How pension funds lost $100 billion Libyan-KGB group targets Bhutto famlly LaRouche on U.S.-Mexico economic potential Profile of a conspiracy [THIS PAGE IS INTENTIONALLY BLANK] Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editor-in-chief: Criton Zoakos Editor: Robyn Quijano Managing Editor: Susan Johnson Art Director: Martha Zoller Circulation Manager: Pamela Seawell Contributing Editors: From the Editor Christopher White, Uwe Parpart, Nancy Spannaus . Special Services: Peter Ennis INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot Agriculture: Susan B. Cohen, Robert Ruschman Asia: Daniel Sneider Counterintelligence: Jeffr ey Steinberg Economics: David Goldman Energy: William Engdahl Europe: Vivian Zoakos Latin America: Dennis Small Law: Edward Spannaus Middle East: Robert Dreyfuss Military Strategy: Susan Welsh Science and Technology: Marsha Freeman R eaders who followed EIR's warnings of assassination and desta­ Soviet Sector: Rachel Douglas bilization plans against the Reagan administration, plans underscored United States: Konstantin George in this journal since the December 1980 Eurosocialist conference in Washington, have an advantage in grasping the background l\nd INTERNATIONAL BUREAUS: Bogota: Carlos Cota Meza goals of the conspiracy outlined in this week's Special Report on the Bonn: GeorgeGregory, assassination attempt against the President. Thierry LeMarc "The Profile of a Conspiracy" argues that the plotters are a far Chicago: Paul Greenberg Copenhagen: Vincent Robson older, more deeply evil network than the Trilateral Commission, Houston: Timothy Richardson Council on Foreign Relations, and other policy fronts. Los Angeles: Theodore A ndromidas Editor-in-ChiefCriton Zoakos, Counterintelligence Editor Jeffrey Mexico City: Josefina Menendez Milan: Muriel Mirak Steinberg and EIR's Investigative Leads staff, and Linda de Hoyos, Monterrey: M. Luisa Gomez del Campo . editor of both editions of the groundbreaking book Dope, Inc., New Delhi: Paul Zykofs ky Paris: Katherine Kanter, pinpoint the elements of the requisite investigation. Sophie Tanapura One can only find a reply to Cui bono? if the "benefits" in "Who Leonardo Servadio Rome: benefits?" are properly defined. The international group that almost Stockholm: Clifford Gaddy United Nations: Nancy Coker killed another U.S. chief of state is not out for financial gain or Washington D.C.: Laura Chasen, political advantage in any ordinary sense. The aim is the destruction Susan Kokinda of the United States itself as a center of progress, prosperity, and Wiesbaden (European Economics): Laurent Murawiec moral enlightenment. The Reagan presidency and its bipartisan collaborators have the Executive Intelligence Review potential to reverse the horrifying decline of the nation. Hence the (ISSN0273-6314)is publishedweeklyby New Solidarity InternationalPress Service assassination attempt-which can be made to backfire against its 304 W,58thStreet, New York, N. Y.IOOI9. instigators, and vastly strengthen the administration. In Europe: Executive Intelligence Review, Nachrichten Agentur GmbH, I refer you in this connection to our National section's analysis of Postfach 1966, D. 6200 Wiesbaden the law-enforcement question, and to our continued coverage of the Copyright c 1981 New Solidarity International Press Service Global 2000 plotters who do not shrink from assassinating billions. Allrights reserved. Reproduction in whole or in part without permission strictly prohibited. Second-class postage paid at New York, New York and at additional mailing offices. Subscription by mail for the U.S.: 3 months-$125, 6 months-$225, I year-$396, Single issue-$IO TIillContents Departments Economics 13 Science & Technology 4 A gameplan for the Scientific research: budget interest-rate summit cuts pull the plug The Treasury and other on national labs. strategists intend to bog down U.S. allies' demands 18 Book Review to dump the Volcker policy. The Pope, His Banker, and Venice, by Felix Gilbert. Documentation: Interviews with the Federal Reserve's 20 Guest Commentary Henry Wallich and the NSC's Henry Nau. Predator control for U.S. ranchers: a history of 7 Currency Rates government sabotage. 48 Middle East Report 9 How pension funds lost 5100 billion Britain stirs unrest on Saudi border. Leif Johnson compared the returns on their investment with average portfolios. The 49 Dateline Mexico managers of the 1970-79 Time to clean out loss are 'postindustrialists.' Alan Riding. 14 International Credit 60 Congressional Closeup Power play around Poland's debt. 64 Energy Insider 15 Gold Oppenheimer dealing with the Russians? Note: Figure 9 on page 6 of our March 31 article on the U.S. military 16 Art Investor capability was altogether Time, place, and prices. wrong, with mislling and misplaced colunms. We will 17 World Trade provide subscribers with the accurate version. 22 Business Briefs A lesser annoyance: EIR will be printed on groundwood paper for our April 21 issue once more, we hear. Volume 8 Number 15 April 14, 1981 Special Report International National 36 Who will gain the 52 Gen. Maxwell Taylor, upper hand in Poland? the Soviets, and The splits within the party, Global 2000 Yjithin Solidarity, and A Soviet faction, says among the foreign Global 2000 sponsor nations concerned. Taylor, has made a deal to let the underdeveloped 38 LaRouche specifies sectordie. recommendations on U.s.-Mexico economic Documentation: An The world noted John W. Hinckley, Jr.'s brain­ washed appearance immediately after his policy interview with Taylor, and arraignment. UPI extracts from his Population A report on EIR 's Crisis Committee paper. Washington conference. 24 The profile of 55 Response to Haig's a conspiracy Documentation: Excerpts move for control A hideous branching point from UPI's press coverage for the "chaos and and from EIR Latin International and domestic confusion" scenario against America Editor Dennis comments on the famous the White House. Small's policy statement March 31 TV assertion by on Central America. the secretary of state. 27 Unanswered questions about the attempt 41 Bhutto family targeted 56 Arms for Peking to assassinate by Britain's Libyan­ pressed by CFR the President KGB agents A first-handreport on an Arden House conference. Based on the "Manchurian Asia Editor Daniel Sneider Candidate" capability reveals privileged behind the so-called information about the real 57 Two approaches to the lone assassin. purpose of last month's law-enforcement crisis Pakistani hijacking. Presenting proposals by 28 The five levels Supreme Court Chief of investigation 45 Shimon Peres makes Justice Burger and EIR overture to the Arabs fo under LaRouche. EIR's Investigative Leads' March 31 memorandum on An initiative blacked directions of inquiry. out of the Western press; 62 National News Mark Burdman analyzes 32 The Permindex its prospects. connection Update: An EIR seminar on Documentation: Peres's "The Undeclared War On A synopsis of the activities statement. American Banking" is and personnel of the scheduled for Friday, May international operation 50 International Intelligence 8, at 7:30 p.m. in Houston. that targeted de Gaulle Economics Editor David and Kennedy. Goldman will be a speaker. Contact Donna Benton at (7 13) 972-1714 or JeffHa ll at (313) 964-2550. �IIillEconomics A gameplan forthe interest-rate summit by David Goldman Finance Ministers of the Group of Five-the United tarist policy is a national security problem. States, Britain, France, Germany, and Japan-convene The view that the NATO allies will not have sufficient in London on April 10 to debate the European proposal resources to conduct a credible military program if the for a global lowering of interest rates. The Treasury Fed succeeds in pushing the country into recession is Department, which. has been closed-mouthed concerning supported by EIR's own computer econometric study of the conference, does not report what other consultations the economy's capacity to mobilize (see EIR, March 31, Treasury Secretary Donald Regan will conduct with his 1981). But it does not require computer analysis to assert European counterparts in the course of the trip, although that Volcker "could turn the United States into a military an Associated Press dispatch March 28 claimed that he dwarf," as a leading Hamburg banker put it. would also travel to Bonn and Paris for separate discus­ This is one reason why the American motivation for sions. the convening of the Group of Five meeting emerged not The convening of the extraordinary conference itself from the cabinet departments normally responsible for shows how far the influence of the Franco-German such matters, but rather from the White House itself. "superpower" has come in the United States. Despite the President Reagan and his leading staff have noted the refusal of either the Treasury or the Federal Reserve to February fall in housing starts, industrial production, consider Europe's proposal-reiterated at the highest real personal income, and construction spending, as well executive level by the heads of government of the Euro­ as the three-month consecutive decline in the index of pean Community last week-the White House accepted leading indicators, and are not blind to the fact that Fed the European agenda as a matter of urgency in the Chairman Volcker has led them into a trap. Unfortu­ foreign policy realm. nately, the White House still believes that it must com­ As National Security Council senior staff member plete the cuts in the federal budget, regardless of the Henry Nau