EIR Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Lyndon H. LaRouche, Jr., Muriel Mirak-Weissbach, Antony Papert, Gerald From the Associate Editor Rose, Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, William Wertz Editor: Paul Gallagher Associate Editors: Ronald Kokinda, Susan Welsh he only people who say now that an economic recovery is in Managing Editor: John Sigerson T Science Editor: Marjorie Mazel Hecht process, are either fools, or are guilty of perpetrating a fraud against Special Projects: Mark Burdman the credulous. Book Editor: Katherine Notley Photo Editor: Stuart Lewis Remember the U.S. “budget surplus,” claimed as the pride and Circulation Manager: Stanley Ezrol joy of both the Clinton and Bush administrations? (The budget sur- INTELLIGENCE DIRECTORS: plus that EIR told you was a fake: a derivative of the speculative Counterintelligence: Jeffrey Steinberg, Michele Steinberg bubble, plus illegal looting of the Social Security Fund.) Well, now Economics: Marcia Merry Baker, even Treasury Secretary Paul O’Neill has had to concede that last Lothar Komp History: Anton Chaitkin year, we didn’t have the $127 billion surplus that had been claimed, Ibero-America: Dennis Small but rather a $514.8 billion deficit—and that’s not even counting the Law: Edward Spannaus Russia and Eastern Europe: money stolen from Social Security. Rachel Douglas In Economics, Marcia Merry Baker and John Hoefle tell what’s United States: Debra Freeman, Suzanne Rose really going on. The chimera of free trade has evaporated—just as INTERNATIONAL BUREAUS: Bogota´: Javier Almario Lyndon LaRouche said it would. And the exposure of fraud on the Berlin: Rainer Apel part of Enron and others, is nothing but a cover-up for the fact that the Buenos Aires: Gerardo Tera´n Caracas: David Ramonet entire report of a “recovery” was one gigantic fraud. The fraudulent Copenhagen: Poul Rasmussen accounting practices for which Enron is now being scapegoated, are Houston: Harley Schlanger Lima: Sara Maduen˜o pervasive throughout the utterly bankrupt system. Nothing will save Melbourne: Robert Barwick the world’s nations but the measures LaRouche has proposed. Mexico City: Marivilia Carrasco, Rube´n Cota Meza And there’s another fraud: the “Osama did it” hoax with respect Milan: Leonardo Servadio to Sept. 11 (see National). As LaRouche has said since the moment New Delhi: Ramtanu Maitra Paris: Christine Bierre the terror attacks took place, the responsibility lies elsewhere, with Rio de Janeiro: Silvia Palacios the domestic policy apparatus that is carrying out a coup d’e´tat against Stockholm: Michael Ericson United Nations, N.Y.C.: Leni Rubinstein the U.S. Constitution. Most relevant to this, is our report by Edward Washington, D.C.: William Jones Spannaus on the deliberate Israeli sinking of the USS Liberty during Wiesbaden: Go¨ran Haglund the June 1967 Mideast war. The same Anglo-American utopian appa- EIR (ISSN 0273-6314) is published weekly (50 issues) ratus that covered up that dastardly attack, is behind the Sept. 11 except for the second week of July and the last week of December, by EIR News Service Inc., 317 Pennsylvania atrocity. Ave., S.E., 3rd Floor, Washington, DC 20003. (202) 396-0398. 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EIRContents Economics 7 Road Map for Real Enron Investigation: Give Up Cover Faked ‘Recovery’ Myth This Week Many useful details are pouring out of the Congressional and regulatory investigations into the Enron affair, A rally of the United showing a level of corruption which Steelworkers of is shocking to many Americans, but America in at the same time, a cover-up is in Washington, D.C. place, which hides the true on Feb. 28. authorship of the institutions and policies which created and organized the piracy. 4 Free Trade Is Dead, Despite U.S. ‘Fast-Track’ 9 Truth Is Out on Ramos’ Vote Coups in Philippines It’s the irony that makes the point: The “fast track” trade The former President, and Anglo- negotiating authority passed by the U.S. Senate on May American agent-of-influence, is 23 comes as world trade volume and economic activity being hauled before both the House are spiralling downward into Depression, and many and the Senate to answer for his countries around the world are beginning to reconsider crimes, and criminal prosecution is all “free trade” commitments. a definite possibility. 12 Business Briefs Photo and graphics credits: Cover, page 5, USWA website. Pages 8 (graphic), 10, 49, EIRNS. Pages 8 (Gramm), 35, 37, 51, EIRNS/Stuart Lewis. Page 15, White House Photo/Paul Morse. Page 21, New Kach Movement website. Page 28, Swiss-image Photo/Remi Steinegger. Page 33 (Bush, Mueller), White House Photo/Eric Draper; (Cheney) FEMA News Photo/ Jocelyn Augustino. Page 43, Counter-Strike website. Page 47, EIRNS/Philip Ulanowsky. www.larouchepub.com Volume 29, Number 21, May 31, 2002 International National Interviews 14 Bush Speaks Softly, Carries 32 Sept. 11 ‘Who Knew What’ 39 Dr. Najeeb Al-Nauimi a Big-Stick Message to Debate Misses the Point Dr. Najeeb bin Mohammed Al- Europe The focus of criticism of the Nauimi is the former Justice In his speech to the German administration, is that the Minister of Qatar, and is currently Parliament on May 23, President authorities, who allegedly had an attorney and legal adviser. He Bush made clear that Washington various bits of information, did not formed the Committee for the expects Germany and the other “connect the dots,” to put together a Defense of the Detainees in continental European countries to picture that would show the Guantanamo. support an American attack against imminence of the Sept. 11 attacks. Iraq, including military But the real problem is not that no participation. one connected the dots; the problem Departments is, the dots are a fraud. 16 India, Pakistan Are 29 Australia Dossier Heading Toward War 34 Northcom Raises Legal, Government Delays Fascist Bills. Constitutional Questions 18 Utopians in Washington 56 Editorial Press War, Though Iraqi 37 Cuba Joins the List of Bush “Stale, Flat, and Unprofitable.” Opposition Is a Farce Policy Messes 21 Jewish Terror Plot in East 39 Protect Rights of ‘War on Jerusalem Terrorism’ Detainees An interview with Dr. Najeeb Al- 23 War Party Takes Aim at Nauimi. Syria 40 Bernard Lewis Drops His 24 A 35-Year Cover-Up: Scholar’s Robes When Israel Attacked the USS Liberty 42 Violent Videos and the ‘Killing of Civilization’ 27 U.S. Charm Offensive Greets Dr. Mahathir 44 Video Ban Would Stop ‘LAN Tournaments’ 30 International Intelligence 45 D.C. General ‘Master Plan’ Is a Travesty 47 The Case for D.C. General Hospital By Lyndon H. LaRouche, Jr. 50 LaRouche Endorses Spannaus: Statement on Democrats’‘Self-Inflicted Wounds’ 52 Congressional Closeup 54 National News EIREconomics Free Trade Is Dead, Despite U.S. ‘Fast-Track’ Vote by Marcia Merry Baker In a great irony, the “fast-track” trade negotiating authority they are demanding that countries must not try to “protect” passed by the U.S. Senate on May 23 (included in H.R. 3009, themselves, but continue to commit economic suicide instead. and called “trade promotion authority”), came at a time when A joint statement released on May 15, co-signed by IMF world trade volume and economic activity are spiralling Managing Director Horst Ko¨hler, WTO Director General Mi- downward, and certain countries, most notably China, are chael Moore, and World Bank President James Wolfensohn, beginning to reconsider all “free trade” commitments. More- insisted, “Any increase in protectionism . is damaging . over, it was the United States itself that started the policy- sending the wrong signal, threatening to undermine the ability shift away from free trade, by its steel and lumber tariffs, and of governments everywhere to build support for market-ori- new farm law subsidies this Spring. ented reforms.” There’s no going back. The whole system and institutions The United States did not need to be mentioned by name. of the free-trade model are finished. As the old English rhyme Its specific measures taken this spring include: would have it, “free trade is dead; a candle lights its head.” March 8: President Bush announced that import tariffs An unintended eulogy was delivered by President George would be placed on certain categories of imported steel prod- Bush, when he responded on May 24 to the news of the Senate ucts, in the range of 16-26%, for three years.