• • • Confidential Alert • • In the age of Irangate, the Zero Option, Every day, we add to our computerized and glasnost, you may very well need to intelligence data base, which gives us • be ahead of the news. instant access to news items provided • by our bureaus all over the world. As an Alert subscriber, you get in­ When you subscribe to the EIR Confi­ immediate formation on the most important break­ dential Alert service, we bring you in on ing developments in economics, the unique intelligence capability we use strategic news, and science. • to assemble Executive Intelligence • Review's weekly review. EIR Alert brings you 10-20 concise news items, twice a week, by first class mail---':' or by fax (at no extra charge). Make checks payable to: • News Service In Europe: Em. EIR Nachrichtenagentur GmbH. P.o. Box 17390 Postfach 2308 Dotzheimerstr. 166. Washington. D.C. 20041-0390 D-6 200 Wiesbaden. F.R.G . Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman Managing Editors: Vin Berg and Susan Welsh From the Editor Editoral Board: Warren Hamerman. Melvin Klenetsky. Antony Papen. Uwe Parpan­ Henke. Gerald Rose. Alan Salisbury. Edward Spannaus. Nancy Spannaus. Webster Tarpley. William Wertz. Carol White. Christopher White Science and Technology: Carol White Special Services: Richard Freeman Feature Book Editor: Janine Benton T his week's is a case study in how economic breakdown Advertising Director: Marsha Freeman threatens Westernsecurity. In other recent Features, we have looked Circulation Manager: Joseph Jennings at the collapse of food production, and the decay of the North Amer­ INTELLIGENCE DIRECTORS: Africa: Mary Lalevee ican electricity grid. Now we turn our sights to the NATO country Agriculture: Marcia Merry which is on the front lines with our Warsaw Pact adversary, and to Asia: Linda de Hoyos Counterintelligence: Jeffrey Steinberg. the most highly concentrated industrial zone in the world-the Ruhr­ Paul Goldstein gebiet of the Rhine valley in the Federal Republic of Germany. Economics: Christopher White European Economics: William Engdahl. This exclusive story is adapted from a recent Special Report Laurent Murawiec published by our collaborators at EIR Nachrichtenagentur GmbH in lbero-America: Robyn Quijano. Dennis Small Law: Edward Spannaus West Germany, and translated by Dr. Wolfgang Lillge. It tells how Medicine: John Grauerholz. M.D. steel production, industrial jobs, and population levels are being Middle East: Thierry Lalevee Soviet Union and Eastern Europe: chopped down in a deliberate "post-industrial" policy. And how not Rachel Douglas. Konstantin George accidentally, the "business" promoters of this policy are the biggest Special Projects: Mark Burdman United States: Kathleen Klenetsky mouths preaching appeasement of the Soviets, within West Germany INTERNATIONAL BUREAUS: and the United States. Bangkok: Pakdee and Sophie Tanapura The question of Germany's defense catapulted into world press Bogota: Javier Almario Bonn: George Gregory. Rainer Apel headlines with the tragedy at the Ramstein air show on Aug. 28, Copenhagen: Poul Rasmussen where nearly were killed in the crash of the Italian "Frecce Tri­ Houston: Harley Schlanger 50 Lima: Sara Madueno colori." EIR readers will recall that our publication has uniquely Mexico City: Hugo LOpez Ochoa. Josejina covered this annual event, which is a magnet for pro-American, pro­ Menendez Milan: Marco Fanini NATO sentiment among Germans and Europeans in general. New Delhi: Susan Maitra For this reason, and because the flight techniques exhibited are Paris: Christine Bierre Rio de Ianeiro: Silvia Palacios related to NATO air defense capabilities, the Soviet-steered "Green" Rome: Leonarda Servadio. Stefania Sacchi movement and others had set up a drumbeat over recent weeks to Stockholm: Michael Ericson Washington. D.C.: Nicholas F. Benton. William stop the air show. Our International lead article on page 36, reflect­ Jones Wiesbaden: Philip Golub. Garan Haglund ing reports from expert sources on both sides of the Atlantic, tells why the possibility of sabotage can absolutely not be ruled out in the ElRIExecutive Intelligence Review (ISSN 0273-4)314) is published weekly (50 issues) exceptfor the second week Ramstein catastrophe. ofJuly and last week ofDecember by New Solidarity In this Intemotional Press Service P.O. Box 65178. Washington. regard, I would like to remind readers of two EIR Special DC 20035 (202) 457-8840 Reports which highlight the capabilities-political and technical­ BIITGfIHlIH..Jq lltllWrr: Executive Intelligence Review Nachrichtenagentur GmbH.Postfach 2308. used to terrorize the West into disarming itself. "Germany's Green DoIzheimersttasse 166.0-6200 Wiesbaden. Federal Republic ofGennany Party and Terrorism," details the genesis and networks of the "en­ Tel: (06121) 8840. Executive Directors: Anno HeUenbroich. Michael Liebig vironmentalist-peace" movement which runs political cover for hard­ 1. De ...... : BIR. Rosenvaengets AIle 20. 2100 Copenhagen OE. Tel. (01) 42-15-00 core terrorism. "Electromagnetic Effect Weapons: The Technology 1. MeJtieo: BIR. Francisco Dfaz Covanubias 54 A-3 and the Strategic Implications" describes the advanced weaponry Colonia San Rafael. Mexico OF. Tel: 705-1295. which has made the Kremlin oh-so-willing J"";'.uIneriptiD • •••: O.T.O. Research Corporation. to pull down its (obsolete) Takeuchi Bldg 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo .• nuclear arsenal. Both reports are available for per copy. 160. Tel: (03) 208-7821. $150 Copyright Cl 1987 New Solidarity International Press Service. AIffights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at at Washington D.C .• and an additional mailing offices. 3 montbs--$I2S.6 montbs--$22S.I year-S396.Single issue-$IO Postmaster: Send all address changes to ElR. P.O. Box 17390. Washington. D.C. 20041-0390. • TIillContents Interviews Departments Economics 51 Michael Ericson 55 Dateline Mexico 4 World food production The leader of the European Labor PRJ, government splitting apart. and stocks plunge Party in Sweden discusses Notwithstanding the Agriculture September elections and the Middle East Report Department's wild overestimates, "Swedish model" of dictatorship. 56 Drug routes being reorganized. the combination of low harvests in North America, and the decline in the high-productivity farm sector Andean Report 57 abroad, amount to a catastrophe. A 'partisan' solution for Science & Thchnology Colombia? 8 $11 blllion of 'Monopoly' 16 X-ray laser: The full money documentary record Federal regulatory agencies are Part 2 of Charles B. Stevens's issuing promissory notes to bail report on the revelations contained out bankrupt S&Ls, because they in recently declassified materials, are as bankrupt as the S&Ls. confirming the importance EIR's reportage has attached to this Currency Rates technology. 9 10 FDIC figures conceal real bank failures 11 Prices explode in Yugoslavia 12 Commodities A threat to strategic minerals. 13 Agriculture Schools get 'long distance' milk. 14 Business Briefs Volume 15 Number 36. September 9. 1988 Feature International National 36 Sabotage not ruled out in 60 U.S. stiffens resistance to Ramstein air disaster Russian SDI blackmail The calls to end low-flying aerobatics at military air shows 62 Dukakis's secret certainly activates sabotage as an government hypothesis. The real, rotten story behind the governor's Massachusetts 39 What next for Pakistan? administration. Part 1 of a series by an EIR Investigative Team. A shut-down steel plant in the Ruhrcity of Duisburg As the Afghan crisis becomes in 1985. critical, the unsolved murder of a President and fragmented political 64 Iran's 'Class of '79' boosts parties cast uncertain shadows. By 'Perestroika' rips Ruhr Mike Dukakis 26 Susan Maitra and Ramtanu Maitra. industrial zone of Germany 6S Have U.S. media gone 43 Government ultimatum 'pro-nuclear'? Once a model region for industrial ends Polish strikes might, technological innovation, and high-quality products, the New Ikle-Wohlstetter 44 Soviets brag: Moscow is 66 region is being systematically reports urge U.S. strategic "restructured" into a crime-ridden the Third Rome, seat of suicide "services center," harbinger of world empire West Germany's collapse into the The July issue of Novy Mir proves 68 Elephants & Donkeys status of a Soviet protectorate. that the Soviet Union is governed Dukakis held hostage in by a tripartite regime of the Massachusetts. Communist Party, the military, and the Russian Orthodox Eye on Washington Church-united under the banner 69 of Russian chauvinist "blood and soil. " 70 National News 46 Soviets promote Pugwash to further self-destruction of the West 48 A Palestinian state by the new year? 49 Soviets back IRA in war on Britain S3 IMF 'shock' plan set to rip up Peru S4 Panama warns of U.S. military intervention S8 International Intelligence TIillEconomics World food producti<J)n and stocks plunge by Marcia Merryand Robert Baker As drought persisted over the North American Plains this ending stocks of 288.5 millidn metric tons is even low, al­ summer, u. s. government officials repeatedly announced though based on an overstatement of harvests and stocks . that, despite low harvests this fall, food stocks will be suffi­ EIR estimates world ending stocks at 249.65 million metric cient to meet domestic and export needs as usual. However, tons, with U.S. stocks falling toward record lows relative to as the com harvest now begins in the Midwest, the low yields need. dramatize how government statements on com and all other The USDA characteristically put out a high monthly es­ food supplies amount to the Big Lie. Even the statistics pub­ timate, and then alters it each month. The common quip is, lished by the Department of Agriculture show a dramatic "They'll get it right in fiveyears ." The July 10 USDA esti­ plunge. mate predicted U.S. com yields would be down by 23% this This is of global concern. On average, the United States year. On Aug. 11 this was "revised" to 37%. On Sept. 10, and Canada in recent years have provided about 48% of all expect another downward revision, although all along, some­ cereal grains exported annually.