[THIS PAGE IS INTENTIONALLY BLANK] Editor-in-chief: Daniel Sneider Editor: Linda de Hoyos Managing Editors: Kathy Stevens. Vin Berg Art Director: Deborah Asch Circulation Manager: Lana Wolfe

Contributing Editors: From the

Lyndon 1:1. LaRouche. Jr.• Criton Zoakos. Nora Hamerman. Editor-in-Chief Christopher White. Costas Kalimtgis. Nancy Spannaus

INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot Asia: Daniel Sneider Counterintelligence: Jeffrey Steinberg Paul Goldstein Military Strategy: he 1980s have opened with a bang and so far promises to be a Economics: David Goldman T Energy: William Engdahl and decade when the question of world war or peace will be paramount. Marsha Freeman The crisis in Iran, the spread of instability in the Middle East and the Vivian Zoakos Europe: Islamic world, and now the events in Afghanistan have posed a new Latin America: Dennis Small Law:' Felice Merritt crisis in the world in which the Soviet Union for one is delivering a Middle East: Robert Dreyfuss clear message that war will be the result of a sustained threat to its Science and Technology: perceived strategic interests. Morris Levitt This special report on the Muslim Brotherhood was prepared Soviet Sector: Rachel Douglas United States: Konstantin George before the events in Afghanistan took place. Those events only United Nations: Nancy Coker underscore the strategic importance of this conspiratorial organiza­ tion, an entity controlled primarily by the British Secret Intelligence INTERNATIONAL BUREAUS: Bogota: Carlos Cota Meza Services and the organization responsible for the creation of the Bonn: George Gregory Khomeini madness in Iran and its spread throughout the Middle Brussels: Christine Juarez East. Chicago: Mitchell Hirsch This is the second report we have presented on the Brother­ Copenhagen: Vincent Robson Mexico City: Robyn Quijano hood; the first was last May. As our title suggests, we are keeping to Milan: Muriel Mirak the tradition of the EIR in publishing such exposes not merely for the New Delhi: Paul Zykofsky edification of our readers but to bring about a concrete result-in this Paris: Katherine Kanter and Sophie Tanapura case to aid governments and others concerned in eliminating this Rome: Claudio Celani menace from the body politic. Stockholm: Clifford Gaddy The report has been directed by our Middle East intelligence Washington D.C.: Laura Chasen and Susan Kokinda director, Robert Dreyfuss, and draws on the research and writing of Wiesbaden: (European Economics): our Middle East specialists, Thierry Le Marc, who is based in Bonn, Mark Tritsch and Laurent Murawiec and Mark Burdman, based in New York. A section on the South Asian end of this, including the Afghanistan-Soviet aspects, has been Executive Intelligence Review is contributed by myself, in my capacity as Asia intelligence director. published by New Solidarity International Press Service Our readers are encouraged to refer back to our earlier report and the 304 W. 58th Street more recent EIR special report on "The Secrets Behind the Ayatollah New York City. N. Y. }OO19 Khomeini" for more on this vital subject, without which events in the Copyright c 1979 New Solidarity, International Press Service region and the world cannot be understood (reprints are available on A /I rights reserved. request). Reproduction in whole or in part without permission strictly prohibited. Subscription by mail for the U.S.:

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Departments Economics

1 From the Editor-in-Chief 6 The Brandt�Commission's new 'geo-economic order' 5 Editorial Comment A commission under Willy Brandt's chairmanship and 64 Trade Review Robert McNamara's control has just come out with its report proposing a "new world order" in which competing currency blocs index their transactions to inflated NextWeek commodity and raw materials prices, and that all commodity­ backed Third World debts then be Afghanistan action by the Soviet paid back under the supervision military has plunged the world of a "World Development into a strategic crisis the most Agency ." Dubbed a "new geo­ dangerous since World War 11- economic order" by its with thermonuclear war an proponents, those with an eye for immediate threat. Next week, EI R historial parallels prefer the will take an in-depth look at why phrase, "Pax Britannica." the Soviets acted, and examine the economic, political and military 10 Gold realities that lie behind the London's golden bargain strategic crisis prompting the Afghan coup d'etat. We will not 11 Foreign Exchange only report, but prescribe: there Currencies at a glance are definite measures, available to U.S. and European governments, 12 Domestic Credit that can reverse the plunge In acknowledgment toward war in the short term; but of their services at iss.ue are the fu ndamental economic policies pursued in the 13 Corporate Strategy long term by all powers involved. Is this a "bail-out?"

14 Futures Cartels break the laws

15 World Trade A Third World illusion

16 Business Briefs

© 1980 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. Volume 7. Number 1 January 8-14. 1980

Special Report International National

, 44 Afghanistan: Is it 54 The Aspen Institute's 'fix' the new Sarajevo? of the 1980 U.S. election The Soviet Union has plunged An arm of British intelligence militarily into Afghanistan to which conducts brainwashing mop up "Islamic rebels" "executive seminars" and assorted threatening the friendliness of a "humanistic studies" in Colorado nation on its very borders. But the has won the collaboration of Soviet command has deployed a major U.S. news media in a On the cover: British intelligence officer H. St. troop-strength far in excess of the carefully planned project to John' B. Philby, who created the Muslim requirements of that task: a control who is elected President of Brotherhood in the 1 920s. signal, a decisive show of force, the United States, by controlling has been directed at U.S. ally who gets access to the electorate 18 How to stop the China, concerning what they may through the mass media. It's not Muslim Brotherhood expect from the U.S.S.R. in the only scandalous, but given who's More than 25 years ago, a British event of a new Chinese invasion involved, it's treason. strategist outlined a plan for an of Vietnam. And now, the world Islamic revival that would sweep depends on how well, or how 56 The blackout of the the Middle East and spread into badly, the United States "reads" New Hampshire primary the Central Asian Republics of the Soviet signal. the Soviet Union-thus toppling 58 What is the Aspen Institute the "Soviet Empire." Today, the 47 The truth behind the of Humanistic Studies? activities of the British Soviet Afghan coup intelligence arm called the 60 Congressional Calendar Muslim Brotherhood, in Iran, 50 The world reacts Pakistan, Afghanistan, and to Soviet action elsewhere, have proceeded 62 National News according to the same plan. 52 International Intelligence

20 I. The European command of the Brotherhood

27 II. The Brotherhood in the Middle East

33 III. The roots of the Brotherhood

37 IV. Capt. Setoudeh and the Office of Naval Research

41 V. The Brotherhood in Britain's Great Game EXECUTIVE INTELLIGENCE REVIEW

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A/sollwUIIlble o The Significance of the May 1979 o The 1979 Bilderburg Society Conference: Cabinet Change in Mexico. . $100.00 Planning for a New Oil Hoax $50.00 o The New Downturn in U.S.-Mexico o The Jos6 L6pez Portillo World Energy Relations: What's Behind It? $100.00 Proposal $100.00 o The Energy Crisis and the World o The Case of Max Fisher: Zionist Treason Economy: in America $50.00 The Facts and the Future $50.00

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by Nora Hamerman

A cure for a strategic mess

Drastic crises call fo r drastic solutions. Lyndon H. there is no inevitable breakdown crisis in the capi­ LaRouche, Jr., a contender for the Democratic talist sector. The President must take actions to Party nomination, has proposed that "out of love reverse the collapse of the U.S. dollar as the world's fo r his country" President Carter should accept the principal reserve currency. resignation of Vice President Walter Mondale and LaRouche outlines six necessary steps, starting appoint LaRouche vice-presidential nominee.. with the repudiation of the New York Council on Then, "he should plan to resign himself as soon as· Foreign Relations "controlled disintegration" pol­ my confirmation is effected." icy for the world economy, fo r which Jimmy Carter The LaRouche proposal came on Jan. 2, one was handpicked as the CFR's presidential candi­ week after the Soviet coup in Afghanistan. The date. entire U.S. media was filled with announcements Working with French President Giscard and that "detente is dead" and "the Cold War has West German Chancellor Schmidt, the U.S. Presi­ begun." LaRouche, who has warned since 1976 dent must nullify the "conditionalities" policy of that the policies of Carter's backers would lead the the International Monetary Fund and the "appro­ world into a thermonuclear war, promises that as priate technologies" of the World Bank; seek the President he will "cure this mess within 30 days." establishment of a new, gold-backed world mone­ "In the meantime," LaRouche has some specif­ tary system; use this system to generate cheap, ic things to say to Moscow and Peking. "As Presi­ long-term credit for development; reorganize the dent of the United States, I would inform the debt of the developing sector; and restart the capi­ present government of Pakistan that I demand they talist sector economies through a massive program immediately cease-and-desist fr om all involvement of high-technology transfers into the Third World. in the internal affairs of Afghanistan. If the Paki­ Then, the United States could lead negotiations stan government agrees to that demand, then I with Moscow in concert with the European Mone­ insist that no Soviet military operations against tary System countries, based on the May 1978 Pakistan are to occur." accords between Chancellor Schmidt and Soviet But, LaRouche specifies, if Pakistan fails to President Brezhnev. But the Carter administration heed this warning, then he would judge "punish­ has shown itself "unable to take such imperative ment" in the form of search and destroy operations actions." Therefore, LaRouche urges Carter to from Afghanistan as something Pakistan brought make the "patriotic act of resignation" after ap­ upon itself. As for Peking, President LaRouche pointing LaRouche to serve in Mr. Mondale's would advise them to conduct no military opera­ stead. tions into Southeast Asia, and warns that the con­ In the 1970s, as part of the CFR's preparations sequences of rejecting that advice would be borne to install Jimmy Carter in the White House, a Vice by Peking "without aid from the United States." President was replaced by a presidential appointee. The core problem is the Soviet perception, That appointed successor took over when the Pres­ voiced in the Soviet military paper Red Star by Col. ident himself was forced to resign. The alleged Ponomarev, that the West is plunging into its "final misdeeds of Spiro Agnew and Richard Nixon were breakdown crisis." Based on that estimate, Mos­ petty by comparison with the treasonous lunacy of cow is prepared to challenge U.S. initiatives at any the Carter administration. point-from a "war-winning" perspective. The If the human race is going to survive, this time only way to change this is to convince Moscow that the United States urgently requires a President.

EIR January 8- 14, 1980 Editorial 5 �TIillEconomics

The Brandt Commission's

new 6 geo-economic order'

by David Goldman

Proposals that seemed insane when Zbigniew Brzezinski York market Jan. 3) is the parallel rise of silver, copper, and C. Fred Bergsten surfaced them first in 1976, for a platinum, and, most emphatically oil. (see Futures) This "raw materials standard" in world economic affairs, are is not a mere panic reaction of investors but a result now close to reality. At the policy level, proposals for of a deliberate policy turnaround on the part of the U.S. "indexation" of credit to a combination of raw materials, and other Western governments. According to private the stabilization of raw materials prices (including oil) industry metals experts who advise the State Department through "buffer stocks," and the re-direction of invest­ and Treasury on stockpiling policy, the government is ment in the LDC's into raw materials production are the not only committed to a commodity price buffer stocks centerpiece ofthe report of the Independent Commission plan on economic grounds, but is accumulating stock­ on Development, chaired by former West German Chan­ piles of metals it deems strategic. cellor Willy Brandt. Mechanisms to make such proposals The perspective determining this action, according to work are now under close study at the American Treas­ one source, is identical to the content of a recent Center ury. What makes this discussion most ominous, however, for Defense Information forecast of America's security is the enactment of this scenario on the precious rnetals position in the 1980's: the proliferation of local wars in and commodities markets. the developing sector in raw-materials producing re­ The world markets are tumbling into the sort of "One gions, which will threaten America's access to vital ma­ World" scenario that the EIR characterized in its Dec. terials. Among the materials the government intends to 18 cover story. In the words of Bank of England advisor stockpile, these sources report, are copper and silver. Sir George Bolton, the catchphrase is "a run from all This explains the stupendous rise in the silver price and currencies into commodities." The same phrase was used the impressive rise of the copper price (to $1.14 per by Brandt Commission factotum fo r Asian operations pound on Jan. 3), in complete variance with so-called Charles Robinson, Kissinger's old Deputy Secretary of market fundamentals. State and the author ofthe International Resources Bank During the last round of such policy discussion, plan. Robinson and others presented the International Re­ As EIR emphasized in its Dec. 18 coverage of the sources Bank, commodity indexation, buffer stocks and Brandt Commission, less interesting than the spectacular similar plans as humanitarian gifts to the developing rise of the gold price (which closed at $623 on the New sector. Not so now, as Robinson stated in an interview

6 Economics EIR January 8- 14, 1980 transcript EIR obtained and publishes below. Faced with a $65 billion and up balance of payments deficit on current account, the LDC's, including some of the best­ off like Brazil, have been left to forage for themselves. The commodity option presented by the Brandt Com­ mission appears, to the advanced-sector governments, as Iran shutdown to a mere formality following what is already at work on the markets, and as a last way out to the better endowed aid Brandt plan LDC's. Richard Hecklinger, of the State Department's Of Eurocurrency bankers believe that the collapse of the flce of Fuels and Energy, dropped a strong hint in a dollar this week-it briefly touched an all-time low of Dec. 26 interview that a shutdown of Iranian oil 1.69 to the West German mark in Jan. 3 trading-settles exports was being considered as an option by the the question of whether the international banks will Carter administration. resume lending to the LDC's after the near-panic follow­ According to Hecklinger, the curtailment of Ira­ ing the Iran assets freeze. If this did not, the sudden new nian oil supplies would force other industrialized rise in oil prices, bringing the OPEC average price to countries to reduce oil imports, as agreed on at the over $27 a barrel, could well settle the fate of these December InternationalEner gy Agency (lEA ) meet­ countries. ing, and would effect the Brandt Commission's pro­ Options for financing the LDC's now under discus­ posals through "less formal means." Hecklinger's sion'include World Bank guarantees related to energy statement appears below: and raw materials development; commodity price-in­ dexed bonds; or oil-linked debt instruments. However, as Charles Robinson emphasized, the short-term pros­ There is no government position yet on these pects for the realization of any of these schemes are proposals. Part ofthe problem is that OPEC cannot extremely bleak, and "Murphy's Law"-what can go agree among themselves. But I will tell you this: wrong, will-will apply in the months ahead. Prof. Rob­ The Brandt plan could be beneficial. The question ert Triffin of Louvain University told EIR , "The crazy is how much more will prices increase and what rise in the price of gold is a reflection of diffidence con­ would h�ppen to prices with a supply shortfall? cerning all governments' capacity to act." What if Iran went down? ... The near-term implications for both the industrial We're looking at a number of plans. Interna­ and developing economies are devastating. Various com­ tional oil buffer stocks, fo r example, which would mentators, including the editors of the London Times work like those in other commodity arrangements. and the Wall Street Journal, have argued that the gold­ But would producers be able to agree on a quantity oil price constitutes a basic sort of historical inflation of oil to produce? There are a lot ofifs .... index. Both prices have doubled in the past year; as other What we accomplished at the December lEA commodities follow them up, this implies an inflation meeting was quite remarkable. We not only agreed rate far in excess of the current 15 percent dollar inflation on oil import ceilings but got an agreement to rate. If credit is indexed to these prices, as the Brandt adjust these ceilings of supply conditions should Commission and others propose, then "the rate of infla­ warrant it. This is fairly important since last March, tion becomes indeterminate," in the succinct phrase of the maximum we got was an agreement to reduce Princeton University's Peter Kenen. oil imports by two million barrels a day collectively, What will happen to oil prices, which have already and it didn't say when this would happen. To go from there to specific import ceilings, which are undergond a second upward ratchet since the OPEC adjustable, is an important accomplishment. ... meeting (see OIL) is now difficult to project. However, The lEA will meet again to assess supply condi�ions the State Department's Office of Fuels and Energy cur­ in early 1980. If Iran goes down, it will require rently expects Iran's oil exports to "go out" entirely due tough policies .... to one form or another of military action. It must be But it's important to realize that we can emphasized that the Soviet move into Afghanistan makes achieve the same objectives (as the Brandt Commis­ most ofthe State Department's calculations irrelevant. It sion) through less formal means. You have most of is sufficient to emphasize that the current glutted state of the world's oil consumption represented in the lEA world oil stockpiles ensures that any such price rise will and EEC. That's 80 percent of free world oil con­ be hard to put across unless there is a major disruption of sumption, 38 million barrels a day. supplies, and that this consideration must figure in the actions of the British, the Libyans, and others.

EIR January 8-14, 1980 Economics 7 tem: in the relationships between Documentation transnational corporations and most countries .... Most of the world's richer coun­ tries have already promised to give What Brandt's 0.7 percent of their national prod­ IRB-author uct as development assistance .... commission ... Furthermore, such addition­ opens up his al revenues might come from a has proposed modest levy on international trade, bag of tricks seabed minerals, and on arma­ A t a Dec. 17 press conference in ments, objectively the most waste­ Th e following is an interview with London, Second Internationalleader ful of all forms of spending .... Charles Robinson, who served as Willy Brandt announced that the We believe that the present sys­ Deputy Secretary of State under twenty-member Brandt Commission tem of financing development fa ils Henry Kissinger in the Ford admini­ was issuing a call for a "global eco­ to meet some urgent needs. The stration, specializing in Th ird World nomic bargain" to deal with an "im­ existing international institutions, affairs, moved on to become Senior pending catastrophe." It 's recom­ notably the World Bank, have an Managing Director on international mendations will be presented to impressive record and should be energy policy with Lehman Brothers United Nations Secretary General enabled to do more. But many de­ Kuhn Loeb and then Vice Chairman Kurt Waldheim in February and will veloping countries need broader of Blyth Eastman Dillon before es­ be published in March. Excerp ts loans, for programs as well as proj­ tablishing last year the Energy Tran­ from Brandt's press conference ects; and the Eastern countries re­ sition Corporation, of which he is follow. main outside the Bank's structure. chairman. We therefore propose that consid­ eration should be given to the crea­ Q: What activities are you now en­ We have unanimously conclud­ tion of a new universal develop­ gaged in besides the energy field? ed that urgent and drastic steps ment institution with broader par­ A: I'm acting as an adviser to the must be taken to avert impending ticipation.... State Department and Cy Vance on catastrophe.... a number of things, especially on In the transition to the "post­ We propose an immediate Southeast Asia. I had a major initi­ oil" economy, the oil-exporting de­ package of inter-related measures ating role in the ASEAN Business veloping countries and the other which would bring benefits to all Council, which was set up in Feb­ developing countries have a grow­ the parties-the industrialized ruary, 1979 and rapidly becoming a ing common interest with the in­ countries, the energy producers, the cohesive unit-the Philippines, In­ dustrialized nations in a secure middle-income countries and the donesia, Singapore, Malaysia and world economic climate .... truly poor nations. The package Thailand. I've traveled a lot in the We have come to understand has three key elements. They are: a area and met over the years with the that, while the countries of the large-scale transfer of funds to the various government leaders, with North are deeply concerned about Third World, an agreement on the whom we are now cementing closer stagnation, inflation and energy security of energy supplies and con­ ties. supplies, the South faces a threat servation, and a start with key re­ not just to prosperity but to exist­ forms in critical areas including the Q: The U.S. seemed to take a hard ence.. .. monetary system and means of fi­ line toward the Third World in the Many of our proposals are con­ nancing development. 1974-76 period when there was a cerned with the need for long-term, ...The industrial countries, for big push for a new international structural reform of the world's their part, would undertake to safe­ economic order (NIEO). Recently, economic arrangements. We urge guard the producers' earnings and through various moves by OPEC programs of reform in the develop­ to ensure effective energy conser­ and a recent meeting of the Brandt ing countries, who can do many vation. Commission, this push seems to be necessary things only by their own From such a world deal, we be­ rekindled. What are your views resolve. We urge the need for prop­ lieve, everybody would emerge as about what happened then and

er conservation of natural re­ winners. But to achieve a global what is happening now? . _ sources. We recommmend how economic bargain calls for global A: Well, I've been working with the producing countries can not only political will. To create that politi­ Brandt Commission, with people stabilize the prices of raw materials, cal will, we urge the convening of a like Katherine Graham and Pete but also move into processing and new kind of summit conference, in­ Peterson, along the lines of what marketing them .... volving a limited number of nation­ the Commission is calling We suggest reforms in the al leaders from the world's main for ....When developing nations world's financialand monetary sys- regions . ... talk ofNIEO, our job is not to resist

8 Economics EIR January 8-14, 1980 change, but to mold it to the free no question about it, the dollar is about a geo-economic order. You enterprise system. There will always indeed on its way, it's only a matter know, in a sense, colonialism was be some radicals demanding ex­ of time. I think all kinds of things not so bad because at least you had treme things, but that isn't really are going to happen-currency a more-or-less geo-economic order the problem. I firmly believe that blocs, baskets of currencies, per­ back then. We've never found an what we have to talk about today, haps the SDR replacing the dollar. adequate substitute for colonial­ and then, is a geo-economic order, There's just a growing reluctance ism. But that gets you into the phil­ that is what the world must move these days to accept any currency at osophical questions of indepen­ toward to stabilize the chaos break­ all. I think the move to pricing and dence and freedom and the loss of ing out all over in every market­ trading in commodities is irreversi­ sovereignty of nations. But you currencies, trade, commodities, etc. ble. must have some form of order in But let me be clear on one point. this world, and unfortunately that Q: You played a prominent role in It is not OPEC that is bringing up seems like it can only come about the North-South dialogue in 1975- the price of oil. Rising demand is through a sense of crisis. 76, did you not? doing this, and the same thing ap­ What does that mean for our A: Oh, yes, indeed. I was the one plies to commodities generally. We Q: system of government? who virtually set up the first pro­ don't need a cartel to jack up prices, A: In an expanding pie, you can ducers-consumers conference in because the Rimple fact is that we take from the more affluent and 1975. Right now I'm working are doing that ourselves, because redistribute the wealth. But you closely with Bob McNamara of the we are not making the necessary can't do this when the pie is shrink­ World Bank on this kind of thing, investment to expand production. ing, as is the case now. This situa­ though at the time I didn't work as There's no reason why copper, for closely as I would have liked. I tion does threaten our free demo­ example, which is selling fo r cratic system .... But I am not pes­ chaired the 1976 UNCTAD Nairo­ around $1 now would not go up to simistic. bi conference which took up the the $2 mark this year, or $5 or $7 a Third World demands for common little later. Q: When you speak of zero growth fund, and I virtually wrote Henry's and stringent credit conditionali­ (Kissinger) Nairobi speech at that Q: Do you think the role of private ties, aren't you implying starvation meeting. It was there that the idea banks and financial institutions is and sharp population reduction? of an International Resources Bank going to decline? They have cer­ A: I'm not a Malthusian, but in fact was brought up, which was largely tainly facilitated the Third World's we are going to face fo od shortages, Bob's idea along with mine. For a getting credit and circumventing though not immediately. This will lot of bad l1easons, the IRB idea has IMF-type conditionalities. mean starvation, yes, but I don't never really gone anywhere, pri­ A: No doubt about it. International foresee major population reduc­ marily because developing coun­ financial institutions are just going tion. tries have seen it as a threat to the to have to take on a much more common fund idea and diminishing important role. Look, we are run­ Q: What of 1980 then? their returns on raw materials, ning into an inflation problem be­ A: I see continuing inflation, eco­ etc.... But look, as I was saying, we cause we are pressing upon the lim­ nomic slowdown, and in short,the had a hell of a fight in 1975-76 on its of our resources in energy, min­ universal application of Murphy's all this. In 1975, I prepared Kissin­ erals, and waste disposal. There is Law-everything that could go ger's UN speech on all this kind of no way to deal with that challenge wrong may in fact go wrong. The thing, especially regarding the pro­ unless we accept a significant de­ Saudis are walking a thin line and ducers-consumers conference. That cline in our standards of living, un­ face an overthrow, whether didn't happen because the UN dertake many sacrifices, and endure through Marxist terrorism or the blocked it, essentially, because they a loss of national sovereignty-I'm assassination of King Kh�lid. Iran feared they wouldn't be able to con­ talking about the world as a whole, faces ten years of turmoil, breaking trol it, they had a rather proprieto­ not just the U.S. The growth rate down into four or fiveregi ons, with rial notion on these things. That must be brought down to zero; next complete breakdown in 5-10 years. was unfortunate, but as I said, I year we are only going to have The dollar could be finished offthis think this is changing, as the Brandt about 2 percent or so. Whether we year. You know, back in 1976, I Commission work underscores. can reverse this trend to grow is the made sort of a facetious proposal, question, and a crisis seems to be but it's not so far-fetched now. I Q: What is your prognosis for the only thing that can bring this mooted the idea of the "propet" as 19800 Do you think the dollar is on about. the new international currency. its way out, to be replaced by cur­ That would be a currency indexed rency blocs and perhaps the SDR Q: But what about countries not to the two primary energy sources, or ECU? accepting this? And what does that protein for the body and petroleum A: Well, let me answer that by look­ mean fo r the nation-state? for the mechanical energy, that is, 1 ing at the long term first. There's A: That's what I meant before bushel of wheat and 1 barrel of oil.

EIR January 8-14, 1980 Economics 9 Gold by Alice Roth

London's golden bargain Carter Administration support for Th e run-up in gold price reflects a decision on Threadneedle their plan to establish a quasi-offi­ Cial gold standard. The U.S. owns Street to strike a bargain with OPEC over petro-dollars ... the largest government-held gold stock in the world, outside of the Soviet Union, and the U.S., Brit­ Citing Soviet military moves in stocks as collateral with which to ain, and the IMF together control Afghanistan and rising political raise more money to lend to devel­ about 400 million ounces, approx­ instability throughout the Middle oping countries. imately equal to the gold stockpile East, New York traders ended the On Dec. 24, the Financial Times of the European Monetary System 1970s by bidding up the price of of London also suggested that members. Led by France's Giscard gold to a new all-time high of $533 gold guarantees be offered to d'Estaing and West Germany's an ounce on New Year's Eve. Whi­ OPEC to win control of the petro­ Helmut Schmidt, the EMS coun­ le Afghanistan provided a conven­ dollars. In an Op-Ed feature by tries took steps to remonetize Eu­ ient excuse for the goldrush, most David Marsh, entitled "Gold: a ropean gold reserves early in 1979, U.S. analysts failed to grasp the 'myth' comes back to life," the but had planned to use gold­ underlying reason for gold's me­ Times speculated that neither a backed liqu�dity to fund capital­ teoric rise-the decision by top multi-currency reserve system or intensive, high-technology Third British policy-makers to make gold one based on the IMF's Special World development-j ust the op­ remonetization a leading feature of Drawing Right would prove ac­ posite of what the Brandt Commis­ their proposed "global economic ceptable to Middle East investors. sion now envisions. bargain" between the industrial­ The article concluded that: "If they The Europeans have since ized countries and OPEC indeed preferred gold to curren­ shrunk back from these bold plans, London is essentially offering cies, this raises the intriguing ques­ and the British calculate that the the oil producers International tion whether the industrialized lure of an Anglo-American-backed Monetary Fund and U.S. gold countries and the developing "gold standard" should be enough stocks as collateral in exchange for world, rather than talking about to win OPEC over to their side. In OPEC's agreement to funnel its SDRs, should be discussing possi­ the same Op-Ed noted above, the petrodollar surplus through the bilities of directly swapping West­ Times hinted that the U.S. Treas­ IMF and World Bank. The oil ern gold for OPEC oil." ury is about to drop its nine-year monies will be used to roll-over Following Thatcher's triumphant vendetta against gold. The Treas­ Third World debts and finance visit to Washington, London poli­ ury, meanwhile, has failed to hold high-priced "alternative energy cy-makers are clearly banking on a gold auction for two months. sources" and extractive industry in the developing sector, a kind of rebirth of the raw materials-based -G..".--Ido ----(DolIn perou_l------London afternoon filling- 19th century "Pax Britannica." 650

Gold's role in this projected J 600 world economic reorganization is , highlighted by the Brandt Com­ 550 mission in its forthcoming report 'f' 500 "North-South: a program for sur­ - vival." The report, which was writ­ � 450 ten by former British Prime Min­ ister Edward Heath and British ..,.." 400 Commonwealth Secretary General 1- Shridath Ramphal, proposes that 350 the IMF use its remaining gold 11/30 12/6 12113 12/20 12/27 1/3

lO Economics EIR January 8-14, 1980 Foreign Exchange

The dollar in deutschmarks New York late afternoon 1.90

1.85

1.80 � """"'" 1.75 - III""'" �- [""'IIi 1.70 11/16 11/23 11/30 12/6 12113 12/20 12/27

The dollar in yen New York late afternoon 2.60

2.50 1-- .- -- III""'" � A 2.40 "'II1II - I � 2.30

2.20 11/16 11/23 11/30 12/6 12113 12/20 12/27

The dollar in Swiss francs New York late afternoon

1.65 '""

- -� ..- 1.60 - "" ...... ""'" 1\ 1.55

I.SO 11/16 11/23 11/30 12/6 12113 12/20 12/27

The Britiskl pound in dollars New York late afternoon 2.25 � .....� � - � I- ""'" 2.20 �

./ � 2.15 � 2.10

2.05 11/16 11/23 11/30 12/6 12113 12/20 12/27

EIR January 8- 14, 1980 Economics 11 DomesticCredit byLydiaSchulman

In acknowledgement of their services of over 125,000 U.S. auto workers; The income of economists may have contributed a record the 23 percent cut in first quarter auto prod uction schedules fr om amount to the GNP. Otherwise, they didn't contribute much ... last year; the 23 percent drop in machine tool order from October 1 979 was a record year for the fast, before interest rates started to to November, and the across-the­ economics industry. More econo­ fall. By year end, the bonds of top­ board weakening of new orders, mists and economic predictions rated industrial corporations were just reported by the National As­ were produced than during the trading at over 11 percent. The sociation of Purchasing Managers. previous record year, 1929, and the investment banking profession suf­ As for our own 1979 track re­ aggregate income of economists fered a blow to its reputation (and cord, last summer our computer­ contributed a record amount to sustained untold financial losses, ized econometric model predicted Gross National Product. In recog­ following the imposition of Volck­ a fifteen percent drop in real out­ nition, the Exectuive Intelligence er's "anti-inflation" measures last put over a two year period to be Review has decided to bestow Oct. 6. Over the month of October triggered by the. Fed's "tight mon­ awards fo r a number of exception­ the market value of the nation's ey" policy. The EIR also consist­ al performances. portfolio of fixed income securities ently pointed out that high interest Competition fo r the firstaward dropped a sheer 10 percent, as the rates would fuel, not fight infla­ fo r the "Most Unsuccessful Effort bond market suffered its most dis­ tion. Higher borrowing costs, to Fight Inflation" was fierce. The astrous single loss in financial his­ passed on by liquidity-strapped award is shared by fo rmer Federal tory. corporations, were a major source Reserve Chairman G. William The "Cost Corporate Treasur­ of inflation over the year. More Miller and his successor at the ers the Most Billions" award goes significantly, the Miller-Volcker helm of the Fed, Paul "Controlled to those same economists who ad­ high-interest re regime aggravated Disintegration" Volcker. Under vised corporations to put offlon g­ the trend away fr om productivity­ their successive direction, the cen­ term borrowing until the fourth boosting capital investments into tral bank of the United States in­ quarter, when interest rates were high-yielding, fast-buck stituted th e policy of jacking up to have peaked. Thus corporate ventures-betting against the dol­ interest rates to bring down infla­ treasurers borrowed short-term at lar, commodity speculation, apd tion-and ended up with a 15 per­ record rates over the first three gambling stocks. cent rate of producer price infla­ quarters of the year, on the expec­ The outlook for the credit mar­ tion by year end. Miller and Volck­ tation that they would be able to kets in 1980 is for more inflation er will also share the "Positive shift their short-term debt to long­ and higher interest rates, thanks to Feedback" award , given to those term borrowings later in the year. • the U.S. State Department's individuals Who, when a policy is Long-term interest rates have yet support for Islamic fu ndamental­ proven an utter disaster, follow it to peak, and corporate treasurers ism and higher world oil prices to with redoubled effort. are paying as much as two percent­ fo ster "conservation." The "Masters and Johnson" age points more than they would • a related policy to force "div­ award fo r the economics profes­ have in early 1979-if they can get ersification'" out of the U.S. dol­ sion goes to those economists and into the bond market at all. lar, investment advisors who prema­ The "Consistency" award goes • the commodity price indexa­ turely predicted the peaking of in­ to those economists who have con­ tion schemes launched by the terest rates. As early as last April, tinued to predict a "mild reces­ Brandt commission and other su­ when triple-A rated corporate sion" after the economy has en­ pranation�l bodies bonds were carrying yields of 9 tered depression. It is within the • a continued weakening of percent, top-flight investment powers of these economists to be corporate liquidity in the U.S. un­ houses were advising their clients unwaivering in the face of such der the weight of inflation and the to lock into long-term investments indicators as the long-term layoff build up of unsaleable inventories.

12 Economics EIR January 8-14, 1980 CorporateStrategy by Leif Johnson

Is this a "bail-out?" sale of its 75 percent interest in Saving Chrysler is a gesture Carter designed fo r the 1980 Chrysler Credit Australia, Ltd. to elections. But the contents of the package were designed by an Australian subsidiary of the Barclays group, the British bank­ Benito Mussolini ... ing empire which is simultaneously making big inroads into the U.S. After fierce bargaining into the The only "rescue" package that consumer credit business in the early hours of Dec. 21, Congress Wall Street appears willing to sup­ South. passed a purported financial rescue port is one which extracts maxi­ According t() one well-placed package for the ailing Chrysler mum wage concessions from investment banker, unless there is Corporation, which Wall Street Chrysler'S workforce and imposes a spectacular recovery of the U.S. spurces predict will serve as a mod­ severe rationalization on the com­ economy by 1981, then Chrysler el for the reorganization of U.S. pany's overall operations. will soon be on the edge of bank­ industry under depression condi­ "The situation is analogous to ruptcy again. tions. Included in the $3.5 billion the New York City crisis," one Then, this source predicted, the financial aid package-the largest source stated. "The banks like the little talked about "sore point" of in history-are $1.5 billion in fe d­ union will hold out for as long as Chrysler's financial problems will eral loan guarantees and a patch­ possible to get the best deal for emerge: its enormous unfunded work of concessions from the auto­ themselves ...Neither side has any pension liability. Not only will maker's suppliers, dealers, bank­ choice in the matter. Labor has no there be no one to pay Chrysler's ers, and workers. choice, just as it had no choice in retired workers their pensions, but Chrysler's key bank creditors, New York City. And what are the Congress will start raising a fuss led by Manufacturers Hanover creditors going to do-repossess about the fact that many of the Trust, have since leaked to the unsold cars?" major U.S. corporations, especial­ press the possibility that they may The bedrock of the $3.5 billion ly the "employment intensive not come forward with the $500 aid package which Chrysler won ones," haven't adequately funded million in unguaranteed short­ on paper last month are the plans their pension liabilities. term "interim" financing Chrysler to reduce the corporation's em­ A full-scale Congressional in­ needs over the next three months ployment costs and strip down its vestigation into the unfunded pen­ to survive. And it is not at all clear capacity. House and Senate con­ sion liabilities of U.S. corporations that United Auto Worker union ferees settled on $462.5 million as would set the stage fo r one, two, president and Chrysler board the amount of wage and benefit many Chryslers and a government­ member Doug Fraser will be able concessions that Chrysler workers banker reorganization of U.S. in­ to swing his union behind the must give up from their recently dustry reminiscent of the New $462.5 million in new wage and negotiated three-year contract-a Deal's national recovery plan­ benefit concessions that are written contract which already fell short of which in turn was modeled on into the legislation. the general industry pact by $203 Mussolini's economic policy. It is In short, fu ll-scale bankruptcy million. more likely that such an investiga­ proceeding could go into effect for Like New York City, tion would be launched by some­ the nation's number three auto­ Chrysler's basic assets, its plant one like Sen. Jake Javits, who has maker before the end of the month. and equipment, will be drawn and been the leading "pension reform" "N 0 one on the Street has any quartered as part of the bargain. activist in the Congress for a dec­ Chrysler stock anymore, and we Chrysler management is now con­ ade, and has worked closely with would really prefer to see the cor­ sidering selling the company's 15 Lazard Freres, which manages his poration liquidated now, rather percent share in the French auto­ own fu nds, on placing corporate than become a 'bottomless hole' maker Peugeot-Citroen to raise and union fu nds under the control li ke British Leyland," one industry cash to meet its January bills. of Lazards and other "profes­ analyst commented. Chrysler is also negotiating the sional" pension fund managers.

ElK January 8-14, 1980 Economics 13 Futures by Susan B. Cohn

Cartels break the laws in the contract but in the last few The U.S.A. may be heading into a depression, collapsing trading days it became clear that enough copper supplies were avail­ inflatedprices, but strategic raw materials continue upward in able from warehouses to meet de­ value ... according to plan. livery commitments. The two firms which had established the copper "corner" were Engelhard Min­ erals' Philip Brothers division (a firm closely linked to Harry Op­ penheimer's South Africa-based 1 980 could be the year that in the wake of Federal Reserve Anglo American Corp.), and the breaks all the so-called economic head Volcker's October package­ Chicago broker Ray E. Friedman ' laws. Despite prospects of a severe since rising interest rates have & Co. ("Refco"). Philip Brothers V.S. recession or even depression, made it increasingly difficult for has also been active in bidding up analysts expect that prices of many most investors to maintain a silver and gold prices an d plays an primary commodities, particularly "short" position in the market. important role in the Rotterdam copper, silver, and other industrial The "cartel" has been able to re­ oil spot market. metals, will rise sharply. main "long" on silver, because it This may be only the beginning Intensified inflationary pres­ obtains its financing from abroad of the copper squeeze. Phillip's and sures are partly to blame, but the for example, ContiCommodities Refco took delivery on their De­ reason why commodity prices are makes use of an offshore fund it cember copper contracts and are likely to soar in 1980 is primarily established for Arab investors) and apparently in no rush to resell . The poli�cal. The Brandt Commission is therefore not subject to the re­ Commodity Research Bureau, a has called for increased channeling strictions which the Fed has placed private V.S. research firm, is pre­ of advanced sector funds into on V.S. bank lending for commod­ dicting further increases in copper price-propping commodity buffer ity speculation. prices based on evidence of long­ stocks in the Third World. The As a result of the "silver car­ term stocking by industrial users plan has been given an unofficial tel's" activities, the gold/silver ra­ and V.S. government plans to buy stamp of approval by the V.S. tio has dropped from about 2 1/1 for its depleted strategic stock­ State Department and is moving to 15.5/1 in little more than a piles. toward implementation. week. According to ContiCom­ Although agricultural com­ Commodity markets are not modities research director Paul modities have been considerably awaiting the formal institution of Sarnoff, the Hunt family, rumored less buoyant than metals, signs of this policy. Silver, which rose from to have participated in the silver attempted cartelization are also about $5.50 an ounce at the end of squeeze, expects that the ratio will apparent here. Cocoa producers, 1978 to an incredible $34.45 on decline further to 5/1, placing sil­ including Ghana, the Ivory Coast, Dec. 31, 1979, provides the model ver at $106 alongside current gold and Brazil, are reportedly planning for how commodity markets can prices. to set up their own commodity be rigged by a small group of well­ buffer stock following the break­ financed speculators. Beginning in down of negotiations for a new August 1979, British and Swiss sil­ During the last week of Decem­ International Cocoa Agreement. ver bullion dealers, acting in con­ ber, a squeeze in the December The producers may use $200 mil­ junction with V.S. firms like Con­ copper futures contract, similar to lion left over from the old ICft; to tinental Grain's Conti­ that which occurred earlier in sil­ finance the buffer stock. The cocoa Commodities, established a "cor­ ver, was only narrowly averted. effort is modeled on the coffee ner" in the silver futures market. The New York Commodity Ex­ producers' cartel, the so-called This artificially-induced silver change earlier in the month or­ "Bogota group," which helped squeeze has cOt:ltinued-especially dered "liquidation only" trading jack up coffee prices during 1979. \

14 Economics EIR January 8-14, 1980 WorldTrade by Richar d Schulman

A Third World illusion billion, based on a m mtmum of At the direction of UN agencies, developing countries are imports and maximum of exports, withdrawing fr om a "North-South " in fa vor of a "South-South " to a much more likely high of $5 billion. Beyond this, however, Bra­ approach. Another word that applies is suicide ... zil must make approximately $3 billion in payments for such serv­ ices as freight charges and insur ­ ance and then a further $15 billion in interest and principal on its $50 In response to a sharp reduction from the General Agreement on billion debt. This brings the total in lending to the Third World and Trade and Tariffs (GATT) will balance-of-payment and debt fi­ an expected leap in those countries' participate in those upcoming nancing deficit of Brazil to a stag­ deficits due to the increased price talks. Yet, while the Third World gering $23 billion in 1980. of oil, the Group of 77 developing is being advised by United Nations Brazil's financing troubles can nations have agreed to focus dis­ agencies to prepare for "anti-Im­ be expected to be generalized cussion during their January and perialist" economic and trade soli­ throughout the Third World, es­ February meetings on a proposal darity, these countries will soon pecially as the price of a barrel of for increased inter-Third World find themselves solidly isolated oil hits $30 and beyond. Third trade, to the exclusion of the "op­ from advanced technology from World deficits are expected to rise pressive" advanced industrialized the West and further removed an additional $15 to $25 billion in sector. from life sustaining industrial de­ 1980. Moreover, at the same time The germ proposal for this velopment. Without goods from that the Third World needs greater Third World "new solidarity" was the West, Third World economic funds to finance deficits, so will the voiced during a series of talks con­ survival is non-existent. advanced sector. ducted in Geneva under the aegis The current state of Brazil ex­ Under such conditions of com­ of the Group of 77, the Non­ emplifies this point. Brazil needs petition for funds, and with the aligned Nations of the Third $15 billion in new foreign loans in advanced sector private banks un­ World. In December talks, at the 1980, according to a December able to meet all these needs, the prompting of self-styled "radical" interview with Sr. Karlos Rischbei­ World Bank "brains" who also leaders, these nations took under ter, the Brazilian Finance Minister. run the bureaucracy of the Group consideration recommendations This indeed may be a low estimate. of 77 have slipped the Third World for trade reform on an exclusively Brazil's oil import bill is conserva­ leaders an "anti-imperialist" pla­ South-South basis. This includes tively expected to hit between $10 cebo: intra-Third World trade. tariff reductions, lowering of non­ and $12 billion in 1980. On top of The problem with this view is tariffimpor t quotas and favoritism that, according to Brazil's Getulio twofold: first, Third World goods for Third World countries in trade Vargas Foundation, the country's are no substitute for the technolo­ among themselves. This will in­ largest economic think-tank, Bra­ gy and high productivity embod­ clude ways of pushing advanced zil will have to pay $11 billion for died in advanced sector goods. capitalist nation trading compa­ other types of imports. The total Second, such a demand to signifi­ nies out of the developing sector, Brazilian import bill for 1980 is cantly de couple from the West, at or at least greatly reducing their projected to be $2 1-$23 billion. the moment that the world dips influence. Against this Brazil's exports into a w orsening depression will To help formulate the plan's can be expected to be $18 billion guarantee disintegration of Third presentation to the West, the and with a 35 percent export World economies. In that context, United Nations Institute fo r Train­ growth, the export ledger will read self-sufficiency in trade among the ing and Research (UNIT AR), a $20 billion. Thus Brazil's net bal­ Third World should not be dis­ promoter of economic redistribu­ ance of payments deficit will be missed as a bad joke: it will prove tionism, as well as representatives between an improbable low of $1 to be a nightmare.

EIR January 8-14, 1980 Economics 15 Business Briefs

strategic metals called the rebuilding of Commodities IMF auction were: Dresdner Bank the government's three-year stockpiles (Frankfurt, Luxembourg, and Singa­ of strategic raw materials an urgent pore subsidiaries), Deutsche Bank Strategic metals at national priority. The newly formed (Frankfurt), and Deutsche Genossen­ pre-war levels Federal Emergency Management Agen­ schaftsbank (Frankfurt). cy is charged with rebuiding those Trade sources say there is now a stockpiles and is reportedly withholding severe global shortage of physical gold International political tensions were the supplies of materials such as chrome available for sale; much of the recent dominant factor behind the spectacular from industry. U.S. corporations would buying has been by large investors, in­ rise in metals prices the first week in be building up stockpiles of hard to get cluding Arabs" who are investing on a January. "Even before World War II" materials, too, the source added, if it long-term basis, with no intention of re­ there was not such "panic" buying of weren't for the 15 percent prime rate. selling. Given this supply situation, and metals, the BBC commented. continued international political insta­ According to one source, even the bility, gold might very well reach $1,000 sharp rise in the silver price is due to the within the next six months. deteriorating military strategic situa­ Banking tion. He said that the U.S. government has abandoned earlier plans to sell off German banks its supplies of silver, which has impor­ Foreign Exchange tant military uses, and instead will begin dominate gold auction stockpiling as much of the metal as it Dollar sell-off can get its hands on. Like gold, silver is Three West German banks and their in extremely tight supply at the moment, subsidiaries purchased all the gold of­ begins new year which is compounding the upward pres­ fe red for sale by the International Mon­ sure on the price. etary Fund at its monthly auction held The U.S. dollar fe ll to near-record lows On a lighter note: at least one de­ on Jan. 2. The banks paid a record during the first two trading days of partment store in Philadelphia has sold average price of $562.85 an ounce for a 1980. Despite this poor performance, offits stock of silver flatware to an area total of 444,000 ounces. The next morn­ ban kers expressed surprise that the dol­ refinery. With the price of silver now ing gold opened in Hong Kong at an lar had held up as well as it did-leaving higher than gold was ten years ago, all-time high of $648, followed by some the foreign exchange markets to take sterling is a luxury few of the store's profit-taking later in the day. "second stage" to the more dramatic customers can afford. The spectacular run into gold was developments in precious metals. Platinum grabbed the headlines last anticipated well in advance by EIR (see One possible explanation fo r the dol­ week, when it soared $113.90 to $806.50 our regular gold column); it reflects the lar's failure to fall completely through an ounce on Jan. 2. Both its take off and London-engineered disintegration of the the floor is that the latest round of oil the recent rise in the copper price-U.S. existing world monetary system and its price hikes has created an increased de­ producers have now increased their projected replacement with a system in mand for dollars to meet oil payments. prices to between $1.10 and $1.25 a which currency values are indexed to the Nevertheless, rumors are circulating pound-were generally attributed to the price of gold and strategic raw mate­ that the dollar will again be undermined worsening U.S.-Soviet relations. Cop­ rials. in the event of aU.s.-Ira nian settlement per, used in electrical machinery, has Although West German banks do of the hostage question. This could lead obvious military use; the leading world not fa vor the British scenario, they have to a lifting of the U.s. freeze of Iranian supplier of platinum is the Soviet Union. adapted their own investment strategies assets, permitting Iran to withdraw its Platinum, which can withstand extreme­ to it in what can only be described as a fu nds from the dollar at the same time ly high temperatures and friction, is "siege mentality." One West German that other OPEC nations are coming used in the production ofjet aircraft and characterized the gold markets as "in­ under severe internal pressure to "diver­ synthetic fibers, and it is widely used as sane" and declared that "gold will de­ sify" their reserves. (Our regular foreign a catalyst in jet and automobile engines . cline only with an · improvement in the exchange column will resume next week, "The issue of raw material supplies world political situation, which does not with a full aJialysis.) have never been higher on the national seem likely." The gold panic has also On January 3, at mid-day in New agenda" is the way one strategic metals afflicted Paris, where the gold market York , the dollar was selling fo r DM specialist summed up the situation. A had to be closed temporarily on Jan. I 1.7020, FF 3.9960, SF 1.5640, and the report issued last August by a special due to the absence of sellers. British pound sterling was worth government interagency task force on The three successful bidders at the $2 .2425.

16 Economics EIR January 8-14, 1980 Briefly

• ALEXANDER HAIG'S new appointment as president and reduction of oil consumption. Volcker Technology chief executive officer of the said that while conservation and the United Technologies Corp. may development of alternative energy be less than the presidency of the New Carter attacks sources might be finefor the long-term, United States, but it is certainly coordinated actions undertaken through on U. S. technology quite a step up for the five foot the International Energy Agency and two general. Sources indicate, other such international forums are The Carter administration has decided moreover, that as head of the needed in the "here and now." The to speed the closing-down of advanced Hartford-based defense contrac­ present oil market chaos is an "oppor­ technology programs in the United tor, the fo rmer NATO Supreme tunity" that the oil-consuming nations States, according to reports and inter­ Commander is delighted to have should seize immediately to mitigate the views in the Washington Post and Nu­ his finger close to the button impact of rising oil prices on inflation, cleonics Week, a trade journal. The pro­ again. according to Volcker. posed Federal budget for FY 1981, to In view of Volcker's determined be announced in late January, will fe a­ • ALBERT WOJINLOWER, of stance on monetary policy, the theory ture a no-increase stipulation in the the First Boston Corp., contra­ that interest rates have peaked seems fu nding of the magnetic confinement dicting the predictions of "mild sillier than ever. In fact the new , catch fu sion-energy research program; also recession" in 1980, told the annual word in the fi nancial press is fe atured will be major cutbacks in the meeting of the American Eco­ "plateau" -interest rates have plateaued leading laser-fusion project in this coun­ nomic Association in Atlanta last for the moment, before renewing their try, the Shiva-Nova Laser Upgrade ef­ month that the likelihood of fur­ ascent. fort at Lawrence Livermore Laborato­ ther oil price hikes and "economic ries; and in both the fast-breeder, and warfare" among the industrialized high-temperature gas-cooled fission re­ nations could lead to a drop in actor programs. output of 4 to 5 percent in 1980, Accompanying the cuts, which are International Credit fo llowed by a further drop in of a shocking nature from the stand­ 1981. point of the industrial future of the France tries to West, a committee is being fo rmed by • ANTI-GOLD policies on the the Department of Energy to review the cushion oil hikes part of the U.S.A. may soon end. entire U.S. fusion program. This wil be An op-ed in the Financial Times the sixth such "review" in two years, The French government adopted a series last Dec. 24, "Gold: a 'myth' Nucleonics Week reports. of measures Jan. 2 to shield industry comes back to life," hinted that from the effects of spiralling oil prices. the U.S. Treasury is about to drop Export-generating industry is to receive its nine-year vendetta against an additional $1.875 billion in credit gold. The Times cites recent Domestic Credit through specialized lending facilities, Congressional testimony by U.S. while Electricite de France, the state Treasury Under Secretary for New Ye ar's message power monopoly, will be ensured ex­ Monetary Affairs Anthony Solo­ panded financing capacities and in­ mon: " ... in a passage devoid of from Vo lcker creased state aid for the development of the normal demonetisation dia­ nuclear energy, which is regarded as tribes-he stated: 'Gold remains a Any expectations that the Federal Re­ essential for France's future. significant part of the reserves of serve might let up on its tight money In general, however, the sharp in­ central banks, available in times course in 1980 was dispelled by Chair­ creases in energy costs would be passed of need. This is unlikely to change man Volcker in his address to the Na­ on to the consumer almost in toto. in the foreseeable future.' A shift tional Press Club on Jan. 3. The ques­ France's oil import bill is expected to towards grudging acceptance of tion Volcker said he gets asked the most increase 43 percent this year to about the status quo might lead the U.s. is 'will the Fed stick with it.' "My own $25 billion, a price rise that virtually to be rather grateful that its gold short and simple answer to that question nullifies the ability of the government to stocks, although down by half in is: Yes." continue its various subsidy programs volume terms since the war, are Volcker's statement was hardly un­ that have lowered prices paid by the now worth over 120 billion." expected. More telling waS the emphasis population. Aid to the elderly, though, he placed on plans for the coordinated is to be increased.

EIR January 8- 14, 1980 Economics 17 ITrnSpecialReport

How to stop the Muslim Brotherhood

In May 1979 the Executive Intelligence Review published its first investigative report on the Muslim Brotherhood. That report, which demonstrated the Muslim Brotherhood to be an asset of British Secret Intelligence Services and the Anglo- American policy in the Middle East, found its way into newspapers and magazines from India and Pakistan, to Western Europe, and even Iran itself. The world knows what the Muslim Brotherhood is. The question now is how to destroy it. In the intervening months since our first report, the Muslim Brotherhood has done more than hold hostage 50 Americans in an embassy in Teheran . It is holding the United States hostage to a policy of "controlled disintegration" and superpower confron­ tation as put fo rward by the Council on Foreign Relations, the New York command post for London policy . With its fingertip control of the world's oil supplies, it is holding the economies and hence the governments of Western Europe and Japan hostage to the same policy. With its networks of mullahs and kooks distributed throughout the Middle East, it is threatening the Arab world with the hell of more Irans if Arab governments do not play along with the "Islamic card" and cease their aspirations for industrial development. Since May 1979, the Muslim Brotherhood, wielded by London and the stooge government of the United States, has brought the world closer to World War III than the Cuban Missile Crisis of 1962. F or this reason, the Executive IntelligenceRe view is publishing this special report on the Brotherhood, a comprehensive dossier on the Brotherho.od and how it is run, fr om its command centers in Europe to its protectors at th�top throughout the Middle East. This is not only meant to inform our general readership, but to provide a kind of handbook for those political profession­ als and leaders who have the power to begin to dismantle the command structure of the organization. For at least 150 years, it has been the strategy of the British-and later, the Anglo-Americans-to make use of the religious and tribal backwardness

18 Special Report EIR January 8-14, 1980 of the nations of the Near and Middle East and Central the top level-the boardroom of the Royal Institute of Asia in order to control the people of the area and to International Affairs in London or the Oriental studies maintain them in a state of underdeVelopment. departments at Cambridge and Oxford-and the mobs It has recently become obvious that U.S. National in the streets of Teheran or Kabul lies an intricate Security Council Director Zbigniew Brzezinski has been network involving several levels ofirttermediaries. sold on the idea that Muslim fundamentalism , ifproperIy Just under the highest, policy-making level of the guided, can be useful to Anglo-American strategy as a Anglo- European oligarchy and its American allies, there "bulwark against Communism ." Repeated statements is the layer of lawyers, Orientalists, and other profession­ to that effect from spokesmen for the Carter administra­ als whose job it is to formulate the implementation of the tion and, last month, from British Prime Minister Mar­ policy thus decided upon. Beneath them, much larger in garet Thatcher during her visit to the United States, leave number, are the men and women whose job it is to serve no doubt that the Muslim Brotherhood is viewed by the as the direct go-between linking Arab-Islamic leading Anglo-Americans as an ally in a geopolitical struggle for individuals to the inner councils of the Anglo-American control of the "heartland" of Asia. In particular, Brze­ elite; it is they who sponsor the seminars and command zinski and London are of the opinion that the Soviet the institutions, described in detail in this report, that Union itself, because of the presence of a substantial actually deploy the lower-level operatives. Muslim minority concentrated in central Asian prov­ Still lower we findthe field commanders of the Mus­ inces, may be subjected to internal revolt and dissension lim Brotherhood, i.e., its general staff. Still organized in by Muslim fundamentalists among the many Sufi broth­ concentric ci rcles, they are the ones who have the direct erhoods reported to maintain an underground existence responsibility for organizing the shock troops and the in those areas. religious leaders to the epistemological principles that It is precisely that policy that is at least partially un ify the Muslim Brotherhood. They always operate responsible fo r provoking the Dec. 27 military invasion with the tacit support and protection of highly placed of Afghanistan by the Soviet armed fo rces. agents inside the government and military-intelligence What EIR has documented here and in other loca­ establishment of the individ ual Muslim nations. tions (see, especially, fixecutive Intelligence Review, Finally, we come to the "street," the mob. They are "Muslim Brotherhood: London's Shock Troops fo r the the mere rabble, poor deluded souls whose only function New Dark Ages," May 8-14, 1979) is that the ability to is to serve as cannon-fodder in the Great Game. manipulate Muslim fa natics at such a distance is the result of a highly organized chain of command. Between 'The word Ikhll'all, the Brotherhood. written in classic Kut!c calligraphy,

EIR January 8-14, 1980 Special Report 19 I. The European command of the Brotherhood by Mark Burdman

The international apparatus known as erland's Prince Bernhard, head of the Bilderberg group; • � the Muslim Brotherhood is not run out and Atlantic Richfield president Robert O. Anderson, , of the Middle East or other regions of who is also head of the Aspen Institute in the United the Islamic world. It is run out of centers States. in Western Europe emanating out of a primary London­ Islam and the West also findsits origins in the World Geneva axis. of Islam Festival Trust, a group created in 1976 by Following the expulsion of the leaders of the Broth­ British Arabists and Islamics to organize celebrations for erhood fr om the Middle East in the 1950s and I 960s, the beginning of the 15th century on the Islamic calendar. several of them relocated primarily to the European (The Muslim calendar is 632 years behind the Christian continent, where they teamed up with the institutions calendar.) According to press reports from the United associated with the European feudal oligarchy. This Arab Emirates, the fo under of the World Festival Trust, strategic alliance of Islamic cultists and European feu­ Dr. Ezzedin Ibrahim, is also a motivating fo rce behind dalists is the commanding force behind the Muslim the creation of Islam and the West. A director of the Brotherhood and is, also self-professedly, a seed-form Trust, Britain's Sir Harold Beeley, was one of the fo und­ for a new zero-growth "one world order" projected for ing members of the organization. the next decade. The founding conference for Islam and the West was Centers for the Muslim Brotherhood in Europe in­ held at the European Center for Culture in Geneva clude the United Kingdom's Oxford and Cambridge October 4-6, 1979. At the conference, the ideology of universities, Belgium's Louvain University, and Paris's zero-growth was underscored in policy documents. £Cole Pratique des Hautes E.tudes. Other relevant insti­ The organization'S secretary-general, Dr. Marcel tutions have been created more recently, like the Club of Boisard, an IFIAS-affiliated vice-director of studies at Rome and the Stockholm-centered International Feder­ the Geneva School of Higher International Studies, not­ ation of Institutes of Advanced Studies (IFIAS). ed in an interview that the firstpr eparatory meeting for In the view of these institutions' leading representa­ Islam and the West was held in Cambridge in 1976, with tives, pseudo-religious cults, like "Islamic fundamental­ follow-ups in Venice in 1977, and Paris in 1978. These ism," are the vanguard movements in imposing zero preparatory meetings focused on the need for a "new growth. cultural association" willing to discuss the "convergence between Islam and the West" in the context ofthe "need for a new international order." A $10 million budget was 1. Islam and the West (International) allotted for a series of projects including "special studies The reality of the Muslim Brotherhood today is best on the impact of science and technology on the cultural identified by the case of the newly fo rmed group, Islam and social life of both sides"; "studies on the Muslim and the West (International). Conceived three years ago conception of human rights"; and "restoration ofIslamic in Cambridge, England, this group is now based in institutions and establishment of new Islamic centers." Geneva and has become the coordinating center for all The man who serves as the Protestant Church liaison Muslim Brotherhood activities. to Islam and the West is Father John B. Taylor, a director The fu nding for the project came from the of the Geneva-based Ecumenical Council of Churches, a • Islamic Solidarity Fund, a sub-project of the World subsidiary of the World Council of Churches. Taylor has Muslim Congress; been at this position since 1972; prior to that time, the • The International Federation of Institutions of Ecumenical Council employed Idries Shah, the purveyor Advanced Studies, a futurist organization whose fo un­ of Sufi mysticism, as its representative in dealing with ders included the Club of Rome's Aurelio Peecei; Neth- Islamic matters.

20 Special Report EIR January 8-14, 1980 Since 1972, Taylor has been known to maintain con­ tacts with Said Ramadhan , who has operated out of Geneva as a world leader of the Ikhwan, since he was ej ected fr om the Middle East by Egypt's Gamal Abdel " The Brotherhood Nasser and other Arab leaders in the 1950s. will take over" In an interview in December 1979, Taylor praised the Khotneini revolution in Iran as part of an "Islamic Bishara Khader. director of the Center fo r Research renaissance," and stressed that despite indications that in the Contemporary Arab World at the Jesuit Lou­ Khomeini could not fo r long control the situation inside vain University in Belgium. gave an interview to EIR. Iran, "other nations will be touched by the Islamic As the quotes show. the Society of Jesus has no revival." Included in these are Turkey, where "religious qualms in giving comfort to Islamic fu ndamental­ clergy will take over"; Egypt; and Algeria, where "the ism; the underlying outlook of the two strains is the Muslim Brotherhood is very important." same. Khader works closely with a number of Muslim Brotherhood support groups across the Eu­ ropean continent. including the London-based Coun­ 2. Islamic Council of Europe cil fo r the Advancement of Arab-British Under­ One of the "observers" at the fo unding conference of standing and Italy's Lelio Basso Foundation. Islam and the West was Salam Azzam, secretary-general of the London-based Islamic Council of Europe. It is not While I consider the taking of hostages to be a known at this point if Azzam and Dawalibi worked out political error, the real problem is right now the any joint projects for their two organizations, but it is anti-Islamic campaign waged by the Western clear that the Council is the most important institution in world. All this, if it goes on, will have very bad implementing the "fundamentalist" policies made by the effects on the Arab-European dialogue. The Islam­ directorate in Islam and the West. ic countries will lose confidence in Europe. Salam Azzam and his brother Abdel-Rahman Azzam There is now definitely a renaissance of Islam. were both leaders of the Ikhwan, who resettled to Lon­ It is a militant Islam, and must be accepted. The don after being expelled from the Middle East. In 1973, West must accept it. Up til now, the West has just Salam Azzam began to put together the Islamic Council, displayed double-talk and double-dealings, and the and by 1976 the organization was holding its firstmajor Islamic countries are becoming quite suspicious. conference. The entire Muslim world is now striving for auton­ In 1977 the ICE's premises were laid out in a confer­ omy, and is rejecting the so-called Western model. ence on "The New Muslim World Order." A keynoter at F or years, the developing sector was forced to catch the conference was the resident economist at the U niver­ up with history because of the principles that the sity of Louvain in Belgium, Robert Triffin.Triffin called "Western model" had to be applied. That simply for the creation of an "Islamic dinar," as the basis for an doesn't work anymore; the Muslim world and the "Islamic dinar currency bloc" which would, in turn, be a whole developing sector is striving now fo r its central component of a "new world monetary order" autonomous development. This is definite. based on interconnected regional currency blocs, such as All this has interesting implications for the a yen bloc, a deutschemark bloc, and so on. After Triffin question of the Muslim Brotherhood. For years, spoke at the 1977 ICE meeting, his "Islamic dinar" the Brotherhood has only been a marginal group­ proposal was enthusiastically endorsed by Saudi Prince Mohammed bin-Faisal. ing, but now the international economic situation Since 1977 the Islamic Council has maintained a high is allowing all groups, even those who were margin­ profilein Europe. Late in 1979, it organized an interna­ al in the past decades, to re-emerge stronger than tional seminar on Jerusalem, in an effort to build up a before. They'll grow and become very powerful. cult obsession with the city. The Council has also pro­ All that depends on the present rulers of the Islamic duced several important sub-organizations, including c.ountries. If they decide to satisfy their masses, to the Islamic Press Union, the Islamic Committee for the meet the basic needs materially and spiritually, to Liberation of Muslim Lands (which includes the Islamic open up their societies politically, then the change Liberation Movement of Iraq), and the International can be made smoothly. But with the general renais­ Commission on Muslim Minorities. The last group will, sance of Islam, the general re-awakening, if these in 1980, hold a series of conferences: one will be jointly rulers do not change their policies, then the margin­ held with the UN's UNESCO affiliate; a second will be als, the Brotherhood, will take over. held in Sarajevo, Yugoslavia, jointly with the Islamic

EIR January 8-14, 1980 Special Report 21 Council of Bosnia, in what is shaping up to be the first and many British lords. It is supported by Barclay's org�nized fundamentalist meeting in Eastern Europe. Bank, British Aircraft Corporation, British Bank of the Of all the Council subsidiaries, the most significantis Middle East, Lazard Brothers, Lloyd's International, the Islamic Institute for Defense Techology, the organ­ Lonrho, National Westminster Bank, Rolls Royce, and izing point for the connection between NATO and Islam­ Unilever. ic fundamentalism. The Anglo-Arab Association is run by Sir John Bagot Glubb, the fo rmer commander of the Jordanian Arab Legion and Middle East specialist. 3. The European network CAABU and the Anglo-Arab Association maintain The Islam and the West and the Islamic Council have regular working relations not only with the Islamic at their command a vast network in Western Europe, Council in London, but with several other organizations, spanning several major European cities, which has a including the Islamic Foundation, located in Leicester, capability for organizing, from abroad, throughout the England, and the Federation of Islamic Organizations in Middle East and other parts of the Arab world. Europe. The Islamic Federation is headed up by the Minister of Federal Planning of Pakistan, Khurshid The United Kingdom. The Islamic Council receives enor­ Ahmad; it has recently opened up an affiliate in Geneva. mous backing from an interlocking directorate of British institutions, including the Royal Institute of Internation­ Switzerland. Supporting the Islam and the West nexus is al Affairs; the Council fo r the Advancement of Arab­ the Geneva International Institute for Islamic Studies British Understanding (CAABU) also known as the headed by exile Brotherhood leader Said Ramadhan. Arab-British Center; the Anglo-Arab Association; the Also critical is the Geneva Institute fo r Higher Interna­ Arab�British Charitable Trust; the Labour Middle East tional Studies, locale of Islam and the West secretary­ Council; and, until its recent closing, the Beirut-based general Boisard and of Swiss banker Krul, who is a but London-run Middle East Center for Arabic Studies. personal adviser to the Emir of Dubai. Of these, the two most important are the CAABU Switzerland is also home base for one Yusuf Nada, conglomerate and the Anglo-Arab Association. The for­ who operates out of the city of Lugano. Nada is a mer has among its leading members Sir Harold Beeley businessman who uses his wealth to fu nd Muslim Broth-

Brotherhood does indeed have a name, a structure, in the Jamaat-e-Islami; and similarly in Indonesia it has another name. But without any organization as such, " Khomeini closest to truth" most people who are working for Islam are working fo r the Brotherhood. For that we do not necessarily In an interview recently in Western Europe, Said Ra­ need a clergy . madhan, a former leader of the Muslim Brotherhood in Look, what is happening in Iran is the direct Egypt who is now based in Geneva, commented on the responsibility of the western cultural invasion. We rise of Brotherhood influence throughout the Middle need now a return to the true Islam. King Feisal of East. Saudi Arabia, Boumedienne of Algeria, Nasser of Egypt, they all talked aboutjhe need for certain kinds Take a look at Saudi Arabia. With all the oil they've of changes similar to those in the West, and what got, they have not been able to convince the Bedouins good did it do? to change their way of life, so there are a lot of troubles What we need is a return to the true theology. For in the kingdom. There is no question that the unrest in you, the Middle Ages were a dark period, but for us it Mecca was unprecedented; it forced Prince Fahd to was the period where Islam was a real community, an ' cancel a scheduled trip to London, and the level of "umma." That's what I learned from the fo under of operations at the mosque implied extensive aid from the Brotherhood, Hassan el-Banna: Islam is a large within the ranks of the army and national guard. club, an umma. But it's not a question of the Brotherhood organi­ In that sense, Khomeini is closer than anybody zation as such. In some places, like Pakistan, the else to the truth.

22 Special Report EIR January 8- 14, 1980 The Muslim Brotherhood network in Europe

The leading Muslim Brotherhood agencies and controllers on the European continent include the following:

UNITED KINGDOM London Salam Azzam, Sec'y Gen'l, Islamic Council of Europe" Sir Harold Beeley, Council for the Advancement of Arab-British Understanding The Federation of Islamic Organizations Leicester Kurshid Ahmad, Director, Islamic Foundation

SWITZERLAND Geneva M. Dawalibi, Islam and the West International Said Ramadhan, Institute for Islamic Studies Lugano Ghalib Himat Yusuf Nada

WEST GERMANY Aachen Issam Al Attar, Mosque Bilal Bonn Dr. Chbib, Islamischen Zentrum Munich FRANCE Paris West Berlin Hans Seidel Stiftung Islamic Center-"The International Division 6, Ecole Pratique des Dr. Salah Eid Organization of the Muslim Hautes Etudes Cologne Brotherhood Association" French Institute of Iranology Abdul Jawad Falaturi , Islamic Dept., Fatima Hereen Sarka, Gesellschaft Islamischen Wissenschaftliche fur Auslandkunde Akademie Islamischen Kulturzentrum

Hamburg BELGIUM • Subsidiaries of the Islamic Council of Europe Islamischen Zentrum Louvain include: The Islamic Institute of Defense Director, Center of Technology; The Islamic Committee for Deutsche Muslim Liga Bishara Khader, the Liberation of Muslim Lands; The Islamic Council for the Liberation of Contemporary Arab Studies, International Commission on Muslim Afghanistan University of Louvain Minorities

. EIR January 8-14, 1980 Special Report 23 erhood projects, primarily in Egypt and in the United Welle (Voice of Germany) radio station, which is inte­ States, through the Muslim Student Association head­ grally tied into the Jamaat-e-Islami through one Dr. quartered in Plainfield, Indiana. Kukuck. The director of the Law and Islamic Studies departments of the Cologne University, Dr. Abdul Ja­ West Germany. From the London-Geneva axis, the next wad Falaturi, was a fo unding member of Islam and the most important base of Brotherhood activities is Aachen, West. West Germany. Located there is Issam al Attar, former In Berlin resides the leader of a radical wing of the head of the Syrian branch of the Ikhwan and a close Brotherhood, the "AI Tahrir" group. This is one Dr. associate of Dawalibi. In the city, the key foci of activity Salah Eid, who is feared among Muslims in Europe, are the Mosk Bilal and its Islamic Center, the acting since the Al Tahrir institution has been respqnsible for director of which is a converted German named Mo­ many assassinations and bombings in the Mideast. hammed Siddiq Borgfeldt, who was arrested f-o r espio­ In Bonn, the most important institution is the Islamic nage in the Sudan in the early 1960s. The Mosk Bilal has Center, headed by a Dr. Chbib, who is a Syrian collabo­ served for months as a meeting place for the local Iranian rator of Issam AI-Attar. Khomeini Committee. Second after Aachen in importance in West Germany Belgium. Belgium is the home of the University of Lou­ is Munich, home of the Hans Seidel Stiftung, the policy­ vain. The Louvain institution involved in Brotherhood making institution of Otto von Hapsburg. The Stiftung's activities is the Contemporary Arab Studies Center, representative in Cairo, Rainier Glasgow, has connec­ headed by Dr. Bishara Khader. Khader receives much tions with the Muslim Brotherhood there. The Stiftung's counseling and support from the Brussels-based Belgian Dr. Dieter Schmidt, the director for international affairs, Center for the Contemporary Muslim World, headed by helps coordinate Ikhwan networks among the mullahs in Dr. Jacqueline Gilisen, a founding member of the Islam Afghanistan. and the West project. Munich also houses the second most important Is­ lamic Center and Mosque in West Germany after Aach­ France. Among the North African immigrants in Clichy, en; the Center refers to itself in public literature as the a northern suburb of Paris, there is a Mosque Nur, "International Organization of the Muslim Brotherhood headed by Mohammed Hamidullah, who has written Association." scores of books on Islam. Hamidullah is in close touch Other Munich organizations include the Committee with AI-Attar and is a member of the Islamic Council of for the Iranian Islamic Republic, set up in February Europe and of the International Board of Governors of 1979, and instrumental in running blackmail operations Said Ramadan's Institute of Islamic Studies in Geneva. against anti-Khomeini Iranians in Western Europe; and Paris is home base for an extensive group of "Islami­ the Gesellschaft fii r Auslandskunde, headed by the cists," who have popularized a "mystical" Sufist inter­ daughter of the Nazi Finance Minister Hjalmar Schacht, pretation of Islam. Two of these, Henri Corbin and Jean a man who himself opened up extensive contacts in the Franltois I'Herte, have been leaders of the French Insti­ Middle East before his death in the mid- 1950s. tute of Iranology, which has promoted "an original The leading light of Muslim Brotherhood activities Iranian identity" and has pioneered studies on Sufism in Munich is · one Fatima Hereen Sarka, a converted and mysticism. Czech whose family was involved in the Nazi intelligence Corbin, I'Herte, and a third Islamicist, Louis Massig­ service's "eastern division." She now runs a "women in non, cooperate closely with the cultist anthropology and Islam" project fo r the Islamic Council in Europe. sociology departments of the Paris-based School of Four other West German cities key for Brotherhood Higher Practical Studies and of the Sorbonne, training coordination are: Hamburg, Cologne, Berlin, and Bonn. grounds for Third World "radical" zero-growth ideo­ The Hamburg Islamic Center is a training-site for logues such as Cambodian Khmer Rouge ideologue leaders of the Khomeini movement. The current head of Khieu Sam ph an and Iranian Economics Minister Abol­ the Iranian Revolutionary Council, Ayatollah Beheshti, hassan Bani-Sadr. was the imam of the Center right up until the February This group, in turn, works with a pro-Khomeini · rise to power of Khomeini! Islamicist circle around the French Communist an� So­ Hamburg is also the center for the Islamic Council cialist parties, in part through the agency of EPHE for the Liberation of Afghanistan, and for the Deutsche director of Islamicist studies, and former CP member Muslim Liga of one Dr. Neuhaus. The Liga is a center Maxime Rodinson. The Islamicist-communist interface fo r German who converted to Islam after World War II. historically is the network out of which much of the Cologne houses several Brotherhood-connected insti­ "radical anti-imperialist" wing of the Ikhwan has been tutions, including the Asian bureau of the Deutsche created in this century.

24 Special Report EIR January 8- 14, 1980 Documentation guard and preserve- its territorial and ideological boundaries ....The world today is witnessing a new kind of political awakening among Islamand the West: the Huslims." The HDT: Following Azzam, the confer­ technology fo r ence was keynoted by A.K. Brohi, Islam meets NATO the former Pakistani Supreme a dark age Court President who cleared the This publication has charged, in path for the execution o f Zulfikar Th ese are excerpts fr om a policy the face of some skepticism, that Ali Bhutto in 1979. proposal made at the October 4-6. the Muslim Brotherhood Interna­ Echoing Azzam, Brohi de­ I 979,founding conference in Geneva tional works with the NATO com­ clared: "Muslim countries occupy of Islam and the West (Internation­ mand in seeking a common anti­ a geo-strategic situation on the al). Th e proposal is entitled " Science Soviet geopolitical policy. This globe which enhances their impor­ and Technology in the Economic and charge has been borne out in the tance in terms of defense, since Cultural Development Process of the recently released statements by the many are situated on some of the Western and the Islamic World. " It Shah of Iran implicating NATO world's vital land and sea routes. was prepared by the International General Robert Huyser in the Feb­ ...Mu slim countries must aim at Federation of Institutes fo r Ad­ ruary installation of the Ay atollah self-reliance in defense prepared­ vanced Study. Khomeini in power in Iran. It is ness. This will serve as a deterrent also borne out by an investigation against encroachment upon their We have to return to a more spirit­ of the newly formed Islamic Insti­ territorial integrity and their Islam­ ual conception of life: the entire tute for Defense Technology. ic way of life which they cherish so world is one, it is only man's blind­ The Islamic Institute was creat­ dearly.. ..A concerted effort has to ness which darkens its unity .... ed in late 1978 by the Secretary be made to revive the true Islamic Will it be possible to reduce in General of the Islamic Council of spirit to enable the world of Islam an adequate way the inequalities Europe, Salam Azzam, who now to meet the ideological, economic between nations and inside each na­ serves as president on the Institute's and military challenges of the pres­ tion itself? Will it be possible to board of governors, while M u­ ent era." maintain at an acceptable level the azzam Ali, head of the Islamic Press Following Azzam and Brohi, pressures on the environment and Union (an Islamic Council subsidi­ other speakers included: Handel on the natural resources of the ary) serves as the Institute's secre­ Davies, technical director of British world? tary general. Aerospace; Ahmadou Karim Gaye, These two problems are inter­ The inaugural seminar of the General Secretary of the Islamic dependent. If inequalities should be Institute was held in London, fr om Secretariat; Necmettin Erbakan, reduced through an increase of the February 5-9, 1979. In attendance head ofthe National Salvation Par­ production and ofthe consumption were a wide range of military strat­ ty in Turkey; Air Chief Marshal per capita in the developing sector, egists and officers fr om both the Zulfikar Ali Khan, former chief of the pressures on the resources and Islamic world, in particular Gener­ the Air Staff in Pakistan; Kurshid on the ecological system could be­ al Zia's Pakistan, and from the Ahmad, Federal Minister of Plan­ come too high. Similarly all effort NA TO-related command, in par­ ning of Pakistan and head of the to reduce this pressure could on the ticular from the United Kingdom. Islamic Foundation in Leicester, other hand prevent the economic The organization's statutes England; General Syed Ali N awab development of the Third World committed the Institute to procure­ of Pakistan; General Michael Dav­ and lead to dissatisfaction, and ment of the most sophisticated ison, Former Commander in Chief even to serious social and political weapons systems available. For this of the U.S. Army in Europe; and difficulties. reason, observers regard the Insti­ leading military specialists fr om The traditional argument in the tute as the likely coordinating Egypt, Morocco, Saudi Arabia, the Western world says that the solu­ agency for the "Pakistani" or "Is­ United Arab Emirates, and Turkey. tion to this challenge lies in "science lamic" bomb due to be detonated Themes of panels included: and technology" which would sup­ some time during the present year. "Power of Creed in Islam"; "Islam­ ply the techniques of production The seminar was officially wel­ ic Concept of Security"; "Military capable of answering such material comed by Salam Assam, who locat­ Tho ught in Islam"; "Recent Devel­ demands of man. Nonetheless it is ed the need for technology-pro­ opment in Aerospace Weapons far from certain that the Western curement: "The presence of so Systems and Air Defense"; and model of development-in which many is a clear manifestation of the "Transfer of Technology-Efforts science and technology have a cru­ Muslim world's firm resolve to re­ and Programs for the Muslim cial role-is also appropriate for establish its Islamic identity and to World." other social and cultural situations.

EIR January 8-14, 1980 Special Report 25 · ..Science and technology have to Founders of Islam and the West be adapted to the specific environ­ ment and not the other way around. This is the list of the board of directors and founding members of Islam They should be used by man, and and the West (International): not the contrary .... The first lesson of Islamic sci­ Dr. Ma'arouf Dawalibi, President. Currently a Saudi Arabian citizen and ence is its insistence on the notion president of the World Islamic Congress, Dawalibi was a 1950s Syrian of a balanced equilibrium for the prime minister and chairman of the Syrian People's Party. use of the world's resources, an Dr. Everett Clinchy (U.S.A.), Vice-President. Secretary General of the equilibrium which would not de­ Institute of Man and Science. stroy the ecological order of the Lord Caradon (U .K.), Chairman of the Executive Council a nd Moderator environment, on which collective of the Transitory Committee. Caradon is a veteran British Middle East survival is finally depending. specialist, with particular experience in Cyprus and Jerusalem. Islamic technology is in a sym­ Dr. Sayed H. Jafri (Pak.), Vice-Chairman of the Executive Council. biosis with man, in a way that is difficult- to understand for those Professor and co-editor of Hamdard Islamicus. who are identi fying technology Dr. Marcel Boisard (Switz .), Secretary-General and Western Commissar. with the notion of a modern ma- Affiliated with the Geneva International Institute for Higher Studies chine, ... enslaving the spiritual and the Stockholm-based International Federation of Institutes fo r man .... Advanced Study . We in fact notice that in most Western societies the man in the Prominent among the founding members are: street has more and more difficulty Dr. Nadjmoud Dine Bammate (Afghan.), retired deputy-director of understanding all the information, UNESCO. as well as adpating himself to the Sir Harold Beeley (U.K.), former British ambassador to Egyp t, president rapid changes. This is in fact lead­ of the World of Islam Festival Trust. ing to alienation and a growing Dr. Abelazi Banabdallah (Mor.), director of the Permanent Officefor the frustration against which no west­ Arabization of the Arab World. ern society has fo und remedy .... Dr. Harrison Brown (U.S.A.), former president of the U.S. Academy of With the ra pid introduction of Science, director of the Institute of Human Resource Systems. automation and of electronics, the Alistair Duncan World of Islam Festival Trust. Western world has freed itself from (U.K.), director, a monotonous world that is psy­ Dr. Jacqueline Gilissen (Bel.), secretary-general of the Belgian Center for chologically degrading . ...But this Studies of the Contemporary Muslim World. type of development has led to an Dr. Ezzedin Ibrahim (U.A.E.), cultural adviser to the ruler of the United increase in leisure, and in unem­ Arab Emirates, Sheikh Zayed, board of directors of the World of ployment. It would be probably Islam Festival Trust. very interesting to analyze, in the Dr. Nicholas Krul (Switz.), economist and banker, adviser to the Emir of Western and Islamic perspectives, Dubai. the social and spiritual conse­ Dr. Sam Nilsson (Swed.), executive director of the International Federa­ quences of a production that is al­ tion ofInstitutes for Advanced Studies. ways more automated, as well as Dr. Aurelio Peccei (Italy), president, Club of Rome. the concept of work and of the par­ Dr. Kazem Radjavi ticipation of man in a society where (Iran), lecturer at the Institute fo r Development he is no l onger directly associated Studies; permanent representative of the Islamic Iranian RepUblic in with the production of goods .... Geneva. Dr. Zia Rizvi (Pak.), director of the Office of the UN Commission fo r Th e proposal ended by calling for a two-year "special symposium" to Refugees in Rome. take place, whose results would be Mr. Henry Schmitt (Switz.), former president of the government of published in /98/, and which would Geneva. aim to influenceleading intellectual Among these, Brown, Krul, Peccei, and Schmitt agreed to take up "task� circles in the West and in the Islamic and responsibilities in the Islam and the West Organization." world; government institutions; United Nations bodies; and business­ Observers at the fo unding conference included Salam Azzam, Secre­ men. tary-General of the Islamic Council of Europe; Mr. Yahya Basalamah of the Islamic Foundation of Geneva; and Zafarul Islam, firstvic e-secretary general of the Organization of the Islamic Solidarity Conference.

26 Special Report EIR January 8-14, 1980 II. The Muslim Brotherhood in the Middle East by Robert Dreyfuss

The rise to power of Ayatollah Kho­ Special Envoy of the Arab League to the United States, meini and the Muslim Brotherhood in Dr. Clovis Maksoud, is the quintessential Arab example Iran, backed by the Anglo-American of this sort of character. But more typical of the leading intelligence services, has posed the gra­ Muslim Brotherhood sponsors and controllers in the vest threat in centuries to the national security of nearly Middle East is the sort of individual whose family back­ every Muslim nation. Under Khomeini, an entire nation ground, probably for generations, places him in the is now ruled by what-until very recently-was an un­ category of the comprador elite, with business or intelli­ derground terrorist clique committed to violence and gence links to the European black nobility and, especial­ subversion. The Iranian regime is committed to use any Iy, the British oligarchy. and all political methods to succeed in what, at least There is one common misconception concerning the among some of Khomeini's circle, is considered to be a Muslim Brotherhood. It is often asserted that the Muslim sacred task: the establishment of the nizam al-islami (the Brotherhood is a "Sunni" organization-that is, adher­ Islamic order). ing to the majority, orthodox Muslim tradition-while Throughout the Mideast, the Muslim Brotherhood is Ayatollah Khomeini and his movement is "Shi'ite," drawing new strength fr om the Khomeini regime-in­ referring to the faction which emerged as an independent cluding, according to sources in the Iranian community, fo rce some years after the death of the Prophet Mo­ massive fi nancial assistance. hammed. In fact, no such distinction is valid. The mem­ But if the Muslim Brotherhood were simply a prob­ bers of the Muslim Brotherhood are selected on the basis lem of small, poorly organized terrorist bands, it would of an ideological commitment that transcends the other­ hardly be a problem of major political significance. For wise traditional Sunni-Shiite divisions. The Iranian any Muslim nation, fundamentalist student mobs, fanat­ branch ofthe Muslim Brotherhood, called the Fedayeen­ ic sects and cults, and extremist cells of medieval kooks e-Islam headed by Ayatollah Khalkhali, has for years would be nothing more than a police problem . cooperated closely with the official lkhwan al-Muslimun. However, the Muslim Brotherhood poses its threat on a far higher level. It is no exaggeration to state that in every Arab government, Turkey, and many Asian nations, the Muslim Brotherhood enjoys the active protection of 1. Syria: citizens above suspicion ministers, intelligence officials, military officers, and Within the next few weeks and months, the world others at the very highest levels. may witness Syria's surrender to the Anglo-American Investigators who seek to track down the leadership regional design in committing its national purpose to of the Muslim Brotherhood findtheir investigation mys­ back Ayatollah Khomeini. Should that occur, the fall of teriously killed on orders "from the top." Security offi­ the regime of President Hafez Assad is a near certainty, cials and law-enforcement agents pursuing Ikhwan ter­ as Egypt's President Sadat-himself a confirmed ex-ter­ rorists are suddenly assassinated. Top politicians hesitate rorist of the Muslim Brotherhood-stated this week. before opening up the question of the Ikhwan because of Historically, as Syrian politicians well know, the direct knowledge or innuendo and rumor that some Mr. Muslim Brotherhood has fo r decades been one of the Big does not want his toes stepped on. According to tools of British imperialism in combating the infl,uence Arab sources, the Muslim Brotherhood is greatly assisted of France and especially Charles de Gaulle in SyrIa and by simple corruption. The huge quantities of cash that Lebanon. As the French had primarily established their flow into the coffers of various Persian Gulf rulers have allies in the Christian Arab community of Syria and created an entire strata of venal officials. The current Lebanon, the British used the Sunni Muslim commu-

EIR January 8-14, 1980 Special Report 27 nity-usually funded from the Gulf states, Jordan, and especially military and intelligence personnel. The most (in earlier times) Iraq-as a battering ram against gruesome was the massacre of over 60 Syrian military France. That British-Saudi influence was based primarily cadets in Aleppo by the Muslim Brotherhood, on the around the triangle of the Syrian cities of Horns, Hama, same day that President Assad left for a crucially impor­ and Aleppo. tant state visit to Iraq, in August 1979. Despite some In 1944, when the British began their final push at the relatively minor arrests, not a single Muslim Brother­ close of World War II to oust French influence in the hood leader has been arrested. Among the organizations Levant, the so-called Youth of Mohammed was estab­ reported to be behind the wave of assassinations are the lished as a branch of the then-powerful Egyptian Ikhwan Kataeb al-Haq (Falangists of the Right), whose leader al-Muslimun. From that time on, the Syrian Muslim Sheikh AI Wani has mysteriously escaped arrest for two Brotherhood has acted, more or less continuously, as a years; and the A I Jihad al-Mugadess (the soldiers of the British intelligence asset. In 1973, for instance, when Holy War). Assad was assembling the Syrian state constitution, riots The reason for the lack of arrests of Syrian Muslim and demonstrations by Saudi-funded Muslim Brother­ Brotherhood terrorists, according to Syrian sources, is hood networks in Horns and Hams fo rced the govern­ that they enjoy the protection of leading Syrian circles. ment to compromise by declaring Syria to be a religious Syrian sources say that within the leadership of the state. Syrian Baath Party there are many sympathizers of the During the 1950s, the Muslim Brotherhood in Syria Brotherhood, especially among fo rmer supporters of the was led by Maruf Dawalibi, Mustafa Sibai, and Muham­ deposed President Salah Jadid. Two important figures mad Mubarak. The Muslim Brotherhood controlled the stand out as traitors to the Syrian government: Col. People's Party of Syria, whose strongholds were Horns Rifaat Assad, the President's brother, who commands a and Aleppo. Though nominally a strongly anticommun­ special military brigade; and Deputy Prime Minister ist organization, the Muslim Brotherhood in Syria dur­ Mohammed Haider, the economic czar. ing this period adopted a fo rthright position in support Both Rifaat Assad and Haider are Alawites, a minor­ of establishing close political-military cooperation with ity sect in Syria that dominates the present regime. Many the Soviet Union. Dawalibi, a leader of the People's of the recent assassinations were directed against the Party and for a time the Syrian prime minister, declared Alawite minority, ostensibly by the "pro-Sunni" (ortho­ that Syria ought to sign a nonaggression pact with the dox) Muslim Brotherhood. However, Haider and Col. Soviet Union, while Mustafa Sibai-of the "Islamic Assad are secretly encouraging the anti-Alawite assassi­ Socialist Front"-declared, "We are resolved to turn to nations in order to strengthen the case for Alawite sepa­ the eastern camp if the Democracies do not give us ratism and to weaken the central government, and thus justice." Col. Assad and Haider-who reportedly has ties to Dawalibi was forced into exile from Syria in 1963-64, Rumanian intelligence-collaborate with the Ikhwan! and he took up residence in Saudi Arabia. At the same President Assad, who is reportedly at least partially time, the current head of the Muslim Brotherhood in info rmed of these fa cts, is unable to act because he Syria, Issam ai-Attar, who was then a member of the depends to a great extent on Col. Rifaat Assad's security Syrian parliament, was also forced to leave Syria, first forces to protect his regime, and on the Saudi backers of for Beirut and then West Germany, where he presently the Ikhwan for financialassistance. resides. To this day, Attar and Dawalibi maintain close Furthermore, the Muslim Brotherhood is supported contact. Dawalibi is a leading political adviser to King from across the Syrian border with Lebanon. Both ele­ Khaled of Saudi Arabia. He also sits on the board of the ments in the fa scist Christian Falangist community and newly formed organization, Islam and the West. among Lebanon's Shiite AI-Amal organization give According to the Syrian press, certain official circles weapons and financial help to the Muslim Brotherhood. in both Saudi Arabia and Jordan provide logistical and The AI-Amal group, in southern Lebanon, has close ties military assistance to the Muslim Brotherhood terrorists with the new Khomeini regime. The Muslim Brother­ in Syria, and there are many reports of paramilitary hood is based on the northern Lebanese city of Tripoli. training camps in Jordan where the Ikhwan thugs are Through Lebanon, Israeli intelligence lends direct trained. In at least one instance, Syria also charged that backing to the Muslim Brotherhood. the Palestine Liberation Organization-which has close ties with the Muslim Brotherhood-was, in Lebanon, responsible for training Ikhwan terrorists who then as­ sassinated a top Syrian official. 2. Egypt and North Africa For the past 12 months, the Muslim Brotherhood in The alert reader will have already noted the mention Syria has been responsible for dozens, perhaps hundreds of Rumania in the above discussion of the Ikhwan in of murders of major and minor Syrian officials, including Syria. The Muslim Brotherhood is involved in close

28 Special Report EIR January 8- 14, 1980 can move them as he desires. If he wants to move them from this area in southern Lebanon in defense of Arafat: Arabism in Lebanon in order to fightthere alongside these Iranian revolutionaries who are coming tomor­ Khomeini is our leader row, we welcome that. If he wants to move them to any place in the world, we are ready .... The fo llowing is an extract of a speech delivered on Dec. Tell our imam, the leader of the march, that the 7, 1979, in Beirut, Lebanon, by Palestine Liberation soldiers-we are all soldiers-are ready to receive the Organization Chairman Yasser Arafat. Th e speech is order and to move, sacrifice, and die. We welcome evidence of the extent to which the Khomeini psychosis martyrdom .... has infected the PLO. It is known that Arafa t himself Tell Imam Khomeini to give the order, and we will was fo rmerly a member of the Muslim Brotherhood in obey and move to strike U.S. imperialism and U.S. the 1950s. imperialist interests at any time and in any place and I mean any place. We and the Iranian revolution are not just in one The day will come when we will say: Join the jihad trench. No. We are one revolution led by one man­ fo r Palestine! ... Join the jihad to liberate Jerusalem; Imam Khomeini. join the jihad to liberate Jerusalem; join the jihad to Therefore, tell Imam Khomeini that these Le­ liberate Jerusalem, and make it a revolution until banese-Palestinian forces await his military order. He victory!

coordination with the local communist movement, often of these cults worship goddesses whose origin goes back with the sanction-and even support of certain countries to pre-Islamic times to Isis and Osiris. of the Warsaw Pact. It is in Egypt, the original home of the Ikhwan, that It would be a mistake, however, to consider the we fi nd the strongest and best organized Muslim Broth­ Muslim Brotherhood a Soviet "puppet." The Ikhwan erhood outside of Iran and Pakistan. maintains contact with a particular faction of the com­ The Egyptian Muslim Brotherhood is the center of a munist movement: that associated with the British triple network that stretches across the entire Arab world. The agent and now KGB General, Kim Philby. That faction, presence of the Ikhwan in Egypt during the period until strongest in Rumania and Yugoslavia as well as within the mid- 1 950s, when it was suppressed by Gamal Abdel the Communist Party apparatus of Western Europe, is Nasser, has provided it with a strong base in the country's also powerful within the Arab communist movement. major institutions, despite years of repression. With the In Iran Khomeini is supported by the Tudeh (Com­ coming to power of Anwar Sadat-formerly a member munist) party there; the Iraqi Communist Party is also of the Muslim Brotherhood-the position of the Ikhwan pro-Khomeini. was reinforced in the country, and gradually Sadat al­ In Sudan, which once had a strong communist move­ lowed it to surface publicly and to engage in political ment, the Muslim Brotherhood is now a dominant force. activities. Thus, recently, the head of the Muslim Broth­ According to Israeli scholars, at one time the Central erhood in Egypt, Sheikh Elmessari of Al-Dawa maga­ Committee of the Sudan Communist Party was com­ zine, met President Sadat at a public banquet, where posed primarily of mullahs, or priests, associated with Sadat declared that he has nothing against the Ikhwan the Muslim Brotherhood! Now, the government of Su­ and that it should be considered a loyal, nationalistic dan is itself the Muslim Brotherhood, since the appoint­ fo rce. ment to the cabinet of Sheikh Turabi, the chief of the As during the period of the 1930s and 1940s, when Ikhwan in the Sudan. Under Turabi's influence, Sudan the Muslim Brotherhood collaborated closely with the has backed away from the relationship it had been devel­ Eg yptian royal palace and its secret police as well as with oping with neighboring Ethiopia, instead renewing its the British Embassy in Cairo, today Egypt's Ikhwan acts assistance to the Eritrean Liberation Front, a manipulat­ as a de facto arm of the secret police. It is generally ed guerrilla movement seeking independence for the believed that control of the Muslim Brotherhood fa lls Ethiopian province of Eritrea. under the authority of Hassan al-Tuhami, the president's In addition , in Sudan there has been recently a rapid special adviser, who maintains close contacts with Israeli, growth of cultlike movements of dervishes and fanatical British, and American intelligence. Tuhami, for instance, preachers in the country's more backward areas. Many declared last year that Egypt might act to "mobilize I

EIR January 8-14, 1980 Special Report 29 million Muslims for a march on Jerusalem." menting regulations drawn from the sharta, or Muslim A proliferation of Muslim Brotherhood organiza­ law. On university campuses, upwards of 25 percent of tions has been in evidence in Egypt over the past several the youth have been persuaded to associate with such years. Many of the more radical cults have been expelled fundamentalist reform, agitating for special religious law from the mainstream of the Muslim Brotherhood net­ on campus, under the guidance of Sheikh Kishk. And, work in Egypt, led by Al-Dawa. But, just as the earlier now, his influence has begun to grow outside of Egypt. Ikhwan established its "Secret Apparatus" to carry out In January 1979, in the Medea region of Algeria terrorism and violence, it should be assumed that the south of the capital of Algiers, near the village of Blida, establishment Muslims of Al-Dawa serve as the control a strange phenomenon was reported: a letter began agents for deploying the mob and the terror. One of these circulating purporting to be the dreams of an imam in organizations is Al- Tafkiral-Hijra (Repentance and Re­ Mecca, announcing the imminent End of the World. The treat). Derived directly from Hasan al-Banna and Sayyed letter asked anyone who received it to make a copy and Qotb of the early Ikhwan, this terrorist underground transmit it to another person. By doing so, the letter movement was reportedly involved in supporting the stated, the copier would go to heaven when he died; recent attack on the Grand Mosque in Mecca. otherwise, if he failed to copy the letter, he would be Among other groups is the Al-Gamaa al-Islamiyya condemned. The circulation of the letter caused a great (The Islamic Group), which originated at Cairo's Al panic among the backward peasants of southern Algeria, Azhar university and quickly spread throughout the according to the Algerian El-Moudjahid. country. �portedly, the group has amassed a huge According to Algerian sources, the very same letter quantity ofwea pons and has received paramilitary train­ was circulating in the 1930s. The center of the operation ing. Within the last several years, the Egyptian police has was and is a network in Kasr el-Boukhari in the Medea carried out several arrest sweeps against this group. region. Further, according to El- Moudjahid, "foreign Thousands of automatic weapons-many of them Uzi teachers" are spreading such nonsense, in conjunction submachine guns made in Israel-were confiscated in with certain circles at Algiers University and the Mosque Upper Egypt near Assiout by police, and according to of Chateauneuf in Blida. Among the reports concerning some reports parts of Egypt are now almost autonomous, these incidents, it was said that the fu ndamentalists were in the countryside, led by fe udal lords using organiza­ telling the peasants that to pray on land th at is national­ tions like Al-Gamaa. During Ramadhan, the group un­ ized is a sin ! dertook to have public displays of its military fo rce, and It was fu rther revealed that circulating among the Le Monde of Paris commented that the movement rivals peasants in that area were thousands of cassette tapes of the Egyptian army as a structured and organized force ! speeches by Sheikh Kishk. That was precisely the tactic Still other organizations include Al-Itissam, which used by Khomeini during his exile in France. In Tunisia, means the Refuge, a group claiming to support "Islamic Sheikh Kishk is very popular; in that country the cas­ socialism," led by Abdel-Moneim.Abdel-Raouf; and the settes do not circulate clandestinely but openly. Me,kajaratiyya (The Excommunicators), a terrorist The center of the Muslim Brotherhood in Tunisia is band. the Arraya Library, which specializes in selling the works of Hasan el-Banna, Sayyed Qotb, Pakistan';� ohammed Iqbal, and the tapes of Sheikh Kishk. Their newspaper in Tunisia is El-Maarifa (The Knowledge), whose circula­ 3. Khomeini of the Maghreb tion has shot up from 1500 to ,5000 since 1977, according In Egypt operates Sheikh Abdel-Hamid Kishk, the to Tunisian sources. Last September, they organized blind imam of the most important Cairo mosque after Al large-scale demonstrations and, in Tunis, riots against Azhar. For years, Sheikh Kishk has been preaching the efforts of the government to �cularize a religious along fundamentalist lines, especially to attack the holiday. "Westernization" of Egypt and the corruption of politi­ During the I 960s, the movement there was led by cal life. Also, as is standard for the Muslim Brotherhood, Sheikh Mohammed Salah Neifer, who eventually was Kishk attacks the Egyptian-Israeli peace treaty. But forced into exile in Algeria. Later, the organization led Sadat has not placed him under arrest; he ,is reported to by people who call themselves Khouanjias emerged be the "most popular man throughout Egypt." around the Arraya Library, led by Sheikh Abdel Fateh " Kishk's influence extends throughout Nort� Africa Moro. Moro is a 30-year-old lawyer, with close ties to from Egypt, especially into Algeria and Tunisia. He has Saudi Arabia, who regularly visits that country. Togeth­ been called "the Khomeini of North Africa." er with Rashed al-Ghanouchi of the Islamic Renaissance Under his leadership, the Egyptian parliament has Movement and Hussein Ghodbani, Moro cooperates now passed a series of laws which have begun to Islami­ with the Tunisian opposition movement, especially with cize public life, banning alcohol, gambling, and imple- its radical "human rights" and labor constituency.

30 Special Report EIR January 8- 14, 1980 Ghodbani, also a lawyer and radical who works with a Senussi Brotherhood. Many of the leading families in fo rmer justice minister of Tunisia, has connections to Cyrenaica are still members of the Senussi. Ramsey Clark, the fo rmer U.S. attorney general, who led demonstrations for Khomeini in Iran in February 1979. The Muslim Brotherhood in Tunisia and Algeria acts 4. Saudi Arabia and the Gulf as a single entity. In Algeria, for years the Brotherhood In Wahhabi-fundamentalist Saudi Arabia, the Mus­ has demanded " Arabization" of the educational system lim Brotherhood takes a different fo rm than in other and the language of the government, where French is countries of the Arab world. In Saudi Arabia, the main heavily used. During the recent national debate over the supporters of the Muslim Brotherhood are clustered National Charter, the fu ndamentalists used their influ­ around Prince Abdullah ibn Abdel Aziz, the No. 3 man ence to swing the Charter toward a more religious ori­ in Saudi Arabia and the commander of the National entation and away from its original secular bent. The Guard. Throughout the Arab world, Abdullah is known base of the Muslim Brotherhood-especially strong to be very close to British intelligence. among students-is the host of Sufisects and movements Abdullah-who exercises great influence over King that can be fo und all over North Africa. Reportedly, the Khaled-draws his strength in the Royal Family fr om movement in Algeria gets support from the Tunisian the Guard itself, and from dissident tribal members of branch, and vice versa. the Saudi elite. The National Guard was fo rmed out of Recently, Tunisia has begun a crackdown on the the remnants of the old Saudi Ikhwan, or "Brother­ Muslim Brotherhood. The weekly publication A/­ hood," that served as the paramilitary force behind the Moujtamaa put out by Ghanouchi-which had endorsed takeover of Arabia by King Abdel Aziz. During this Khomeini and the seizure of the U.S. embassy in Teher­ period, the Saudi elite was guided and advised by Harry an-was closed down by the police, and Ghanouchi was St. John Bridger Philby, the father of Kim Philby. To briefly arrested. Although the ruling Destour Party has this day, the various tribes of Saudi Arabia-though no mobilized its forces against what it calls "the new obscur­ longer wielding their fo rmer influence-operate as a set antism ," the movement has continued to grow. Report­ of mafias, and dissidents tend to cluster around Prince edly it draws its support partly from the opposition Abdullah. "Marxist" elements around fo rmer Tunisia leader Ben Thus protected by a powerful faction of the family of Salah, whose base is largely in France. According to Saud, the Muslim Brotherhood flourishes in Arabia. some European reports, Mohammed Masmoudi-once Many military and intelligence personnel, especially Tunisia's foreign minister-is working closely with the those with British connections, also serve as protectors Ikhwan in Tunisia, using his extensive contacts in the of the Muslim Brotherhood. An important nexus in that Persian Gulf. regard is that around Kamal Adham, former head of Finally, we come to the secretive Senussi Brother­ Saudi intelligence, and the family of royal adviser Rashid hood of Libya. This is an old Sufi movement, which was Pharaon and Ghaith Pharaon, his businessman son, who utilized by the British for at least \00 years in eastern :, as a partnership with Adham. It is this group that Libya, in Cyrenaica. During the monarchy, King Idris reportedly had some responsibility for the bloody inci­ and the old Senussi family were simply representatives of dents in Mecca at the Grand Mosque last month. Adham the Senussi Brotherhood in power, and following Col. in particular has strong Egyptian connections. Qaddafi's 1969 coup, they still managed to retain much Also important in this regard is Prince Muhammad of their fo rmer power and influence, though more secret­ bin Faisal, fo rmerly Saudi Minister of Mineral Resources ly. In July 1979 the Senussi Brotherhood was responsible and Water. Prince Muhammad, in New York last month, for the fo rmation of an Islamic Legion comprised of issued a ringing endorsement of Ayatollah Khomeini Egyptian, Libyan, and Tunisian cadre to fight in Uganda and the mullahs of Iran, especially stressing the role they in support of Idi Amin. are playing to bring about an "Islamic renaissance." The Senussi Brotherhood is extremely secretive, and Prince Muhammad is at the center of a mini-empire he inquiring journalists are told firmlythat it no longer is in has built, consisting of the Union of Islamic Banks in existence and that no one "has never heard of it." But in Jidda, with branches in at least six other Muslim coun­ July 1977, a Lebanese newspaper reported that Anwar tries. He has sponsored, in conjunction with European Sadat was making a plan to strike a deal with the Senussi aristocrats, talks on fo unding a "New Muslim World Brothers, based at a spiritual center called Kufra in the Order," based on the so-called Islamic dinar currency. middle of Libya's eastern desert, which for years served Prince Muhammad is also the chairman of the Islamic as a military base. In conjunction with the Egyptian Environmental Research Council, established in August invasion of Libya at that time, Sadat wanted to annex 1979. Among other things, the Council is heavily in­ eastern Libya to Egypt by winning the support of the volved in researching the uses of solar energy.

EIR January 8-14, 1980 Special Report 31 Maududi.cou nterposed the Islamic state to Western republics and Communism both. The sovereignty of the Islamic state, he said, could not be "popular sovereignty" of the republic because that interposed the state, and "the dominion of man over man," between man and

God. Instead he had a concept of the permanent sover- _ eignty of Allah, as embodied in the unchanging adher­ South Asia ence to the Islamic law, the shariat, with the state ruled by an Amir who only carried out the rule of Islam. Jamaat-e-Islami The hatred of the nation state is Maududi's constant theme right into the current period. Although he op­ posed the creation of Pakistan, he later reversed that When the V.S. Embassy in Islamabad, Pakistan, burned stand when it made the Jamaat extremely unpopular. to the ground at the end of November, leaving two The Jamaat then organized a tight, semi-underground Americans dead, a surprising silence fo llowed fr om the militia within Pakistan and what is now Bangladesh State Department. A gesture of sorrow from Pakistani (formerly East Pakistan), with another wing maintained President General Ziaul Haq was magnanimously ac­ in India. The Jamaat also spread its operations into cepted. Initial expressions of outrage from embassy offi­ places like Malaysia where the Muslim population is in cials over the inexplicable delay in the dispatch of Paki­ the majority. Within Pakistan, however, the Jamaat, stan army forces to the scene, and clear signs of the pre­ which organized itself as a political party, never received organized character of the "mobs" who stormed the more than a few percentage points of any free election. embassy were quietly swept under the carpet. What was the State Department so anxious to hide? With Zia, now in control Why were they protecting General Zia's regime so ob­ The rise of the Jamaat came with General Zia's coup viously? The answer is simple-the burning of the em­ when it joined the government as part of the anti-Bhutto bassy was organized in advance by the conspiratorial and Pakistan National Alliance. The Jamaat today, despite a tightly run militia of the Muslim Brotherhood's arm in fo rmal ban on all parties, enjoys complete freedom of Pakistan and throughout South Asia, the Jamaat-e-Isla­ organization and has spread its strength particularly in mi. The Jamaat-e-Islami is the power behind General the universities, where it only is free to operate of all Zia's regime, the fo rce behind the murder of Ali Bhutto, groups. It was out of one such college, the Quaid-i-Azam the authors of Pakistan's anti-Afghan policy of aid to university, that the youth wing of the Jamaat loaded the Muslim tribal rebels, and the organization most likely "students" onto trucks and buses this past Nov. 21, responsible fo r the "Islamic Bomb." drove them to the isolated V .S. embassy, and attacked it, When the V.S. embassy burned in Pakistan, Muslims while army bases only 20 minutes drive from the site were unable to send troops until five hours after the attack also rioted against the Vnited States in India and in . Bangladesh. In both places again it was the Jamaat-e­ began. Islami which organized and led the demonstrations. In The highly secretive Jamaat is well-known in the neither country though does the Jamaat-e-Islami hold region. When Bhutto was hanged by the military junta, the power it does in Pakistan, which after independence pro-Bhutto Muslims in India attacked the offices of the became the stronghold of this little known organization. Jamaat throughout the country. In India the Jamaat The current head of the Jamaat is Mian Tufail Mo­ works closely with its alleged enemy, the rabid Hindu hammed, who succeeded only a couple of months ago to chauvinist Rastriyo Sevak Singh (RSS), and the two the leadership following the death of the founder, Sayid organizations have been responsible for a vast upsurge Abdul A'la Maududi. Mian Tufail, among his other in communal tension and violence over the past two qualifications, is the uncle of General Zia. years. The Jamaat was fo unded in August 1941 by Maudu­ Maududi and the Jamaat have had close ties with di, who had earlier established himself as a reactionary Khomeini in Iran, despite the alleged differences between Islamic theologian specializing in "The Political Theory the Sunni Jamaat and the Shias of Iran. After coming to of Islam," the title of a paper he delivered to the "Inter­ power, Khomeini's first delegation abroad went to Pak­ Collegiate Muslim Brotherhood" in October 1939. A istan to pay respects to Maududi, while Mian Tufail fo llower of AI-Ghazali, Maududi's writings are well Mohammed returned the visit to see Khomeini. The known through the Brotherhood's circles and are report­ Jamaat supports the Khomeini revolution and sees its ed to be the basis in part of Khomeini's conception of the own efforts, through Zia, to place Pakistan solely on the Islamic state. basis of the shariat as part of the same process.

32 Special Report EIR January 8-14, 1980 III. The roots of the Muslim Brotherhood by Robert Dreyfuss

The Muslim Brotherhood was created education system in the Muslim world; the British who · .. . 1 by London as the standard-bearer of an funded the publication of Islam's obscurantists; and the ancient, antireligious (pagan) heresy British who held learned conferences to proclaim the that has plagued Islam since the estab­ worth of a specifically "non-Western" type of "Muslim lishment ofthe Islamic community (umma) by the proph­ science." The British goal was to convince the Muslim et Mohammed in the 7th century. Representing orga­ world that its "true" culture was essentially backward nized Islamic fundamentalism, the organization called and irrational. Key to this process was a century-long, the "Muslim Brotherhood" (Ikhwan al-Muslimun in Ar­ British project to explain the decline of Islam; according abic) fo unded in 1929 by the British agent Hasan al­ to the London view, the decline and fa ll-and eventual Banna, a Sufimystic, today provides the umbrella under domination of the Muslim world by the imperialist pow­ which a host of fundamentalist Sufi and Sunni-as well ers-was the result of an inherent weakness, or defect, as radical Shiite-brotherhoods and societies flourish. within the "Muslim psyche." Taken together, the generic Muslim Brotherhood does As this article reveals, such premises were drummed not really belong to Islam, but to the pre-Islamic barbar­ into the heads of modern Muslim intellectuals by Lon­ ian cults of mother-goddess worship that prevailed in don's mafia of pseudo-Orientalists. To accomplish that, ancient Arabia. the British allied themselves with the region's remnants However, as much as the peddlers of mythology of the pre-Islamic cults. might want us to believe that the Muslim Brotherhood­ These cults themselves are rooted in an even older and even the existence of the Ayatollah Khomeini him­ tradition, that of the pagan cults of Greece, Persia, and self-represents a legitimate expression of a deeply root­ the Roman Empire. The pre-Islamic Arabian cults of ed "sociological phenomenon," this is assuredly not the Allat, Uzza, and Manat are but copies of the more case. The Muslim Brotherhood could not exist today ancient cults of Isis and Osiris, Apollo, and the Magna were it not for the fact that the more backward and Mater. As such, the Muslim Brotherhood properly be­ epistemologically reactionary elements of Muslim cul­ longs not to the world of religion but to the domain of ture were carefully cultivated by Orientalists of the Brit­ evil mysticism, alchemy, black magic, sorcery, and witch­ ish Oxford and Cambridge tradition. Far from being a craft. real expression of Muslim history and culture, the para­ In more recent times, British Orientalists and Anglo­ sitic Ikhwan is the result of patient organizing by Lon­ Jesuit intelligence specialists have seen fit to utilize the don's Islamic-world intelligence agents typified by Ar­ "black" traditions of Islam-its cults and mystery reli­ nold Toynbee, H. St.-J. B. Philby, T.E. Lawrence, E.G. gions-as a veh icle for imposing backwardness at the Browne, and many, many others. time that the British empire began spreading into the The deliberate cultivation of backwardness by an Islamic world. Making use of alliances between Islamic established oligarchy is nothing new. Within Islamic obscurantists and mystical cults, on the one hand, and history, the great proponents of antiscientific doctrines, the European oligarchy's own Black Nobility that dated mysticism, and nominalsim, such as the 9th century AI­ back centuries, the British Orientalists of the 19th century Ashari and the IIth-c entury AI-Ghazali, were mere paid encouraged the growth and development of a succession agents for the aristocrats of the caliphate and later of institutional cults that provided the basis for the kingdoms, who sought to quash the emerging rationalist establishment of the Ikhwan and its offspring. Great tendency and its later magnificent expression in the work Britain and Europe's fe udal orders and freemasonic so­ of the humanist geniuses AI-Farabi, Ibn Sin a, and Hasan cieties had long maintained close links to antihumanist ibn al-Sabbah. The irrationalist tendency within Islam cults in the Muslim world. For London, the establish­ was simply revived, during the 19th century and after, by ment of the Muslim Brotherhood as an arm of British the British. It was the British who sponsored the higher Secret Intelligence Service was merely the result of taking

EIR January 8-14, 1980 Special Report 33 direct political command of the loose federation of cults of Christian mysticism or "the true Gnostic," but also of and mystery religions in Islam that had lingered since the the "mystery-cults of the Greeks." days of the early Sufis and AI-Ghazali. Other scholars have shown conclusively that Chris­ Today, those cult networks are kept in place by the tian gnosticism-as a cult heresy within the early power of British and American intelligence, NATO, and Church-is itself derived directly from the Oriental cults the military power behind them. For instance, Iran: the and mystery religions of the ancient East. The definitive Ayatollah Khomeini and thousands of mullahs that he work on this subject is Th e Gnostic Religion by Hans commands-as many as 200,000, according to Iranian Jonas, who asserts that when the humanist armies of sources-represent an administrative command network Alexander the Great swept through the Near East and that can mobilize a mass of chanting cultists at a mo­ Persia the devil-worshipping cults were ruthlessly sup­ pressed and fo rced "underground." They sought outlets ment's notice. But, standing behind Khomeini is the · powerful apparatus of the fo rmer SA V AK, the Shah's in the Hellenistic world in the form of Delphic eruptions secret police, many of whose top officials still command of pseudo-Platonic movements that were merely dis­ the secret police of Khomeini. Though apparently Islam­ guised cults. "For the East, it is a time of preparation fo r ic on the surface-which is a useful myth to mobilize the its reemergence, comparable to a period of incubation," masses-underneath the Khomeini regime is a highly writes Jonas . "The spiritual monopoly of Greece caused sophisticated, computerized military command center the growth of an invisible East whose secret life fo rmed with direct lines to London and Washington. an antagonistic undercurrent beneath the surface of the public Hellenistic civilization." The heresy of Sufism Eventually, reports Jonas, the "Eastern under­ The fo undation fo r the Muslim Brotherhood is the ground" emerged in the fo rm of the gnostic cult that cult of Sufism. At the beginning, Islam was founded as a city-build­ ing, world historical force that emerged in response to a profound collapse of civilization in the Near East. Fol­ lowing the unification of the Arabian tribes in the 7th century by the Prophet Mohammed, a renaissance of trade and commerce flourished and entire cities rose up out of the rubble of the decadent Byzantine and Persian Jesuits praise'C ult of Islam' empires. Whole sciences were develped by Islamic schol­ Th e fo llowing extracts are taken fr om Social Compass. ars, and major contributions that revolutionized music, the quarterly publication of Belgium's Louvain Univer­ mathematics, and technology were made in the centuries sity. The university itself, run by the Society of Jesus. that fo llowed . Under the leadership of Mohammed, and maintains a Center fo r Contemporary Arab Studies then a series of political-philosophical movements such headed by Bishara Khader. whose brother is the PL O as the Mutasilites, the Ismailis, and others, a Neoplatonic representative in Brussels. Th e extracts printed below humanist movement emerged to build one of the world's are taken fr om Vol. 25. No. 3-4. 1978. a special issue of most magnificent civilizations. The enemy of that Social Compass devoted to Islam and Society. achievement was the land-owning oligarchy and their Th e article quoted is by Jacques Waardenburg of paid agents within the priesthood, who constantly sought Holland. entitled "Official and Popular Religion in to mobilize the backward peasantry against the city­ Islam." In the article. Waardenburg describes how the builders. influence of pre-Islamic cult rituals has affe cted the The anti-urban, mystical cultists were called Sufis. Muslim religion by giving rise to "mystical brother­ According even to Sufisour ces, Sufism dates back to hoods and Muslim 'brotherhoods' and societies. ' " He pre-Islamic times. According to Professor Margaret asserts explicitly that it was al-Ghazali who legitimized Smith of Cambridge University, in her Th e Way of the such cultism. and he crows that the lack of an official Mystics: Th e Early Christian Mystics and the Rise of the institutional organization-like the Papacy-has made Sufis , published in 1978 by Oxford Univesity Press, there Islam easy to subvert. That. he hints. was accomplished is a "relationship between the rise and development of a by the "fundamentalist reforms" of the 19th and 20th mystical element in Islam-that which we know as Suf­ century; that is. by Jamal ad-Dinai-Af ghani. ism-and the mysticism which was already to be found within the Christian Church of the Near and the Middle Ibn Taimiya (1263- 1328 A.D.) combats what may East at the time when the Arab power established itself." be called "popular religion" among Muslims in his Professor Smith, until her death a leading British cult specialist, explains that Sufism is the direct heir not only

34 Special Report EIR January 8- 14, 1980 "compounded everything-oriental mythologies, astro­ And so on. How does ldris Shah definea Sufi? "A Sufiis logical doctrines, Iranian theo logy, elements of Jewish a Sufi,"he writes. tradition, whether Biblical, rabbinical, or occult, Chris­ But ldris Shah-himself a well-publicized fraud of tian salvation-eschatology, Platonic terms and con­ some magnitude who is presently involved with the cepts. " M uslim Brotherhood cult-cites lshan Naiser, a Sufi, It is this eclectic religious tradition embodied in who then proceeds to identify the cult-like nature of gnosticism that, after the foundation of Islam, resurfaced Sufism as it spans all major religions: again in the fo rm of Sufism. ModJn Sufis pride them­ I am the pagan; I worship at the altar of the Jew; I selves in the fact that many naive scholars have failed to am the idol of the Yemenite, the actual temple of identify the current out of which Sufism developed. In the fire-worshipper; the priest of the Magian; the Th e Sufis, written by the Sufi Idris Shah, the author inner reality of the cross-legged Brahmin meditat­ playfully cites the allegedly "undefinable" nature of ing; the brush and the color of the artist; the Sufism: suppressed, powerful personality of the scoffe r. One does not supersede the other-when a flameis According to one Persian scholar, Sufism is a thrown into another flamethey join at the point of Christian aberration. A professor at Oxford thinks "flameness. " that it is influened by the Hindu Vedanta... An Arab-American professor speaks of it as a reaction More to the point, ldris Shah elsewhere pinpoints the against intellectualism in Islam. A professor of real nature of the Sufi cult. It is, he says correctly, a real Semitic literature claims traces of Central Asian synthesis of the mystical antirationalism of Al-Ghazali Shamanism. and the nominalist "realism" of the leading Muslim

time. He treats such popular religion as a kind of id in a wider framework. The origin of Sufismwas quite (festival) in the widest sense of the word," at a time, in "orthodox." It started as the consistent application of a place, or with a ritual which cannot be considered religious norms contained in the Koran and the early lawful according to the shari'a (religious law). sunna. By the end of the 12th century A.D., however, Like others before him, Ibn Taimiya explains the through the influence of al-Ghazali (1058-1111), it occurrence of such popular religion as borrowings was incorporated, apart from the extreme mystical from other religions than Islam, in particular from portions which were explicitly contradictory to official paganism as it existed before Islam in Arabia and doctrine, within the mainstream of Islam .... elsewhere, and from Eastern Christianity with its rit­ We can even go further. From the point of view of uals, fe asts, and veneration of the saints .... He is history of religions it can be argued that historical particularly vehement in his attacks on ideas and Islam, as based on the specificfa ith of predicament of practices which had developed in Islam in connection Mohammed and taking this as its ultimate norm, is with the belief in the intercession of one human being largely a "popular" variant of more general religious for another. notions which were current in the Near East in the It is possible to classify the most striking fo rms of sixth and seventh centuries A.D.... popular religion in the fo llowing way: Many different kinds of popular Islam can grow I. celebrations of rites de passage; and sometimes even proliferate .... It was apparently 2. celebrations of the sequence of the seasons of the fu ndamentalist reforms, and in particular the re­ nature and of the weeks, months, and years; ... fo rm movements of the 19th and 20th century, which 7. ways of life and ideas in explicitly religious intensified and rationalized, within the Islamic reli­ groups (tariqa's or mystical brotherhoods, Muslim gion itself, the permanent tension between normative 'brotherhoods' and 'societies.'); ... and popular Islam .... It would seem that the interplay Although such fo rms of popular Islam may some­ between the more or less fu ndamentalist reform move­ times constitute a sort of "underground" religion, in ments, often supported by some u/ema, on the one nearly all cases they have an important cultural and hand, with their call "back to true Islam!", and the social structural function within the total life of the recapturing in due time by popular religion of its lost societies concerned .... terrain on the others, with its appeal to satisfy certain The development of mysticism and the place of religious needs, is one of the fundamental structures Sufi piety in Islam put the problem of popular Islam of this religion.

EIR January 8-14, 1980 Special Report 35 fol lower of Aristotle, Averroes. "Taken together, Gha­ referred to as the period of the "decline of Islamic zali's fragments and A verroes' Aristotelianism constitut­ civilization." More than any other single factor, it was ed a double Sufic current (action and reaction) which the philosophy of AI-Ghazali and the Sufis that led to nurtured a Christendom wholly ignorant (as far as scho­ that collapse. The relationship between AI-Ghazali and lastics were concerned) of the initiating cause of both the Sufis is said to be reflected even in etymological Ghazalism and Averrosim." terms: The word sufi is derived from the Arabic suI. Idris Shah is an operative for British intelligence, which means "wool," while the name AI-Ghazali means presently living in London, where he is in the inside of a "the spinner," or one who works with wool. number of British projects to subvert the Islamic world, and he passes himself off as a serious student of Sufism The Freemasonry connection and Islamic religion. The author of several kooky Although rooted in the early development of Sufi works-including the fam ous Book of the Book, a 250- mysticism, the modern Muslim Brotherhood has its im­ page volume of blank pages-Shah is otherwise involved mediate antecedents in the 19th-century pan-Islamic now in the Club of Rome. movement and the secret societies and cult religions that But Idris Shah's identification of AI-Ghazali as the were spawned beginning in the I 830s by Orientalists of originator of the fo rmal Suficult is quite precise. Though Oxford and Cambridge. AI-Ghazali did not invent Sufism, it was AI-Ghazali For centuries, the European black nobility and the who, in the IIth century, codified the various strands of old British oligarchy has had a special perverse fascina­ mysticism and antirationalism that had sprouted within tion with the "Orient." Because the ancient cults and the Islamic world until his time. As a political agent for mystery-religions first flourished there, in Egypt, Pesia, allied cult factions in Europe and with the Mongol army, and Babylon, the European oligarchy has eagerly sought AI-Ghazali fo ught against the philosophical genius of to trace its roots to the Eastern "underground." As a ibn-Sina and his heir, Hasan ibn al-Sabbah of the so­ result, a hundred different myths and cultist traditions ca lled Assassins. concerning the Orient have come to obsess London's AI-Ghazali is the author of the fa mous Tababut al­ aristocrats, whose own secret societies have modeled Malasifah (Destruction of the Philosophers). AI-Ghazali their passwords, symbols, rites, and languages on the argued that the world was essentially irrational, and that Zoroastrian , Manichaen, Isis-Osiris, occult Jewish, human reason could not be applied to understand the gnostic, and Hermetic traditions. At least three Oriental universe and to shape its development. AI-Ghazali's obsessions of this sort can be identified: notion of God pictured Him not as a positive, creative I. The dualist, Pesian mythology originally associ­ fo rce accessible to humanity, but as a remote, capri­ ated with Zoroaster and the Manichaens, which, in the ci ous-even arbitrary-master. Because AI-Ghazali de­ minds of the racist British elite has come to be synony­ clared that everything that occurs takes place at the mous with the Aryan racial-purity cult as the source of specific command of an arbitrary God, he denied the "pure" civilization that in the 19th century merged with existence of causality. Fire does not burn, said AI-Gha­ the synthetic German Romantic tradition to forge the zali, but it is merely a coincidence that when one places basis for the Nazi party ideology of Adolf Hitler. one's hand in a flame God makes one's hand feel pain. 2. The cultist identification with Jerusalem and with Like AI-Ashari, the fo under of the irrationalist school of the Jerusalem temple as the symbol for the freemasonic Islam, AI-Ghazali believed that the universe is composed cult, typified by the Scottish Rite of Freemasonry, which of innumerable atoms, each of which owes its very exist­ served as a primary vehicle for the extension of British ence to the whim of God, who constantly destroyed and influences into the Middle East in the period after the then recreated-at every moment-each atom in the Oxford Movement and the so-called Apostles. entire universe. 3. The various Egyptian mythologies associated with In such a universe which is governed by no rules or the cults of Isis (and Apollo). This category includes the natural law, then man's reason is useless, and the intellect ancient mystical lore of Hermeticism. The demi-god becomes a dangerous faculty. For AI-Ghazali, like Aris­ Hermes, according to legend, was Hermes Trismegistus totle, man is a cre'ature of sense-perception alone, and ("Thrice-Great"), who had three reincarnations-one in man is a beastlike, grasping infantile creature incapable Egypt, one in Persia, and one in India-and thus cameio of divine reason. embody the collected secret knowledge of forbidden Between the I Ith and 14th centuries, the cult of technologies and science that had been the exclusive Sufism grew alongside the influence of AI-Ghazali. Dur­ possession of each of those cultures. ing this period the vast majority of the Muslim humanist movement was crushed by the tide of reaction and ortho­ Coming soon: How the British created the Muslim dox theology. This was the period that is generally Brotherhood.

36 Special Report EIR January 8-14, 1980 IV. Capt. Setoudeh and the U.S. Office of Naval Research by Robert Greenberg

Until a few days ago, at the Washington in the last six weeks at least 300 armed and well-trained offices of the U.S. Office of Naval Re­ personnel have entered the United States on false pass­ search (ONR), under the direction of ports with phony visas that were obtained from a visa the Office of Naval Intelligence and stamp stolen fr om the U.S. embassy occupied in Iran by under the supervision of U.S. military personnel, the Iran's secret police, the SAVAMA. In an interview with current defense attache of the Iranian Embassy conduct­ the Paris-based magazine Liberation-which has close ed his business on a daily basis, assisted by a 16-man ties to Western Europe's terrorist movement, such as the team of Iranian terrorist controllers and gun-runners. Baader-Meinhof gang-Khalkhali boasted that his With the full knowledge of the Carter administration, teams have been trained "in the Middle East and inside the military attache, Captain Siavash Setoudeh and his the United States itself." staff conducted their affairs at the ONR building at 800 Following an expose by NSIPS and the Executive North Quincy Street in Arlington, Virginia. Within this In telligence Review of the fact of Setoudeh's presence in highly sensitive facility, accessible only to individuals a "secure" U.S. facility and his activities in Washington, with top security clearance, Captain Setoudeh, Captain the U.S. Department of Defense on Christmas Day Mansour, a recently arrived Iranian admiral, and a dozen quietly and without publicity asked Captain Setoudeh to other military agents of Ayatollah Khomeini's Islamic vacate the offices at 800 North Quincy Street, and to Republic of Iran all operate in coordination with U.S. move his operation to the premises of the Iranian embas­ naval intelligence and with the approval of Zbigniew sy on Massachusetts Avenue in Washington. But no Brzezinski's National Security Council. investigation is underway into Setoudeh's activities or Within this U.S. military facility, until they were why he was thus allowed to maintain offices there. He expelled in late December, the officers displayed portraits has not been asked to leave the country despite an order of the Ayatollah Khomeini and various slogans of the from the White House in early December expelling the Iranian Islamic Revolution, in full view of the American bulk of Iranian diplomatic personnel, and reporters who mi litary personnel in the building. have sought to inquire about the case are being turned According to the results of an intensive investigation away with a wall of officialsilenc e about the matter. by the Executive Intelligence Review, Capt. Setoudeh is Further, the EI R has ascertained that Captain Setou­ part of the network that carried out the assassination in deh is a close friend and confidant of Admiral Habib Paris last month. of Mustafa Chafik,the nephew of the Elahi, the former commander-in-chief of the Iranian former Shah of Iran. Navy. Iranian sources report that it was Admiral Habib Further, this Iranian unit is involved in coordinating Elahi who was a chief contact man for Air Force General the activities of Iranian students in at least 40 American Robert Huyser of NATO who traveled to Iran in Janu­ colleges and universities with which the Iranian military ary-February 1979, on orders fr om Zbigniew Brzezinski attache has liaison. Setoudeh and his colleagues are and NATO Commander Alexander Haig. At the time, engaged in arms smuggling, gun-running, and conduit­ Huyser's mission was to compel the Iranian armed forces ing weapons to terrorist units now deployed in the United not to intervene to prevent the takeover of Iran by the States by Ayatollah Khalkhali, the head of Iran's Muslim Ayatollah Khomeini. It is now believed that the White Brotherhood, the Fedayeen-e Islam. House and the Pentagon are afraid that any investigation Last week, Khalkhali claimed that he has sent killer into the matter of Capt. Setoudeh would expose the squads into the United States to assassinate President secret collaboration between Brzezinski, Haig, and the Carter, other U.S. political figures,and "enemies of the Muslim Brotherhood in Iran beginning in 1978. revolution," including a specified list of Iranian figures Already, Democratic candidate for the pre�idential of the fo rmer regime. According to Washington sources, nomination Lyndon H. LaRouche has called for an

EIR January 8-14, 1980 Special Report 37 immediate congressional investigation into the Huyser order from President Carter expelling 183 Iranian diplo­ mission. mats on Dec. 12, until that time not a single Iranian had Rather than investigate the Setoudeh scandal-which left the country, and Iran's embassies and consulates is fa r more scandalous than the Watergate affair-the continue to operate normally. When asked about the White House is putting pressure on the FBI and local expulsion order, Setoudeh laughed it off and asserted, police to hush up the fa ct that Iranian terrorists, dis­ "That doesn't apply to me." guised as "students," have entered the United States. Next, NSIPS contacted the Islamic Republic oflran's According to high-level sources in the Department of embassy in Washington D.C., a magnificent building left Justice, "at least fifty" such terrorists have already been over from the Shah's era on Massachusetts Avenue. tracked into the United States and there have been There, a spokesman fo r the office of Charge d'Affa ires several arrests-but they have been covered up. Ali Agha confirmed matter-of-factly that Capt. Setoudeh was indeed the defense attache of the embassy. Uncovering a scandal The investigation by NSIPS began on Wednesday, A visit to Capt. Setoudeh Dec. 19, when the New York offices of the news agency That afternoon, a pair of reporters from NSIPS paid picked up rumors of direct collusion between the Iranian an unannounced visit to Capt. Setoudeh's office to see embassy and the Pentagon. According to Iranian sources what they might discover. At the entrance to the build­ opposed to the Khomeini regime, Capt. Setoudeh-who ing, the only identification sign read: "Office of Naval was described as a "naval liaison officer who is the Research." Inside, a sleepy, Christmas-minded guard defense attache of the Iranian embassy"-could be locat­ waved the reporters on. ed at 800 N. Quincy Street . Upstairs, the two reporters fo und a bustling office On Dec. 20, the NSIPS Washington bureau con­ filled with Iranians. The walls were covered with portraits firmedthat the building in question is wholly owned and of Ayatollah Khomeini, revolutioAary slogans, and other operated by the Office of Naval Research. An ONR signs and symbols confirming that the office was indeed spokesman, who refused to be identified, said that the loyal to the insane mullahs that now control Iran. After building is entirely occupied by offices containing U.S. questioning those present, and the taking of several military personnel "except for a few fo reigners who have photographs of the office and its decor, pandemonium reason for being there." When asked to elaborate, he broke loose. refused, offering as his excuse "the situation we're hav­ "You can't do that!" shouted an Iranian officer, who ing." later identified himself as Capt. Mansour, an admiral. That same day, an NSIPS investigative reporter Amid the ensuing chaos and confusion, the office did called the offices of Capt. Setoudeh, identifying herself admit that it was occupying U.S. government space. For as a representative of a "Hong Kong arms dealer." a period of 15 minutes, the two reporters were physically Setoudeh immediately came to the phone. When the detained, by fo rce, by the Iranian military officers and called said that "her boss" had instructed her to get in aides. Their fi lm was confiscated, and they were threat­ ' touch with him to arrange a meeting for him "when he ened. Soon afterward, two U.S. naval security personnel arrives in the country next week," Setoudeh readily arrived-to assist the Iranians! agreed. He was told that a "massive" arms shipment was Immediately afterward, the NSIPS correspondents coming into the United States "outside normal chan­ went to the ongoing press briefing by Jody Powell, nels." President Carter's spokesman, at the White House. "I Replied Setoudeh-whose conversation was taped­ was just held hostage by the Iranian military attache," "That would be a good suggestion, to have a meeting the NSIPS correspondent told the press and Mr. Powell, together and discuss these things and then if we can do laying out the preliminary results of the investigation. any help to this problem (sic), by all means. Otherwise, But Powell-like the State Department earlier-had no then we'll ship it to someone else in the country, or explanation for the presence of Capt. Setoudeh. Nor maybe in the embassy." would either the White House or the State Department Setoudeh confirmed, twice, that he is the "proper com�ent on why the Iranian diplomats had not I�ft the person" to handle such matters, and he asked only, country in the face of the order from the President that "Could you tell me only which force is your company they be ousted. dealing with? Is it the air force? The navy? Which one?" At the State Department briefing, Hodding Carter He also said that he would be happy to clear his entire III was equally uncommunicative, promising to answer schedule fo r the next week-"even Christmas Day"-to the questions after checking in with Secretary of State meet the' "arms dealer." Cyrus Vance. After the briefing, however, State's Near Earlier, Iranian sources had revealed that despite the East Affairs Public Information chief George Sherman

38 Special Report EIR January 8- 14, 1980 Who controls Iranian terrorism

Royal Institute of International Affairs (Chatham House-London) � ------.-.. Council on Foreign Relations (New York) I British Secret Intelligence Services I I I Muslim Brotherhood (Fedayeen-e Islam)

U.S. • Pentagon Iranian Revolutionary Council (of Ayatollah Khomeini) ------I Office SAVAMA of (Iranian Secret Police) Naval Intelligence

Iranian Embassy Washington, D.C. A. Nahidian "merchant" Ali Agha, Charge d'Affa ires (SA VAMA Coordinator U.S.A.) I Capt. Setoudeh, A. Nahidian, Jr. "Military Attache/ (Chairman, Muslim Student Coordinator" Student Association)

Muslim Student Association (Persian-speaking core-group) I Terrorist 'Pool'

sidled up to NSIPS to say that he "might be able to help telephone interview. He was asked his fu nction. you a little more on that if you tell me why you are asking "This is the office dealing with students in American that question." universities," he said, after some hesitation. "I deal with Meanwhile, a dozen offices at the Pentagon refused both military students and civilians, especially those in all comment. engineering courses." According to Setoudeh, at each By the fo llowing day, reporters in Washington, in­ such university in the country where Iranian students are cluding the White House correspondents for several present-and he claimed over 40-"there is a military major national networks and leading Washington dail­ liaison officer." ies, were now looking into the story. That day, Dec. 21, Repeatedly, Setoudeh denied being the defense at­ NSIPS called Capt. Setoudeh from New York fo r a tache, although the embassy assured NSIPS that he is.

EIR January 8-14, 1980 Special Report 39 The terrorism connection In addition, it is reported that several branches of Setoudeh's admission that he coordinates student U.S. military intelligence, especially Naval and Air Force activities touched off another line of investigation. intelligence, have been deeply involved in helping to Quickly, NSIPS established that Setoudeh is a close and consolidate the new Khomeini regime in Iran, including regular associate of Abolfazl Nahidian. Nahidian, who to build up its own intelligence and secret police capacity. purports to be a Washington rug merchant with offices To accomplish that, the Anglo-American intelligence on Wisconsin Avenue, is in fact one of the top coordina­ services have made use of deep-penetration networks tors of SA V AMA, Khomeini's secret police, in the within the Gld SA VV AK organization in coordination United States. In his business, Nahadian travels back with commanders like Admiral Habib Elahi. For in­ and fo rth between Washington and Teheran, and he is stance, in the assassination of Mustafa Chafik, Generals an outspoken supporter of Ayatollah Khomeini. Fardoust, Farouzian, and Kaveh were named as respon­ Reportedly, Nahidian has been involved in launder­ sible for planning the operation, and it was those three, ing as much as $2 million in the last month alone to among others, who collaborated with Khomeini and finance student activities by Iranians, including violence Admiral Habib Elahi and Gen. Huyser last year. and terrorism, in the United States. Nahidian is the real power behind the Iranian embassy in Washington, D.C., Ikhwan and the and several of his relatives and friends staff the embassy, Muslim Students Organization inCluding serving as the personal secretary to Ali Agha, On the U.S. side, the critical organization to look at the charge d'affaires . is the Muslim Students Association and its offspring. Nahidian's son, Abdullah Nahidian, is the head of The MSA and its allies are directly fr ont organizations the Muslim Student Association in Washington, D.C. It fo r the Muslim Brotherhood. Although based in London is the MSA-whose Iranian branch, the MSA-PSG (Per­ and Geneva, the Brotherhood was early on unable to sian-Speaking Group) was founded in the United States fu nction there effectively because it was illegal and sup­ by former Iranian Foreign Minister Ibrahim Yazdi­ pressed in every Arab state. After the 1950s, however, which conduits most of the terrorists who enter the when the governments of the Muslim countries began United States to safehouses around the country. sending thousands of students to the United States fo r Meanwhile, fo llowing the murder of Chafik in Paris, higher education, the Muslim Brotherhood saw its op­ police in England, 'On the recommendation of French portunity. security officials, arrested a young Iranian for the mur­ The effectiveness of the Ikhwan-MSA apparatus is der. As it turned out, it is reported that the alleged shown by the fa ct that the destabilization of lran was run assassin came to Paris fr om the United States. So far, it largely out of the United States and France by Ikhwan­ has not been established who his contacts were while in MSA agents like Ibrahim Yazdi and Sadegh Ghotbza­ the United States. But, in the last several weeks there deh . have been several reported (and other unreported) cases The Indiana complex of the MSA and the Cultural of arrests of Iranian terrorists here, including one case Society, another front group, is the center of the U,S. that received initial pUblicity in which eight Iranians arm of the Ikhwan. In Indianapolis, and in nearby Plain­ were arrested in the Baltimore-Washington area with field, an interlocked network includes: the Cultural So­ explosives and weapons; immediately, a national security ciety, the MSA, the North American Islamic Trust, the clampdown was imposed on the case. Research Center, the Islamic Teaching Center, a network The extent to which U.S. officialcircles are implicated of Brotherhood-owned businesses including the Salam in the above-described events is not entirely clear. What Agriculture Corporation in Missouri, a publishing com­ is known is that Admiral Habib Elahi is reportedly still a pany, and the mysterious Documentation Center. leading personality in providing intelligence and infor­ The Documentation Center revolves around a $2 mation to the Khomeini regime, and that he was a million computer with a loo-telephone-Iine hookup. Al­ sponsor of Capt. Setoudeh for years. Presently, the ad­ though fe w people are willing to discuss the purpose of miral is reportedly under the protection of U.S. military this center, ostensibly meant to catalogue Muslim histo­ personnel at a U.S. naval installation in Norfolk, Virgin­ ry, it reportedly serves as an intelligence center for the ia. According to Iranian sources, Habib Elahi was al­ worldwide Ikhwan. lowed to leave Iran-unlike other military Nearly all of the businesses and fronts that have been commanders-when the Khomeini regime assumed set up by the Brotherhood in the United States serve, in power. He was also allowed to smuggle as much as $3 part, as conduits for enormous flowsof cash. Last year, million out of Iran with him. according to a source close to the MSA, the Association Iranian sources report that Habib Elahi was critical received $8 million from the state of Qatar in the Persian in bringing Khomeini to power. Gulf!

40 Special Report EIR January 8-14, 1980 v. The Brotherhood in Britain's great game by Daniel Sneider

With these words the British architect of the CENTO military pact, Sir Olaf Caroe, began his book, a call for the "Surely it is within the Central Asian "liberation" of the Soviet Central Asian regions of Russia and the Cen tral Asian republics entitled: Soviet Empire: Th e Turks of Central borders of Russia, that the real problems Asia and Stalinism. The strategy Caroe put fo rward is the of the immediate fu ture are going to strategy being pursued today in Iran and Afghanistan­ which is fa st bringing the world to the brink of thermo­ develop. " nuclear war. -Chester Wilmot, 1952, Soviet Empire The British strategy, as expressed by Caroe more by Sir Olaf Caroe than 25 years ago, was to launch an Islamic revival� a wave of fu ndamentalist irrationalism that would sweep into the Muslim regions of Soviet Central Asia and bring about a breakup of the "Soviet Empire" from within. The doctrine of the "Islamic Card" aimed at the "A bout the middle of the 19th century the southern fl ank of the Soviet Union is a later development in a two-centuries-old British geopolitical doctrine. The shadow of Russia in Central Asia began to roots of this doctrine are known in the lexicon of the fa ll across the vision of a Britain which had British Empire and of Rudyard Kipling as The Great just succeeded to the Sikhs in the Panjab Game. and was occupied in the consolidation of Caroe himself was the Governor-General of the territories which became known as the Northwest Frontier province of the British raj , an expert in the control and handling of the Pathan tribes of that North- West Frontier. From that da te the region (and Afghanistan), and a "Pakistan hand." Car­ externalpolicy of the British governmen t oe's strategic doctrine rests, like that of all British Ori­ in India was directed mainly to the entalists, in a mystic version of the power of Islamic stabilization of Middle Eastern fr ontiers backwardness, which he counterposes as a virile force compared to the decadence of the Hindus. and to safeguarding the continued Before he wrote Soviet Empire, Caroe earlier wrote a existence of Persia and Afghanistan book in 1951, which states more broadly the postwar against the fo rces of Russian conception of the Great Game. Th e Wells of Power: The expansionism. As a result of that policy Oil Fields of Southwest Asia proposes that control over the Russian advance was halted. where it Persian Gulf oil is the key to Anglo-American strategy and that the South Asian subcontinent of Afghanistan, still stands. on the Oxus (river) and along J ndia, and Pakistan be looked at only from this aim. the fr inge of the Turkmen mountains. " Caroe concludes that India will not be controllable by -Sir Olaf, Caroe, 1953 from the Anglo-Americans, but that Pakistan, which guards Soviet Empire the outer edge of the Persian Gulf, must be built up as an Anglo-American bastion. From this view emerged CENTO, the Central Treaty Organization which linked Turkey, Iran, Pakistan, and

EIR January 8-14, 1980 Special Report 41 Great Britain, with the United States as an Observer. CENTO was aimed to the north, as NATO's arm on the southern borders of the Soviet Union. As the United The Islamic card States embarked on a Pakistan-centered policy, India against the Soviets developed closer relations with the Soviet Union. India also advanced its traditionally pro-Afghan policy, as In mid-April 1979 in Teheran an interview was Washington built a triangular alliance from the early broadcast with the Ayatollah Kazem Shariatmadari. 1960s onward with Pakistan and Peking. who was then the acknowledged No. 2 religious leader in Iran. Th e Soviet journalists who conducted the interview never reported this part of his inter­ The shift view: to an Islamic CENTO The present Iran-Afghanistan situation is aimed at We hope that you will pay more respect to the the transformation of Caroe's obsolete CENTO into a religion of your 45 million Muslims and believe in new Islamic version of the same. This is the significance more freedom for them. of the elimination of the Shah of Iran, who had his own The Soviet government should not allow the ideas about regional pacts, and the overthrow and legal Afghanistan regime to continue its harsh treatment assassination of Pakistani President ZulfikarAli Bhutto. of Muslims, including the clergymen and intellec­ Bhutto was committed to a policy of economic coopera­ tuals. It would be best for the Soviet Union to allow tion with India, the Soviet Union, and others, as well as Afghans to live peacefully and fo llow their Islamic departure from CENTO and all such pacts. religion. Bhutto's overthrow in mid- 1977 brought to power a military junta headed up by General Ziaul Haq, whose only distinguishing characteristic is that he is the nephew of the present head of the Muslim Brotherhood's South peoples are really lost fo rever to the Soviet machine, Asian and Pakistan affiliate, the Jamaat-e-Islami. Haq's whether Soviet modernization has succeeded in "forcing declaration of an "Islamic Republic of Pakistan" is a the nomadic population off the steppe to be merged with military version of Iran, which has almost no popular the static sedentary population of the cities." base but is in power by virtue of its repressive powers. Caroe's answer is that the spirit will win out over President Daud of Afghanistan, who had come to materialism . Like the fo llowers of Mohammed, he says, power himself in a 1973 coup against the king, was in "their Turkish successors may free themselves from the early 1978 moving to join Genera Zia in a renewed Russian proletarian chains, marching under a new ban­ CENTO arrangement, including allying himself with ner." Caroe continues: "And in these days it may even Sadat's Egypt. In April of 1978 Daud was killed in a brief come to pass that this will be decided on what is now but bloody army coup led by young left-wing officers known as the cold war front." Central Asian Islam, he who had brought him to power in 1973, but were in fact states, will be "reanimated" by the "encounter with loyal to the country's tiny but apparently well-organized Communism" and will be "roused to a new height of pro-Soviet People's Democratic Party. This development spiritual reaction." undoubtedly threw a spanner into the Islamic works-it In the romantic language of a Lawrence of Arabia is interesting to note that the rise of activity against the Caroe proclaims: "A new urban proletariat descended Shah in Iran occurs after this time. from the virile free-born pastoralists has been created, and the fresh mixture may supply the very element The roots of required to leaven the lump, the spark to set the whole the Great Game fa bric alight." A reading of Caroe's Soviet Empire in light of Kho­ At this point Caroe draws his "prediction" to a close meini's Iran today gives a glimpse into the years of with a re markable declaration of homage to the model preparation of the "Islamic Revolution" by its British for his re vival-the antirationalist Islamic ideologu,e AI­ sponsors. Caroe "predicts" the Islamic revival. The bulk Ghazali: of this book is a description of the Soviet absorption and industrialization of the Central Asian republics-in the Such a spiritual renascence might spring from with­ tone of a diatribe against Stalinism and the destruction in the body of the fa ith, as it has done before. One of the "free peoples of the steppe." Caroe asks if these of the greatest and most original thinkers and

42 Special Report EIR January 8-14, 1980 theologians that Islam has produced was AI-Gha­ ill-fated attempt to set up independent Islamic republics zali .... In the throes of this conversion [to Islam ] out of Russian Central Asia in the midst of the chaos of AI-Ghazali broke down both physically and men­ the Russian Civil War. A British colonel attempted to tally, and went into retreat. run an armed force into Russia from Meshed in Iran, in When he emerged, he thought that a purely support of the proclaimed Bukhara Republic. With the philosophical structure had no base .... Even ulti­ aid of Pan-Islamic Turkish renegade Enver Pasha, tribal mate truths could not be fo unded on intellectual chiefs and their fo llowers attempted a resistance which certainty, but only proved by the direct knowledge fai led, and the British were fo rced to give up that effort with which God fl oods the heart of the believer .... at breaking up Russia. Only a great emotional experience could break the I n Afghanistan the period of the 1920s was a Great fe tters of tradition and give the force needed to turn Game for influence in the court of Amanullah, with the the current of the age .... Many said that indirectly Soviets gradually gaining as the Amir sought to emulate AI-Ghazali's thought had an influence on the West, Ataturk in introducing reforms of law, getting rid of and fl owed through Thomas Aquinas to affect backward Islamic practices (like the woman's purdah), Pascal. ... and introducing a modern army. These measures were In this age of spiritual hunger, it may be that in met with British intrigues in the fo rm of bought-and­ the line of AI-Ghazali another inspired mujaddid paid-for mullahs, who engaged in spreading slanders of (renewer) will arise, and point the way to all believ­ Amir as un-Islamic. Phony photos of his wife, who had ers .... There is good reason of recent showing fo r appeared once in Western dress, were circulated, show­ the belief that the older inspirations of the Central ing her naked surrounded by Western men. The British Asian peoples have not yet fai led; there are also operations were run out of the territory that Caroe ran, grounds fo r supposing that the impact of the new the Northwest Frontier, and included the purchase of has not been wholly destructive, but by a process of Pathan tribes to oppose Amanullah. catalysis may even bring about some renewal of In 1928-29 a "rebellion" was launched, fi rst involving life .... It is fo r the free world to fo recast the delivery a bandit named Bacho Sacco, who had been released and nurse it when it comes. from a British prison in the Northwest province and sent back into Afghanistan to lead a gang of tribes against Read against the existence of Khomeini in Iran this can Amunullah . Meanwhile, Amanullah's relative and for­ hardly be understood as mere insight on the part of mer chief of the Afghan Army, Nadir Shah, had slipped Caroe. back from exile in France where the British Ambassador ran him, into India. After Amanullah had been unable to defeat the tribes, he abdicated, leaving a vacuum tempo­ The Afghanistan Lynchpin rarily fi lled by the bandit Sacco. Nadir Shah shortly after The pinpoint control of the Great Game by the entered Afghanistan with a fo rce of Pathan tribesmen British Secret Intelligence Services needs only the fu rther from the Indian side of the border and took the capital, illustration, in brief, of the preview of the present situa­ proclaiming himself king. tion in Afghanistan which occurred earlier in this centu­ The ruling fa mily, Nadir and his son, Zadir Shah, ry . ruled to 1973 when Zahir was overthrown by Daud, his In 1919, the Afghan Amir (king), a paid puppet of brother-in-law who proclaimed a republic ending the the British, was assassinated and his younger brother monarchy in name but not in fact. The April 1978 took the throne. The new ruler, Amir Amanullah, was Revolution ended it in fa ct. It is not surprising that the strongly anti-British and embued through advisers with communist-led new regime immediately identified itself ideas of reform and modernization of his backward with Amanullah and his tradition, and proceeded to country. Amanullah fi rst went to war against Britain, introduce similar reforms, only going much fu rther than raising the Pathan tribes in a revolt which, although the king was ever able. short, resulted in a British concession of fu ll indepen­ The tribal rebellion now against the Afghan regime dence to Afghanistan. Amanullah was one of the first comes from the bands in Pakistan, the same areas of the recipients, along with Kemal Ataturk of Turkey, of the old Northwest Frontier province, and is led by the sons hand of friendship from Lenin and Soviet Russia. In of the men and the mullahs who were in the pay of the 1921 Russia signed a friendship treaty with Afghanistan. British the last time around. The Game is the same, it has The British response to these developments had be­ not changed from the British side in the least. The same, gun immediately after the Russian Revolution, with an perhaps, cannot be said fo r the Russian side.

EIR January 8-14, 1980 Special Report 43 Mghanistan:Is it the new Samjevo?

by Daniel Sneider

Some days after the coup in Kabul and the massive flow The definingcha racteristic of the present situation is of Soviet troops into Afghanistan, a British journalist not the Soviet move but the severe miscalculation-and reported the following story from Teheran where the in the case of National Security Adviser Zbigniew Brze­ Soviet embassy was briefly stormed by Iranian and Af­ zinski, madness-in the response coming from Washing­ ghani exile protestors. A Soviet embassy official was ton. Brzezinski's stated intention to play the "Islamic asked what they would do if their embassy was occupied card" against the Soviet Union, including a clearly sig­ in Iran. The official removed the wristwatch on his arm naled effort to effect an alliance with the Islamic kooks in and placed it on the table. "It is now 3:00 o'clock," he Iran and Pakistan against their "new enemy," is merely said. "By 3:45, there would be no Iran ." one aspect ofthat miscalculation. More dangerous is the This perhaps neatly sums up the meaning of the dispatch of Defense Secretary Harold Brown to China, a Soviet move-that superpower is prepared to act when it previously scheduled visit now described as taking place fe els its vital strategic interests and national security are "in a new dimension." threatened. The question of why the Soviet Union did what it did in Kabul remains, but it is not so mysterious a puzzle to solve as people have been led to believe in the The buildup of events past days. in Europe It is not the events within Afghanistan which brought The most crucial development leading up to the Soviet troops into action fo r the first time since 1945 present situation was the NATO December decision to outside the boundaries of the Warsaw Pact. Rather it was place the new Pershing II tactical nuclear missiles in the conclusion drawn by the Soviet leadership, and in Western Europe, a decision brought about by the capit­ particular the Soviet military which is now evidently in ulation of West Germany and Italy to heavy pressure command of the situation, that the United States ad­ from Washington and Bonn. The Soviet Union had ministration, allied with that of London, has committed made it clear beforehand that such a decision would be itself to a policy of ending detente in favor of an arms viewed as bringing to an end further arms control talks. buildup, confrontation in El,lrope, and an alliance with The Soviets rejected the formulation put forward by the the Peking regime in China. The Soviet move was care­ pressured government of c!hancellor Helmut Schmidt fully prepared and chosen to deliver an unmistakable that the decision for production could still be followed signal to both NATO and China that a threat to per­ by arms control talks, before actual deployment of the ceived vital Soviet interests would be met, not with missiles took place. Soviet Foreign Minister Gromyko diplomatiC protest, but with every weapon in the Soviet stated that the decision "destroyed the basis" for further arsenal, including total thermonuclear war. negotiations, and a Soviet source is cited in the New York

44 International EIR January 8-14, 1980 UN /a lt., S ''I O F S O VIET SOCI ALI T o

1'l '" f C \\\ P EO P LE'S REPU BLIC 0

The strategic location of Afghanistan

Those nations which Zbigniew Brzezinski and other "enci rclement" strategists have dubbed "the arc of crisis" are darkened in on the above map. In the Brzezinski strategy to surround the Soviet Union, so abruptly proven bankrupt by Soviet military action in Afghanistan, the "arc" was designed as a southern "front," Europe with modernized missiles a western "front," and China, poised against Vietnam, the eastern "front."

Times this past week saying that after all, he "meant it." budget, and similar issues. The Post concludes that this That this is the Soviet view is even reported in the was the last phase of a Soviet policy review before the New York Timesand Washington Post of Jan, 3, which finaldecis ion was made. both carry summaries of the view of a top Soviet.source, The collapse of Soviet detente endeavors was keyed obviously the same one. As the Times puts it: "The most of all to their entente with Paris and Bonn, based sources said the Kremlin had decided to move only after on the economic cooperation outlook expressed in the a review of what it regarded as setbacks to detente with May 1978 Schmidt-Brezhnev accords and the 25-year Western Europe and the United States, meaning the economic cooperation pact the two leaders signed. The decision by the Atlantic alliance to deploy more modern collapse of Bonn under AnglO-American pressure, in the nuclear-armed American missiles in Western Europe and context of U.S. intervention threats in Iran, creation of the likelihood the Senate would reject the arms treaty." the so-called mobile strike fo rce, and the Euromissiles The Washington Post had earlier reported that Soviet decision dealt a death blow to the Soviet-Brezhnev strat­ Ambassador to the United States Dobrynin was recalled egy, forcing a shift from a basic war-avoidance posture to Moscow about three weeks before the Afghan move. to a war-fightingpo sture. Just before he left he had a long meeting with State This can be easily confirmed in the pages of Red Star, Secretary Cyrus Vance in which he asked detailed ques­ the Red Army's daily, where article after article appears tions on the administration's policy, toward SALT, arms now talking of the "arms race" and the "end of detente."

EIR January 8-14, 1980 International 45 Most pointed was the appearance of an article by Major­ also Brzezinski's Islamic card. The talk is now of a new General Simonyon the day before the Soviet-backed NA TO-axis in the Middle East, an Islamic pact which coup in Kabul. Simonyon declared that the adoption of would include Egypt, Turkey, Saudi Arabia, Oman­ the limited nuclear war doctri ne implied in the Euromis­ and all linked to Israel in a new "Middle East Treaty sile decision was highly dangerous and was based on the Organization." This scheme is linked with establishment illusion that any conflict in Europe could be contained 'Of a permanent U .S. military base or bases in the area, below the level of full-scale warfare. Such a move he said with Egypt's Sadat seconding Israel in making that would require Soviet response. fo rmal offer. Pakistan, of course, is seen as a crucial part The degree of Red Army command is also illustrated of this military pact. The aim is a new Islamic Central in the Kabul move itself. General Igor Pavlovsky, the Treaty Organization, which could include Iran, in the Soviet Deputy Minister of Defense and commander of view of many in Washington, provided Khomeini would the Soviet ground forces was present in Afghanistan recognize that Moscow is a bigger threat than "U.S. from mid-August onward for two months. He is report­ imperialism." ' edly in command from a position in Soviet Central Asia Such talk of an Islamic pact against the Soviet Union of the present Soviet troop deployments. More momen­ brings us back to the Afghan situation, which must be tous perhaps is the reported ongoing visit of the com­ properly treated as a relative side affair. The speCUlation mander of the Soviet fleet, Admiral Gorshkov, to Viet­ surrounding both the military move and the coup rests nam, supposedly to attend the 35th anniversary celebra­ on an alleged fear from Moscow that the Islamic guerril­ tions ofthe Vietnamese army. las based in Pakistan who had been battling the Kabul The Carter administration itself seems to regard the government were about to win, and that the dispatch of key point as Europe in sending Assistant Secretary of the Soviet troops and the removal of President Amin in State Warren Christopher there for consultations. A first favor of the more conciliatory Babrak Karmal was a meeting was held in London, followed by a NATO response to this situation. council meeting in Brussels. While Christopher claimed The evidence at hand does not bear this explanation assent by all in London-representatives from France, out. One clear sign that Moscow is not worried about Britain, Germany, Italy and Canada-to a complete Islamic fundamentalism infecting its own Muslim popu­ review of bilateral relations with Moscow, the reality was lation is the fact that much of the Soviet fo rce is com­ otherwise. The French foreign ministry immediately is­ posed of soldiers from Soviet Tadjik and Uzbeck popu­ sued a disclaimer on the truth ofthat statement, and the lations, who can speak the Darsi dialect spoken by many latest reports from Bonn, where the initial reaction was Afghans from similar stock. somewhat in line with Washington, is that the German More important in the Soviet view is the organized foreign ministry is unhappy with talk of U.S. military aid effort being mounted from Pakistan (and Iran) by groups to Pakistan because of fears this "might broaden the run by the Muslim Brotherhood and linked to British, conflict into a general East-West conflict." This report, U.S., Chinese, and Egyptian intelligence. The Pakistani from the FrankfurterAll egemein Zeitung, also cites those government has been none too careful in concealing its sources saying that SALT II must be ratifiedand mutter­ role in upsetting Afghanistan-providing base camps, ing that the "public debate" about "sanctions against conduiting arms from China and elsewhere, giving train­ the U.S.S.R. was inappropriate." ing and allowing the Pathan tribes of the Northwest France and President Giscard d'Estaing have been Frontier province to be freely used as the main forces of far more direct in resisting the direction coming from the guerrilla raids into Afghanistan. One could say this is Washington. Giscard went on French TV on New Year's Soviet propaganda, but that is simply not the case. Eve to declare that the question before the French people At this point an effort to reinforce the Pakistani was one of "war or peace." In a sober tone he declared regime flies in the face of that reality. With the likely that "the war danger is real," while expressing hopes for victory of Indira Gandhi in the Indian elections, Pakistan cool-headedness among world leaders. Later that week ruled by a narrowly based Islamic fanatic-run military Giscard reportedly told a diplomatic gathering in Paris junta (which sat by while the U.S. embassy was burned in that "detente is irreversible" and that new conceptions Islamabad) loses out to Bolivia in the polit�cal stability would now be necessary to strengthen detente. No men­ category. That leaves Peking, which is contemplating a tion was reported to have been made of Afghanistan. new invasion of Vietnam, as the Carter administration's line of response. This, too, is hardly impressive. The Kabul, Pakistan problem for Brzezinski comes at this crucial juncture­ and the Islamic card the point at which his paranoid fantasies of breaking up Despite this dose of reality, the Carter Administra­ the Soviet Union between the force of Khomeini and tion, joined by Great Britain's Margaret Thatcher, is Mao Tse-tung fo llowers meets the cold steel reality of the rushing headlong into not only the China Card game but barrel of a T -72 tank.

46 International EIR January 8-14, 1980 istan. The securing of the Muslim Brotherhood's dicta� torship over Iran meant a hardening of the Muslim Brotherhood's dictatorial control over Pakistan, and the launching of massive destabilization operations against Afghanistan involved use of Iranian and Pakistan bases for such operations. I underlined the point that Moscow The truth behind the would not tolerate such an operation against its southern flank. Either it would deploy Soviet military capabilities Soviet Afghan coup to deliver heavy penalties against Iran and Pakistan by way of Afghanistan, or it would defer such Soviet mili­ by Lyndon H. LaRouche, Jr. tary involvement no longer than the continuing destabil­ ization of Afghanistan brought that nation to the verge This past week, the Soviet military command did what I of collapse. This latter qualification I made in a later have been warning they would do in the event of a new memorandum on the situation in that area. Peking threat to Vietnam. I warned that in case of an All this has occurred as I have outlined during the imminent Peking invasion of Southeast Asia, or threat of spring and summer of 1979. a great-power confrontation in the Middle East, the The present Soviet Afghanistan scenario I discovered Soviet military command would choose to launch a this past summer, while examining the strategic situation massive Soviet military deployment into Afghanistan. on the Soviet southern flank in broader terms. Although the past week's massive Soviet military The most deadly fe ature of the present global strateg­ deployment occurred in the context of a coup d'etat most ic situation is Carter administration adoption of a lunatic probably conducted by the Soviet KGB, the military thesis usually associated with the name of Henry A. operation was not under the command of the KGB. It Kissinger. This doctrine insists that an actual thermonu­ was the reaction which I have expected for months from clear war can not occur, since both superpowers know the top levels of the Soviet military command. The two the extent of the devastation such a war would mean. developments should be studied separately for purposes Therefore, the doctrine continues, Moscow will accept of formulating Vnited States policy toward them. warfare at a lower-than-thermonuclear threshold, limit­ All leading Western military and intelligence com­ ed to one or two theaters of conflict, each theater's mands have copies of my earlier report on a probable warfare confinedto the boundaries of warfare definedby Soviet military "Afghanistan scenario" in their posses­ "flexible response" doctrines. sion. This should have been brought to President Carter's That is the Kissingerpassociated doctrine denounced attention immediately once the predicted operation went earlier this year by the late Lord Louis Mountbatten and into effect this past week. Apparently, that was not done. others as an insane plunge into thermonuclear war by Instead, the Carter administration is acting on the basis gross strategic miscalculation. of an incompetent estimate attributed to crazy Zbigniew This past autumn, two leading Soviet spokesmen Brzezinski. issued an extended interview to the West German press President Carter's reaction to the past week's Af­ in which they identified such a Kissinger�like doctrine ghanistan developments is about 180 degrees off-target. with a Carter administration secret resolution of Aug. Carter's reaction was ignorant and dangerously incom­ 25, 1977. Close study of patterns of statements from petent. relevant Soviet and Warsaw Pact sources during the same period showed that that reference to a Carter The LaRouche administration secret document of Aug. 25, 1977 was an Afghan-scenario analysis official reflection of the policies of the Soviet command. My discovery of the "Afghan scenario" response­ The Soviets are determined (A) to counteract each option of the Soviet military command developed as a and every V.S./NATO development they view as con­ by-product of a summary warning I circulated in relevant sistent with the implications of such a Kissinger policy, channels, in an effort to induce the Carter administration and (B) to display an indisputable signal demonstrating to halt V.S. operations in support of the overthrow of their unwillingness to discount a total thermonuclear the Iran government of Prime Minister Shah pour Bakh­ response to a decisive effort at exploiting what Kissinger tiar, operations in favor of the establishment of the et al. view as the advantageous potentialities of the Khomeini-Ied dictatorship. Kissingerian doctrine of "only flexible response." In the course of outlining the chain-reactions a Kho­ The hottest of the hot-spots, with respect to such a meini coup d'etat would set into motion throughout the Soviet response is Southeast Asia. The fo llowing scenario region, I included focus on the implications for Afghan- shows why.

EIR January 8-14, 1980 International 47 I. Peking launches its now-prepared invasion of significance. It is the show of strategic determination Southeast Asia. that would be crucial.

2. This invasion brings an assured military action 5. The uniqueness of this Soviet option is deter­ by Soviet forces against China itself. mined by the fa ct that Afghanistan is the only available 3. Ifthe United States honors its secret agreements place in the world in which the Soviet command could with Peking, World War III probably occurs right effect such a massive show of determination to such then and there. effect without risking some degree of direct actual confrontation with the interests of the U.S. and Since Soviet military action against China is NATO. "locked in" in Moscow fo r such a case, the principal concern of the Soviet military command is to avoid war This past week, that signal was delivered. with the United States by giving a strategic signal which makes clear that Moscow will not act according to the The Afghan coup Kissingerian doctrine. My views on this point coincide The past week's coup d'etat in Afghanistan is to be with the arguments of the late Lord Mountbatten, who judged an almost coincidental feature of the military correctly identifiedthe "China option" as the most prob­ display as such. able trigger for imminent eruption of general thermonu­ The limited information my intelligence organization clear war by strategic miscalculation. has so far developed concerning the coup d'etat itself is Examining the overall strategic situation in that light, as fo llows. it becomes clear that a Soviet military deployment into Afg hanistan was the uniquely definedSo viet response to the imminence of a Peking invasion of Southeast Asia. The reasons are summarily as fo llows: l. Afghanistan is indisputably a matter of Soviet strategic interest, of no proper strategic interest to the Moscow finds detente United States or NATO. A U.S. adoption of Afghan­ istan as a sphere of U.S. or NATO interest would, in 'at a standstill' fact, be viewed by Moscow as tantamount to a U.S. commitment to thermonuclear war. Only a lunatic in The Soviet military daily Krasnaya Zvezda, in a Washington or Brussels would argue against this the­ Dec. 30 commentary headlined "The Wind of Histo­ sis. ry," declared that "detente has come to a standstill." 2. Therefore, beyond making threatening diplo­ Strategic commentator Col. M. Ponomarev wrote matic faces at Moscow in event of such a Soviet that the U.S. has shifted increasingly toward "politics military operation in Afghanistan, only a lunatic ad­ fr om a position of strength," due to the deepening ministration in Washington would go beyond the mere economic crisis in the capitalist world and the "break­ making of fa ces. down" of American domination in the West. "This 3. Similarly, limited military penalties delivered in breakdown is final and irreversible," he said. Iranian and Pakistani border areas by Afghanistan­ Ponomarev described NATO's Dec. 12 decision to based Soviet military forces would not be of strategic begin production of new medium-range nuclear mis­ interest to the United States, provided these were siles for deployment in Western Europe as a reflection thrust-and-withdrawal operations of a "hot pursuit" of this U.S. policy. He went on to warn that playing variety, limited to destruction of military concentra­ "hazardous games" with China will have unpleasant tions and logistical support capabilities. While a U.S. results for those who do so. administration would make faces and some unpleasant The Soviet colonel ridiculed NATO's claims that noises about such developments, private judgment arms buildup and an offer for arms control negotia­ would be that the Iranians and Pakistanis have tions can proceed in parallel. "The Atlanticist gentle­ brought such punishment upon themselves. men have a very strange understanding of geometry. Back in the time of Euclid it was already known that 4. If the Soviet command wished to deliver a clear parallel lines never come closer to one another-and signal of rejection of the Kissingerian thesis to NATO never cross . ...The NATO bloc has destroyed the and Washington, Soviet military action in Afghani­ basis for negotiations on medium-range missiles with stan would be escalated way beyond actual require­ its decision." ments of the Afghan operation itself. This would involve a show of Soviet deployment capabilities; how­ ever, the display of capabilities would be of secondary

48 International EIR January 8-14, 1980 1. The official Soviet line on the coup d'etat centers intelligence sources consulted so far, the operation ofthe around the allegation that the deposed, and now de­ Soviet military command was ordered through the high­ ceased former ruler, Amin, was "an American agent." est levels of the overall Soviet command, at a much I have no reliable information concerning that allega­ higher level than either the KGB or the military itself. tion itself. The proper evaluation of this admittedly limited in­ 2. Search of the pedigree of the newly installed fo rmation focuses on the gross dissymmetrybetween the ruler so far shows him to have a Phil by fa mily dossier requirements of a KGB-directed coup d'etat and the as fa r back as searches have gone. This probable extent of Soviet military forces deployed in the context of , evaluation of the newly installed ruler coincides with that coup d'etat. The implications of that dissymmetry the position ofH. "Kim" Philby as a recently appoint­ are conclusive. The coup d'etat is merely an incidental ed general of the KGB. correlative of the principal operation. Therefore, the coup d'etat itself is most probably an operation of the Soviet KGB, or an operation of the Iranian implications KGB in cooperation with the Soviet military-intelligence It is an "open secret" in most best-informed Western agency, the GRU. European and other relevant circles that the Carter ad­ However, the military operation itself is not a KGB ministration has established a secret agreement with operation. It is entirely an operation of the Soviet mili­ Moscow for the present Iranian crisis. In part, this secret i tary command. According to best highly placed Western agreement involves exercise of o d treaty agreements under which the Soviet Union occupies the northern portion of Iran and the United States takes control of the southern portion. It is also generally held opinion that this Moscow­ Washington secret agreement will go into operation at about the point combined U.S., British, and Australian 'Euro-strategic war' task forces commence military operations against Iran. For this reason, some experts speculate that Soviet a miscalculation deployment into Afghanistan is a preparation for Soviet occupation of the northern section of Iran-according to Red Star carried the fo llowing statement by military the secret Washington-Moscow agreement. The fact that commentator, Major-General Simonyan. the Soviet deployment coincides with President Carter's press for United Nations sanctions gives credibility to (N A TO's decision on stationing missiles in Eu­ such speculations. It is true that a Soviet thrust into rope) qualitatively changes the strategic situation in northern Iran would impel Iranian military forces toward Europe and destabilizes the situation in the whole Afghanistan, and that Soviet Afghan forces would there­ world. It is fully natural that the Soviet Union and her fore be preemplaced fo r greeting that deployment. allies could not remain indiffe rent to this fact and However, against this, there is the dissymmetry of the would be forcedto take responsive measures .... scale of the present Soviet Afghan deployment with the The calculations of the advocates of a "Euro-stra­ required operations for such a preparation. The immi­ tegic war," that it would be possible to keep it within nent Soviet thrust into northern Iran is a secondary predetermined borders, are without any substance. implication of the Afghan deployment, but just that. An aggressor attacks because he wants to destroy the This is no Soviet bluff. They mean exactly what they victim of his aggression or force him to his knees. imply by this demonstrative deployment. Now is the time Therefore he is ready to launch every means at his fo r the Carter administration to sit down hard on disposal. Under these conditions, the victim of the Ramsey Clark and his friends who have been manipulat­ aggression will not sit idly by. He will defend himself ing this Iranian hostage situation from the beginning. It and his allies and give a resolute rebuff to the aggres­ is time to cease tolerating the virtual treason of Brzezin­ sor. Realistically thinking circles in the West under­ stand this. The magazine Stern warns: "Unlike mili­ ski, Vance, and such Kennedy-machine types as Clark tary spots in Africa, Asia or the Middle East, a limited and his fr iends. There are penalties against the Muslim military conflict in Europe '" would quickly and Brotherhood internationally which would bring this cri­ automatically be transformed into a world nuclear sis back under control. It is time for Carter to drop his confrontation, especially if the arms of Western Eu­ affection for that terrorist cult he foolishly terms "Islamic rope were received from the U.S.A." fu ndamentalism," and to deal with Clark and other virtual traitors who led us into this mess. Put out this fire now, before it runs completely out of anyone's control.

EIR January 8-14, 1980 International 49 Documentation tion and the sovereignty, indepen­ dence and national dignity of the new Afghanistan.

The Vatican In both his homily for New Year's The world reacts to Soviet action Day and his speech before blessing a crowd in St. Peter's Square, Pope that he had been invited by the Af­ John Paul II noted that international Carter: ghan Government to come in and tensions have dangerously worsened Brezhnev lies protect Afghanistan from some out­ during recent days, "particularly on President Jimmy Carter made the fo l­ side third nation threat. This was the Asian continent," and asked the lowing statement to the Washington obviously fa lse because the person faithful to pray for peace, to prevent press corps immediately fo llowing the that he claimed invited him in, Presi­ the "terrible nightmare" which Soviet coup d'etat in Afghanistan. dent Amin, was murdered or assas­ would result from an international Such gross interferences in the sinated after the Soviets pulled their nuclear conflict. internal affairs of Afghanistan is in coup. He also claimed that they The Pope said he had received blatant violation of accepted inter­ would remove their forces from Af­ scientific information in a report de­ national rules of behavior. This is the ghanistan as soon as the situation tailing the extent of damage to life third occasion since World War II should be stabilized and the outside and civilization that would result that the Soviet Union has moved threat to Afghanistan was eliminat­ fr om such a conflict. In an apparent militarily to assert control over one ed. So that was the tone of his mes­ reference to the recent NATO deci­ of its neighbors, and this is the first sage to me which as I say, was com­ sion to modernize its nuclear arsenal, such venture into a Moslem country pletely inadequate and completely he said, "topics that have impressed by the Soviet Union since the Soviet misleading .... European public opinion during the occupation of Iranian Azerbaijan in He is not telling the facts accu­ last weeks of the year that has just the 19408 .... rately .... ended require us to think with con­ Soviet efforts to justify this action My opinion of the Russians has cern about the future ...We are think­ on the basis of the United Nations changed most drastically in the last ing of the cities in the West and also Charter are a perversion of the week than even the previous two and in the East that ... could be com­ United Nations. They should be re­ a half years ... And I think its imper­ pletely reduced to heaps of rubble." jected immediately by all its mem­ ative ... that the leaders of the world The principal findings of the re­ bers. I have discussed this serious make it clear to the Soviets that they port mentioned by the Pope were matter personally today with several cannot have taken this action to vio­ that between 50 and 200 million peo­ other heads of government, all of late world peace not only in that ple would die fr om the immediate or whom agree that the Soviet action is region but throughout the world indirect effects of nuclear explosions a grave threat to peace. I will be without paying severe political con­ if even 200 of the existing 50,000 sending the Deputy Secretary of sequences. nuclear bombs were detonated. State to Europe this weekend to meet Food resources would be drastically with representatives of several other Soviet Union reduced due to radioactive contami­ nations to discuss how the world Soviet President Leonid Brezhnev sent nation of fa rmland; dangerous ge­ community might respond to this the fo llowing telegram to Babrak Kar­ netic changes would occur in hu­ unwarranted Soviet behavior. mal, the head of the new government mans and in plant and animal life; Soviet military action beyond its in Afghanistan. and changes in the atmosphere own borders gives rise to the most I warmly congratulate you upon would bring further, as yet unknown fundamental questions pertaining to your election to the post of General dangers. international stability, and such Secretary of the Central Committee close and extensive consultation be­ of the People's Democratic Party of France tween ourselves and with our allies Afghanistan and to the highest state In sharp contrast to his usually opti­ are urgently needed. posts in the Democratic Republic of mistic year-end messages to the na­ Afghanistan. tion, French President Giscard

In answer to questions about the reply On behalf of the Soviet leader­ d'Estaing posed the question, .. Will of Leonid Brezhnev to Mr. Carter's ship and on my own behalf, I wish 1980 bring us peace or war?" Wh ile it protest over Soviet action in Afghani­ you great success in all your multifa­ can be assumed that good use is being stan, the President told ABC- TV in­ ceted activities, fo r the good of the made of the hot line between Paris and terviewer Frank Reynolds the fo llow­ friendly Afghan people. I am confi­ Moscow set up during Giscard's trip ing: dent that, in the current circumstan­ to the Soviet Union, there is no official He responded in what I consider ces, the Afghan people will be able to public statement on Afghanistan. to be an inadequate way. He claimed defend the gains of the April revolu- The danger of war exists. We are

50 International EIR January 8-14, 1980 living in one of those periods when choose their own government with­ cern the dangers for the indepen­ the balance of the world hangs on the out outside interference." dence of Afghanistan, which resulted ability of a few men to be cool-head­ Geoffr ey Rippon, Tory back­ from the coup in 1978 and the Soviet ed. I hope that the wisdom ofleaders bencher, and Chairman of the Com­ activities. The marching in and de­ will prevail. mittee on Foreign Affairs, stated: ployment of Soviet troops into this France is working for peace. It is "NATO powers must realize that country create an extremely serious doing so immediately through its their interests do not stop at an arbi­ problem, raising questions not only firm and realistic diplomacy which trary line in the Atlantic." He urged of the international order, but also of has -contributed to eliminating the an effective NATO presence in the the principle of the indivisibility of threats of destabilization from the region, adding that the Afghanistan detente and trust-building. . .. The African continent; it is doing so fo r events showed that Britain had with­ recent imperialistic policy of inter­ the future through initiatives such as drawn prematurely from the Gulf in ventionism and establishing of the North-South dialogue in order to the late 1960s. spheres of influence has no future. eliminate the causes of inequalities Labour Member of Parliament ... It is profoundly reactionary. and tensions in the world. Neville Sandelson stated: "Soviet ex­ The crisis? It does indeed threat­ pansionism is a major threat to West- China en us. ern survival. Britain must wake up to Th e Chinese government delivered We are going to feel a new shock, the dangers. Moscow simply exploits the fo llowing note to the Soviet am­ as a result of the oil price increases detente to its own advantage. We bassador in Peking on the Soviet recently confirmedin Caracas ... But should resolve in the new year to halt action in Afghanistan: France is not the same as it was in hypocrisy and stren/ gthen our own The Chinese government de­ 1973 ... It is better armed to resist the defenses. " mands that the Soviet authorities shock. Of all the industrialized coun­ immediately stop their aggression tries, ours is the one which has en­ and intervention in Afghanistan dowed itself with the most complete West Germany and withdraw all their armed fo rces Chancellor Helmut Schmidt's official energy policy. Our nuclear plants ... from that country .... Afghanistan spokesman, Klaus Boelling, issued the are progressively entering line. They is China's neighbor and therefore fo llowingstatemen t Dec. 28: have already permitted the creation the Soviet armed invasion of that of 100,000jobs. In the ten years be­ The Federal Government has country poses a threat to China's tween 1975 and 1985 they will repre­ noted the events in Afghanistan with security. sent a capacity equivalent to 45 mil­ great concern. It sees in the entry and lion tons of oil per year. This is a engagement of foreign troops in Af­ Iran little as though the French had built ghanistan an exceptionally serious Th e Iranian government issued the with their own hands an oil field situation, which rais�s basic ques­ fo llowing statement on Soviet action capable of producing annually more tions of international relations. The in Afghanistan: than half of what our British neigh­ Federal Government will examine We announce to the Soviet gov­ bors draw from the North Sea, and a these questions with its allies and ernment that now that we are strug­ field which will not run out. .. friends and also will contact coun­ tries fr om the region whose vital in­ 'gling against U.S. imperialism, the occupation of the neighboring terest are affected by the events. The Great Britain country by the Soviet army is in fact consultations have begun. In a 200-word note to President weakening our struggle against the The Ambassador of the Soviet Brezhnev, the full contents of which United States and is regarded as Union in the Federal Republic of were not disclosed, British Prime hostile action against the Iranian Germany, Mr. Semyonov, this Minister Margaret Thatcher said she nation. morning handed over a note from his was "profoundly disturbed" by the government to the Federal Republic This Islamic government of Soviet Union's thrust into Afghani­ of Germany in which the Sovie ac­ Iran cannot agree with military in­ stan. Thatcher told Brezhnev that tervention by any country in anoth­ tion is explained. On this occasion, Britain was "frankly puzzled" by the the Ambassador was told that the er country, especially military inter­ assertion that the intervention had note must be considered as exceed­ vention by a superpower in a small been at the invitation of the new ingly momentous and grave. The So­ country. Afghan government. She further viet note will be carefully examined. Because Afghanistan is a Mus­ criticized the Soviet Union for inter­ lim country and a neighbor of Iran, fe ring into the internal affairs of its Two days later, West German Foreign the military intervention of the gov­ neighbor. Minister Hans Dietrich Genscher ernment of the Soviet Union in the Th e Foreign Office issued a state­ gave a more strongly-worded state­ neighboring country of our coreli­ ment, Dec. 28: "The British Govern­ ment in an interview with the newspa­ gionists is considered a hostile ment condemns the Soviet action in per Welt am Sonntag. measure, not only against the peo­ Afghanistan. We believe the people The Federal Government and its ple of that country but against all in Afghanistan have a right to allies have watched with great con- the Muslims of the world.

EIR January 8-14, 1980 International 51 InternationalInteWgence

year. In the keynote speech, one of the Westen Europe will come under great . book's co-authors, Adm. Elmo Zum­ pressure to ally themselves with the Peo­ EUROPE walt, Jr. (USN, ret.), claimed that in the ple's Republic of China to counter Mos­ new decade "the shift in military power cow's increasingly assertive foreign pol­ Giscard sidetracked toward the Soviet Union threatens to icy." by red tape ? weaken our alliances with Western Eu­ Rand further cites threats to the sta­ rope and Japan." bility of the region from Korea and A new parliamentary crisis threatens to Zumwalt and other co-authors ofthe from "the impact of Islamic fundamen­ erupt in France when the National As­ book outlined a plan for matching in­ talism on such multi-ethnic states as sembly is again convened on Jan. 7 to creased U.S. defense spending-possibly Malaysia, Indonesia and the Philip­ take up the government's proposed 1980 exceeding $1 trillion by 1990-with a pines." budget. An emergency session was strategy for a two to three fr ont war called Dec. 27 after the Constitutional capability in Europe, Asia, and the In­ Council, France's highest level of juris­ dian Ocean. Zumwalt is being joined in diction, ruled that it was unconstitution­ his efforts by W. Scott Thompson of the al for the government to have the Na­ Fletcher School of Law and Diplomacy, Mrs. Gandhi on verge of tional Assembly consider the second sec­ William Van Cleave of the University of tion of its 1980 budget without having Southern California, and Richard Burt election victory voted in favor of the first. of the New York Times. With the first day of Indian voting com­ The crisis began after the Gaullist Arguing for the new strategy, Leon­ pleted on Jan. 3 and the final polling to party ended its parliamentary ceasefire ard Sullivan, Jr. of the Systems Planning take place on Jan. 6, EIR correspond­ with President Giscard's government Corporation, stated that "considera­ ents in New Delhi report that former over a month ago, forcing Prime Minis­ tions for actually fighting" the "war and Prime Minister Indira Gandhi is the ter Barre to rule be decree, declaring a a half' supported by current U.S. policy frontrunner to become India's next vote of confidence each time a bill had are "seriously incomplete" and "proba­ prime minister. No returns will be avail­ to be passed . The first section of the bly no longer appropriate or adequate." able until the voting is completed, but budget was therefore passed by a parlia­ they report a heavy voter turnout in mentary minority, with the Gaullist par­ most areas (a good sign for Mrs. Gan­ ty abstaining, and the Socialist and dhi) and predict that she will achieve a Communist parties voting against. working majority to form the new gov­ The crisis threatens to undermine ernment. President Giscard's ability to fu nction ASIA The impending victory of Mrs. Gan­ effectively on the urgent international dhi has already sent shock waves policy issues before him, at a time when Brown prepares throughout the West, particularly in his effective action is indispensable for light of the Soviet moves in Afghani­ world peace. Chinese arms axis stan. India's response to the events in In preparation for U.S. Defense Secre­ Afghanistan was extremely cautious on tary Harold Brown's trip to China, the official level with no hint of any scheduled for the second week of Janu­ condemnation of the Soviets. Elkridge meet ary, the Rand Corporation released a On the campaign trail, Jagjivan report on Dec. 27 commissioned by the Ram, leading the Janata party, which is plots war strategy department entitled "Asian Security in mainly composed of the Jan Sangh par­ the 1980s ." The report gives credence to ty, called for Soviet withdrawal from A group of 30 military "experts" led by widespread discussion that Brown's Afghanistan. The Organizer. organ of leading NATO critic Paul Nitze, former China visit will result in agreements for the Jan Sangh, went one step further U.S. Secretary of the Navy, met in Elk­ U.S. sale of military and military-related and called for abrogation of the Indo­ ridge, Maryland December 19-2 1 to plot technology to the Chinese. Soviet Friendship Treaty. a "long range" military strategy that The report concludes that the threat Mrs. Gandhi, however, had a more would prepare the United States for a to Asian security will come only from relaxed view of the situation, telling "two-to-three-front" war to replace cur­ the Soviet Union, requiring a security voters that she was opposed to interfer­ rent war deterrence strategy. The meet­ alliance of the United States, Japan, ence in the internal affairs of nations. ing, sponsored by the San Francisco­ Europe, and China. The report states However, she noted that "this has not based Institute for Contemporary Stud­ that "should the Soviet Union continue been one-sided (in Afghanistan). Others ies, announced preparation for a book its efforts to encircle China with political have been doing so there as well." Asked on "national security in the '80s," which allies and military bases, countries such by relentless Indian reporters just who the institute is scheduled to publish next as Japan, the U.S., and the states of she meant, Mrs. Gandhi lightly replied:

52 International EIR January 8-14, 1980 Briefly

• LORD CARRINGTON, Brit­ "All kinds of people. Who do you want ed that the United States plans to con­ ish Foreign Secretary, plans to me to name?" More concretely the for­ vene a meeting of the UN Security visit Saudi Arabia, Oman, several mer prime minister stated that she saw Council to condemn the Soviet move Arab Gulf states, and Pakistan "nothing inappropriate in a country into Afghanistan. Said one Western dip­ later this month, it was announced seeking military assistance from a lomat, "This is a chance to bring the in London. According to observ­ fr iendly power to meet the threat posed ayatollah back to the West." Recently, ers, Carrington will sound out the by external interference in its internal there have been hints that Washington Saudis and others on the forma­ affairs." is seeking to establish normalized rela­ tion of a military alliance tied to As a· final note, Mrs. Gandhi was tions with Teheran to rally that country NATO in the Persian Gulf. asked wh at would happen now with the against the U.S.S.R. in the area, as part "special relationship" bridges built by of a coalition of Muslim nations. • MARSHAL TITO of Yugo­ the Janata and Charan Singh govern­ slavia, is reported ill and hospital­ ments to the United States. She replied: ized. While the seriousness of his "Actually, these bridges were not of condition is not known, it is cer­ cement but of straw." tain that his condition is being Turkish military hits watched very closely in both Mos­ cow and Washington. Muslim fu ndamentalists • ROBERT MUGABE, leader of In an urgent letter addressed to Turkish the Zimbabwe Rhodesian Patriot­ MIDDLE President and National Security Council ic Front, has announced that he chief Fahri Koroturk Jan. 2, Turkey's plans to contest the British-run EAST armed forces commanders called upon elections in late February sepa­ the country's two main political parties rately, and not in alliance with to unite against "anarchists and separa­ Wa ldheim supporting J oshu Nkomo's wing of the tists" who are "rehearsing for a general Front. The move assures that M u­ Khomeini in Teheran uprising." The letter, signed by Chief of gabe and Bishop Abel Muzorewa the General Staff Kenan Evren, warned will be com peting for the vote of United Nations Secretary General Kurt against "Communists, fa scists, and Is­ the Shona, the largest tribal lamic fundamentalists, ... those who call Waldheim announced before leaving g rouping. Mugabe's decision for Islamic law" and appealed for unity Teheran today that he was "deeply preempts any possibility of a Pa­ to build the Turkish nation. moved" by the Iranian feeling against triotic Front victory. the fo rmer Shah and the United States, The letter fo llows months of near­ and he said that he would support the anarchy in Turkey, with almost 2000 • ITALIAN COMMUNISTS convening of a special UN task fo rce to people killed in 1979 in terror attacks by made an initial criticism of the investigate the rule of the Shah. extremist Islamic groups, Maoists, fas­ Soviet move into Afghanistan but Iranian sources report that Wal­ cists of the National Action Party of took a new stance several days dheim's visit is considered to be a total Alparslan Turkes, and supporters of later. Writing on the fr ont page of capitulation to the regime of the Ayatol­ various breakaway ethnic groups. The the party daily L' Unita, fo reign lah Khomeini. social chaos has been greatly worsened policy desk head Ledda wrote that New York Times, According to the by the austerity measures imposed on the move is a "logical" conse­ in Teheran the Austrian UN secretary Turkey by the International Monetary quence of an American "encircle­ general told Foreign Minister Sadegh Fund, and by the fact that the new ment policy" against the Soviet Ghotbzadeh that, after the invasion of government of Prime Minister Suleiman Union. The Soviets, he says, had Afghanistan by the U.S.S.R., Iran's Demirel has brought into the military been fo rced to this "dangerous greater enemy is Moscow and not several officers from the Turkes party preventive answer" by those who Washington. Waldheim's position is and from the Islamic-fundamentalist "dream or attempt to use the card considered highly unusual in light of his National Salvation Party of Necmettin of encirclement from west, east position as a neutral leader of the world Erbakan, a leading figure in the inter­ and south against the USSR," body. national Muslim Brotherhood. naming Brzezinski as one such After a meeting with Waldhe im, According to one informed Turkish dreamer. The journal most inter­ Ghotbzadeh announced that the issue of source, "The military has had enough of estingly in the same issue gave the American hostages held at the U.S. chaos. It will close down all the little praise to the prodetente stands of embassy "was not discussed at all," and provocative parties, starting with the French President Giscard and he said that he was satisfied with his Turkes and Erbakan parties, if they have West German Chancellor talks with Waldheim. to. Turkey has been plagued by 200 or Schmidt. Meanwhile, from the UN it is report- more weird subversive organizations."

EIR January 8- 14, 1980 International 53 The Aspen Institute's 'fix' of the 1980 U.S. election

by Kathy Burdman

Suppose the Ayatollah Khomeini were in process of concert with a similar slander planned by ABC's 20-20. rigging the 1980 presidentiai elections in the United More serious on a national level, Hewitt and CBS' States. Sounds ridiculous, impossible? In fact, the people Walter Cronkite, whose Evening News Hewitt has pro­ who put Khomeini into power are in process of doing duced since 1960, are trying to black out the vital New just that. Hampshire primary because of LaRouche's prominence The Aspen Institute, fo unded in the 1920s by British there. Cronkite has announced CBS's major Campaign Intelligence operative Robert Hutchins, trained most of '80 coverage through the end of January, i.e., until the the Khomeini government through its "Islam; Past, eve ofthe February New Hampshire primary, will be on Present and Future" seminars. And Aspen, as part of its the Iowa caucuses only. (See article, below.) Governance Project fo r the 1980s, has set up the Aspen Institute-Twentieth Century Fund Task Force on the "Acceptable Governance" Presidential Debates of 1980. The Task Force intends to As made clear by the excerpts from "Governance" by exerttop- down control over all campaign news coverage. Aspen's President Joseph Slater printed below, Aspen Chaired by Aspen Washington chief Douglass Cater, believes "the role of communications" including the former editor of the London Observer, the Task Force Task Force, will "determine the nature and success of includes the heads of the national media such as Frank institutions created to deal with the other problems listed Stanton, fo rmer president of CBS, William Small, Presi­ on this agenda." dent of NBC News, and Richard Wald, Senior Vice­ On the agenda, basically, is the "one-world" United President of ABC News. Their intent, as stated in the Nations government that would do away with sovereign Task Force's April 1979 report, "With the Nation nation-states and technological development. What is Watching," is to see to it that the "public see and hear now the Aspen circle in fact helped fo und the U.N., as a [only] the most significantcandi dates" in the presidential project of the Jesuits and the Cecil-family's factional race.Who these candidates are, they will deciqe. associates in the British elite. .The extent of "the fix"being attempted is scandalous. Slater notes that the basic conflict of the current Citizens fo r Lyndon LaRouche, the Democratic presi­ world crisis-as in Khomeini's Iran-is between "Those dential candidate, reported this week that CBS News seeking to turn back the clock and those betting on more Executive-Producer Donald Hewitt, a close collaborator and better technologies." of Frank Stanton and of Aspen who has run CBS cover­ Aspen, also the founder of the environmentalist age of every presidential campaign since 1960, is plan­ movement, comes down squarely on Khomeini's side, ning a "60 Minutes" hatchet-job on the candidate, in denouncing the evils of "charging ahead with scientific

54 National EIR January 8-14, 1980 discovery," and says that to "manage the unmanageable ... an emerging global system, ... international organi­ zation and transnational imperatives are increasingly important." The task force members Princeton professor Richard Falk recently pointed out that only such international bodies as the UN World Douglass Cater, Chairman; Aspen Senior Fellow; Court and Security Council could handle crises of the Directorof Aspen Washington, D.C.; Officeof magnitude of Iran-which they today are indeed doing. Strategic Services 1942-45; public relations Falk, the mentor of Iranian ex-Foreign Minister Bani­ consultant to Secretary of the Army 195 1-52; Special Sadr is also a member of the Aspen-founded Planetary Assistant to President Johnson 1964-68; Senior Citizens for a U.N. world government, and participant Domestic Advisor, Hubert Humphrey presidential in Aspen's seminar "Islam: Past, Present, and Future." campaign 1968; Editor, London Observer 1972-79. William Small, President, NBC News Sept. 1979 to The Presidential task force: present; Vice President, CBS Inc. 1972-79; Graduate Corruption of Hutchin's University of Chicago School of As scandalous as the dirty tricks the Task Force is Journalism; News Director WLS radio, Chicago playing against the LaRouche campaign is the fact that 1951-56; CBS Washington Bureau Chief 1962-72. several members and top consultants are partisan mem­ bers of rival presidential campaigns, who have no busi­ Lee M. Mitchell, Author, Task Force report; ness being in such an influential, preferential position Attorney, Sidley and Austin, Chicago; chief protege with the national media in violation of the Federal of Sidley's Newton Minow (see below). Communications Commission (FCC) Section 315 Herbert Schmertz, Director of Public Relations, "Equal Time" fairness mandate. Task Force member Edward Kennedy presidential Campaign, 1980; Herbert Schmertz, former Mobil Oil Public Affairs chief, Senior Vice President and Director of Public is Director of Public Relations for the Edward Kennedy Relations, Mobil Oil 1969-79; Deputy Director New 1980 campaign; Task Force member Norman Lear, the York Citizens for (John) Kennedy, 1960;General Los Angeles TV producer, was the head of Democrats Counsel, Fed. Mediation Service 1961-63; Director of for Change, the national "draft Kennedy" organization. Public Relations Robert Kennedy Presidential Task Force Chairman Douglass Cater himself, together Campaign, 1968; Professor of Law, Georgetown with Task Forcereport-writer Lee Mitchell and advisor University 1961-65. Newton Minow, are public organizers fo r the Kennedy campaign in the city of Chicago, from their prestigous Norman Lear, Los Angeles TV producer; Chairman, law firm Siddley & Austin, specialists in election law. Democrats for Change 1979; Minow was Chairman ofthe FCC from 1961-63. Douglas L. Bailey, President, Bailey, Deardourff & On the other hand, Task Force member Douglas Associates; Director of Media, Howard Baker for Bailey, President of the Bailey, Deardourff & Assoc. President 1980; Director of Media, Gerald Ford fo r public relatons firm, is the current Director of Media for President 1976. Howard Baker's 1980 Republican Campaign and direct­ ed the entire Republican post-convention campaign in Consultants to 1976, as he will in 1980. the task force Frank Stanton, President, CBS Inc. 1963-79; Trustee, Only significant candidates Rand Corp, Rockefeller Foundation; member Coun­ The Task Force report "With the Nation Watching," cil on Foreign Relations; Carnegie Institute. written by Lee Mitchell, states the Task Force was formed to deal with "two major problems that call for Lester Crystal, Senior Executive Producer, NBC constructive action ....First ...television has become the News Political Coverage. primary campaign medium. Yet. ..tho great promise of television as a means of informing-and involving­ Richard Wald. Senior Vice President, ABC News; potential voters has not yet been fulfilled." That is, Vice President, NBC News 1968-75; Assistant Washington Post, national television, controlled as it is from the top by Editor, 1967. "Aspen-symps," must be the finalopinion-mak er which Newton N. Minow, Sidley & Austin, Chicago. Chair­ determines how the public will vote for president. "Sec­ man. Federal Communications Commission 1961-63; ond, federal law and regulations ...ha ve restricted robust General Counsel Hutchins' Encyclopedia Britannica, debate. The requirement of Section 315 of the Commu- 1963-65; Chairman, Rand Corp, 1965-75.

EIR January 8-14, 1980 National 55 nications Act that allcandi dates for the presidency have vised presidential primary debates that would counter 'equal time' ... has served to reduce the opportunity of the Iowa-centric Des Moines Register affair. Now that the public to see and hear the most significant candi­ the Democratic side of that debate plan has been can­ dates." (Emphasis in original.) That is, candidates des­ celled-President Carter withdrew-what the League ignated "insignificant" by Aspen should not be nation­ will be told to do by Cater is unclear. ally televised, and therefore not be national candidates. Also involved with the Task Force is the FCC itself, Federal law be damned. the mandated "fairness" arbiter in the case. Henry Gell­ Citizens for LaRouche reported this week that Des er, then tbe Gener8:1Couns el of the FCC, was on the 1973 Moines Register executive editor James Gannon, when a advisory board to the Task Force when it produced Democratic debate in Iowa was still scheduled, told Minow's "Presidential TV." Less directly but significant them, "I am not going to put Mr. LaRouche on the is the FCC interface with another Aspen "sister" task debate, I do not recognize him as a significant candi­ fo rce, the Aspen Task Force on Communications Policy, date," even though the Iowa debate was to have been the which is also headed by Douglass Cater, and which only nationally-televised debate of the campaign and elaborates Aspen's more general communications pro­ LaRouche has just become only the third candidate to grams. Members of the Communications Task Force receive Federal Matching Funds. Gannon cited the so­ include Stanley Besen, the Co-Director for Network called "Aspen ruling" of the FCC, in which the Aspen Study of the FCC; Henry Geller, the FCC General Institute "in the public interest" in 1976 won from the Counsel mentioned above who is now U.S. Assistant FCC the right of the national networks to broadcast Secretary of Commerce fo r Communications; and For­ presidential debates without being subject to federal rest Chisman, Leland Johnson, and William Lucas, all "equal time" provisions if the debate is being sponsored currently officials of the U.S. Department of Commerce by some other organization-like Gannon's Des Moines National Telecommunications Information Administra­ Register. tion.

Extent of the corruption The Task Force's tainting ofthe presidential election process may extend well beyond the networks and dis­ parate candidates' campaign committees. Both the Re­ publican and Democratic National Committees were New Hampshire's involved in the Task Force's 1973 report "Presidential Television," a book authored by Newton Minow, the primaryblacke d out Task Force's first report on the subject. Adv:isors to Minow on the project included Joseph Califano, then The New Hampshire primary, traditionally the earliest General Counsel to the Democratic National Commit­ significant presidential primary, scheduled fo r Feb. 26, tee, until recently Carter's Secretary of Health, Educa­ 1980, has always been a leading national political event. tion, and Welfare, and now rumored to be joining the As a result, the voters of the state have traditionally Kennedy Campaign. Also an advisor was Lyn Nofziger, viewed it as their duty to go out, educate themselves in then Deputy Chairman of the Republican National detail as to the programs and moral quality of the Committee and until recently, with the Reagan presiden­ candidates, and vote. This primary, however, the Aspen tial campaign. The two national committees are still Institute-Twentieth Century Task Force on the Presiden­ reported to be in touch with the Task Force. tial Debates is planning to deemphasize and virtually Also influenced by the Task Force apparently is the black out. They have the collaboration of the national prestigious League of Women Voters, whose Chairman networks CBS, ABC, and NBC. and Vice-Chairman Ruth Hinerfeld and Elizabeth Drib­ It is the judgment of this publication that the only ben were consultants to the Task Force's "With the possible reason the Aspen Institute and collaborators Nation Watching." Indeed, the League had been receiv­ could have for this unprecedented action is that their ing funding fo r its presidential debates program fr om the rabidly environmentalist directors abhor the campaign Twentieth Century Fund and the Markle Foundation, of Democratic presidential candidate Lyndon. La­ the two main financial backers of the Aspen-Twentieth Rouche, the nation's leading pronuclear, protechnology Century Fund Task Force, since they fu nded the candidate, who has made the state the centerpiece of his League's 1976 Carter-Ford Debates. Task Force Chair­ national campaign. man Aspen's Douglass Cater told EIR this week that he The news that the New Hampshire primary is not is directly in touch with the League through Ms. Hiner­ important began to break in the New York Times in late fe ld, who he noted is not planning any nationally-tele- September. Just after the LaRouche campaign gathered

56 National EIR January 8- 14, 1980 steam, an op-ed by Aspen seminar-frequenter Tom Wicker stated that the New Hampshire primary is "insig­ nificant and overated." On Dec. 2, the Times' Tom Reston added that "Both President Carter and Senator Kennedy have tagged Iowa as their first real test ... The Aspen's Slater Carter camp has already sought to discount the signifi­ on 'governance' cance. of New Hampshire." Interviews by EIR (see issue Dec. 11) substantiated Following are excerptsJrom the February 1979 Aspen this line's general circulation. "New Hampshire is just Occasional Paper "Governance." by Joseph E. Slater. important traditionally, but not this time," said a Carter President. Aspen Institute. spokesman. "Every delegate in every state is now of equal importance ... New Hampshire is no more impor­ The issue of 'Governance' has become the over­ tant than any other state," said a Kennedy campaign arching theme of the Aspen Institute ... spokesman. . .. Failures of policymaking result not merely from the shortcomings of the policies or the policy­ The Aspen angle makers, but from the very process by which policy is Aspen collaborator Walter Cronkite, under the direc­ made.. . tion of former CBS president Frank Stanton, leader of Conflicting responses to the world crisis of gov­ the Aspen Task Force, announced to the press on Dec. 9 ernance are leading to sharp confrontations between that his "Campaign '80" show will focus national news ... those seeking to turn back the clock, and those on the Iowa caucuses through the months of December betting on more and better technologies .., The and January almost until the eve of the New Hampshire debate misses the essential point: the central condi­ primary. While quite important, the Iowa caucuses have tion for the shaping of alternative fu tures is neither never had the national significance of the New Hamp­ material resources nor technical skills but redefined shire primaries, a vote by the entire registered-voter values ... Questions involving demands for a "new population. By contrast, the Iowa affair involves more economic order," the creation of a new monetary closely-circumscribed attendance at party caucuses. system, ... and other world issues can only be consid­ Cronkite gave as his rationale Ted Kennedy's earlier ered intelligently in the context of ... the interdepen­ announcement that (since he had lost roundly in the fall dent character and the inexorable links in the desti­ Florida straw poll) Iowa would be the "first real test" nies of nation-states and an emerging global system. with President Carter. Cronkite has begun five and ten minute, nightly Evening News Campaign '80 spots fo ­ cusing entirely on Iowa. An agenda for This was to have led up to full CBS-ABC-NBC acceptable governance national coverage of the Des Moines Register presiden­ We now face ... the need fo r clear statements of tial debates. Until President Carter dropped out, forcing principles fo r the reorganization of governmental the Democratic debate's cancellation, the Iowa debates structure at national and international levels. were scheduled for Saturday, Jan. 5 fo r the Republicans and Monday Jan. 7 for the Democrats. Lyndon La­ Th e redesign oj planning and decision-making instru­ Rouche, though admitted by debate sponsors to be a mentalities. Clearly national governments will need "bona fide"candidate, was pointedly excluded. Between to be restructured. '" If international organization the remaining Republican debate and the Iowa caucus and transnational imperatives are increasingly im­ vote itself on Jan. 21, Cronkite and the other networks portant, what attitudinal and institutional changes have planned to carry expanded Iowa coverage, hour will be necessary? specials, and so on. There are no nationally-televised Democratic debates The strategy oj science. Many contemporary prob­ scheduled during the presidential primary campaign. lems are the result of charging ahead with scientific New Hampshire has been, and will continue to be, discovery and technological innovation without ti­ blacked out of national TV coverage. The state has gone mely thinking about institutional requirements and . completely unreported upon since Carter and Kennedy human consequences. How can we surround these first visited there in early November, and neither candi­ technological processes with ... admnistrative con­ date plans to set foot in the state until February at the trol-before beneficent potentials turn into malevo­ earliest. lent realities? Not even the New Hampshire League of Women

EIR January 8- 14, 1980 National 57 Voters plans a nationally-televised presidential primary debate of any sort. Its national chairman, Ruth Hiner­ feld, is in close contact with Aspen Task Force Chairman Douglass Cater.

"Iowa: New Hampshire of 1980" Although the Iowa debate is defunct, it is an exem­ plary instance of the broader Aspen attempt to rig the elections. Des Moines Register editor James Gannon What is the worked for the Aspen Task Force in 1976 on their sponsoring of the 1976 League of Women Voters Carter­ Aspen Institute for Ford debates. He was then a Wall Street Journalrepo rter on the question panel. He was ecstatic about the shift. um "More than 900jo urnalists have written for press creden­ H anisticStudies? tials ... we're deluged" with press coverage, he told But fo r the Official Secrets Act which makes it a Editor and Publisher December 15. "Most people have criminal act to reveal information relating to British been delighted (here) because the state becomes a kind of intelligence operations, the directors of the Aspen New Hampshire of 1980," he said before the cancella­ Institute for Humanistic Studies and its leading asso­ tion . "To my knowledge its the first time a newspaper ciates would all long ago have been incarcerated or has sponsored a presidential debate during a pre-conven­ deported from American shores as agents of a foreign tion period." power. From its inception in 1948, Aspen, based in Gannon widened his new national spotlight in No­ Colorado, has been a high level arm of the British vember when he refused (deliberately) to let California intelligence services fo r "epistemological warfare" di­ Governor Jerry Brown participate on the grounds that rected especially against the United States and West Brown "is not running an Iowa campaign." Gannon, as Germany. has been mentioned elsewhere in this series of articles, In the more recent period, the Aspen Institute's then cited the Aspen ruling of the FCC, saying "FCC operations have expanded to give it a key role in equal time laws don't apply here. This is a legitimate formulation and implementation of all essential poli­ news event we're carrying. TV is not running it, I am." cies of the British oligarchy and their European allies. After Brown went out and hurriedly bought an Iowa Among the major operations to be credited to campaign set-up, Gannon, his Aspen ruling point made, Aspen are: allowed Brown into the debates.

But, as reported above, he refused LaRouche cover­ • Watergate The overthrow of the U.S. presidency, age. beginning with President Nixon and his administra­ During the same period, Citizens for LaRouche, the tion, was planned at a secret, spring 1970 meeting in campaign committee, reported that CBS News Executive Aspen, Colorado under the institute's program-direc­ Producer Donald Hewitt, a close collaborator of Frank tor, Douglass Cater. Stanton who has run not only Walter Cronkite's Evening

News but all of CBS' presidential campaign coverage • Islamic Revolution The key members of the current since 1960, is personally directing a team of"60 Minutes" Khomeini government of Iran, as well as other inter­ reporters under Mike Wallace and Morley Safer to "get national leaders of the Muslim Brotherhood-the the real story" on "how LaRouche is financing his British intelligence fr ont operating behind Kho­ presidential campaign." "60 Minutes" has already con­ meini-were trained fo r their current activities at tacted the Federal Election Commission to see if they can "seminars" conducted at the Aspen Institute under hunt up any irregularities in LaRouche's financing, and the rubric: "Islam, Past, Present and Future." is planning to send a team to surveil his New Hampshire campaign. • Environmentalism Under Ro bert O. Anderson's per­ Similarly, ABC's "20-20" sent a team of TV report­ sonal direction, the Aspen crowd created and funded ers into the LaRouche headquarters earlier this month the "Friends of the Earth," a key international "envi­ to try to prove the LaRouche campaign is committing ronmentalist" organization, and in 1972, created the other illegalities. United Nations Conference on the Environment,

58 National EIR January 8-14, 1980 John J. McCloy receives the Aspen Institute's Statesman­ Humanist A ward fr om Robert O. Anderson, chairman of the Institute, left , and Joseph E. Slater, president, right.

whose $35 million budget makes it the most precious cludes its foreword": "So, the search is still onfor the asset of the worldwide campaign ofthe Club of Rome successor to 'growth' ...." and otherJesuit-operated agencies to promote "zero Among the Aspen Institute's leading associates, growth" and genocide in the name of ecology. fellows and directors are:

i Execut ve brainwashing Robert O. Anderson of Atlantic Richfield, owner of Aspen's key weapon is its conduct of "executive the London Observer, and Aspen's chairman. seminars," annually attended on a two-week basis by J.E. Slater, President of Aspen and Chairman of its over 1,000 corporate, banking, scientific, political, Program Council intelligence and government leaders from around the Henry Kissinger, former Secretary of State, and an world. One source familiar with pertinent procedures Aspen Senior Fellow and Special Advisor described the "seminars" as "nothing short of brain­ Charles W. Yost, Coordinator of the institute's "East­ washing"-endless meetings, on topics and questions West, Iran and China Activities" and a Special carefully posed fo r "controlled environment" purpos­ Advisor. es, are coupled with "sensory deprivation," pressure and prodding by an Aspen "steering committee" that The board of directors includes: guides the proceedings on the basis of a thorough psychological profile of the participating individual Thornton F. Bradshaw, Atlantic Richfield's president or group. under Anderson The one idea threading its way through all semi­ Lord Bullock, Master of St. Catherine's College, Eng­ nars, discussion papers, and criticism, whatever their land ostensible focus, is that science and technology have S. Douglass Cater, Jr. president of the The Observer created the problems at issue: Progress is evil. International (London) Exemplary is an Aspen "Occasional Paper" enti­ Marion Countess Doenhoff, publisher of Die Zeit tled "The Quality of Life in the year 2000," authored (West Germany) by Russell Peterson, Alexander Heard and Harlan Robert S. McNamara, president of the World Bank Cleveland. The paper begins by posing the question: Maurice Strong, president of Petro-Canada "What can be done about the worldwide collision Leonard Woodcock, U.S. Ambassador to China between 'growth' and human values? ..." and con- Barbara Ward, Lady Jackson, Baroness of Lodsworth

EIR January 8- 14, 1980 National 59 Congressional Calendar by Barbara Dreyfuss and Susan Kokinda

group of conservatives led by Sen­ out that Linowitz's law firm en­ E qual time for ator Jesse Helms (R-NC). Helms gages in extensive international candidates questioned and 12 other Republican conserva­ practice including in the Middle Congressman VanDeerlin (0- tives charged that Linowitz stood East and that the potential for con­ Cal) introduced legislation Dec. 12 in danger of gross conflict of inter­ flict of interests is enormous. So that would amend the Communi­ est because he intends to actively too, Helms said, is his membership cations Act of 1934, repealing the maintain his private law practice in on the board of directors of the requirement that public broad­ the internationl firm of Coudert Washington Star and Time-Life. "If casters provide equal time fo r all Brothers as well as his membership two of our major journals are crip­ p residential candidates. Van­ on the board of directors of the pled in reporting or commenting Deerlin's legislation would apply to Washington Star and Time maga­ on a major news story of the year debates, interviews, documentaries. zine. then American journalism will be on presidential or vice-presidential dealt a severe blow ... I think it candidates that are not paid for by should be self-evident that a major the candidates. "We are interested public figure cannot have a role, in opening things up for newsmen," even a business role, in any of the declared an aide to the Congress­ major media." Despite Helms' pro­ man. However elimination of the test, the vote was 80 to 13. equal time provision would serious­ ly affect access to the media by lesser known candidates seeking these offices. According to staff members of Federal "bailout" the communications subcommittee to gut Chrysler of the House Commerce Commit­ With the terms of the debate set tee, which is handling the bill, sev­ by Kennedy-man Paul Tsongas (0- eral other congressmen have asked Mass), the U.S. Congress Dec. 20 to co-sponsor the bill. A repeal of passed a fe deral "bailout" of the the equal time ruling was passed by Chrysler Corporation. In order for the House in 1970 but President Chrysler to receive $1.5 billion in Nixon vetoed it. federal loans, the Congress man­ Congressman VanDeerlin plans Sol Linowitz dated the establishment of a gov­ to hold one day of hearings on the ernment board whose membership measure at the end of January or is to include Treasury Secretary the beginning of February and will This unusual situation arises be­ Miller, Federal Reserve Board then move rapidly to have the leg­ cause President Carter in appoint­ Chairman Volcker, and Comptrol­ islation voted out of committee and ing Linowitz to be ambassador des­ ler of the Currency John Reine­ onto the floor."We want action on ignated him as a "Special Govern­ man-the very people whose tight this quickly so that it will affect this ment Employee," a position usually money policies helped precipitate campaign," a Capitol Hill source reserved fo r consultants which the Chrysler crisis. The board will mandates that the employee serve monitor Chrysler's compliance only a hundred and thirty days out with other of the loan guarantees of the year, and which allows reten­ includil1g Chrysler matching the tion of private sector employment. federal loans with another $1.5 bil­ Conflict of interest charged Helms noted that while the pre­ lion, which is to be raised in the in Linowit z appointment vious Middle East ambassador fo llowing way: The Senate confirmed the nom­ Robert Strauss has also been a spe­ -Chrysler's United Auto ination of Sol Linowitz to be special cial government employee, he had Workers employees must contrib­ representative to the Middle East, resigned from his private practice ute $462 millionin wage and benefit on Dec. 20, despite the protests of a during his tenure. Helms pointed cuts over the next three years.

60 National EIR January 8-14, 1980 -Chrysler's white collar em­ gar (R-Ind) had drafted the essen­ measures fo r homes and businesses ployees must contribute $125 mil­ tial outlines of the legislation in the would not be applicable to 1979. lion in salary cuts. Senate Banking Committee. The committee's final task be­ -Chrysler Corporation will is­ Once these parameters were set fore adjournment was to maintain sue $162.5 million in new diluted the only significant debate on the the repeal of the carry-over provi­ stock. The company workers, floor was whether Chyrsler workers sion of the 1978 Tax Reform Act. largely UAW, must buy this stock would give up $400 million, $500 This provision lengthens dramati­ from their wages on top of the million or $600 mi1lion in wages. In cally the base period on which cap­ above wage cuts. addition to the irony of liberal ital gains taxes are paid and in effect -As overseen by the govern­ Democrat Tsongas' attack on increases the amount' of taxes an ment board, Chrysler must contin­ U A W workers, there was the over­ individual pays. ue to sell off its most technological­ eagerness of conservatives to join The conference committee will ly advanced plants around the in the attack on "big business" in reconvene on Jan. 17 to finish the world in order to raise cash. It is the name of free enterprise. Politi­ details of the windfall profits tax being pressured to sell its biggest cal observers wonder whether bill. and best plant in Mexico. Tsongas' anti-union activities will -Chrysler will strip down its affect his political mentor, Ted car production to "small is beauti­ Kennedy's presidential bid. fu l" compacts. onstitutional -Chrysler must also continue C to implement expensive environ­ balancing act? mental controls on its cars. By a vote of 5 to 2 a Senate Judiciary subcommittee on the If at any point the company and Constitution Dec. 19 voted up a onference committee its auto workers don't meet the C constitutional amendment that agrees on part terms of the legislation, Treasury would require a federally balanced Secretary Miller can discontinue of windfall tax budget. This is the first time that the loan guarantee. Shortly before the Congress re- , such a proposal has been endorsed The much publicized vote on cessed for its Christmas-New Years by any Congressional subcommit­ the legislation came in the House holiday Dec. 20 a conference com­ tee. The amendment was drafted by on Dec. 18 when the final House mittee was appointed to work out Senator Orrin Hatch (R-Utah) and version of the bill passed by a vote diffe rences on the House-Senate fo rmally introduced Dec. 14 by of 27 1 to 136. The key vote in the versions of the controversial wind­ Senator DeConcini (R-Ariz). The Senate came on the so-called Lugar fall profits tax on oil producers. amendment would only allow defi­ a amendment which passed by a vote The committee reached agreement cit spending by three-fifths vote in of69 to 28. ln both votes opposition on how much revenue would be both houses of Congress, or by a to the bailout came primarily from raised by the tax prior to the recess. majority vote in times of war. Republican and southern Demo­ The House had passed a bill that The Subcommittee chairman, cratic conservatives. However the would raise an estimated $277 bil­ Birch Bayh (D-Ind.) opposes a con­ voting became a fait accompli be­ lion while the Senate legislation stitutional amendment but is push­ cause in the terms of the choice would raise approximately $178 ing fo r much quicker legislative ac­ offered, Senators and Congressmen billion. The compromise figure tion to force through the balanced could ultimately decide between agreed upon by the conference budget concept. The Constitutional this asset stripping and UA W loot­ committee was $227 bi1lion, al­ amendment must be approved by ing legislation or no bailout at all. though they did not determine the two-thirds of both Houses of Con­ This situation was ensured primar­ specific taxes that would raise this gress and 38 states before it be­ ily by the activities of Senator Ken­ amount. comes law. nedy's close associate, Sen. Paul The conference committee also The measure now goes to the Tsongas. Tsongas, with support agreed that the credits voted up by fu ll Judiciary Committee headed up from Republican Sen. Richard Lu- the Senate for energy conservation by Senator Kennedy (D-Mass).

EIR January 8-14, 1980 National 61 NationalNews

Warnke: no shift policy as one of "verbal protests to the Byrne and State Treasurer Jerome Cos­ offending countries and too mild suppli­ entino proposed that the state buy $100 in Soviet policy cation before the United Nations." He million in state aid anticipation notes, Paul Warnke, former director of the then declared that Soviet intervention in while Governor Thompson insisted that Arms Control and Disarmament Agen­ Afghanistan makes ratification of SALT the state purchase only $25 million and cy and chief SALT negotiator, said last "unthinkable." the city and banks $12.5 million each. week that he thought the current crisis According to Brock's office, his But the school system needs $200mi llion in Afghanistan is not as serious as some statement was prepared in consultation just to get through January. people in Washington are painting it. with Fred Ikle, the author of a recent Cosentino has filed suit against the "At this stage we are not that close to a op-ed in the Washington Post calling for governor for "infringement upon the confrontation," Warnke told a reporter. the United States to fa ce down the So­ Treasurer's investment powers." "Our vital interests are not threat­ viet Union. The dual school and city financial ened. A switch from a mildly pro-Soviet Following the announcement by Tri­ crises are generating calls for a New to a strongly Soviet-controlled regime lateral Commission member Brock, Sen­ York City type of "big MAC" emergen­ isn't really that much to take. The risk' is ator John Warner, a supporter of cy control board to monitor Chicago's that the Soviets may decide to menace a George Bush, called upon Carter to end budget and enforce austerity measures. pro-Western government in Pakistan or the SALT ratification process. Informed There is, understandably, considerable to dominate Iran or an effort to control sources among GOP advisers now re­ resistance to this proposal, especially in the oil lines, but this hasn't really hap­ port that the leading Republican candi­ view of the continued deterioration in pened." dates will soon begin an offensive New York City since the establishment 6, Warnke said that he did not feel that against Carter on fo reign policy de­ of such a board. On Jan. Rep. Larry a the massive Soviet military move into signed to force Carter into miscalcula­ Bullock will submit resolution to the Afghanistan in any way marked a shift tions and to build the prospect for a legislature ca lling for a state investiga­ in Soviet policy: "Afghanistan was a Bush-Haig candidacy . tion of the budget crisis, stipulating that target of opportunity. I am opposed to the state provide emergency fu nds in the what they have done just as I was op­ interim. posed to the U.S. intervention into the Dominican Republic in the early 1960s. Chicago faces I don't think that superpowers ought to school shutdown intervene like that. But nonetheless, I Chicago rs fa cing a walkout Jan:"4 of its don't think that it is so different in kind Aspen hails 25,000 teachers because the Board of to demonstrate a shift inpolicy of major Education has fa iled to meet its payroll. end to progress nature. " The Board is running somewhere be­ Writing in the Christian Science Monilor Warnke said he thought that the tween a $300-700 million deficit in its Dec. 27, Aspen Institute Director Har­ administration was "doing just right" in lan Cleveland hailed the results of the its handling of the crisis and criticized $1.4 billion budget. Since the bond rat­ ing services downgraded its debt from 1970s. In the 1970s, Cleveland writes, some NATO allies for fa iling to be BB to C in Novem ber, it has been unable "we" succeed6d in curbing "the mind­ "resolute behind the U.S.," but he to raise additional short-term cash in the less march of modern technology." thought that the alliance was "now be­ markets. "The old ethic" of "rapid material ginning to pull together in a time of The most important contributing growth powered by technological inno­ crisis." factor to the crisis is that the city of vation, supported by exuberant opti­ Chicago has not contributed its share to mism" has finally been abandoned, he the board's budget this year because of cheered. "A new kind of thinking about similar cash problems. When the rating 'growth' is now in evidence-'a historic Brock wants end services reduced the city's paper from change of emphasis'-....Every time the AA to A last summer, Chicago similarly pollsters take our national pulse, they to "national unity" was restricted in its borrowing capacity. discover a deeper alienation from the The "national unity" organized around That budget crunch was the major trig­ idea that more and more is better and the Iranian crisis officially crumbled ger for the transit strike last month, and better." Jan. 2 when GOP chairman William it is fe ared that sanitationmen might Cleveland went on to predict that the Brock called upon the Republican pres­ walk out in the near future. 1980s will culminate in the "dawn of idential contenders to take the gloves off An attempt to put together a tem­ planetary politics" that began in the their criticism of Carter's foreign policy . porary financing package with the state 1970s, the end of the sovereignty of the Brock characterized the administration has resulted in an impasse. Mayor Jane nation-state. "The recognition of global

62 National EIR January 8- 14, 1980 Briefly

risks and the presence of global technol­ The dollar's problems, LaRouche • REP. JOHN BINGHAM ogies creates a new kind of politics to pointed out, have been extreme under (D­ which the adjectives international, the Carter policy, but actually began when NY) and Clement Zablock (D­ traditional fear of 'losing' sovereignty, GOP can didate John Connally acted as Wis) will introduce a measure to an d win-lose scenarios simply don't ap­ Treasury Secretary to take the dollar off extend military aid to Pakistan ply." the gold standard in 1971. when Congress reconvenes on The candidate is preparing a state­ Jan. 22. The move fo llows Soviet ment for the Democratic National Com­ intervention in Afghanistan, Pak­ mittee and state and county Democratic istan's northern neighbor. Ob­ LaRouche challenges Party chairmen, ca lling for their recog­ servers point out, however, that nition that he is the party's best spokes­ India, now holding elections re­ GO P and Carter man to defend the Democrats agai nst portedly returning Indira Gandhi In statements over the past week, Lyn­ election-year GOP hypocrisy on strateg­ to power, may also be a target of don LaRouche, the Democratic presi­ ic issues. the measure. dential contender, has challenged both , President Carter and all Republican • JOSEPH HENDRIE Nuclear candidates for the presidency to face the Regulatory Commission chair­ real causes and adopt stipulated meas­ New Hansen trip provokes man, annonced this week that 38 ures to return American foreign policy nuclear power plants have not to a "condition of sanity." congressional ire complied with new safety require-. LaRouche stated that the Soviet Congressman George Hansen (R-Id.) ments proposed in the agency's coup in Afghanistan, and the related flew to Iran last week and immediately report on last year's Three Mile Iran crisis, have resulted from the Carter provoked a storm of outrage from Island "accident." He said that administration policy of "controlled dis­ congressional fr iends of U.S. Secretary the facilities in question will have integration" of Western industry-lead­ of State Cyrus Vance. Hansen, who last one month to comply or fa ce shut­ ing the Soviets to believe that "capital­ month called for an investigation of the down, which could cause "black­ ism is undergoing a final break-down role of the oil companies and New York outs" this winter in many parts of crisis"-coupled with a highly provoca­ banking interests in creating the current the country. tive "China Card" and "Islamic Card" Iran crisis, was on a pe rsonal fact-find­ IOWA DEMOCRATS policy of strategic encirclement of the ing mission, • have U.S.S.R. Rep . Peter Peyser (R-N.Y.) became grown so critical of Jimmy Cart­ Both features of the Carter posture incensed. Hansen, he told a reporter, er's campaign methods it could are dangerously incompetent, he said. was a "national security problem" be­ cost him the caucus vote there . LaRouche hastened to add, however, cause of his attacks on administration Carter, spending evenings solicit­ that while "controlled disintegration" policy and his "meddling in foreign ing support by phone, withdrew and the "China Card" are immediately policy matters." Peyser reported that he from a scheduled public debate associated with the administration's ca lled both Attorney General Benjamin there. "I'm disappointed," said a Pa ul Volcker and Zbigniew Brzezinski, Civiletti and the State Department in an state committeeman. "He can find respectively, all Republican candidates effort to have the trip aborted. "Hansen hours to spend campaigning by endorse-in some cases, in a more ex­ should have his passport lifted," said te lephone, but has no time to treme fo rm-those very Carter policies Peyser, who claimed to have a large come talk about the issues." precipitating the current strategic crisis number of "friends" over at the State fo r which they now presume to criticize Department. • EDWARD LUTfWAK, mem­ him. Several informed observers say that ber of the Center for Strategic and "I am challenging these Republican some of Peyser's fr iends at State called International Studies at George­ spokesmen to debate on this subject in him to get him moving on Hansen; town University, says that the New Hampshire, in Illinois, and all Peyser was pessimistic about the possi­ United States should arm Afghan other states where I am campaigning," bility of stopping Hansen's current trip. rebels with anti-tank weapons and LaRouche declared. Unless the GOP He will focus on "preventing future anti-aircraft missiles, since Af­ candidates publicly acknowledge the problems" and will consider major ghanistan'S terrain is different crux of the current strategic crisis to be amendments to the Logan Act, which from Vietnam's. Observers were the destruction of the dollar as the prin­ bars private citizens from interferimt quick to note that the CSIS is also cipal world reserve currency, their with the State Department's conduct of the home think tank of Henry A. charges that "Carter lost Iran" and the fo reign policy. No action was expected Kissinger. like are complete fr aud. until next month.

EIR January 8- 14, 1980 National 63 Trade Review

Abbreviations: Status:

U = Undetermined I = signed, work in progress IV = in negotiation

NAp = Not applicable II = signed, contracts issued V = preliminary talks

NAv = Not available III = deal signed Cost Principals Project/Nature of Deal Financing Status

Angola State Oil 4000 square mile offshore exploration 50£ Elf 50£ un­ Concession Co.-SONANGOL/ concession for petroleum. Initial pro­ named partners granted II Elf-Acquitaine duction-Sonangol 15£/Elf & part­ ners 85£. Ultimately (when costs re­ covered) Elf 5£ Sonangol 95£

$100mn Citicorp InCI (agent) River Basin Development $100 mn Banco de la Prov­ Signed II Sokoto-rima River credit over 8 years (repayment) incia de Buenos Basin Development Aires and others Authority (Nigeria)

France-Saudi Arabia Renewal of 3 year contract for annual supply by Petromin to joint consortium made up of Compagnie Francaise des Petroles and Elf Acquitaine of 12 mil­ lion tons of oil per year at $24 barrel

380 mn Brazil From BRD Bayer announced it was re-studying all NA doubtful DM investments planned for Brazil 1980-84 in light of Brazil's new deindustrializa­ tion policies

Mexico and Brazil Mexican Foreign Minister Jorge Cas­ primarily Mexi­ III taneda visited Brazil Nov. 14 seeking can joint ventures to transform Brazilian ores into steel and aluminum in Mexi­ co; stressed oil for technology concept; Mexico will supply Brazil with 20,000 bpd oil in 1980.

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