" THE ONLY WAY n_H � A TO STOP 1 MARSHAL OGARKOV'S WAR PLAN! The greatest strategic weapon in the Russians' arsenal against the West, is not any of their weapons systems as such, but their ability to exploit the flaws in Western so-called economic thinking, which go by the name of "free enterprise." �TIill How to reverse the economic policy QUARTERLY blunders that led to 'Irangate' CONTENTS ECONOMIC • An international financial blow-out: the real story behind 'Irangate' REPORT • The technology-driver of the new economic upsurge: the forty- year Mars-colonization project • The explosive impact of AIDS on the world economy EIR Quarterly Economic Report Make check or money order payable to: First $ J ,000 annual subscription Executive Intelligence Review $250 single issue. P.O. Box 17390 Quarter Washington, D.C. 2004 J -0390 1987 Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman From the Editor Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke, Nancy Spannaus, Webster Tarpley, Christopher White, Warren Hamerman, William Wertz, Gerald Rose, Mel Klenetsky, Antony Papert, Allen Salisbury Science and Technology: Carol White Special Services: Richard Freeman Advertising Director: Marsha Freeman Circulation Manager: Joseph Jennings INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot, Mary Lalevee Agriculture: Marcia Merry his week's cover Feature is the first of a� series of articles to Asia: Linda de Hoyos T Counterintelligence: Jeffrey Steinberg, appear in this publication which will give subscribers a small sam­ Paul Goldstein pling of the contents of our forthcoming Special Report, "Global Economics: David Goldman " European Economics: William Engdahl, Showdown II, the 1987 sequel to the July 1985 360-page report that Laurent Murawiec Europe: Vivian Freyre Zoakos revolutionized Westernperceptions of Soviet policy. Two years ago, Thero-America: Robyn Quijano, Dennis Small we documented the Soviet war plan for world domination by 1988. Law: Edward Spannaus Medicine: John Grauerholz, M.D. The new report centers on the integration of "regular" and "irregular" Middle East: Thierry Lalevee modes of warfare in the Soviet war drive. Soviet Union and Eastern Europe: Rachel Douglas, Konstantin George While the dossier in this issue on narco-terrorism in Thero-Amer­ Special Projects: Mark Burdman ica focuses on the "irregular" mode of warfare-the drug mafia's United States: Kathleen Klenetsky guerrilla army-future articles will also describe the mammoth INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura growth of the Soviet "regular" capabilities. While President Reagan Bogota: Javier Almario was being focused, to the point of obsession, on "stopping commu­ Bonn: George Gregory, Rainer Apel Chicago: Paul Greenberg nism" in Central America by backing the unsavory "narcontras," the Copenhagen: Poul Rasmussen Soviets were building that irregular army and making massive eco­ Houston: Harley Schlanger Lima: Sara Madueno nomic and diplomatic gains all over the continent. Los Angeles: Theodore Andromidas The report also runs down the checkerboard pattern of states in Mexico City: Josejina Menendez Milan: Marco Fanini the continent of Africa which already are-or are about to become­ New Delhi: Susan Maitra Soviet client states, under State Department-blessed "regional mat­ Paris: Christine Bierre Rio de Janeiro: Silvia Palacios ters" accords with Moscow. Compare this to our conference report Rome: Leonardo Servadio, Stefania Sacchi on UNCTAD VII (page where the United States is throwing away Stockholm: William Jones 7), United Nations: Douglas DeGroot the chance to consolidate potential allies in Africa by sabotaging all Washington, D.C.: Nicholas F. Benton discussion of the debt issue, and thus handing the stage over to Soviet Wiesbaden: Philip Golub, Goran Haglund propaganda maneuvers. ElRIExecutive Intelligence Review (ISSN 0273--6314) is published weelcly (50 issues) except for the second week EIR's analysis of the Soviet command changes, and maps and ofJuly and last week ofDecember by New Solidarity International Press Service P.O. Box 65178, Washington, tables on Soviet strategic forces, prepared for this Special Report, DC 20035 (202) 785-1347 are far more accurate and frightening than those appearing in official EurrJfMtIII HHtlqlUll1en: Executive Intelligence Review Nachrichtenagentur GmbH, Postfach 2308, U. S. government publications. This report is being rushed into print Dotzheimerstrasse 166.0-6200 Wiesbaden, Federal Republic of Germany in order to block the various "zero options" deals by which a weak­ Tel: (06121) 8840. Executive Directors: Anno HeUenbroich, Michael Liebig ened President Reagan is being induced to give not only Europe but I" De""""": EIR, Rosenvaengets AUe 20, 2100 Copenhagen OE, Tel. (01) 42·15-00 every corner of the globe over to Soviet hegemony. I" MukD: EIR, Francisco Dfas Covarrubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. }1IptIII.ub.criptio" .flhs: O.T.O. Research Corporation. Takeuchi Bldg .• 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo 160. Tel: (03) 208-7821. Copyright © 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in part without pennission strictly prohibited. Second-class postage paid at Washington D.C .• and at an additional mailing offices. 3 months-$I25, 6 months-$225, 1 year-$396, Single issue-$IO Academic library rate: $245 per year Postmaster: Send all address changes to EIR. P.O. Box 17390, Washington, D.C. 20041-0390. (202) 785-1347 Interviews Science &: Technology Economics 10 Osvaldo de Rivero 24 Mining helium-3 on the 4 The biggest Ponzi game in The Undersecretary for Economic Moon for unlimited energy history Affairs in the Peruvian Foreign There is enough fuel on the The news is not that American Ministry and head of the Peruvian Moon's surface to power the banks will show the worst net loss delegation at UNCTAD VII. fusion reactors that can advance in history during the second the Earth's economy and begin quarter, but rather, that the 11 Daniel Suazo industrializing space. Marsha banking industry will continue to Freeman reports . show such losses for the third The Minister Counselor, quarter, the fourth quarter, and so Ambassador at the Permanent forth, until such time that it ceases Mission of the Dominican to exist, as matters stand . Republic in Geneva. Departments 12 Bernard Chidzero 7 Debt on the agenda at UNCTAD VII, but West The minister of finance, economic 47 Report from Bonn cedes the floor to Soviets planning, and development of A long-overdue look at the Red Zimbabwe. Army . A first-hand report on the Geneva conference. 13 Abdul Munim 48 Northern Flank Docmnentation: Excerpts from the speeches of French President Commerce minister of Bangladesh. AIDS time bomb ignites in Mitterrand, Norwegian Prime Sweden. Minister Bruntland, and Egyptian President Mubarak, and interviews 49 Rio Report with four government delegates. Book Reviews Kremlin blesses Brazil's "theolibbers . " 15 Foreign Exchange 60 Confessions of a Soviet How long for the Japanese inflow? Trust agent 50 Dateline Mexico Scott Thompson looks at Hammer, A "green" presidential campaign. 16 Overcoming the Reagan by Armand Hammer with Neil "Recovery" Lyndon. 51 Andean Report U.S. manned space-flight A new front against Garcia. headquarters to be in Virginia. Third in a series. 63 Books Received 20 Agriculture 65 Labor in Focus "Meat and milk will make you 'Foreigners' threaten auto? sick." 72 Editorial 21 Domestic Credit Pentagon ignoring Soviet scientific Government bankrupt by end of lead? July? 22 Business Briefs Volume 14 Number 30, July 31, 1987 Feature International National 42 U.S Gulf deployment a S4 Walsh launches next phase blow to New Yalta deal of Iran-Contra probe The emergence of Weinberger's The Justice Department is under military policy raises the fire . Will the "Hashemi file" be possibility of a positive shift in opened next? U.S. foreign policy, but there is a deeper problem to be solved. 56 Anti-AIDS ballot initiative gets under way in Raid on a coca plantation where cocaine labs were 44 North Korea and State California found, in Paime, Colombia, on June 12, 1987. In the Department seek deal for center of the photo is the "liberation" newspaper of Proposition 64 was defeated in cocainekingpin and Soviet asset. Carlos Lehder. Korean peninsula 1986, but many things have changed. 4S Alfonsin, IMF push 30 Has the U.S. given in to Argentina to brink 57 President's AIDS panel: a Moscow in the war on lost opportunity drugs? 52 International Intelligence Soviet-directed narco-terrorism has 58 How U.S. laws were penetrated every nation of Ibero­ changed to be pro­ America. This flank of the Russian Empire's subversion of the West mosquito-and against demonstrates exactly how Soviet AIDS Update humans irregular warfare operates, and Crimes of environmentalism. why the United States has been 20 OSHA demands worker losing that war to Moscow for the protection against AIDS 66 Eye on Washington last 20 years . Vo1cker: Greenspan's deregulation 20 Colorado meatpacking is disastrous. 33 Narco-terrorists' target: firm will test workers the Canal 67 Elephants & Donkeys 48 AIDS time bomb ignites in Hart campaign manager scores 34 Symbiosis of drugs and Sweden Iowa "blackmaiL" terror in Peru 56 Anti-AIDS ballot initiative 68 Congressional Closeup 39 Drugs and terrorism in gets under way in Colombia: The two are California 70 National News combined into one 57 President's AIDS panel: a 41 AIFLD: friend of drug lost opportunity traffickers 68 GOP task force told: AIDS politically protected �ITillEconomics The biggest Ponzi game in history by David Goldman The news is not that American banks will show the worst net Bank of America and Manufacturers Hanover Trust , set aside loss in history during the second quarter, exceeding $10 reserves against a much smaller portion of their overseas billion. The news is that the banking industry will continue exposure, and only under pressure, following Citibank's ac­ to show such losses for the third quarter, the fourth quarter, tion.