EIR - How Iran destroyed - full issue

8/20/2019 EIR - How Iran destroyed - full issue

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Wil Carter destroy the Democratic Party?Schmidt in Moscow: shi in word leadershipFusion energy ready for takeo

Genocide on the Chinese model:How it's happening in Ira



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TC

Depments

Middle East ReportSadat te cultst

4 Dateline MexicoCleents bode bas

6 Energy Insider

Synuels eseves and Badley

6 Campaign 8

6 Congressional Calendar

Editoriale stenc o stupdty

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e cat "Eney polcyakn nte USS on pae 33 o sJuly 8 ssue contaned seveal eosNatonal econoc plannn dectvesae ssued to ndusty nstes byGosplan te Sovet State PlannnCosson wc s esponsble tote Councl o nstes and tePoltbuo te eecutve body o teCental Cottee o te CounstPaty Gosplans dectves on eneyae noed by ecoendatonso tee pncpal aences teSan vson o te Acaey oScences te State Cottee on

Scence and ecnoloy and te StateCottee on Atoc Eney

Economic

4 Business Briefs

6 Nulear usion power:ready for a take-oA specal OE cottee closelystuded te atte declaed usonpowe easble b te end o tecentuy and ecoended at leastdoubln te budet o eseacand developent ealzn tatoal would not only eanabundant eney; t wouldtanso te ndustal econoy

8 The DES hoaat cattleen know andconsues out to lean

Savings banks ght bak

Foreign Echange

Internatioal CreditEuope bns down nteest ates

Trade Review



Shi'ite followers of the Ayatoah Khomeini mob the streets of Teheran. Photo: Sygma

Chinese-model genocide:how it's happening in Iranh b f h I b h h W whz fh b. S h hI w

z h h

an's sloweconomy death

What Khomeinihas destroyed

How the Club of Romeplanned Ian's devastation

Volume 7 Number 7 July 0

Intational

3 Internaial Inteence

3 Schi i Mosow: a shtin rd aership at th Vic suit ad Wst th th Atlatic

w th ustal This wk Mw tgthr w· aa with B i th spirit fh .

3 Frac: n ,same criI x E

3 Sovis l wth Euoe

and a Carter a ar

Cartr heats the 'hot spots: I

Natina

46 Natona News

48 W Cate destothe Democatc Pat?Jiy Cartr's riatihlds a uprcdtd ctradisastr i str fr thDcrats, ad r ad r fth, fr dgats t satrs,ar faig away fr thPridt's capaig Cartr·da "plubrs ar faigut arud th cutryt aksur Cartr triuphs at thcvti, ad t tak vr statparty achis

Documentation: Itrviws adcts fr Cgrssiasurcs, Dcratic partycias, ad th Cartr pubrsthsvs

The eona cteCartr's prspctst vry bright

Whte Hose stateCartr's pubrshit th ky stats'

tate chamenPrtsts agaist Cartr's DNC

The es ht

Th truth abutdgats' ptis

In ConessA rvt agaistth Prsidt



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A ecent London Times eatue a co-ed te ypote advacd tpn by colun Alce o ate ac lve aket collap waed by Enelad al o a toput te ueeze on t un bo andab te ol aet

Enlad wo la udCale Enelad tout o avebn te ode o pok anFlen Goldne cotaced Jan-uay to ell 19 llon ounc o lve toe unt o Apl dlvy a $35 anounce Wen lve ell to unde $11 nlate ac Enelad ocd untto and ove 20pecen o te oldnn t Beauot Sea oleld

Accodn to te mes, Enel-ad pce wa eacd wt alene wc would ave aedGoldne One o Enelad e-ployee eulted late We ad oe an-

Setc batad by te oule and weuezed te dy

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Euoaket lendn to te nonolpo-ducn C ledeeloped couepluned by oe tan 40 pecent n tet al o t yea accod to o-an Guaanty World Financial Mar-

kets' newlette e t al o 198wa a patculaly lu pod o eEuoaket becaue o ecod n-teet ate n te dolla OveallEuocuency lendn wa dow by nea-ly 14 pecent e C av a tebunt o te aket declne becaue ote eluctance o ntenatonal bankpatculaly te ajo US one to n-ceae te epoue n tee counte

Accodn to oan analyany C wl l be ad peed to locatee und tey nd to cov debt evce

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and nceaed ol pot co dun teecond al o yea e top twelveC boowe ave o a aed oly$54 bllon o an epected 1980 eue-ent o ove $20bllon Bazl wll needto tap te ake o anote $6 bllonn te net ont Cle $11 bllonte Plppne $16 bllon Koea 16bllon and awan $19 bllon

eanwle e OEC n t uat-ely epot on ntenatonal lendntend pedct a euence o Euo-aket actvty n te econd al o 1980.

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Sy aon 3 ubcbe nea attended ea n uton andalla dun te week o July 30on tetopc Can te Aecan Econoy e-cove? e ena wee addeed by contbutn edto Con Zoakoand Econoc Edto avd Golda n

ea buneen peceve te dan-e to e Aecan econoy poblyn a tone way tan te Eat Coaand dwe counepat pecely b-caue tat ate a ad a uc eow ate tan te aonal avaedun te pat two decade epte teact tat te cuent depeon a te Soutwet uc le eveely tanote pat o te county ean ntta a educton o te owt ate belowte level eued would poduce a d-ate wc te Aecan econoyt not ecove o

ot lae copoaon n te electonc and eou ce eld and allbuneen wo ew up wt teouton NASA Space Cente n ebackyad ae lookn aco te Gul toeco and ote tecnoloyunydevelopn coune a te ew owtaea o te applcaon o eatyleetod O pncpal nteet o enapatcpant wa te eld o tecnoloy-tane poblte open to Aecanpovded Aeca jon te Euopean nbnn a new nenatonal cedt y-te nto opeaton

ou te pot o outon a eadeal o tecnoloy tane epecaly nte eney eld peently undewayoewat at vaance wt te eableepot peoance o te U S econoya a wole e ecan ol ant Peeo eaple place an avae o $1llo capalood ode per daytou t ouon pucan oce ol loca va l dvlopn-eco ake and deyn na-toal bu d o e panoo tnaonal ade a ade e pub-lca a uu pece n e ebune ne

Accod to publc anounceent byWt Gean Fnance Undeecetayaned anten and Econoc Un-deecetay Oto Sclect Wet Ge-any wll ceae an ndutal nvetent

und o Aab petodolla to be ecylednto ndutal ae n te Fedeal e-publc

Fankut bankn ouce coented to uly 4 tat te eultncatal oaton ad poductvty e-panon n Wet Geany wll enableEuope to epand dect loan to tedevelopn ecto n ode to nance ca-talood epot tee

ankn ouce alo tated tat tetaey nclude a Euopean cot-ent to enance te poble debtocounte o t d Wold e nvet-ent und plan tel wll enable Aab olpoduce to ake ecue nvetent na wde ane o Wet Gean copa-ne wle lavn adntaton o teund n Gean and to avod te pol-cal poble o laecale Aab take-ove o Gean O l even ue avebn own eavly nto Weten Euo-pean nvetent aleady but te newaaneent wll pet a oe ete-ve placeent

Accodn to a Wet Gean tnk-tank econot te docuent eulno te two ence ut n Jun

EIR Jul 15 1



the European Community and OECDeadersindicate that the key topic wascombined NorthSouth and EastWesttrade expansion.

G

Supply not sole factorin price jm

The word god price has risen by $75since the Juy 22 Venice summit, reachinga new fourmonth high of $475 an ouncein eary London trading on Juy 2. HeavyEuropean and Midde Eastern buying inthe cash markets has been the maorpower in god's atest rise. Americaninvestors were much sower in returningto the god markets, but the week endingJuy 4 saw a sudden urry of activity inNew York god futures. On June 30, thenumber of contracts outstanding on NewYrk's Commodity Exchange jumped by6,66 contractsthe argest daiy icrease on record.

The underying eason for god's re-

viva is the emergence of Western Europeas a new superpower, whose FrancoGerman eadership is committed to agraua restoration of god's central roein the monetary system. This reality wasaluded to most matteroffactly by techairman of the Union Bank of Switzer-and, Dr. Robert Hozac, in a June 30comentary in the J /:"It is quite possible that te ECU [European Currency Unit] created within theCommon Market wil assue more im-portance as a reserve currency in the nextfew years, especiay since it is party

covered by god. Despite its removafrom the reserve system of the IMF, god,in my opinion, wi remain an importantcomponent of the word's monetary reserves and wi probaby be of some significance as a reserve medium for theOPEC countries.

secodary reason for the runup ingod is the word suppy shortage. Lastweek, the British mining company, Consoidated Godeds, issued its annuagod report predicting that tota suppiesavaiabe from mining production andoicia sources may a 40 percent beow

EIR Jul 1980

ast year's eve. This is due to the termi-nation of pubic auctions by te U.S.Treasury and the Internationa Mone-tary Fund as wel as to reduced sales bythe Soviet Union, wich is earnin thesame amount of foreign ecane onower voumes. Consolidated oldedestimates that Soviet boc saes of god tothe West fel to ony 229 tons in 1979compared to 410 in 1978, and execsthat Soviet sales wi continue on tisreduced eve.

L

Congress sound out"industral policy moves

The Joint Economic Committee of theU.S. Congress recently concluded a se-ries of hearings and a "Spcial Study onEonomic Change, whic ook towara set of tax proposas and scal measresto speed up capita formation. One illconsidered at the JEC hearings is te"Accelerated Depreciation Recovery

Act, sponsored by Rep. Constable (R-N.Y.) and Sen. Bengsten (DTex.). Tebi contains the "053 form ua whichwould ower the depreciation scedulefor a pant structure fro 10 to 20 yearsand cut the lifetime of equipment depreciation from 10 to ve years. It is ru-mored that $12 to $5 bilion of the ea-ganproposed tax cut, totaling $30 bil-ion, woud come in the form of a 1053business tax cut.

Other bils now in Conress con-cerned with industria innovation includeegisation to alow tax credits for R&Dcontracts awarded universities by indus-try; sponsors are Sen. Tsongas (DMass.)ad Rep. Vanick (DOhio). Sen. Dan-forth (RMo.) is sonsoring a bil toincrease industria research funding devoted to improving basic productivity.

Paying a coordinating roe withthese proposas is a specia House taskforce on innovation, with members fromevery reevant House committee incudint the Science and Technology Committee. Te task force is working jointyon these imited but positive bis withightechnoogy obbyists and advisers.

Bf

• CO MM ER CE Depart en of-

ficas are teling inqirers tt eCarter adminisration ha no interest in participatin in seerimportant intenationa ineconferences schedled for te nerfuture according o one irate an-ufacurer. Accorin o or red-er, te Coerce epaentod im tat he is "on is own ihe wants o particiae a eier teInterational Welin Conferencto be hed in Essen, We ermany, or the Internationl f-shore Technolo Conerence to

be hed in Engand tis fall. eadministration "has no inerein either of these conferences. ncea ain, he noted, forein oernents wil bak teir prodcers incompetition for exports.

• JAPAN expects to sen or$ bilion to deveop new enrsources in the coming dece. energy study group fore eMiistry of Inernation reand Industy announc i that Japan wil concentrate on nclear power, coal and iqe

natura gas. M reor by 1985, Japan will have roon line 4 new nuclear rpants, putting te tol 3,which doubles total o 30,0 egawatts. By 1990 ncar is to provide percent of nr-gy needs, coa 17.6 percent nnatura gas 9 percent.

• FORD MTRS has an-

nounce d that al one of i pant s wil be cloe t he e ek July 7. All major U.S. car n-

f acturers pan loner tn summer shtdowns in oe �rking o lare 1980od i-v e ntories. The top ve U.S. cpanies pan t o produc e only bu.37 milion cars in July, Aand Sept ember, the owe ir-quart er otput since 1970. Menwhie, Ford, for ack of fn wil terminate supple enta n poyme nt benets for 54,0 of i64,0 indinit ey ided workers.

cc 5



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N u c lea r fs io n powe

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rea dy f r a t e-o B

d Sas s o hav a energy fuure ino andbyod h dcad of he 1 980s mus develop uclarsso ad fuson rgy a a vry rapid pac. Tisvw frquly prssd i he pages of he EIR is nowgag broadr suppor a a vry crucial im. For hesu of uclar power and fusion rsearch will have armdous impac o he curren dbae on whehr he.S. s capabl of ridusrializing and if so by whamas ad a wa ra.

u 23 a mprssiv policy documn appardw parm of Energy's Fuso Rviw Panlrlasd s sudy on he prospecs of fuso powerheprocss of oinig wo hydrogen isoopes a fanasicallyi praur grang v grar amous of haad usabl rgy. The durium ad rium fulmployd fusion reaions is obtainable from commonsawar; us fusion would represent the chaps mostrgy ci ad mos abudantalmos limlssof al l sng or fuure fulenergy systems . Aer sudy-g .S. fuso ffors currely funded a a palry $400millio pr yar lvl he pal deermied ha hed Sas "s now reay to embark on he ne spoward goal of acheving fusion power .

Composd of ten members and chaired by SolomonBuchsbaum vicepresident of Bell Laboratories hepal mad specic recommendations. In is 3pagerpor h panl calls for gearing up he DE' s magicfuso ffor o $ 1 illi on over the net hree to four yarsto sur hat prooype fusion electri power plants i .e .dmosraon modls will be a realiy before he yar20. From hre fusion becomes a ommercial propo-sio.

I s aalysis the panel reveals that an un precedent

6 Ecoomics

ed scentic consensus fr a .S. fusio commimeiss from h un iversy laboraory o h ighs lvlsof respons ible governm agncis includ g h fcof Managemen and Budge. Th Buchsbaum rpor isbound o add mometum o h lgislaio for vaslyincreasing the U .S . fuson ommimn vgorously spon-sored by Rep. Mike M cCormack a Washigon mo-cra.

I lg of hi mos recen posive revw of . S.

fusion program i is possbl a Corss may mov oake he iiave if h Carr adm srao coinuso igore is own scienific epers and ladng agciso he fusio dvlopm queso.

The mig of h Buchsbaum rpor is propous foranoher reaso . Currnly mos mpora .S. pl-icy and economic deb ae n he las wy yars is akigplace around he socalld "RIndusralzao -bae. The cor of h dba is simpl: Ca .S.achieve a highechnology base adqua o s cvilaand milary needs? This qusion assums an approacha eeds beyod recovrig from dprssios i-cludg h curr worsnng o b u acually ivolvslooking 20 o 30 yars down the road .

Indeed only an approach ha hnks 30 yars iothe future and then plans shorer 1 0 ad veyarstretches of economic growh by working backward cacompeenly define invesmen and capl formaostraegy. Wha nd usres ad nw chologis for -ample should become dominan ad rceive maor pub-li and privae fundig o conrbu oward a rvialzdrevoluonzed and hus hghly producv .S. cono-my in the future? To compe wih Japan GrmayFrance or the Sovie Unio he nid as cao

ER July 1 1980



SolomonBuchsbaum vicepresident of Ballaboratories adchairman of th eDOE specialreview panel for

fusion research

think in terms of copying their best technooges, but oeapfrogging far ahead

From thi perspective, any competent rendustra-zation program mst minimay incude the foowingcrcia hightechnoogyvectored eements: ) generat-ing the type of hightechnoogy energy program thatfeatures the se and deveopment of controed hgtemperature pasma processes; ) a reaunching, on avasty epanded basis, of the 960s Nationa Aeronautcsand Space Administration program, to pursue space

eporation, and aso deveop the types of new materas,eectronics, and so forth that are the prerequisites forsch a space program; and 3 the use of the most ad-vanced teecommnications pocesses, incuding suchadvanced work as beroptics

If, for eampe, a competent space program is to beanched, and its eading edge of technoogy capturedand generaized throughout US industry, industriaststoday mst ook to the use of advanced ceramcs tatcod encose ftre space ships and woud be abe towithstand the highest temperatres and stresses fromhrting through oter spaceThis entais certain ceramc

materias centimeters thick , but as strong as severa eet-thick bocks of concrete Sch ceramics can soon start torepace basic stee, incuding structura stee, havng notony greater strength bt far greater feibiity Tsmeans a major consideration of investment

In the area of energy deveopment, the Unted Stateshas to think in terms of repacing oi as an energysurcin 0 years it woud be ud amst excusveyas a bricant, feedstock and base for chemica productsObviousy, we must junk the snthetic fues program tatpassed Congress this week Tis program , wich pans

ER uy , 980

o sare and conventon co scton, csume more energy ta it generats s sc, programs are scentcay inecent and econocsuicda

Buchsbaumsrommendaons

In its gener overvew, e ucsu pn rports that, Te Pane s peased to record ts vew the tapayers are recevng ter mones or [current fuson] prorm s en we ned, nd conducted y a cadre o dedcted, cpe, nd dwoking scentsts nd engneers recent pror npasma con nement s pressve

Within te ody of the report, te pne ovTer s condece, sed on te ecent por, a acty contnn a urnn p s, perps v ignited pasm, can e but and opered e oserve as an engineern ocus a nd test d

In its first specfic recommendaton, te pne cfor taking ts step Te manetc uson p ror cn,and shoud, embark o n te next oca pse towrd goa of acevn economc easy o ncfusion Togeter wt a broadased ennern pogram, a Tokamakbased Fuson nneern vcshoud e in operatn wthn ten yers

The panes second recommendan s rdbased p rogram in p asma conneent o cernthe highest potentia of magnetc uson Ts, ccding to the pane, woud consst o t e construction o te arge tandemror cy

MFTF); b) e soud pn nd pna coherent, compreensve, advanced a pogram

In that cntet, te report sttes tt nexpnvhiged okaas e te I Acor) pursued Strengenn current jont wor pwas aso proposed, and te pane strony prd INTOR Interntiona Toam Rector) pojc ated by te Soviet Unon, wc ams to conruc Tokamakbas rctor prototy by end 980s trou nternatona copertnIncresn US mo upy orus yrd, co

many o the attractve etures o mrrors nd omaks, was aso recommended, s ws nwork on aternate concepts and advanced uson cyces

Ts study, wic ws cosoned y cuD rector o nery Reserc, dwd . man, is actuay te secnd major reve o Uusion eort n te past tw yers e s su competed in 978 y te Ad oc Pne o punder te cairmansp of r Jon oser o Corporation and as arrved at a vore conc

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wth respect to the status of fuson, whch the Department of nergy gnored

The sprt and promse of future fuson deveopmenthas been kept ave especay by Congressman MkeMcCormack DWash), who ntrodced a b ntoCongress an for an Apoostye program to deveop a commerca fuson reactor before the end of thecentury The b, R6308 , now has over 0 ousesponsors, ncudng most members of the Scence andTechnoogy Commttee, Majorty Leader m Wrght,and Mnorty Leader John Rhodes The b cas for a$0 bon nvestment nto the US fuson effort Acompanon b, wthout fundng speccatons, wasntroduced nto the US Senate ths week by SenTsongas DMass)

It now remans to be seen whether US ndustry andabor have enough sense to secure the bass for genunerendustrazaton by movng an adequate fusn energy b through Congress n the net sesson

What e bill saysThe/oowing is excerpted/rom HR The Fuson nergy Research, Deveopment and Demonstraton Act of 980, sponsored by Rep MikeMcCormack (D Wash. .

Findings and Policy) the current mbaance between suppy and

demand for fues and energy n the Unted Statess key to grow each year for many years, aggravatng an energy crss and threatenng the economc strength and natona securty of the naton;4) t s the proper and approprate roe of thefedera government to undertake research, deveopment, and demonstraton programs n fusonenergy technooges;6) the eary demonstraton of the feasbty ofusng magnetc fuson energy systems for thegeneraton of eectrcty and the producton ofheat, hydrogen, and other synthetc fues w

ntate a new era of energy abundance for amanknd forever;9) the eary deveopment and eport of fusonenergy systems, consstent wth the estabshedpreemnence of the Unted States n the ed ofhgh technoogy products, w mprove the economc osture of the Unted States, and utmateyreduce the pressures for nternatona strfe byprovdng access to energy abundance for anatons

8 conomcs

Te DE oax k

On Apr of ths year a dsgrunted Teas feedotempoyee qut and wrote a etter to the compny Chcago headquarters outnng n deta the fedots cntnued use of dethystbestro DS) mpants Pncked, the company ran to the Food and Drug Admnstraton FDA) to confess DS, a synthetc hormonewhch acts to ncrease the rate of weght gan n fedvestock by 7 percent and whch mproves feed efcency by percent, was outawed by the FDA as of Juy 979, wth a u se to cease as of November 979

There was no good reason for outawng the hrmonen the rst p aceIt s perfecty safe and very usefuTerewas no good reason, therefore, uness one approchethe vestock ndustry from the standpont of a saboteur,determned to keep meat off the Amercan dnner tbeThat s apparenty the standpont o certan envrmentasts, the FDA, W Secretary arrs, nd theDeprtment of Agrcuture They used the dsgruntedTeans report to aunch a m ajor dsrupton of the cttndustry

An army of FDA agents poured no the ed, ndwthn weeks more than 400,0 head of catte hd benquarantnd; no one knew how hgh the numbers woudgo undreds and thousands of producers have beennterrogated, aong wth ther veternarans, consutntsand feed suppy deaers, and the wtchhunt s not overy the end of un e the FDAs Voators Lst numbered30 cattemen from 3 dfferent states FDA awyers reoperatng under the vgorous prosecuton orders

barked out by eath, ducaton and Wefare SecretryPatrca arrs and US Department of AgrcutureAssstant Secretary Caroe Tucker Foremanthatmeans each voator can gt up to $0,0 n nes andthree years n prson for each count agans t them

ureau of Vternary Medcne Drector LesterCrawford announced that the catte ndustry and thFDA had both faed to protect the Amercan pubcfrom cancerThe FDA, sad Crawford, had been ppant about carcnogeness Crawford promed thatbetween the FDA and the USDA a better poce effort

ER Juy , 90



would be mounted The rst cases may get to court bylate July or August

Thus for the umpteenth time since the 1 974 nancialfallout that sent the livestock industry into a nosedivefrom which it has yet to recover the beef cattle marketwas deliberately thrown into disarray Implanted cattlehad to be "eplanted and then held off the market for

4 1 days in cases where the liver and k idney would no beused for human consum ption or for 61 days if the entirecarcass was to be used At the producer's epense ofcourse The livestock industry operates on razorthinmargins to begin with and they've shown negative formany months

But as the DES scandal points up the industry is upagainst more than just the CarterVolcker economicsteamroller and has been for some time The environ-mentalists who rst assailed the livestock industry severalyears ago with their "Unnished Agenda chargingthat it was wrong to feed grain to animals instead of

people are behind the DES hoa today It is ironic tonote in this regard that the effect of DES and otherhemical feed additives is to sharply increase feed e-ciencyestimates are that the use o f DES alone saves atleast 7 7 billion pounds of feed annually !

According to the Council for Agricultural Scienceand Technology since 1 94 approimately 90 percent ofthe feedlo cattle in the U S have received either a one-tim treatment with the hormone normal ly in the formof a 2436 milligram imp lant in the ear of the animal thatis slowly absorbed or have been orally fed 10 milli gramsof DES per day Under procedures approved by the FDA

rior to July 197 9 the DES implant or ration was to bewithdrawn from the animal within a certain period beforeslaughter in which case no trace of the hormone issubsequently found in either the muscle o r the liver of theanimal

DES was rst targeted when a rare type of cancerdeveloped in the daughters of a few of the women whowhen pregnant years earlier had been given DES bytheir physicians in doses up to 300 milligrams per day inan attempt to prevent miscarriage Then in 1976 aUSDAFDA analysis of 18 beef livers showed nneviolat ions of DES residue standardsin these nine cases

the liver contained 0 to 20 parts of DES er billionThe panicmongerers were off and running But look at the facts At 2 parts per billi on one poun d

of liver would contain only 001 milligram of DES 3th of the daily dose o f 3 milligrams once use toprevent miscarriage If DES occurred at a concentrationof 2 parts per billion in all beef liver a woman wouldhave to eat 26666 pounds of liver to obtain the amountof DES 24 milligrams contained in a single "mo rning-after b irthcontrol pillan eatingjo b which would take170 years at the annual average rate of beef liver

EIR July 1 980

consumption in the U S ! The daily estrogen dose in oralcontraceptive agents now used by 3 percent of USwomen of reproductive age is several million times thedosage that those women would receive from eating liverfrom animals fed DES

Medical studies have shown that the cancer risk frombeef production using implanted DES is less than one

case per 133 years in the US population and otherscientic studies have concluded that the risk is effecive-ly zero

Facts notwithstanding the FDA banned the use ofDES i n cattle and sheep in 1 979 on th e grouds th ssafety had not been proved This was acomplshed yrst disqualifying the analytical method that had een inuse since 196 3 to monitor for DES residues Without anapproved method of analysis DES fell uder the prv-sions of the Delaney Clause a muchdispued lw underwhich "potentially carcinogenic substances such as feedan food additives can be outlawed Beyond the scientif-

ic fraud and regulatory sleight of hand there is someevidence that the FDA acually set up producers fr herecent hoa by accepting withou comment their peiions to use the rest of heir DES sup les

Actually an operation to ban all feed additivesotj ust the hormonal supplements like DES but subther-peutic use of antibiotics such as penicilli as wella-pears to have gone into gear at the very eginnigs of helivestock indus try's takeoff

An early 1960s investigation by the Swann Commit-tee in Great Britain poined to the dagers of promoingantibioticresistant strains of disease with subtheraeutic

use of antibiotics i n animal feeding and as a coseueceuse of antibiotics i n feed addiives was put on a rescrip-tion basis in Briain Several years later in Britain severlhuman deaths were attributed to transfer of an nibitic-resistant strain of disease to humans from calves Inthirty years of concentrated use of antibiotics in aim lfeeding in the U S there has not bee one such alleedcase

et the British Swann Commitee and relaed nd-ings seem to be a principal pillar of preceden andscientic authority for the FDA's current vigorous ef-forts to outlaw a ll subtherapeutic use of antibioics i he

animal industry Congressmen Dingell DMich ndWaman DCal with the apparent support and en-couragement of the Bureau of Veterinary Medicie'sCrawford are pushing a bill now that would streamlieFDA powers to do away with al sbthereutic use ofantibiotics in feed Among other things the leislationwould do away with the need for evidentiary hearigs insuch cases and would automatically supersede ll exising law and or approvals in these matters Accord oFeedsuffs reporter John McClung Crawford semsmain ly concerned with mak ing the law stand u in curt

Economics 9



g bk backL J Vk

.. agu of Savgs Assocatos rougt sutJu S agast Fdral Rsrv Carma Paul Ackr ad t Dpostory Isttutos DrgulatoCommtt (DIDC cargg tat t ruls t Commt- ad adoptd May 28 ar llgal ad wll sh off theatos omuldg dustry

agu whch rprsts 0 savgs ad loasocatos wt arly 6 llo dposts ldwat o akr dscrd as a "war coucl mtgf 600 S& akrs Washgto J 242 adrs t Savgs agu also mt wt Fd Carma Paullckr wo told thm h tds to "rdustralzemrca t 80s ad lav ous to th 90s

olckr formd th akrs tat would otudg from s posto ad mpld that s masursad "mltary mplcatos " Ar mtg wth lck -r ow I kow wat you ma y tat artcl Is teds olckr actually sa? o savgs akrtold

oo or alls Savgs agu sut s s as part of a ato-

wd campag to op a pulc dat o why olckrad drgulato commtt ar dlratly adulatrally lmatg Amrcas housg dustry sut as od y th atoal Assoca to ofm uldrs ad ma y supportd y t atoalcato of Ral Estat Brokrs costructo sup-plrs ad costructo trads uos

W ar gog to gt ts to t h d W av tor t ousg dustry wll go dow ad th treavgs ad mortgag dustry wll go wt t sad oWstr savgs ak prsdt "Ts st lk Crys-r gog udr ts lk v Chryslrs gog udrs s t atos largst dustry

10 Ecoomc

O May 28 the Depostory Insttutos Deregulato-ry Commtte (DIDCwthout the normal perod forcommt rqurd for regulatory agency rulemakgssued a set of rules whch elmnated most depostnterestratedfferentals between savgs ad cmmer-cal anks The rules wll eforce "downsde dsnter-medato or cotnued dra from the deposts at thesavgs aks

Rule 0008 of the DI DC allows commercal banks toroll over ther estg Moey Market Certcates(MMC at the same nterest rate as the savgs aks

through ovemer 30 Smultaneously there s a 91 /2prcet "mnmum celg on 30month Specal Sav-gs Certcates (SSC ssued y the savgs anks It sestmatd that the comned effect wll e a dra of atleast 17 llo from the savngs anks n the comgmoths Ths wll however enhace the commercalaks alty to roll over ther estmated 46 llon nMMCs fallg due n the net s moths It wll alsoensure that new mortgages must be ssued at 0 percenor gher

Th housin picturFed Charman lckers terest rate bge ths

sprg has meanwhle reduced housg costructon tothe lowest levels snce the Great Depresso I ay1980 housg starts were precsely half th level of theyear efore ad thy cotue to fall Davd Stahl headof th atoal Homeuldrs stmates that y th edof ths year 16 mllo workers housgrelateddustres wll e unemployed

The "V lcker sprg also eacerated the naton-ary puses the housg dustry that had eaccumulatg sce 1977 In the perod etwee 1977and 1979 before the olcker nato the average

ER July , 1980



monthly payment for purchasers of new or used housingrose 38 percentnearly 20 percent a year

By March 1980 the annual income needed to buy an"average home was 34300 In California the re-quired income was estimated to be over 0000 etthe average household income nationallyincludingsecond and third incomesis only 20000 a year

As a result there has been a huge drop in mortgages

issued Robert O'Brien President of the Carteret Sav-ings and Loan in New Jersey reports that the normalrate for his state is 36000 a year but the present rate is90 One medium siz ed S&L in ew ork City issuedno home mortgages at all for nine months concentrat-ing instead n home improvement and "energy savingloans

S&Ls trappedThe desperate inationary squeeze on the housing

industry had prompted many savings and loan bankerto support the Reuss Omnibus Banking Bill passed

March 30 which created the DIC in the hope thatthey would survive by gaining access to functionspreviously only allowed the commercial bankstrustaccounts Negotiable Orders of Withdrawal and regu-lar checking accounts

The DIDC then pulled the rug from under the S&Lsby equalizing interest rates before they could diversifyA disastrous liquidity squeeze has ollowed

Senator William Promire DWisc a strong ad-vocate of eliminating savings banks has pending incommittee his "failing bank legislation which wouldabrogate the McFadden Act ban on major interstate

bank takeoversAccording to David Cohen of Schroder Bank inew ork the "onebanking system is not far away"The only S&Ls le will be the rural ones; the urbanS&Ls will either become "family center banks or gointo a bro ader mortgage market that includes commer-cial and industrial real estate

Such "family center banks however with manyfewer branches and less epertise will fall easy prey tothe moneycenter giants like Citibank or Bank of Amer-ica while mortgage institutions enter competition withmortgage trusts and insurance companies Cohen esti-

mates that 10 percent of the SLs will be mergedacquired or will fail by the end of 198 1 A special report by the Executive Inteigence eview

ocuments Citibank's leading role in shiing the econ-omy to a lowgrowth "service orientation over the pasttwo decades and the bank's clo se coordination with theregulatory agencies in pursuit of the "onebankingstrategy Now available for 20 the report is titled"Citibank Strategy for the 80s: Restructuring the USBanking System For information call ER at 2122478820

EIR July 1 1980

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IlCit ene Sigerson

Eu b

e EMS is informay prooting trade and investmenttroug corporate nance

e Frencgovernment ownedElectrct de France ssued a Eu-rocredt of 7 mllon ts weekwt an nterest rate of 3 percent

over bor Te Euroloan managedby France's Crdt yonnas tetrd most actve bank n Euromar-ket syndcatons s beng oered atte lowest nterest margn to t teEuromarkets ts year

Te EdF loan s te latest e-aple of a lownterest strategywc leadng bankng nterests nFrance and West Germany avedesgned for top European corpo-rate customers Petrodol lar nowsto te contnent ave facltated

tsTe move toward lower nterestrates s beng prmed on a dalybass by te workngs of te Euro-pean Monetary System te curren-cy stablzaton program mple-mented by te Frenc and WestGerman governments n 1979 tocreate te bass for a new nterna-tonal monetary system Fr m teoutset Cancellor Scmdt andPresdent Gscard made t clear tatter goal was to cannel "surplus

nternatonal lqudty into mod-ernzng and epandng contnentalEurope's indstrial base and open-ng up new longterm trade

Te benets te EM S offers Eu-ropean ndustry are ndicated byte following

In recent monts te SwssCentral Bank as worked towardssettng up n formal assocate statusn te EMS Ab out si weeks ago

12 Economcs

te Swss and West German centralbanks agreed to lnk ter currences troug a de facto ed partyagreement As a result West Ger-

many's largest frms are borrowngs ubstan tal seventotw elveyearfunds from Sws s banks at prevalng Swss domestc rates wc aren te 7 8 percent range

Tese loans ave elped WestGerman rms suc as te Mannes-mann ppelne manufacturng com-pany to consoldate major dealsTs week M anesmann was award-ed a 340 mllon water ppelnecontract by Saud Araba

Wen Cancellor Scmdt an-

nounces te results o f s justcon-cluded trp to Moscow Mannes-mann and related European rsare epected to wn multbllondollar contracts for Sberan devel-opment nnced by Germanledbankng consorta

ower European corporate -nancng costs ave also facltateda seres of dramatc acustonsand mergers partcularl n te autoand steel sectors Mceln Tre foreample as sold o ff ts 0 percent

oldng n KleberColombes to asubsdary of Germany's BayerCemcals Mceln wll use tefunds to nance epanson plans nNort and Sout Amerca

Peugeot and Fa t are negotat-ing a major engineering jont ven-tur wc wll ntegrate ter opera-tons worldwde Otto Wolff steelwic also represents te uem-bourg steel gant Arbed as just

purcased a growtorented agrcultural equpment supply compa-ny n Houston to enable t to e-pand Amercan sales overall Dem-onstratng Arab condence n Eu-ropean basc ndustry Kuwat an-nounced ts week tt t ad justpurcased 14 bllon n equty nVolkswagen Brazl

A recent Neue Zrcher Zeitungreport on frstquarter 19 80 currentaccounts settlements by EMS mem-

bers empaszed te epanded netludty avalble to Europencentral banks Te reason s eupvaluaton n ter gold reserveswc under te EMS takes plcetroug European Currency Ac-count clearng every tree monts Te potenta l for furter longtermlownterest lendng s correspondngly epanded

In contrast to Europe's effortsto use lownterest loans to bolsterand protect ndustry n te face of

te worsenng US depesson An-gloAmercan banks are stckngrm to te old game of tryng toattract nternatonal captal owswt eorbtant nterest rates

Wt returns of 116 percenton Brts glts te Bank of England njected £ 700 mllon tsweek nto te U K bankng systemto nance te latest round of gov-ernment paper ssuance Manufac-turers Hanover as just opened afull operatng branc n te Can

nel Islands to market sorttermcertfcates of depost CemcalBank announced te rstever ssueof a iginterest certcate of de-post denomnated n SpecalDrawng Rgts te InternatonlMonetary Fund basketnumerarets week wle Morgan Guarantyand Ctbank are on a bg pu tmarket CDs n Curaco and teCayman Islands

EIR July 1 18



NW

Cos

6 mn

20mn

190mn

644 mn

0n

2 mn

50

04

rincipals

Mexico from US

Meico from US

Sain from US

Jorda from US

Meco fro UitedKingdom

Thailand from US

Iraq from Italy

US from Japan

Canada fro US

US China

ay US

CANCELLED DEALS

US fromest Germany

EIR July 1 1980

rojc/Naur o Dal

Ford is buildg a Mexica plat tproduce 4-cylidr egs, s which will be eprtd to US i change for crasd Ford parts iports from the US

Chrysler Corp is buldg a $ gie plat i Saltll; $35 dl; ad a r at fpadg t truck prct

Ibera Airls has rdrd thr747- B arcrat r Bg

US divry f aut r proplled 1 m ad ght-ich atl

lery pcesPx puchas Bh tqupt ad srvc

Thailand wll receive M4 taks

Saprogtti wl bud a ry atBaij whch wl prduce 50, trcts of lubrcats pr yar

K Hattori & Co, Ltd, th kyasd part Sk, wl stabh aquartz clck asly pat i th USby the d of th yar

Pacc Wstr Airl (Cgy, Albrta) has rdrd tw 737s frBig

Three Chinese industrial rms willmanufactur basketballs, soccr balls,and volley balls for AMF, Inc.

Ingersoll-Rad will supply () nineheavy-duty gas turbine compressorunits for the Hungary Oil and Gas

Trust's natural gas pieline system, and() will supply compressor and oterequipment parts to the Ganz Mavagworks of Budapest, which will buildand export natural gas engines

Volswage has caclld ts pla tbuild a egi plat th US adwill istad rly prducto r itsPuebla, ico g product aclites

icing

$50 ct byBtsh adca akydca d yBag Brs

mmt

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to Cogss

Ptag ltro tcatto Cgrss

Agrtrachd wthSCOP (statowd)

-yearcontract signed

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�TmSecRport

C h ines e-m od e l

g o c i d e:h o v s happen ing in ran

oe Drefuss

lmost as soon as the Iranian revolution had seured its bloodyp on Teheran in 1 979 speulation began on whih ountry would beomet next Iran . Throuhout the uslim wold ountry aer ountry foundtslf ben ompared to Iran. Turkey Egypt raq Saudi Arabia Pakistante Phlppines leria selfprolaimed speialists in sl am issued foreasts

th alleed insghts into the qualiation of eah of these ountries tobcome an importer of the perverse gospel of the Ayatol lahomn. Outsde the uslim world states suh as eio were often men-toned as plaes in whh the Ian treatment would opple governments.

Suc rpots are not idle speulation. The gentlemen behind Khoeiniand the Islam Republi of Iran do indeed intend to eport the Iranianvoluton. During the entire deade of the 970s the Club o f Rome thespen Institute the human rights organizations Amnesty Internationaland the andt C ommiss on developed a strategy for dealing with what theyuphmstcally called overpopulation. Committed to prevent the indus-talzaton of the developing sector the Club of Rome and its assoiatessout a method to brin about the elimination of one billi on people in the

socalld Thrd World. That could only be aomplished by effeting aoanzation of society in the developing setor away from the itybuild- uan industral outlook whih had aptured the aspirations of theboad mass of the population; in its plae must be put a soiety organizedalon the lnes of the feudal Chinese ivilization. This development modelcame to be called the China model applied with grim eeny by the PolPot ime in Camodi a.

Thus Iranin order to better tet the viability of this strategywasturned into a lifesize laboratory for eperimentation in the appliation ofthe China model. As inredible as it may seem everything that hasocurred inside Iran was the result of a arefully ontrolled p roess of dein

4 Speial Reort IR uly 980



dustrialization ruralization and systmati liminationof th produtiv apaity of what until 1 978 had bno of th most prosprous nations in th dvlopngstor. Soiologists soial psyhologsts spialists inpsyhologial warfar and ultural anthropologists in

th mploy of th Club of Rom an d th Aspn Insttuthav minutly studid th daily disintgration of Iran'sonomyand th onomtant xprssion of insanityby its populationto dtrmn whthr or not thxprimnt was a suss.

iz labrtryTh nal rsults ar not yt in. ut as xmplid

by Univrsity of Chiago Profssor arvin Zonsawllknown ran xprt for AngloAmrian intllign with a spal xprtis in psyhologyth vrypopl who partiipatd in th ration of th homini

rgim ar now monitoring rports of its p rogrss.Th following rport by th Executive IntelligenceReview iddl East spialists doumnts rst thdvastation wrakd on Iran by th ghtn mo nths ofrul by homini and th mullahs; in that short timth dvlopmnt ours of an ntir nation has bnrvrsd . Sond w doumnt th poltial mhansmthat stands bhind th onomi zars of th prsntrgim as typid by Prsidnt Abolhassan aniSadr.Thr is littl doubt that Iran undr th Chna modlhas bn brought to th vry brink of ollaps mass

EIR uly 1980

In is section

Ths Spal Rpo rac an n yRort yfuss, Ju Wy an a uman,undr th iron of . Dyfuss, s ast Eitor. r. Dryfuss an s saff hav nintrnatonal pomnn fo t pscn anlysof th Irnan szaon, nnn fo Fbruary 1979 voluon at rou sam fundamntalsm to po, an fun s ovmr 1979 publaton, T Sc n Ayaolah homn , hh a a s amon nungovmnt an ot ls aroun ol.

Ths Spal Rpo connus s xclusv v

rag. It nlus

The sow death of Ir's onomy

by Juth Wy

What Khomeini has doyby Rort Dryfuss

How the Oub of Rome pann Ir's devasainby ark urman

Spal Rpo 15



starvation and exeutionsgenoide. Nor is there anydout that suh a result is the delierate poliy ehindthe AngloAmerian oligarhy as represented y theClu of Rome and its appendages.

Ideolog icl reorienttionf the ranian experiment proves suessful the

lessons learned there will e applied throughout thedeveloping setor to implement the New Dark Agesstrategy of the AngloAmeran elite.

So far there is no dout that ran has proved atleast part of the ase namely that a moderizig ationommitted to growt d hightehnology development from steel plats and nulear power to modernagriusiness and omputerized ommuniations systems an e redued to haos almost overnight. Whatis not yet entirely proven is that the population of thatountry an e easily roken from their ommitment tothat outlook. For that the onspirators in ran requirethe imposition of an ideological eorientation in thepsyhology of a populto.

As examined in a previous EIR report (The Aquarian Conspirays Road to Orwells 1984, ay 13,1 980, the key t o the AgloAmerian o ligarhys ailityto ring aout the needed shi is the attitudes andelief strutures of a target population. These must ehaned y areful manipulation of the ideologialweaknesses in the psyhologia l prole of the itizens ofa nationstate i n a way that opens up their suseptiilities to an antiindustrial revolution. n ran the ultaspets of the radial Shiite eliefsstudied y ritishintelligene speialists for a entury or morewere usedto moilize ignorant and akward peasants as shoktroops of an army whose wathword was antiWesternization.

For ran the ommand enter of the slami revolution was the network of the uslim rotherhood(khwan alMulimun) Estalished in 1 929 y the ritishSeret ntelligene Servie in smailia Egypt the khwan grew rapidly and extended itself into ranhes inmany other uslim ountries inluding ran. Everywhere its ideology resurreted the anient ult pratiesof preIslami Araia nd from the slami period thekhwan drew upon the works of the reationary anti

siene urrent of AAshari and AGhazali. Sine itseginning the khwan has een used y the ritish toountervail against the advoates of industr ialization inthe slami world equating tehnology with theWest and then suggesting that some sort o f Islamitehnology appropriate to that part of the world is allthat uslims an aspire to In the nited States thefront group of the khwan is the uslim StudentAssoiation out of whih virtually the entire presentleadership of Iran is drawn inluding S adegh Ghotzadeh Defense inister ustafe Chamran (who is also

16 Speial Report

the hief of SAV A A the seret polie) rahimazdi and o thers.

In other countr es, it is the same. In Mexico , forinstance, Jesuit priests and the feudalst Monter reygroup have developed a Liber ation Theology" assaultaga inst the materialistic " natur e of Mexican society,using ancient cult practces of Aztec culture as the organizing principle for rallyig suppor t fo te China

model there.

The Aspen roleThe ran Prot of te Aspen nstitute whi

onvened the 1 9 tertoal oferene i Persepolis ran wa s proaly te sle most important amongthe ongoing efforts to prepre the tion of ran for theslami revoluto. ve its ommitmet to ringgaout a shift i atttues from the material to thespiritual the Aspe stitute was involve in nearlyevery aspet of spooring the revolution. ut what isnot widely known is that at the very pinnale ofgovermet a te Plv ourt r were lediols who ollorte dctly wth the onspiryto topple the Sh .

Sie his fll te Sh has expressed hs shok andsurprise that oe of s losest ssoates and formershoolmates General ossein Fardoust who was givenresponsiility for preparing the Shahs d aily intelligenerief was seretly a supporter of the homeini revolution and now oupes an important post in theSAV AA homeini s seret polie.

ut y the sme token ledig ranians suh asSayyed Hossei Nsr ad ushang Nahavandiandeven the Shahs wife Empress Farah herself!wereintimately assoted with the onspiray whether ittingly or unwittngly ad it was they who opened thedoors for the Sa reme. fat Empress Farahthe Shahanou provided millios of dollars in researhgrants to Roger Garaudy a Frenh leist with links tothe Clu of Rome and his hief assoiate AolhassananiSadr!

The results to dteIn a series of exposs se 199, the Executive

Inteligence Review s provide exlusive information

on the internatonal apprtus that toppled the Shah.While Henry ssingerwhom the naive Shah stillefriendsasserts that rns revolution was the resultof too rapid inustria lizto fat wat happenedin ran was the reslt of dret Carter administrationsupport for a rit shdieted operation to destroy ranfr reasons havin to do with geopolitial poliy. Asearly as Feruary 1 99, EIR wared what would e theresult o f the suessful osolidation o f power y theAyatollah homeini ad his assoiates. n the follow-ing we present the sum of that result so far.

ER Ju ly 1 5 , 1 980





A Carter Administration source this ek commend that hile BaniSadr and homeini are stll commited to a rural based economy, they have met ith unx pcted resistance ithin the population . In the rst xmonths folloing the revolution, he noted, "hominrid to enact this ruralization plan but he backed oh he sa that he as not poitically stron nough

ht time to overcome his opposition. he probfcing the revolutionary govenment i s that as it endvored to "eliminate oppositio it continued to dlay onits agricultural plan . As a result ther has n a massivinux of rural peasants in to the cities.

No, observed a Middle ast anays, the hostcrisis has further complicated the siuation, since hvolutionary governmnt is ooking for revenues frooil production and assista nce from certain Wesern inrs to aid in its ruralization plan . Neither are at presnvailable. It is estimated that this year Iran's oil exportarnings plus remaining foreign exchange ill j ust cover

th groing import i or vital commodi. Ahat? A State epartmen source concurd, ma"the people ill j ust have to be starved out of the cities.

Dstrying th lbr rcike the Pol Pot regime, homini ha ma hi

r poitica target he eiminon o h mo avncd ayers of Iran's intllignia and or orchough political prsecution an ouright xcuion.h are the individuals ho r educad n d cu-d to bcome hat one Iranian ourc tr hnd of I ran. A m anfestation of hoini's p oiiclror campagn has been a miv xodus o Irn'uran elite. Accordng to a . S. partment of o-rce source, as many as 6 mlion may hve Irnnc the revouion. he source chractriz h xo a a "disaster for Iran in hich h u o hcountry are eing ripped out. xied ranan sourcpu he Commerce eparment tim, puinh numbr o f emigrants at somhr n 2 o iion. he rmining ducad traa ar in ny cncraingly excuded rom hat is left of uin novrnment functioning and deciionmaking.

A Georgeton niversity profor h co io he homeini regime detaild this month pnvord y BaniSadr to coply pur h rnnovrnment ureaucracy, hich sil conin rnnof an from the former rime as as mi-c opponents of the homeini dictaorhip, nnl young radicalized coege studnts. h oucd hat homeini intnds o forc th "ary rirn of anyone employed y th govrnen ovr rs old.

n line ith this scheme, it as recently announchat eginning in September all of Irn' univrsii

18 Specia l Reprt

closd, ostensibly to undercut groin rivn gin homeini. But the real story behind thcloing has to do ith utilizing the students as the shockroop of the "back to the land deurbanization plannr nvsions. he Georgeton professor adh un l oon e conscripted into a n on o ner Service. he prime functioning of th NS

"to d he march out of the cities, he d,n ht "th regime is insisting that uranornnn comprise h adership of this movemen.

nc his id for the presidency earir hi r,ni ha en th only poli tical personlity ih aporm for Iran's economy. his contingn ofn p or h NS has been subjec or o rinhing on Iranian and foreign campu

w I' It could take up to ve years to repair the damage doneto Iran's oilels since the February 1979 revoluion.his is the conclusion of both Western oi indstrysources ith knoledge of Iran's hightechnoo oilxtracting system and of Iranias ho orked for theNational Iranian Oil Company (NIOC efor therevolution. At present Iran is selling daily a agr2 barrels of oil compared ith the to 6 milionarres per day marketed internationall befor threvolution.

he reasons for the precipitous decine in Iran's oisaes are oth technical and economic. ack of killedmngement and labor to maintain and opr thlds means that at present Iran can sustan ary over1 . milion b arrels per day. Pror to the revolution, heNIOC had egun to install complex gas injection ystms in the oder els to keep the pressure high enohto permit continued pumping. his procedure reuiressome of the most advanced technology in he olindustr, not to mention ualied technicians. Fooing the rvolution, ells ith this technology ereaanone d. he pressure in those ells ha decrasd toth point here they may no be orthless.

Iranian sources indicate that many of the el arsiting up for lack of maintenance and n mayhave to be dug in order to resume productio n. Furthermore, Iran's entre ol industry as regulated b one ofthe most advanced computer systems in the or. hisystem has fallen into disrepair .

R July 1, 190



around a zerogrowth antiWestern ideology coherentith BaniSadr's stated purpose of "creating a classless20th century Islamic society.

Fiy percent of Iran's population is under the ageof 9 It is the youth of Iran plus millions of illiterateIrania slumdwellers and peasants that make up thereurntotheand movement. A recent article in Ette

laat Javanan noted one means by which the urbnIranian population could be "induced to leave thecities. It recalls that during the medieval Abbasid cali-phate Iranian farmers who came into the citi es for seedhad their hands tattooed and could then "be forciblyepelled by the authorities. According to Irninsources the Iranian press has now increased its propa-ganda campaign around deurbanization.

he current low level of Iranian sales is also the

result of eorbitant prices the evolutionary Govern-ment has asked of its few remaining customers . Follow-ing a bid of $3 a barrel this spring apan one of Iran'stop customers walked out on cotract negotiations.oyal Dutch Shell and British Petroleum followed suit.Another lastditch customer umania stunned theNIOC earlier this month by cancelling a 66000 barrel-aday contract becase Iran's price was considered toohih.

Industry sources say that as a result of the salesfalloff Iran is quietly lowering its prices. This wasonrmed last week when a number of OPC oil

producers began to raise their price commensurate withagreements reached at the last pricesetting meeting.But Iran made no gesture toward a further price hike.Iran has increasingly become dependent upon oil salesto hird World and ast bloc countries transactedthrough bartering for needed vital commodities andfoodstuffs.

According to a Washington source Iran's contro-versial Oil Minister Ali Moinfar is "only a gureheadfor the real power that runs the remainder of the NIOCAyatollah Eshraghi Khomeini's soninlaw. shraghiengineered the purge of former Oil Mi nister Nazih who

was responsible for the initial upturn in Iran 's oil outputbeginning in March 99 Nazih's ouster in October99 marked the high point in postrevolutionary oilotpt. Since then repeated purges of the IOC staffhave occurred. This week the evolutionary Counilpurged another 00 workers and managers from thecompany.

The sitation in Iran's oilelds has een furthercomplicated by the increased violence in the oilproduc

EIR uly 980

Conservative estites put uneloyen over 4 mill ion . ducted citydelers nd skil ld borers have turned to n increasin consuption o opiu.This has occurred in prt becuse the Islic reiehas b anned alcohol, nd becuse rers re urnin ocultivation of the poppy, hic brins i prot onboth forein nd doestic rkets. Te

reported recently tt tere re e 2 iioopiu addicts in Irn, ith jor increse in diction since the revolution. enorceen sourcindicate tht heroin ddiction s ron s el in Irn .According to an Irnin recy returned ro Irn,"the remining literte nd sensible Irnins eel rp-ped. Their own expecttions re diin nd ey rleft with no alterntives but dru teelves. r

Iran oil productionB h 1979 v

Gross output (mbd)*

6,0

5.0

4.0

30

20

1.0

.0

9/1978 1/1979 6/1979 1/1980 619

Deduct 0, bd for domesic Iranian oil consmpin om oalo get export otal Domestic consmpi on has declined o he 50,bd level since the revolution.

Setember 8 marked he beginning of ssained revolionay

vioence leading to Khomeini's February akeover

ing Khuzestan district. There have been countless in-stances of sbotage of pipelines. Moeover, spre prtsurgently needed for the Abdn renery re no inshort supply, making uestionable the future vilbii-ty of needed petroleum products for Irns own does-tic consumption.

pecil Report 1 9



ry any opum n he counry eore he revouon;no everyhere . . . remn me o ha herh n Chna n he as cenury. You ook a popuon, hey ju h an ach hecounry en eroye, hey ecome pocay p-ve. h h hppenn n Iran .

nr reporey avor he "Chna moe or

en h he expann opum pue n Irn. heovrnmen ou mner ma y oe oopum o he ac a mehaone rue n he.., ezn n kn over he ucrave ackmrke o ru rc oh nse an oue Ir an.

he r rke y cv ervce orker erupe nIrn h eek n proe aan cu n pay anne. even houan empoyee o eheran' aeror ae a sn o he cy waer oard's ceraoce aer he orkers were od ha her housnoance and oher enes were en whdranrom her ae. Reuer repor ha cv ervce

orker n Iran are no oner recevn overme ene- n n ome caes are akn up o 0 percen paycu. Accorn o Amercan ankn source, Iran haeuae reerve o manan he payscae o he aempoye orkorce. he sudden and drastc cu in pay,ccordn o anayss amlar wh Khomen's deur-nzaon campan, s aimed at "reakin he puc

'Move them outof Teher

The following are excerpts from an essay by Bani- Sadrenti tled "A Solution for Unemployment , published onOctober 21 , 1 979. Bani-Sadr calls or he "shrinkageor "retrenchment rtrcssement in French of Iran

and other cities "Shrinkage of cities is part of theClub of Rome's post- industrial policy

he reme o he exhah tried to remedy the ara-vaon o unempoymen y . . . ways ha ed o arown aravaon of the economic criss. he so-uon o he probem led to the appearance of otherprobems such as he cancerous enargemen o ciesthe rowh of consumption the abandonment o the

20 pecial Report

eor. I he er orker remain on rke or n, cou creae a crss n eheran, nce mny o hereervors are now depeed. MdJuy one o hehoe monh o he year n Iran.

Industril shutdnIranan nura oupu emae o e 1

pern o preevouonary eve, h major prouc-ve ecor, noay mnn, ma appance manuc-urn, an ee proucon, a a near a. eonon Financial Times repored June 2 ha a heAorz Inusr Park oue azvn, e o ehern,ony 1 o 1 2 acores are curreny operan. Aorza o ne of he ormer reme' mos amou nononusria deveopmen projec; he hah houh ohave nvesed upward of $20 on n manuacurn nmore han 2 venures, he m ajory o whch are nocondered worhess.

Whn sx monhs aer he Khomen akeover, he

coape o major nura deveopmen projec, n-cun o arecae nucear poer eneran con-rac h France an Wes Germany , a emae ohave s avancedor nveors n Iran upwar o$0 ion doars. By he end o 1 979, he Revouon-ary Counc had p ropoed convern he coon erfor he o We Germanu Buhre nucear pan

counryside, and the decrease of aricuure and n-dus ra produc ion . . . .

We have many mes drawn aenon o he danero he rowh o eheran and of wo or hree ohercies. oay everywhere n he word, such ce havebecome hreaenn, ke a danerous and mainancancer. In he ndu srazed counres he are cies,ceners o acivy and producion, have ecome dan-erous. I n ces ke os Angeles and Tokyo, t s evendcu o reahe and one o he uran servceinvove an asphyxiaon caused by he increa-ing pou on o he ar. In our counry, he are cetha consume wthou producng ousde o the dan-gers o he are producin cies r sk provokn hedsappearance o natural resources and a rapd eco-nomc deah. Insead o extendin to hese cties andpromsing them consruction etc. wha s reure sto eaborae he pan for teir shrinkae to reaze hsby creatin he awareness o her daners and anopnon unfyng the executors o his pan, o makethe peope themseves kno in such a way hat hsshrinkage can be synchronized with the creation ofrural indusra complexes . . . . Decenrazaton wibecome the bes guaranee o potica bertes . . . .

IR Juy 1, 1980



into wheat silos. The uestion currently facing theregime is whether in one year's time there will even beadeuate wheat, given the chaotic state of Iranianagriculture.

As a resut of the industrial collapse, Iran 's tax basehas completely dried up. Another important source ofgovernment revenues, tariffs from exports and imports,

has also suffered a severe decline, drying up revenue forgovernment function .According to U.S. epartment of Agriculture

source, the departure of Iran's most gifted managerialand scientic cadre has posed marked problems for teIslamic regime. ast month a delegation of Iraniangovernment ocials visited New elhi to drum up tradeand inuire into the possibility of India provid ing badlyneeded knowhow to maintain baseline functioning ofsuch vital economic centers as Iran's decaying oilelds.India made no commitment to aid Iran on this front .

At present the government bureaucracy amounts to

what one Washington M ideast watcher termed a "giantwelfare ofce. The government i s handing out var iousforms of welfare subsidies to the swelling ranks of thenemployed.

But increasingly, even the governmentsubsidizedincomes of paticularly Iran's poorer families is inadeuate to meet the soaring cost of vital necessities.Ironially, the plan to make Iran less dependent uponimports in the short term has been unercut by anincreasing dependency on imports due to the collapse oflocal production. As a result, Iran's black market hasbecome the major vehicle for imported goods, primarily

through the Arab emirate of ubai across the PersianGulf, and to a lesser extent Pakistan.The immense ow of trade into Iran through these

entreps indicates that the embargo Carter calledagainst Iran earlier this year has little effect on theavailability of goods. However, this development hassparked a explosion of ination. The value of theIranian cuency has gone from its prerevolutionaryvalue of 70 to the dollar to over 10 to the dollar withan even lower dollar value relative to the dollar on theforeign exchange market. The Iranian riyal today isconsidered "funny money internationally.

The Teheran Times reported une 2 that the spiralingcosts of imported goods plus domestic ination has"created enormous diculties for slumdwellers andpeasants. eports from Teheran indicate that rentlylowincome housewives have formed gangs and raidedmakets of vital foodstuffs. Periodic shortages of foodsand commodities have also emerged. According to aTreasury epartment ocial, there is no reason forIran to experience ny severe shortages s ince he centralbank is estimatedo have $8 to 10 billion in reserves.The source report that the regime is deliberately creat

I uly 1, 1980

The Islic prgein Iranin edcation

In une, an advi ser to Iranian President Banspoke at the annual convention of te uStudent Association, held this year in OxoOhio. The adviser, Mozaar Partowmah, peto eliminate from Iran' universities "al the ndels. "A fter that, he said, "we will move o ceout the high schools and elementary scoo .

The systematic, schoolbyschool purge encaried out by the homeini regime is a key feaof homeini's larger policy commitmen to eothe education system, and with it the min of Irn

All universities have been shut down for nindenite period unti l they can be purged o ern tendencies and made "more Islamic. Iraneputy ducation Minister Mohammed Jawaja layn says the universities may remain hut foas long as two years. Other sources say that veyears is a more realistic gure. " Purge committehave been formed in each university to boo othose students and pro fessors who are not "Ilic enough. Hundreds of professors in eheranhave already been axed.

A new Islamic curriculum is being impoe on

all th e univesities and schools to "safeguar Inyoung against deviation and decadence. e curiculum is expressly designed to brainwash Iran'younger generation into an anti science, anecnology, fundamentalist world view. itoy ebooks are b eing rewritten to eliminate al reerence

to the accomplishments of the Pahavi dynay nthe Shah . I nstead of studyin literature and ancienhistory, gradeschool children are taught o minlessly repeat such chans as, "homeini, omeini, you are light from God.

In une, homeini appointed a sevenn

committee to cleanse the country's education tem of all "imperialist inuences let by the ogovernment. "The continuation of thi ae endency, which is an unfortunate catastrophe, i heobjective of foreigninspired elements, sa i omeini. "The is a deadly blow against the Isaicepublic, and any negligence in the proper carryinout of our education eforms would be outrigtreason against Islam and o ur Islamic republic.

Specia Report 2



ing certain shortages in what are considered luxuryiems in order to accustom the Iranian population "toliving with less

Te myt o agricultural sel-suciencyA Khomeini sympathizer in the United States pre-

icts that the regime over the next three months willphase out all eat imports on the premise that the"majority of the Iranian people are not used to eatingmeat so why shouldn't the entire country get used to ameatless diet? Financial sources report that the Revolutionary Council is considering a possible cut in govern-ment food subsidies as p art of an overall au sterity drivegiven the rapid decline of oil sales and d rop in i ncome

Such a move would leave millions of Iranians toen for hemselves in ob tain ing food and cou ld sparkoal chaos in the country

The big test for the current regime comes th is monthwhen the winter wheat cro is harvested Until now Iranhas had sucient wheat to meet consumption needsThe harvest brought in a t this time l ast year was plantedprior to the revolution and in late 1979 Teherancontracted for 1 million tons of Australian wheat tomeet the decit le by the million ton total Allevidence this time however indicates that the harvestill probably yield under the million tons needed forthe year ahead According to the Middle East EconomicDiget of Jan 18, both petty disputes over land titlesand high prices for governmentsupplied seed havehapered cultivation particularly in the northern re-gions The province of Gilan along the Caspian Sea ishe primry wheatgrowing area of Iran b ut there as inneighboring Azerbaijan restiveness has increasedagainst the central Khomeini government

Another problem affecting agricultural output inhe short term is a mass exodus of farmers into theciies Reasonable estimates are that Tehran's popula-ion has swelled by as much as 2 million since therevolution These new citydwellers have migrated fromthe countryside with high expectations that the newrevolutionary regime will attend to their needs andprovie the upward mobility for their children whichonly the city offers It is these new urban migrants thatare targeted for redeployment back into abandonedvillages to spearhead a "new wave of laborintensive

farming

Te mullah maa expropriates the economyThe ruling Islamic regime has moved uickly to not

only ake over most of Iran's remaining industry butalso to forcibly exproprie vast amounts of Iranianland An Iranian journalist reports that "if you are nota mullah [a Shi'ite Islamic priest or related to mullahyou stand a very good chance of losing your land toone of them they just walk in and take it B ritishpress sources report that the massive amount of take

22 Specia l Report

overs by the Shi'ite clergy has conributed seriously tothe lack of work for the labor force in Iran TheFinancial Times reports ha the Mustasan Foundaion(the Foundation for he eprived acts as an executivewing of the government in many nationalizations andthen utilizes the funds made availab le to the governmentfrom prots from various businesses to recycle to Iran'spoor

The theocratic leadership has also formed a newfoundation into which the Shah's expropriated wealthhas gone called the Alavi Foundation (Whether thename Alavi is meant to be a play on the formergovernment's controversial Pahlavi Foundation is notknown According to the June 1 Washington Post, thefoundation conrols hundreds of millions in revenuesThe Post also reports that the Foundation for theeprived at presen owns or has interests in "70 majorindustrial plants 2 large construction rms and 30trading companies in addition to an unspecied num-ber of farms houses hotels theaters nightclubs andpersonal property The foundation now controls thethree most inuential secular Iranian newspapers Kayhan, Ettelaat and Ayadegan.

uropean sources report that the leading religiousgures in Iranincluding the son and grandsons ofAyatollah Khomeinihave sent tens of millions ofdollars out of the country It is similarly Iranian moneylaundered through he Iranian Foreign Ministry whichwas reported by the Voice of Free Iran to be paid toformer Atorney General Ramsey Clark for the purposeof funding proIranian demonstrations and black na-tionalis insurgents

Opponents of he Khomeini dictatorship continue tobe terrorized hrough the deployment of fanatical Ja-cobin mobs A number of such deployments has oc-curred on Iran university campuses where antiKho-meini groupings have been brutally atacked by Hizbal-lah (the "followers of Allah a movement fundeddirectly by Ayaollahs Beheshti and Rafsanjan i Similar-ly Iranian sources report that most of the demonstra-tions which occur in Iran are pulled off by disributingfunds to s lumdwellers; this is how he mobs were calledout into the streets during and after he revolution

With a serious drop in national income resultingfrom the precipitous decline in oil sales the uestion

now is how much longer Iran can go on operating inthis economic mode If it does one Iranian with long-term experience in agrarian science stated with greatcertainty that rampant starvation will prevail in Iran"You just canno turn the clock back in Iran Thepeople have ased development education and thefruits of progress They will never go back onto theland no mater how bad things get They know thatIran canno be selfsucient without drastically lessen-ing their numbers They will ght and I hate to thinkj ust how bloody it might get

IR July 1, 1980



W K yUntil the feudalistclerical revolution that toppled theShah, Iran was on its way to becoming perhaps thepremier example of the process of industrializtion .

Oen, in interviews during the 1970s, the hh re-peated his hope that Iran would by the year 2000 enterthe ranks of the top ten industrial counties of the orld.

Though he was ridiculed for that statement by the noisyantiShah lobby, and though Irans on developentplanning was infested with secret collaborators o f Ay-tollah Khomeini, what Iran had accomplished before therevolution was an imp ortant achievement.

The driving force behnd Iranian industrializtionwas oil production, under the direction of the NIOC(N ational Iranian Oil Company, in 1 978 probbly thebiggest petroleum corporation in the orld . uring the1970s, the Shah battled the Britisdominate oil crtelthat for decades had controlled Iranin oi l. His refusl tosubmit to ondons terms for renewal of the 2year

accord that expired in 1978 was a crucial factor in thedecision of the British to bring down the Shah. In the lstear before the Shah fell, NIOC produced well over 6million barrels of oil per day. Construction s uner-way to expand output to 7.2 million. Current Irninproduction is around 2,000 barrel s a day!

Irans industrial development was at the tkeoffpointwith plant and euipmen that now lie in ruins.

Nuclear: In the eld of nuclear energy, I ran s fr naway the leader of the Third Wol. A stggering totalof 32 nuclear power plants were either under constructionor on the drawing boards in 1 98, ith most of them ueto come on line before 1990. France and West Germnyheld contracts to construct $30 billion orth of nuclearinstallations. In 1978 Iran was also talking ith theUnited States about a $2 billi on nuclear package, neverconsummated. Iran had begun to exploit hat is thouhtto be enormous reserves of uranium ore. Iranin scien-tists and engineers had lready begun work on nuclearfusion energy research.

Steel: The enormous ovietbuilt Aryamehr steel orksin Isfhan was the centerpiece of Iran s exciting ne steel

EIR uly 1, 1980

industry. Alredy proucin 1.9 million tons of tannually in 1978, by 198 the Aryehr ors rslated to have an output of 8 million tons per yr,mak ing it one of the lrgest steel plnts in the orl. hparent National Iranian teel Compny (NIC h begun to build several other facilities, incluin plntusin the most dvnce, hightechnoloy euctoneuipment. y 1983h the revolution not o

everythingne plants at Ahaz, Banr As, Ifhn, and other sites ould have iven Irn ste cpcity of over 1 ilion tons yer. y copisn, . .steel production in 1 978 as 1 36 million tons.

The steel sector was the uni versity of inustry in n.The I sfahan plnt served as a center for triin and semisille orers, an engineers n mnfor the entire ntion . id a chief of NI C, Our incois n ot onl y fro steel sles ut so fro intni of trining . We hve ig turnover in lo, n tt iexctly the i of the overnentorer lr ihere nd te the to here they re ne. I c

run a forml school, trinin center for 70 tu.Tht s in 19 78 . ner hoeini, the ost pciasst of Irnits lor forceis ein exteint.

Copper: In 1979, the r Chesheh Copper iiCompny s beginning prouction of 1 42, ton copper per year, plcing Irn in the top ix cppproducing countries in the orl. With over 4 iitons o f copper reserves uner the roun, n tir city had been uner construction in r Chehh. alredy ha 2,0 popultion, copete ith i,smelting n rening pnts, n pnts for frici.

A new rail line was on the raing bor.Machine Tools: The hue Triz chine oo nt, multiillion olr coplex, n nuly prouc 1 ,tons of drills, pups, lthes, in chine, cosors, nd p resses. uilt in 1 966, it h cret in i compex mchinetool inustry, incuin trct fctory, engine plnts, truc n us ssemly plnt, other hevy inustry. housns of Irnin poce to Triz to join the roin inuti force there. ike I sfhn stee, the iz chiplantwith its on voction l schoolprouce tsands of trined orers and mners for rplants.

Auto: Ten percent of Irns lor orce s epo inthe utomoile inustry, uner the conto o Ntionl hice nufcturin Copny. pproduce 130,0 vehicles per yer. oe the nishe prouct s comprise of Irni pGenerl otos, British eyln, ie, v,Renult, ercees, n c ruc uil pnt i long the same inustri corrior. rncs alone prouce 60,0 vehicles nnu y.

cil Rp 2







Crporae" Aquarians

A

(Perspols)

Bl ack Nobili tyFamilies

oeyofJesus

AOvsoussex

ChneseIntellgence(Maosts)

FF

quaianU nivesity entes

Prs Adem Ceners

Eoe Prque des Hues EudesCNR Anropoogyooogy

orbonne Anropoogy ooogy

eon rn

v

eo sso

Non Insue of Agronomy- oundon

Reser1

�

,

-

�

;:�e

and Russel I

�

_

�

Foundaton

, - ;

Iraan

nerregosPeeoouum

Educatonal Syste

26 Specia epot

InternatonalIns! of AppldSystems Analyss(IIASA)

A /smnd ees

OROPAren Insueof rnnudes

bolhassan Bani-Saconomc PolicyakingGo foyatollah Khoen

E I R uy 5 980



T 'k a ntwork

Black Nobiity Families

Palavicinis Cecis

Corporate "AquariansIBM ITT BBC Atantic iched XeroxWarner BrothersFuturists, FuturiblesBertrand de ouvene H G Wels"Aquarian University Centers

HarvardMI T OxfordCam bridgeStanfordBerkeey

Aspen Institute

obert O Anderson oseph SlaterDougass CaterClub of Rome International

Aureio Peccei Maurice Guernier acuesFreymond So Linowitz

Paris Academic Centes

Ecoe Pratiue des Hautes Etudesacues Soustele Miche Crozier Michel

Foucaut Caude LeviStraussCNS

Pau VeieSorbonne

Georges Baland ier

National I nstitute of Agromic esearchen Dumont.S. Committee on Iran

amsey Clark ichard Fakntereligious Peace Colloquium

Sol Linowitz Cyrus Vnce Seyed Hosein Nasr

IIASA

oger Garaudy

IFIAS /Islam and the West

acues Freymond Aureio Pecceilexaner King

COROPA

Aurelio Peccei en Dumontrench Institute of Irani an StudiesHenri CorbinInian ducation System

Hushang Nahavand i Teheran niverityMinistry of EducationCatherine Bateson Damavand niverityInstitute of Socia esearch Teheran

IR uly 15 , 1980

And so w hether he knew it or not t he Shah himewas funding B aniSadr

The case of GaaudIt remains to take a closer look at BaniSadr himsel

and another prime gure in this process oger Gru-dy Ongoing investigations by EIR have conrmed tht

oger Garaudy is n important controller of anti-Western acobins in Iran the utrae in Algeria suchCub of ome African bastions as Senega and theLibyan government He is aso a leading ure in theEuropean antinucear movement

Garaudy is a former Communist Party theoreticinconverted to oman Cathoicism thro ugh the inuenceof Pre Lebret a esuit authority on maintaining African socia structures based on triba l witchcraft In 1 9,Garaudy formed two institutions the Cub of ome-inked Internationa Institute for the Dialogue o Civi-lizations and the Universit des Mutants in Sengl.Garaudy aso belongs to the International Institute oAppied Systems Anaysis a Viennabased Ettthinktank estabished by Aureio Peccei and other todisseminate neoMathusian theories in the Soviet blocin the form of systems theory

In recent months araudy has published burt ofartices in the French press describing nuclear energyas "a threat to the very existence of the plnet nblasting "capitaist growth for "breaking the unitybetween man and nature Garaudy also contribut tothe journa Mediterranean Peoples, set up by Paul iland BaniSadr in 1977 as a control channel mon

"Third World radical networksEary this une Garaudy attended the "SIrn

conference in Teheran arranged b y Bani Sdr feturinformer S Attorney General amey Clark I mmdi-ately before leaving for Teheran with a Europendelegation o f Bertrand ussel followers Garaudy pu-ished an impassioned review in praise of BniSdrlatest book Which Revolution for Iran? The revistates that BaniSadr's anaysis is "valuable in it minlines not ony for the entire developing sector but vnfor our country if we do not want to be lte or thcoming mutation According to Garaudy Bnidr

correctly ocates the Iranian revolution s "revolt othe people against the "Western model of grothagainst the belief that "the primary task of govrnmntin our modern word is the one of economic dvlopment of growth and consumption of progr oeducation

"We must thank President BaniSadr Gruyconcludes " for having through his beautiful boo k cta new light on the future we can anticipate if throunuclear power we take a route similar to the on Irntook through its oil : the route of technocratic depotm

Speci Rport



Aspens 'new setof ues for Ire followng statements are excerpted fom speechesgven at the Setember 1975 Persepols conference n Iran.From the address by Her Imperal Majesty, the Shahbanouof Iran:

. . . I would like to extend my warmest appreciation tothe Institute for its efforts in making this a creativegathering. Fortunately for all of us who ihabit whatBuckminster Ful ler called "Spaceship Earth, there exist

organizations that concern themselves with the valuecontent of research, of ideas, of those activities thatultimately aim to promote the uality o f life.

uring my brief visit to Aspen in early Jul y [ 1 97 , Iwas very much impressed with both the content of theseminars and te setting in which they were con ducted.

In Iran we are proudly committed to our rich heritageand traditions, we shall not hesitate to create an environment conducive to achieving the human aspects of ourdesired goals. This may well entail a new set of valuesunder which a greater balance will be achieved between

the material and the spiritual needs of man . . . .

From " The Essental Elements of Iranan Culture, byhsan Naragh:

niversities and research centers in the West . . . have allaed their studies on development upon a linear, Westrnizing conception of progress . . . .Human sciences,founded on rational objectivity, are today suffering setbacks and defeats. Is it not important that, having exaltedrationality to ensure human happiness, we should nowbe induced to invent a special disciplinepsychoanaly

sisto cure the ills arising from an overrationally o rganized life that is deprived of ts basc relatonshp wt h th enonratona . . . Why should cultures like ours, in whichman is considered in all his aspects, be deprived of theirsubstance by following a socalled rationa l course at theend of which lies the vast expanse of the nonrational?

The people have needs and aspirations that are notmerely mater ia l . . . . The intrusion of machines into thetraditional system m ay well jeopardize this creative life.

Special eport

From Old and New Values n Changng Cultural Pattes by Hormoz Farhat

America has become more and more aware of her exag

gerated reiance on material values. Cnscious movements have been made, during the past 1 years, torefocus the aims of lif to the spiritual . This conscio usness has most prominently manifested itself in the attitude of young people toward l ife . . . .

Let us now focus our attention on what has beenhappening in Iran in terms of the pint just raised. Thecountry is going through an enormous social upheaval. . . aised standards of living have led to the emergenceand constant growth of a midd le class that is, in the main,the byproduct of this transitional period. The middleclass is displaying a gradual moral breakdown that is

quite alarming.. . . I believe that the current revolutionary state ofthe nation, whn important and farreaching measuresare effectively enacted, provides the right circumstancesfor a national resurgence in the direction of a moraluprising based upon truth and justice.

Sol Linowiz

Aurelio eccei

The Persepolis group

A mong the non-Iranan partcpants n the 1 9751 976Persepols sympsa sponsored by the Aspen Insttute:

Aurelo Pecce Club of ome head; vicechairman ofOlivetti Company

Sol Lnowtz Club of ome member and partner inCoudert Brothers law rm

Jacques Freymond Club of Rome mer; drctor othe Graduate Institute of International St inGeneva

A drano Buat Traverso Club of ome mbr; Itlian scientist

R July 1, 19



Bohdan Hawrylyshyn Club of ome member directorGeneva's Center for Industrial Studies

Robert O Anderson US Association for the Club ofome member chairman o f Aspen I nstitute

Harlan Cleveland US Association for the Club ofome member director Aspen I nstitute Program inInternational Affairs Princeton

Alvin C Eurich president of Aspen Institute 963 967ouglass Cater director Aspen Institute Program on

Communications and SocietyLibby A Cater special consultant Aspen InstituteThomas W Wilson, Jr director Aspen Institute Pro-

gram on Environment and the uality o f LifeWaldemar A Nielsen director Aspen In stitute Program

on Pluralism and the CommonwealCarles Yost Aspen Institute Washington

Joseph E Slater U S Association for the Club of omemember president Aspen InstituteShepard Stone director Aspen Institute Berlin West

GermanyThe Sommer EditorinChief ie Zeit (leading "lib

eral oligarchist jou rnal in EuropeMarion Countess nhoff publisher ie ZeitWilliam ietel president ockefeller Brothers FundAred Winslow Jones nancier top US contact man

for Britain's Lord Caradon controller of tribalistnetworks throughout the Midd le East

Asa Briggs vicechancellor University of Sussex Eng-

land homebase of Tavistock InstituteFran�ois uchene director Center for ContemporaryEuropean Studies University of Sussex

Richard Gardner current US ambassador to ItalyClub of ome collaborator

John W Gardner Common Causeaniel Yankelovich pollster for Club of ome and New

York TimesJohn Oakes, New York mes editorial page editorCatherine Bateson Dean of Graduate Studies at Da-

mavand College in Teheran daughter of MargaretMead and Gregory Bateson two controllers of the

"Aquarian movement and of the "MKUltraLSD experiment projectsr Norman Zinberg leading controller of "MK Ultra

based in Cambridge MassachusettsJames Bill University of Texas Austin antiShah Iran

expertMarvin Zonis University of Chicago antiShah Iran

expertepresentatives of IBM Warner Brothers andStanford University also participated

EIR uly 5 980

within of dependence on foreign powers and o loss of our material wealth as well as our soul

The case of Bani-SadrGaraudy's influence over BaniSadr was on o

many inuences upon Iran's current presidn durngthe latter's exile in France BaniSadr was a pt projcof the same indivi duals and institution s who cread environmentalist movements and the trrorist socktroops typied by Italy's ed Brigades and West Gr-many's BaaderMeinhof

BaniSadr's experience is not unique in this rspc.Most o f his colleagues presently in eheran and mucof the advisory group to Khomeini to this date wrtrained either like BaniSadr in France's Tavisock-afliated sociologyanthropology nests in sanctuarieswithin Iran for radicalanthropology cult controllers orin USbased institutions promoting an "Aquari�nrebellion against industrial society such as the tan-

fordBerkeley complex in California and the Harvard-MIT complex in Massachusetts

In all these cases the postShah elitetobe wrindoctrinated in hatred of "Western ways to th xnthat the simple euation the Shah equals the sbecame their moti vating belief structure It was eas oprogram the next step: a Maoist "cultural revolutionmentality dictating the forced eradication of scienccities and genuine religion

The laboratory for massscale application of sentality was Cambodia aer the Cambodian popul-ton had been prepared through saturation bombns

ordered by Henry Kissinger in the early 970s. Tarchitecs of Cambodia's genocidal "cultural revolu-tion Khieu Samphan and Pol Pot were both trinin t same Sorbonne center that produced BaniSdr.

BaniSadr's closst French mentors and associscame from four overlapping instiutions: the sociolog-anthropology division of the Centre Nationale dsecherches Scientique (CNS "Division Six o tEcole Pratique des Hautes Etudes (EPHE6 and tNational Institue or Agronomicl Rsrc. O the most important is EHE6 which trained Bn Sadr's thesis adviser Georges Balandier a promor o

African tribal customs. EPHE6 is also a bas or ecology antin uclear movement in France.While studying "agrarian reform Maoism undr

Balandier BaniSa dr was inuenced directly or indirc-ly by the following individuals:

Paul Veille "Marxist sociologist CNR Insi-tute for Mediterranean esearch

en Dumont a "radical agronomist at tCNS and the National Institute for Agronomiclesearch Dumont honorary president of the Frinsof the Earth i s a foun der of ECOOPA the European

Spcil Rport 29



evironmentalist umbrella organization. So Maoist arehis ideas that he has been ejected from both Cuba andAlgeria on suspicion of being a CIA agent. In 976,umont led an expedition to Iran to investigate thecountrys agricultural system, and wrote a report advo-cating "radical agrarian reform. escribed as a "men-tor by BaniSadr, umont has become an ofcial

adviser on agricultural policy to Ayatollah homeini . Haroun Tazieff, a radical scientist who accom-

panied umont on his 1978 visit, and a founder ofCOROPA.

Michel Crozier, an PH6 theorist from Su ssex'sTavistock, who helped coordinate the 968 destabiliza-tion of the de Gaulle government.

JeanPierre Vgier, a radical scientist at CNRSwho ran the 1968 secretive "Command Center of theRevolution against de Gaulle, and became an officialadviser to homeini in late 978 .

Michel Foucault, a CNRSPH6 associate ofthe nowdeceased JeanPaul S artre who popularized thetheory that "There is no such thing as madness, since"it is societies, not individuals, who are mad. Foucaulttraveled to Iran in 1978 with a CNRS team to investi-gate the country's energy program. The team called forthe denuclearization of Iran and the use of wind as itsprime energy source. The promadness Foucault was,not surprisingly, one of homeini's earliest and most

Ramsey Clak

Cers nvoybac Bi-Sa

New York lawyer Ramsey Clark has been a Carteradministration special envoy to the homeini groupin Iran. When homeini was in exile in Neauple-Chateau, France, Clark, as a Crter emissary, visitedthe Ayatollah's "dissident base. Soon after, withState eartment clearance, Clark marched throughthe streets of Teheran to herald homeini's new re-gime and to denounce U. S. policy toward Iran. In hisvisit to Teheran last month, Clark was involved in"indirect diplomacy for the State epartment, ac

30 Special Report

vocal backers. Jacques Soustelle, EPHE6 anthropologist who

specializes in ancient Aztec cults. A controller of "right-wing terrorist groups committed to a feudalist worldorder, he was responsible for coordinating nuerousassassination attempts against de Gaulle in the 959 962 period , for which he was exiled from France from

962968 . Charles Bettelheim, EPHE6 director and a strongsupporter of Maoist ruralist economic policies.

Claude LeviStrauss, the prominent anthropolo-gist, who has used the notions of "cultural relativismand "structuralism to popularize the importance ofblack magic and f a "return to nature.

Henri Corbin, a French rliious cultist who headsthe Teheranbased French Istitute fr Iranian Stud-ies. A promoter of a new synthetic brand of Shi'iteIslam; it has been said of Corbin that "he knows somuch about Iranian Shi'ism, that he gives the impres-

sion he has created it. From these controllers, and through contact with

such radical deindustrializers as Princeton's Falk, am-sey Clark, the Bertrand Russell Foundation and Italy'sLelio Basso Founda tion, Bani Sadr learned his lessons.His po licies of "Cambodianization by persuasion, anda return to Iran's colonial "preShah identity are wellunderway.

cording to a national television broadcast by Secretaryof State M uskie.

An excerpt from a February 980 interview withClark by a Mexican correspondent follows.

"I think Mexico is in a very dangerous conjunc-ture. What has to be questioned is the desirability ofindustrial expansion, especlly in a country with thecultural tradition of Mexico. Mexico has to evaluatevery carefully the risks of industrial development,because if you build a signicant industrial plant, youcreate an enormous need for energy, and Mexico's oilcould only supply that for 40 years, and after that,what could you do?

"hink about the Shah fantasizing about nuclearenergy. It was only a fantasy because there was nonational reality for nuclear energy in Iran, because itwas economic plann ing based on a foreign model, andthat was denounced by BaniSadr for over 20 years asan economist. I know BaniSadr very well. His bokOil and Violence lays these dilemmas out very compe-tently.

ER July 5, 980



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ao Intelge

Warburgghts nuclerfuelfor India

A major showdown between Congessand the administation is shaping up overthe issue of shipping nuclea fuel to India. At this time, the House is expectedto vote against the Carter administration's decision to ship the fuel, made lastmonth. To block the Carte decisionhowever, bth Houses of Congess must

vote against the administration. Attention is now focusing on the Senate, wheethe ght is expected to be intense.

The ght against the Carter policy inthe Senate is being ed by two Democrats,Se . John Glenn of Ohio and Sen. AlanCranston of California. Glenn is an oigina sponsor of the socalled ercyGlennbi, which paced severe restrictions onthe shipment of nuclear technoogy andfu by the United States overseas. Cransto is welknow for his views againstnucear energy.

Sources in Washington familia with

the issue of ucear fue shipment to Indiahave pointed out that the eal daytodayorgaizer o the Hil against the fuelshipmet is a leading Cranston aide,Jerry Warburg. This raises the eyebrowsof many a informed person. Waburg isa scion of the infamous Warbug family,which cae to prominence in this country via ivestmet banking on WallStreet. e is k ow to b a rabid environmentaist firmy opposed to the use ofucear energy, a fact which casts doubtso the GennCranston argument thattheir pposition to the shipment of thenucear fue stems purely from the dangerthat te fue might lead to poiferatio" of nucear weapons. Waburg isaso kow to be closey coordinatingthe antifu sipment campaign with thearmy of evironmentaists deployed onCapito i. The army icludes troopsfrom th Nationa Resources DefenseCouci, rids of te Earth, te Aubon Society ad others. These organizatios a have cose ties to the stitutefor oicy Studies, a Washigtonbasedterroristsympathizing organization

32 International

which was founded, in part, by Warbug's reative, ultralibera James Waburg.

Congress has until the end of Septem-ber to bock the administration's decisionto ship the fuel.

Khomeini ollowersdestroy tesures

According to reports from Iran published in ocial U.S. government information bulletins, roving bands of theAyatolah Khomeini's supporters arescouring the countryside destroying ancient monuments, tombs, tempes andhistoric artifacts dating from as far backas 550 B.C. Under the banner of Islamicizing" Iran, the cutists have sought outmuseums and repositories of ancientworks while sledgehammering pricelessstone buidings and archeological uinsthroughout the country. The scourge is

described by 0bservers as part of a boad .er incitement of hardcore fundamentalists through the reviva of the 1979 rev-outionary committees."

The Muslim Brotherhood, responsibe for creating the Khomeini cut, isunder pressure in Syria, however, whereresident Hafez aAssad recenty escaped assassinatio by the group. Assad's broter, who heads the Syrian specia inteligence forces, warned this weekthat We know where they (the Brotherood) are in the Arab word and intenationaly. We sha hunt them downinternay and extenaly."

France's roe:ndependent foreign policy

rech oreig Miister Jea ran�oisoncet addressed the rench Senate onforeign poicy Jue 27 pacing great empasis o te emergence of Europe as asuperpower.

Europe, said Fran�oisoncet,asserts heself a bit moe every day asan independent force acting on the intenational scene . . . this emergence provokes the impatience and criticism ofthose who get annoyed by it, but it iswelcomed with hope by the immense ma jority of the counties who perceive thevoice of Europe as a voice of peace, ofprogress, and generosity."

ran�oisoncet deveoped the necessary independent ole of France inword aairs at great length, emphasiz

ing such things as the Venice EEC esoution on the Middle East which wasinspired by rance," or the GiscardBrezhnev Warsaw summit which everyone recognized was very important. Thepolicy of rance is an independent poicy, said FranisPont. This impliesthat it intends to remain the master of itsown language, initiatives and patners.To give that up would ruin the meritsother states have recognized in rance, itwoud mean to abandon the ecient,usefu roe which is hers. It woud meanhaving no policy at a, or just a stop

andgo poicy . Let no one expect that ofFrance. Whateve the pressues or thsoicitations might be, and wheever theymight come from, she will not do so."

Ohira last hurrhturns into Chinese festival

The Juy 9 funeral for the late remier ofJapan, Masayoshi Ohira, is turning intoa major gathering of adherents to theChina card military alliance in Asiaagainst the Soviet Union.

This week, both resident Carter andChinese remier Hua Guofeng anounced they will attend the funeral, andeking ater added that the two wi hodimportant taks in Tokyo. The emierof Thaiand, Gen. rem, wil also attendthe funeral, leading many to seculatethat the recent tensions in ndochina between Vietnam and Thailand wi be atopic of discussions.

IR uly 5, 980



As tese arrangements ere beingannouned te Wite House aso madepubic its decision to airi $ miion ofmiitary equipment to haiand to boster that country in te face of te "danger posed by Vietnam. e eaponseing sent and te amount are not verysignicant and come mainy from stockpies of U.S. eapons udged obsoete bye iitary in Wasington. Neverteess e gesture is very important poitiay as it signas te commitment of teUnied States o a miitary reationsip

it Cina around te issue of aiVietnamese tensions.

he na arrangements for te HuaCarter meeting in okyo are no beingorkedout by Asistant Secretary ofState for Asia Ricard Hobrooke oarrived in Peking tis eek. Interestingy most oter countries ave announcedtat oerdon ofcias i representteir countries at te funera. Cabinetministers from Britain and West Germany i attend ie France as yet tospecify a representative.

Soviets plan nuplexes

e Soviet Union as a pio proect forbuiding nupexes industra compexescentered on a nucear poer source according to te Frenc eeky magazineLExpress. e Soviet pan is to instaightemperature gascooed reactors(HGRs) in te eart of a compex ofstee and cemicas pants to poertem. ey propose to ave a gigaattreactor poering eiter to cemicaspants (producing miion ons of ammonia a year) or one 2 miion ton capaciy stee compex. "ere is a demonstraion unit under construcion but Mosco refuses o say ere reportsL'Express

Te nupex oncept as been advanced by scientiss as idea for citybuiding deveopment proects especiay in te Tird Word ere te empasis must be on cras igecnoogydeveopmen tat simutaneousy pro

EIR uly

motes te broader education of te popuation as uaity abor poer. In tenupex e instaation of one or morenucear reactors oud estabish te corearound ic entire urban centers oudbe deveoped.

e fact tat HG R tecnoogy isbeing empoyed in te Soviet project isaso signicant. Hig temperature gasooed reactors burn more ecientyprodu proesseat appicabe to ydrogn production and are more easiy"maed it oter nucear tecnoogies

an ig ater reactors. e U.S. asdiscontined HGR deveopment

Guyana: the IM roadto "stablity?

In excange for promises of standbycredit from te Internationa MonetaryFund (IMF) te government of Guyanaas agreed to submit its economy to stianoter ratcet of austerity incudingsasing food subsidies and te pubicservice budget. Given te eavy predom

inance of service industries in the Guyanese economy te IMF conditions canbe expected o boost unempoyment evs.

Prime Minister Forbes Burnam reporedy as aso agreed to "deescaateis soiaist retoric and permit foreigncompanies to enter Guyana "on teiron terms in return for te MF promises.

A Washington Post editoria of Juy 2ais te agreement as a "triump fore "good guys in te Caribbean and aoss for e Soviets and Cubans. eioria suggests ta Guyana's "subania sacrices under IMF surveia i pave te road for economicad oiica stabiity no tat there asben a "ar urn o e Western ay.ore ikey is tat e escaated austerityves i exarbate aready exposiveoia coditions. Te recent assassinaio of prominnt opposition eader War Rodney as spurred tensions in teountry and as ed o predictions ofposibe armed opposition o te unpouar Burnam regime.

f

• FRECH PREIDET Giscard stated in a nationay teevisedpress conference June 27 tat aMideast peace settement is urgentbecause of te possibe introducton of "ne eapons ic coudbe far more poerfu and ongerrange tan anything no depoyed in te region. Fooingtis apparent reference to ne deveopments in SyrianSoviet reations Giscard made a overture toIsraei opposition forces by commnting tat e oud be eager togo to Israe but ony if "a neregime as in poer there.

• THE AGOLA governmentas carged that "vast areas ofte country are no uder occpation by Sout Africa hich thiseek sent 5,000 troops a hdredmies into te country baced by"maor air support South Africareportedy aims to estabish a permanent buffer zone in hich theU.S.sponsored UNI A gerriagroup defeated in 1976, oud beinstaed.

•IRAELI FOIGN

MiisterYitzak Shamir tod the Kessettis eek that the ow of American and Soviet eapos t Arabstates coud "igite a oca war oreven Word War III. Shamir impied tat Israe is preparig apreemptive strike into the Gf oieds region stressing that if theU.S. suppies advanced ghter aircra to Saudi Arabia the Sadisoud be regarded as grave threatto Israe.

• ARAIMHA RAO, India

Foreign Minister canceed ot onis schedued appearace at theASEAN Foreig Miisters meeting peading his mother's severeiness. Dei sources report thatte Prime Minister did ot watRao to spend his time meetigMuskie and oter visitors thererater tan their Southeast Asiafriends particuary in ight ofMuskies antiVietnam crusading.

International 33



Schmidt in Moscow: a shift in world leadersip lsh

Commenting on the visit of West German ChancellorHelmut Schmidt to Moscow June 3July , most of theinternational press hastened to report that nothing muchoccurred The Soviets are still in Afghanistan Pavdaabridged Schmidt's banuet speech in which he stonglyurged an immediate troop withdrawal Schmidt cameaway optimistic about the possibility of beginning nego-tiations on mediumrange nuclear missiles in Europebut indications of this were vague "If progress hasindeed been made it would b e the only major diplomatic

achievement in Mr Schmidt's closely watched Moscowsummit was the niggardly remark of Anthony BarbieriJr in the Baltimoe Sun July 2

These gentlemen of the press have once aga in missedthe forest for the trees West Germany and Francetaking over the leadership of the Atlantic Alliance fromthe weak and unstable Carter administration have puttogether a waravoidance package in the spirit of GeneralCharles de Gaulle's "grand design for a "Europe fromthe Atlantic to the Urals Apart from reversing theirrefusal to negotiate on the " Euromiss iles for the firsttime the Soviet leadership has endorsed the principle of

joint EastWest cooperation to "nd a solution to theonomic problems of the developing countriesIn addition West Germany and the U S S have

signed a 2year agreement for hightechnology eco-nomic and scientic cooperation in deance of JimmyCarter's ban on trade with the Soviet Unio n

Th symbls ntntThe West German government issued a commemo-

rative coin timed to coincide with the visit On one sidebearing the inscription ie Reise nach Moskau ("The

34 Inteational

Trip to Moscow are the portraits of Schmidt andrezhnev On the other side are Chancellor KonradAdenauer and Soviet leaders Bulganin and Khrushchevat the 9 ceremonies formalizing diplomatic ties

In his banuet speech Schmidt spoke of "te hor-rors of war death persecution devastation "WeGermans living in the center of Europe can loseeverything and gain nothing in a new war he stressed"The people in my country know this Therefore theyunanimously share the main line of our policy and it is

precisely this which gives our political course consist-ency and clarity Our course is a course of peace In apress conference later Schmidt noted "with a certainsatisfaction that the Soviet leadership is giving thegovernment of the Federal epublic a special statusbeyond the importance of our bilateral relationsinother words Moscow has recognized Bonn's role as aspokesman for the Western alliance in view of Wash-ington's abdication of any rational leadership Com-mented adio Moscow July 2: "The summit of theWest German and Soviet leaders has set a good exampleonce again The talks will have a considerable posi-

tive inuence on the future of peace and internationalrelations

Missil ngtiatins pssiblThe uestion of the "Euromissiles was the subject

of particularly intense discussions during the twodayvisit in Moscow and at his concluding press conferenceSchmidt announced: "I have reason to believe thatnegotiations will take place When ATO decided lastDecember to begin production of missiles that for the

ER July 980



fist time will be able to each Soviet tagets froEope Moscow conclded that the United States wasseeking a "ststike capability visvis the SovietUnion The new NATO missiles will be within fo tofive mintes flight time of Soviet tagets and theeforean only be compaed with the installation of Sovietmedimange missiles in Cba o Canada Moscowbelieves The invasion of Afghanistan was lanched afew days ae the NATO decision as a daaticemonstation that the U S S won't toleate the shift

Schmidt has advocated a freeze on the deployentof both Soviet and NATO Eomissiles pending theeslt of negotiations This idea was rejected by theUnited States (sine it wants to install the mi ssiles at allost) and by the Soviet Union (since such a "feezewold only affect Wasaw Pact weaponsthe NATOones will not be bilt fo anothe thee yeas) WhileMoscow had peviosly annonced itself ready to ne-gotiate NATO's decision destoyed the basis for nego-tiations Soviet ofcials said

Schmidt's visit di d not dispense with all these knottypoblems bt "things have gotten oving agin hetold the West Geman paliaent ly 3 The Sovietsmade a new poposal fo talkswhich cold begin evenbefoe the atication of the SAT II treaty by the U SSenateon all nclea weapons systems not covered byeisting disamament ageements This would includefo the st time both the Eomissiles and Aerican"fowadbased systems capable of reaching Sovietteitoy

US ofcials ae skeptical of this idea although

Secetay of State Edmnd Mskie told epoters tathe pomised West Geman Fo eign Minister Genscherwho flew to Washington to bief the US govenentthat "we will stdy this eaction in a constructivespiit it is wothy of that kind of consideation ButU S ocials hastened to epress the hope that the newSoviet position on negotiations cold ake it easierpolitically to go ahead with the deployment of theAmeican Eomissiles anyway

The West Geman govenment spokesman waned:"We feel that things may be bought into motion Butdon't foget; it is the United States and not we who will

ondct the negotiations althogh the missile isse isof gent inteest to s and to all Europeans

Economic development :task of the century

Chancello Schmidt in his une 30 speech at theKemlin banqet in his hono stressed that globaleconomic development and paticularly solution of thewold's enegy poblems is the key to preventing war"We ae called on to work on this task of the centuryfo moal easons and by foce of ou joint responsibil

EIR ly 15 1980

ity fo peace in the worldWestern industrial statesalongside Easten states he said He praised thepoposal made by Bezhnev fo a panEuropean confer-ence on enegy poblems

Foeign Ministe Genscher reporting to the WestGeman paliament ly 3 discussed the thee of ThirdWold development at geater length A peace strategyfo the 1980s is requied he said that will go beyondthe limits of EastWest elations and include the"Soth By the yea 2000 there will be six o sevenbillion moe people aound needing food housingwok and enegy We will have to develop new energysoces he said and if we fail to eet this chllengethee will be n o positive pl ace for us in history

The Soviet Union has long been wry of appels forEastW est cooperation in the Third World a rguing thtit is not esponsible for repaiing the daage done bycapitalist colonialist policies Appeals for EastWestNothSouth cooperation have frequently coe frothe Brandt Coission which seeks Soviet acquies-cence in imposing a strategy of "approprite techolo-gy laborintensive developent on the poor countriesof the "Suth Moscow hs styed clear of this p-poach The fact that So viet leaders have now endorsedthe idea of EastWest coopeation in the Third Worlddemonstrates thir belief that the FancoGern lli-ance will not ipose "zerogrowth usterity but willseek industrial developent

This hightechnology approach is the basis of the25yea agreeent signed during Schidt's trip Itincludes joint developent of nucler power plnts in

the Soviet Union exploitation of raw materials preci-sion instuents drilling equipent clcultors ndelectronic coponents seiconductor terils colgasiction equipent n d Xry technology In ddi-ion a huge gs pipeline del is under negotition

Fury from Washing tTe totality of these oves has put the Crter

adinistration into a cold fury efense Secretry r-old Brown declared in a visit to Pris uly 2 tht "Tepolicy of 1935 to 1938 is being repeated in WesternErope and will have the sae resulta reference to

the appeaseent of Hitler Although soe in Europethink the US is wek he sid this is n "illusion "Ia here to correct the danger of appeseent TeUnited States will ct strongly ginst the dners inEurope and outside Europe I do not believe giventhe enormous Soviet ilitry force tt Europe cn byitself sustain politicl independence He sid tt te"mistaken belie' that the US is slipping "could ledto neutralization which would relly be ust noterter for a surrender to Soviet dointion bceEope eally has not uch choice in this tter

Interntionl 3



Face:ew bomb,

ame doce Sus Wlsh

The announcement by French President Vlry Giscardd'staing at a press conference June 26 that rance hassuccessfully tested a "neutron bomb does not at allherald a shi in French straegic policy toward closerintegration with NATO, as some American analysts havehopefully claimed. Neither does it represent a movetoward the NATO doctrines of "exible response and

"limited nuclear war, as some ofthe President's Gaullistand Communist critics have charged.

Instead, the French President's declaration po rtendsa farreaching realignment of continental uropean de-fene in order to bolster the political alliance betweenFrance and West Germany. That axis is based on a policyof etente with the S oviet Union and astern Europe andcooperation for the industrialization of the Third WorldWorldpolicies opposed by the United States. Now theuropean "s uperpower is loo king to its own defensethe extension of France's "nuclear umbrella to WestGermany, a nation forbidden access to nuclear weapons

by law.Giscard underlined in his press conference that the

neutron bomb, if the decision is made 23 years from nowto go ahead with its production, will not mean thatFrance has accepted the possibility o f "limited or "tact-ical nuclear war in Europethe doctrine most U.S.backers of the neutron bomb advocate.

"There is a point which must be understood as centralin our system, he said. "It is tat any nuclear attack onFrench soil will automatically give rise to a strategicnuclear response. According to French nuclear doctrineundr Giscard, tactical nuclear strikes would be deliveed

by French forces i Germany as a onetimeonly warn-ing, and if that did not suce to deter advancing enemyforces, the French presient would launch a srategicstrike against the cities of the attacking power.

What, then, is the purpose of the neutron bomb? "Inour reections on t he use of this weapon, said Giscard,"we shall take account of the following : France is directlyconcerned with the security of neighboring West Euro-pean states. Asked for a more detailed explanation ofthis statement, the President refused, p romis ing a fullerexposition at a more appropriate time

36 International

But the West uroean press was uick to draw theimplications. The Sdeutsche Zetung commented June28 that when former French President Charles de Gaullebuilt his independent deerrent, the force de frappe none took it seriously. But today things have changed.The force de frappe suces to make any superpoweattack on France unprotable. Many a uropean wohas lived under the American nuclear umbrella for thelast 25 years will find it reassuring today, given doubts inWashington' s defense loyalties, tha t there exsts a deter-rent force that is being deployed according to the stand-ards of his own continent.

By ensuring West Germany' s defense, at least in part,through the neutron weapon , the rench government iundercutting arguments for the deployment of AmericanPershing II and cruise missiles in the Federal Republic.NATO's ecember 1 2 decisin to begin production ofthese weapon swhich for the rst time would be capableof striking Soviet t argets from Western Europe, with amere 45 minute warning timewas only accepted byWest German Chancellor Helmut Schmidt because heperceived Soviet mediumrange missiles targeted onWestern urope as a d angeous strategic imba lance. TheNATO decisin was one of the major factors whichinduced the Soviet Union to invade Afghanistan, as awarning to the West. But deplyment of the neutronweapons by France would help to calm West Germanfears about the "urostrategic balance, while ntthreatening the Soviet Union with the possibility of aNATO surprise rst strike .

French oc ials are t pains to stress that the devel-opment of the neutron bomb will not imply a departurefrom the Gaullist po licy of nulear defense "at all poits

of the comass (tou azmut) efense Minister YvonBourges, who recently concluded a fourday rip toPoland, was asked by his Polish counterpart whthersome kind of antiSoviet shi was not underway.Bourges reportedly replied with a sile that such areading of Giscard' s statement was a misunderstanding,and that "France continues to organize its defense inevery direction and, considering the increase in its mili-tary capabilit y over the past few years, one could say thatwe are doing so even more than before. The Soviet presshas reported on Giscard's announcement without criti-cism.

The Gaullist traditionGiscar' s press conference caps a lengthy controver-

sy over military pol icy in F rance, which has focused notso much on the neron bomb itself as on the uestionof what strategic doctrine it should be deployed tosupport. The neutron bomb or "enhanced radiationweapon, is a form of thermonuclear weapon whoeblast and heat effects hae been reduced and whose killpower i s b asically con ned to the release of neutrons.Its proponents in NATO therefore see it as an ideal

EI July 1 1 980



bttleeld wepon which used gin st dvncing Soviettnks would stop the tnks by killing the soldiersinside limiting the dmge to NATOs home territoryThis would serve the NATO doctrine of "exible re-sponse nd is bsed on the ssumption tht the Sovietswould not be using nucler wepons or could beinuced to limit their strikes to tcticl nucler wrfre

Gullist militry strtegists hve correctly pointedout tht such scenrio would never tke plce inurope Gen Pierre Gllois the fther of Frenchnucler doctrine under de Gulle poi nted out in June7 interview to the Wahington Pot tht Soviet mi litrydoctrine foresees tnk ttck on urope only fter theterrin hs lredy been surted by sttegic nuclerbombings "The neutron bomb is form of Mginotline he sid referring to the defens line tht gveFrnce flse sense of security before the Germninvsion in 940 "It is typicl ide of generls whownt to ght the 940 wr over gin in 980 If webuild the neutron bomb it would be just nother cseof copying wht the Americns door in this csedont do

The Gullist prty issued n ocil policy position few weeks lter rejecting the nbomb It noted thtwhile "the llied members of NATO hve ccepted bypoliticl choice the Americn strtegy of exible re-sponse Frnce cnnot ccept this choice whichimplies turning urope into n expendbl e bttleeld in tcticl nucler exchnge between the two superpow-ers

This rejection of "exible response is t the foun-dtion of Gullist policy nd ws mjor fctor inleding to de Gulles withdrwl from NATOs mil-try commnd in 966 The Generl bsed his owndeterrence policy on the premise tht ny t tck gins tFrench ntionl territory whether by conventionl orother wepons will trigger mssive nd instntneousreprisls with the French strtegc nucler force In thi scontext tcticl nucler wepons re used s n ultimtewrning to the ggressor not for either nucler "chick-en gmes or defensive bttles

e Gulles rmy chief of stff Gen Chrles Ailler-et rst explined the reson for the tou aimut policyin 96

"An a priori llince could not gve us generl

gurntee of sfety snce it is lmost impossible toforesee wht mght one dy be the cuse of seriousconict nd wht would be the dstribution of powersmong the vrious sides To be s strong s possb lutonomously nd individully nd to possess our ownvrylongrnge rmment with gret power cpble ofdeterring ny ggressor whtever its strting point isclerly different formul from forming t the smecost s upplementry force to tht of the min memberof n a priori llince Our independent forceintrinsiclly s powerful s possible should lsosnce

EIR July , 980

we cnnot nticipte from which prt of the world thethret to future genertions will comebe oriented notin only one direction tht of the a priori enemy butshould be cpble of intervening everywhere or s wesy in our militry jrgon t every point of the com-pss

At the sme time tht he ws otlining this revolu-tionry doctrine Gen Ailleret ws plced in commndof moppingup opertion to clen out of the militryestblishment those elements tht hd supported nti-government terrorist opertions lunched duing theAlgerin wr In Mrch 968, Gen Ailleret ws killedin helicopter crsh which recent investigtions hvettributed to sbotge

The remnnts of those proterrorist networks renow clmoring for the neutron bomb s vehicle forFrnces closer integrtion with NATO nd the "exibleresponse doctrine The Union for French emocrcy(UF the colition of prties tht Giscrd relies uponfor his support issued document recently endorsingthese policies The UF i s n mlgm of fctions closeto Giscrds own thinking nd those tht hd no otherplce to go fter the resolution of the Algerin wr;they could no t join the Gullist prty fter hving beencomplicit in ttempts to overthrw de Gulle or hvehim ssinted The U F militry commission is hededby JenMrie illet n Anglophile "uropenistNot surprisingly the UF report overlooks Giscrdsllince with West Germny nd clls for close cooper-tion between Frnce nd Gret Britin "in ll possibleres: opertionl technicl nd industril incdngnucler weponry

Giscard's positioGiscrd in hs press conference dissocited himself

from the proNATO fetures of the UF documentsimultneously denying Gllois chrge tht the neutronwepon would necessri ly men resort to the Mginotine mentlity " The defense effort of countrycnnot be delegted to these wepons he sid "to newwepons or to smrt wepons ny more thn it wspossible to delegte it to the M ginot ine The defenseeffort is inscribed in the soul of the people .

The debte over the new wepon hs overshdowedwht ppers to b n importnt scientic brekthrough

chieved by French scientists working with neutrondevices in the Pcic According to the newspper LeQuotidien de Pari scientists hve developed the bsisfor "strtegic neutron b omboe with much greterrnge nd power thn presently tested versions Thisline of reserch will lso enhnce the countrys mbi-tious nucler ergy progrm which foresees 0 percentof electricity consumption from nucler rectors by98 Powerful neutron devices cn lso be used togenerte ssile fuel from ordinry urnium ore verycheply nd in virtully unlimited untities

Interntonl 7



u

Giscard hints at'nuclear umbrellFrench President Valery Giscard dEstaings June 25 pressconference clearly marked the newly won leadership rolewhich France is assuming for the West In the press

conference, Giscard announced Franes decision to proceed with development of an experimental neutron bomb,and reasserted that "France is directly conceed by thesecurity of neighboring European s tates Some of thehighlights of his sta tement follow:

French independent plicyThe policy of France is i ndependent but it is neither

neutral nor neutralist [Our independence] stems at oncefrom the historical situation and tradition of our co un-try She is not neutral, because we belong to an alliance The second characteristic of our foreign policy i s to

seek to correct an anomalythe selfeffacement ofEurope in the world Finally, our foreign policy startsfrom the idea that there exist at the present time possiblesolutions to the problems at hand

On Ag hanistanOur position has been that the Soviet armed forces

intervention was unacceptable and that we mus t actfor their total withdrawal I presented that analysis toBrezhnev during our useful conversation in Warsaw Itold him there were two ways to resolve this situation:to establish a calendar of troop withdrawal, and then tobegin that withdrawal I further indicated that thesolution could only be a political one

This political solution must entail the completewithdrawal of foreign armed forces from AfghanistanIt must allow the Afghan people to choose its owndestiny and its policy expression Afghanistan mustbe reestablished in its traditional historical situation asa nonaligned country, a country which cannot consti-tute a threat to neighboring states, nor b e utilized as abase, or as a support to create such threats to neighbor-ing states

We have leaned of the decision to withdraw certain

38 International

armed elements from Afghanistan How should weudge that decision? However limited its bearing mightbe in terms of numbers, it is a step in the right direction ,answering demands made upon the USS This ges-ture has two consequences: the rst one is that theUSS recognizes that it is from Afghanistan that the

deterioration in international relations can be stoppedThe gesture itself, the publicity surrounding it, showsthat the Soviet Union intended to insist on its resolve toend this deterioration, from Afghanistan

Should a country like France help militaril theAfghan rebellion? The answer is no France advocates apolitical solutio n Is there a calendar for withdrawal ofSoviet armed forces? Not to o ur knowledge But in therequest we presented to the Soviet authorities, we

indi cated that what was essential for us was a calndarof withdrawal, starting with a rst gesture, but leadingto such a calendar What do we think of the approach

to a political solution? I could say that one should notat the present time seek a transitory political solution[eg Carter'sed], one must seek on the contrary adenitive solution

On the Middle EasThe solution to the problems of the Middle ast lies

in conciliating two fundamental rights The right ofthe State of Israel to security The right of thePalestinian people to exist, which is also a universalright Is the conciliation of those two rights possible? Iam convinced that it is desirable I am convinced that

the present solution represents in reality a course intoan abyss In reality the best approach to the problemis the evacuation of the Arab territories occupied in1967 territories which are truly Arab I must remindyou that we have always said that this selfdetermination[of the Palestinian people] must be realized in theframework of a global peace settlement

O I now come to our conception of deterrence

There is one point which must be understood as centralin our disposition: it is that any nuclear attack onFrench soil would automatically call for a nuclearstrategic retaliat ion

As far as the enhanced radiation warhead is con-cerned, I have followed the recommendation of thefeasibility studies of that weapon by the Defense Coun-cil in December 1976 Those studies have led to thepreparation of the weapon The rst experiments havebeen carried out And the decsion to be made thenwill have to take into account the expected status of thenuclear armaments in Europe at that tim France isdirectly concerned by the security of the neighboringstates

ER July 15 1980



Soviets deal Europe.nd call Carter a liar• •

by Rachl Douglas

he Soviet Union is treating Western Europe as thepremier power of the Western world and the only hopefor preventing world war his is apparent in Sovietofcial press evaluations of President immy Cartrespecially since the Venice summit of Western powersand in a major foreign policy document issued by theUS S on une 24

mmediately after the Venice summit and with Chancellor Helmut Schmidt of West Germany due in Moscowa week later the Central Committee of the Soviet Comnist Party held a plenary session une 23 A chie f itemof siness was Foreign Minister ndrei Gromyko'sreport n a policy resolution the Central Committeealluded to the Europeans by contrasting to the Carteradministration certain "leaders of state and "socialpolitical forces who cold ac t to save detente

Corresponding to this evaluation Moscow is goingot of its way to give diplomatic priority to the Europeans he first EastWest summitry since the Afghanistancrisis began the rst of the year was Leonid Brezhnev'sstartling trip to Warsw in May to meet with FrenchPresidet Valry Giscard d'Estaing Now the Sovietshave rolled out the red carpet for Schmidt accordinghim the protocol of a fulldress state visit as he arrivedfo talks o trade Afghanistan and the controversial O "Eromissiles

Ce : iken o lihe Central Committee resolution blamed "the

O bloc above all the United States for endangering international secrity t afrmed the weight Washington's "China card carries in shifting Moscow'sstrategic evaluations: "he partnership of imperialismand Peking hegemonism is a e daerous heomeoi world politics which is dangerous for all humanityinclding the American and Chinese peoples [emphasis added

he daily rada and the Soviet news agency ASSspelled ot the charges oscow is lodging against

ER ly 980

arter Pravda accused the United States of orktogether with China and Pakistan to continue th oof arms into Afghanistan "All this is part of t nfor strengthening the American p resence in the enGulf and the Indian Ocean concluded the coe-tary

he Soviets brusquely rejected e uchheeAmerican "peacefeeler Carter's speech on a trn-tional governmnt arrangement for Afghantnwhich was delivered afer the Soviets through Frnce,annonced a partial troop withdrawal from Afghanstan

Carter in belittling the Soviet pullback gesture, committed "either a profound and dangerou itke,or a deliberate lie commented TASS

Soviet President Leonid Brezhnev's speech to tCentral Committee plenum as well as the subeuentpress commentaries dealt with the Afghan crsis expic-itly in terms of Soviet security The point of Mocomilitary move there said Brezhnev was "to weck lanfor putting Afghanistan in the iperiaist orbit ncreating a threat to our country from the south

Alongside the attacks on Carter the Sovet prepublished a series of epos last week chargng tatAmericanaided support baes for the Afghan reewere still functioning not only in Pakistan but froanian territory

ASS le no doubt that the destabization of eSouth Asian region stil presents a live war danger "fWashington a nd t he accomplices of American alis ersist in implementig their plans of akAfghainstan a sprigboard for aggression on [our]southern frontiers said ASS "they would do e tbear in mind that the Soviet Union its friends n hve the meas to deliver a tting rebuff

Also this past week the Soviets sounded the aover the crisis in Southeast sia charging in oscow broadcasts that the United States a ni stepping up military supplies to hailand re"waging a atiVietnam campaign

Internationa



At the penm Brezhnev mentioned the import ofeqipment as one priority area for discssion by Sovieteconomic panners who are working on the 99Fiveear Pan draft Whie SovietAmerican trade hasdecined by neary 0 percent so far this year reectingthe Carter administration's sanctions the Soviets areanticipating tht the green ight on EastWest Eropean

trade rotes wi stay on he 20 biion detschemarknatra gas and pipeine dea Moscow wi be naizingwith Schmidt is "ony the beginning according to oneSoviet energy speciaist

In this internationa contet the faction of Sovieteconomists who favor restoration of an internationagodbased mo netary system has resrfaced

In May the jorna Economic Sciences carried anartice virtay endorsing the Eropean Monetary System created by Schmidt and Giscard as a workabepoicy to secre godbacked stabil ity for crrencies andcredit fa<iities that in opposition to those of the

Internationa Monetary Fnd cod promote rea indstria growthhe Economic Sciences article is especiay signii

cant becase the Soviets and Schmd wi be discssing

l ly

On Jne 23, the Central Committee o the Soiet Commnist Part adopted a resoltion olloin a report toits plenar session b U S S R orein inister ndreiGromko he resoltion said in part

In the recent period aggressive imperiaist forces haveconterposed to the positive rests [of detente apoicy dictated by their refsa to take into accontthe reaites of the modern world Imperiaismwod ike to pt the b rakes on the objective probemof word renovation he eaders of the NO miitary boc above al the United States have adopted a

poicy of tipping the eisting miitary baance in theword in their favor and against the Soviet Union thesociaist contries and internationa detente and thesecrity of the peopes

From this folows imperiaism's ine of steppingp the arms race neashing provocations againstsociaist and other independent states activatingNAO miitariy and epanding its fnctions as a tooof imperiaist diktat rying to impose their wi onother states the ring circes of the United States

0 terationa

the separate and joint roes of East and West in solvingthe problems of hird World co ntries

At the anna smmit of the Conci on MtaEconomic Assistance (CM EA the Soviet boc economic organization which met in Prage ne 7 SovietPrime Minister Aeksei Kosygin said tha economicsanctions against the U S S might case "temporary

dict ies in specic projects bt they old not stopindstrial growth pans "even if the United Statesadministration pt every singe American podct onthe forbidden ist

Kosygin a so addressing the probem of raw maerias and fe sppies otlined a program for the nextve years whose pivot is achieving highe prodctivitythrogh introdction of new technoogies Soviet oildeiveries to Eastern Erope for eampe wi remainat the 90 eve of two milion barresday over thenet ve years bt at the same time the rst reslts ofthe 37 gigawatt ncear power constrction schede for

Eastern Erope wi begin to come on ine he CMEAhas aso decided to lanch a projct to prodce nuclearfast breeder reactors with an eventa perni capaciyof 3 gigawatts

embarked on the road of economic sanctions' andscaling down of scientic technica cltra andsports ties

here is rapprocheent of the aggressive circes ofthe West above al of the United States with theChinese eaders taking place on an antiSoviet basisthat is hostie to the case of peace he partnership ofimperiai sm and Peki ng hegemonism is a new dangeros phenomenon in world poitics It is dangeros toa mankind inclding the American and Chinese peopes .

he Central Co mmittee epresses con dencethat there eist objective possibiiti es and soc ialpolitica forces capabe of preventing a side into a newcod war' ensring norma peacefl coeistenceamong states with differing socia systems and preventing the threat of word thermoncear coniche road to the sotion to this task is the road ofnegotiations based on strict observance of the principe of eqality and eqal secrity his fy appies toSovietAmerican reations as we

his point of view is winning advocates amongeaders of state both in Western contries and amongthe members of the nonaligned mo vement The relaation of tensions has p t down deep roots in internationa ife today and rea conitio ns eist for preserving it as the dominant tendency in word poitics

EIR y 980



Cte eat e 'ot spoby Danil Snid and Mk Budan

In a recent coumn in the New York Times WilliamSare made some interesting speculations on the waysand means by which President Carter might try to revivehis sagging popularity before the election and the convention. One of his scenarios' called for a crisis around

which the natio would rally to the President.' Sareposed a situation where: "The President gets a smallclean quick popular war with no draft needed.

The events of the past week suggest that the columnistwas close to the truth but wrong in one essential element .There are in fact now several hot spots ' which have beenseverely heated up to the point of crisis and war. But it isdoubtful whethr any of them will remain if heatedfurther a "small clean quick war. All of them have theimediate potential of proelling Carter's little crisisinto a major superpower confrontation of global dimensions.

The irony of Mr. re'sand Mr. Carter'smiscalculation on this point is that the outcome of thePresident's effort to use available "hot spots to restorehis popularity would undoubtedly be the oppositethedestruction of Mr. Carter politically. The most likelyoutcome of any confrontation over avai lable "hot spo tswould be at best a massive strategic humil iation as theUnited States backed down from the awesome militarysuperiority of the Soviet Union. Of course if Mr. Carterchose he could make himself if not the next Presidentthen the last President by ordering nuclear war .

The key points of crisis are ve principal hot spots:the Caribbean; southern Africa; the Persian Gulf; theMiddle East; and Southeast Asia. In southern Africamajor contingents of South African troops have invadedAngola and remain within Angolan territory at thismoment. In the Persian Gulf speculation continues of arenewed raid into Iran. In the Middle East the Begingovernment narrowly surviving a vote of condence isactively threatning to draw Syria into a war triggerdoff the Lebanse situation. And in Southeast Asia thephony war on the haiCambodian border has set intomotion a U.S.Chinese alliance poised against the Vietnamese who have rm Soviet backing .

EIR uly 5 980

The two most active and dangerous hot spots areclearly in the Mi ddle East and Southeast Asia where allthe major powers are deeply involved and the jump froma local war' to thermonuclear confrontation is veryshort. It is these two situations then that we examine in

more detail here.

outheast AsiaThe events on the Thai border last week were variouslydescribed in the world's press as a "Vietnamese Invasionof Thailand a "war or an " incursion. Whatever theactal extent of the enagement between Vietnamese andThai troops along that illdened border it died downqickly. Was it a phony war? Or a skirmish before alarger batt le?

The evidence uggests that both are true. The chargesof larescale Vietnamese invasion and aggresion donot stan d up to the fasat this point neither the extent

International 4



o etnmese orces nor of their penetrtion into Thirritory is veried by ny objective reports. The timing he phony wr coming just two dys before the nnuloreign Ministers conference of the Assocition ofuthest Asin Ntions (ASEAN in Kula umpurses suspicions tht the Thais were quick to mke thes of the sitution to force into line memers ofASAN prticulrly Mlysi nd Indonesi who rencreingly inclined to seek negotited solution to thempche problem nd ASEANIndochin detente. rnss of Wshington nd Peking in similrlyn for unitd front aginst etnm (nd theS) ws lso ll too convenient.

oeve the stge is now set for a much lrgerconict in Southest Asi tht would indeed mke thev pper s skirmish before the rel wr. Wht out of the border bttles side from the diplo-i rebuf given H noi t the ASEAN meeting ws n llnce of the U .S . n d Chin. In effect there wsan ctivtion of the de fcto militrystrtegic lignmento te two tht hd tken an importnt step forwrdrer in the yer with the visit of Chinese defense chiefn o to the U. S.

th e Chinese nd the Crter dministrtion hve recisely the sme formultions in their policyr etnm nd Indochin. Crter in his Rome nd recent high level commentries in the Chi-n ounist Prty press hve linked the Afghnistntin with Vetnm nd Kmpuche. The formul-n b Crter nd gin by Secretry of Sttee beore the ASAN meeting w tht the U.S. r to resist "direct Soviet "ggression in Afstn n "indirect Soviet ggression by Vetnm uche.

pointing of these two situtions nd theirg s been ccompnied b y declrtions by b oth n Wshington of their rediness to come to the o hilnd (or ny other Southest Asin n- "ttck by Vetnm. The Chinese hve mder tt this mens direct Chinese ttck on etnm ttment ccompnied by threts still mde to "techm second lesson nd concretized by the contin- reence of lrgescle Chinese forces on Vetnm sorern border. According to diplomtic sources inw elhi there were bout 00 seprte violtions ofenee territory including irspce nd nvl y Chinese forces crrying out probing ctions the week or so before the incidents on the Thi-pcn border .

r Wshingtons prt the dinistrtion quicklyunc their intention to seed deliveries of rmstslight wepons rtillery and tanksto Thi-n including n irli into Bngkok nnounced by theh H ouse. More ominous though were the reportedrks of U.S . Amb ssdor to Thilnd Morton Aro

nertionl

mowitz in meeting with Vietnmese Foreign MinisterThch in Bngkok; he "reminded Thch tht the M-nila Trety the U. S. mutual ass istnce trety which wsthe bsis for S EATO (the defunct Southeast Asi TretyOrganiztion i s still in force.

A summi in Peking , anda meeing in Moscow

The clerest indiction tht something much biggerthn mere border skirmi shes is in the works is the newstht Carter will mke a sudden tripto apn on uly 9The ostensible reson is to ttend the ocil sttefunerl for the recently decesed Premier Ohir withaccompnying eplanation tht the Stte Deprtmentfelt it importnt "t this time to emphsize the importnce of our ties with pn. But s ws the cse iththe Tito funerl the occasion i s convenient pretet forsomething else.

The importnt event will be meeting in Tokyo withtop Chinese ocils prticulrly Prime Minister ndPrty Chirmn Hu Guofeng. Tht this is the cse isdemonstrted by the rrival in Peking on uly 6 ofAssistnt Seretry of Stte fr Est Asi RichrdHolbrooke for tlks with the Chinese leders previousto the Tokyo meetingno csul encounter there!Interestingly enough lso present in Tokyo will be theThi Premier Generl Prem nd probbly the Austra-lian Prime Minister Mlcom Frser as well.

The Tokyo gettogether is probbly mtched inimportnce by n interesting gthering now going on inthe Soviet Union. With lmost no previous nnounce-ment the three top Vetnmese ledersPrime MinisterPhm Vn Dong Prty leder e Dun nd DeputyPrime Min ister n Vetnmese militry leder GenerlGipre ll now in Moscow. Also there t the smetime is Kmpuchen Foreign Minister Hun Sen. Theeis no nnouncement so fr from either Moscow orHnoi tht strtegy session is going on but clerlythese mn re not there for summer vction .

Te view of the etnmese ccording to ig h leveldiplomtic sources in both New York nd New Deliis tht the Thi events were prelude to possible lrge-scale Chinese invsion of Vietnm. At the lest Vet-nmese plnning is premised on tht possibility. Theborder ghting ccording to these sources ws imedt breking up stging res long the border wherelrgescle reinforcement for the Chinese controlled PolPot Khmer Rouge nd the other Khmer Seri nd SonSnn groups were being fnneled cross the border.

The This re ctively iding this reinforcementeort including the much publicized "reptrition ofome 8,0 Khmer refugees who cme from the SKeo cmp cmp controlled by the Khmer Rougend recruiting ground for fresh levies for thei forces.

The riny seson is now coming on in Kapuche

R uly 5, 980



traditionally a breathing space for the antiVietnameseforces aer the dry season and a time that makes iteasier to intensify their activity inside Kampuchea. hai-land has become not only a rear base area for themwith ready spplies of food medical assistance andarms from China bt also a place to impress manpower.

The Vetnamese moves were intended not only as awarning to the Thais against this kind of increasingly

open assistance to Chinese military attacks on Vietnamand Kampuchea but also to actively break up thestaging operation. In this they seem to have partiallyscceeded althogh at some diplomatic cost .

What comes net may well be determined in Tokyoby Peking and Washingtonwhile Hanoi and Moscowprepare their own response. The stage is set anddangerously so.

e Gola froWashngton analysts warned this week that Israel is onthe brink of launching an escalation in ebanon with theintention of drawing the Syrian armed forces into com-bat. Seeking to undermine Syria's military capability

Israel may trigger a wider regional war and U.S.Sovietconfrontation in the process these sources warn.According to one wellinformed diplomatic source

what is unfolding i s the following "Is rael will launch apreeptive attack with or without White House sup-port directed at Syria and Jordan beginning with prov-ocations in ebanon. As a result of the conict thePersian Gulf will be closed and oil eports shut down.Then the U .S . milit ary will intervene in the Gulf uinthe apid Deployment Force and world war will likelyensue.

ER July 15 1980

A Washinton trateit with cloe ties to the Iraelefense Forces and leadin Israeli thinktanks reportedthat "there is an increainly vocal faction in Iraearguing that now is the time to draw Syria into conictto knock the Syrian capability out for a few years sinceIsrael's budget cuts and economic crisis will enable theArabs to achieve ualitative superiority in the net fewyears.

he key thinktank peddlin this line the strategistnoted is the el Aviv Center for Strategic Studiesheaded by former Israeli Military Intellience chiefAharon Y ariv.

"Yariv's boys actin as a tihtknit militaryintelli-gence specialinterest roup have released a report ur-ing that Israel must interene more vigorously in eba-non he revealed. "he hope is that the reime inamascus will be undermined and that the Syrian armyin the words of the report will be dealt a tellin blow. '

A July 1 article in France's Le Figaro indicates thatthe Washington analysts' forecasts have beun to come

true.Citin both Palestinian and Western diplomaticsources Le Figaros Beirut correspondent Jore Stock-lin reports a massively steppedup Israeli interventioninto ebanon includi n raids aainst Paletinian campsnorth of the city of yre; inltration of the Shi'ite popu-lation of southern ebanon to expedite the loistics ofantiPalestinian operations; th e setting of booby traps incars at Palestinian refuee camps; and at least 10 asas-sination attempts aainst Palestini an political leaders inBeirut.

Stocklin links thi pattern to simultaneous destabili-

zations inside Syria capped by recent report of anassassination attempt aainst Syrian President HafezAssad . e notes Syrn chares that the destabilizationsare bein coordinated by Israe the Muslim Brother-hood and "certain Arab reime.

In response to this situation Stocklin report theSyrian press is revealin that the Asad reime is "eek-ing a new euili brium i n the reion and a trentheninof its militar olitical and economic caacitie.

Specically thi is likely to me an the etablishmentof a Syrianoviet "treaty of friendhip and cooperationmodeled on the militaryecurity pacts the Soviet have

signed with South Yemn and thiopia and the devel-opment of "closer and cloer Syrian Soviet relation s.Stocklin's account is corroborated by sins of the

reat mutual concern bein shown by Syria and theU. S. S. R. over the deterioratin tuation.

A Syrian pres editorial lat weekend called for a"ualitative upgradin of SyriaSoviet relations. OnJune 27 the Soviet military newpaper rasnaa Zvedareported that the chief f staff of the Soviet navy GeoriYeorov wi soon visit Syria "at the invitation of theSyrian armed forces.

Intenational 4



dEp oert reuss

S uThe Islamic revival threatening t Middl East hs its roots in Islam but in barbaric pre-Islamic cults of yore, Frenchauhr Larteguy proves.

What do Anwar Sadat and ya-tollah Khomeini have in common?

The answer is not to be found in

Islamic religion but in their perv-ersion thereof That is they areboth cultistsworshippers of theancient irrational cults of humansacrice and antiscience supersti-tion that dominated the preIslamicworld and whose revival today inthe guise of revolutionary Islamthreatens the livelihood and verysurvival of the people of the MiddleEast

Bizarre? Hardly Sadat has ad-mitted as much himself

Take for example WalterCronkite's interview with Sadattelevised by CBS o n une 28 . Enti-tled "Sadat's Eternal Egypt theinterview was a revealing hourlongportrait of Sadat that proved theEgyptian president to be a worship-per of the ancient cult of Isis ur-ing the interview as Sadat andCronkite slowly made their way upthe steps of the Temple of Isis inphilae Egypt the headuarters ofthe Isis cult during the period of

Ptolemaic Egyt and the RomanEmpire Sadat proclaimed his in-tention to force Egyptians "back tothe land and launched a diatribeagainst Lenin for proclaiming thevirtue of "steel and electricity

Sadat then declared that historyoperates in thousandyearong"cycles in which empires rise andfall to be replaced by successoremires destined to live out the

44 Interntional

same fate B ut said Sadat Egypt iseternal and its mission in the worldis not to contribute technoloy or

new knowledge but a "moral awak-ening and a cultural lesson to theworld drawn from Egypt's cultrid-den Pharaonic heritage

Pointing to a pair of Egyptianlaborers performing irriationwork with technoogy identical tothat used well before the birth ofChrist Sadat commented that sucritual labor has tken place nEgypt for thousands of years ndwould continue in te future forthousands of years to come

At the end o te nterveCronkite asked Sdt n ser-iousne ifhe intends to bud pyr-mid for hs tomb in ord to contnue the succession of the phar-aohssands The reestablishment of tebarbaric Isis cult in Eypt s well sof related cults throughout theMidd le East is at the core of a cen-turiesold project to destroy onceand for all the notions of proressand development in the Islamic

world along with the concept ofthe viability of independent sover-eign nation states

In a recently publ ished book en-titled Go Gol an Bloo Frenchauthor ean Larteguy documents ingreat detail the reemerence of theancient cults in modern uise Inparticular he rips the curtain othe socalled Islamic revival sweep-in the Middle East and exposes it

for what it is: a revival of the cor-rupt priesthoods of the preIslamiccults

Country by country Larteuydescribes how the mysticism andirrationalism of the ancient cultsare bein reconstituted to conuera reion that once was the world'scenter of scientic discovery Hedescribes the emerence of a mod -ernday Is lami c version of the Isscult in modern ypt nd docu-

ments Sadat's faith n the ncientods The Fanists are discussedas modernday cultists commttdto reviving the ories o oencin alliance with the Zionist cutstsof Israel whose antecedents are tobe found in the preSolomon odYhweh and the aeod drive toestabish a greaterHebrew kin-dom reaching t the Sinai and theuphrtes

In prtcuar Lateguy focuseson Irn where Islamic fundamen-

tlsts such as Khomeini are usinthe nme of Allah to plune theuntry and the entire reon into apreIslmc ark Ae n which corrupt and powerful priesthoodas in ancient times controls bck-ward pesnt populations

The continuity between the an-cient gods of preIslamic Iran andtoday's Khomeiniism lies in thefact that Islam never fully succeed-ed in wipin out the corrupt priest-hoodthe mobedsof the ancientdays The mobeds never really dis-appeared but evolved into today'sreactionary mullahs with the pre-Isamic god Zarathustra becominamalamated into Isam' s Allah

Khomeini concludes Larteuyis applying the identical proramof the ancient priests to restore Iran"as in ancient times to an aricul-tural life that stops practicin thesciences and the arts

ER uy 1 , 1 980



DMx by Josena Menendez

b bThe no-shows hurt the border goveors' meeting in CiudadJuarez, but its Texas and Nuevo Leon sponsors beefed up theirlobb.

Readers of this column will remember that in a tense meeting inMonterrey at the beginning of

March, the governor of th e state ofNuevo Leon, Alfonso Martinezminguez, and his Texas counterpart, Bill Clemets, prevailed onPresident Lpez Portillo to attendwhat was to be a gala rstever parleyof all ten USMexico border governorsfour on the US side ad sixn the Mexican

Well, the boder conferencecame and went une 2627 butthee was no Lpez Portillo Threedays before the event his oce in

formed Clements that the Presidentcould not t it into his scheduleNo love lost, apparently; Clem

nts told the press that Lpez Potillo's presence "would have somewhat dampened the proceedingsHe hurried to say that this wa s because the security and protocol requirements would have been heavy,and anyway Lpez Portillo "had nocounterpart therejust "us governors

Lpez Portillo was not the only

noshow erry Brown sent his regets with a tese emak that"these kinds of meetings don 't leadanywhere Brown has tied in thepast, though repeated pilgrimagesto Mexico, to establish himself asthe geat peacemaker in U S Mexic relations following PresidentCarter's unrivald record of disaster He clealy esented Clements'bid to seal the mantle

EIR uly 5 980

There was also noshow RobertKreuger, AmbassadoratLargeand Special Negotiator for US

Mexico Affairs His absence wasparticulaly noted since his counterpart from te Mexican ForeignMinisty, Andres Rozenthal, wasthere B ut again, it didn't take a lotof political savvy to figure out thereason: bad feelings going back toKreuger's unsuccessful senatorialrace in 978

Add to this some astonishingstatements on energy policy fromboth sid

Cristobal Aldrete, the Oxford

accented Hispanic who heads theSuthwest Regional Border Commission and was the highest Carteradministration official present,garnered the 980 ames RSchlesinger Gas Negotiation Memorial Award for his statement that"We cannot permit the Arabs toblackmail us The U S and M exicohave as much or more oil than theydo Therefore it seems to me thatwe must put into effect a production policy between our two nations

so that we are mutually selfsucientHardly less provocative was the

proposal reported from Martinezominguez and Baja governorRoberto de la Madrid, to permitUS capital to invest in Mexicancrude rening operationsstrictlyverboten under Mexico's nationalist laws on oil development

But the day was far from lost

for the meetings' organizersFirst, s ources close to Clement

report the governors iacionat being able to establish his "i lleglalien proposals at center stg inthe quickening debate on the isuon both sides of the border hecentral element in Clements' pack-age is a "guest worker programmodeled on uropean experiences

Secondly, the meeting gave ur-ther shape to an emergin "bordrlbby, of which Marinez omi n-guez, Clements and de la Madridare primary spokesman The den-ing i nterest of the lobby is uildingup assembly plants and raw materials processing in border "reezone environments hey dontusually mention it, but legalizedgambling and such offshoots asgun and doperunning are part othe same "Hong Kong ast pack

ageA faction in Mexico's IndutriMinistry (SPAIN las yr trito cut back on the assembly plnprogram, but a big "maquiladorapromotion fair hosted by the M ex-ican government in Nuevo Laredolast week makes it clear the greenlight stays on here

It's in the raw material procesing area that the big ght is brewing The free zone advocates wantto ake Mexican energy at Mexico s

cheap domestic prices and plug itinto plants on the US side, like desalination plant in Brownville,Texas that would ship water backto Mo nterrey

Lpez Portillo is known to viewsuch arrangements as an erosion ofsovereignty and potentially a national security threat And thiscould h ave been part of his refusalto show up at ua rez last week

International 45



Nal

Kennedy and Cartershake hands on deregSenator Ted Kennedy and Presdet Jm-my Carer found muc to agree on lastTuesday as tey joned togeter for teceremony of te sgnng nto law of tetrucng deregulaton bll. Te bll,wc elmnates te prncple of partyand ordered marets n te naton'stransport system, s projected to collapse

large sectons of te trucng ndustrytroug cuttroat competton. It wassoldly baced by bot Kennedy andCarter, as were blls deregulatng tebanng and arlne ndustres, and teupomng bll for deregulatng te ral-roads.

Te CarterKennedy duo, wose leg-slaton was opposed by te trucng n-dustry and te Teamsters Unon, smuglycongratulated eac oter. "Tere wasone senator wo wored on ts legsla-ton for at least two years . . . sometmesalone, sometmes facng dscourage-

ment, but never gvng up te concept,sad Carter, ntroducng Kennedy."Well, tere's no debate ere abouttrucng deregulatn, repled te Sen-ator.

Crss s thetalk of the townA party trown last wee at a Wasng-ton, D.C. Cnese restaurant to onor AlBarron o te Wasngton Barron's re-

port was attended by a crosssecton ofte cty's poltcal currents, rangng fromRcard Vguere and Amercans forDemocratc Acton spoesman Joe Rauto labor leaders from te AFLCIObuldng trades, te Unted Autoworersand te Teamsters.

Tal centered on poltcs, and teconsensus was tat Jmmy Carter s abeaten canddate. Few people evenamong s nomnal supporters tougtte Presdent as a cance aganst Ron-ald Reagan n November.

4 National

An attendee at te party reportedowever, tat t was ucanny tat nearlyevery person expected Jmmy Carter tolaunc some nd of mltary adventureor oter confrontaton to save s Pres-dency. One person was tang bets onwere te blowout would come. Te con-sensus was tat Carter would mae somemove n te Persan ulf, most lelybefore te Democratc conventon n Au-gust Remared anter attendee: "Tstown s gettng te stenc of London n1939 rgt before te war started.

LaRouche to LULAC:stop Carter's unnecessarydepressonDemocratc presdental caddate Lyn-don LaRouce, addressng te 51st an-nual conventon of te League of UntedLatn Amercan Ctzens (LULAC) nWasngton, D.C. June 28, called on tenaton's spancs to wor wt m nreversng "Carter's unnecessary depres-son. In addton to LaRouce, poltcal

canddates Jon Anderson, arry Com-moner and Vce Presdent Walter Mon-dale were among te nvted speaers.LULAC s te n�on's oldest and largestspanc organzaton.

LaRouce compared te U.S. eco-nomc stuaton to tat of a man "woas jumped out of te 40t story wndowof a syscraper, and as passed te 36tstory. Labor Secretary Ray Marsallcomes out and says, Well, we ave justdropped, we are about to go up.' Itdoesn't wor tat way. It s no good total about mprovng te condton of

people wo are less advantaged weneverybody s gong nto a depresson. Weave to rst cange te polces wcare causng an unnecessary depresson.

e gave partcular empass to teneed to provde productve jobs, m-proved educaton, and a drugfree learn-ng envronment to te naton's yout."It's not just gvng jobs . . . . I proposeto you tat te moral purpose for teexstence of our naton over te comngtwo generatons s tat our naton mustrally tsel as a leader among ts alles n

te global tas of orever endng poveryand msery on te fact of te eart. Leevery cld say, My le s mportant ote entre world.'

Death cult sponsorsAntnuclear studyAn antnuclear study sponsored by Laur-ence Rocefeller's Lndesfarne project srecevng promnent coverage n several

publcatons, ncludng te Councl onForegn Relatons journal Foreign Af-airs Study autors Amory Lovns, L.unter Lovns, and Leonard Ross arguetat te desred goal of endng all nuclearenergy producton as been largelyaceved because "t e free market nownds nuclear "too expensve.

Lndesfarne s assocated wth tegrowng deat cul movement, wch sdrector Wllam Irwn Tompson con-nects explctly to te collapse o gh-tecnology energy orms and ndustralgrowt. In an artcle enttled "Medta-ton on te Dar Ages Past and Present,

Tompson wrote, "Scence s dead . . .our entre cvlzaton s dyng. But wats deat? Consder te Yog: Wen estops s eart conscously, e s dead bytecncal denton but actually e s re-born, for n tang te energy ou ocardovascular nto te central nervoussytem, e experences ecstasy and en-lgtenment. e does not de, e dancess deat. So now we need to dance outte deat o ndustral cvlzaton andexperence, not ts panful apocalyptcdestructon, but ts joyous mllennal de-structurng.

Senate puts leas onRapd Deployment ForceTe U.S. Senate July voted up anamendment to te scal 1981 DefenseDepartment autorzaton or mltaryprocurement wc would ln te WarPowers Act to any deploymnt by Pres-dent Carter of te Pentagon's new RapdDeployment Force (RDF). Te move, f

R uly 5 980



adopted by the House, wold becomelaw two weeks thereaer

The sponsor of the bill was SenatorExon of Nebraska A spokesman inExon's oce told that "The Senatorfelt very strongly the need to rearm theWar Powers Act Seven ships will arrivein Diego Garcia immediately Te Ma-rine Corps is being brought in by stagesCongress must reassert itself

A wellinformed source on CapitolHill said, "We want to make sure Carterdoesn't pop off with the RDF There's agreat deal of concern that he will take anirrational act for political purposes

Only seven Democrats voted againstthe amendment Among the leading Sen-ate Democrats in favor were Senate Ma-

jority Leader Robert Byrd, Armed Serv-ices Committee Chairman John Stennis,and leading Senate Armed Service com-mitteemen Jackson and Nunn TheHouse is expected to bring the measureto a vote shortly aer it reconvenes July21

NSF plans coveruof Wrzup ReportThe national science Foundation (NSF),a subbranch of the federal gvernment,was scheduled this week to produce a setof recommendations for the Wite Hou-se on how the Unied Staes sould re-spond to the challenge of te SovietUnion's successful education mobiliza-tion, a challenge revealed in the extensivereport by Professor Isaac Wirzup of theUniveity of Chicago

Presiden Carter, however, has madeno statement on the issue, and in fact e

NSF report is being kept top secretReached for comment, William Bla-miede of the NSF, who acted as projectdirecor for he report, refused t provideany details of the report's recommend-tions "This is a condential report, hesaid "We are not authorized to let any ofit be known until given explicit permis-sion by the White House

Te content of the NSF report wasindicated by a second report on the subject, written by the Stanfrd ResearchInstitute (SRI) for the NSF The SRI

EIR uly 15, 1980

report amounts to an "objectively castcoverup of the education gap betweenthe US and USSR Committing suchelementary statistical frauds as the con-clusion that "the percentage of Sovietsecondaryschool gradates admitted tohigher educational establishments hasbeen consistently declining since 1965,the reort omits he factadmited byauthor Catherine Ailes to that thedecline reects a trebling of secondary-school graduates!

Dra Mondale'commttee formed

The announcement came this week thata commitee has been ocially formed todra VicePresident Walter Mondale asthe presidential nominee of the Demo-cratic Party "We want to open the con-vention, declared r Raymond Emery,an Arizona professor who heads thecommittee Emery stated that the groupincludes several goveenors and state rep-resentatives, and some "big moneyfrom California, Arizona, and New Mex-ico "It started in the Southwest, theeffort to oen te convenion he added

The group has concentrated on elect-ing Kennedy delegates t the Democraticconvention; Emery himself is one Thesedelegates, he said, will ght for n openconvention and ten swing over to Mon-dale The overriding purpose is to stopCarter at all costs "I hope he doesn't getus into a war, mery exclaimed "I hopehe just steps down

Meanwhile, a coalition of leadingDemocrats and fundraisers for ScoopJackson, Ed Mskie, and Mondale have

met and formed an umbrella "Commit-tee to Free the emocratic Delegates foran Open Convention The group willregiste with the Federal Election Com-mission to raise money for the effort

The New York ost this week char-acterized th group as "launching a newpush to ditch both President Carter andSenator Ted Kennedy for a fresh face te new group claims its only goal is toallow Democratic delegates to vote theirconsciences at e convention, not to fa-vor or oppose a particular candidate

f

• FORMER PRESDENT Ger-ald Ford comments tha "It willbe a tight race for eiter Carter orReagan to get those 270 electoralvotes and if Anderson won for orve states, as he well may, I tinkthe next president ill not be se-lected by the people on Nov butwill be picked by te poliicians indeals in smoeled rooms whenthe elecion is used into eHouse of Representatives Ford mde his remars in a June29 speech to e Pacic CoastBilders' Assoain conventionin San Francisco

• CAPTOL LL sources saythat the Federal Election Commis-sion will make a major moveagainst incumbent Congressmenthis fall, pin teir reelecincampaign trogh extensive a-dits The FEC will tare Demo-cratic Congressmen wo tey ex-pect will try to spend eir way oufrom under Jimmy Caer, a weavotegetter, at he op of e icke

• RONALD REAGAN's senior

advisor on national security, Ric-ard V Allen, reieraed te presi-dential candidate's opposition omilitary conscription, in a meetinwih reporters in Wasinon,DC June 26 Reaan oses epeacetime registration bil aPresident Carter is abou o sininto law, but does not inend omake a campain issue of i, lensaid

• TE DEMOCRATC la-form apparently has a convinc-ing resemblance to a piece of ar�

bage Last week, wen e Dem-crats nished wriin i, aer nhours debain te ne ins fthe deindustrializaion olicies iconains, te commitee won pand members wen off o ave afew drins A janio, seein emessy papers ha were nlydra of te jscoe pa-form, assmed it was merely rasand tossed it into te garbae ai

7



W Jiy arter dtroye Deocrc

Party

by L. Wolfe

If the 198 Presidential election were held today withJimmy Carter heading the Democratic ticket and withRonald Reagan as the GOP standardbearer the Democratic Party would receive its worst trouncing in morehan two generations

A special team of EIR correspondents conductedinterviews with top po litica leaders in both arties fromthe national oces to the ward level includ ing delegates

to the upcoming Democratic Nationa Convention Inaddition the results of this year's primaries were reeamined

What emerges is the shape of a political disaster forth Democratic Party Its cause according to partyofcials is Jimmy Carter who is variously described asthe weakest Democratic candidate to come down thepike since John W Davis in 924

Carter campaign strategists have made no bonesabout their campaign strategy for the general electionshould Carter be nominated in August They plan toattempt a repeat of their 1 976 success The electoral votes

of the farm heartlan d west of the Mi ssiss ippi with a feweceptions are to be conceded to the "westerner RonadReagan Carter the "South's favorite son plans tocapture nearly all the electoral votes below the MasonDion line and in the "border sttes With the help oforganized abor the Carter camp says that they wicapture the Northeast or a major part of it and the keystates of the Midwest This gave Carter a bare majorityin 976

But 980 is a totay different balgame The EI Rfound that aer threeandonehalf years of Jimmy Car

48 Nationa

ter the Democratic "bueprint for victory was a sureticket to disaster eagan would indeed take the farmbelt and the Far West But Jimmy Carter will not carrythe South in fact he stands to be thrashed losing somestates for the Democrats for the irst time in history Andin the Northwest and Mi dwest Carter is in real troubleTop abor ocias who turned out the vote for theDemocratic Party in 976 providing the crucial margins

in such states as Ohio and New ork say they won' t beable to do so this time around The Carter administrationhas become so unpopular with the rank and le oforganized abor that AFLCIO ocials say that whileabor wil stil vote Democratic it will do so by sucheceedingly narrow margins that Reagan will carry muchof America's i ndustria heartland

The EIR also found that a Carter ticket will speldisaster for Democratic congressional candidates Aeading Democratic Party Capitol Hill source concededthat with Car ter heading the ticket the Democrats epectto lose more than 0 House seats This and other sources

say that the GOP wi minimay come close to overturning the Democratic majority in the Senate If Carter isthe nominee in 980 the Democratic leadership says thata GO majority in both houses of Congress is possibley the 982 eections for the rst time since the 19 0s

It i s this reaiation of an impending disaster that isfeing a rebelion of the party rankandl e and sectionsof the eadership agai nst the Car ter reeection committeeand it's whoy owned entity the Democratic NationalComittee The revot is occuring on several levels indifferent arenas of cobat

ER July 1 1980



Key sections of the Democratic congressional lead-ership are in trench warfare with the White House Overthe course of the last two weeks the Democratic majorityin the Senate and House have killed the Energy Mobili-ztion Boardone of the centerpieces of the Carterenergy pckageand approved controversial fundingmeasures opposed by the administration The Senateleadership went behind the back of the White House to

propse its own timetable for tax cut legislation If the Democrats lose control of the Senate all com-mittee chairmanships go oer to the epublicans Sena-tors with seniority and power such as Senators Jackson(DWash who heads the energy committee ussellong (Da who heas the nance committee andloy Bentsen who heads thejoint economic committeewould lose their posts Senator obert Byrd (DW V the Senate Majority eader who has been an outspokenopponent of many of Carter's policies said bluntly thathe hd no desire to become the minority leader ttack-ing the White House and the epublicans for their

political ineptness Byrd stated that as a senator he wasforced to "live in the real world and deal with "realityAll but a handful of the Democratic Senate and Houseleadership have been uietly putting distance betweenthemselves and the sinking Carter ship A notable excep-tion is House Speaker Tip O'Neill (DMass who hasshown remarkable delity to Carter eports persist thatO'Neill's strange behavior may have something to dowith a particular blackmail item that the White Ho use isholing ove r the speaker's head

These same Co ngressmen are furious with the Carter

EIR July 15 1980

Phoo: UPI

controlled DNC They report that the DNC is refusinto adeuately fund Congressional campins an isplanning to tie funding to Carter loyalty oths ithCarter hedin the ticket many cnits htr incumbent or not say that they will have to run more thn15 points ahead of the party standrd bearer to keep therhead above water Without mjor funin this ill beimpossible

Or ort y

The Democratic state party apparatuses re in otldisarray State party chairmen meetin in Ne York ltweek expressed open hostility toward the Crter NCwhich is making moves to seize control of their orani-zations Again the reality principle is opertive here Noone would mind if the DNC s competent n if thDemocrats were elding a strong nationl ticket But thDNC is widely regarded as the party' s worst enemy nJimmy Carter is the worst possib le canidte rerlessof incumbency and the power of the White House

As several local party ocials report Carter's incum-bency and his control of the Democrtic Nationl ommittee is mostly being put to use for political thuoperations to keep recalcitrant Democratic leers inline Our reports show that resentment against Crter byparty ofcials is running higher than against any Democrat President in memory including yndon Johnsonbefore he stepped aside in 968 It is an open secret thatmost state chaien and party ocials would prefrsomebodyanybodybut Jimmy Carter heain thenationa l ticket

Nationl 49





The Reagan sweep of November 1 980

Key

ojected Reagan victory(includes Alaska)

Droj' C", �cto,

Contested

Local Democratic canddat theatened

I

Hw]y ou;"O ' lE ,

, ;. ify

th, Caer campaigns Key Staes

Willi W. Fi, Dcic Py ci- c ll:

Th map shows a proc wp by Gov. of maor rgn o f th t cn h F W farm bt th nutr Mw th S. Icar many t whch Pt rt c win-dntf as Ky Stt by th cmp.The more bra Northat rgy ctt time but cou d vry w swng to a n prt u t thAnderon factor otabe are th stat tht where ocal Dmocrat-govnr also face a serio us hra of dfat f th Dm ct wta Carter ticket

A : I'm pledged to Carte, I think the delegates shoudbe bond, I 'l l go Cate on the st ballot. Cate too pecent in o pimay.

Q: If Pde Cae i the omiee, can he take yo

a? Q: Wold you athe see the election thon to theHoe than Reagan?A: w b a a-fogh batle. If Reaga chooses

H wa Ba a V ce- P eid et , that's i t , ' s o v e . . . .

Q : H w y f abo opeg p the convention?

EIR Jy , 9

A : Se, it's a Democatic ose. . . . I have no dout

that he Democats ould choose the est manano necessaily Cate.

National



Q Not Carter? o you mean Kennedy?A : Hell no Mondale, perhaps, or Jackson I wasJackson's West Tennessee campaign manager in 1972.

A ranking Texas emocratic ofcial told a repor ter thefollowing:

Q What is your expectation for November, if Carter isthe nominee?A : If the race is Reagan versus Carter, it will be a toughrace Texas is always close It will be a tough racebecause o f two factorthe rightconservative eementsare a strong factor here Also the Republicans arespending like crazy I predict that Carter will carry thestate

Q What about the large uncommitted vote you hadthere?A : There is a traditional group of people who vote

emocratic for sheriffs, etc, but in the presidential racethey go Republican There is also some problem withthe farmstraditional ems went uncommitte

Jessie Bankston, Louisiana emocratic chairman, madethese comments:

Q If President Carter is the nominee, can he take yourstate?A : Four years ago at this time Carter was down 20points in the polls below Ford and on election day hewas still behind 47 percent to 3 percent, but he took

the state by 3 percent

Q Why was that?A : Well, it's hard to poll the blacks and lbor in thisstate; they're very decentralized, and they don't showup in the polls and then they always go emocrat

Other emocratic ofcials' comments included those of

Mississippi Goveor William Winter: "Carter is in troubleit will be close; North Carolina State executivedirector avid Price: " The Carter ticket is in grea

dculty; and Kentucky Sa te emocrat ic chairmanRobert Cobb: "It 's the lesser of two evils i 's disheartening, the alteative of Carter versus Reagan

The MidwestBecause Carter is in deep trouble in the electoral-

vote megastates of the industrial Midwest, he is certainto lose Indiana and Ohio and could easily lose Illinoisand Wisconsin Rocketing unemployment, heavist inthis area of the nation, has labor, minority, and evenindustrialist Democratic constituencies furious with

ational

their local emocratic leaders Only some serious R-gan mistake on labor issues, such as strong advocacy ohis righttowork position, could help Carter here

In emocratic senatorial races, Indiana's fourthterm veteran Birch Bayh is rated as a top, "vvulnerable target by the National Republican nato-rial Committee Illinois veteran Adlai tevensons atis up for grabs on his retirement, and emocrats arworried iouri enator Thomas agleton h -ready distancd himsel from Carter

A n ofial of the Illinois emocrat ic State CenralCommittee told a reporter:

Q Will emocrats in your state suffer from a Cartrticket?A : ook ! I m th lawyer for the UAW in this state, oudon't think Im not aware of this, do you? Im tryin torun the ixon for enate campaign down here andwe're in ral eopardy with Carter at the top of th

ticket Im very upset about this We discussed a totalRepublican sweep o f senatorial and other local races inIllino is at one of our meetings recently

Q I s this what enator Byrd meant by saying he has todeal with reality and the President does no t?A : Byrd was right This is reality We're going to haeto pick up the pieces of a destroyed emocratic Party inNovember Jimmy Carter is a mean man, he don'tcare what he has to do to win this election, and hedoesn't care what the end result is on the party

Q Wo uld you like to see an open emocratic NationalConvention?A : Certainly, but the delgates are already bound toCarter

Q Aren't you aware that Rule H will not be bindinuntil it is ratied by the convention itselA : No, I didn't realize you have to understand thatanyone who isn't staunchly for Carter is totally out othe information picture out here at this point The ntirregular Illinois emocratic Party either lost or dcidthis year not to run as delegates although they tradition-

ally run The party is being broken up

Olivia Maynard, Michigan State emocratic chairman,made the following commens:

Q If President Carter is the nominee, can Reagan takyour state?A : Now, yes We hope not in the all This is not aReagan state, and luckily not a state in which vnRepublicans like Reagan Reagan is very simplisticHe has no way to deal with the economy or with fori

ER July 15 1



plcy.Of curse frnkly, the questn s nt s m uch tht

peple wuld be supprtve f Presdent Crter rplesed by hs fregn plcy, ethe r, but the prspect f ersn even less caable wuld terrfy mny vters nh stte . . . .

n Ohio emocatic leade said: "f the economy doesn'ttu aound, th e au to industy is st ill sagging andbaing any damatic good news in foeign affais, Cateis not going to cay Ohio . n ndiana Democaticleade stated bluntly: " ndeson will have little effecthee, but eagan will cay the state.

The Nrtheast

Crter wuld prbbly tke rgnzedlbrdmnted Pennsylvn nd Wes Vrgn, nd ls lberlRhde Islnd nd sschusettsunless the ndersn

r LRuche cmpgns brek thrugh n ths trdnlly Demcrtc re.

'Congremen worried-the DNC wont helpThe following inteview with a leading Democatic Paty ocial on Caitol Hill was conducted July 2.

Q Wht s yur perspectve fr the Cngressnlrces? w mny ses d yu ntcpte tht the

Demcrts wll lse nd the Republcns wll gn rvce vers?A : There re 3 pen sets where peple re retrng,whch we re ferful but. Prbbly there re 1 020Republcns wh hve strng Demcrtc chllengers, whch culd men Demcrc gns. Therere ver 0 Demcrts wh hve tugh Republcnchllengers. The Republcns wh stnd t wn re nFlrd, Illns, Knss, nnest, Wscnsn, Texs, tw n Pennsylvn, New Jersey, chgn , Oh,d fur n Clfrn.

The Demcrts we re rred but nclude the

fllwng sttes nd dstr cts: rzn, dstrct 2; Clfrn dsrcts 5, 2 1 , 35; Clrd srct 3; Flrd,12; Indn, 2, , 1 0, 1 1 ; Iw, , 5; Lusn, ;rylnd dstrct 8; sschusetts, ; chgn, 310, 12; ssur, 10; Nevd, the tlrge set; NewJersey, 3, , 7; New Yrk, 2, 3, 2, 27; Nrth Crln,5, , 11 ; Oregn, 2, ; Pennsylvn, 1, 3, 7, 8, 12;Rhde Islnd, 2; Suth Crln, ; Suth Dkt, 1 ;Texs, , 8, 12, 2; Uth, 1 ; Vrgn, 1 0; Wshngtn,5, 7; Wscnsn, 2.

EIR uly 15, 1980

ut the rest f the regn s es r btlegrund r wrse fr the Demcrs. egn culd welltke New Jersey, wth lbr swnng cnservtves nthe dwest ptern, nd ls tke te rdtnllyRepublcn ne, New mpsre, d Vermnt, llsmll n elecrl ves. New Yrk nd nnectcut reshpng up s tw f the bgges nnl btles wth

pssble Lberl Prty swng t ndersn n ew Yrktht wuld esly pu Regn ve the tp. rylnd s bttlegrund.

Dominic Baanello, New Yo Democatic Paty chaiman, commented as follows:

Q If Presdent Crter s the nmnee, cn he tke yurstte?A : Thngs re very clse n New Yrk f the elecnwere held tdy. Of cure, there s evry prspect hePresdent wll put sme thngs n rder by Nvember,

wth tx cus, ther ecnmc reslutns. nd whenthe elecre relzes tht Regn s smplstc, hs n

Jm Wrght s n tugh rce. s chllenger hsrsed ver 1,0; they re purng n mney. Thentnl cnservtve PC [plcl cn cmmttees] re helpng. I thnk they dnt thnk they cndefet Wrgt, but they wnt t keep hm hme ndnt cmpgnng fr ther Demcrts.

Q Wht but Crter hedng the tcket? rent lt

f Cngressmen wrred but tht?A : st Cngressmen wll keep ther stn� frmhm . They wll hpe th ther cnsttuens rememberher Cngressmen nd ke u ther frustrtns nthe tp f he cket, th s, w th Crter. Crer wllhurt lt f Senrs.

In sttes lke Indn there re cuple f Cngressmen w hve t ugh rce, especlly f egnwns bg . yh s up fr reelectn nd he wll hve tugh tme. Fr peple n the fence, Republcn tdewnt help. If the vte s fr Regn, they they wllvte the Republcn tcket. If ndersn s n the

bllt t wll help ushe wll brng ut Demcrtcvters.Jmmy Crer wll be ghtn fr hs lfe n the

Suth. The rl jrty rgzn hs regstered tw nd hlf mlln pele t ve, lrely nthe Suh.

The Jewsh vte s n lnger Demcrc. TheRepublcns hve spent qurter f mlln dllrsfr tps t Isrel nd ds n Jewsh ppers. The DNCs nt dng nythng t help us.

Nn 53



nswers nd s nt vble Presdent wheres thePresdent s try ng hrd

Q D yu see the pssblty fr n pen cnventn?A: Well I d ntcpte rules ght. I certnlyntcpte the peple wh dnt wnt Crter gettng tlest mnrty reprt ut f the Rules Cmmttee thsweek nt the r f the cnventn. ut Im Crter

delegte nd Im cmmtted t Crter nd I thnk fyu run fr cnddte yu ve mde cmmtment tyur electrte.

Q ut Ive herd lt f lcl Demcrtc cnddtesfer eng swept wy by Regn l ndslde.A: Is tht wht peple re syng ntnlly? Wellyure bslutely rght. Were btng ur nls hee nNew Yrk. Our entre U.S. cngressnl delegt swell s ur Stte Sente nd ssembly re up frreelectn. Lsses culd be very sgncnt . . . .

Q Wht effect wll ndersn hve n yur stte?A : If he runs n the Lberl Prtydevsttg. If Iwere [berl Prty leder] Ry rdng nd my prtyws t the lwest ever nd I sw n pprtunty trevve t Id lk very hrd t ndersn.

Q Wht hve th e Lberls gtten frm Crter nywy?A : Thts wht everyne wuld lke t knw. Fr thtmtter I dnt knw wht my prty hs gtte frmhm n New Yrk ether.

Q re yu syng the DNC sn t runng the cmpgn

well n New Yrk?A : re yu kddng? Im terrbly cncerned. Rght nwthe DNC h mybe three peple n New Yrk whcnsttute the Demcrtc effrt. The Crter peplehve nthng gng. I tld them the tme hs cme tget ff ther butts nd strt pullg t tgether. . . .

Q Wht but sme drmtc dplmtc crss trescue Crter?A : Yes yes. Im hpng fr tht thts the tremenduspwer fthe ncumbency.

Notable also are the comments of Democratic Statechairman James Fitgerald about Connecticut : "A bout asclose a state as there is in the nation He predicted aDemocratic victory "by an edge assuming the A ndersonfactor is "minimied by November One Maryland Democratic leader said that "conoic issues are starting totake root much more strongly in the state TheDemocratic Party has to sell a very dcult case and avery dcult set of policies New Jersey Sate Senatepresident Joseph Merlino said simply: "Reagan wouldwin

54 Ntnl

te House strate

Carters plumershit the 'key states

The Demcrtc Ntnl Cmmttee nmnlly theeecutve bdy f the Demcrtc Prty hs been reently trnsfrmed nt subb rnch f the Crter /Mndleelectn cmpgn. The DNC dent cre but ndwnt be supprtng Demcrtc sentrs cngressmen

ny mjr prt f the prtys pprtus r even theprtys survvl. The DNC wll nly be supprtng Jm-my Crter.

Tht s the successful result f the Crter/Mndlecmpgns cretn f "plumbers unt wthn theDNC t ensure tht even befre Crter relly hs thenmntn ll prty resurces wll be t the Crtercmpgn s dspslthus ensurng th t he des get thenmntn.

The unt knwn s Cmpgn Supprt Servces sheded by DNC Eecutve Drectr Les Frcs utlrecently the Deputy Chef f St f the Crter/Mndle

Cmpgn.Frncs hs used hs cntrl to desgnte 25 "KeySttes r "bttlegrund sttes upn whch the DNCwll cncentrte resurces. The Key Sttes re n theSuth the ndustrl dwest nd NrthestwhereRegn s epected t reverse Crters 197 vte. c-crdngly these sttes re where Demcrtc mchnesre rpdly fllng wy frm Crter enugh f themtht by ugust 1 1 , the Presdent culd lse the nmn-tn r f he gets t fce msses f lcl cnddtesdsssctng themselves frm hs ntnl t cket.

T ensure gnst bth develpmens Les Frncs

hs sent CSS "Crdntrs nt ech of these sttes.The crdntrs ll frmer Crter cmpgn rgnz-ers re nw n the DN pyrll nd hve rders t tkever the stte prty mchne t cntrl lcl Demcrts.Sttes nt desgnted "Key wll get n nncl rther supprt frm the Demcrtc Ntnl Cmmttee.

Fr lcl cngressnl nd ther Demcrtc cn-ddtes lredy very nervus but runnng under Crter tcket Demcrtc Ntnl Cmmttee sup-prt ests. "The DNC sn t gvng the Sente CmpgnCmmttee red cent sd Wshngtn surce fml

R July 15 1 980



ia with the embattled position of vaious Senate Democats up fo eelection in Novembe .

"Wen you'e about to lose contol ove the Senate,this is inecusable. Thee is temendous anger in theSenate, especially when they see the epublican NationalCommittee's huge cash infusions into the epublcanSenate aces, ta geting ou seats .

With the clealy implied theat that Democatic can

didates at state and local levels wll dsassociate fromCate if he gets the nomination, the CSS unit nowcontolling the DNC is taking ove all aspects of statepaties' pepaation fo the Novembe elections.

CSS "Coodinatos in the key states will "coodinate fundaising . . . geneal election stategy . . .schedule campaign speakes . . . and link the Pesidential, Congessional and local aces, says Les Francs.Obviously, di stancing oneself fom Cate could becomeimpossble fo a local candidate unde tese condtions .

Lockin he noinaion

The othe poblem is Cate's nomnation itself.DNC Campaign Suppot Sevices is working diectlywith the Cate/ondale campagn's Delegate Tackig secton unde Tom Donilon. It is the purpose ofDonilon's unit to pevent an open Democratic NatonalConvnton o any other development thatenng Carte's enomination. Pressue, blackmal and any otheravailble mens ae being used to pessue delegates tovote Cater on the rst ballot .

lmb

Cate stategists unde Democatic NationalCommittee Eecutive Director Les Franc s have designated "ey States in which Cater must wn totake the overall election. ccordingly, the Cartercampaign has deployed "plumbes unts nto thosestates unde what ae called "DNC Coordinators.Those named so fa include:

idwesCurt Wiley, ichigan. Fomer coordinator, chgan, Wisconsin and ayland primaes.

Jerry Austin, Ohio. Fomer coordinator, Oho prmay.

Scott Burnett, issoui. Fome chief, Whte HouseSpeakes ueau.

EIR July 1 1980

Fancis has made his entire Democatic NationalCommttee eld s taff avalab le to Donlon for delegatepessuing.

Says CSS head Francis, "We ae of couse basngou plans on the belef that the President wll been oiated . . . . Just in case, they'e making sue.

Fancis is a p rotege of Califonia Cate/o ndalechaiman ichard O'Nell. In 977 Cater made hm

Deputy Assistant to the Presdent fo CongessionalLiason . In the sping of 979 he became Deputy Whteouse Chief of Staff unde Hamilton Jordan. In Octobe, he became Deputy Chief of Staff of the Cater/ondale Campagn in charge of Field Operations. Onay he was confrmed as DNC Eecutive Diecto.

"The contest for the Democratic pesidential nomination is all but ove, and the Presdent h an nsurmountable lead White told the pess. F o this, SenatoEdward Kennedy's campagn diecto Paul Kik andpess chief James Flug demanded White's esignationand even "civil and cimnal posecution fo misuse of

his position in the paty.The et of the CSS sta membes ae also "Cate's

men.Chrs rown, Deputy Director, was 1980 coordna

to of the New England prmaes fo the Cate campaign; Tacy Gallaghe, Directo of Voter egistation,was New Hampshie primary coodinato; Ca l Stubel,Diecto of Vote Targetting, is fom the Cate/ondale Field Staff.

SouhRobert Beckel, exas. Former coordnato, Texas prmary.

Walter Moore, Lousana. Former head, Labor forCate.

Jay Beck, Alabama. Former coordnato, Alabamapimay; fomer member, Whte H ouse staff.

Wiliam Romjue, Vrgna. former coordnator, Iowa,Utah, o tana and Nevada prmares.

NortheastJoel McCleary, New York Former coordnator, NewYork priary ; former ade, Lloyd Cutler, Whte HouseGeneral Counsel.

The Carter campagn wll soon name chefs forplumbes units in Illno s, Wsconsn, Florida, NorthCarolina, Tennesse, Kentucky, Pennsylvana, Connecticut, assachusetts, New Jersey, nnesota,Cal frna , and Washngton State.

Natonal



tate chen

Protests againstCarters DNC

"O it ig the geeal electio is called Campaig Sppot Sevices ad those of yo who ae fomstates whee thee ae tageted Seate aces aleady koweactly what CSS is abot said Les Facis EectiveDiecto of the Democatic Natioal Committee He wasaddessig the assembled chaime of state Democaticpaties at a New ok meetig e 6

Most membes of te Associatio of State Democatic Chais ideed kew eactly what CSS is abotit' s aCate "plmbes it The state chaima accsedFacis ad paty atioal chaima oh White oftig the DNC ito a "Committee to Reelect theesidet epesetative of o othe Democat I thecose of the meetig calls wee aised fo a opeatioal covetioto not eomiate Cateal-thogh the state chaime eve sed the phase "ope

Agaist sch setimet White Facis ad theisppotes tied theats A y disset theates to "weckthe wopaty system ad the Democatic aty saidWhite He theateed to take cotol of all fdaisi gad waed of a acig ctoff i Novembe fo aystate paty ot coopeatig

"I'm shocked by what I've see hee said oeKeedy delegate "This is spposed to be a ope paty They'e tyig to stampede s thogh the covetio I thi thee i s a setimet of evolt bewig

'N ondebatabe istructions'• Moley Wiogad was modeato of the pecove

tio meetig He had athoed DNCpoposed dele-gateselectio les that wold bi the delegates "Thisdiscod mst cease he stated bltly

A sccessio of state chaime ose "We have gotto have a les chage o these delegate selectioplas said Maylad's Rosalie Abams "They'emakig the paty less aessible to the votes Nevadavicechaima Vigiia Cai declaed "The media hastake ove the electio pocess ad the paty has beeesticted to oe cadidate

Wiogad defeed to Les Facis"who'll biefyo o how the geeal electio will be Facisdeclaed "o sta woks de specic odebatableistctios o do othig ivolvig pecovetio

6 atioal

activities but to devote thei time nd effot slely tthe geeal electio We ae of couse bsig u pnso the be l i e f that the e s ide t w i l l bee omiated

He cotied: "We ited to place i each f 5Key States' oe flltime paid DNC staff peson, thelp yo state paties the geneal eection. Thewill have etemely boad dties helping cointe

yo fdaisig assistig yo to aise moey fo vteegistat io assistig yo i mkig yu stegeeal electio plas Most impott, they will seve as the lik betwee the Pesidetial Congessin a ad local aces i yo state

He spoke of 00 phoe baks atioally, poling30 votes a day ad a massive vote egisttindive

Agai the state chaime ose to potest. "How inhell do yo dee K ey States' a d how will the DNCcoopeate with the plas the sate paties aleady haei motio? demaded Daid ice of Noth CaoliAlabama chaima ayles added the cetal thought:

I'd like to say that we have eceived o copetio whatsoeve fom the atiol paty . . Wehave seatos ad cogessme who ae goig tolose thei jobs We have Democats ig cm-paigs p and dow o state who inten todissociate themselves flly fom the DNC dfom the Cate/Mo dale ampaig and inten towi i Novembe i spite of Cate/Mo dale otwith thei help

The Cate campaig's aswe is to sed i the CSSplmbes "Why did't yo eve otify s that thesepeople wee comig dow? cmplaied Ketckychaima ob Cobb "We tied to get yo o thephoe said Facis "That's eally kid f you,etoted the sothee "o staff has bee mkincal ls ito my state tellig people ow the campaignwill be ad o oe calls me

"We have a geeal electio to , sid Fcis."It is o hope that whe we desigate a coodinto,that peso ca wok coopeatively with he stte pty.Howeve thee i s no povis io fo sig offfo youto appove o disappove whom we send i "esides ,

added Wiogad "The DNC ca oly bget mneyfo yo if yo le a electio pla with Les

"I do 't desta this whole poeue, siDavid ice "We aleady have o ow eletion p-gams; we have ou ow staff. We do' t eedtaff, justmoey Ae yo eqipped to help? How do o evenow what plas we have? No iqiies hae beemade

Replied Facis: "lease emembe o staff isbeig set o t ot to jst do o e thig o aoth, butto coodiate eveythig Ideed

EIR Jul 1 180



The es ft

The aotdeleges ptions

Wth lttle mr thn ve weeks t g befre theDemcrtc Ntnl C nventn, fullscle brwl hsbrken ut n prty rnks ver the effrts f the Crter /ndle cmpgn cmmttee t frce delegtes t vtefr ther "pledged cddtes n the rst bllt .

Depte sme cnfsn n the nws med, the termsf the ght re frly smple. Over the curse f the lstthree yers, the Crterntrlled Demcrtc NtnlCmmttee DNC) ckd up set f prpsed rnterm rules fr dptn by the 980 cnventn. Therules were prt f the mplementtn f the prty'srefrm f the delegte selectn prcess. ured mngthe new "stndrd pertng prcedure ws ttllynew rulerle Hwhch fr the rst tme n hstrybund delegte n the rst bllt t vte fr thecnddte whm he ws elected t represent by prmryelectn, stte nventn r cucus.

In ll pst cnventns, delegtes vted s ther cnscencs dctt, smetmes gnrng th results f prmres. nd tht trdtn, despte cntrry prtesttns frm rdcl "Demcrts, s entrely cnsstentwth the ntn f elegtes s repubican representtvesf the mercn peple, empwered t use ther nfrmed judgment t mke the best selectn f nmneepssble frm the stdpnt f the ntnl n terest.

- not yet lawThe Crter /ndle peple, recgnzng tht they

re n truble wth ther wn delegtes, wnt the rlepssed. They re even msbreng peple tht the rule slredy n effect. The fcts re tht H must rst bedpted by the rules cmtee. I t then must be pprved

by the flr f the 1980 cnventn. Untl such eventsccur, t s t prty lw, nd the cnventn s n fctpen.

Crter peple sy tht they wll ry t pply rule Ht delegtes wh mght wnt t vte gns t the prpsedrules n the grunds tht t ndcts tht they wll ntvte fr whm hey re pledged. The prvsns f Hprvde fr wverng delegtes t be remved prior t vte by ther cmpgn rgnztn, nd replced bylterntes. Prty sces, especlly thse sscted wtheffrts t pen up the cnventn, sy tht ths s ttlly

EIR July 1 1980

llegl.me med hve wrngly stted tht the ght t

brek H s purely n the nterest f entr Kennedy.t s true tht f ll delegtes re bund, Kennedy hs nchance t the nmnt n. t s ls true tht some f hspeple re nvlved n ghtng t prevent the dptnf the "bndng rule.

But EIR fund nverstns wth Demcrtcfcls nd elegtesth Crter nd Kenney delegtestht Kenney's chnces fr the nmntn rerted between "sl nd zer, ccrdng t e prtynsder. Nnetheless the ght gnst the rules hs thesupprt f brd ers f the prty. If ule H r tsequvlent s rejected by the cnvent n, mny peple sytht the cnventn wll brek pen. It wuld be free tturn t smebdy ther thn Crter r Kennedy. In fct,the verwhelmng setment mg thse ghtng fr npen cnventnfrm Clfrn unnsts t Tesfrmerss tht they wnt chnce t "thrd chce.

Eort widensFr tht resn, the mvement fr n pen cnven

tnnw n bttle gnst the Crter/n dle effrtst rm thrugh s much brder thn the "Kennedy cmpgn. mng ts bckers re peple whmght supprt cp Jcksn, Wlter ndle, Edmund uske nd drk hrse Lyndn LRuche. It snt the bckers f Edwrd Kennedy wh re the strngest rgnzers fr the pen cnventn, but key bckersf cp Jcksn , wh h s yet t nnunce hs ntentnsfr ugust, nd LRuche, wh s the nly cnddte tpublcly nd repetedly cll fr the pen cnventn.

sscted Press lst week relesed the results f pll f Demcrtc delegtes whch purprtedly shwedtht the Crterprpsed rulesncludng Hwuldbe vted up. ut delegtes sy tht P delbertelymsphrsed ts questn, nd therefre mnufctured tsresults. Prty cls wh el wth fcts, nt mnufctured news, knw tht the cnventn s nw "lnngthe ther wy. Crter cmpgn cls re prvtelyvery wrred tht they wll be defeted n the rules ghtnd mght lse cntrl f the cnventn .

The rules cmmttee meets July 8 but nthng wllrelly be reslved there. th the Crterprpsed rules,ncludng H , nd versn f the 1 976 rules wll bereprted t the r f the cnventn.

The rel bttle wll tke plce n ugust 12 when therules cme up fr vte, the cnventn tself wll thendecde whether t wnts t hve the ptn t chsesmebdy ther thn Jmmy Crter r Ted Kennedy.

Crter hs cmmtted hs cmpgn rgnztn td everythng pssble t ssure tht the rules re pssed,ncludng thretenng delegtes. He s bcked by theDNC. s ur reprt hs shwn, hs ppstn s theDemcrtc Prty.

Ntl 7



D

'The deegates can

vote their coniencee fowing are excerpts from an artile appearing in theJune 27 Washington Post by former Michigan Congressman James O'Hara. A Kennedy delgate, O'Hara waschairman of the rules committee in 1 976 and was the partyparliamentarian in 1 972 . O 'Hara has aunched an organizing effort for the open convent ion , with the backing ofseveral factions in the emocratic Party.

Few seem to have notced the little paragrph tuckdinto the tempoay convention rules that have been

oposed by the Democratc National Committee. Itobably looked ike another technical povision morelegal language with a yawn of a name : Proposed Rule F3)c)

But the ittle paragraph tells a great del about thestruggle fo the 980 Democratic presdential nomin-tion which is by no means over Indeed it tells you whyit is not over regardless of what is popularly belevedabout "binding state primary laws r stte party rules.

The simple fact is this: Those state laws and statepaty rules have neve dictated the votes of ny delegatesto any Natonal Democratic Party Convention since the

fist one was held in Baltimore in 832. While thosepovisions s urely carry importnt weight they have nev-er evented any delegates from voting for whcheveresidentia l andidate they deemed best for the party andthe county whether on the rst ballot or later

That is doubtless why the Cartercontrolled Demo-cratic National Committee has been inchng toward adamatic attempt to change the convention ruls. Somemight be tempted to call this a Carter effort to "threatenor "stack the convention while others mght simp ly seeit as "smart politics by the President's men . But there isno qestion that the temporary proposa is a stunning

departure fom the pst: It would empower a presidentialcandidate to emove any delegate who once epressed aeference fo him but whse vote the cand date might nolonge feel condent of gettng .

n othe wods if President Cartero for thatmatter en Kennedyeven thought that some dele-gates in their coumn might change their minds durngthe balloting in New ork they could simply boot themout and replace them That would be the effect if thelittenotied paragraph known s Proposed Rule F3)(c)beomes a pemanent ule at the August convention and

8 ation

its fate might well decde who will be this year's Demo-atic nominee for President

* * *

The Cate eole obviously have a fondness foF3)) even thogh it could reduce the DemocaticPaty's onvention to a deliberative body with little moeto deliberate than delegates do at the Supreme Soviet Infat the same paragrph ws poposed in 1 977 by Carter

opeative Rick Hutchison to the paty' s Cmmission onesidential Nomination and Paty Structure known asthe Winograd Commission and it was adopted thoughmerely as one of the arty's delegate seection rules

They were well awae tht the supreme authoritygoverning the national convention is the conventonitselfthe permanent rules it adopts shortly after itmeets This is recognized in the Democratc Part'scharte which sttes that "The National Conventonshall be the highest authority of the Democratic Partyand it has been given added weight by the U .S SupremeCout. In its Cousings v. Wigoda decision in 97 the

High Court ruled that actions by national party conven-tions supersede state sttutesThat of couse is why the Carter forces ae strug-

gling to overturn the convention rules: They know fullwell that national Democatic Party conventions havelways recognized that delegates sometimes mus t makepainfl choices between conicting oblgatons thatwhat was true in the snows of a winter primary my nolnge be tue in the heat o f a summer convention thatcircumstnces peope and opinions change.

The proposed ule is dicult to believe. t would notonly be deeply offensie to those o f us who support Sen.

Kennedy and his effort to stop the Cate camp fromchanging the ules ths l ate n the game . It wou ld be anaffront to every delegate

These ae the people after all who have long paidtheir dues to the prty n ot merely with money but withtime often many years spent attending paty meetingswalking doortodoor to promote the party's canddtesand platforms manning its phones to help raise fundsand doing any other chores necessary They are thebackbone of the party

They know what politics is about. They know thepeope in their own neighborhoods and towns and coun-

ties and partis. If they are bound by state rovisionsthey are not gong to change their votes merely becauseof some passing whim But they do have minds They arenot chidren If Pesident Carter is detemined to treatthem like children ready to yank delegates suspected ofmisbehaving why have them there to participate n thepesidential nominatio n process at all?

Whether the delegates in New ok are willng toswallow all this may well be the decisive factor in hobecomes the Democrtic cadidate for President thisyea

ER Jul 15 1980



I gress

A revlt againstthe President

Oneandahalf months befoe the opening of the Democatic Paty National Convention in New ork City nantiCate evolt is sweeping the DemocratcontrolledCongess The evolt stepped up ate the trouncingaccoded Cate at the ecent Vnice summit As oneleading Capitol Hill souce declaed Let' s face it Vnicewas the tning point Cate was humiliated he wassmashed at Venice People ae no longe esigned toaccepting cetain defeat in Novembe by enominatingCate

On Thusday while Cate was en oute back to thenited States Senate Majoity Leade Robet yd (DWVa joined by Democatic senatos convened pess confeence to announce that Senate Democratshave begn woking on a ta cut package s cheduled tobe eady be September The move came as a completesupise to the White House

Senato Byd announced that he had commissionedTeas Democat Lloyd entsen to head up a newlyfomed Senate Task Foce on Economic Policy whichincludes the senatos to daft a new economic pogam Finance chaiman Russell Long of Louisin thendeclaed that he would convene heaings after the July ecess on the ta ct measue which would be between$030 billion n a calculated ebu to the White HouseLong declaed that he wou ld seek advice fom the besteets in the county in fashioning the ta package

On uly the House Ways and eans Committeeannounced that they too would be holding heaings onoosals fo a ta ct shotly ae the holiday ecessh ose ad viosy efused to discuss the issue outo t to th Whit ose " av to del with awold of eality declaed Senato yd in eplainingthe ta ct plan

The White Hose has been scuying about in desate effot to contol the evolt While White Ho useeconomic policy advisos meeting on Fiday June 7decided the administation should popose a ta cut plant a nothe igh level sokesma aid on nationa ltevsion two das late that sch a plan was not in the

EIR uly 980

cads Tesury Secretry iller on Iues nd Answes June 29 said our preference would be tht it bestudied ne t yer outside o f he het o n elecion yer

On July ody Powell tol d repotes tht the WhiteHouse had no plns to submit a ta cut plan et onthe same day Pesident Crter met with Co ngressionlleades saying that he hd not ruled out support for Congessionl t cut in 98 and geed to set up a oint

committee of the dminitrtion nd Co ngress to conside the cutHoweve Congreionl ources would only sy tht

Cate had not uled out t cut this year nd theyae in no mood to compromise wih him on this We' llwok with them but we're not going to wait fo themdeclaed entsen The Senate plans heaings ae theecess and to go ahead with thei own bill by Labo Day

g rss ms gistDmcrtic Nti mmitt

The evolt hs sufced on other issues Ten Democatic sentos led by Robert yrd and Scoop Jcksonon June 27 lso b lsted the ledership of the DemocaticNationl Committee fo te DNC's moves to launchcout cases to pevent John Andeson from giningballot status in a numbe of states It s a wellknownsecet in Democtic ledership layes tht the DNC'scampign camouaged s ntiAndeson ws consciouly designed to id Anderson by giving him enormous pblicity and ntional media attention Jcksonclled the DNC's move foolish nd counterprodctive nd issouri Sento Egleton waned tht theoperatin will bckre

As thee developments demon strte the ntiCatercmpign is being led by Sente leders yrd andJckson who represent the prty's lrget ntiona cuentthe modertconervtive mintrem of the prty with powerful lborethnic nd entepreneurilbusinessmn base yrd mority leder nd Jckson as chirman of the Sente Energy Committee ndsecondnking Democrt on the Sente Armed Services Committee ae two of the most prestigious Democats in Co ngess Additionl olt s ecently included thebipatisan drive to epel Crte's gin embrgolaunched a week ago by GOP Sentor Dole of ansthat ecuited 0 cosponsos with the Demo catic frmbelt epesentatives and sentos in open revolt ginstCate

The House by the whopping mgin 2323 defeated Cter's Eney obiliztion ord (Ewhich ould be ble to wive fedel nd tte laws topush the constuction of col gasication nd elatedegessive enegy technologies' associated with Cate'senegy pogam A majoity of the House Democaticdelegation voted against Cate o abstained in the oovote

Ntionl 59



En Insr illi Engdl

Syfu, ByThe synthtic fuels boondoggle, the Strat egic PetroleumReserve, and the from the Ne York Knicks have onething in commonthey're all wet.

his past week Congress and ouresteemed President made ino lawthe $88 bi llion nigmare known asthe Synthetc Fuels Act of 1980 a

litlenoticed amenment requiringthe government to resumefeeding the socalle Strategic Pe-troleum Reserve (SPR) as com-pounded the nigmare.

The medium and longrangeeconomic implications of his leg-islation are saggering. Te act al-locate $0 billion over the netscal year to establish a U .S . Syn-thetic Fuels Corporion a $3 . 1 bil-lion bnk to fund enery conserva-tion and solar power a $ 1 .4 billion

biomss prgram (such froniertechnology as burning wood cipsand feces) nd te SPR revival .

Jimmy arer refers proudly tothis bill as te key to his nationa lenergy program. Te arge is000 barrels of synfuels by1987 and milion barrels by 1 99.The new corporation can spend upto $88 billion over the net veyears in a cobination of purchaseguarantees direct loans and loanguarantees for private development

of a black muck caled sale oilfrom the mining crusing andheating of a shale rock called marl-stone.

The word's largest known con-centraion of tis sale lies in a1 70 square mile section of Colo -rdo Uta nd yoming estimat-ed to contain a poenial 00 billionbarrels maybe billion recover-able. The U.S . now consumes 7 bil

60 ational

lion barrels of oil per annum.Sound good? O n e contrary.

Massive federal ta monies will gointo estern rocks wen we are

swimming in far ceaper and moreecient oil and gas resources andnuclear echnology.

hat is the logic of our Con-gressmen? Tey just passed telargest single ta in history $7billion over en years o be aenfrom wellead product ion of crudeoil. Shrewdly misnamed e ind-fall Prots Ta this will ensure lossof an estimaed 840000 barrels perday because independent oil pro-ducers who do the bulk of eplo-

ration can't pass on e cost. utinstead of eempting te indepen-dens he same gang of Congres-men adop synfuels to add backmaybe 0 barrels some yearsfrom now at an asronomical costrelative o te gas and oil e ine-pendents could provide ceaplyand immediately in greaer quan-tity.

The synfuels strategy wa de-signed by te multinational oilcompanies and Aspen Insiue

straegis Jon Sawill now num-ber two man at te OE wo wantto restrucure he American econo-my for zerogrowth and inend touse highcost energy as te chokepoint . That' s why Congress refusedto g uarantee any plow back of tista windfall for domestic oil pro-ducion to say nothing of the fewbillions that ought to be spent onnuclear energy development.

Perhaps to emphasize the no-energy caracter of e synfuebill ew Jersey's ballbouncingliral Senaor ill radley teamed up wi Louisiana's en-nett Johnson to add an amend-ment. The amendment revive estupid geopolitical strategy of Hen-ry Kissingerhe socalled Sra-tegic Petroleum ReservewicCarter energy ecreary Schlesingerinated in 1 977 to a goal of pump-

ing one billion barrels of federally il ino l dome. n rqire

the government o purcae100000 barrels of oil per day romthe Elk Hills field in Californianow part of te aval Reserve. Itwill take four years to reac 0million barrels at a cost to apay-ers probably i n ecess of $ billionper year.

radley's move makes no seneecept as a provocaion des igned o

get te Saudi Arabians to reduceproduction. Last summer Saudi oilminister Sheikh Zaki Yamniwarned that i f te U .S . resumed straegic reserve policy te Saudiwould cut back producion by million b arrels per day. If rde'little provocation does trigger aSaudi production cu i could in-ersect what my sources in te oilindustry predict w ill be a neartermcollapse of te adaffi regime inLibya. The ensuing caos in

naion would probably knock ouLibya's 1..0 million barrels perday in oil production. The com-bined impact would trigger JimmyCarter's Standby Emergency Ga-oline Rationing and given te con-dition of the U. S. economy i couldtrigger irreversible depresion.

ho w ill ten produce the cap-ital goods Eon will need for etrillion dollar synfuels sraegy?

ER July S 980



Cpn 180 Kleen Muhy

O to Europ, Andronbrng n th bg buckIndependent presidential cand idateJohn Anderson heads of to EuropeJuly 6 for a 2day trip to Israel,Egypt, Germany, France and rit-

ain Intended to sell him as a"statesman who knows foreign pol-cy better than Carter or Reagan ,as one aide put it, Andersons tours timed to oerlap with the Repub-cn nomnating convention July1418. Anderson will meet wth theladers of all ve countres hes vis-tng, ecept rench President Gis-card, who has not get agreed to ametng Anderson, a member ofthe Trlateral Commission, is als opcted to meet with some of the

Commssons European membersand with ran Josef Strauss, who scallenging West German Chan-cellor Helmut Schmidt in upcm-ng electons

At a July news conference,Anderson said he wants to eetwth allied laders to get "their ap-prasal, their perceptions of thepresent state of U S relations withthose countries I don t propose to

EIR July 15 1980

sit down and lecture them on whattheir role with the United Statesshould be It will be an attempt toget to know these people on a per-

sonal basisAnderson also announced, asepected, that he now has enoughmoney to formally launch his inde-pendent candidacy And how Ac-cording to the current issue of Business Week, Anderson is attractingbig bucks from fat cats and kng-makers in both partes

Among the luminaries nowopenly backing Anderson are rs Laurence Rockefeller and J Rich-ardson ilworth, nancial manag-

er of the Rockefeller fortune; An-drew Heiskell, chairman of Time,Inc; enjamin uttenweiser andGeorge all of Lehman rothers,Kuhn Loeb; rs onald Kendall,wife of the Pepsico Inc chairman;rs John Hay Whitney; Oppn-hemer und President Leon Levy;alomon rothers partners anielSargent and Robert erhard; La-ard rres partner eli Rohatyn;and Robert O Anderson, chairmanof Atlantic Richeld, drector of

the Aspen Institute, and p ublisherof the London Observer.

Cong oon : Docraor RaganPolitcal rumor crcuts ar bungwith reports that certain elemntsof the emocratc Party are strk-ing a deal with the Reagan cam-pagn in the epctation that theformer Californa Governor wi l besitting in the Whte ouse come

Jan 20One o f Reagans defense advs-ers tells us that ndviduals associ-ated with the Coaltion for a em-ocratc ajorty (Ca Wash-ingtonbaed organiaon whchspaks for the Jacksonoynihanwing o f the emcratic Party andis known fo its hawkish mltarypolicy and close ties to the ALCIOwill soon announce the for

mation of "emocrats and Inde-pendents for a New President Thenew group will probably includeCommentary magaine publisher

Norman Podhoret and his wife,idge echter, both C foun-ders It is epected to organieother emocrats to support Rea-ganin return for "favors onceReagan gets in

The ki nd of "favors this crewhas in mind wa suggested by Wil-liam Sare n his June 30 New Yorkmes column Noting that "thesense of the inevtablity of Rea-gan now permeates the federal bu-reaucracy, Sare tosses off ths tid-

bit: "The only emocrat ehibitingany sense of sernity is SenatorHenry Jackson, who once turneddown a Nion offer to be Secretaryof efense, and who is likely to beoered the opportuni ty to be Rea-gans Secretary of State

What Jackson thinks about thisis unknow n What s known is thatamong emocrats who mghtotherwise switch to Reagan f Car-ter wins renomna ton, there is stllstrong sentment for forcing an

open emocratc Party conventionin the hope of makng Jackon thepartys nominee

Reagan, meanwhi le, has startedto make public overtures to mo-crats In a speech to the Utah R-publican state conventon June 29Reagan caled on Republicans toform coalitions wth dsenfran-chised emocrats and indepen-dents behind hs presdential bid"Good grassroots mocrats havebeen coming to GOP ralle and

gathering in overwhelmng num-bers he said "They are willing tofollow the bnner of a party thatwill offer them something dffer-enta change of direction Andthis is our opportunty to put to-gether a consenu of ndpendntsand emocrats and Republcans,because the country out there isdemanding what you and I standfor

Natonal 61



Csol l

r

by Barbara Dreyfuss and Ssan Kokinda

Fusin withtunding intrducdLlon o mnd h buld-n of dmonronmodl m-nc connmn fuon rcorw nroducd n h Sn onJuly 2 u h llon connno ddonl fund for h clyr 1981 Dprmn of Enrybud. Th chf ponor, Sn.Pul Ton (D. ) nd h co-ponor, who nclud Frnk

Church (DId.) , pprnly nro-ducn h llon h ono chv polcl mnd opuh hd wh ncrd fundnfor h F 1 982 bud.

Th llon bclly ncor-por h ndn of h u-bum Common, n dvorypnl blhd by h Dpr-mn of Enry, whch rcom-mndd durn h l hl f of Junh h fuon bud b mvlyncrd. Th pnl d h h

only hn holdn fuon bck wh lvl of mony n prormnd h workn rcor could bdvlopd by 1990 nd dmon-ron modl wou ld b n plc byh yr 2005

Th llon nd h pnlndn r l mbou hn hprorm oulnd by Rp. kcCormck (DW.), who rlrh yr nroducd llonwhch provdd h fundn ochv workn dmonron

mod no ltr than 20 c-Cormck nd roup of prvpr mbld by hm fl hwh n Apolloyl pproch ofuon dvlopmn. A r dof 1 995 for dmonron modl mnnly fbl.

Ohr Sn coponor o f hTon lilton nc lud Rpub-lcn Pr Domnc N..) ndnory Ldr Howrd kr

6 Nonl

(Tn.), nd Dmocr HrronWllm nd ll rdly, boh ofNw Jry whr h Princon o-kmk rcor locd.

Snatr attacks bankingdrg cmmittSn. Robr orn (DN .C .), onof h fw Snor who oppodh wpn Fdrl Dpoory

In uon Drulon Ac, cmou wh hrp ck on h D-rulon Advory Comm e-blhd by h c o mplmn provon . I n mn dlv-rd on h oor of h Sn June28 h ckd rcn dcon byh comm whch hv furhrhur h lrdyrn vnnd lon, nd homebuldn n-duri nd clld for Conr-on l ovrh ovr h con ofh comm.

A u r con whch hvdcrd he fund own novn bnk whl ncren hhom mor r. ornd, "In hor, h druloncomm' con do no m ocom form wh h nnon of Con-r. Thy hv no ced n nordrly or rdul fhon nd hcomm h nord h fc hvn nd lon hv no cuhup wh commrl bnk n dvl-opn h nw powr ffordd

thm. L ' r til uffring fromhh nr mony co nd hyr lon wll $40 bllondcln n more lndn. . . .No only do I quon h conby h cmm, I lo m con-crnd bou drmnon nlht of the compoon of h d-rulaton committ. Only onmmber of h comm, Jy Jn of h Hom Lon nk ord,

rprn cler voice for savingnd lon nd hombuilding.on pon out that the

Lu of Svng nd Loan Bnkh ud Fdrl Reerve BoardChirman V lckr nd he deregu-laon comme for volaion ofhe deregulon ac, which gave ayer prod for equalzion ofbnk inr ratewhc thecommee ccomplhed in iwk, hrby dooming he hou-ng ndur.

orn concludd by ing,"n prevou powar receion,homebuldn ha been he forceleding u ou of the economclowdown . Th time, however fol-lowing he action of he dregul-on comm , hr i no guran- h we cn coun on he hou-ng cor for rong upwarddrwing power.

Snat rstrsrvnu sharing undsTh Sn vod 55 o 36 June 7o ror $57 2 1 m llon o h rev-nu hrng fund for he cl1980 bud. Th money for heupplmnl ppropron bllhd bn kn ou of h budgby h Sn AppropronComm. Th con w knby om of h unch budgcur, pclly mny Rpubl-

can. The chaenge on the Appro-pron Commee cu wrd by Sn. Lowell Wecker (D-Conn.) .

Oher upplemenal appropria-on vod up he me imencludd $9 7 mllon for h Grr-on Dvron Projc, n rronym of lk nd cnl n NorhDko. Alo $50 mllon w r-ord for h TnneTomb

ER July 5 980



bee Waterway a project critical fortransporting goos destined for ex-port down the Tennessee River.

The Carter administration hadhoped to phase out the entire reve-nue sharing program by next year.The appropriations will now haveto be reconciled with the versionpassed by the House.

Senate demandsquality armyThe Senate voted late on July 1 todemand that the Army ensure highquality personnel. By a vote of 89to ° the Senate adopted an amend-ment that cals for 68 percent ofArmy inductees to be high schoolgraduates. At the sae time it re-quires the armed forces to ensurethat no more than 25 percent ofinductees are of the lowest aptitudecategory possible for being induct-ed. This gure will be 20 percent

for each service after the rst year ."There is a eavy burden now

on the Department of Defense tod Vis declared a staff memberclosly involved in ensuring thepassage of this amendment. I t saysthat the Senate doesn't want any-thing but a quality army.

The amendment became part ofte scal 1981 procurement billwhich provides $51.9 billion to de-velop and manufacture weapons.The original proposal by the Senate

Armed Services Committee whichhad been authored by SenatorNunn (DGa.) had caled for a cutof 25000 men from the Army anda provision that the cut could onlybe restored based on the number ofhigh school graduates inductedeach year by the Amy. Nunn pro-posed that the Army should h ave abase line of 52 percent high school

EIR July 15 1980

graduates nducted yearly and forevery one percent above that re-cruited the Army would be alwedto increase its strength by 1250people.

Armed Services Committeechairman John Stennis (DMiss.)portrayed the cut of 250 soldiersas the last chnce to rescue the All-Volunteer Army. Senator Nunn ar-gued that reducing the size of thearm would enable it to put morestress on quality in its recruiting

and less on meeting monthly quotasfor volunteers. Senator Hollings(DS.C.) said that Nunn who hadearlier accused Army leaders ofcovering up the true state of thearmed forces had overreacted tothe coverup. "Once you get the sus-p ic ion of coverup . . . you probablyoverreact. I'm convinced it was asmuch an overreaction as an insidi-ous plot to hurry up the draft.

A move to table a motion tooverturn the committee's recom-

mendations was voted down by avote of 69 to 2 2. At that point Sen-ator Nunn sat down with SenatorsLevin (DMich) H olings (DS.C.) Dole (RKan.) a nd others who op-posed the troop cut and forged thecompromise agreement. The meas-ure now goes to conference com-mittee as the House version of thebill did not have amenments onthe quality of the armed forces.

House cuts Exim fundsThe U.S. ExportImport Bankcould b without meaningful fund-ing unless Congressional leaderscan full their pledge to restorefunds cut from a foreign a id bill onJuly 3 to hasten its passage. Late atnight July 3 just before the holidayrecess $355 million for the Exim-bank was deleted in the rush to

approve the $16.9 bllion foreignaid appropriation.The Eximbank funds were part

of a $528 million p acage that wasdrastically reduced by the Housewhere Republican leaders arguedthat the appropriation should avebeen part of a searate appropria-tions bill. That bill had ceare aHouseSenate conference commit-tee last February b ut was kept offthe oor of te Huse by Deo-cratic leaders who feared it wuld

be defeated.

Up pltis forpot trckrs?

Sen. Lawton Chiles (DFl.) as introduced legislation into te Seatewhich would vastly increase thepenalties on convicted mar mari-juana trackers. Currently thepenalty or tracking i ver 1 0pounds o f marijuana is a maxiumof ve years in prison a nd a ne ono more than $500. C onvictionon a second offense could doublethe sentence and ne.

Chiles' legislation would in-crease the penalty a firsttermconviction to a maxiu of 15years i n jail and a maximu f$ 1 250 ne. A secnd cvicticould bring up t 30 years i prisand a $2500 ne.

Identical legislation was passedby the House during midJune as a

rider sponsored by Bil ly Lee Evas(DGa.) to a noncntroversia ifant formula safety bill. Chilesplans to use the same strategy attaching his prposas to te saebil in the Senate S. 2490 wic isexpected to be marked up ad utof committee by te time te Seatereturns from te July 4 recess. Passage is likely.

Natil 63



i

T s of supidiye were o the scee t g therig of the lrgestHispnicAmeric ssocitio i the itedSttes, which represets the most overwhelmiglyemocrtic votig bloc i the country. Heres thewy the Presidet chose to del with this costi-tuecy.

By ll pperces, the hite House hdgrbbed importt chuk o f the Hispic led-ership from the Keedy cmp over the pst fewmoths, through bundt use of its ptrogepowers. This eort ws recetly cpped by RubeBoill s defectio from Keedy to Crter. Bo-ill is the presidet of the egue of ited tiAmeric Citizes, kow s AC .

The 100,member orgiztio held its -ul covetio this week, selectig Wshigto,.C. s the site insted of the usu l Suthwesterchoice, i order to mke the gretest poss ible effect

o the rce for the emocrtic omintio. ivehudred delegtes d 00 other members gth-ered to represet the egue, which is l rgely com-posed of professiols, busiessme, d civicboosters.

ch presidetil cdidte ws ivited to d-dres the group. Crter, however, decliedhewould be too busy vctioig t Cmp vid, few miutes wy from the covetio . I sted hedisptched his Attorey Geerl, Bejmi Civilet-ti, to the evet.

Presumbly Civiletti coveyed Crters deep

regrets t his ibility to tted , d messge othe dmiistrtio s commitmet to the civil rightseforcemet d ecoomic epsio demdedby miorities? ot bet your thumbscrew The

referred to s "illegl lies This wet over like Hm Jord ifomig

Right to ife meetig tht the govermet wsbout to itroduce mdtory bortio s for uwedmothers. Outrge d l rm were combied with vivid sese of isu lt.

Alogside this msterly progrmmtic out-rech to Hispics, the Crter plumbers hd beebusy etuig some subtle White House diplo-mcy visvis the other cdidtes. emocrticcoteder ydo Rouche d idepedetcdidte Joh Ader so, both ttedig the co-vetio, drew ethusistic resposes. (Keedy de-clied becuse of Boills support for Crter.Rouche hd widey circulted ivittio to hisow 9: 30 speech Jue 28 nd 4 :3 0 receptio thesme fteroo. The ight before the speech, mostdelegtes foud uder their hotel doors hite

House teegrm ivitig them to . . . 9:00 tour ofthe White House d 4: 30 receptio there.The et morig, Crters ide for Hispic

Affirs, steb Torres, greeted o the hit Hou-se doorstep ectly two AC members, thelorid stte chirm d hi wife. teb i-formed them tht everyoe else hd sid "othks, but would they like to tour the hiteHouse ywy? The visitors lso sid o thks,epliig tht they hd lredy hd the plesuredurig ydo Johsos term, d rushed bck tothe covetio to joi the boycott.

The hite House cceled its 4:30 receptio.LRouche proceeded to meet with 75 ACleders, ic ludig four regiol vicepresidets, theeecutive director the Puerto Ric cucus d

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