Shining Path today, was never more it violated principles ....Although the [Fujimori] govern­ apparent. ment has had some success in the anti-guerrilla fight, it has Indeed, Fujimori ' s approach is offering a sovereign alter­ the problem of a lack of political consensus." It's a wonder native to the Anglo-American strategy for the Andes of hu­ that Ochoa, said to be helping Venezuela's corruptPresident miliating and stripping down the region's armed forces, Carlos Andres Perez ready a mercenary army to keep the allowing the spread of narco-terrorism by encouraging gov­ population from trying to overthrow him again, could pro­ ernment negotiations with the narco-terrorists, and then nounce the words "political consensus" without choking.

EIR September 25, 1992 International 33 achieving this near miracle, blilt superior Serbian firepower proved too much for Bosnian infantry, equipped only with light weapons. The Bosnian drive was halted. By Sept. 14, Serbian reinforcements were brought to the front, andthe war's most dangerous Serbian offensiveagainst Sarajevohad Serbianreg ularfo rces begun in earnest. By Sept. 16, the Bosnian defenders of Sarajev.()had been move to crush Bosnia pushed back to positions they held when their offensive had started, losing the gains theyhad made at tremendous cost in lives. Serbian forces, in heavy fighting on Sept. 15, carne by Konstantin George close to breaking the main Bosnian defense lines around the capital. By Sept. 16 in their advances in the capital's western As the world watches and does nothing, Serbian forces began suburbs had come to within less than half a mile of cutting the on Sept. 14 a "final offensive" to crush what is left of the main road from the airport to the city's center. Meanwhile, at Bosnian state , with the aim of completing this operation Jajce, the Bosnian commander on Sept. 15 reported to his before winter. The offensive has the goal of crushing the last superiors in Sarajevo that he could not hold out much longer. strongholds of resistance by Bosnian regular forces, in and around the capital Sarajevo and in areas of Bosnia designated Partisan war by Belgrade as belonging to a "Greater Serbia." These in­ It should be stressed that the policies of the Serbian lead­ clude the fo llowing besieged towns, all under intense air and ership are not only criminal, but stupid. They may seize artillery bombardment: Jajce in central Bosnia; Gorazde in every Bosnian "stronghold," but all they will have achieved southeast Bosnia; Brcko, Bosanski Brod, and Gradacac in is the basis for a long and brutal partisan war behind their northern Bosnia; Sokolac in northwest Bosnia; and the sur­ lines of conquest, in occupied Bosnia. That partisan warhas rounded Bihac pocket in western Bosnia. The last case, already begun. The myth of "Greater Serbia" will soon be though it never makes the alarming headlines it deserves, shattered by the reality of a Serbian "Vietnam" in Bosnia's houses some 300,000 Bosnians, including refugees, and has mountains and canyons. become like the Gaza Strip for the homeless Palestinians. The repeating by the Serbians of the Nazi wartime policy The green light for the Serbian onslaught was given by in Yugoslavia of mass atrocities and expulsions of civilians the U.N. Security Council resolutions of Sept. 11, when it has resulted in a growing, and' ever more effective Bosnian was decided to send a mere 6,000 additional U.N. troops, as partisanresistance movement behind the lines of the Serbian aid convoy escorts at best, and with no date specified. The occupation forces. Partisan warfare has escalated in the Security Council refused to proclaim an air exclusion zone mountains of eastern Bosnia, a region inhabited by Bosnian against the Serbian Air Force over Bosnian airspace. Coupled Muslims before Serbia's "ethnic cleansing" began. The mili­ with the continued international arms embargo against Bos­ tary-age men of the expelleesi are returning to their home nia and Croatia, this signaled to Belgrade that it could do as region. These village lads know every square inch of this it pleased. "impassable" terrain, every cave, every mountain spring, Politically, the last missing element in Serbian pre-offen­ every rock. They are putting thisknowledge to gooduse . sive preparations was a move to break the "solemn promise" The unreported reality of the partisan war can be per­ of Bosnian Serbian leader Radovan Karadzic that by Sept. ceived in the locations mentioned in the Serbian warcommu­ 12 all Serbian heavy weapons besieging Sarajevo and other niques put out by the Belgrade news agency, Tanjug, in a Bosnian cities would be turned over to the United Nations. dispatch dated Sept. 14. Tanjng reported "heavy fighting" When Sept. 12 came , Karadzic issued a "qualifier" to his around besieged Gorazde, andl around Visegrad, a town in promise, saying that the Serbian forces would not use their eastern Bosnia, taken by the Serbians months ago, and lying heavy weapons "unless attacked." Technically, the Serbian well behind the "front line" in Bosnia. Vise grad is a key link besiegers of Sarajevo were being "attacked" by the Bosnian in the Serbian military supply route, both to Gorazde, and to defenders of the besieged capital. What was behind this Sarajevo. The same pattern is true in northern Bosnia, in "attack"? the hills above the broad Sava Plains corridor taken by the Some 380,000 helpless civilians are trapped in Sarajevo, Serbians, linking Serbia with the main Serbian concentration without electricity or running water, and since the shameful in the western Bosnia region of Banja Luka. halt to the U.N. airlift, food stocks are running low. These The territory of Bosnia was the mainbastion of the very people will die of hunger or disease unless the siege is broken. successful partisan resistance against the Nazi occupation The Bosnian attack so-called, was a "do or die" attempt to forces in World War II. If the international community con­ break the siege before this holocaust. The Bosnian forces tinues to abandon Bosnia, theBosnians will again use irregu­ came close several times in the first half of September to lar warfare to drive out the invaders.

34 International EIR September 25, 1992 Interview: Hike Babookhanian

'Armenia must win the war so we candev elop our economy'

Hike Babookhanian is editor of Hanzapetakan , the weekly LaRouche, including EIR and EIR Strategic Alert. newspaper of the Republican Party of Armenia . He is also politically active in Armenia, holding positions as vice presi­ EIR: Can you describe the situation in Armenia now? dent �f the Union of Constitutional Rights of Armenia, which Babookhanian: It is very difficult. Every day the military he helped tofo und in 1990, in the wake of Armenia's indepen­ forces of Azerbaijan attack our borders and villages and dencefromthe Soviet Union, and as deputyof the Yerevan City towns. More than 5,000 people have already been killed in Parliament and a member of the Parliament's Commission this war. Their planes bombard us every day, with many of Human Rights. He is currently a candidate fo r Armenian civilian casualties. The Azerbaijanis have occupied much of Parliament, fo r which elections will be held on Oct. 15 . He our territory (see map): 30% of Karabakh , much of northern was interviewed by Marianna Wertz in Virginia on Sept. 11 . Armenia. There are 50,000 refugees from the north in Yere­ van now; with no shelter but tents . They are waiting for our EIR: Why are you in America? forces to free their villages and towns. Babookhanian: I was invited by the Schiller Institute. My In the economic sphere, it is also difficult. After the war main aim is to do an interview with Lyndon LaRouche for my began, virtually all production stopped. There is no agricul­ newspaper in Yerevan , as well as some other interviews with tural development. We need electricity generation, as what leaders of Armenian political organizations in the U.S.A. I we have is either destroyed or damaged. In northern Arme­ want to learnabout life in America because this is very impor­ nia, in the area of the 1988 earthquake, more than 300,000 tant for us to know. I also want to learn the details of the people live in boxes. It is very cold in the winter, which is LaRouche case, because in Armenia, a great part ofthe popu­ coming, and there is no oil for heat. Before the earthquake lation cannot believe that in America there may be political [in 1988] we had a nuclear power station. But since the prisoners, and we have written a great deal about Mr. earthquake, the nuclear power station has been closed, be­ LaRouche and his economic policy proposals in Hanza­ cause it is now dangerous. Gorbachov said it would be re­ petakan . paired in two years , but that hasn't happened. Last month, the bread reserves in Yerevan ran out. People EIR: Does Hanzapetakan circulate throughout Armenia? now stand in line for 10 hours to get a loaf of bread. Before Babookhanian: Yes. We print 6,200 copies per week and , the war we imported bread from Russia and Canada, but because of the difficult economic and military situation now, our railroad lines and roads run through Georgia, which has these go from hand to hand all over the country, with one begun a civil war, and now all the roads are closed. copy being read by many people. There are 3.5 million peo­ Before the war, we had very good industry , particularly ple in Armenia. chemicals and shoe making. We made the best shoes in the former Soviet Union. Also we produced autos, mined cop­ EIR: How did you learnabout Lyndon LaRouche? per, molybdenum, and stone, and grew many types of fruit, Babookhanian: The first time was in 1990, when we went grapes, and wheat. Today, in the whole border region, this to the conference of the Schiller Institute in Berlin. We estab­ is not possible, and Karabakh was a good agricultural region, lished good relations, and members of the Schiller Institute producing fine wine, grapes, and wheat. have since visited Yerevan three times, at the invitation of our Now the International Monetary Fund [IMF] dictates to party [Union of Constitutional Rights] . Hrant Kachatrian, a our government: You must develop only in this way. For member of Parliament and president of our organization, example, an artifically high dollar exists in Armenia. Today introduced us to Mr. LaRouche's writings. Since our meet­ one American dollar is equivalent to 210 Russian rubles. ings, we have translated and printed material about Lyndon Many Armenians earn only 800 rubles per month, which LaRouche in many issues of Hanzapetakan, and we have equals $3. But rubles are worth more , because you can buy also printed excerpts from publications associated with Mr. more in rubles than dollars. To give you an idea of what this

EIR September 25, 1992 International 35 ence of the United States.

EIR: What do you expect will happen now in Armenia? Babookhanian: We must win this war in a short time, be­ cause if the war doesn't end soon, we cannot develop our economy, we cannot reconstruct our villages and towns, and many more people will die.

EIR: But the government of Azerbaijan is trying to elimi­ nate Armenia, isn't it? � Armenians Babookhanian: Yes, and some other countries' govern­ � Bombardment ments are too. They say we want to violate the borders . We ask, which borders are you talking about? These are internal borders , not externalborders . In 1920 Armenia was an independent nation. Then the communist Russian troops occupied Armenia. Before the oc­ cupation, Armenia had different borders, including Kara­ bakh. Armenia never agreed to Karabakh being partof Azer­ baijan. There is only one document in the whole world which states that Nagorno-Karabakh is part of Azerbaijan, and that is the Soviet Constitution, which the whole world says is anti-human, the constitution of empire, or occupiers ! People who two years ago said this is a bad constitution, now say that this is the border. This border was created by the Soviets. But the United Nations Charter and other documents of international law have a basic principle of self-determination for nations, and the Armenian population in this territory has many times asserted its right to self-determination. And yet today, international organizations and many governments pressure us, and they have forgotten these principles, includ­ ing the U.S. governmentand other western nations. means, 210 rubles will buy 2 kilos of meat. But you can't buy even that for one dollar. As a result of this policy, the EIR: Do you have any foreign support? living standard of many people has gone down. Babookhanian: No direct support. Argentina declared that Our party has proposed to stop the free circulation of the principle of self-determination for Armenia is very impor­ foreign currency, but this is very difficultbecause the govern­ tant, as did Venezuela. Also we have good relations with ment is under strong pressure from the IMF to pay our share many Arab countries, such as Syria. of the foreign debt [which must be paid in foreign currency]. Armenia must pay one part of the debt of the former Soviet EIR: What about Russia's role? Union [which all the members of the Community of Indepen­ Babookhanian: Russia's internal and external policy are dent States must now repay] . Our government has sought to such that they can't take a direct course: They go left or right get more loans from the IMF, but the Union of Constitutional depending on the situation. Yeltsin tried to intervene in the Rights has demanded we not do so. crisis, but it didn't work. Now Russian troops are in Armenia and Azerbaijan. Azerbaijan is occupying with the help of EIR: Are you familiar with Mr. LaRouche's proposal for Russian troops, Russian tanks this year. Russia gives Azer­ the Paris-Berlin-Vienna Productive Triangle? baijan airplanes, automobiles, tanks, and all the weapons Babookhanian: Yes. We discussed this. Unfortunately, they ask for. When Russia wants Azerbaijan to win, Russia however, none of the proposed spiral arms of the Triangle gives them many things. When Russia wants us to win, Rus­ goes to Armenia. Despite this, the proposal is very good, sia gives us things. When Russia wants to pressure us, they because if Europe can be developed, a strong Europe with a close our oil supply lines and trading routes. productive economy, it will tend to equalize the political situation in the world today. Today there is only one major EIR: You leave here for California on Sept. 12. What will power. If Europe is developed, Europe can equal the inf'lu- you ask Armenians in Californiato do?

36 International EIR September 25, 1992 w WI!J.l}�'�u,s"" '¢!1-'t ttjtl,tltU\' �QltSf lf)l.�,pr lll'b'l-O'" to. ,..nf\�C t.ffN.trU.U6tJ.\1 < ntt \lMUU'fl U'tJ.Ul1"(, Greece, Thrkey crises may widen Balkanwar

by Konstantin George

The instability in the Balkans has expanded beyond former Yugoslavia and the erstwhile communist countries of Bulgar­ ia and Albania, to include the only relatively stable. countries in the region, NATO members Greece and Turkey. Both countries are plunging into chaos through the emergence of The Armenian weekly Hanzapetakan, of which Hike parallel crises which threaten to topple the governments of Babookhanian is the editor, fe atures Prime Minister Constantin Mitsotakis in Greece and Prime coverage of the program of u.s. Minister SUleyman Demirel in Turkey. presidential candidate Lyndon H. Greece, where the state is all but financially bankrupt, LaRouche, Jr. has been in the throes of a series of crippling public sector strikes. Turkey, beset by economic woes, is at the brink of Babookhanian: I will discuss what kind of help they can civil war, as the Kurdish insurrection mounts. Miljtary coups give us. We need good specialists as well as technological are a real possibility in both cases. In Turkey especially, this assistance. I will also suggest in the political sphere, that dynamic threatens to consolidate the power of a (;1.,Ottoman l:lI�. they make Armenia an issue in the presidential campaign. faction which aims at restoring the empire. Bush changes his position all the time; not really, but he As in former Yugoslavia, the disaster threatening Greece appears to do so. When Clinton sees Bush saying two good and Turkey is not simply "home grown." Turkey has been words on Armenia, he says three. There are 1 million Arme­ steered toward a neo-Ottoman inversion by western, primari­ nian-American voters . I appeal to Armenian-Americans, that ly Anglo-American manipulation; and the upheaval in they look in detail at what Bush is doing. Bush wants to Greece is traceable to the vicious "conditionality" policies of pressure Armenia. the International Monetary Fund (IMF). Bush's theory of the new world order is very dangerous. It is not right, when one country or one President or one Greece plunges toward chaos government pressures other, small countries, and dictates The governmentof Prime Minister Mitsotakis could col­ economic and political policy. lapse at any time and plunge Greece into its worst social­ For example, now Bush is pressuring Iraq , with his "no­ political crisis since the mid- 1960s, on the eve of the April ffy zone." I ask, why doesn't Bush pressure Azerbaijan not 1967 CIA-backed military takeover. Greece is bankrupt. to bombard our towns? Every day in Stepanakert they kill Twisting the knife, an IMF-imposed credit embargo was 20 civilians-including babies and women. And there's no imposed afterGreece failed to meet IMF conditions, and the similar situation in Iraq. Iraq's planes are not bombarding European Community refused to extend desperately needed the civilian population every day. economic aid. The IMF vise forced Mitsotakis into the only response EIR: What do you think of Mr. LaRouche's presidential allowed by IMF "rules," namely, a severe austerity packet campaign? centered on drastic cuts in public workers' pensions, and the Babookhanian: If you run for office in Armenia, you are first wave of privatizations of public services, which began untouchable by Armenian authorities. We have created a new this summer with the Athens bus lines. The packet was sub­ country� and this is a clear principle. When one candidate mitted to parliament for approval during September, but as cannot freely campaign, this is very far from democracy. of Sept. 15, the crucial vote had not been held. Since May, After Mr. Kachatrian of our party came to America earlier the country has been hit by an endless strike wave in the this year and met with an assistant to a U.S. congressman public sector, with no vital public service left untouched. By about the LaRouche case; he came back and told us that in late August, the strike wave peaked, with two general strikes America human rights have been destroyed. in two weeks. We think that it is not right that the American population The strikes have been led by the communist-dominated is not demanding that LaRouche be freed. Confederation of Trade Unions, and supported by former

EIR September 25, 1992 International 37 Prime Minister Andreas Papandreou and his radical-populist The coalition crisis arose out of the failure of Prime Min­ Pasok Party, the largest opposition party to the ruling New ister Demirel to cope with the economic upheaval and, above Democracy Party . The strikes seem like a replay of the 1965- all , his toleration of repressive pplicies against the Kurdish 66 strike wave, led then as well by the communists in alliance population, which have caused an escalation in the guerrilla with Papandreou, which created chaos and ended in the 1967 war. This policy brought about the first fissure within the coup. SHP, one-third of whose deputieF are Kurdish. While so far The effect of the strikes on the greater Athens area, where maintaining parliamentary loyaltY to the coalition, because 40% of Greece's 10 million people live, has been catastroph­ of the justifiedfear that any post�Demirel regime would en­ ic . Downtown Athens in the first two weeks of September gage in far more brutal anti-Kurcjlish repressions, they have has been transformed into a battlefieldbetween militant strik­ repeatedly denounced governmentpolici es. ers and police. Vital public services, such as urban transit, Ironically, however, Demirel is charged by some with bus and metro lines, banks, and post offices, have been shut being "too soft" toward the Kuras. Yet Demirel has never down. Repeated strikes, begun without warning in power really run policy towardthe Kur<$ . All aspects of the repres­ plants, have resulted in instant city-wide blackouts, and there sion and anti-guerrillacampaign qave been run by the Gener­ have been crippling hospital strikes by doctors and nurses. al Staff. Its policy of indiscrimipate repression has placed Mitsotakis is gambling that popular backlash against end­ Demirel in an impossible situatiqn. As the scale of warfare less inconveniences will be stronger than the strike wave. intensifies each week, the blame for the debacle is placed on His situation, however, is very weak. His party commands Demirel. only a one-vote majority in parliament and is divided over Demirel foolishly thought th.t by placating the General supporting him. On Sept. 9, three former Mitsotakis minis­ Staff, giving it free rein in the war in Kurdistan, he could ters , who have seats in parliament, issued an open letter escape becoming the victim of a coup. But, as events in demanding thatthe government back off on its pension cuts, late August and early September confirm, the nostalgic neo­ or else face defeat in parliament. Should Mitsotakis fall, Ottomans have decided to pull tile plug on the present gov­ early elections will be held, with the result where no partycan ernment. form a government, or the prospect of a Pasok-Communist This brings us to the split in the SHP, which will sooner coalition. Either outcome will lead to a pre-coup situation. or later topple Demirel. The SHp! is one of the two successor parties to the Republican People's Party (CHP), which was Turkish coalition crisis banned, as were all the old parties, by the September 1980 The Turkish coalition governmentof PrimeMinister De­ military coup. In a move calculat� to accelerate the fissuring mirel could fall at any time, unleashing massive internalstrife of the SHP, President Ozal legalized theold parties, clearly on top of the civil war in Turkish Kurdistan. The crisis is also aware that once the CHP was re-Iegalized, a pole would exist not new for Turkey. The most recent precedent was the civil to collect and galvanize into action the anti-Inonu forces war conditions of the late 1970s which led to the Sept. 12, within the SHP. That is exactly what transpired. 1980 military takeover. This time around, however, a mili­ On Sept. 10, the CHP was ire-founded with delegates tary coup would not be only a question of restoring internal drawn fromthe SHP and fromthe bther CHP successor party, stability. The leadership of the Turkish military and the dis­ the anti-Demirel Party of the Democratic Left, led by former parate coalition of forces seeking to bring down the Demirel Prime Minister Ecevit, a rabid nationalist-populist opposi­ government, ranging from the Anap Opposition Party of tion figure who has been demuding, in tandem with the President Turgut Ozal, to the right-wing chauvinistic "Grey military and the right-wing extremists s�ch as Turkes, a Wolf' pan-Turkic party of former Col. Alparslan Turkes, to tougher policy against the Kurds and a strongerTurkish mili­ the "leftist" radical nationalist-populist figure, former Prime tary profile in the Caucasus and the Balkans. This stance Minister Bulent Ecevit, all share a common goal of promot­ taken by Ecevit is not a bluff: In 1974 when Turkey, under ing a revival Ottoman Empire, complete with military adven­ Ecevit, invaded Cyprus, seized 40% of the island which it tures and operations in the Near East, the Caucasus, and the holds to this day, and "ethnically cleansed" the area, expel­ . Or Balkans. ling 200,000 Greek civilians, ' nearly 45% of the total Demirel's government rests on a coalition which he had Greek Cypriot population. formed with the SHP party of Erdal Inonu , son of the late At the founding congress, ECelVit front -man DenizBaykal Ismet Inonu, the legendary associate of Kemal Ataturk, who became the chairman of the reconstitutedCHP , defeating his founded the modern Turkish nation out of the shards of the rival and Inonu ally Erol Tuncer. According to the Turkish degenerate Ottoman Empire. Ismet Inonu was, after Ata­ press of Sept. 11, Ecevit and Baykal control at least 18 of turk's death, Turkey's second President during 1938-45 . the 70 SHP deputies. On Sept. 16, 14 SHP deputies quit the There is a threatened two- or even three-way split in the SHP, coalition. Prior to this defection, the coalition had 244 seats which has 70 seats in parliament, that could bring down the out of 450 in the National Assembly. Now it is hanging by a government at any time. thread, with only a five-seatmajority .

38 International BIR September 25, 1992 Interview: Yu ri Chernichenko

Russian government broke, can't pay fo r winter bread by Rachel Douglas

The president of the Fanner Party of Russia describes the where per capita meat consumption has dropped to less than grain acquisition crisis in Russia this summer as the worst half the nonnative consumption levels of a decade ago. since 1927 and 1928. In those years, peasants in the Soviet Union refused to sell grain to the state at prices far below 'Your main task is the harvest' what they needed to function. The dictator Josef Stalin re­ Yuri Chernichenko, president of the Farmer Partyof Russia, sponded by starting the forced collectivization of agriculture was interviewed by Rachel Douglas in Moscow on Aug. 25. and the slaughter of the most productive farmers , under the Also participating in the conversation were Arnold Litvinov, banner of "de-kulakization" (elimination of the kulak, or Farmer Party deputychair man, who is also a member of the prosperous peasant). Moscow City Council, and Viktor Kiryanov, chairman of the In 1992, the collapse of grain procurement would feed Farmer Party inAl tai, in south-central Siberia . into an unprecedented political crisis, Yuri Chernichenko warnedin a late-August discussion with EIR . EIR: Tell us, please, what you have to say about prices and On Aug. 25, he reported that less than 14% of the grain about Yeltsin, about the similarity of the current situation to harvested in Russia had been sold to the state, which is still the 1920s, and what you call the centaur. in charge of most bread production. The rest could spoil, Chernichenko: The centaur, according to ancient Greek my­ but the Farmer Party leader said the prevailing attitude of thology, was a being that united two different natures-the producers was, "Let it spoil, rather than sell it at these pric­ natureof a horse, and that of a man. The present situation recalls es." The Yeltsin governmentwas then offering 10 rubles per the centaur, because the market economy, with thehegemony it kilogram of grain (10,000 rubles per metric ton) . By Sept. allocates to prices, is trying to sit in combination with the 4, according to Izvestia, 5 million tons more had been deliv­ structures of the chainnen's or directors' corps, which was ered to the state, or 19% of what was threshed to date, but created for the precise purpose of ensuring that there be no that was still less than half of the minimum total required. prices, no market relationships. There was the command, the The average price was up to 12 rubles. plan, and there were bread products. That was it. The supply of bread, the main dietary staple in Russia, has We always knew for sure: Vasha glavnaya zadachalubor­ already become erratic in Moscow neighborhoods. But if the ka i khlebosdacha! [Your main task is the harvest and deliv­ procurement price were raised to the vicinity of 20 rubles per ery of grain!] Everything was clear. You brought it in, and kilogram, which is what major grain-producing areas are be­ you shipped it off. lieved to be holding out for, it would mean bread prices of 40 And no one in the whole wide world could understand or 50 rubles perkilogram . A pensioner in Russia receives only why people in the U.S.S.R. were such idiots, that between about 1,000 rubles per month, and many salaries are in the 2- the field and elevator, they did not have their own store­ 4,000 ruble range. Bread prices at that level, Chernichenko houses. What kind of loonies are they? Are they brain-dam­ predicted, would provoke "massive dissatisfaction." aged? No, indeed. That was part of the system, according to Meat and dairy producers will be slaughtering more of which you cut the grain, and then instantaneously, the very their herds, according to Fanner Party leaders , for similar same night, dispatched it to the elevator, even 70 or 80 kilo­ reasons. They expressed exasperation at the incompetence meters away. And you were left without the grain. Because of the Russian government on this vital matter. Briefed on your obligation, your assignment, was to ship the grain off the inability of dairymen to command a breakeven price, there . There wasn't any discussion about prices. The collec­ Prime Minister Yegor Gaidar told a Farmer Party delegation tive farm itself did not set them. That was not its business. that if some dairy herds were cut in half, the laws of the The collective fann is a structure, within which people are market would kick in, and the price would be better. This is absolutely indifferent to prices. They would receive a small the advice dispensed by the head of government in a country salary in kind.

EIR September 25 , 1992 International 39 EIR: Please describe the situation at this moment. vegetarian fast of our Orthodox ,at Lent; six weeks, during Chernichenko: The situation now , half-way through August, which it is forbidden in the Orthodox faith to eat meat, fat, is that Russia has harvested and threshed 58 million tons of milk, and so forth . grain, but has sold scarcely more than 8 million tons to the state. EIR: You said that Yeltsin has given responsibility for agri­ The remaining 50 million tons of grain, both what the culture to Gen. Aleksandr Rutskby, the vice president, and farms grow for themselves, and what they grow for sale, is a special staff of 14 people? lying on the farms, including farmsteads, including elite hog­ Chernichenko: The staff for c�ing out the most urgent raising establishments, etc . It is not being sold. There is a agrarian measures is headed by Vice President Aleksandr kind of silent struggle going on between our White House Vladimirovich Rutskoy. This situation is very similar to the

[Russian government] and people who work in agriculture. common folklore plot, in which a hero is ordered: "Go there, It would be sheer raving nonsense to say that the agrarian he knows not where/Get that, he knows not what/But if he workers are absolutely right and the White House is a miser. come not soon, it's the gallows at noon." And he goes. You have that in all folklores of all peoples. So agriculture, due EIR: Who is proposing what kind of prices to whom? to various circumstances, was a�igned to him, to Rutskoy. Chernichenko: So far , the situation looks like this. Picture People came out of Moabit Prison alive; but from Soviet a man who has come to a huge market, a marketplace in Paris officialagriculture , not a single leader ever escaped. or , say, Rome . He comes in, and he yells at the top of his lungs, "For tomatoes, no more than a thousand and a half li­ EIR: What about the advisers from the Chicago school? IIIIIIIIIIas !" That's what he does. And then some other crazy Chernichenko: The Chicago boys, as they-Gaidar in­ hollers, "Who's that madman yelling there about a thousand cluded--call themselves, are the group of co-thinkers who and a half liras?" And then there is trade back and forth: Who comprised this government. Now they are getting heavily will buy, for how many liras, right? And then, "Meat! No diluted with other structures, a differentmentality and a dif­ higher than $3, on the hoof!" What kind of a market is that? ferent concept. But the most elementary, simple, crude That is the market we have here . It is the horse who is yelling, things-to ship food to the north, because there is snow on the yelling is from the bottom half of this brand-new struc­ the ground there, or to save the 'potatoes there, or to bring ture , this centaur. tomatoes from the lower Volga and sell them here-require So they go on yelling. And the answer is, okay, keep a staff of pragmatists, of realists,' to deal with them. yelling, that's your business. But the ones who are yelling This is normal military strateigy, and how strategy is di­ represent the interests of the budget, the interests of the so­ vided. You have a [19th-century German General] Moltke. cially destitute layers of the population, the interests of the Kriegstrategie-war strategy. This is a lofty matter. And Army , and so forth . This is not raving, this is simply the then you have someone like [Nazi Economics Minister current situation in Russia. If it were possible to raise the Hj almar] Schacht, your pragmatist, who deals with practical purchase price for grain to between 16 and 20 rubles [per questions, like how best to annihilate Russia. You have your kilogram] , this would lead to a monstrous rise in the prices pragmatist who wipes out 20 miUion people in Russia, while of food products like bread-which would rise to 40 or 50 your theoretician is off somewhere else. Now in the case we rubles per kilogram-and would also absolutely ruin our are talking about, this division appliesas follows: On the one animal husbandry. Animal husbandry is unprofitable as it is, side are the Chicago boys, and on the other, the colonels. Or but it would become absolutely pointless. So the person who whoever they are, maybe not colonels.

is yelling, "No more than 10 for a hundredweight," and so We of the Farmer Partyh ad an executive committee on is not so stupid; it's just that he doesn't have it. meeting, and we polled the people on the committee: What The problem is that we continue to have a social situation, should be done? in which tens of millions of people living below the poverty They replied: Support the pragmatic efforts of Rutskoy, level look to the government. They have no way to survive. and do not make alliances with any other party. All of us here earn something or other, but there are people Kiryanov: About the price on grain, we made an analysis who are simply deprived of anything. that showed that the ones raising the price are the ones who do the worst-the chairmen of loss-makingcollective farms. EIR: You remarked that President Yeltsin recently said In order to somehow keep afloattoday , they raise the biggest there would not be famine. racket of anybody and raise the grain prices. The medium­ Chernichenko: The President said there would be no fam­ sized, stronger farms today are satisfied with a price of 8- ine, evidently having in mind certain extreme phenomena. 10,000 rubles [per ton] , becauseitheir cost price is very low We haven't defined what famine means. It is the condition and profitability is high. But the ones who are worst off of of Leningrad, surrounded by Hitler's forces, or 1933, when all and are on the verge of bankruptcy from their very first in Ukraine and Kuban millions of people died. Or the 40-day steps to the market, are now demanding subsidies. In the

40 International EIR September 25, 1992 past, they got subsidies; today, they want to get them via the purchase prices. Chemichenko: This is a political attempt to save the struc­ ture, the monopoly. Litvinov: Yes, precisely a political attempt. Chernichenko: Political salvation. This is not economics Bangladeshi migrants as such. Litvinov: But to the extent that, in what remains of that are flooding India system at various levels of power, you have ensconced the very people who earlier were in the Communist Party , we by Ramtanu Maitra have a paradox. Or if not a paradox, then a situation you could describe this way: The top is democratic, but at the base are sitting the former party structures. And they fail to India's largest opposition party in the! parliaments , the Bhara­ carry out the new laws, and they make the ruckus that puts a tiya Janata Party , has recently demanded the detection and brake on all economic processes. deportation of illegal Bangladeshis residing in India. Urging Kiryanov: The only person who could become director of the governmentof Prime Minister Narasimha Rao to take up a collective farm or state farm, was someone who had worked the issue on a war-footing, the chauvinist Hindu leaders of in the regional committee of the Communist Party . If he the BJP claimed that at least 15 milliQn Bangladeshi Muslims hadn't worked there, he would never become a leader. So have infiltrated into the border districts of the eastern and the majority of those remaining are leaders who robbed the northeastern states of Assam, West �engal, Tripura, Bihar, farmsteads, who went into administration, and who never and Manipur, among others . knew how to lead anything. They carried out instructions There is little doubt that the BJp, somewhat weakened thatcame from the Central Committee in Moscow. politically in recent days due to its failure to make any sig­ Litvinov: The crux of the matter is that these are people who nificant headway on the religious strife at Ayodhya-their were trained not to think, but to carry out orders. And landing bread-and-butter issue in the 1989 �d 1991 general elec­ in a situation where you have to think, to find a way out, tions-is trying to gain some politic�l mileage exploiting the make comparisons, analyze something , they are physically Bangladeshi influx issue. But no one could deny that a large incapable of doing this. And so, this political situation, where number of Bangladeshis have cros.ed over into India and the upper levels are democratic, but below are the old struc­ made it their home. The Bangladeshi,government,ostensibly tures, all these people who do not know how and do not want afraid that an admission of such infiltration would give rise to think, is the most terrible. It is very difficult to change. to anti-Bangladesh sentiments in India and elsewhere, has Because all cadre questions at the lower levels are being denied the existence of such an infl1jlX, while admitting that decided by the people who decided them in the past. border-crossing takes place due tq a thriving smuggling business. ElK: What is the effect of the fact that the problem of the The presence of Bangladeshis js omnipresent even in right to own land has not been solved? Delhi, almost 900 kilometers from tlle Bangladeshi borders. Kiryanov: This is fundamentaltoday. As a state farm work­ There are innumerable slums where Ute Bangladeshis can be er, I can receive 20 hectares of land. But not my family. found in force and, east of the Yamuna River, the direction My wife is a teacher, my son a miller; they and the others in which Delhi is growing by leaps and bounds, an area which supposedly have land. It's listed there on paper as part of is even indentified as "Bangladesh. '. the state farm land. But they cannot receive the land. This obstructionrema ins. When he was in Altai, Yeltsin said that An explosive situation he would remove these reservations and that everybody could A recent study by journalist Sanj oy Hazarika, sponsored receive land. But up until now, almost four months later, this by the American Academy of Arts and Sciences, and Harvard question has still not been decided. and Toronto universities, has brou�ht to light the enormity Litvinov: And it won't be. Something very clever was done of this migration. According to the study, a little less than here, which the democratic forces underestimated. A law on the present population of the entire �ustralian continent had local self-management was adopted, on the soviets, which migrated from East Pakistan (1947-71) and Bangladesh gave all power to the lower levels of authority . Remember, (1971-91) to India. Obviously, not afl the migrants are illegal I said that we have "democracy" at the top and not at the residents. Many, particularly in th� late 1940s and 1950s, bottom. And according to this law that was adopted, the top were Hindus leaving the newly formed Islamic Republic of gave all the power to the bottom levels ! And this law is now Pakistan. Nonetheless, Hazarika's study points to some im­ in effect. They are doing whatever they want-they seize portant findings which force the q�stion: Can Bangladesh land and they decide whether to give land or not. remain a viable economic and polipcal entity, and, if not,

ElK September 25, 1992 International 41 what can be done to ease the human misery evident by large on foreign aid and grants in order to importwhat it consumes. illegal migration? Some of Hazarika' s findings are: The inability of the governments, guided by a handful of • About 14 million East Pakistani/Bangladeshis had left corrupt and indifferent bureaucrats, to raise the minimal home to settle in India or Pakistan. amount of resources from the country's domestic sources is • About 200,000 Bangladeshis are infiltrating into the a case in point. bordering state of West Bengal every year. Beside the Bangladeshi workers in the Persian Gulf and, • According to a confidential central government esti­ of course, in Pakistan, the Hohg Kong-based weekly Far mate , at least 56 state assembly constituencies along the Eastern Economic Review reported recently that already borders have undergone a demographic change. The illegal 200,000 Bangladeshis are working in Malaysia. In coming migrants can now exercise significant electoral muscle and years, unless measures are taken, the educated and skilled can decide the outcome of any election. Bangladeshis will leave their own country in droves, seeking • Of the 22.38 million inhabitants centered in Assam, a greener pasture. Such migration of qualified individuals according to the 1991 nationwide demographic census, about will be spread all over the world, although it will be concen­ one-third were immigrants and their descendants from East trated in the Persian Gulf and otherIslamic countries. Pakistan/Bangladesh. Native Assamese are unlikely to be While the educated and skilled Bangladeshis will try to more than 40% . The present instability in Assam has its roots finda temporary , or even perma�ent, legitimate home, where in this lop-sided infiltration. their skills can be translated into a decent living, such an In the 1980s, Hazarika points out, outraged by years of option does not exist for the tenS of millions of illiterate and land-grabbing and manipulation of voters' lists, thousands unskilled Bangladeshis. For them, the only choice is to cross of migrants and their descendants were massacred in Nelli, over to economically poor India; living in miseryand causing Lakhipathar, and Sawaul Khua Sapori. The Asom Gana Par­ increasing frictions. Located at the bottom of the totem pole, ishad (AGP) government which came to state power in As­ beside being illegal immigrants, these Bangladeshis, com­ sam, ousting the traditional Congress Party in the 1980s, had peting successfully for the lowl�st jobs, have already started the deportation of millions of illegal immigrants as its main to generate enemies among the poor Indians living in border electoral plank. Although the AGP did not succeed in meet­ districts. ing its promise, the campaign gave birthlater to a radicalized, There is no question that the BIP and their ilk will exploit violent movement in Assam. such conflicts to gain politically, which means increasing • In Delhi, there are at least 400,000 Bangladeshi ille­ provocations targeted toward the Bangladeshi poor. One of gals. This figureis almost four times greater than the govern­ the front groups of the BIP, tile Akhil Bharatiya Vidyarthi ment admits . Parishad (ABVP), has become :extremely active in the Ban­ The Bangladeshi influx has also been addressed by the gladesh-West Bengal-Bihar border districts. The ABVP al­ government officialsof Manipur , a northeastern state border­ leges that the infiltration of Bangladeshi Muslims is guided ing Assam and the country of Burma (Myanmar). by a grand design hatched in the Bangladesh capital of Dha­ In Tripura, where at least 60 ,000 Chakma refugees of ka. The ABVP claims that in the border districts of West the Buddhist faith have taken shelter in protest against the Bengal and Bihar, under the leadership of a Muslim, a de­ Bangladeshi government for settling Muslims in the tribal mand for a separate state, PurvanchalState , has been voiced. areas, among other grievances, the Bangladeshi influx has The goal of these "conspirators" is to makethese border areas been noted with alarm by local political leaders . According a part of Bangladesh, the ABVP claims. to the Calcutta daily The Statesman, the official sources point While the ABVP's claims : verge on the ludicrous, the out that the incursion of Bangladeshis in 1990 has raised the Dhaka elites must note that talk of a "new demographic or­ state's population by 14,900. In 1989, infiltration figures der" will only feed paranoia. showed 10,000 illegal immigrants. For example, the influential Dhaka-basedjournal Holi­ day carried an article recentlyby Sadiq Khan, a scion of a The dangers political family. The article, "The Question of Lebensraum," Such large-scale migration from Bangladesh has the po­ called for a "world demographic order" to plan and imple­ tential to create serious instability in the eastern and north­ ment "population movements and settlements to avoid criti­ eastern states. But Bangladeshis are leaving in such large cal demographic pressures in pqckets of high concentration." numbers because they are finding it impossible to make a The author continued: "A natural outflow of population pres­ living at home any longer. The country is being steadily sure [in Bangladesh] is very much in the cards and will not pauperized. The country's agriculture, which improved sig­ be restrainable by barbed wires or border patrol measures. nificantly during the 1970s and the first part of the 1980s, is The natural trendof population1overflowfrom Bangladesh is now stagnating. Bangladesh has little to show in the industri­ toward sparsely populated lands of the southeast in the Arabi­ al area, barring textiles and jute. an side and of the northeast in the Seven Sisters of the Indian The country continues to remain almost fully dependent subcontinent. "

42 International EIR September 25, 1992 Uruguay resists George Bush's 'democratic new order' by Silvia Palacios and Lorenzo Carrasco

In Uruguay, considered for a long time the "Switzerland" of U.S. Ambassador to the Organization of American States Ibero-America because of its longstanding stability, its high (OAS) Luigi Einaudi, following the civil-military uprising living standards, and its heavy dependency on international in Venezuela on Feb. 4 of this year againsta corrupt "democ­ financial speculation, a group of patriots has begun to resist racy" based on defending the free trade policies of the Enter­ the designs of George Bush's "new world order," especially prise for the Americas initiative. Einaudi at the time had in its manifest intention to dismantle the Armed Forces and insisted that an OAS military force should be deployed into maintain Uruguay as a buffer state in the Anglo-American Venezuela in the event of a coup there, to "defend de­ geopolitical "balance of power" in the Southern Cone. In mocracy." fact, this was precisely the role assigned to Uruguay by the Scottish Rite Freemasons so predominant in 19th-century Political system pilloried British diplomacy in the Rio de la Plata region, a diplomacy Military resistance to President Bush's new world order openly adopted by Washington throughout the current could rapidly intersect the growing discontent against the Uru­ century. guayan political system today being ¢xpressed in the rural sec­ The most relevant aspect of Uruguay's nationalist resis­ tor, the basis of Uruguay's real econCilmy. Despite the fact that tance was reflected in the statements of Army Commander­ the agricultural sector has been traditipnally sympathetic to free in-Chief Gen. Juan Rebollo who, in bidding farewell last trade, the continued application of these "neo-liberal" policies June 11 to the battalion that would be participating in the has provoked a violent reaction by that sector against the in­ United Nations peacekeeping force in Cambodia, said that creasing impoverishment and depopulation of the nation. "two great powers have parted the world, and aligned allies It is in this sense that the president of the powerful Rural to defend their concepts even in the most remote confines of Association of Uruguay, Carlos Enrique Gaspari, gave a the planet." speech last August at the cattlemen's exposition-in front of But, warnedRebollo, to the disgust of the U.S. embassy Uruguayan President Luis Alberto L.acalle, one of the Ibero­ in the capital of Uruguay, Montevideo, "the bipolarity, as American standard-bearers of Bush's "democratic order"­ it manifested itself yesterday, no longer exists; currents of in which he vehemently attacked the political system for its opinion have formed around world centers of power which incapacity to offer solutions to the country's increasingly seek to reduce the role of Third World armed forces to func­ urgent needs. Gaspari emphasized that principal concerns tions more appropriate to a national guard, with responsibilit­ include "the dysfunction of the entire political system, the ies for such matters as drug trafficking, ecological control, lobbies and sectors' pressures against the state . . . the adap­ and circumstantial support for the police, to the detriment tation to the general framework of Mercosur [the free trade of their true mission, which is maintaining the peace and pact of the Southern Cone] , and the opening and inter-relat­ defending sovereignty. " edness with the rest of the world. " According to the Uruguayan press, Defense Minister He specifically referred to the fact that if the policy of Mariano Brito declared, during testimony before the defense integration continues in the free trade mold, the crisis of committee of the Uruguayan Congress' lower house, that he the agricultural sector will worsen� "National agriculture," "disagreed with the solution proposed by the United States" declared Gaspari, "has lost 32,000 producers in the past 30 with regard to the drug trade . Further provoking the concerns years. If coordination in integrating with the regional market of the U.S. State Department, minister Brito told the defense is not adequately carried out, that number will significantly committee that Air Force Commander-in-Chief Carlos increase." Pache, speaking before a meeting in Honduras of air force The Uruguayan agricultural leader summed up his indig­ officials concerned with continental defense, had taken a nation: We are "tired of waiting for the take-off to progress; position against the formation of a military contingent to tired of impotently seeing our children leave in searchof other "defend democracy" on the continent. horizons; tired of high-sounding speeches which promise The latter is a direct criticism of the position taken by brilliant futures, and then evaporate like drops of water in

EIR September 25, 1992 International 43 the desert; tired of being postponed and ignored. We must Q: How would you evaluate the 1973 coup d'etat, two de­ act urgently. We issue a national call and demand of the cades later? government and of all the political and social sectors that Bordaberry: First of all, I would like to make a few clarifi­ they awaken and respond to the responsibilities of the hour ... cations, and one of these concern� the expression coup d' etat. This is undoubtedly a successful expression, but it is not a The collapse of liberal democracy neutral or objective one because at the same time that it The crisis in Uruguay, as in the rest of Ibero-America, is applies the label, it condemns. Therefore, I cannot accept it, not limited to the momentary conditions and circumstances because it was not the Uruguayan state which was changed of government,but has spread to the institutional foundations by the decree of June 27 , 1973, but rather the representative of these nations, especially those derived from the liberal political institution of liberal democracy, the Congress, and democratic system coming out of the French Revolution. On with it the idea of representation through the parties as the this theme, one lucid voice has been that of former Uruguay­ only possible manifestation of the people's will. I also think an President Juan Marfa Bordaberry, also a rural business­ it is wrong, and I think I should clarify this before answering man, who after two decades of political silence, granted a your question, to suggest that when the institution of Con­ July 2 interview to the daily El Observador EconOmico, gress falls, so too does the state of law, and that what follows which caused such an immense impact that the entire political is a so-called de facto regime. This attempt to confuse democ­ class pretended to ignore it in an effort to silence it. Shortly racy with a state of law is histori¢ally unacceptable, because before giving the interview, Bordaberry commented on the it purports to claim that before the democratic systems of the April 5 action of Peruvian President Alberto Fujimori in 20th century existed, there was. no law. Not even Roman shutting down that nation's Congress, withthe laconic com­ law. When a regime enters into a state of chaos, as happened ment that "democracy does not always coincide with the for example in Argentina during: Alfonsin's last months,no Common Good." one can deny that there was democracy, but a state of law In the above-mentioned interview, of which we publish was clearly not in force. Between ourselves, not to go any excerpts below, Bordaberry justifies his 1973 actions in dis­ further, one cannot say today that there is full exercise of solving Uruguay's Congress and attempting to put an end to certain fundamental rights of the ,individual, such as the right the country's "partiocracy" which, as in the rest of Ibero­ to property and security, and yet it has not occurredto anyone America, serves as a key source of the moral and political to say that we do not live under a democratic regime. corruption upon which the so-called "democracies" of the continent sustain themselves today. Bordaberry charges that Q: But don't you think that the Congress is an essential liberal democracy abandoned the principles of natural law element of the state of law? which should guide any constitutional system. "Democracy Bordaberry: Not for the enforcement of law. The Congress has sought to appropriate institutions which stem from natu­ was dissolved, but enforcement Of law was maintained; what ral law. And it has presented itself as if it were something did not continue was the democratic congressional political natural , which it is not; it is the opposite of the natural; it is institution. a constructof man's reason, it is a fictionfashioned by man." It would appear that the generalized crisis of the Ibero­ Q: But can there be a state ofllaw when one of the three American "democracies," which are collapsing under the essential powers, which is the legislative, is not functioning? most outrageous corruption scandals, is proving the Uru­ Bordaberry: You continue to cbnfuselaw with democracy, guayan President right. and so it is worth a further clarification. At that time, and particularly after the departure of the military regime, from '76 until '85, the idea that democracy is defined as the full exercise of individual rights was made known. This is what has been called democracy as a !way of living: a situation in Documentation which people can live in peace, in order, and free of all arbitrariness. But that is not democracy, that is a natural situation in any society independent of the political system that guides it. Democracy is not that; it is a political Liberal democracy not system. And when I speak of ' democracy, I am referring to a political system, to parliamentarianism, to the parties, synonymous with law to the idea of representation, to the concept of the periodic

delegation of the authority to I rule, to the political form Thefo llowing are excerpts of the interview granted byfo rmer of liberal thought. Democracy has sought to appropriate President of Uruguay Juan Marfa Bordaberry to the Monte­ institutions of natural law. And it has presented itself as video daily EI Observador Econ6mico, on July 2, 1992 . if it were something natural, which it is not; it is the

44 International EIR September 25, 1992 opposite of the natural; it is a construct of man's reason, nature, there is a prior theological definition. First, one must it is a fiction fashioned by man. ask the question why man exists in the world, from whence What is mistakenly called democracy as a way of life, did he come and where is he going? And how one responds the situation in which we all have the right to live in peace, to this will define the ideological framework in which the in order, and free of arbitrariness, that is what all Uruguayans political institutions are based. practice. I also practice it. That is what I rescued on June 27, If man comes from nothing and goes to nothing, if for 1973, that right to live in a society in peace and order. When him everything is reduced to this passage on Earth, then he I attack democracy, I attack it as a political system, not as cannot be denied the right to live his life intensely and with what is mistakenly called a way of life. the greatest possible freedom; it is his only opportunity. Therefore he has reason, with whicb to try to order his life in Q: But human rights violations, for example, are extreme society during thattime , his only time. From this viewpoint, expressions of arbitrariness. During the de facto government, democratic institutions based on liberal ideology are born. there were multiple denunciations of this. Thus, one can explain and justify t;hat there is no authority Bordaberry: As with other questions you have asked, I possible, neither from God nor from any man, to affect his would first like to make a clarification: I believe that one interior mental processes. Neither can his acts be affected, should speak of the rights of the human person, and not becausehe is also free to determine his own moral and behav­ human rights. ior code. This should be the basis of permissivenessin demo­ This is a matter that I don't like to address, because the cratic societies. Uruguayan Armed Forces have been the object of a very Of course, the inevitable fact qf social coexistence de­ harsh and unjust campaign on this question .... But you fines a diffuse limit, which is that of respecting the same have asked the question, and I cannot avoid making some rights of others. This explains the democratic institutions, comments . Andre Malraux, in a small book in which he and their failures. Thus is bornauthQrity , which must weaken describes the horrors of thewar of '14 which he saw, writes because it knows it cannot go very far; thus is founded the the moving phrase: "God wants victory to go to those who idea of unrestricted freedom; thus is established the neutrality went to war without loving it." I can assure you that the of the state, which in reality is no s�h thing. When one says Uruguayan Armed Forces did not go to war because they thatthe state IS separated from the church, this is not in fact loved it, but in compliance with their duty and, above all, true; the state abandoned one faith and embraced another, because they loved their fatherland which was under attack. which is nothing but the freeing ofman from God, of man . . . Neither did the Armed Forces choosethe battlefieldthat constructinghis own Godfor himself, instead of God having the enemy chose. Surely it is a much nicer war when one can created man. throw a bomb from an invisible airplane at 20,000fe et, than to throw it through a window into a shelter where thousands Q: But, what doesnatural law meanin political terms? of people are burned alive. And up there, in a pressurized Bordaberry: It would be different if we thought that man cabin, one doesn't smell the burning fleshnor the screams of has beencreated by God, and is the bearer of eternalvalues the people. In such a case, it doesn't occur to anyone to say and has received the world as an inheritance, but is not the that there has been an aggression against the rights of the lord of good and evil nor the auton�ous arbiter of his own. human being, but it is a war, it is horribly equal. It doesn't Thus, he does not resort to creating a political order but to occur to anyone to be horrified by these tragedies that have guiding himself simply by natural law . I would dare say that been experienced; on the contrary, they are admired for the natural law does not constitute a political system, but rather technological display. the source of principles that should shape such a system. And by virtue of their being natural . . . these principles are Q: After the coup d'etat in Peru, Vargas Llosa said that eternal. Man will more or less respectthem according to the [Peruvian President Alberto] Fujimori was undergoing a pro­ times, but they are always there , ready to flourish. cess of "bordaberry-ization." Do you share this view? Bordaberry: I think thatit is a simplification-such a term Q: Is the Christian view compatible with an authoritarian would reflect great immodesty on my part.It is an attempt to government in which deeds of viojlence, including human unify military and civil power without the parties, around rights violations, inevitably occur? solutions of natural law . Bordaberry: It is not only compatible, but it is Christian thought itself. [Pope] Leo xm reminds us that all human Q: You have spoken of the need to rule by natural law , and society needs an authorityto guide it. To theextent that that not by liberal democracy. Can you explain this? authority is derived from arbitrariness and injustice, I have Bordaberry: Although the concept I am going to offer you already said that that is an error. On theother hand, authority might clash with liberal and agnostic Uruguayan thinking, it exercised righteously prevents injustice and defends against is necessaryto say that behind every formulation of a political arbitrariness.

EIR September 25, 1992 International 45 Pentagon, IMF target Jordan, other Arab states in arrest of Shubeilat by Joseph Brewda

On the evening of Aug. 31, corrupt elements within the flict in such a way as to trigger a Turkish-Iranian war. Jordanian government security services and military, acting . The Anglo-Americans are also encouraging Egypt to go under the orders of the U. S. Pentagon and InternationalMon­ to war with Sudan, and perhaps Libya. They arepreparing for etary Fund, detained and subsequently arrested Laith Shubei­ the occupation of Somalia, and encouraging conflictbetween lat. A leader of the Islamic bloc that controls some 30% of Saudi Arabia and Yemen. A conflict erupting between Syria Jordan's parliament, Shubeilat has been in the parliament and Turkey also cannot be excluded. since 1984 and is one of the most popular politicians in the country. Redrawing the map of the Mideast The charge against Shubeilat, for which there is no evi­ Writing in the fall issue of the New York Council on dence, is for illegal transport and possession of weapons. Foreign Relations' journal Forreign Affairs, Prof. Bernard Shubeilat remains in prison in Amman without bail and de­ Lewis, a British intelligence official detailed to the U.S. prived of the benefit of counsel. The detention and arrest, State Department, lays out the gameplan in an articleentitled which were conducted when King Hussein was out of the "Rethinking the Middle East." Gloating about the "demise of country, are part of a broader new assault not only against pan-Arabism and perhaps even ithe Arab world as a political Jordan itself, but also against the Arab and Islamic world entity" that was accomplished by the waragainst Iraq, Lewis generally. intimates that the region will now be put through a decades­ The arrest comes at a point that Washington, London, long process of "Lebanonizatioit" that will eventuallylead to and Paris are preparing a new series of crises, conflicts, and the "emergence of a new Middle East. " wars in the region. Lewis was the architect of the plan to overthrow the Shah of Iran and install Ayatollah Kbomeini into power as a way Heating up conflicts of fragmenting the region. He is currently involved in spon­ First of all, the Anglo-Americans are attempting to set soring a "neo-Ottoman" revival the stage for a possible new Arabian-Iranian war. This is the With the ambition to redraw the map of the region in a purpose of their well-publicized "no fly zone" imposed on way unseen since the aftermatn of World WarI, thepowers southern Iraq, which will have the intended effect of handing have also decided that the Hashemite Kingdom of Jordan over southern Iraq to Iran . This would bring Iran back onto must also be thoroughly destabilized and perhaps terminated. the Arabian Peninsula for the first time in centuries, and, Old plans to declare that "Jordan is Palestine," that is, to especially given the shattering of Iraqi power, situates it transform Jordan into a Palestinian state, are being dusted to foment insurrection among Shiite minorities in Kuwait, off, as are old plans to eliminate the ailing king himself. Saudia Arabia, and Bahrain. Yet even while the Anglo-Americans push war, they are The Anglo-Americans also gave Iran the go-ahead to also moving to continue to fragment the Arab world by foster­ seize the United Arab Emirates' militarily strategic Persian ing a separate Syrian-Israeli peace deal in the ongoing "peace Gulf island of Abu Musa in August. If war comes, Egyptian talks" in Washington. The troubled Bush reelection cam­ forces will also be engaged. paign hopes to score this success by October. In order to The Anglo-American powers are also attempting to pro­ clear the way for this and othett deals, any opposition within voke a Turkish-Iranian war. In early September, the Anglo­ Jordan must be eliminated. In this regard, the State Depart­ Americans encouraged Turkey to send its forces into Iran, ment's expert on Jordan, Adam Garfinkle, told EIR that the allegedly in hot pursuit of Kurdish guerrillas. Simultane­ arrest of Shubeilat was a frameup which "suggests to me that ously, the powers are manipulating the Azeri-Armenian con- the authorities are showing the flag" against any internal

46 International EIR September 25, 1992 opposition. papers have reported rumored links to Iraq. Then, the press Through the alternating process of wars , near-wars, and reported that the authorities had u�covered a secret arms separate peace deals, the Anglo-Americans hope to put the cache of six Kalashnikov rifles. region under the control of a Turkish-Saudi-Israeli political, military, and economic alignment. The Anglo-American Setting up King Hussein powers are intent on turningthe Arab labor force into a slave­ During Shubeilat's detention and arrest, the 57-year-old labor pool for this combination, as International Monetary King Hussein of Jordan was in the United States having a Fund austerity conditionalities continue to grind up the popu­ kidney removed, during which operation cancerous tissue lation in Algeria, Egypt, Jordan, and most ofthe Arab world. was also discovered. Although the s�ate of the king's health This is another reason for the arrest, as Shubeilat has rallied is the subject of conflicting rumors, the operation has been Islamic forces against the IMF's "free market" policies, on already used to prepare the population for the idea that the religious as well as economic grounds. king's 40-year-old reign will soon come to an end. To this effect, the Jordan Times published a striking A concocted case column by former London Financial Times correspondent That the detention and arrestof Shubeilat were motivated Rami Khuri on Sept. 8, suggesting that the king had to go. by extralegal considerations is evident from the facts them­ "The logic of a gradual, orderly transltion to the post-Hussein selves. era is compelling, " he wrote, warningthat otherwise the king At 10:30 p.m. on Aug. 31, Shubeilat was taken into might end up meeting the fate of th� deposed Shah of Iran, custody by agents of the state security prosecutor general's former President Jafar Numeiri of Slldan, and former Presi­ office at his home. His home was searched, as was his parlia­ dent Mohammad Siad Barre of Somalia. mentary office the following day , where various files and Simultaneous with reports of the king' s illness, Washing­ documents were seized. ton rumor-mills began circulating it1ternationally the report The pretext for Shubeilat's detention was the claim that that the king had struck a secret deal with Saudi Arabia and two detained youths had stated under interrogation the week Israel. So, on Sept. 6, the Washington Post, reporting on the before that they had borrowed Shubeilat's car on one occa­ visit to the king's hospital bed by S�udi Prince Bandar-in sion, over a year earlier, to illegally transport weapons. The the first known contact between King Hussein and the Saudi youths reportedly did not even claim that Shubeilat knew his monarchy since the Gulf war-reponed that Jordan was "on car was being used for this purpose in this alleged incident. the verge" of restoring good relatiol1s with the Saudi king­ Shubeilat's attorney, Ibrahim Bakr, continues to be denied dom. The article even claimed that �ing Hussein supported access to the youths, and continues to be denied access to his a U.S. effortto overthrow Saddam Hussein. client without the presence of security court stenographers. Then, in a Washington Post column on Sept. 10, com­ Shubeilat continues to be denied bail, despite his status in mentator Jim Hoagland claimed that �ing Hussein and Israeli the country, on the sole basis of this claim. Prime Minister Yitzhak Rabin had :struck a deal based on The youths, part of a group of 10, had been arrested the the supposed disappearance of "Arllb radicalism," that is, week earlier and charged with being members of a previously nationalism. Hoagland, who is an important State Depart­ unknown, and perhaps non-existent organization called Van­ ment mouthpiece, claimed that King Hussein was working guard of Islamic Youth (Shabab al Nafeer al Islami). At that with Rabin against the Palestine 4iberation Organization time, Parliamentarian Yacoub Qarrash, who shares an office (PLO). with Shubeilat, was also detained. Qarrash is accused of As far back as Feb. 5, 1991, the U. S. Pentagon's Defense leading the alleged organization, which was allegedly plan­ News outlined how Jordan would be cfestabilizedby a "funda­ ning to use the illegal armsagainst the state. mentalist" versus "secular" conflict following the Gulf war, As in all such frameups, the case has been accompanied which, together with other events, would enhance Israel's by wild claims in the press, ostensibly citing high-level, power in the region. Itis evident that in preparing the assassi­ always unidentified, authorities in the government. So, for nation of a head of state, in this case King Hussein, the example, the Saudi paper Al Hayah on Sept. 3 claimed that issuance of readily believed, severely discrediting reports in the arrest revealed that Shubeilat had "organizational links" the international media is a prerequ�site to give the appear­ with Iran, and that he was "gathering intelligence" on Jor­ ance that the assassination is a "sociological phenomenon." dan's relationship with Iraq, to which he was allegedly op­ The arrest of Shubeilat, the trureatened crackdown on posed. During the days prior to his arrest, Shubeilat had Islamic networks, and the like, create the potential context organized an Amman demonstration protesting the "no fly in which the Anglo-Americans and Israelis could eliminate zone" imposed on Iraq. On Sept. 6, the Swiss financial estab­ the king. Although the murder w01;lld probably be run by lishment mouthpiece Neue Zurcher Zeitung claimed that British networks within the Jordanian military , networks that Shubeilat was tied to the Syrian-based Popular Front for the date back to the days of British intelligence operative Glubb Liberation Palestine-General Command (PFLP-GC). Other Pasha, the murder would be falsely attributed to "radicals"

EIR September 25 , 1992 International 47 and "fundamentalists." The Israelis typically kill Arab fig­ ures, for example, in the PLO, using such techniques. During the summer of 1990, u.s. military strategists believed to be centered at Ft. Bragg, North Carolina, had considered various scenarios for destabilizing Jordan, with the possible option of killing the king, according to reports at the time. The purpose of destabilizing Jordan, it was said, Bush miscalculates, was to create a Jordanian puppet state jointly controlled by Syria and Israel, much as Syria and Israel control Lebanon today. this time on China by MaryM. Burdman What the State Department has to say In this context, the U.S. State Departmentgloating over the arrestof Shubeilat is particularlyrevea ling. Although the U. S. President George Bush is againdemonstrating his seem­ State Department will not comment officially on the arrest, ingly endless capability to blunder even in the one arena, Jordan desk officer Henry Inshar refers callers on the matter foreignpolicy , where he claims hiswins . His campaign ploy, to Adam Garfinkle, the former aide to former Secretary of announced Sept. 3 in Texas, to break a lO-year agreement State Alexander Haig, who is reportedly the key American with China to restrict and eventually phase out U.S. arms expert on Jordan. Callers are also referred to Syrian expert sales to Taiwan-an agreement Bush himself had helped Daniel Pipes, the son of formerReagan-Bush National Secu­ negotiate-and start selling F-16 fighters to Taiwan, could rity Council officialRichard Pip es. have effects beyond anything Washington calculates. Bush's Garfinkle, now on sabbatical at the Dayan Center for claim that the sale of thefighters was being done to ensure Strategic Studies in Tel Aviv, Israel, readily admits, chuck­ "stability" in the Pacific will hatdly wash, given how Bush ling, that the case against Shubeilat is a frameup. "Shubeilat has fostered just the opposite in the Pacific and everywhere is the most prominent Islamic politician in the country and else. has been for years," he stated. "It's hard for me to believe Bush announced that he had approved the sale of 150 that he'd be so stupid to go dealing in weapons, especially U.S. F-16 fighters, a deal worth some $4 billion. But arming in such small numbers as they mention, and give an excuse Taiwan is hardlythe issue. Not only is Bush trying to gamble for the authorities to pick him up. that saving some 6,000 jobs at General Dynamics in Texas "If the arms caches are fairly small," he explained, "it's will help his foundering campaign, he is also making a stab planted; if it's large, it's not planted, because the Interior at maintaining the Anglo-American "new world order" in the Ministry doesn't want to put that many weapons in circula­ Pacific. The subsequent announcement that Taiwan would tion." Garfinkle complained that Shubeilat is "popular in buy 60Mirage 2000-5 jet fighters from France hardly caused Iraq." Moreover, "he hates the United States, he hates the joy in Washington. IMF. He thinks it's a new formof imperialism. He despises "As long as we are the only supplier to Taiwan, then these institutions. " there's some control over things," a Bush administration According to Garfinkle, who was in Amman last spring, official said. "If thereare no controls, then anybody will sell and who referred the caller to several high-level Jordanian anything to Taiwan-the French, the Russians, anyone." A personalities whom he is in touch with, the Jordanians want week later, Taiwan press were reporting that the United peace with Israel. But his prognosis for Jordan is not good: States is pressing Taiwan to cancel its purchase of the Mi­ "It is an artificial state, and could disappear as a state." He rages. The United Daily News said that the Bush administra­ points in particular to the disastrouseconomic situation there. tion had warned that if the French also sold jets to Taiwan, Daniel Pipes, a co-worker with Garfinkleat the Foreign other Asian nations would accelerate arms purchases and Policy Institute in Philadelphia, says that the context for the anger China. State Department spokesman Richard Boucher, Shubeilat arrest is the dire situation in the country. "The asked in Washington about the French sale, said, "We think king's health is precarious," he commented recently. "The that the provision of the F-16s meets Taiwan's defense state is in jeopardy." The fundamentalists, he went on, "are needs." a major force displeased with the status quo." U. S. officials argue that the recent Chinese purchase of Robert Sandloff, of the American-Israeli Public Affairs Sukhoi-27s from Russia meansthat the Chinese-Taiwanese Committee (AIPAC, Israel's de facto Washington lobby), militarybalance has beenchanged . But the Texas announce­ and a close associate of both Pipesand Garfinkle,also focuses ment did little to ensure stability. One day later, Beijing on the economy as part of the reasonfor the frameup. "The announced that it was looking forward to buying a large IMF is one of the sacred cows there," he said, "which is off number of transport aircraft and helicopters equipped with limits to criticism." the most moderntechnology from Russia and other members

48 International EIR September 25, 1992 of the Community of Independent States (CIS) to improve The amount of goods China is targeting is roughly air defense. equivalent to the amount the United States would earn from �e sl!Je of the F- 16 fighters� The goods on China's 'Washington lied' list include nearly two-thirds of all the goods that China Beijing got also got very nasty in the diplomatic sphere. bought from the United States last year. Boeing Co. and On Sept. 4, Foreign Minister Qian Qichen said that the "U.S. McDonnell Douglas Corp.,the leading suppliers of China's government should be held accountable for any serious con­ commercial aircraft, would be the hardest hit by imposition sequences" of the F- 16 sale. Vice Foreign Minister Liu Hua­ of the Chinese tariffs. qiu summoned U.S. Ambassador J. Stapleton Roy to the The next day, China threatened that it would stop buying Foreign Ministry to lodge the "strongest protest. . . . The U. S. wheat if the F-16 sale goes through. The announcement, Chinese side is shocked and outraged by this decision and published in the official Xinhua news agency, quoted an will have no choice but to make a strong reaction. This will unnamed agricultural official that Otina had imported large lead to a major retrogression in Chinese-U.S. relations and quantities of U. S. wheat in recent years to improve relations will inevitably cause a negative impact on Chinese-U.S. co­ with Washington, aJthough China has "overflowing" grain operation in the U.N. and other organizations. " supplies itself. Now, this should stolP, the official demanded. Liu said that China would withdraw fromthe arms control China has been the largest buyer oi U.S. wheat for the past talks of the "Permanent Five" U.N. Security Council mem­ several years, and has sometimes bought as much as 10% of bers unless the United States reconsidered its F-16 deal with the U. S. wheat crop for a given yew;. Taiwan. He told Roy that "China would find it difficult for China to stay in the meeting of the five permanent members China's internal battle of the Security Council on arms control measures. " Liu called Bush is also blundering around � extremelytouchy inter­ the deal a "flagrantsabotage" of China's efforts to seek peace­ nal situation, in China, the only natfon where he ever spent ful reunification with Taiwan. even � fe": . ,months out,side the United States. His great On Sept. 5, the officialnews agency Xinhua stated: "The "friend forever," Deng Xiaoping, can hardly welcome this Bush administrationhas fabricated various excuses and lies grab for votes in Texas. trying to justify its arms sale decision, which is seriously Beijing is preparingfor its 14th PartyCongress sometime . jeopardizing Chinese-U.S. relations." late this year. Such Communist P� congresses are held U.S. Assistant Secretary of State William Clark, Jr. got only every fiveyears, which makesthis one critical. Behind a cold reception when he arrived in Beijing to explain things. the scenes, China is still ruled by: the last bastion of the Vice Foreign Minister Liu told Clark that China would not "Gang of Ancients," men in their Illte eighties who led the accept the United States' "unjustifiable explanation" of its communist revolution, but there is ltittle chance any of them decision, and threatened that the United States must reverse will. still be ali:ve for the next PartyCong ress. The question the decision to sell 150 F-16s to Taiwan, or there would be of how the Communist Party is goi�g to maintain its grip on a "major setback in bilateral relations." The officialPeo ple's China-the only real issue in the "reformers versus hardlin­ Daily published a front-page statement coinciding with ers" factional battles-must be fougJtt out now. Clark's visit, calling the move a demonstration of U. S. "he­ At this moment, Bush's desperate electoral move "has gemonism" aimed at making Taiwan an impregnable for­ stabbed in the back Deng Xiaoping, his 'old friend tress. "The goal of this action is to make Taiwan an unsink­ forever, ' " wrote China analyst Jonathan Mirsky in the Lon­ able aircraft carrier and keep Taiwan separated from China don Observer on Sept. 6., Deng has not so much "lost face" forever," the statementsaid. as had it "tom offin public," Mirsq wrote. "The President may have miscalculated thedamage the F- 16 sales will doto Trade war threatened Deng-and there may be unpleas�t surprises." The left Trade war is also threatening. Beijing said it would put wing of the "Gang of Ancients" blames Deng for surren­ punitive tariffs on $4 billion worth of imports fromthe United deriJ)g Chinese independence to the West. Bush's betrayal States if Washington goes ahead with sanctions on Chinese corroborates their view. exports to the United States on Sept. 9. A Xinhua release The Bush administration is reportedly confident that it said that Chinese officials were already drawing up a list has convinced Beijing that Bush is a better deal for China of goods that include aircraft and computers if Washington than his Democratic opponent, Ar�sas Gov. Bill Clinton. imposes punitive duties on Chinese exports such as silk, But now they should not be so confident. It will be more electronics, and other products. In August, U.S. Trade Rep­ difficultin the future to secure Chinese concessions on human resentative Carla Hills published a 44-page list-the largest rights, trade barriers, and so forth. Worse, Beijing may block ever published-ofChinese imports which could be subject­ purchases of Boeing and McDonnql Douglas airliners and ed to a doubling of tariffs if China does not significantly open U.S. wheat, thus losing the United States morejo bs than the its markets to U.S. goods by Oct. 10. 6,000 preserved (for the moment) in Texas.

EIR September 25, 1992 International 49 before making his official summer visit to the Queen at her Scottish retreat in Balmoral Sept. 12-13. Major is under pres­ British crisis has sure to demand of the Queen that some of the lesser young royals be dropped from the public expenditures, and that she the monarchy at bay might even pay taxes on her private fortune. 'Time to call a halt'? by MaryMcC ourt Burdman Things have gone so far that theDaily Telegraph published an editorial Sept. 12 to disclaim Ii commentary it had printed All is not well with the House of Windsor, Britain's royal two weeks earlier calling for the Queen to abdicate to make family. Scandals hit the family all summer, but even the way for Prince Charles. In the editorial,titled 'The Monarchy antics of the Duchess of York, Sarah Ferguson, or the frozen at Bay: Time to Call a Halt," the Tr legraph wrote: "The Queen, marriage of the Prince and Princess of Wales would have today , represents the besthope forthe stability of the crown," counted for little more than soap opera a few years ago. But anddemanded that thetabloid press stop hounding theroyals . now, Britain is plunging into a crisis worse than that of the "It would be tragic if this sumnter's events were allowed to 1930s, and all institutions are being shaken by the chaos. It result in lasting damage to the monarchy." is no coincidence that the last great crisis of the British crown, Politicians from the three main partiesin Britain, includ­ ending in the abdication of Edward VIII, later the Duke of ing the Tories, are calling for urgent action to prevent the Windsor, happened in 1936. monarchy from falling even lower in public esteem. Tory Britons by the millions are losing jobs and homes. The MP Michael Colvin wrote to Major calling for"revolutionary Tory government is destroying by the day what remains of changes" in the way the royal family is treated. The scandals the British economy. But Britain cannot sustain this for long. surrounding the Queen's children have "degraded the royal The chancellor of the exchequer may go; Prime Minister John family," Colvin said. Major may go. The highest levels of the British oligarchy are MP Michael Ancram, himself an aristocrat, called for not immune. limiting the public payments to :the royals, and warned that The British crown is being hit on two fronts: financial and a constitutional crisis was fast al'proaching. Harold Brooks­ constitutional. Both are essential to its survival as one of the Baker, director of Burke's Peerage, the aristocracy's Who's most influential institutions in the world. The possibility that Who, said that "if the royal fllIDily doesn't change many the marriage of the Prince and Princess of Wales could end in aspects of its style, it will siinply disappear, like its relations divorce could shakethe throne . The issue is not "family values." did across the continent." Charles is not only heir to the throne but also will be head of The House of Windsor is one of the world's wealthiest the established Church of England; the days when a monarch operations. As British author Philip Hall describes in his could dispose of wives with impunity, as Henry vm did, are book Royal Fortune: Tax,'Money and the Monarchy, pub­ long gone. It is already being proposed that Charles abdicate lished this year by London's Bloomsbury press, the modem the throne in favor of his son, Prince William. monarchy only gained its wealth since the last century. It did Just as important are the calls to disestablish the church. this by looting the British Empire and hoarding the public A majority of British Members of Parliamentpolled in July, fu nds expended on its upkeep. The Queen invests the "pri­ before the latest round of royal scandals, said they thought vate" fortune acquired in this way, which Hall estimates at that church and state should be separated, the London Times £340 million but Fortune maga�ne puts at a whopping $11.7 reported Sept. 5. This would end the Queen's most important billion, free of taxation. This is,new: The monarchy paid all constitutional position, as supreme governor of the Church taxes until 1910, and there is no "constitutional" basis for its of England. The laws of the established church are the laws not paying taxes now . of Britain, and it is the monarchy, through its prime minister, Yet the royals cost Britain at least £70-80 million a year. which nominates the bishops for the church. If the church All estates, yachts, and so fonth are maintained at public were to be disestablished, "I cannot see how there would be expense. In addition, the Quedn and most members of her any role left for the monarch. The two go together," stated extended family are paid by the British taxpayers according one church lawyer. to a Civil List which nominally goes to cover expenses of It was the evil Lord Louis Mountbatten, the uncle of meeting public duties. This amounts to close to £10 million Prince Philip, who created the "modem monarchy," which a year. In 1990, a 10-year deal was reached so that the annual cultivates its own celebrity with the British people. This was scandal about increasing the Civil List for the likes of Prince the only way, Mountbatten thought,that the monarchycould Edward or Princess Margaret would be avoided. The deal survive. But the plan is not working. cannot be revoked by Parliament; in addition, Parliament has In early September, Major felt compelled to state that no right to scrutinize any expenditures, a situation beginning the monarchy is "entrenched and enduring, and valuable," to provoke an outcry.

50 International EIR September 25, 1992 AustraliaDo ssier by Don Ve itch

Imperial myths collapsing slowly I now arguing tha. the Queen has be- Australians have been nurtured on a diet of British myths, but trayed her Coronation Oath and has not defended the eople. Petitions go now some truths are emerging. p unanswered and the monarch, with all her power, wealth, and influence, fails to give hope to a long-suffering people. However, both major political parties are pro-British. The Australian Although founded as a penal colony warned, if we no longer had a mon­ Labor Party (ALP) is modeled directly in 1788 and despite having had 60 ,000 arch, "the next logical target for vio­ on the philosophy of the British Fabi­ butchered in England's war (1914- lence would be each other. " an Society. Its m9st successful prime 18), Australians generally believe that Further support for the Queen has minister, Bob Hawke, is a former the common law, Westminster sys­ come from the Australian Left Re­ Rhodes Scholar. The Liberal Party is . tem, and stability of the monarchy , view, controlled by the Aarons family overtly pro-BritisJt. Both parties sup­ make up for it all. They ignore the real of the former Communist Party . The port the British East India Company British heritage of the Opium Wars magazine reported favorably on the economics of Ad$IIl Smith. against China, slave trading in the In­ Queen's reign and promoted her as a The British agents in Australia can dies, forced child labor in those "sa­ symbol of unity. be ruthless in eliqJ.inating opponents. tanic mills," and the destruction The symbols of feudal monarchy In 1932, a state premier, Jack Lang, which British liberal political econo­ and the British system saturate Aus­ was sacked by the royalty appointed my nurtures to this day . tralia. The Queen's profile appears on governor, Sir Philip Game, for oppos­ Australia was "discovered" by the all coins; elite private schools are ing bank austerit)f measures. In 1975, Dutch and the Portugeuse in the 17th modeled on English schools; immi­ the Labor prime tninister was sacked century, but the British were the first grants and Army personnel swear an by the Queen's, governor general, to land and takepossession , establish­ oath of allegiance to the English mon­ John Kerr for, inter alia, turningfrom ing the continent as a huge penal colo­ arch; the royal Coat of Arms appears British finance ,and seeking Arab ny in 1788. in courts, parliament, and most public funds for devel<1>ment. The largest Apart from a brief skirmish at Eu­ offices. Royalty is the symbol of re­ portion of foreign,investment and con­ reka, the colonials have been willing­ spect and virtue in Australia. trol in Australia �mains British. ly subjugated for the last 200 years. Recent prime time television in The noble p�triotic traditions of The Colonial Acts Application Act Australia has been awash with pro­ leaders such as O'Malley Scullin, (186Os), federation (1901), the Stat­ royalist documentaries. One of these, Theodore, and Lang, people who ute of Westminster (1930s), and abo­ "Elizabeth R," mentioned that the fought the British banks, has given lition of appeals to the Privy Council Queen of England had a direct input way to the oppoJttunistic attitudes of (1970s) have given the appearance of to Operation Desert Storm, and that the contempol"lll] Hawke and current independence, if not the substance. the sovereign concerned herself with Prime Minister Paul Keating. But the "British faction" still dom­ minute details of government, includ­ Australia, uncjler Foreign Minister inates Australia. Elizabeth II, Queen ing the appointment of officials to Gareth Evans, who claims the evil Sir of England, is also the Queen of Aus­ schools in Scotland. Bertrand Russell �s the greatest intel­ tralia and is Australia's constitutional But where the royalty is con­ lectual influencec1m him, has support­ head of state. cerned, the political landscape is ed all initiatives qf the Anglo-Ameri­ A recent editionof Kerry Packer's slowly changing. The removal of Car­ can "new world order. " Both the Bulletin promoted the idea of "our oline Chisolm (about to be canonized Labor and Liber� parties support In­ Queen" as a "symbol of unity." The by the Catholic Church), from the $5 ternational Mon$lry Fund demands argument advanced was that Australia note in favor of the Queen's profile, for austerity, bal�ced budgets, sell­ is "increasingly fragmenting into mi­ led to something of a public outcry ing of state asset!!, the "free market," nority and ethnic groupings," with the (although the Queen's supporters in and the inadvis$ility of promoting monarchy being the glue that holds the Reserve Bank won out) . national credit and infrastructure de­ Australia together. The author Many formerly loyal subjects are velopment.

EIR September 25, 1992 International 51 Middle East File by Joseph Brewda

Iraq issues appeal on 'no fly' zone the Palestinian problem testify to this The Iraqi Arab Ba' ath Socialist Partywarns that the western fact. "The ABSP, which maintains powers are plotting to partition the country. friendly ties with European ruling par­ ties and those in the opposition, takes this opportunity to warn against the drastic repercussions of any action leading to dismembering Iraq, for such actions can easily lead to greater On Aug. 27 , the ruling Iraqi Arab ish, and French threats against Iraq , instability and tensions in our region, Ba'ath Socialist Party external rela­ and their attempts to interfere in Iraq's thus negatively affecting the ties of tions bureau , headed by Abdul Ghani internal affairs through actions taken cooperation and coordination between Abdul Ghafour, issued an internation­ by them denying Iraq the right to fly Europe and the Arab world. al statement on the ongoing Anglo­ over its southernterritor ies. "Objective constructive dialogues American and French threats against "The involvement of Washington , among concerned parties are the sur­ Iraq . London, and Paris in this conspiracy est way to ensure the resolving of ex­ The context for the statement is the is a returnto the old colonialist schem­ isting conflicts. Hegemony and domi­ imposition by the threepowers of a "no ing of divide and rule, for these three nation should be abandoned. As such, fly" zoneover southernIraq. This time, circles are planning to partition Iraq we call upon you to exert utmost ef­ thepowers did not even attempt to give on a racial and sectarian basis. In a forts to put �n end to any attempt lead­ the action a fa�ade of legality by en­ nutshell, the objective of the U.S.A., ing to intellVention in Iraq's internal acting some new Security Council reso­ Britain, and France is to ensure the affairs , under any pretext or excuse. lution justifyingthe action. Showing its division of Iraq into sectarian and ra­ We, in Iraq, since the July, 17-30, nature as a mere imperial instrument, cial entities. 1968 Revo]ution, have been pursuing U.N. Secretary General Boutros Bou­ "Iraq's foreign policy has long a policy that best serves the interests tros-Ghali even said that such a resolu­ been based on the principles of equita­ of the people without any kind of dis­ tion was not necessary. ble respect of people's rights and crimination. Peoples' rights are fully The pretext for the "no fly" zone choices, non-interference in the inter­ protected and preserved. We are de­ is alleged Iraqi repression of the Shiite nal affairs of others, and respect of termined to expand our democratic population in the south, a religious mi­ sovereignty, independence, and terri­ experiment, utilizing all potentialities nority in the country overall but a ma­ torial integrity of other nations. The in this direction, through thenew con­ jority in that region. The absurdity of resumption of Arab-European dia­ stitution, mUlti-party system, freedom the powers' claim is shown by the fact logue in Paris, in 1989, was viewed of the press, etc., despite the prevail­ that the main problem facing the Shi­ by Iraq and the Arabs as a step forward ing of extraordinary circumstances ites is the murderous embargo on Iraq, in the direction of enhancing relations imposed on us by external forces. now entering its second year. between theArab Nation and Europe, "Our people are unified under the One purposeof the "no fly"policy on these bases. wise leadership of H.E. President is to hand over southern Iraq to Iran, "Drastic and fast changes in the Saddam Hussein. They are deter­ just as the powers move to hand over Soviet Union and the Socialist bloc mined to sacrifice their lives for their northern Iraq to Turkey. But this is have made the U.S.A. the dominant independence, sovereignty, and terri­ not the ultimate objective, which is to force over the world. France and Brit­ torial integrity. We are determined spark a new Arab-Iranian war and a ain soon became subordinate to U. S. also to foi1 any forthcoming plans to Turkish-Iranian war, which such a di­ policies and schemes. The principles partition Iraq into sectarian and racial vision of Iraq would cause. of independence so long cherished by entities. The statement follows: Britain and France have been drasti­ "It is indeed ironic that while Eu­ "The Foreign Relations Bureau of cally weakened accordingly. The role rope is witnessing efforts to ensure its the Regional Command of the Arab of the European Community in resolv­ unity, U.S:A., Britain, and France are Ba'ath Socialist Party (ABSP) pres­ ing regional and international con­ working in the direction of disuniting ents its compliments to you and wish­ flicts was also weakened. The war other nations. Is this fair and jus-. es to draw your attention to U . S . , Brit- against Iraq and the failure to resolve tified?"

52 International EIR September 25, 1992 Dateline Mexico by Hugo L6pez Ochoa

Shining Path is on the march fused to address the question of who As the guerrilla group's networks expand in Mexico, the issues visas to �se Shining Path sup­ porters and wh they have not been question is: Who is protecting them inside the government? )f expelled from ilie country, in a mini­ mal act of solidarity with the Army, the government� and the people of Peru, the principal victims of Shining Recent events in Mexico City have tation (CLETA) , a counterculture Path's crimes. shed light on a well-organized ma­ group that comes out of the ranks of This terrori&t network has now chine connected to the criminal narco­ the old Communist Party (today inte­ gone into action, in earnest. On Aug. terrorist movement Shining Path, grated into the PRO party of Cuauh­ 18, the MPI served an agent provoca­ which acts not only as a propaganda temoc Cardenas) and dedicated to re­ teur role in triggering government vio­ and logistical support network for the cruiting radical students; the National lence against a �eaceful gathering of Peruvian insurgency, but which is Association of Democratic Lawyers; various worker, peasant, and student preparing to begin irregular warfare the National Front of Democratic organizations in 'the Z6calo, the main actions inside Mexico. Lawyers; communist artists such as square in Mexic6 City. The MPI's ac­ The nucleus of this Shining Path Jose de Molina; professors from tion consisted of organizing four si­ machine in Mexico published a leaflet UNAM university, the Autonomous multaneous de�nstrations in differ­ on Aug. 27 supporting the Peruvian University of Puebla, the National ent parts of Me,"ico City, to distract Shining Path , and condemning the Polytechnic Institute, and the Peda­ the anti-riot police. Columnist Carlos military takeover by the Peruvian gogical University; students; the Ramirez of El Financiero observed Army of the Canto Grande prison on School of Popular Culture; martyrs that the four dem.onstrations were co­ May 9 of this year. That prison had from 1968; and ex-guerrillas such as ordinated with professionalism, by been converted into a Shining Path Fausto Trejo, a psychologist and col­ means of radio s),stems, and with new headquarters in which the prisoners umnist for EI Dfa newspaper. Another irregular warfare tactics, such as the did whatever they wanted, and issued signatory was, of course, the Commit­ use of Route 1 do buses to penetrate orders to their comrades outside. tee of Support for People's War in the circle of soldiers and to break Among the signers of the leaflet Peru, the leading Shining Path front through to the presidential residence was the Independent Proletarian group in Mexico. at Los Pinos, w;here they were only Movement (MPI), which controls the Resumen Ejecutivo, EIR's Span­ stopped by soldi�rs ready and willing drivers' union of Route 100, the gi­ ish-language publication, has de­ to fire. gantic urban bus line owned by the nounced the presence of Peruvian The MPI did not succeed in its ob­ Department of the Federal District in Shining Path supporters in Mexico jective of controlling those in the Z6- Mexico City. Thanks to its control of City and other parts of the country, calo, but the result of their actions left the bus line, the MPI, directed by assigned to proselytizing and propa­ 33 soldiers and ' 27 members of the Gabino Camacho Barreda and Ricar­ ganda, and warned the Mexican gov­ MPI wounded. In the confrontation, do Barco L6pez, also controls some ernment that the existenceof this ter­ police vehicles were burned. of Mexico City's poorer suburbs. rorist network could mark the A group of pensioners from the The MPI also controls Section 9 beginning of a terrorist escalation in Route 1 00 unio� has charged that the of the National Union of Education the country . MPI finances itself through the diver­ Workers (SNTE) , whose director, On May 9, Shining Path gave its sion of 25 billion pesosin union dues. In Lilia Guzman, signed the Shining first signal that it was ready to begin response to that accusation, the MPI's Path leaflet, together with Section 36 actions, leaving a hanged dog on the legal adviserBardo L6pez admitted that of the SNTE in Mexico state. In Feb­ doorstep of the Peruvian embassy in among the MPrs properties are two ruary of this year, Shining Path held Mexico City, an action that was dis­ country houses, qne in Izucar de Mata­ conferences to spout propaganda on creetly published in the national press. moros, Puebla, �d the other in Tecpan its "People's War" in the auditorium A hanged dog is a signal Shining Path de Galeana. It is noteworthy that both I of SNTE's Section 9. uses when it is going to assassinate places are in the qlountains, the latter in Also signing were the Free Center someone. an area dominan;d by drug traffickers for Theatrical and Artistic Experimen- The Mexican authorities have re- and ex-guerrillas.

EIR September 25, 1992 International 53 InternationalIntel ligence

Grachev. even those who consider satanism a valid Morocco's Hassan warns The civil war in Tajikistan, according to practice." He adds that full rights should be We st on Iraq policy Russian TV reports as of Sept. 5, has given to "parapsychology, esoteric practic­ claimed 2,000 killed and 100,000 refugees. es, magic , and satanism." On Sept. 7, Taj ikistan President Rakh­ Cuellar admits "that human sacrifices Moroccan King Hassan warned that escala­ man Nabiyev resigned. BBC reported that tion of westernmilitary pressure on Iraq was and sexual practices are very much in vogue it is likely that Tajikistan will now split into in satanic rites, which are constantly in­ counter-productive and "risks turning this various "warring regions," especially with creasing in number," but this should not be exclusion zone into an explosion zone that the more pro-Islamic south being pitted of concern since these practices are in any in the long run will be harmfulto the interest against the more pro-Nabiyev north . case prohibi ed, he says. of the We st and the Arab world," in an inter­ t Ye ltsin's decree mandates the Russian view in the Sept. 7 International Herald government to "enter into negotiations with Tr ibune. the new leadership" in Tajikistan, referring Although Hassan's remarks reflect the Include eastern Europe, to the combination of governmentand oppo­ sentiment throughout the Arab world, he is sition forces that had just staged a coup over­ says Presidentof Italy the first very pro-western Arab leader to throwing President Nabiyev. The Russian make such a public statement. Defense Ministry was instructed to secure "Europe is a whole, including eastern Eu­ Hassan said that a continued effort to cut the Tajikistan-Afghanistan border, to defend rope ," stated Italian President Oscar Luigi off links between northernand southernIraq all military installations in the republic, to Scalfaro in early September, announcing a "will divide not only the rich from the poor "prevent at all costs" the theft of arms, but, theme of his meeting with Spanish King but worsen a religious split between Sunnis reflecting the depth of the "Afghanistan syn­ Juan Carlos. The statement is a rebuff to and Shiites . . . and later we will find it very drome" in the Russian military, "not to get the Maastricht Treaty for European Union difficult to glue that mosaic back together." involved" in any "internal conflicts," in­ which would exclude eastern Europe . Hassan pointed out that such a split would cluding "inter-ethnic" ones. The one partial "Europe," Scalfaro said, "is not a series threaten Thrkey and Saudi Arabia and lead exception to this rule is to provide safe con­ of agreements. Europe is feeling the will to chaos in the region. Hassan also said that duct for the hundreds of thousands of Rus­ of being part of a community .... In this it was important to distinguish between Sad­ sians and ethnic Germans who are expected moment [Europe] is moldy on all sides. We dam Hussein and the Iraqi people who, he to flee once the civil war spreads to the main have all ea�tern Europe which is Europe . emphasized, "should not have to pay the urban centers. But who is facing the political and human bill" for his misdeeds. theme of th¢ dissolution of the greatest em­ Meanwhile, aftertwo days of ministerial pire that has ever been in this Europe? If old talks, Gulf Arab states failed to persuade Europe closes itself, it is not only old, it is Egypt and Syria to endorse the no-fly zone Legalized satanism past history. Europe is a whole, including which the United States, Britain, and France eastern Europe ." have imposed in southern Iraq , Reuters proposed in Colombia Observers remarked that the President's quoted Gulf diplomats as saying Sept. 11. statement is very similar to the position ex­ Sen. Parmenio Cuellar, a member of the pressed by Roberto Formigoni, the leader of Liberal Party of President Cesar Gaviria, Communion and Liberation. During a press Civil war worsens has introduced a bill that would legalize sa­ conference at the end of the Meeting '92 in tanic practices in Colombia, under the guise Rimini, I�ly on Aug. 28, Formigoni in Tajikistan of protecting "religious freedom." The stressed that when the MaastrichtTr eaty was move comes as the Colombian government originally cijscussedthere was still an "east­ A declaration issued Sept. 4 by the Presi­ is renegotiating a treaty with the Vatican , ern Europe�" But after the collapse of the dents of Russia, Kazakhstan, Kyrgyzstan, and efforts are being made to eliminate Soviet empire, the integration of all of Eu­ and Uzbekistan, which announced that a obligatory religious instruction in the rope must bediscussed to fully include these military force from these members of the schools. The move is part of a continent­ countries. Community of Independent States (CIS) wide assault on traditional cultural values, would be sent to restore order in Tajikistan, as seen also in the B'nai B'rith demand in was overturned by Russian President Boris Argentina that no religious instruction be LaRouche role in Poland Ye ltsin on Sept. 9. Following the same Rus­ included in a new education law being dis­ sian Security Council meeting that forced cussed in the Argentine Congress. comes under attack him to cancel his trip to Japan, Ye ltsin issued Senator Cuellar makes the pro-satanic a decree placing all CIS troops in Tajikistan, aim of the bill explicit, by stating in the The role of the international political move­ and those to arrive, under Russian authority, preamble that freedom "should not be only ment associated with Lyndon LaRouche, and specifically under the direct command for those who worship God, but respect is which is collaborating with the resistance of Russian Defense Minister Gen. Pavel also due to those who claim to be atheists or in Poland to International Monetary Fund

54 International EIR September 25, 1992 • THE ITALlAN Catholic Church said Sept. 8 it will provide $9.4 mil­ lion in aid for Somalia. "The inten­ tion is to aid relief work but also to promote deveropmentpro jects which policies , has recently come under attack . China sent its oil-prospecting and -drilling arebeing startedup by local religious Polish farmers , workers , and miners have ships on a drilling operation in an area of and non-gowrnrnental organiza­ beenconducting strikes against IMF austeri­ Vietnam's territorial waters" in the Gulf of tions," the Italian Bishops Confer­ ty and threatened shutdowns of productive To nkin, state-run Radio Hanoi said. "It also ence said. enterprises. banned operations of other ships within the Defending the IMF, the German daily radius of 1,000and 1,500 meters ." The clos­ • RUSSIAN PRESIDENT Boris Ta geszeitung slandered LaRouche's inter­ est point of the planned field of operations Yeltsin told Sputh Korean President vention on Sept. 8, including a repeat of the is only 80 miles from the Vietnamese port Roh Tae WooiSept. 10 that he would charge that his associates were investigated of Ba Lat. ''The area also lies right on the visit Seoul by the end of the year, in 1986 for possible involvement in the as­ internal and international sea lane between Reuters reported. Seoul officials said sassination of Swedish Prime Minister Olof Haiphong and Quang Ninh. This contra­ Yeltsin promiised his government Palme-acharge recently exposed as being venes the proposal put forward by China on would hand over newly discovered the work of the former East German secret Jan . 18, 1974 that, pending the delineation information on the 1983 downing of police. of the sea border between the two countries, Korean Air Lines Flight 007. The paper recounted the meetings of the two sides shall temporarily refrain from Helga Zepp-LaRouche , the founder of the prospecting in the area." • TAIWAN and Russia agreed to Schiller Institute, with Father Henryk Jan­ The radio report said that the Vietnam­ exchangepernlanent missions on Sept. kowski in Gdansk, that she gave a presenta­ ese Foreign Ministry sent a note to the Chi­ 8, the Internati'pnalHeraldTribune re­ tion at the Gdansk shipyard last autumn nese ambassador in Hanoi "expressing its ported. The offices will be technically which was well-attended by representatives concerns over these activities on Vietnam's private, since the countries donot have of industrial firms , and that the Schiller In­ continental shelf' and "demanding China diplomatic relations, but personnel stitute has made inroads with the farmers' immediately withdraw all its deployed will have diplcfnatic privileges and be ships." self-defense organization Samoobrona. able to issue vikas. The paper reported that Poland's secret Chinese Vice ForeignMinister Xu Dun­ policehas beenput on the case of the Schil­ xin is to visit Hanoi later in September to • IRANIAN President Hashemi discuss disputed borders between the two ler Institute organizers in the country. Mem­ Rafsanjani arrived in Beijing for a four­ bersof the governrnent, the parties, and oth­ countries. Radio Hanoi said the Chinese ac­ day visit on Se�t. 9, the London Finan­ er official institutions have been warned to tions "do not createfavorable conditions for cial Times repdrted. He was accompa­ the forthcoming talks." stay away fromthe LaRouche organization, nied by Iranian Defense Minister Akb­ it reported. arTorkan, who will meetwith Chinese On Sept. 8, Polish national TV carried Defense Minisker Qin Jiwei. China is a slander against LaRouche in its prime-time Italian mafiaprofits supplying Iran. with nuclear weapons program. According to viewer reports , the technology, and both nations assert contents seem to be borrowed straight from from Somalia crisis that the techno�ogy is only suitable for NBC in the United States and Anti-Defama­ peacefulpurpoSes . tion League-authored slanders against Somalia, once an Italian colony and now LaRouche . a land without governrnent or police and • SOUTH �OREAN President Zy cie Wa rszawy, the second largest for­ devastated by farnine , is being used by Ital­ Roh Tae Woo1will visit China at the mer communist news daily in Poland, which ian mafia-linked organizations in order to invitation of President Yang Shang­ turned "democratic" after1989 , also carried make "big money" by dumping up to 1 mil­ kun, the BBC'reported Sept. 7. Roh an article against the LaRouche movement's lion tons of toxic waste which has been will visit Beijing for four days at the work in the country. shipped to Somalia, director of the U.N. end of September to discuss further Environment Program Mostafa To lba said expansion of South Korean-Chinese in an interview with the Kenyan newspaper trade, and North Korea. Vietnam demands China Sunday Nation. The situation is so bad, he said, that the Somali population is now not • CASES OF TYPHUS have been withdraw from territory only at risk of dying of farnine, but also of reportedin Bosnia, where more than toxic waste. 60 people hav� been killed each day Vietnam charged that China has begun dril­ Millions of dollars for these shipments since the fighting began more than ling for oil in Vietnamese waters , and has fromItaly to Somalia are involved, said Tol­ five months ago, Reuters reported demanded that Beijing "immediately with­ ba, who did not want to give any names to Sept. 12. The medical crisis center draw" its vessels fromthe area, officialViet­ the press. "Some co-workers of mine fear appealed to jpurnalists to tell the namese media reported Sept. 5, according already for their lives ....These people world of Sarajevo's urgent need for to UPI. make incredible amounts of profit, and they medical supplres. "In mid-August and early September, can kill anybody who tries to stop them."

EIR September 25 , 1992 International 55 • �TIillNational

IMFmov es to seize control over United States economy

by Kathleen Klenetsky

The International Monetary Fund (IMF) has declared full­ called on the United States to institute a mix of revenue scale war on the U.S., demanding that it submit to the same increases and spending cuts totaling between $240 and $300 "structural adjustment" and "conditionalities" policies billion. The U. S. deficit shouldbe cut by "not less than" 4% through which it has succeeded in destroying almost the en­ of the Gross Domestic Product, "and possibly 5 would do tirety of the developing sector. well-and it should be done at !\Ill early point." Each percent In a highly unusual step, the IMF's executive board, of GDP cut translates into appro�imately $60 billion. meeting in Washington Sept. 9 to prepare for the Fund's The official specified the following measures to achieve annual conference, publicly criticized the U.S. for failing to these cuts: bring the . federal budget deficitunder control, and demanded • A carbon tax, i.e., a levy on all fossil fuels, such as that it immediately enact a combination of draconian tax oil, natural gas, gasoline, etc. This, according to the IMF, increases and spending cuts. would "assure, at one and the same time, important resources IMF Managing Director Michel Camdessus used what for the American Treasury and a better ecological equilibri­ media outlets in Europe and the United States uniformly um in the U.S." described as extraordinarily blunt language vis-a-vis the • A national sales tax (or value-added tax) of 5%, to be United States. Until now, the IMF has reserved this dictatori­ applied to virtually all goods and services. al treatment for Third World countries-which is precisely • Various cuts in social spending. what the U.S. is rapidly becoming in economic terms-the The IMF official insisted that the U.S. should achieve Bush administration's military adventures in the Persian Gulf these cuts as rapidly as possible, complaining that the U.S. and elsewhere notwithstanding. had "missed the occasion at the end of the 1980s" to control The IMF's unprecedented move culminates a years-long its deficit. As a result, he said, "amajor effortat stabilization is effort by the Fund to extend its notorious "surveillance" ac­ required and I hope it will be launched at the firstopportunity ." tivities to the industrializedworld. At its Interim Committee The same official also insisted that the U. S. stop any meeting in April 1985, the IMF-with the full acquiescence further cuts in interest rates-despite the fact that the Bush of James Baker (then U.S. treasury secretary, now White administration wants to lower them at least once more before House chief of staff-declared it planned to focus more on the national elections. the economies of the United States and western Europe. This has now come to pass-and unless there is concerted 'Severe' recommendations resistance on the partof the U. S. political leaders and popula­ The IMF also castigated thb United States in its annual tion, the U.S. will soon get a taste of the living hell which report for 1992, issued in mid-September, which stresses the IMF has imposed on much of Africa, Ibero-America, "the importance of fully exploitIng the window of opportuni­ Asia, and now easternEurope and the former Soviet Union. ty immediately after the elections" this November for rapidly Senior IMF officialsminced no words in telling the U.S. implementing its austerity measures. what to do. At a press briefing Sept. 11, a senior IMF official "The severity of the IMF l1ecommendations shows that

56 National EIR September 25, 1992 the patience of the community vis-a-vis the American budg­ "American renewal program," complete with another pledge etary recklessness is wearing thin," commented the Sept. 12 not to increase taxes and to keep interest rates down, the issue of the French national daily Le Figaro. IMF's actions constituted a kick in the President's teeth­ What those conditionalities would mean for Americans and his Treasury Department, headed by the President's was laid out in detail last April by Michaele Mussa, who long-time ally Treasury SecretaryNicholas Brady responded heads the IMF's Research Department. Mussa told a Wash­ accordingly. ington press conference it was imperative the U.S. slash "The United States realizes the importance of reducing Social Security, Medicare , and other "entitlement" pro­ the budget deficit, but an increase in taxes would be counter­ grams . "I think there is an increasing recognition of the im­ productive and damaging both to growth and deficitreduction portance of controlling the growth of spending in entitlement efforts ," said a leading Treasury Departmentofficial . Anoth­ programs. That has not yet translatedinto effective budgetary er U.S. official called it "dumb" for the IMF to insist that its action. This is the single most important area for budgetary austerity recommendations be implemented rapidly, given action in the United States, to gain much better control over the weak state of the U.S. economy. I the growth of spending in the entitlements area." "With its rebuff, the United States administration has, It's hardlysurprising that the IMP has zeroed in on entitle­ in effect, joined the anti-IMF resistance," commented the ments. As the fastest-growing part of the U.S. budget, enti­ LaRouche-Bevel campaign in its Sept. 13 statement. A cam­ tlements , and especially Medicare and Social Security, have paign spokesman said that if the U. S. says "no" to IMP become the target of choice for those economic incompe­ austerity demands, then Poland, Russia and other countries tents, who, along with the IMP, insist that budget-cutting (as would be free to say "no" as well. opposed to a high-technology-vectored industrial and ag­ ricultural growth program) is the only way to achieve sol­ What happens next? vency. It remains to be seen whether the Bush administration Less than a week after the IMP issued its demands, a continues to reject the IMF's recommendations. Bush him­ group was formed in the U.S. to campaign for a remarkably self has shown no qualms about cutting entitlements or rai­ similar program. Founded by former Democratic presidential sing taxes; his only consideration appears to be political. candidate Paul Tsongas, Sen. Warren Rudman (R-N .H.) and He and Bill Clinton are both firm supporters of the IMF, Wall Street investment banker Peter Peterson, the Concord evidenced most recently in their support for a multibillion­ Coalition is calling for gasoline and other taxes, together dollar increase in the U.S. contributic(lnto the Fund. with a concerted assault on entitlement programs. The group Clinton has already vowed all-Qut war on health care has an informal working relationship with on-again, off­ costs-a euphemism for gouging health care spending-as again presidential candidate H. Ross Perot, who has recently well as "an end to welfare as we know it," policies completely issued an economic program along similar lines. congruent with the IMF. Furthemore, rumorsare circulating that he may pick Paul Volcker as his Treasury Secretary. Fight is on During his tenure as Fed chairman underCarter and Reagan, Although it's frightening that the IMP obviously thinks Volcker, a proponent of IMP austerity, personally destroyed the United States and its political elite are so weak that it can the U . S. industrialand agricultural basewith his 21% interest ride roughshod over U.S. sovereignty, the Fund may have rates; he currently sits on the board of the Bretton Woods overreached itself, setting the stage for an anti-IMP resis­ Committee, an organization established specificallyto lobby tance that could quickly become a global battle for economic the U.S. Congress and people on behialfof the IMP. justice and development. Clinton's campaign has refused to respond to repeated The IMP's demands drew an immediate reaction from phone calls from LaRouche associates, asking for his posi­ independent presidential candidate Lyndon LaRouche, a tion on the IMF's diktat. And Jim Ciccone, senior issues long-time foe of the IMP, and his vice-presidential running adviser to the Bush-Quayle campaign, said the campaign mate , Rev . James Bevel. In a campaign statement issued would have no comment on the issue, Sept. 13, the two called on other U.S. candidates, especially However, there is a strong possibility that, by going pub­ George Bush and Bill Clinton, as well as leaders of other lic with its dictates, the IMF may hawe fueled opposition to nations, to join them in resisting the IMP's murderous pre­ the $12 billion quota increase it has asked the U.S. to cough scriptions. up. According to a source close to the IMP, Sen. Robert Byrd The IMF's demands also met with a negative reaction (D-W. Va.), chairman of the Senate AppropriationsCommit­ from the Bush administration. Although Bush would tend tee, is dead set against allowing the quota increase through to have no argument with the IMF's recommendations in and is really "screwing up" the IMF's blueprint. Blocking general, he's smart enough to realize that raising taxes and the quota increase would be an important initial victory in cutting Social Security won't reelect him. the battle against IMP genocide-and against its plans for Coming just as George Bush unveiled his vaunted the United States.

EIR September 25, 1992 National 57 Remembering Allen Salisbury, a fighter fo r the truth

W. Allen Salisbury, a leader of the International Caucus of and shook up the electorate. Labor Committees (ICLC) and the LaRouche movement for To these "commercials," Salisbury brought a deep sense 20 years, died of colon cancer on Sept. 14, 1992. Although of irony and humor, and the ability to give the viewer a only 43 years old at his passing, Salisbury had made lasting vivid, unforgettable set of images to convey the currentworld contributions to reviving the crucial ideas which are needed situation. The Soviet commullist nomenklatura will likely to take mankind out of the currentDark Age, and into a new never forgive him for his 1984 show on their drive for nuclear renaissance of human civilization. superiority; nor will Soviet ageint-of-influence Walter Mon­ Readers of EIR in the 1990s may not be immediately dale. Henry Kissinger, the chief target of LaRouche's 1984 familiar with Salisbury and his work. His most recent article presidential campaign broadcasts, will likely remember in EIR was published in April 1990, under the title "If the Salisbury unkindly as well, for ithe treatment the shows gave South Had Won, We'd All Be Slaves." That article served to him. as an introduction to a reprint of Abraham Lincoln's favorite The television show which Salisbury, and LaRouche, stump speech, entitled "On Discoveries and Inventions," were most happy with, however, was produced in the spring which Salisbury had unearthed during his ground-breaking of 1988. It was entitled "The Woman on Mars," and it ad­ work during the late 1970s on the real story of the U. S. Civil dressed the issue of providing a mission for the people of the War. United States, the mission of colonizing space, especially Salisbury's book, The American System and the Civil the planet Mars. The fact that this show was truly a work of War-America's Battle with Britain, 1860-76, was pub­ art, immediately reflected itself in an outpouring of support lished in 1978. Undertaken as a polemical attack against the from young people who had watched it, young people who fraud of Alex Haley's Roots, as well as a scholarly treatment had been moved precisely in the way which Salisbury and of the American System economic policies of the political LaRouche had known they would be. current which produced Abraham Lincoln, the book Salisbury was very happy after this television show, and launched a devastating attack on freetrade and British liberal­ he went on to produce a couple more that fall, including the ism. It included extensive quotes from virtually unknown historic October 1988 show in which LaRouche projected American economists of the 19th century, most prominently the collapse of the Soviet Union through its economic col­ Lincoln's economist Henry Carey, which are essential to lapse, and called for the reunification of the Germanys in understanding the real nature of today's battle between oli­ conjunction with a western policy of "food for peace." By garchismand republicanism. the time the 1992 series of shows was produced, however, Salisbury's work on the 19th-century American System Salisbury was too sick to lead the effort. He learnedin April economists provided a solid foundation for the vast amount 1991 that he had been stricken by cancer, and plunged imme­ of historical work on economics which the Labor Commit­ diately into an effort to conquer it. tees, and publications like EIR , have produced in the subse­ quent 15 years. It became an integral and vital part of Uplifting people through laughter. LaRouche's own personal campaign for reviving American Before describing Allen Salisbury's fight for life, it is System economic policy, not only within the United States, appropriate to give some senst of where this extraordinary but in the rest of the world. person came from. He was born in Lothian, Maryland. His family testifies to his early development of an infectious Using television to educate laugh, which he retained to the end of his life. They also To get a vivid understanding of the quality of Salisbury's testify to the fact that he was a fighter, who refusedto tolerate contribution to the LaRouche movement, the reader can re­ degradation of himself, or others. flect on his major work in the 1980s-the series of half-hour Salisbury was the first black person to become senior television advertisements put out by the LaRouche presiden­ class president in his high school. He went on to become tial campaigns. Working intimately with LaRouche himself, politically active, both in the civil rights and anti-war move­ Salisbury was the producer of the shows which both educated ments. At the same time, he worked in the advertising busi-

58 National EIR September 25, 1992 ness, starting in late 1967. As a creative writer for the Young & Rubicam firm, Salisbury was responsible for many popular commercials, including Eastern's "The wings of man." In the early 1970s, Salisbury began to work with the LaRouche movement in New York City, and eventually took up major responsibility for the work among ghetto youths, which was organized under the rubric of the Revolutionary Youth Movement (RYM). While this work required consid­ erable capability at self-defense-a skill which Salisbury had acquired to a notable extent-the most important qualifica­ tion was intellectual guts. Salisbury followed LaRouche's advice: Use your mind the way a boxer uses his fists. Salisbury's approach to the ghetto youths the LaRouche movement was trying to organize in the early 1970s was described by him in a deposition he gave in 1985, pursuant to a suit taken by LaRouche and several associates against FBI harassment of their work. One part of the deposition went as follows:

Q: What was the purpose of RYM? Salisbury: Well, the purpose of it was to try and prevent these kids from killing-you know , shooting each other, killing each other, and to try to teach them. That was the purpose of the movement. Allen Salisbury'sgood humor and laughter permeated his life's work, and uplifted all who knew him . Q: How did you try to teach them? A: What I would do is I would give them classes on econom­ ics. That's what I would do. I would give them classes on tion-the resurrection of the work of Edgar Allan Poe. Poe, economics, philosophy, and it worked to an astonishing de­ Salisbury discovered, was not just a writer of strange stories gree-well, a lot of instances. I would go after the dope and beautiful poems, as many American children know, thing, which is horrendous, absolutely horrendous in the much less a drug addict, but he was also an epistemological ghettoes, and so forth , and that's what I would do. warrior for the American System of republican thinking and governmentagainst the British. Q: How did you think that classes in economics were going Poe's anti-Aristotelian method of thinking was the focus to stop gang warfare? of Salisbury's work on the 19th-century poet . In his 1981 A: That circumstance that they grew up in was much differ­ article on Poe, Salisbury brought out the poet's hilarious ent than the circumstances I grew up in. When a kid grows attacks on anti-human epistemology, the Baconian inductive up-kids five, four years old-every kid can think, regard­ method of "creeping," and the Aristotelian deductive method less of what his circumstances are, and somewhere along the of "crawling." Salisbury was also one of the few individuals line the guy doesn't see any hope. He forgets how to think. whom LaRouche collaborated with in attempting to revive He wants to get involved in turf, and everything else. By the ability to recite poetry. reminding an individual that he has the ability to think, to learn, and that that's truly who he is, sometimes can have an The fight against cancer enormous impact on a person. Allen Salisbury's last major battle was his battle to con­ quer his cancer. In concert with his wife of 10 years, Pat, he Salisbury became a member of the ICLC executive in the determined to make every effort to def�atthe disease. Indeed, mid- 1970s. Later he was a president of the National Anti­ his will to live defiedall professional predictions, which had DrugCoalition . given him three months to live. The loving fight which the two made inspired everyone •••and poetry around them, from friends and colleagues, to the medical Salisbury's commitment to arousing that ability to think, professionals who have been increasingly brainwashed into in people who otherwise seemed determined not to do so, submitting to the culture of death. Appropriately, to his life was also reflected in his other major intellectual contribu- and his death, his last words were: "�eep fighting."

EIR September 25, 1992 National 59 'New civil rights movement' targets the death penalty by Anita Gallagher

A "new civil rights movement," called into existence by the ly 100 people in a marching song: "If you're gonna kill the independent presidential campaign of Lyndon H. LaRouche, people, put on your hood and robe." Gov. L. Douglas Wil­ Jr. and civil rights movement strategist Rev. James L. Bevel, der, the nation's only black governor, has killed more people has given new impetus to ending the death penalty in the this year than the Klan, Reverend Bevel stated, noting that United States. without the victory in the right-to-votecampa ign, which Bev­ This mobilization could hardly be more urgent. On Oct. el led as Dr. Martin LutherKing 's Direct Action Coordinator 7, the U.S. Supreme Court will hear the case of Leonel T. in the Southern Christian Leadership Conference, "Wilder Herrera, to decide whether it is legal to execute a man who would not be governortoday. 'r has been convicted of murder but is innocent. Indications are The rally included representatives from the Nation of that the Supreme Court will decide in the affirmative. Islam in Richmond and Washington, D.C.; students from The U . S. Senate was tried and found wanting, in approv­ Howard University, Virginia Union University, and Virginia ing George Bush's nomination of Edward Carnes, called Commonwealth University; theNAACP; the Virginia Coali­ "Mr. Death Penalty," to be a judge of the 11th Circuit Court tion on Jails and Prisons; civil rights attorney Sa'ad el-Arnin; of Appeals, by a 66-30 vote on Sept. 9. Virginia Attorney people drawn from leafleting of Richmond's churches the General "Bloody Mary" Sue Terry is campaigning for gover­ previous Sunday; and LaRouche-Bevel supporters. nor of the state by executing one person a month, since her After the rally, a strategy session led by Reverend Bevel May execution of Roger Keith Coleman, a man with strong planned a march which would!mobilize forces, startingfrom proofs of innocence which were never argued in federal Richmond after church services on Sept. 27, and would ar­ courts for procedural reasons. No fewer than four ballot ini­ rive at the U.S. Supreme Courtin Washington, D.C. by Oct. tiatives are now in the works to reinstitute a death penalty in 7, the date on which the Herreracase will be argued. the District of Columbia, which repealedcapital punishment Lyndon LaRouche, in a statement issued Sept. 1, entitled in 1981. "Why I Demand an End to the Death Penalty Throughout the President Bush is an ardent supporter of the death penalty United States," said: "Every human being is in the living and wants to apply it to 50 new crimes. Gov. Bill Clinton image of God by virtue of that divine spark of reason which boasts that while Bush says he supports the death penalty, sets man apart from and above all lower formsof life. When "I'm the only one who has implemented it." And so-called we execute a person, no matter how hideous the crime they anti-establishment candidate Ross Perot supports it, along may have committed (if indeed they did commit it), we are with higher taxes and austerity. In sum, as Reverend Bevel forgoing the possibility of the redemption of that soul, and said, Bush is for the Nazi gas chamber method, Perot for we must never deny, in a Christian civilization in particular, the electric chair, and "liberal" Bill Clinton favors lethal the possibility of redemption." injection. That's the political landscape, minus the Reverend Bevel told the planning meeting in Richmond: LaRouche-Bevel campaign. "I don't believe in protest. Americans have been given the authority to be the government. Therefore, we must outlaw Rally against death that which is unlawful." Our Declaration of Independence, On Sept. 15, independent vice-presidential candidate said Bevel, represents the first group of men who acted to Rev . James Bevel led a rally in Richmond, the former capital create government on the basis of Christ's understanding of of the Confederacy, to commemorate the Ku Klux Klan's man. It says that life is an inalienable right-a right, and not a murder of four black children in the 16th Street Baptist privilege. We must not allow life to be defined as a privilege. Church in Birmingham, Alabama on that date in 1963. "The Whatever law (and there is none) allows government tokill , same Klan spirit is behind the execution of Willie Leroy also allows the people to kill. Thus, instead of executions Jones" today in Virginia, said Reverend Bevel, who led near- deterring crime, they catalyze it.

60 National EIR September 25, 1992 The Herrera case: a turning point sional life trying to execute the poor and minorities. In his petition for a hearing to the U.S. Supreme Court, Carnes was greatly helped in his confirmation, which Herrera's attorneystates: "The [ 5th Circuit] Court of Appeals every civil rights organization opposed, by Anti-Defamation accepted as a matter of fact that Petitioner Leonel T. Herrera League collaborator Morris Dees, the founder of the Mont­ is indeed innocent of the crimes for which he is scheduled to gomery, Alabama Southern Poverty Law Center. Dees has be executed, and so no evidentiary hearing was necessary to worked closely with the ADL, the Department of Justice, prove his innocence. The Court accepted as a matter of fact and the FBI in prosecuting the KujKlux Klan-which is that Petitioner could prove his innocence. The Court of Ap­ virtually run by the ADL, DOJ, and FBI. peals then held that executing a person whom everyone, including the Courts, knows to be innocent did not run afoul Capital punishment in the nation's capital? of the Constitution." Herrera's attorney, Mark Olive, re­ Only six weeks before the general election, no fewer than marks in the brief, "While there has been much debate oflate four separate initiatives are in the works to re-impose the about capital punishment and habeas corpus [the right to death penalty in Washington, D.C. The City Council unani­ post-conviction appeals], there is not yet a groundswell for mously repealed the death penalty in 1981, not having used executing innocent persons." it since 1957. The House-Senate Co�ttee on D.C. Appro­ Herrera was convicted of murdering two policemen near priations is currently meeting on the 1993 appropriations bill, Brownsville, Texas in 1982. In fact, the evidence suggests which includes, at the insistence of Sen. Richard Shelby (D­ that police involvement in the drug trade in the Rio Grande Ala.), that Washington, D.C. put an initiative on the ballot valley along the Mexican border led to the shooting of the in November to reinstitute the death penalty. two officers, and that police knew of the innocence of Herre­ Republican National Committeeman Harry Singleton has ra, but kept silent rather than disclose police-shared responsi­ so far introduced three separate initi�tives to make the death bility for the murders. Mter Herrera's conviction, Raul Her­ penalty law in the District, where ov� 60% of the population rera, his. brother, confessed that he was the killer; this was is black and where living conditions! approach Third World confirmed by Raul's son, who was an eyewitness. Because levels. Singleton is now appealing la May D.C. Board of Texas allows new evidence of innocence to be admitted only Elections ruling that the language of his first initiative was up to 30 days after conviction, the 5th Circuit Court of Ap­ defective. A second initiative, filed in August by Singleton, pealsrefused to overturnthe conviction. has been challenged by the American Civil Liberties Union The U.S. Supreme Court mustered four votes, which is and former D. C. City Council President Dave Clark. A the minimum necessary for accepting a case for review. Only Board of Elections hearing on yet a mird Singleton version four justices, and not the five required, voted for a stay of is set for Sept. 29. Sources say that Singleton hopes to collect Herrera's execution while the case was heard. Although the the 15,000 signatures required for bia1lot status from regis­ Texas Court of Criminal Appeals acted to stop Herrera's tered voters on election day, and thus have the initiative ready execution until the case was heard, the Supreme Court's for the next election. refusal to stay it is seen as a sign that the court will rule that Both the Shelby and Singleton death penalty initiatives executing an innocent man does not represent "cruel and would be, in reality, run by the federal government against unusual punishment. " the overwhelmingly minority population of the nation's capi­ tal, since all the D.C. prosecutors and judges who would Senate approves 'Mr. Death Penalty' implement it are appointed by the federal government. The On Sept. 9, the U.S. Senate approved Edward Carnes, a only role of the residents of the District would be pulling the man who has fought to execute the poor and minorities, to switch on the electric chair and serving on juries. However, be a judge on the 11th Circuit Court of Appeals, covering under current U.S. law, any person opposed to the death Alabama, Florida, and Georgia. Carnes replaces the retiring penalty can be struck for cause from Iljury in a capital case. Frank Johnson, a civil rights hero who cast the deciding vote Meanwhile, in Virginia, fresh frO/llthe execution ofWil­ to desegregate buses in Montgomery in 1956. lie Leroy Jones on the 29th anniversary of the hateful bomb­ Carneswrote Alabama's death penalty law, which is one ing of the 16th StreetBa ptist Church:in Birmingham, Attor­ of a handful in the country which give judges the power to ney General Mary Sue Terryhas already scheduled two more impose the death penalty if a jury declines to do so. Carnes executions in the next 10 weeks, and possibly others before fought to preserve capital convictions in more than 20 cases the end of the year. On Oct. 28, Charles Sylvester Stamper, in which all blacks had been struck from the jurypool . His a 39-year-old African-American, is to be executed, and Tim­ Senate defenders, such as Howell Heflin, Richard Shelby, othy Dale Bunch, a white 33-year-old, is to be executed on and other Confederates, tried to obfuscate the issue by trot­ Dec. 10. ting out self-serving statements that Carnes had made de­ Reverend Bevel told his audience on Sept. 15 in Rich­ nouncing such all-white juries-while using them to the hilt. mond not to wait for the Messiah to straighten this mess out; The 41-year-old Carneshas spent virtually his entire profes- it is our job to bring about an alternative, he said.

ElK September 25, 1992 National 61 a complete reversal of everythfug which had to do with the John F. Kennedy economic recovery program and other things," in LaRouche's words. "Whereas the United States, before McNamara, had been committed to scientific and technological progress . . . as a way of meeting the material problems of life, and education, and so forth , McNamara LaRouche-Bevel step and his friends ...introduced what became known as a post­ industrial society." up independent bid The candidate went on, "This was the policy of every President after Johnson. It was the policy of the New York Council on Foreign Relations; it was the policy, of course, by MarlaMinnicino of the Club of Rome, a British intelligence operation; ...it was the policy of the Trilateral Commission of David Rocke­ On Sept. 11, the first national television broadcast of the feller, which gave you Jimmy Carter and Walter Mondale. independent presidential campaign of political prisoner Lyn­ This is what has ruined us over the past 25-odd years." don LaRouche and his vice presidential running-mate, the civil rights leader Rev. James Bevel, was aired nationally for A new monetary system--or genocide one half-hour. In 1976, reluctantly, LaRouche launched his first inde­ The Lyndon LaRouche "Independents for Economic Re­ pendent campaign for President, convinced that, "as bad as covery" campaign is certifiedfor the ballot in 17 states: Alas­ the Kissinger Republicans had been, the Carter candidacy ka, New Jersey, Iowa, Massachusetts, Washington, D.C., represented David Rockefeller Democrats-Kissinger Dem­ Washington state, Tennessee, Utah, Louisiana, Rhode Is­ ocrats-who would be even worse." land, Arkansas, Minnesota, Wisconsin, Alabama, NorthDa­ "The monetary system constructed at the end of World kota, Virginia, Ohio, and has filedin Vermont. Court cases WarII is now collapsing," the candidate warned. Yet, "cer­ or other legal actions for ballot status are pending in Missis­ tain forces within the United States are committed to at­ sippi, Nebraska, and New York; LaRouche will be an official tempting to save this bankrupt monetary system. The meth­ write-in candidate in a dozen states, among them Delaware, ods to which they are resorting, are consciously modeled Texas, and Michigan. upon those used earlier by Hjalmar Schacht, the Nazi finance The Sept. 11 telecast, entitled "An Industrial Recovery minister, particularly during the 1933-36 period." from Today's DarkAge ," featureda series of flashbacksfrom As LaRouche had foreseen, under Carter, the high-inter­ Lyndon LaRouche's earlierpresidential campaigns, from his est rate policy imposed by Federal Reserve chairman Paul third-party candidacy in 1976, to the 1980, 1984, and 1988 Volcker eroded America's basic economic infrastructure. races for the Democratic nomination. Viewers were thusable "As I warned in national television broadcasts in both the to appreciate the depth of LaRouche's political experience 1980 and 1984 presidential cahlpaigns, all of the measures and his stunning foresight about the crisis the West faces of real economic growth-the percentage of industrial and today-as well as his consistent record of naming the nation's agricultural operatives in the work force; thephysical produc­ enemies, and fightingfor positive solutions . Bevel was intro­ tivity of labor; the amount of machine-tool and capital-goods duced to nationwide voters for the firsttime, with a broadcast created-had been collapsing disastrously since the mid- of an excerpt from his recent speech on education policy in 1970s," LaRouche said in the Sept. 11 telecast. Demopolis, Alabama. In 1982, LaRouche had saidthat Third World debt could The show began with some of LaRouche's prophetic not be paid. His "Operation Juarez" was a proposal for an statements from his last presidential race as a free man, in orderly moratorium on Ibero-American debt to the Interna­ 1988, when he proposed Germany's reunification and the tional Monetary Fund and to the New York and London revival of Berlin as its capital, and warned of the war threat banks, combined with a plan for industrial development. in the Balkans. The Berlin Wall fell in 1989, as foreseen by The Reagan-Bush administrationnot only rejected Operation LaRouche, almost alone; the Balkans war has now become Juarez, but in October 1982, brought in Henry Kissinger to a grim reality. In 1990, he saw a Mideast war in the making, threaten Ibero-America's nations with dire consequences if which came true months later in Operation Desert Storm, a they did not refinancetheir debt to the InternationalMonetary military adventure popularwith many Americans at the time, Fund. but which only deepened the nation's moral and economic The Sept. 11 campaign telecast pointed out that the crisis. Reagan-Bush "free enterprise recovery" of the 1980s meant The LaRouche-Bevel broadcast highlighted the destruc­ an orgy of pure financial speculation, unconnected to indus­ tion ofthe U.S. economy since JFK's death in 1963, especial­ trial or agricultural production. This was combined withde­ ly by Defense Secretary Robert McNamara,who "introduced regulation, and a spree of levetaged buy-outs and asset-strip-

62 National EIR September 25, 1992 ping fueled by trillions of dollars of worthless junk bonds. LaRouche told viewers, "The last time the United States Inslaw Case actually witnessed a broad social movement for a better America, was during the civil rights movement of the 196Os, especially under the leadership of Martin Luther King, up to the time he was shot. In that period, many Americans, in­ spiredby our successes in aerospace development, were pre­ House committee seeks pared to fightfor justice, and for economic equality, and for a better education for every American, whatever their skin special prosec1.Jtor color or national origin. by Jeffrey Steinberg James Bevel's role "One of the leaders of that 1960s civil rights movement, who is still fighting today, is the Rev. James Bevel. Jim On Sept. 10, the day that the House Judiciary Committee Bevel was one of the founders of the Student Nonviolent publicly released its long-awaited final report on the Inslaw Coordinating Committee, and was the organizer, assigned to affair, committee chairmanJack Brooks(0- Tex.) forwarded this work by Dr. Martin Luther King, to lead such things as a letter to Attorney General WilliamBarr signed by 20 other the famous civil rights campaign in Mississippi, and in Selma committee Democrats formally demlll1ding the appointment and Birmingham, Alabama. I am honored that James Bevel of a special prosecutor to probe the decade-old Department has accepted my nomination for him to be my vice presiden­ of Justice corruption scandal. tial running mate. " Inslaw, a Washington, D.C. computer software firm, LaRouche warnedvoters not to believe "that we've been was driven into bankruptcy in theearll)' 1980s when the De­ shelling out money to countries all over the world. Well, partmentof Justice (DOJ) stopped pa}mlenton a $10 million we've been giving some money to Israel, but to most every­ case-management software contract involving a copyrighted body else, we've been giving nothing-we've been taking. version of the firm's Promis program� Investigations by In­ ...And the countries from which we've been taking sup­ slaw President Bill Hamilton and the company's lawyer, port, such as Mexico ... are now collapsing, and can't Elliot Richardson, turned up evidence that senior Reagan support us any more. If we continue with this so-called free administration DOl officials, including Attorney General . tradepolicy, with this post-industrialpolicy , there is no hope Edwin Meese and Deputy Attorney General Lowell Jensen, for a recovery of the U.S. economy, ever--ever. joined with private sector business associate Dr. Earl Brian In the concluding segment, LaRouche assured voters, and possibly with U. S. intelligence officialsto steal the Pro­ "On the day that I am inaugurated as Presidentof the United mis software and then bankruptthe company. States, I will act immediately to halt this depression, and to A federal bankruptcy courtjudge ruled in 1988 that the get the Unites States back on the road toward recovery." Departmentof Justice had indeed used ''trickery, fraud, and The show then detailed the concrete monetary and economic deceit" to steal the software. The next year, a district court investment policies to do this. judge upheld the bankruptcy courtruling . Last year, the ap­ Why have Americans not implemented these programs peals court threw out the case on narroW procedural grounds before the present debacle? LaRouche said: "You American but did not challenge any of the lower courts' findings of voters wish to blame Washington for your troubles. You've fact. got to accept part of the blame. It is you, so preoccupied with The House Judiciary Committee has been probing the your television soap opera and your other cheap recreations, Inslaw scandal for several years. Shortly before he stepped and not paying attention to business, who have consistently down as attorney general, Richard Thprnburgh came under turned out on election day-thoughtlessly, almost-to vote heavy firefrom Jack Broo ks for obstruotingthe investigation . for what you consider the lesser evil. And, everytime you've Thejust-released 114-page Judiciary Committeereport con­ voted, what you've done is, you've brought in eviL" cludes thathigh-level DOJ officials as well as privateindivid­ Since Labor Day, vice presidential candidate Bevel has uals may have violated 12 sep.arate criminal statutes includ­ focused his campaign in the Mid-Atlantic states. On Sept. ing: fraud, perjury, tampering with ia witness, receiving 8, he addressed a rally in Richmond, the Virginia capital, stolen goods, transporting stolen goods, and the Racke­ protesting the pending execution of Willie Leroy Jones, a teering Influenced and Corrupt organizations (RICO) poor black man, in the electric chair. On Sept. 15, Bevel led statute. a larger anti-death penaltyrally in the same city, called on that date to honor the memory of four black children murderedby Inslaw allegations confirmed a bomb attack on a Birmingham, Alabama church during a Despite the fact that the House Ju4iciary Committee in­ civil rights meeting, on Sept. 15, 1963 (see article, page 60). vestigators ran up against nonstop interferencefrom the De-

EIR September 25, 1992 National 63 partment of Justice, which is well documented throughout Smoking gun memo their report, they were able to confirm a number of the most Perhaps the single most damning piece of new evidence crucial allegations made by Hamilton and Richardson. turnedup by the Judiciary Committee was a swornstatement • Committee investigators obtained copies of internal by Deputy Attorney General Arnold Bums, which revealed Department of Justice memos which showed that copies of that DOJ attorneys believed that Inslaw's claims against the the Promis software and various users manuals had been department were justified and that the government would provided-behind Inslaw's back-to district attorneys in lose if it went into court to defend against the fraud and Colorado, to state officialsin Pennsylvania, and to the Israeli contract violation charges. Despite that internal evaluation, government! According to the committee report, on April 22, the department proceeded to spend millions of dollars in 1983, C. Madison Brewer, the department's project manager taxpayers' money. (and onetime lawyer for Inslaw who had been unceremoni­ The committee report, commenting on the Bums revela­ ously fired by Hamilton) , ordered one of his assistants to tions, concluded: "Considering that the deputy attorney gen­ provide a copy of the Promis to Dr. Ben Orr, "a representative eral was aware of Inslaw's proprietary rights, the depart­ of the governmentof Israel. " ment's pursuit of litigation can only be understood as a war The committee was unable to confirm whether copies of of attritionbetween the department's massive, tax-supported Promis were also provided to the CentralIntelligence Agency resources and Inslaw's desperate financial condition, with and to the governmentsof Canada and the U. S. Virgin Islands shrinking (courtesy of the department) income." as the result of lack of cooperation from the relevant agencies Not only did the committ�e's final report conclude that or governments. the Department of Justice had used "trickery, fraud, and • The committee also was able to confirma critical alle­ deceit" to steal Inslaw' s proprietary software and then try gation by Michael Riconosciuto, a sometime CIA asset and unsuccessfully to shut down thecompany , but the report also computer whiz-kid, who claimed that Dr. Earl Brian had made some strong recommendations: been involved in a secret CIA project at the Cabazon Indian "Based on the evidence presented in this report, the Reservation near Indio, California. Riconosciuto claimed committee believes that extraordinary steps are required that he had been assigned by Brian to make modifications in to resolve the Inslaw issue. The attorney general should the stolen Promis software at the secret Cabazon site. The take immediate steps to remunerate Inslaw for the harm Cabazon Reservation housed a string of CIA and Pentagon the department has egregiously caused the company. . . . weapons researchand manufacturing projects during the ear­ In the event the attorney general does not move expedi­ ly 1980s under the nominally private sponsorship of the tiously to remunerate Inslaw j then Congress should move Wackenhut Corp. Committee investigators were able to ob­ quickly under the congressional reference provisions of tain records from the local sheriff' s department confirming the Court of Claims Act to initiate a review of this matter that Brian had been at the site in the company of Riconosciu­ by that court. to. In a sworn affidavit to the committee and to the federal "Finally the committee believes that the only way the court, Brian had denied ever being at Cabazon or ever meet­ Inslaw allegations can be adequately and fully investigated ing Riconosciuto. is by the appointment of an independent counsel. " • The committee was also able to interview FBI Special Agent Thomas Gates on his knowledge of some of the cir­ Indictments soon? cumstances surrounding the death of investigative reporter Sources close to the Inslaw case have told EIR that the Dan Casolaro in August 1991. Casolaro was found dead in Bush administration is scrambling to limit the darnage and a hotel room in Martinsburg, West Virginia shortly after he avoid appointing a special prosecutor. According to these apparently met with an important source on the Inslaw case. sources, the Inslaw scandal, if thoroughly probed, would Both of his arms had been repeatedly slashed. Local police unravel a political dirty tricks apparatus inside the DOJ that badly sabotaged the initial probe and eventually claimed that has been growing in power silllce the time of the Nixon presi­ Casolaro's death was a "suicide." dency. The Inslaw scandal, like the railroad prosecution of At the time of his death, Casolarowas incontact with Agent Lyndon LaRouche using similar illegal bankruptcy tactics, Gates, who had probed one of the alleged private sector players these sources say, goes to the! heart of this dirty network. inthe Inslaw affair,Robert BoothNicho ls. Nichols was probed Among the options reportedlybeing considered by Attor­ by the FBI for suspected ties to Asian organized crime rings ney General William Barr is Ito indict several of the middle and possible CIA links. Days before Casolaro's death, Nichols management DOJ officials deeply implicated in the Promis had warned Casolaro that he was getting too close to cracking theft and the bankruptcy scheme against Inslaw. Such a ma­ open the Inslaw case, and that his life was in jeopardy. Based neuver, these sources say, would be used to justify rejecting on the Gates interview and other information, the committee Representative Brooks's special counsel request and pro­ report called for the special prosecutor to probe the Casolaro tecting the top DOJ officials who actually ran the Inslaw death as partof the Inslaw matter. operation.

64 National EIR September 25, 1992 Elephants & Donkeys by Katherine R. Notley

Churches not thrilled Houston on Sept. 10. The Rev. E. Ed­ withhold wages and notify credit ward Jones, chairman of the 4.5 mil­ agencies of nonpayments. Clinton with Bush-Clinton duo lion-member denomination, attacked said his plan represents "real family George Bush presented a queer inter­ Clinton, a professed Baptist, in his values," declaring that "we ought to pretation of family values to a confer­ keynote for not attending the conven­ be pro-child and pro-work, and that's ence of Pat Robertson's Christian Co­ tion. Jones told the 15,000 delegates what this plan is.", alition on Sept. 11, saying that when that Clinton's failure to attend shows he talks about "family values," he that he does not know that "we are not doesn't mean the traditional nuclear an insignificant society," one that can Clinton, Gore blanch family. Maintaining that "the family be ignored. at sight of Bush bio is at the center of America," Bush Reverend Jones also attacked I went on to say that family values does George Bush's North American Free Clinton and side-kick Sen. Al Gore not mean a returnto "the days of Ozzie Trade Agreeement (NAFTA) in his were on the Tex� campaign trail in and Harriet. " "That may be wrong," speech, while many convention dele­ late August, at a large rally in Austin, he said, "but nor do I pass judgment gates also expressed their anger at to which they had lnvited former Sen. on the kind of family you live in." Clinton: Rev. J.D. Williams, the Ralph Yarborougij, pleading that the Families are not measured by "what Home Mission Board chairman, told party needed his presence. Senior kind," he said, "but by how close." the Houston Post that Clinton seems statesman YarborQugh, who defeated Bush's remarks came just a few days to be trying to "out-Bush Bush." Bush in the 196,4 senatorial race, after Dan Quayle publicly patted the showed up on the podium carrying Bush administration on the back for two copies of E!R's book George having hired homosexuals and les­ Bush: The Unauthbrized Biography . bians. Workfare, Dixie-style Yarborough presented a copy to Earlier Robertson had told report­ Bill Clinton, saying it was the most ers that if Bush "doesn't mobilize his Claiming that people on welfare are honest treatment of Bush in print. He right wing, that he'll lose the elec­ "dying" for an alternative "to the wel­ demanded that Clinton use it, and that tion." Robertson claimed that 83% of fare system as we know it," Bill it would make Clirlton a better Demo­ evangelicals voted for Bush in 1988, ("Bull") Clinton declared on Sept. 9: crat. Yarborough ,also criticized the "and that accounted for probably 25% "People who can work, ought to go to party's pro-death penalty stand. Clin­ of his total electoral coalition. If you work, and no one should be able to ton replied that be had already re­ lose that, you lose the election." stay on welfare forever. " ceived the book in the mail. (He had Meantime, "Slick Willie" Clinton Speaking to social workers in received it from E(R Houston bureau thought he could curry votes at Notre Jonesboro, Georgia, outside Atlanta, chief Harley Schlanger, to whom Dame University by invoking Catho­ Clinton announced a $6 billion plan Clinton had written a reply that he lic social teachings to promote abor­ to reform welfare over the next four would enjoy readilig it in the White tion. "All of us must respect the re­ years. With an unspecified program House-apparently not before.) flection of God's image in every man of education, job training, child care, Clinton push�d the persistent and woman. And so we must value and transportation, Clinton would ter­ Yarborough over t1> Al Gore. Yarbor- their freedom, not just their political minate all welfare payments at the end 0ugh demanded $at Gore take the freedom but their freedom of con­ of two years. "Everyone on welfare book, and Gore replied that he, too, science-in matters of philosophy would have to go to work," Clinton had already received it-from his fa­ � and family and faith," said Clinton, said, either in a private sector job or ther, former Sen. AI Gore, Sr. The in an obvious reference to "abortion in "community service" jobs funded elder Gore was especially enthusiastic rights." by the state or local government. about Chapter 10'$ inspiring account More recently, Mr. "Lesser of He also called for a crackdown to of Yarborough's defeat of Bush. Two Evils" was blasted by the leader enforce child-support payments, Yarborough also put a copy in Hillary of the National Baptist Convention of through the creation of a nationwide Clinton's hand, and she was seen America, Inc., at their convention in databank that would automatically holding the book at the rally.

EIR September 25, 1992 National 65 Classical LaserDiscs: many advantages, and a few caveats by Kathy Wolfe

pean Renaissance through the American Civil War era, in towns across Europe and America, the average person could Macbeth hear great dramas and musical performances live, and sung by Giuseppe Verdi by neighbors in church many a Sunday. conducted by Giuseppe Sinopoli, Deutsche Oper The average educated citizen could not only read works Berlin, June 1987, Pioneer PA-9 1-411 of art, and could perform them in community settings such as schools and churches, but could also create them. Much as children today are taught to write simple paragraphs in grade school (wherever the Apple computer doesn't do it for them), children used to be taught to read and write poetry, Giovanna d'Arco drama, and music. Today, we live in a video culture, which by Giuseppe Verdi conducted by Riccardo Chailly, Teatro Communale induces such passivity in Americans that my usual response di Bologna, 1989, Teldec 903 1-71478-6 to seeing a TV set is to say, ''Tum the blasted thing off!" It is better to simply read, which, because of television, Americans have forgotten how to do. This passivity reaches far into our consciousness. While some today might agree if told to "go read a book," or "go hear a live concert," many Beethoven Lieder Americans would be downright confused if urged to recite a Peter Schreier, tenor, and Norman Shetler, piano Shakespeare play, or sing a Schubert song. If told, "Go com­ Bad Urach, 1987, Pioneer PA-9 1-347 pose a poem" or a piece of music, most Americans would think their interlocutor insane.

Verdi's heritage We are thus faced today with the death of an entire cul­ Beethoven: Symphony No. 9 ture . Public performances of art are only available in a few conducted by Kurt Masur large cities at astronomical prices, restricted to the wealthy, Gewandhaus Leipzig, 1991, Pioneer PA-9 1-396 effete , intellectual snobs. The deteroriation in education means performances are often poor. Thus, good recordings become valuable. Two of Pioneer's latest releases, the full­ Just as Thomas Edison's invention of the phonograph has length operas "Giovanna d' Arco" and "Macbeth," give a allowed us to keep alive some of the musical traditions of good deal of insight into the maturation of composer Giusep­ earlier in the century, classical video and its latest technologi­ pe Verdi. They are also the first recordings of these early, cal breakthrough, the LaserDisc, can make great art more rarely performed Verdi operas available in video. available. A LaserDisc, which looks like a compact disc but Verdi's later "Macbeth," first composed in Florence in is almost the size of the old 33Y3 LP records, is a compact 1847, was rewrittenover the next 18 yearsto produce in 1865 disc with video; the better model CD players today play a magnificentrendering of Shakespeare which remained one LaserDiscs, too. LaserDiscs have much higher audio quality of the composer's own favorite operas. Verdi was a passion­ than video tape, and are permanent, while video tape deterio­ ate proponent of Abraham Lincoln in the American Civil rates within years . The music can be listened to like a CD, War and there is no doubt thatthis tale of political intrigue without the television. The Pioneer Corp. of Tokyo and Los and assassination took on a new meaning for him in the wake Angeles has one of the best classical collections on Laser­ of Lincoln's murder. Pioneer's 1987 Deutsche Oper Berlin Disc; to receive a free Pioneer Artists LaserDisc catalogue, version is superb, featuring the experienced Verdi interpreter call (800) 322-2285. baritone Renato Bruson in thetitle role, and a perfectly wick­ First, however, a caution. For 400 years, from the Euro- ed Mara Zampieri as the inexorable Lady Macbeth.

66 National EIR September 25, 1992 Verdi succeeds in translating perfectly into music many with bel canto technique, and his voice by 1987 shows the of Shakespeare's best scenes, in particular, the famous ex­ strain; the tightness is visible and audible. Still, the best audio change between Macbeth and his Lady preceding their mur­ recording of Beethoven's Lieder rimains Mr. Schreier's der of King Duncan, which Verdi builds into a riveting duet. 1976 two-volume set on Teldec 6.41997 and 6.42082, when Instead of wallowing in wickedness, as the New York pro­ his voice was at its best. duction had the principals do, Bruson and Zampieri sing Similarly singular is conductor Kurt Masur's reading of fully, but from a mental level above the characters them­ Beethoven's "Choral" Symphony �o. 9 in D minor from selves, showing us the passion of the characters without Leipzig. Masur was one of the leaders who helped bring drowning in the hysteria the characters themselves feel. down the Berlin Wall in 1989. Here: we see him in the Ge­ "Giovanna d' Arco" (Joan of Arc), composed in 1844, wandhaus, in 1991, the concert hall he built himself under was the earlier of the two Verdi operas, based upon Friedrich the old East German regime. Even under communism, the Schiller's 1801 play "The Virgin of Orleans . " Soprano Susan superior methods of music education in Germany are evident Dunn is terrific in the title role, singing with full Italian just by glancing at the soprano section of the chorus, which roundness, and Riccardo Chailly conducts lyrically, if fast consists largely of the children of the Gewandhaus Chorus in spots. Schiller's play is the magnificent story of Joan as and Leipzig Radio Chorus, singing Schiller's poem entirely the messenger of God to France, who is able to rise above from memory. all animal passions, a tale that needs telling in these times. The inventors of the conipact disc atJapan 's Sony Corp. Her failing is to fall in love at first sight, i.e., to fall in lust, said that they determined the length of the CD based on how with the English soldier Lionel, which threatens tragedy by long it would have to be to contain Beethoven's entire Ninth; compromising her high standards. little more needbe said about the importanceof the,composi­ Verdi had librettist Temistocle Solera condense the dense tion here. Unlike Furtwaengler, who tnovedlittle , relying on plot, as opera librettists must, but over-much, so that Giovan­ wrist action, eye contact, and sheer!mental concentration, na d' Areo falls for the French King instead. The opera itself Masur's conducting is unexpectedly energetic, from a visual thus lacks tension, since the element of treason is removed. standpOint. Still, while maintaining i fairly brisk tempi, he (Solera did this at Verdi's request; the composer feared that achieves the necessary long, singing phrases, especially with the Italian public, who saw his operas as inspiration for the the orchestra. Masur gets very good differentiation among the patriotic movement to drive foreign occupiers out of Italy, orchestral voices. With great clarity, the string basses can be would never accept the heroine's falling in love with the heard versus the violins, and versus the winds, as distinct sing­ enemy.) The video's Bologna staging is overly literal , with ing lines. The camera work is terrifi� in this regard, as the lots of hooded figures and dead bodies lying about the stage director has mastered much of Beethoven's counterpoint and to show us the gore of the Hundred Years' War. shows us each of these orchestral sections at just the right Musically the best audio is still the 1973 version by mirac­ moment, although the rapid visual shifts required to accom­ ulous Monserrat Caballe as Giovanna, the young Placido plish this can become a bit "busy." The sound is technically Domingo as the King, and Sherrill Milnes as Giovanna's gorgeous and the disc worth buying just to play the audio. father, on EMI CD CDMB-63226. I also liked the LaserDisc of the dhristmas 1989 Beetho­ ven's Ninth fromBe rlin condqcted by the otherwi!!e useless Beethoven documentaries Leonard Bernstein, featuring June Anderson and other fine Historic concerts and those by artists who rarely visit the singers (Deutsche Grammophon 072-;250-1). The warmthof U . S. are of special value on LaserDisc. Pioneer's Beethoven the occasion here overwhelmed all ooncerned to produce a Liederabend (evening of song) with German tenor Peter fourth Choral movement which in its breadth of tempo'a nd Schreier and pianist Norman Shetler is a concert most Ameri­ emotion surpasses Masur's reading. The Berlin soloists are cans will likely see nowhere else, and it should be seen. superior to those in Leipzig, whose sipging is strained. Mr. Schreier, alone of postwar singers, has emphasized A final note: The great thinkers of history, such as Leo­ Beethoven's magnificent, under-appreciated songs, and here nardo da Vinci and Beethoven, would be thrilled at today's are a full 90 minutes of the best. The setting is the intimate technology, as a means of spreading art to every family. concert salon in Bad Urach, East Germany, in 1987. Mr. But while listening to a recording i$ an inferior means of ' Schreier shows how he inspired a generation of downtrodden participation in music than singing or playing, audio re­ East German citizens with the hope that the greatness of cordings do leave the mind's eye f�e to imagine the full German music must mean better days to come for Germany. extent of the music. Any video, howeyer, is still television­ Especially fine are Beethoven's song cycle "An die feme and we know the powers of the tube to mesmerize and evis­ Geliebte" ("To the distant beloved") Op. 98, and the encore, cerate the imagination. So do buy LaserDiscs of Beethoven, "Bitten," the first of Beethoven's six "Gellert" Lieder Op. Verdi, or Handel-but beware. Use tltese fineperform ances 48, in which Schreier answers the audience's applause by as inspiration to attend live concerts, and to learnto perform pointing out that God is ever with us. music yourself. Watch once or twice: a week, and then tum Vocal purists are warned that Mr. Schreier never sang off the TV and read, or create somethingyourself.

EIR September 25, 1992 National 67 congressional Closeup by William Jones

Indictments handed down Wisconsin state senator Russell Fein­ may not bear fruit for 10, 12, 15, 20 in House Post Office flap gold defeated five-term Rep. James years down the road." A federal grand jury handed down an Moody (D-Wisc.) for the Democratic Bumpers's alternative to building indictment against the former manager nomination to challenge Sen. Robert the Spaae Station was renting space of the House Post Office, Joanna Kasten (R-Wisc.) in the Wisconsin on the Russian Mir Space Station. O'Rourke , on Sept. 10, on charges that Senate race. Feingold received a House Post Office employees engaged whopping 70% of the vote, while in a conspiracy to defraud the govem­ Moody and businessman Joe Checota ment and that they used taxpayer funds each received just 14%. to benefit members of Congress. The In Oklahoma, Rep . Mickey Ed­ House, Senate move to indictment came one day after prosecu­ wards (R) could only rally 26% of the lift MFN status for Serbia tors reached an agreement with O'R­ vote in his Aug. 25 primary , coming A resolution introduced into the Sen­ ourke under which she will plead guilty in last in a three-way race. Edwards ate on Sept. 9 would condition the to two misdemeanors and cooperate was the fourth-ranking Republican in granting of Most Favored Nation with the grand jury investigation of the the House. (MFN)status to Serbiaand Montenegro Post Office. on the President's certification to Con­ The indictment of O'Rourke sig­ gress th,t these countries had stopped nals that the prosecutor, U.S. Attor­ supporting armed conflict in the Bal­ ney Jay Stephens, i� close to charging kans. TQeresolution was introduced by one or more members of Congress Space Station Senate �ajority Leader George Mitch­ with criminal wrongdoing. funds voted up ell (D-Me.), Senate Foreign Relations The indictment charges O'Rourke The Senate voted on Sept. 9 to contin­ Committee Chairman Claiborne Pell with ordering House postal employees ue funding for Space Station Free­ (D-R.I.), and Sens. James Sasser (D­ to pick up and deliver campaign con­ dom. An amendment by Sen. Dale Tenn.), James Jeffords (R-Vt.), Frank tributions, send improper express Bumpers (D-Ark.), which would have Lautenberg (D-N.J.), and Warren Rud­ mail shipments , and, in one instance, eliminated funding for Freedom, was man (R�N.H.). using the Post Office's stamp to back­ defeated in a vote of 63-34. The conditions for continuing MFN date the postmark on a federal income The $2.1 billion earmarked by the status include provisions that Serbia tax return. Senate for the Space Station is $840 halt support for Serbian forces inside Three congressmen have ac­ million less than the Bush administra­ Bosnia-Hercegovina and make signifi­ knowledged receiving subpoenas: tion had requested but $400 million cant progress toward complying with House Ways and Means Chairman more than the sum approved by the the intqnationally recognized human Dan Rostenkowski (D-Ill.), Rep. House in July. Differences in the two rights clauses of the Helsinki Final Act, Austin Murphy (D-Pa.), and Rep . Jo­ bills will be worked out in conference includiqg respect for minority rights in seph Kolter (D-Pa.). The members , committee. Kosovo and Vojvodina. who have invoked their Fifth Amend­ Because of budget pressures, the The resolution also demands that ment rights, have had their office and design of Freedom has been reworked Serbia and Montenegro respect the postage expense records subpoenaed. numerous times. Sen. Barbara Mikul­ borders of the six republics of former ski (D-Md.), chairman of the Senate Yugoslavia as determined by the 1974 Appropriations subcommittee withju­ Yugoslav Constitution, i.e., before risdiction over the Space Station, said the Serbs initiated their invasion and the project had already generated "ethnic cleansing." Anti-incumbent fever 75,000jo bs. Similar legislation in the House, taking its toll Sen. Jake Gam (R-Utah) , who flew which has 115 sponsors , is expected The anti-incumbent fever sweeping on a Shuttle mission, and who will be to be introduced shortly by Rep. Frank the country has already made itself felt leaving the Senate this year, noted that Wolf (R-Va.). The Wolf legislation in primary elections throughout the his biggest disappointment was "the also cans on the parties to returnto the country . Earlier in the year, Sen. Alan shortsightedness of the Congress, the original boundaries of the region, and Dixon (D-Ill.) was defeated in his pri­ willingness to vote for things that give calls for the placement of U.N. mary by Carol Moseley Braun. immediate political benefit, but the un­ peacekeeping forces on the borders of On Sept. 8, relatively unknown willingness to vote for something that Kosovo and Vojvodina. Wolf recently

68 National EIR September 25, 1992 returned from a fact-finding mission nance Committee on Sept. 9, U.S. States, and abide by the Missile Tech­ in former Yugoslavia. Trade Representative Carla Hills re­ nology Control regime. jected any suggestion that the agree­ In a separate bill introduced on ment be altered. Sept. 14 by Sen. John Kerry(D-Mass .), Another member of the"free trade" China would be required to cooperate faction, Sen. Max Baucus (D-Mont.), with the United States in efforts to ac­ Martin concedes NAFTA also attacked the agreement. In floor count for U.S. militlary personnel miss­ will cost U.S. jobs statements on Sept. 8, he called the ing in action or otherwise unaccounted Labor Secretary Lynne Martin con­ agreement "flawed"and accused the ad­ for as a result of their service in the ceded under intensive grilling before ministration of "using NAFTA for par­ Korean or Vietnam conflicts. the Senate Finance Committee on tisan political advantage." Sept. 10, that the North American Free Trade Agreement (NAFTA) could eliminate up to 150,000 u.S. jobs. Martin became the firstBush ad­ Gonzalez exposes secret ministration official to admit that Senate votes to U.S. relations with Iraq NAFTA will result in a major loss of revoke MFN for China Rep. Henry Gonzalez (D-Tex.) pre­ jobs in the United States. By unanimous consent, the Senate sented more specifics on secret U.S.­ The cat slipped out of the bag passed a measure which would revoke Iraq relations prior to the Persian Gulf when committee members pressed Most Favored Nation status for trade war, in comments on the House floor Martin on how the administration with Chinese state-owned industries. Sept. 14. The most significant part of came up with a figure of $330 million The bill does not limit MFN for pri­ the allegations was themanner in which a year for five years for retraining vate companies and joint venture the U.S. Justice Departmentintervened workers once NAFTA goes into ef­ companies in which American busi­ into the criminal investigation of the At- fect. Martin eventually responded that nesses are working. The Bush admin­ 1antabranch of the Italian Banca Nazio­ it was based on the possible loss of istration has opposed any restrictions nale del Lavoro (BNL), fingered as the 150,000jobs over 10 years, which she on China's MFN status. financialfunnel for i,Ilicitfunds going to claimed was the highest estimate The bill, introduced by Senate an Iraqi militaryprogram. among 20 studies reviewed by the La­ Majority Leader George Mitchell (D­ Gonzalez noted how executives of bor Department. Under further ques­ Me.), would allow continued MFN the bank had turnedto U.S. Ambassa­ tioning, she acknowledged that the statusfor China only if it met a number dor to Italy Peter Secchia in 1990 to AFL-CIO has predicted the loss of of stringent conditions. China must try to get the U.S. governmentto in­ 500,000jobs , but said the department begin adhering to its commitment to tervene to control the investigation. had not included organized labor's es­ the U.N. Universal Declaration of Gonzalez said that shortly after Sec­ timate in its review. Human Rights in China and Tibet, it chi a had sent a dispatch voicing these Meanwhile, two supporters of a must allow unrestrictedemigration of concerns to the U.S. State Depart­ freetrade agreement with Mexico have persons, and it must provide an ac­ ment, the U.S. Attorney's office in indicated that the agreement has little counting of citizens detained, ac­ Atlanta had reassigned the lead prose­ chance of passage in its present form . cused, or sentenced since the Tianan­ cutor to another case for the entire In a speech on Sept. 9 before a men Square massacre. China must summer of 1990, and control of the coalition of labor and environmental also demonstrate a good faith effort to investigation was transferred to groups opposed to the pact, House release those imprisoned for their non­ Washington. Majority Leader Richard Gephardt violent expression of political beliefs, Gonzalez condemned the Justice (D-Mo.) called on the Bush adminis­ and it must act to stop the export of Department's interference in his in­ tration to "cease further efforts to win products made by forced labor to the vestigation, including threats to sub­ congressional approval" of the NAF­ United States. poena him for revealing classified in­ TA agreement and to return to the ne­ In addition, the legislation re­ formation, as "corrupting and gotiating table to revise the agreement quires that the Chinese government abdicating and frustrating the very in order to include provisions for pro­ cease religious persecution and re­ oath of office and constitutional re­ tecting workers and the environment. pression in China and Tibet, cease un­ sponsibilities inherent in those offi­ In testimony before the Senate Fi- fair trade practices with the United cials and in those positions."

EIR September 25, 1992 National 69 National News

nonsense and good sense and whose fo llow­ tervened to prevent the Iranian government ers have managed to place him on 10 state from releasing U.S. hostages until after the ballots. Campaigning from jail, where he November 1980 presidential election. Sus­ Arkansas uses black sojourns as a claimed political prisoner, picion in what became known as the "Octo­ LaRouche's crimes, if any , are almost infi­ ber Surprise," centers around George Bush, inmates as 'houseboys' nitely fewer and of less magnitude than Reagan-Bush campaign chief William Black prisoners in Arkansas are required to those of the Republican candidate and may Casey, and former Nixon Assistant Attor­ serve as domestics and shoe shine boys for thus be overlooked. Although his economic ney General J. Stanley Pottinger, as well prison officialsin Arkansas without pay, ac­ • solutions ' are far-fetched to say the least, as the networks that later became the Iran­ cording to a recent expose that appeared in he and his organization are strongly anti­ Contra coonection. New York Newsday and the Roanoke, Va. drug and anti-crime; in fact, they do not In 19�0, EIR printed allegations that Times and World News. Although an inter­ hesitate to brand the Anti-Defamation Hashemi was involved in illegally violating nal investigation in 1987 found that black League as a criminal organization tied to the the U.S. arms embargo against Iran. Has­ inmates are ten times as likely as whites drug racket. Thus, LaRouche has the same hemi sued EIR , which subpoenaed govern­ to draw the "houseboy" assignments, the enemies as this newspaper and its publisher. ment documents that would prove govern­ practice has been continued by the Board of A protest vote for him would send a healthy ment awareness of Hashemi's illegal Corrections which was appointed by Gov. signal to the Establishment of non-confi­ operations. The subpoenas to various agen­ Bill Clinton. One board member, Bobby dence." cies were quashed on "national security" Roberts , said the "image" created by the The Sp otlight feature also recom­ grounds. :In 1983, Hashemi's suit was dis­ disparity smacks of "the plantation mentali­ mended, of the three "major candidates," missed. In 1984, it was disclosed that cru­ ty that has been down here forever. " i.e., those on the ballot in most states, they cial tape$ of FBI wiretaps on Hashemi's The only action Governor Clinton has would favor H. Ross Perot because "Perot's phone hadbeen lost. FBI documents ana­ taken to stop the practice by his appointed election would completely upset the status lyzed by. EIR indicate that the "missing board was to write a letter two years ago quo . It would be a mortal blow against the tapes" copsist of eight conversations center­ asking the board to do away with the obvious present system," despite the fact that the ing on the period around Dec. 12, 1980. racial disparity . When the board refused to article strongly criticized Perot's "reputed The "dis4ppearance" of these tapes in 1984 act, he took no further action, according to endorsement of the parliamentary system." prevented the prosecution of Pottinger. former Corrections Board Chairman A.L. Lockhart. Only three other states-Louisi­ ana, Mississippi, and Alabama-require in­ mates, informally known as "houseboys," to perform unpaid domestic and shoeshine More �October Surprise' Striking Rhode Island duties for prison officials who live in state­ owned homes next to the prisons. In 1987, tapes surface from FBI teach�rs freed from jail Arkansas' own investigator found that 85% At a hearing in New York on Sept. 8 in a As Teamsters and other supporters paraded of "houseboy" positions were filled by Freedom of Information Act (FOIA) action outside the courtroom, 18 Warwick, Rhode blacks, who make up only 57% ofthe inmate brought by EIR researcher Mary Jane Free­ Island teachers were unmanacled and re­ population; 1 % of Arkansas' 7,535 inmates man, the government attorney told U.S. leased fr�m jail on Sept. 14. SuperiorCourt are "houseboys. " Judge Miriam Cedarbaum that the FBI had Judge PaulPederza ni, Jr. had orderedunion located 7,000 documents in its New York leaders and other striking teachers arrested field office in response to Freeman's FOIA and jailed on Sept. 11 for defying his order request for records about Iranian banker Cy­ to go baqk to work. rus Hashemi, his attorney J. Stanley Pot­ The latestdevelopments temporarilyde­ 'Spotlight' recommends tinger, and other events surrounding the fused a �litical-Iabor crisis, in which col­ "October Surprise." Before the hearing, the lapsing $tate funding has led to severe at­ LaRouche 'protest vote' FBI's attorney also told Freeman's attorney, tacks on:local education budgets . Warwick The Sept. 14 issue of the populist weekly James Lesar, that the "missing tapes" of teachers !Worked last year withouta contract, newspaper Sp otlight included a spread on 1980 conversations between Hashemi and making concessions to the city on class sizes the presidential elections, which recom­ Pottinger have been found, but that they will and layqffs . The teachers voted a strike on mended Lyndon LaRouche among what it have to be translated from Farsi and tran­ Aug. 31, after the city demanded cuts in called "protest candidates." Afterreviewing scribed, before it can be determined if their school services and unlimited authority to each candidate, Sp otlight wrote about inde­ contents can be released. increase class sizes and to lay off teachers. pendent presidential candidate Lyndon The tapes, from governmentwiretaps of Though ' Judge Pederzani had 18 strikers LaRouche: "Then there is Lyndon the late Iranian banker Hashemi, would shed jailed, arid threatened wider arrests, the ci­ LaRouche whose beliefs are a mixture of light on how the Reagan-Bush campaign in- ty's board of education still refusedto nego-

70 National EIR September 25, 1992 Brifdly

• BILL CLINTON addressed the national convention of the B'nai B'rith via satellite on Sept. 10, intro­ duced by Anti,Defamation League tiate, a spokesman for the teachers union blocking the parents' decision, when staff­ Executive Director Abe Foxman. It told EIR . The judge then released the teach­ ers at the child's nursing home reported is rumored that, while Clinton admits ers, inserted his own mediator into the nego­ signs of apparent recovery to authorities. A he spoke, he did not inhale. tiations, imposed the 1989-90 contract pro­ circuit court judge's ruling in favor of the VISions, and threatened to jail the parents enabled them to end her life on Aug . • H. ROSS PEROT told Cable and the School Committee . 13, 1988. superintendent News Network on Sept. 11 that he pronouncements came amidst rumors The Court of Appeals argued that, since These may get back into the presidential strikes by Teamsters and teach­ parents may decide their children's medical of imminent race if Bush anq Clinton "don't mea­ ers around the state. treatment, and since "medical treatment in­ sure up," accorciing to the Chicago cludes the decision to decline life-saving in­ Tribune. Perot is on the ballot in 45 tervention, it follows that parents are em­ states and may hit 50 states soon. powered to make decisions regarding withdrawal or withholding of life-saving or • VIRGINIA'S Supreme Court University of Wisconsin life-prolonging measures on behalf of their ruled on Sept. 8 against a motion children." The prosecutor's decision not to drops 'speech code' brought by LaRouche associate Mi­ appeal the ruling makes it law in Michigan. The University of Wisconsin has decided to chael Billington to continue his state abolish its "speech code ," in response to the bond while he appeals his 77-year state SupremeCou rt'srecent ruling overturn­ sentence to the U.S. Supreme Court. ing the state's "hate crimes" legislation. The Billington was convicted of "securi­ modelhate crimes legislation, which had been ties fraud" in a blatantly political drawn up by the Anti-Defamation League, 'Small' nukes to be used frameup. was one of the most advanced "sentencing against Third World? FAT HENRY enhancement" provisions, which increased • Kissinger was re­ sentences for criminal acts, ifa thought crime According to internal briefings and memos ported in recent U . S. gossip columns of bias could bediscerned , in some cases turn­ of Los Alamos National Laboratory, in New to be boycotting a gala dinner cele­ ing misdemeanors into felonies. Mexico, scientists and strategists are at brating the 70th anniversary of the In 1989, the school becameone of the first work on a new generation of very small nu­ Council on Fo�gn Affairs quarterly colleges to prohibit students and faculty from clear weapons for use against Third World Foreign Affairs. Kissinger was said using politically incorrect language, such as nations , wrote William Arkin, military re­ to be furious abbut a favorable one­ ''fag.'' However, afterrecent federal and state search director for Greenpeace in a New paragraph review of a new biography rulingsagainst "hate crimes" laws, the univer­ York Times editorial section column on of Kissinger which Kissinger regards sity's board of regents voted 10-6 on Sept. Sept. 9. The new weapons being promoted, as unflattering. II to abolish the speech code. "There was according to Arkin, include: I) a lO-ton WILLIAM F. BUCKLEY concern that it violated the First Amend­ warhead ("micronuke") to destroy under­ • ment," said PatriciaHodulik, the university's ground bunkers (explosive yield 10 times called for "American conservatives" senior counsel, who added that she believes larger than the 2,OOO-pound conventional to make "elementary concessions" to other schoolswill follow Wisconsin. bombs used in the Gulf war); 2) a loo-ton so-called "gay rights," in an editorial antimissile warhead ("mininuke") to count­ section commen� in the Richmond er nuclear, biological, or chemical missiles; Times-Dispatch recently. The mem­ 3) a I ,OOO-ton "counter-projection force" berof Y ale's Skqll and Bones Society warhead ("tinynuke") for attacks against called for fellow conservatives to ex­ Court allows parents to ground troops . tend "professional security for gays Arkin concluded thatthe U. S. , by conte­ in all public employment," and in pri­ terminate their children mplating the possible use of nuclear weap­ vate employment except children's The Michigan Court of Appeals issued the ons in the Third World, is giving those na­ schools. barbaric ruling Sept. 9 that parents are "em­ tions a compelling reason to develop their powered" to order that life-sustaining mea­ own arsenals. Whether his report is accurate • THE USIA has been funding sures for their minor children be terminated. or not, considering the reliability and vested overseas junkets on the "qt" by Su­ The decision upheld a lower court ruling interest of the malthusian devotees at preme Court justices, according to from 1988 which permitted the parents of Greenpeace, his argument is coherent with the Washington JPost. Both ChiefJus­ 12-year-old Jacqueline Rosebush to tum off the Anglo-American policy known as "tech­ tice Rehnquist and Justice Scalia her respirator, after she suffered brain dam­ nological apartheid," of denying all ad­ went separately · to Ireland. Justice age in a 1987 auto accident. vanced scientific and technological know­ O'Connor traveled to Rwanda in July The original court ruling was made after how to the Third World, on the grounds that to see the famous mountain apes. a county prosecutor obtained an order it might have "dual use" as weapons.

EIR September 25, 1992 National 71 Editorial

Choose the LaRouche alternative, now

The chaotic state of world currency markets is not only What has to be done, and the only alternative, is indicative of the depth of the present economic crisis LaRouche's policy, which has been stated and restated in the West, but portends an even graver crisis afflicting over the past 20 years , and which he elaborated in a western civilization as a whole . With the exception of book-length work in 1982, Operation Juarez, as the Lyndon LaRouche and his associates, there is no one only way to deal with the 'international debt crisis, yet capable of implementing the kind of policies which which, as he accurately forecast then, would ultimately can avert the debacle that we see before us. destroy the world monetary system. The policy of the establishment in the United At that time, he urged the nations of South and Cen­ States, Great Britain, and continental Europe is still tral America to declare a moratorium on debt repayment austerity-in other words, fascist economics. Though in order to protect their economies from the ravages of some may not like to admit it, fascist economics and usury . Eleven years earlier, in 1971 , LaRouche forecast fascist politics are inextricably intertwined. War, civil the breakdown of the Bretton Woods system, because disorder, despair, and the end of the Christian values of the tum away from real economic investment and into embodied in the Renaissance: That is the fate which speculation and usury which had become the guiding looms , save only the possibility that the alternative features of the international monetary system, and afforded by LaRouche might prevail . which was ratified in August of that year by the United Lyndon LaRouche is a political prisoner of those States, when the dollar was unmoored from its gold­ same forces which have brought the world to the brink based system of accounting and allowed to float. of hell . He is forced to remain in jail because these evil, As LaRouche and his associates foresaw-and tried stupid men continue to hold the reins of a despotic to prevent-the world has now come to the point that power which is ripping apart the conditions that would a fascist policy is being imposed by people such as allow a decent, productive life for those now living and IMF Managing Director Michel Camdessus. We are generations to come . entering a period of chaos, in which whole nations will But more is at stake . LaRouche is needed now as be tom asunder-including the United States-if the never before , to be an active member of a policy group LaRouche alternative is not taken . working to reverse the current policies and give the To reverse this policy means to repudiate the evil United States again a sound economic basis on which myth that there exists such a thing as a "post-industrial" to rebuild industry and infrastructure . society . We must fire the �onomics professors who It is no longer possible to sustain the world econom­ have peddled this insane advice to world political lead­ ic system by perception games and financial manipula­ ers , individuals such as Milton Friedman and his idiot tions . What is needed is an investment policy directed successor Jeffrey Sachs-the monetarists, be they by national governments. What is needed is an end Keynesians or free trade i�eologues, who have de­ to the Bretton Woods system, the evil International stroyed the ability of nations to produce the means Monetary Fund, and the central banks associated with by which their peoples could acquire the most basic it-including the independent U. S. Federal Reserve necessities of life. System. There is no hope for the United States or any We must get back to the ABCs of physical econo­ other nation which responds to the current crisis by my , as spelled out by Alexander Hamilton, Friedrich further austerity measures-tax increases and budget List in Germany, and Charles de Gaulle in France. We cuts, such as have already destroyed the economies of must choose the policies of Lyndon LaRouche, and Poland and Great Britain. These policies will only free him to be able to implement them, before it is too make things worse. late .

72 National EIR September 25, 1992 SEE LAROUCHE ON CAB L E TV

• DANSVlllE­ ALASKA MARYLAND VIRGINIA • Cooney Cable Ch. 6 • • ANCHORAGE-Anchorage MONTG OMERY COUNTY­ ARLINGTON-ACT Cn. 33 The LaRouche Connection Community TV Ch. 46 MCTV Ch. 49 The LaRouche Connection Wednesdays-afternoon The LaRouche Connection The LaRouche Connection Sundays-1 p.m. Fridays-afternoon Wednesdays-9 p.m. Thursdays-2 :30 p.m. Mondays-6:30 p.m. Saturdays-1 0 :30 p.m. • MANHATTA N­ Wednesdays-1 2 noon CALIFORNIA • PRINCE GEORGE'S Manhatta n Cable Ch. 17D • CHESAPEAKE-ACC Ch. 40 • MODESTO- Public Access COUNTY-PGCTV Ch. 15 The LaRouche Connection The LaRouche Connection Bulletin Board Ch. 5 The LaRouche Connection Fridays-6 a.m. Thursdays-8 p.m. Genocidal Roots of Bush 's • Mondays-9 p.m. QUEENS- • CHESTERFIELD COUNTY­ New World Order • WESTMINSTER- Queens Public TV Ch. 56 Storer Ch. 6 Thurs., Oct. 1-6:30 p.m. Carroll Community TV Ch. 55 The Oil Weapon The Schiller Institute Show • MOUNTAIN VIEW­ The LaRouche Connection Mon., Sept. 28-3 p.m. Tuesdays-9 a.m. MVCTV Ch. 30 Tuesdays-3 p.m. The Holes in the Ozone Scare • FAIRFAX COUNTY­ Michael Billington: Thursdays-9 p.m. Hoax Media General Ch. 10 Political Prisoner Tues., Sept. 29-3 p.m. MICHIGAN Wednesdays-6:30 p.m. Thurs., Oct. 1-9 p.m. • ROCHESTER- • Fridays-2 p.m. The Lessons of Versailles TAYlOR­ Greater Rochester Ch. 12 Sundays-6 p.m. Thurs., Oct. 15-9 p.m. Maclean-Hunter Ch. 3 The LaRouche Connection • lEESBURG­ • SACRAME NTO- · The LaRouche Connection Thu rsdays-7 p.m. MultiVision Ch. 6 Access Sacramento Ch. 18 Tuesdays-7 :30 p.m. Greater Rochester Ch. 19 The LaRouche Connection LaRouche's Motion for MINNESOTA The LaRouche Connection Mondays-7 p.m. Freedom • MINNEAPOLlS­ Sundays-1 1 a.m. • RICHMOND & HENRICO Wed., Oct. 7-1 0 p.m. Paragon Ch. 32 Mondays-7 p.m. COU NTY- fiR World News DISTRICT OF COLUMBIA TEXAS Continental Cable Ch. 31 Wednesdays-6:30 p.m. • WASHINGTON-DCTV Ch. 34 • HOUSTON-Public Access Ch. The Schiller Institute Show Sundays-9 p.m. The LaRouche Connection The LaRouche Connection Thursdays-6 :30 p.m. Sundays-12 noon NEW YORK Mondays-5 p.m. WASHINGTON • BUFFAlO-BCAM Ch. 32 ILLINOIS Who Owns Your • SEATTlE- The LaRouche Connection • CHICAGO- Congressman ? Seattle Public Access Ch. 29 Tuesdays-6 p.m. Chicago Cable Access Ch. 21 Wed., Sept. 29-1 1 a.m. The LaRouche Connection Bush 's Genocide Thurs., Oct. 1-2 p.m. Sundays-1 p.m. Wed., Sept. 30-8 p.m. Fri., Oct. 2-7 p.m. Tues., Oct. 6- 1 1 p.m.

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