THE ONLY WAY TO STOP MARSHAL OGARKOV'S WAR PLAN! The greatest strategic weapon in the Russians' arsenal against the West, is not any of their weapons systems as such, but their ability to exploit the flaws in Western so-called economic thinking, which go by the name of "free enterprise." �TIill How to reverse the economic policy QUARTERLY blunders that led to 'Ira.ngate' CONTENTS ECONOMIC • An international financial blow-out: the real story behind 'Irangate' REPORT • The technology-driver of the new economic upsurge: the forty- year Mars-colonization project • The explosive impact of AIDS on the world economy EIR Quarterly Economic Report Make check or money order payable to: First $1,000 annual subscription Executive Intelligence Review $250 single issue. P.O. Box 17390 Quarter Washington, D.C. 20041-0390 1987 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, From the Editor Nancy Spannaus, Webster Tarpley, 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 Circulation Manager: Joseph Jennings INTELLIGENCE DIRECTORS: Africa: Douglas DeGroot, Mary Lalevee Agriculture: Marcia Merry S orne of our friends in California, the Prevent AIDS Now Initiative Asia: Linda de Hoyos Committee (PANIC), have announced, on May 29, that they will Counterintelligence: Jeffrey Steinberg, Paul Goldstein place another referendum on the California ballot for 1988 which is Economics: David Goldman virtually identical to the famous Proposition 64. This initiative will European Economics: William Engdahl, Laurent Murawiec go directly after the homosexual lobby and cost-cutters who caused Europe: Vivian Freyre Zoakos Prop 64 to fail by lying before the November vote. They lied Thew-America: Robyn Quijano, Dennis Small 1986 Law: Edward Spannaus about "casual transmission," and about the extent of the AIDS threat, Medicine: John Grauerholz, M.D. and as a result, many people will die. Now, voters will have a second Middle East: Thierry Lalevee Soviet Union and Eastern Europe: chance to save lives. Rachel Douglas, Konstantin George That's good news; but equally important is an initiative kicked Special Projects: Mark Burdman United States: Kathleen Klenetsky offon the centerfold pages of this issue by EIR's founder Lyndon H. INTERNATIONAL BUREAUS: LaRouche, Jr., which holds the scientific key both to finding a Bangkok: Pakdee and Sophie Tanapura vaccine and cure for AIDS, and to turning the tide against the Soviet Bogota: Javier Almario Bonn: George Gregory, Rainer Apel war drive. I suggest you tum first to pages 36-37 to find out why EIR Chicago: Paul Greenberg is taking up the issue of radio-frequency weapons in much the same Copenhagen: Poul Rasmussen Houston: Harley Schlanger way that in 1982, more than a year before President Reagan's famous Lima: Sara Madueiio Los Angeles: Theodore Andromidas address of March 1983, EIR aJ)d the scientific organization Fusion Mexico City: Josefina Menendez Energy Foundation took up the battle for what became SDI. Milan: Marco Fanini New Delhi: Susan Maitra As to the SDI itself, the cover story this week reveals the reality Paris: Christine Bierre behind Soviet attacks on the American "Star Wars" program for Rio de Janeiro: Silvia Palacios Rome: Leonardo Servadio, Stefania Sacchi allegedly "militarizing outer space." No one should be fooled into Stockholm: William Jones thinking that the Soviets have developed their Saturn V -class booster United Nations: Douglas DeGroot Washington, D.C.: Nicholas F. Benton rocket, launched on May 15, for "peaceful exploration of space." Wiesbaden: Philip Golub, Goran Haglund The rocket gives the Soviets a significant jump ahead of the United States in being able to launch and orbit laser weapons to attack satellites, and battle stations for strategic defense. EIRIExecutive Intelligence Review (ISSN 0273-{)314) is published wee/cJy (50 issues) except for the second week On page 22, LaRouche targets the treasonous nest in the Depart­ ofJuly and last week of December by New Solidarity International Press Service P.O. Box 65178, Washington. ment of Justice which helped the Soviets obtain this advantage; and DC 20035 (202) 785-1347 on page he analyzes why a Paris court case pitting LaRouche and EaropetUI H"""uamn: Executive Intelligence Review 30, Nachrichtenagentur GmbH. Postfach 2308. his friends against top Soviets is bringing to the surface the very core Dotzheimerstrasse 166.0-6200 Wiesbaden. Federal Republic ofGennany of KGB-Justice Department collaboration. Tel: (06121) 8840. Executive Directors: Anno Hellenbroich. Michael Liebig On the related subject of "Project Democracy," the illegal foreign I.lhllllfllrl<: ElR, Rosenvaengets AIle 20. 2100 Copenhagen OE, Tel. (OJ) 42-15-00 policy apparatus thoroughly exposed in EIR' s recent Special Report, In M."ico: ElR, Francisco Dias Covanubias 54 A-3 Colonia San Rafael, Mexico OF. Tel: 705-1295. I draw your attention particularly to articles on the Philippines (p. JIIfHII' .""",riptio. 10k.: O.T.O. Resean:h Corporation, 35) and Mexico (p. 38). Takeuchi Bldg., 1-34-12 Takatanobaba. Shinjuku-Ku, Tokyo 160. Tel: (03) 208-7821. Copyright @ 1987 New Solidarity International Press Service. All rights reserved. Reproduction in whole or in pan without pennission strictly prohibited. Second-class postage paid at Washington D.C., and at an additional mailing offices. 3 months-$125, 6 months-$225, I year-$396, Single issue-lIO Academic library rate: $245 per year Pustmuter: Send all address changes to EIR. P.O. Box 17390, Washington, D.C. 20041-0390. (202) 785-1347 I. ITillContents Interviews AIDSUpdate Economics 44 Colonel Michael Hickey 15 Just a touch of blood 4 America's foreign subsidy Part II of our interview with the The CDC has again proven itself comes to an end at Venice author of The Spetsnaz Threat: willing to risk anyone's life. EIR warned in its Quarterly Can Britain Be Defended? Economic Report of September 16 WHO opposes any mass 1986, that the political agreements screening under which America's foreign subsidy might be financed were Book Reviews eroding. The summit meeting of 59 Armed Chinese soldiers industrial nations at Venice will bury them. 41 New attempt to cover up put an Irish AIDS carrier the English side of the on a plane Global financial crisis Bolsheviks' 'Trust' 6 62 AIDS 'hottest issue' in the predicted for October Allen Douglas and Scott Thompson review Robin Bruce states If the Reagan administration Lockhart's Reilly: The First Man. continues its present policies, it is 70 VA patients may be tested certain that the world's economic for AIDS situation will become much worse over the summer months. An analysis by Lyndon LaRouche. Departments 71 Police in Washington to wear gloves, masks 7 Currency Rates 12 Andean Report Banker Ulloa faces criminal trial . 8 Deregulation and 'recovery' bring trucking 34 Mother Russia to a state of emergency Racist society steps into limelight. 10 Bradley plan for Third 55 Report from Rome World debt relief ignores AIDS, drugs are top election reality, otTers pittance issues. The Senator's plan won't do any of the things he says it will. 56 Dateline Mexico A political Exocet. 13 Banking Slim prospects for a bailout. 57 From New Delhi The Kremlin's 'Kissinger' pays a 15 Medicine visit. Just a touch of blood. 66 American System 16 Business Briefs Thurgood Marshall, Oliver North, and the Tories of the 1780s. 72 Editorial The Russian R&D challenge. Volume 14 Number 23, June 5, 1987 Science & Thchnology International National 28 u.S. Persian Gulf policy: a 60 Reagan opens door to chance for a change Constitution's destruction Patriotic elements are trying to The President's call for a ignite a shift in the overall U.S. constitutional convention is a military posture, albeit in perfect example of how his refusal piecemeal fashion. to admit that his economic recovery never took place, is 30 Moscow admits LaRouche leading him into actions which number one Soviet target will bring utter ruin on the 1be successful test ftight of the superbooster Energia country. now makes it possible for the Soviets to orbit manned The Soviets' defense motion in a space shuttles, seen here, as well as laser and particle libel action in Paris contains beambattle stations for their SOl program. AIDS 'hottest issue' in the personal attacks on the 1988 U.S. 62 Democratic presidential candidate states 18 Energia: Soviets take the that are unprecedentedly violent. lead in rocketry 63 Rights panel promises Marsha Freeman reports on the 31 Waldheim case bares independent inquiry into nature, and the awesome strategic modern Inquisition 'LaRouche case' defense implications, of the Soviet An independent international Union's new superbooster. 35 Aquino shows the IMF fist commission began sessions in Washington on May 26, and heard 22 How DOJ's Mark Richard 36 The next Soviet 'Sputnik': witnesses testify on an incredible political witchhunt. helped Moscow make the strategic radio-frequency booster break-out assault weapons 65 Vendetta against By Lyndon LaRouche. Lyndon LaRouche reports on how LaRouche is charged Soviet military technology is By Ralph Toledano of the nearing the point of catching a de Copley News Service. Grarnm-Rudmanized United States, strategically flat-footed. 69 Elephants & Donkeys 38 Irangate scandal in Mexico Ted Kennedy builds presidential may sink Wall Street's image. presidential favorite 70 National News 40 New tracks on Irangate's Ledeen 52 Italy-Spain arrests hit narco-terrorism 53 Malaysian leader beats challenge 58 International Intelligence • �TIillEconomics America's foreign subsidy comes to an end at Venice by David Goldman For the past year, the national finances of the United States financedalmost two-thirds of the U.