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EIR has commissioned this White Paper to bring the truth of the developing Panama crisis to American citizens and law makers, so that decisive action can be taken to stop this campaign before the United States faces a new strategic crisis on its Southern Flank. Americans have been told that there is a crisis in Panama because a "narco-dictator" rules. That the United States government has mobilized to drive him from power. That only when Defense Force Commander General Manuel Noriega is out of the way, will Panama be safe for democracy, and U.S. interests in the region protected. Is this true? The answer is no. On this, the Reagan administration is wrong, dead wrong. Did you know, that the so-called "democratic" oppo sition movement which the State Department seeks to install in power is led by Nazis, drug-traffickers, drug-money launderers, advocates of narcotics legal ization, and arms-traffickers? Did you know that the liberal Establishment's "secret government" created the crisis in Panama, lock, stock and barrel, as an excuse to bring those drug-runners to power? That the campaign against General Noriega is being run by the same team which waa caught trading arms for-hostages in the Iran-Contra scandal? That the attack on Panama went into full gear when Panam� ' s military angered international bankers, by seizing bank accounts caught laundering drug-money? If you had read EIR's Special Report, you would know. This 135-page report, now updated, provides: • A "Who's Who" in the drug mob's campaign to over throw Panama's government; • The facts on how the Establishment's secret government set up the war on Panama, why they did .. so, and how the Soviet Union will benefit from it; • The story of how that liberal Establishment, through David Rockefeller's Trilateral Commission and the New York Council on Foreign Relations, created the "offshore" banking center in Panama, to handle the� debt-and-drug looting of South America; • A proposed alternative strategy, based upon the industrial development of Panama. With the long overdue construction of a second, sea-level Canal the necessary centerpiece of a booming Ibero American Common Market-Panama can break its dependence on the "offshore" economy owned by the international banking cartel. $100 per copy, postpaid. SPECIAL REPORT Make checks payable to: EIR News Service, Inc., P.O. Box 17390, Washington, D.C. 20041-0390.
Founder and Contributing Editor: Lyndon H. LaRouche. Jr. Editor: Nora Hamerman Managing Editors: Yin Berg and Susan Welsh Editoral Board: Warren Hamerman. Melvin Klenetsky. Antony Papert. Uwe Parpart Henke. Gerald Rose. Alan Salisbury. Edward Spannaus. Nancy Spannaus. Webster Tarpley. William Wertz. Carol White. Christopher White Science and Technology: Carol White Special Services: Richard Freeman Book Editor: Janine Benton Advertising Director: Marsha Freeman Circulation Manager: Joseph Jennings INTELUGENCE DIRECTORS: Africa: Mary Lalevee Agriculture: Marcia Merry Asia: Lindo de Hoyos Counterintelligence: Jeffrey Steinberg. Paul Goldstein Economics: Christopher White European Economics: William EngdlJhl. Laurent Murawiec !bera-America: Robyn Quijano. Dennis Small Law: Edward Spannaus Medicine: John Grauerhalz. M.D. Middle East: Thierry Lalevee Soviet Union and Eastern Europe: Rachel Douglas. Konstantin George Special Projects: Mark Burdman United States: Kathleen Klenetsky INTERNATIONAL BUREAUS: Bangkok: Pakdee and Sophie Tanapura Bogota: Javier Almario Bonn: George Gregory. Rainer Apel Copenhagen: Poul Rasmussen Houston: Harley Schlanger Lima: Sara Madueno Mexico City: Hugo LOpez Ochoa. Josefina Menendez Milan: Marco Fanini New Delhi: Susan Maitra Paris: Christine Bierre Rio de Janeiro: Silvia Palacios Rome: Leofl!Jrdo Servadio. Stefania Sacchi Stockbolm: Michael Ericson Washington, D.C.: Nicholas F. Benton. William Jones Wiesbaden: Philip Golub. Giiran Haglund ElRIExecutive Intelligence Review (ISSN 0273...{j314) is published weekly (50 issues) except for the second week of July and last week of December by New Solidarity International Press Service P.O. Box 65178. Washington. DC 20035 (202) 457-8840 EIU't1pH1I H«IIIq_rs: Executive Intelligence Review Nacbricbtenagentur GmbH. Postfacb 2308. Dotzbeimcrslrasse 166.0-6200 Wiesbaden. Federal Republic of Germany Tel: (06121) 8840. Executive Directors: Anno Hellenbroicb. Michael Uebig lalhammi: BIR . Rosenvaengets AIle 20. 2100 Copenhagen OE. Tel. (01) 42-15-00 la MaiI:o: BIR. Francisco Dlaz Covauubias 54 A-3 Colonia San Rafael. Mexico OF. Tel: 705-1295. J.".. .ubscriptiDa SIlk" O.T .O. Research Corporation. Takeuchi Bldg .• 1-34-12 Takatanobaba. Shinjuku-Ku. Tokyo 160. Tel: (03) 208-7821. Copyright @ 1987 New Solidsrity International Press Service. All rights ,.,served. Reproduction in whole or in part without permissioo strictly prohihited. Second-clus postage paid at Washington D.C .• and at an additional maiImg offices. 3 months-SI2S. 6 months-S22S. I year-$396. Single issue-$IO PoIItmaster: Send all address changes to ElR. P.O. Box 17390. Washington, D.C. 20041-0390. From the Editor A s we were going to press, another signal of the precarious state of the U.S. financial bubble arrived. The liquidation of First RepublicBank of Dallas, announced late on Friday, June 29, is set to be the biggest bailout in U. S. history, outstripping the 1984 bailout of Continental Illinois bank that shook the international banking system to its roots (page 4). As to the real, physical economy: This week's Feature on the delapidated energy grid was origi nally conceived as a Science & Technology section, but it became our cover story as the sheer dimensions of the crisis became apparent. Surely to any foreign visitor, or American citizen returning home from abroad, the most striking evidence of United States economic power and prosperity are the dazzling lights of our cities, visible manifestations of an electric power grid that drives a vast, less-visible industrial machine. The deliberately induced decay of that power grid is a threat to the security of the entire Western Alliance, and a crime against the right to economic development of the Third World. Its causes, and extent, are discussed by Marsha Freeman in the first of a two-part series which begins on page 22. In International, you will learn of the "regional deals" being negotiated in the name of "peace" between Washington and Mos cow, and why these are in fact sowing the seeds for war. The false atmosphere of "peace" has proceeded to such a point, that West Gennan Social Democrats were reported on July 30 to have discussed exchange programs for Western military leaders, with the Soviet general staff in Moscow! In National, we present a profile of Democratic presidential nominee Michael Dukakis. On July 30, a British daily paper added to the Dukakis dossier the charge that according to his critics, Governor Dukakis allegedly used illegal methods to produce the "Mas sachusetts Miracle," the turnaround of a crippling budget deficit. In contrast, I'd like to point out that the Books section this week has a theme, one we hope to repeat from time to time in the future: biographies, in this case, dealing with four persons who made re markable contributions in science, technology, and the arts.
Page 4 and 5: �TIrnContents Interviews 9 Dr. Ad
Page 6 and 7: �TIrnEconomics First RepuhlicBank
Page 8 and 9: Drought relief bill won't do the jo
Page 10 and 11: International Credit by Hector Apol
Page 12 and 13: that production has dropped by 30-4
Page 14 and 15: Currency Rates The dollar in deutsc
Page 16 and 17: Report from BODD by Rainer Ape! A M
Page 18 and 19: Business Briefs Public Debt Italy's
Page 20 and 21: �TIillBooks A man who loved both
Page 22 and 23: department became larger than the o
Page 24 and 25: �IIillFeature Is reliable electri
Page 26 and 27: FIGURE 1 Ranges of uncertainty for
Page 28 and 29: distribution companies," and future
Page 30 and 31: Additional problems There are other
Page 32 and 33: FIGURE 5 Uncertainty of planned cap
Page 34 and 35: Superpower deals : the coming threa
Page 36 and 37: Asia Shultz midwifes Sino-Soviet de
Page 38 and 39: Pope celebrates baptislll of Kievan
Page 40 and 41: lective soul" idea.) The situation,
Page 42 and 43: Cardenas : Mexican regime throws pr
Page 44 and 45: Drug mob plans 'independent republi
Page 46 and 47: Thctical Air Meet 88: Can NATO stil
Page 48: vited were teams from neighboring N
Page 51 and 52: Thailand votes for industrializatio
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From New Delhi by Susan Maitra Hare
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Dateline Mexico by Hector Apolinar
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families in Poland. Both trends-rea
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he had received from the United Sta
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elated networks in industry . The B
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May, 1988 brought the truth to the
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Robert Bowie, a fonner top CIA offi
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United States to an all-out trade w
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Eye on Washington by Nicholas F. Be
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anking and the stock markets after
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tor Susan Kaufman Purcell and Mexic
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Confidential Alert In the age of Ir
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