EIR Daily Alert Service

WEDNESDAY, MAY 17, 2017

Volume 4, Number 97

EIR Daily Alert Service

P.O. Box 17390, Washington, DC 20041-0390

EDITORIAL

America, China, and Russia: A New Paradigm for Progress, or a New Cold War?

May 16 (EIRNS)—With extraordinary, global political courage, China’s President Xi, initially acting alone, called and organized Sunday and Monday’s summit in Beijing of 29 heads of state and 130 nations’ representatives: the “Belt and Road International Forum for Cooperation.” In doing so, Xi has created a new international economic and monetary order—not to crash and be bailed out, but to build and develop. Thus far it is based largely on China’s own commitment of more than $1 trillion to other nations, in investments in critical infrastructure projects; and on the openness of the Belt and Road Initiative to all nations.

With the active support of Russia, this is also “the most important strategic initiative on this planet,” as assessed by Helga Zepp-LaRouche who participated in the summit as founder and head of the Schiller Institute. As Turkey’s President Erdogan rightly said, “It will be an initiative that would put an end to terrorism.”

Should the United States now fully collaborate in this initiative, there is no problem that cannot be tackled successfully with cooperation of those three great powers.

This issue, and what policies President Donald Trump is taking toward this potential collaboration, is more important to Americans’ future than all the media political gossip they are reading.

If most Americans do not know this, it is because British and U.S. intelligence agencies are determined to isolate the United States from Russia and China, and to impose a New Cold War with those nations as America’s enemies. They are aided by a new McCarthyism in U.S. and European media, resurrecting the “yellow journalism” of the last century. They are launching more and more furious attacks on President Donald Trump, trying to force him into a policy of hostility to Russia and China—and if they can, to force him out of office.

Most Americans are simply unaware that a new paradigm is being created to revive the collapsed economy, the space explorations the United States abandoned, the scientific frontiers it stopped funding. The reason is that the media and intelligence powers are trying to force America into a New Cold War instead. Most Democratic leaders have fallen for it completely.

Wake up, reject it. Demand sane collaboration with China and Russia in this emerging new economic and strategic initiative.

LaRouche PAC is circulating petitions and fighting in Congress for four key policies. Let’s restore the Glass-Steagall Act and break up the Wall Street megabanks. Let America invest trillions in new infrastructure itself, collaborating with other champions in high-speed rail, etc., and letting holders of U.S. debt invest it in new U.S. infrastructure. Let’s build the next generation of space missions, and make discoveries for the future like nuclear fusion.

The United States also needs collaboration in defeating international terrorism, and the related scourge of drugs.

Now, which of these are Russia or China preventing the United States from doing? Or are these goals, what the Belt and Road Forum international summit was about?

THE NEW GLOBAL ECONOMIC ORDER

Belt and Road ‘Is the Most Important Strategic Initiative on This Planet,’ Zepp-LaRouche Tells Germans

May 16 (EIRNS)—Interviewed in German for six minutes yesterday on People Television on the sidelines of the Beijing Belt and Road Forum, President of the Schiller Institute Helga Zepp-LaRouche said that in her view, the Belt and Road strategy is “the most important strategic initiative on this planet,” that it is also seen this way by people in Africa, Asia, Ibero-America. Only the think tanks in Europe paint a different picture. She said that she found, whenever she briefs people about the BRI, they are shocked and angry that they have not heard anything about it in the media, but also fascinated once they learn about it. The information on the policy to the population of Europe must be improved, they must get an objective picture of the Belt and Road strategy which until now has been withheld from them, Zepp-LaRouche said.

The benefit of the initiative for the world, she explained, is that for “the first time in mankind’s history, it is possible to overcome geopolitics, to overcome the attempt by some to dominate all the others by real cooperation. In particular, a Grand Design for Africa is needed to eliminate the roots of the refugee problem. It will be possible, then, to eliminate diseases, move into space and defend the planet from dangerous asteroids, she said.

The benefit for Germany is that its Mittelstand firms, the small and medium-size industries, have all the know-how required to make the Belt and Road Initiative a success, and if the German government would finally give up its resistance to joining, joint ventures between China and Germany in all points of the world were possible. The German government should follow the example of former French Prime Minister Jean-Pierre Raffarin, who spoke for France at the summit, she said.

“Today, history has been written,” Zepp-LaRouche said concluding the interview, “a new chapter of mankind has been opened.”

Raffarin: ‘China Has Capability To Create a New Era’

May 16 (EIRNS)—The French President’s special envoy to the Belt and Road Forum in Beijing, former Prime Minister Jean-Pierre Raffarin, in his speech at the High Level Plenary Session called the New Silk Road an “ambitious design,” having the specific orientation of creating greater connectivity between the different states, through the development of infrastructure. France, Raffarin said, agrees with China that there must be the “principle of win-win at the core of the initiative,” that it was important to “mitigate the negative effects caused by globalization.” France was committed to “assist in the emergence of Eurasia on the geopolitical scene, which is also connected with Eurafrica,” Raffarin said, again portraying the Belt and Road Initiative as a way to “overcome the disorder in many parts of the world, to bring peace by building cooperation.”

Xinhua reports on an interview, in which Raffarin said: “The Belt and Road Initiative proposed by President Xi shows that he attaches great importance to cooperation between Europe and Asia…. It will inject vitality into global development and shows his global vision. The Initiative is a creative one which shows China has the capability to create a new era for global development.”

Raffarin told press today that he brought with him a letter from newly inaugurated French President Emmanuel Macron to host President Xi Jinping. President Macron says he acknowledges the importance of Franco-Chinese relations and wants to act in continuity with the policy of Gen. Charles de Gaulle. The message shows the great interest that France has in developing peaceful and trusting relations with China,” the former prime minister said.

Italy and China Will Cooperate in Africa

May 16 (EIRNS)—“Italy and China will cooperate also in Africa and in the western Balkans,” Italian Prime Minister Paolo Gentiloni said at his press conference in Beijing, after meeting with Chinese President Xi Jinping and Prime Minister Li Keqiang today. “We spoke about the possibility of having Italy-China triangular operations in the western Balkans, an area which China is more and more interested in, and in Africa, choosing two or three countries, in addition to places such as Mozambique, where we already work together, where such a work can develop.”

The Chinese, Gentiloni continued, “have a perception of what a country like Italy represents in Africa: They know that Italy is the country that has built tens of dams and tens of thousands kilometers of roads, large infrastructure. They know that ENI [Italy’s national energy company] is the major world oil company in Africa and therefore they can have us as a partner in triangular operations. We have decided to select a few countries and to experiment [with] triangular cooperation in this.”

It is not known whether cooperation in the Transaqua project, on which Gentiloni has been briefed, is part of the triangular operations discussed.

Arab Economist: LaRouche Created the Silk Road Idea Two Decades Ago

May 16 (EIRNS)—Arab economist and economic journalist Dr. Mustafa Al-Bazergan, made a powerful intervention on London-based Al-Araby TV, in the evening special coverage of the Belt and Road Forum in Beijing and its implications for global economic development and peace.

After a short report on this being the largest economic summit, with massive implications for the dominant world economic and political power, Dr. Al-Bazergan was asked by the hosts about his view of the Belt and Road Initiative (BRI) and whether it is a Chinese tool, as some maintain, to dominate the world. However, Dr. Al-Bazergan interjected the following statement: “It is a revival of the ancient Silk Road, which more 2,000 years ago was used for trade between China and the West, including trade with the Middle East. There have been many calls to revive the Silk Road. However, the viewers might find it paradoxical if I say that the first call for reviving the Silk Road was not made by a Chinese personality, but by an American personality. American thinker and economist Lyndon LaRouche called, more than 20 years ago, for increasing international cooperation, and that the revival of the Silk Road should be part of that.”

Throughout the 25-minute program, Dr. Al-Bazergan explained that this is the beginning of a new era in international relations, making economic cooperation and development a means for forming relations among nations rather than using force. He also strongly argued for connecting the Middle East and Arab world to the BRI, because this is the right means to achieve peace and stability in this war-torn region. He debunked the questions and arguments made by both the presenter and another think-tank guest, who repeatedly tried to argue that the BRI is a major blow against the United States, and that it is the Chinese way of countering Western dominance. Dr. Al-Bazergan explained that the contrary is true, and that even President Donald Trump has changed his anti-Chinese rhetoric from his election campaign, and just a few days ago the U.S. and China signed a trade agreement. Al-Bazergan said it is actually in the interest of the United States to join the BRI.

Dr. Al-Bazergan is a long-time friend of the Schiller Institute founded by the LaRouches, and attended several of its conferences in the 1990s. He had reported on many of the statements and economic forecasts of Lyndon LaRouche at the time, as he was economic editor of the London-based Arabic daily Al-Arab.

The Arabic-language program is available on YouTube .

U.S. POLITICAL AND ECONOMIC

Trump Hardens in Face of Assault: ‘We Will Cooperate with Russia’

May 16 (EIRNS)—Twice during the day, President Donald Trump doubled down on his decision to seek strategic and security cooperation with Russia, in the face of howls for his impeachment by the New Cold War yellow press.

In Twitter messages this morning, Trump said that he has “an absolute right” to share information with other nations: “I did it for humanitarian reasons, and I want Russia to greatly step up their fight against ISIS and terrorism.” He said he wanted to present Russia with “facts pertaining to terrorism and airline flight safety.”

Then after statements at noon when he was joined by Turkish President Recep Tayyip Erdogan, where some reporters were yelling questions, Trump said: “We had a very successful meeting with the Foreign Minister of Russia [on May 10]. The fight is against ISIS. Our relations are successful on this, and we are going to improve them. Our relations are going to be successful with Turkey as well.”

Before the two Presidents met at the White House, the Washington Post edition which charged President Trump with passing secrets to “adversary” Russia, had also given exiled right-wing cleric Fethullah Gülen an op-ed to urge that Trump tell Erdogan to stop purges in Turkey. Trump went into the meetings saying that the two would have “long and hard discussions.” “Our relationship is successful, our meetings here today will make it more successful.”

After the lunch meeting they made statements to the press. President Erdogan said, “We seem to agree on expanding our relations in the field of economy, trade, reciprocal investments, energy, and defense industry. It is going to be very important for us to forge a close solidarity and cooperation in the field of fighting terrorism, primarily with Daesh and all the other terrorist organizations in the region…. President Trump’s recent election victory has led to the awakening of a new set of aspirations and expectations and hopes in our region. … [W]e will not repeat the mistakes of the past….”

Pottinger: ‘American Companies Should Be Involved’ in Belt and Road Projects

May 16 (EIRNS)—National Security Council director for East Asia policy Matthew Pottinger, attending the Beijing Belt and Road Forum for the White House, gave an interview to Chinese financial periodical Caixin, Monday.

Pottinger said about the Forum: “You can really see there is a shared interest in expanding infrastructure connectivity through high-quality investment, financing. That’s why American companies should really be involved in a lot of projects we are hearing [about].” He said there will be created a partnership between the U.S. Embassy in Beijing and U.S. companies, in an American Belt and Road Working Group, to serve as the “one node for collaboration in this area.” Pottinger stated that there are leading U.S. companies in sectors ranging from engineering to construction materials, and “We want to learn about specific projects and make sure there is open and transparent bidding so that American companies can be involved.”

He noted that the United States and China would not be signing any agreements in the BRI for the moment.

However, China’s Global Times refers to the interview and cites Pottinger that the United States has invited China to attend the SelectUSA Investment Summit, which will be held June 18-20 in the Washington, D.C. area. According to their website, the focus of that Summit is investment opportunities in U.S. state, regional, and local economic development. It includes exhibits of projects and technologies, and is an opportunity to explore foreign investment in American projects.

Washington Post Wet Dream of Impeachment

May 16 (EIRNS)—In what can only be described as a Wet Dream of Impeachment, the Washington Post’s banner headline today is “Trump Reveals Highly Classified Intelligence to Russians.”

The article purports to uncover that President Trump, during the May 10th meeting with Russian Foreign Minister Sergey Lavrov and Russian Ambassador Kislyak, revealed intelligence that compromised a vital ally in the Middle East.

There are two problems with the story that even the Washington Post has to report: 1) “For almost anyone in government, discussing such matters with an adversary would be illegal. As President, Trump has broad authority to declassify government secrets, making it unlikely that his disclosures broke the law.”

2) “White House officials involved in the meeting said Trump only discussed shared concerns about terrorism.” H.R. McMaster, who participated in the meeting, said, “ ‘At no time were any intelligence sources or methods discussed and no military operations were disclosed that were not already known publicly.’ McMaster reiterated this statement on Monday and described the Washington Post story as false.”

In a long-winded, tortured explication, the Washington Post quotes unnamed sources, who were not at the meeting, as the fount of wisdom as to what really happened at the meeting.

Absurd on the face of it! Yet the problem with this yellow journalism is, it keeps the Democratic Party in an infantile state, dreaming that Watergate is just around the corner. The Democratic Party is increasingly incapable of dealing with any real issues facing the country.

COLLAPSING WESTERN FINANCIAL SYSTEM

China Surpasses Its Employment Target, as U.S. Continues To Sink

May 16 (EIRNS)—China’s National Bureau of Statistics announced yesterday that that nation had added 4.65 million new urban jobs to the economy in the first quarter of this year. This was 220,000 more than the number of new jobs created in the first quarter of last year.

A target of 11 million new jobs has been set for this year. But last year’s target was 10 million new jobs, which was surpassed by the actual total for 2016, which was 13.14 million that were actually added. So it would appear that this year’s target could also be surpassed.

The United States economy, by contrast, was reported to have added 2.1 million jobs in 2016 (91% of them non-goods-producing). So, China’s employment grew by six and one-half times U.S. employment growth, with a population just over four times as large.

The U.S. figure for the employment in the first quarter of 2017, is a 1.2 million loss of jobs. Beyond the specific numbers, the trajectory of each economy could not be clearer.

STRATEGIC WAR DANGER

President Putin Insists, Resume Dialogue with North Korea, Stop the Threats

May 16 (EIRNS)—Before leaving Beijing yesterday at the conclusion of the Belt and Road Forum for International Cooperation, Russian President Vladimir Putin answered questions from the press. On North Korea, which had just carried out a missile test, Putin made clear that Russia opposes any missile or nuclear tests, but put the blame for the situation squarely where it lies: “[W]e understand that the recent global developments, in particular blatant violations of international law, invasion of foreign states, regime change and the like, are spurring this arms race,” he stated. In this context, he advised, “We should act comprehensively to strengthen the system of international guarantees with reliance on international law and the UN Charter.” He continued, “Dialogue with North Korea must be resumed; attempts to intimidate must stop, and a way to settle these matters peacefully, must be found.”

Britain’s obviously destabilized Daily Mail headlines its coverage: “Putin Tells the West To ‘Stop Intimidating North Korea’: Astonishing Comment Just Hours after Kim Jong-un Launches ‘Nuclear Capable’ Missile.”

President Putin also answered questions concerning the Belt and Road Forum. He said that representatives of European big business told him, “It is amazing to see how China is showing greater openness and commitment to an open economy, while the countries that we always looked to as the locomotives of open markets, are acting and talking in a way that frightens us.”

Putin reported that thanks to all that was accomplished at the Forum, “Furthermore—and this was not China’s initiative, but that of participants in today’s meeting—we expressed the desire to make this a regular event. The President of China, Xi Jinping, who chaired the event, said that the next forum would take place in 2019.”

Asked about Russian relations with China, Putin pointed to their cooperation in “very promising high-tech areas such as space exploration and aircraft manufacturing.” There is also economic cooperation, and “there is military-technical cooperation.”

About last week’s cyber attack, about which there have been “continued allegations of a Russian hand,” Putin reviewed the damage in Russia, and then said, “As for the source of this threat, I believe that Microsoft has named the culprits; it has pinned the blame on U.S. security agencies. Russia has nothing to do with this…. We believe that the genies that are let out of such bottles, especially genies that are created in secret laboratories, can ultimately turn back on their creators.”

Is NATO as Afraid of Trump as It Claims To Be of Russia?

May 16 (EIRNS)—Apparently so. If a May 15 article by Foreign Policy’s Robbie Gramer is to be believed, NATO is preparing for its summit on May 25, designed to accomplish almost nothing, because it’s afraid of what Trump might do otherwise. Supposedly, the meeting is being organized around Trump’s allegedly short attention span. The alliance has dropped plans to issue a declaration at its conclusion and is telling other leaders to limit their remarks during the summit to 2-4 minutes.

Some people contend that Trump knows little if anything about NATO, but what he does know about is building buildings, which potentially makes NATO’s new headquarters building in Brussels an issue, since it’s “way” behind schedule and over budget. Beyond all of that, the two main topics of discussion are expected to be terrorism and burden sharing and, secondarily, sending more troops to Afghanistan. The problem with discussing these issues, is that the Trump administration still has no middle management in place at the Pentagon or the State Department for NATO to deal with on these matters.

“That’s where there’s a ton of panic in NATO,” a source told Foreign Policy. “The United States put that issue forward, but it has nobody on tap who’s doing any sort of fresh thinking on that front.”

Trump famously said, during his 2016 presidential election campaign, that NATO is obsolete. On April 12, after meeting with NATO Secretary General Jens Stoltenberg, Trump said NATO is “no longer obsolete,” but the White House transcript makes clear that Trump was speaking in reference to fighting terrorism, not Russia.

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