AIDS is now a threat to everybody Who said it first? EIR did! On March 2, the New York Times Magazine finally admitted that AIDS could spread outside of the so-called risk populations of homosexuals and drug-users. EIR had the story six months before: that millions of Africans, men, women, and children, had the disease; that AIDS is a disease of economic breakdown, spreading under conditions of overcrowding, lack of sanitation, etc.; that quarantine was mandatory-and that the Soviet Union, in control of the World Health Organization, was playing the principal role in covering up AIDS' nature and spread. Subscribe to Executive Intelligence Review, the most comprehensive, and accurate political intelligence service in the world. I would like to subscribe to Executive Executive Intelligence Review for o 1 year 0 6 months 0 3 months Intelligence I enclose $ _____ check or money order Review Please charge my 0 MasterCard 0 Visa Card No. Exp. date _____ Signature _____________ u.s., Canada and Mexico only Name ____ ___________ 1 year ...................................... $396 $225 6 months . ......... .... ..... ....... ....... Company ______________ ... $125 3 months . .. ... ..... .. .. .... Phone ( Foreign Rates Address ______________ Central America, West Indies, Venezuela City _________________ and Colombia: 1 yr. $450. 6 mo. $245. State _________Zip ____ _ 3 mo. $135 Make checks payable to EIR News Service Inc .. Western America, Europe, South P.O. Box 17390. Washington. D.C. 20041- Mediterranean, and North Africa: $1 yr. 0390. In Europe: EIR Nachr{chtenagentur 470, 6 mo. $255. 3 mo. $140 GmbH. -Postfach 2308. Dotzheimerstrasse 166. 62 Wiesbaden. Federal Republic of Germany. All other countries: 1 yr. $490. 6 mo. telephone (06121) 8840. $265, 3 mo. $145 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 Rcse, 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 INTELLIGENCE DIRECTORS: As this week's cover story heralds, the battle for the President's Africa: Douglas DeGroot Strategic Defense Initiative has been joined in Asia, with a confer­ Agriculture: Marcia Merry Asia: Linda de Hoyos ence on SDI co-sponsored by EIR enjoying the attendance of almost Counterintelligence: Jeffrey Steinberg, Paul Goldstein 200 top Japanese political, military, and business figures. We report Economics: David Goldman on the many presentations (page 24), and feature the in absentia European Economics: William Engdahl, Laurent Murawiec address of Lyndon LaRouche (page 27). Europe: Vivian Freyre Zoakos See also the brief profile of Richard Perle (page 58), an assistant Ibero-America: Robyn Quijano, Dennis Small Law: Edward Spannaus secretary of defense, who went to Japan to sabotage Japan's coop­ Medicine: John Grauerholz, M.D. eration in SDI. Would this were his only action on behalf of foreign Middle East: Thierry LaleVl!e Soviet Union and Eastern Europe: powers! . Rachel Douglas, Konstantin George This week's Investigation is focused on the so-called Inter-Amer­ United States: Kathleen Klenetsky, Stephen Pepper ican Dialogue, headed by Xerox magnate Sol Linowitz and such INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura Establishment luminaries as McGeorge Bundy and Robert Mc­ Bogota: Javier Almario Namara, and their report calling for the legalization of drug traffic. Bonn: George Gregory, Rainer Apel Chicago: Paul Greenberg We are not surprised, only happy to have them out in the open as Copenhagen: Poul Rasmussen Dope, Inc. These are the "respectable" fellows who brought you Houston: Harley Schlanger Lima: Sara Madueiio Vietnam, the nuclear freeze, and who have otherwise conspiredwith Los Angeles: Theodore Andromidas Mexico City: Josejina Menendez Moscow for the past three decades to erode U.S. power and cede Milan: Marco Fanini Europe and Asia to the Soviet Empire. We recall thatin 1967, Bundy New Delhi: Susan Maitra Paris: Christine Bierre got together with Alexei Kosygin's son-in-law, the KGB's Dzher­ Rio de Janeiro: Silvia Palacios men Gvishiani, to create the International Institute for Applied Sys­ Rome: Leonardo Servadio, Stefania Sacchi Stockholm: Clifford Gaddy tems Analysis in Austria. It crafted Malthusian policies to destroy United Nation : Douglas DeGroot s the economies of the West. Those policies were promoted in the Washington, D.C.: Nicholas F. Benton, Susan Kokinda West by the Club of Rome, which the same Gvishiani created a year Wiesbaden: Philip Golub. Mary Lalevee later. Also in 1967, Yuri Andropov took over the KGB and threw EIRIExecutive Intelligence Review (ISSN 0273--{j3l4) is the full resources of the Soviet state into drug-running into the West. published weekly (50 issues) except for the second week of July and fir.« week of January by New Solidarity Now, Bundy and friends propose to "legalize" the opium war begun International Press Service St. N. Suite 1612 K W 300. Washington. D.C. 20006 (202) 955·5930 by their friends Gvishiani and Andropov. Distributed by Caucus Distributors. Inc. We have all along stated that drug traffic is not a "social prob­ Executive Intelligence Review European Headquarters: Nachrichtenagentur GmbH. Postfach 2308. lem," but a national security issue. You be the judge. Dotzheimerstrasse 166. D·6200 Wiesbaden. Federal Republic of Germany Finally, I call your attention to our Economics lead (page on Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. 4), Michael Liebig the Israeli commission which has called on the country'stop bankers EIR. Haderslevgade 26, 1671 Copenhagen (01) III Dtllnuuk: 31·09·08 to resign for criminal misconduct, and an item (page 40) concerning III Muko: EIR, Francisco Dfas Cov8lT\Ibias 54 A·3 the arrest of prominent Israeli figures for gun-running to Iran. How Colonia San Rafael, Mexico DF. Tel: 705·1295. O.T.O. these developments are related is spelled out in Special /tIptIII.ubsCriptioll .ales: Research Corporation, EIR's $250 Takatanobaba, Takeuchi Bldg., 1·34-12 Shinjuku-Ku, Tokyo 160. Tel: (03) 208·7821. Report, Moscow's Secret Weapon: Ariel Sharon and the Israeli Copyright C 1986 New Solidarity International Press Service. Mafia. All rights reserved. Reproduction in whole or in part without permission strictly probibited. Second",lass postage paid at Washington D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single isslJC--,$lO Academic library rate: $245 per year PoItmuter: Send all address changes to EIR, P.O. Box 17390, Washington, D.C. 20041-0390. (202) 955-5930' • , ITillConteDts Interviews Economics 45 Juan Gabriel Labake 4 IsraeU bankers cited for The persecution of fonner corrupt practices Argentine President Isabel The Bejski Report on banking in Martinez de Peron is discussed by Israel has the drug-connected one of her friends and associates. financi" elite in that country and throughout the world terrified. Departments 6 Soviets, World Bank, and State'Dept. caught in joint' 11 Dateline Mexico AIDS war on Africa A new presidential frontrunner. 8 The strange business of i2 Medicine the EUropean AIDS: Jenner to the rescue? Industrialists Roundtable 51 Africa Report 10 Currency Rates Libya wins elections in Sudan. 13 Fore'gn Exchange 52 Mother Russia Bundesbank cuts loose from Chauvinists strut in Communist dollar. journal. 14 Energy Insider Report from Rio 53 Oil industry girds for depression. Soviets seek an ally in ,Brazil. 15 Banking Editorial 72 Merrill Lynch under fire. Now, the oil fields . 16 BusiJiess Briefs Science & Thchnology 18 Hu�n life is 'cost effective' i Part II in Dr. Wolfgang Lillge's series on the life-saving potential of high-quality, high-technology medic$} care . Volume 13 Number 18, May 2, 1986 I . Feature International National 38 Europe joins u.s. terror 56 Exposed: new moves to cut crackdown, expels Libyans American troops in European actions against Libyan Europe terrorists have picked up, but fall short of what is needed. 58 U.S. policy on terrorism stated 40 Mossad agents busted Testimony by John Whitehead of selling arms to Iran the State Department on April 22 Shown in Ibis official Department of Defense ' illusttation is a single, neutron-bomb powered 1986. x­ ray laser module popped up into space, shooting 41 Gorbachov's secret East !he entire Soviet ballistic missile force in its boost Mossad espionage and phase. Alternatively, Ibis module could sboot German agenda 59 down Ibe 10,000 Soviet warheads at leisure Richard Perle during the 20 minutes it takes them to travel to Mexico moves to stop !heU.SA 42 narcoterror coup 61 NOPe campaigns target . the drug lobby behind the 24 Japanese elite hear liberal Democrats strategic, economic 43 Narcotics mob's agents dimensions of SDI fear LaRouche associates in Colombia 62 Ohio: Candidates ,battle· A report from the Tokyo the dope mafia conference sponsored by the Fusion Energy Foundation and the 47 Trilateral-KGB lobby Schiller Institute. exposed in Spain 63 North Carolina: Croom As Gonzalez readies trip to for Senate hits defense 27 The revolutionary impact Moscow. crisis of the SDI on the growth of the world economy 50 Euthanasia foes try 64 Indiana: Georgia Irey emerges as the Lyndon H. LaRouche, Jr.'s stalling in Holland address to the conference. frontrunner 54 International Intelligence 65 Pennsylvania: LaRouche Dems take the state by Investigation storm 32 Trilateral panel talks up 66 Rainbow Coalition: Jesse legalizing the dope trade vows to run against LaRouche An elite group of bankers and businessmen have recommended legalizing drugs-and they're the 67 Eye on Washington same people who brought you GOP voter base wants LaRouche, Vietnam, the nuclear freeze, etc. too. 68 Congressional Closeup 70 National News I· �TIillEconomics Israeli bankers cited for corrupt practices by MarkBurdman i The banking centers of London, Geneva, Zurich, and New tices, particularly by Bank L.eumi.