EXECUTIVE INTELLIGENCE REVIEW June 12-18, 1979 New Solidarity International Press Service [THIS PAGE IS INTENTIONALLY BLANK] Editor-In-chief: Fernando Quijano Editor: Paul Arnest Associate Editor: Kathy Stevens Senior Editor: Vin Berg Production Manager: Patricia Van Zwaren Circulation Manager: Bohnie Silver Contributing Editors: Lyndon H. LaRouche, Jr., Criton Zoakos, Christopher White, Costas Kalimtgis, Nancy Spannaus NEW YORK BUREAU: Nora Hamerman, bureau chief Africa: Douglas DeGroot Asia: Daniel Sneider Counterintelligence: Jeffrey Steinberg Military Strategy: Paul Goldstein Economics: David Goldman Energy: William Engdahl Europe: Vivian Zoakos Labor: L. Wolfe and M. Moriarty Latin America: Dennis Small Law: Felice Gelman Middle East: Robert Dreyfuss Science and Technology: Morris Levitt Soviet Sector: Rachel Douglas United States: Konstantin George and Stephen Pepper United Nations: Leif Johnson INTERNATIONAL BUREAUS: Bogota: Carlos Cota Meza Bonn: George Gregory Brussels: Christine Juarez Europe attacks Chicago: Mitchell Hirsch Copenhagen: Vincent Robson Mexico City: Robyn Quijano the oil speculators Milan: Muriel Mirak Paris: Catherine Kantor Having created an oil "shortage" in the Vnited States, \ and Sophie Tanapura Energy Secretary James Schlesinger has turned around Rome: Claudio Celani and moved to create one in Europe-by granting V.S. Stockholm: Clifford Gaddy Washington D.C.: Laura Chasen oil companies a $5 "entitlement" subsidy to speCUlate and Ron Kokinda on the Rotterdam spot oil markets. The move has Wiesbaden: (European Economics): infuriated Euro eans, who thought they had Schlesin­ Mark Tritsch p ger's promise that the V.S. would absorb two-thirds of an overall lEA energy consumption cutback. In our Executive Intelligence Review is INTERNATIONAL REPORT this week, we look at published by New Solidarity Europe's angry response to the Schlesinger moves­ International Press Service highlighted by French Foreign Minister Fran�ois­ 304 W. 58th Street Poncet's abrupt trip to Washington, and renewed New York City, N.Y. 10019 threats by Europe to break the Seven Sisters' oil Copyright Cl 1979 New Solidarity distribution monopoly. Also in our package: what the International Press Service effects of the latest oil hoax will be-contrasted with Subscription by mail for the U.S.: what forecasting services· are saying-and indications that Anglo-American policymakers are gearing up a months-$125, months-$225, 3 6 shutdown of Middle East oil production. 1 year-$400 Page 16 ISSN 0 146-9614 © 1979 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. EXECUTIVE 'INTELLIGENCE REVIEW IN THIS ISSUE THIS WEEK Parson Malthus goes to Tokyo .. .. 5 Britain turns fascist The Queen's new Tory government ECONOMICS has a plan fo r Great Britain-and the world. If carried out, Britain will End to dollar reflow means become the first fa scist country in the interest rates have not peaked . .. .. .. .. ... 7 postwar advanced sector. This OPEC-Third World split touted in UNCTAD's wake ...... 8 week's SPECIAL REPORT dissect's Trade ............... 8 Commodities . .. 12 Margaret Thatcher's program and International Credit . 10 Agriculture ...' . .. 12 the Lords and Ladies whom the royal Foreign Exchange . .. 10 Banking ... ........ 14 household has provided to adminis­ . Gold . .. 11 Britain . .. 14 ter it. Also: a case study of the same . .... .. .. program through its application by Tory Home Secretary William Whit- law in Northern Ireland. Page 26 INTERNATIONAL The disenfranchisement Europe attacks the oil speculators .. .. .. .. .. .. 16 Tells Carter: the choice is energy development of Europe or war To everybody's shock, the Christian What the Europeans are saying Democrats and the Communists . .. .. .. .. .. .. 18 Speculation must be fought-Fran(jois-Poncet both lost ground in this week's Ital­ .. .. 20 ian elections, and the nation which Schlesinger: 'a neo-Malthusian model' . .. .... � 21 was moving toward stability now Cost of speculation: don't be fooled by forecasters . 22 moves back toward ungovernability. Oil hoax: how it could get worse. .. .. .. .. .. 22 This week's EUROPE report leads with what happened in the Italian vote, and why it couldn't have hap­ SPECIAL REPORt. pened except through fraud. Includ­ ed is a profile of the big gainers-the Britain turns fascist ......... ... .. ... ... , 26 Italian Socialist Party-whom every New Tory government has plans to gut British industry voter in Italy knew was running the Britain under Thatcher terrorists who murdered Aldo Moro, . .. .. .. .. .. .. .. .. 29 men like Political Science professor' Tony Negri. Also: a prominent mag­ azine's slander of the European La­ LA TIN AMERICA bor Party's leading candidate for Eu­ ropean Parliament suggests that the Carter in covert support for Somoza . .. .. .. 33 fr aud carried out in Italy will be ex­ U.S. gunboat diplomacy toward Nicaragua backs ported for use in those June 10 con­ IMF policy in Central America tinent-wide elections. Page 39 The power behind Anastasio Somoza .......... , 38 © 1979 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. r Vol.VI No.23 June 12-June 18, 1979 EUROPE Genocide in Nicaragua As half a dozen Central American Fraud mars the Italian elections . .. .. .. .. .. .. 39 nations put their armies on alert, the European Labor Party demands results be overturned, Jimmy Carter Administration is fun­ warns of chaos . neling massive military aide-and The PS I-Italy's party of terrorism ..........'.... 41 according to some reports, even Ma­ Toni Negri's supporters in the ............... 43 rines-into the beleagured dictator­ U.S A Oer Spiegel's boomerang ..................... 44 ship of General nastasio Somoza., Days before European Parliament elections 8RD whose National Guard is a machine of mass m\lrder wherever they can weekly reacts to ELP campaign regain clf ntrol from the Sandinista Oer Spiegel has lost its nerve . .. .. .. .. .. .. 45 liberation forces. As this week's LATIN AMERICA report explains, both the International Monetary MIDDLE EAST Fund and Mexico are watching the situation closely-and simply keep­ Will Turkey get the 'Iran treatment'? . .......... 47 ing Somoza in power is not what the V.S. really is up to. Page NATO, IMF already mounting a 'dump Ecevit' drive 33 U.S. REPORT The unravelling of Jimmy Carter· The unraveling of Jimmy Carter. .. .. ... .. ... 51 Cartergate threatens to split Democratic Party, GOP, Jimmy Carter is out, the New York opens way for LaRouche Council on Foreign Relations has decided-they can dump him just as Frank Church: the product of 'outsiders' ......... 54 fast as they put him in three years CFR's UUman, Gwin hold forth on Project 1980 .... 57 ago. Or can they? Arranging for "Ted" Kennedy to run, and lose, to Alexander Haig in 1980 seemed sim­ COLUMNS ply enough when the decision was made-:- but a wildcard, the independ­ labor Periscope . .. .. .. .. .. .. .. .. .. 59 . ent candidacy of Lyndon LaRouche, Congressional Calendar ..................... 60 could make a quick Kennedy effort The American System . .. .. .. .. .. 62 to split the Democratic Party very costly fo r the CFR. Included in this Facts Behind Terrorism ............... ....... 63 week's V.S. REPORT is an interview World Trade Review ....................•... 64 with the directors of the CFR's "1980s Project," and a profileof the problems besetting Sen. Frank Pge Church. 51 EXECUTIVE EXECUTIVE INTEWGENCE INTElliGENCE REVIEW REVIEW EXECUTIVE INTELLIGENCE EXECUTIVE INTElliGENCE REVIEW REVIEW The U.S. can get- in on the boom which the new European Monetary System will create. But where are the opportunities and how do you get in on them? Read the Executive Intelligence Review and see the facts that your newspaper, stock broker, or economic analyst doesn't know or doesn't tell you. Find out about the battle between the International Monetary Fund and the European Monetary System. THE EIR GIVES YOU THE FACTS r--------------------------- Subscribe Now! • I would likp to subscribp to the Don't miss another opportunity! Executive Intelligence Review for onth Special 3 month introductory o 3 m s 0 6 months 0 1 year half-price subscription offer- $65 PlpdsP charge to my o Md<;\prchdrg<' No. ____________ • (regularly $125) o Intprbdnk No. _____________ o VISA No. _____________ _ 6 months 1 year �ign,lturp Expiration Date __ $225 $400 o I ('ndo�p $ __('he('k or money order. 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T.,S WII. ) Pa rson Malthus goes to Tokyo Two weeks ago in these pages we The irony is th at, indeed, the France and West Germany, with the published a secret memorandum pre­ "neoclassical" models of Lord likely support of Japan, will arrive