"EIR has commissioned this White Paper to bring the truth on the developing Panama crisis to American citizens and lawmakers, so that decisive action can be taken to stop this campaign, before the United States faces a new strategic crisis on its southern flank." White Paper on the Panama crisis Who's out to destabilize the U.S. ally, and why While the New York Times and other major media pump out "news" on Panama to fit these plans, North Carolina's Sen. Jesse Helms, the U. S. State Department, and sections of the Reagan administration have joined in a campaign to overthrow Panama's government and Defense Forces, allegedly because they have been taken over by the narcotics trade. Therefore, the United States must bring to power PanamA's" democratic opposition" movement. As this report shows, the principal figures in the "democratic opposition" movement are drug:money launderers, lawyers for cocaine and marijuana traffickers, terrorists, and gun-runners. Their presidential candidate, Arnulfo Arias Madrid, is a life-long Nazi. The report includes: • A "Who's Who" in the drug. mob's campaign to overthrow Panama's government; • The facts on how "conservative" Jesse Helms has joined with 100 pp. State Department one-worlders to implement a destabilization Order your copy today! campaign designed by the U.S. Liberal Eastern Establishment; Price: $100 • How David Rockefeller's Trilateral Commission and the New York Council on Foreign Relations created the "off-shore" From banking center in Panama, to handle their debt-and-drug loot­ ing of South America; �TIillNews Service • Proposals on how the United States can help secure Panama, P.O. Box 17390 through a series of Canal-centered development projects, wbich Washington, D.C. break Panama's economic dependence on the "off-shore" 20041-0390 economy r4.n by the international banking cartel. Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh Contributing Editors: Uwe Parpart-Henke, Nancy Spannaus, Webster Tarpley, From the Managing Editor 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: Joseph Cohen Director of Press Services: Christina Huth O n Aug. 15, the mass-murder technicians at the International INTELLIGENCE DIRECTORS: Monetary Fund announced that the nation of Peru was officially Africa: Douglas DeGroot. Mary Lalevee Agriculture: Marcia Merry declared ineligible for further credit. All-out financial war against Asia: Linda de Hoyos . the Peruvian people, including food warfare, may now be expected. Counterintelligence: Jeffrey Steinberg. Paul Goldstein What is Peru's transgression? The government of Alan Garcia Economics: David Goldman has dared assert the sovereignty of the Peruvian people, constituted European Economics: William Engdahl. Laurent Murawiec in a nation-state republic, against the murderous demands of supra­ Europe: Vivian Freyre Zoakos national usury. lbero-America: Robyn Quijano. Dennis Small Law: Edward Spannaus On the same day, inside Peru, President Garcia received a dele­ Medicine: John Grauerholz. M.D. gation of labor leaders from all over Ibero-America for a nationally Middle East: Thierrv Lalevee Soviet Union and Eastern Europe: televised meeting. "There cannot be democracy without economic Rachel Douglas. Konstantin George independence," he said. "Without national sovereignty, there cannot Special Projects: Mark Burdman United States: Kathleen Klenetsky be democracy in a single country." The meeting "plotted" the unifi­ INTERNATIONAL BUREAUS: cation of Ibero-American debtors around the kind of program out­ Bangkok: Pakdee and Sophie Tanapura lined in Lyndon LaRouche's Operation Juarez (see page 4). Bogota: Javier Almario Bonn: George Gregory. Rainer Apel Among the weapons being thrown at Peru is narco-terrorism, in Chicago: Paul Greenberg this case involving one of the most brutal Soviet assets in the world, Copenhagen: Poul Rasmussen Houston: Harley Schlanger the Shining Path terrorists who, it would seem, can disrupt the Lima: Sara Madueiio Peruvian economy at the whim of the IMP's technicians. The only Los Angeles: Theodore Andromidas Mexico City: Josefina Menendez sane response is a military war on drugs-which has begun on the Milan: Marco Fanini New Delhi: Susan Maitra continent (see pages 38-43). Paris: Christine Bierre The Feature profiles the European side of Soviet low-intensity Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio. Stefania Sacchi warfare-and the issue is ultimately the same, national sovereignty. Stockholm:' William Jones West Gennany's Green Party leaders, and their actions to subvert United Nations: Douglas DeGroot Washington, D.C.: Nicholas F. Benton. the nation-state that is the key to the continent's independence of Susan Kokinda Soviet domination, all have something in common. In their origins Wiesbaden: Philip Golub. Goran Haglund and actions, they are East Gennan agents at the disposal of the KGB, EIRIExecutive Intelligence Review aSSN 0273-M 14) is and in their philosophy and political objectives, they are Nazis. published weekly (50 issues) except for the second week ofJuly and first week of January by New Solidarity In this connection, we applaud President Reagan for his attack International Press Service 1612 K St. N. W .. Suite 300. Washington. D.C. 20006 (202) 955-5930 on the Berlin Wall, as an insult to humanity and an example of the Distributed by Caucus Distributors. Inc. EUTOpHII Heuquarters: Executive Intelligence Review fruits of appeasement (see International page 34 and Editorial page Nachrichtenagentur GmbH. Postfach 2308. Dotzheimerstrasse 166. 0-6200 Wiesbaden. Federal Republic 72). The Soviet Union and the IMF have the same objectives, empire of Germany over a depopulated world, and Peru's Garcia is only doing in Ibero­ Tel: (06121) 8840. hecutive Directors: Anno Hellenbroich.. Michael Liebig America what President Reagan has done for Europe-calling an lit DenllUlrlc: EIR. Haderslevgade 26. 1671 Copenhagen (01) 31-09.Q8 end to appeasement of imperialists. Next week, EIR will review the In Mexico: EIR. Francisco Dfas Covarrubias 54 A-3 Colonia San Rafael. Mexico OF. Tel: 705-1295. economic achievements of the Garcia government. JIlflGII subscription sales: O.T.O. Research Corporation. Takeuchi Bldg .• 1-34·12 Takatanobaba. Shinjuku-Ku. Tokyo 160. Tel: (03) 208-7821. Copyright © 1986 New Solidarity International Press Service. All righlS reserved. Reproduction in whole or in pan without permission strictly prohibited. Second-class postage paid at Washington D.C .. and at an additional mailing offices. 3 months-SI25. 6 months-$225. I year-$396. Single issue-$10 Academic library rate: $245 per year Postmaster: Send all address changes to EIR . P.O. Box 17390. Washington. D.C. 20041-0390. (202) 955-5930 ITillConteDts . I Departments Science & Thchnology Economics 49 Middle East Report 16 The steps to human 4 IMF declared 'ineligible' Soviets court rapprochement in habitation on Mars to run the world economy Israel. The National Commission on On Aug. 15, as the IMF was Space has stated that the goal of debating how it could declare 50 Dateline Mexico space exploration is to make the "ineligible" a country which had Nazi-Communists renew alliance. Solar System "the home of just bombed its cocaine labs, the humanity" -and that starts with President of Peru met in Lima Mars. with a dozen labor leaders from all 51 Andean Report over the continent. Barco's first week. 6 The fraud in the budget 7'J, Editorial Investigation forecasts Kornblum should resign. Congress and the administration 54 Time to open the Mario are competing to see who can Cuomo file! produce the most incompetent It is a pressing national security forecasts of the budget deficit. concern that the New York State Democratic Party , and other state 8 AIDS cover-up exposed in party machines' decades-long Europe partnership with the mafia be abruptly ended. 9 California officials refuted on transmissibility of 56 A chronology of scandals AIDS An affidavit submitted by John Grauerholz, M.D., in refutation of claims made by the attorney­ general of California against Proposition 64. 11 Currency Rates 12 Gold The reality principle. 13 Agriculture The grain storage ·problem'. 14 Business Briefs Volume 13 Number 33, August 22, 1986 Feature International National 34 Berlin policy: State 58 Will perjury charges ruin Department ftouts Reagan William Weld's career? ''They started with barbed wire, Documentation: Excerpts of Mr. instead of a waIl. If we had Weld's testimony at Senate gone in there and had tom this hearings on Aug. 13. wire down, there would be no waIl," said the President, 60 The case against William accurately-but a State Weld Department spokesman The testimony in opposition to the immediately contradicted him. nomination, submitted by Warren A masked demonstratoraims with his slingshot at riot policebehind the fence, during violent demonstrations' J. Hamerman, chairman of the at theWackersdorf nuclear facility in Bavaria on May 37 Political 'strains' take toll National Democratic Policy 18,1986. on Queen? Committee, to the U.S. Senate Committee on the Judiciary. 24 The German terrorist 38 Peru bombs cocaine fields, friends of Secretary as lbero-America unites to 63 Where Reagan disagrees George Shultz fight drugs with LaRouche An issue by issue comparison. 26 Dossier: Greens, 40