EIR Daily Alert Service

WEDNESDAY, JULY 12, 2017

Volume 4, Number 137

EIR Daily Alert Service

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

EDITORIAL

We Can Win the Battle for Mankind; You Can Tell This by the Freak-Out!

July 11 (EIRNS)—The sense of the present moment was addressed by Helga Zepp-LaRouche this morning, after she participated in a Schiller Institute event in Berlin which featured Zhang Weiwei, well-known for his 2012 best-seller, The China Wave; Rise of a Civilizational State. She said that the nature of the current extraordinary period is that it is wide open for us to put on the agenda what must be done in the West: collaborate with the AIIB and join the New Silk Road. Put the LaRouche Four Laws into effect in the United States. We can win this battle. We are in it to win—you can tell this by the freak-out!

“Freak-out” precisely describes the latest color-revolution stunt against the U.S. Presidency, to blame Donald Trump, Jr. for a 20-minute, 2016 meeting with a Russian attorney, which charge is being repeated non-stop on U.S. media, as a crime. In fact, the incident smells to high heaven as a failed entrapment ploy run by the British and the FBI. Playing it up now is for the purpose—besides being a bogus “legalistic” attack on President Trump—of disgusting and de-mobilizing the American population.

We have to move, as Zepp-LaRouche said in Berlin, with the power of the assumption that we can win the day. Invoke the divine spark in people. It is a “Shelley” moment, in which people are capable of “the power of communicating and receiving intense and impassioned conceptions respecting man and nature.”

An important meeting occurred Sunday in Beijing. The Syrian Ambassador to China, and others, discussed China’s involvement in reconstruction for Syria. Reports are out today that a delegation of Chinese business leaders is expected to visit Syria from Aug. 15-22, to see about what projects can be started immediately. Primarily focussed on energy supplies, they will look at Damascus, Aleppo, and Homs. The state-owned giant China Energy Engineering Corp. and China Construction Fifth Engineering Division Corp. will be in the group. There is a plan under discussion to create a Chinese-Syrian industrial park for 150 companies, creating 40,000 jobs.

There have been prior delegations in Syria, but the new rebuilding impetus comes directly as a result of the new Russian-United States ceasefire deal in Southwest Asia concluded last week at the meeting between Putin and Trump.

There is no time to lose. The suffering and devastation is huge. A new report out this week gives the latest quantification of the horrors in effect in Yemen, because of the London/Saudi/U.S. atrocities. The worst cholera outbreak in the world is now occurring there, with over 297,000 cases since April, and many deaths. Over 7 million people need emergency food relief, which is not forthcoming.

We are called to make a new future. This pertains to the nature of modern China, as explained by author Zhang today in Berlin. He said that China is not an ordinary country, but is a “civilizational” state, with a 5,000-year history. The model of China today, is that it is ideas that determine the system, not the reverse, as occurs in the West. You decide what to do, based on the future. You decide what future you want, and you invent the system to get there.

U.S. POLITICAL AND ECONOMIC

The Brits Shot Their Wad, But Got Only a Negative Nothingburger; It’s Time to Counterattack!

July 11 (EIRNS)—The latest hot, dummy bombshell directed at the U.S. population about President Trump concerns—hold your breath—the fact that Donald Trump, Jr., Paul Manafort, and Jared Kushner met for 20 minutes, soon after Trump won the Republican nomination, with a Russian lawyer who, it was claimed, would offer damning information on Hillary Clinton’s illicit Russian contacts. As Trump, Jr. noted, why wouldn’t he be interested in such information about Clinton, if true, in the midst of the Presidential campaign? In short, the hot bombshell is a very smelly fraud.

Ah, but in the world of who is actually trying to steal the election, to wit, the British, Obama’s intell chiefs, and the FBI, nothing is quite so simple, and everything here positively reeks of a British/FBI entrapment attempt against the Trump campaign. The motive remains consistent: Blow the world up, if necessary, to prevent the consolidation of a positive relationship between the United States, Russia, and China as proposed by Presidents Trump, Xi, and Putin.

This meeting took place in June 2016, when, it is to be recalled, Hillary Clinton had already hired British agent Christopher Steele to produce a totally fake dossier on Trump which cited sources at the highest levels of the Russian government; and the FBI and Clinton were about to blame Russia for the DNC email hacks. The Steele dossier was on top of Clinton’s admitted use of the intelligence services of Ukraine and Estonia in her efforts against Trump.  As the Clinton case shows, along with numerous other foreign forays by other Presidential campaigns, there is no law against obtaining information from foreign governments, and there is no law concerning collusion, none whatsoever, despite today’s TV lawyer fantasies to the contrary.

There are laws, however, against governments trying to entrap and falsely prosecute Presidential candidates. Here is the “come hither” email for the meeting, as released by Donald Trump, Jr.: “The crown prosecutor of Russia met with [Emin’s] father Aras this morning and … offered to provide official documents and information that would incriminate Hillary and her dealings with Russia … as part of Russia and its government’s support for Mr. Trump.”  (Emphasis supplied.) If this very awkwardly worded and planted setup note wasn’t dictated by British intelligence or the FBI, then sue me.

Emin is an Azerbaijani pop star; Aras Agalarov is his developer father, both of whom got to know Trump when the 2013 Miss Universe pageant was held in Moscow.  The email writer is one Ron Goldstone, a British former tabloid writer and publicist for Emin.  Goldstone’s Facebook and Instagram accounts reveal him to be single, obese, and an infantile personality wearing a T-Shirt prominently labeled “Russia” in case you missed the point. Goldstone was living in New York at the time. Three people other than Trump, Jr. or Goldstone leaked this private email chain to the New York Times for its Monday story, which, veteran retired intelligence analyst Pat Lang points out, is a felony—it’s an email message between two U.S. residents collected under FISA. Lang believes Susan Rice, John Brennan, or James Comey are good targets for prosecution. Both Emin and Aras Agalarov were well known to British intelligence based on their 2013 dealings with Trump; Aras appears in the Steele dossier, and both were featured as Trump Russian confidants by the Washington Post in an article at the same time, June 2016.

At the meeting, Trump, Jr. and friends met with one Natalia Veselnitskaya, who was not the crown prosecutor of Russia. This position does not exist. Instead, many years ago she was a junior Russian prosecutor, having left the government long since for private practice.  She was, at the time of the meeting, representing Denis Katsyv, who had been sued by the U.S. Department of Justice in the Southern District of New York.  She had been denied a visa; had been paroled into the U.S. for purposes of the lawsuit, and was under observation by the FBI.

Also involved in the defense of Denis Katsyv and Prevezon Holdings was the U.S. law firm BakerHostetler and the “investigative firm” Fusion GPS which, of course, was the employer of Christopher Steele and shopper of the dodgy dossier. Veselnitskaya offered in a statement Tuesday that she never offered Russian government information about Clinton (Russia has its own espionage laws), but that perhaps the Trumps were “longing” for such.

According to all concerned the meeting went nowhere, and Veselnitskaya spoke nonsense.  So, a failed British/FBI entrapment attempt, a negative, “nothingburger.”  But, it was, clearly, an entrapment attempt by British and/or FBI operatives against a Presidential candidate, and the planted evidence has been used to light things up again in the wake of the meeting between Presidents Trump and Putin.

The lawsuit which got Veselnitskaya to the U.S. is, itself, a twisted British/FBI intelligence saga. A product of the Organized Crime and Corruption Reporting Project (funded by George Soros and USAID) and British intelligence asset Bill Browder, it sought forfeiture of Katsyv’s properties in New York, claiming that they were bought with money laundered to Katsyv from a massive tax fraud in Russia allegedly involving individuals close to Putin. The fraud was allegedly discovered by Russian lawyer Sergei Magnitsky, who died in a Russian prison. Magnitsky worked for Hermitage Capital. Hermitage Capital was a joint vehicle for the notorious late Edmond Safra, and Browder, son of Earl Browder, former head of the Communist Party USA. Browder renounced his U.S. citizenship, moved to Britain, and with Safra began investing huge sums to loot the former Soviet Union.  He was banned from Russia on security grounds, and became a leading British anti-Putin fanatic, claiming to be Putin’s main opponent.

A documentary on Browder and Magnitsky, and the U.S. and Europe’s Magnitsky Act sanctions against Russia by Andrei Nekrasov, a prominent critic of Russia and Putin, was effectively banned in the U.S. and Europe because it concluded that Browder was the fraudster, and that Magnitsky was not abused by Russian authorities.

COLLAPSING WESTERN FINANCIAL SYSTEM

Austria Protests Italian Bank Treatment

July 11 (EIRNS)—Instead of “an ever closer union” as written in the European Treaties, the EU is evolving into a “more and more quarrelsome union.” After the conflict on immigration, another one has broken out on the Italian bank bailout. Austrian Finance Minister Hans Jörg Schelling protested that the EU did not force Italy to implement a full bail-in procedure,  saying: “We need a condition in which finally everybody follows the rules.” He demanded a discussion on why Italy was allowed to use national laws “instead of the EU directives.”

Schäuble, instead, said that the Italian case “went quite well… I think that it is for us a good basis to continue the work, including Italy, of course.” However, Schäuble said it would be good to change something, because “it is difficult to explain” the differences between national and EU resolution schemes.

German Finance Advisor Says Italian ‘Bail-Outs’ Endanger Euro

July 11 (EIRNS)—Clemens Fuest, head of the Ifo-Institut and member of the Council of Economic Advisors of the German Finance Ministry, let the cat out of the bag on the Italian banking crisis, in an interview with German ARD TV’s “Tagesthemen” program yesterday. The recent Italian bail-outs of the Veneto Banca, Populare Vicenza, and Monte dei Paschi di Siena are “a big problem for the euro, he complained.  The EU is a monetary union with a very high state debt already, and the question is: Who pays for the losses now?

“There is the danger that the taxpayer must once more pay the bill; this would increase state debt and the uncertainty concerning the future of the monetary union,” he said.

In the spirit of the times, the “Tagesthemen” report started with a picture of a basket of apples with a rotten apple in the middle, and a talking head excited about the “so many rotten fruits in the cellar” of a few Italian banks, which “could be bailed out only by a giant flood of state money.”

Indeed, Italian Democratic Party leader Matteo Renzi, backed by the government, had called for suspending the Fiscal Compact for five years and allowing a 2.9% deficit—basically, going back to the Maastricht criteria. In exchange, Italy would seriously reduce its debt. The proposal is contained in his newly issued book Avanti (“Forward”).

Renzi has also adopted the Lega Nord’s slogan on migrants, “Help them where their home is.” The election campaign begins.

Brussels responded with a cold shower. Dutch former finance minister and still Eurogroup President Jeroen Dijsselbloem said that rules can be discussed, but not just for one country.

Consumer Credit Is Another Bubble of the U.S. Recovery

July 11 (EIRNS)—Yesterday the Federal Reserve Board released its credit level report for the end of May. The figures show an increase of total outstanding consumer credit by 32% from $2.920 billion at the end of 2012 to $3.843 billion as of May 31. Non-revolving credit, meaning credit for specific obligations that must be retired, rose by 36%, and revolving credit, such as monthly credit card debt, increased by 21%.

Much of the media commentary has stressed that the growth of the credit bubble is a good sign because it shows that consumers have the confidence to borrow, but is this confidence well-founded? According to the Bureau of Labor Statistics, median income in the U.S. increased by only 8% in this time period. This is more a sign of desperation than confidence.

STRATEGIC WAR DANGER

Russia, U.S. Move To Hammer Out Details in Setting Up Syrian De-Escalation Zones

July 11 (EIRNS) —Carrying out the agreements made between Presidents Donald Trump and Vladimir Putin during their meeting at the G20, Moscow and Washington are working on details for the implementing de-escalation zones in southwest Syria’s Daraa, Quneitra and Sweida.  “This cooperation will continue in terms of implementing the agreements approved for southwest Syria,” Russian Foreign Minister Sergey Lavrov told reporters yesterday, TASS reported. “The July 7 memorandum, signed by us, the Americans and the Jordanians, envisages working on more details that will fix how these zones will operate in practice.”

“Despite the fact that a ceasefire was announced yesterday, there is still much to be done in order to ensure it, so we have a lot of work ahead of us,” Lavrov explained, saying “It has been decided that details concerning the implementation of the de-escalation zones will be agreed at the monitoring center which Russia, the United States, and Jordan are setting up in Amman. The center will maintain direct contacts with both the government forces and armed opposition unit.”

“Russia will continue to take advantage of its military presence in Syria to actively support the Syrian government and opposition in their joint fight against terrorist groups, particularly using its Aerospace Force,” Lavrov said. “I expect that the success achieved in connection with the setup of de-escalation zones, as well as the progress reached at the Astana talks concerning three other de-escalation zones, will help us fight terrorists more effectively.”

“We are close to reaching a final agreement on the Homs and the eastern Ghouta zones, while talks continue on the northern zone, which is planned in the Idlib area,” Lavrov confirmed.

NEW WORLD ECONOMIC ORDER

July 9 Forum in Beijing Takes Up Reconstruction for Syria

July 11 (EIRNS)—The Global Times reports today that the China-Arab Exchange Association sponsored a forum in Beijing Sunday on the reconstruction and development of Syria. The Syrian Ambassador to China, Imad Moustapha, said that “Syria has gradually begun its rebuilding program mainly in energy, water supply and manufacturing.” He said that China’s structural reform and reduction of overcapacity can connect with Syria’s rebuilding, and that the Belt and Road Initiative also offers a good chance to work with Syria in various fields, Global Times reports.

Hua Liming, a former Chinese Ambassador to Iran, told the Global Times that China would invest in Syria’s rebuilding, very likely attracting both state-backed and private companies. “Infrastructure such as roads, houses and the water supply system is the primary investment target. Rehabilitating the oil industry would be the second goal,” Hua said. He said that the unstable situation puts obvious restraints on the reconstruction, but that the process will begin in any case.

The recent U.S.-Russian cease-fire deal in southwest Syria concluded by Trump and Putin last week, Hua said, means that reconstruction can begin. “Rebuilding is very likely to begin in western Syria, areas around Damascus and the strongholds of President Bashar al-Assad,” he said.

Sputnik also reports on the event today, writing that a delegation of 30-50 representatives of Chinese enterprises is expected to visit Syria from Aug. 15-22 “to explore investment opportunities,” according to Qin Yong, the deputy chairman of China-Arab Exchange Association. They plan to visit Damascus, Homs and Aleppo and meet with local officials to discuss investment opportunities on a wide range of reconstruction projects. Qin said discussions are “primarily focused on restoration of the power supply systems in Syria.”

Qin and a representative from the state-owned Jiangxi Construction Group Corp. visited Syria in April. Many more Chinese companies backed out last minute after the U.S. attacked the Syria airfield on April 7, Qin said. A second group of a 12-member Chinese delegation visited Syria on June 12-16, including representatives from Alibaba. They were told during that visit that Russia, China and Iran would have priority in reconstruction of Syria after the end of the war.

Qin said that a number of Chinese enterprises, including the state-owned China Energy Engineering Corporation and China Construction Fifth Engineering Division Corp., have signed up for the visit to Syria next month.

There is a plan under discussion to create a Chinese-Syrian industrial park for 150 companies, costing $2 billion and creating 40,000 jobs.

Dr. Ho Offers ‘MERCI’ Rebuilding Plan for the Middle East/North Africa and the World

July 11 (EIRNS)—Dr. Patrick Ho, Deputy Chairman and Secretary General of the China Energy Fund Committee (CEFC), has introduced a stunning opportunity to reverse the era of war, poverty, famine, and disease that has cursed the Middle East and North Africa (MENA) region for centuries. The proposal, called MERCI (Middle East Reconstruction Initiative) was presented at two major international conferences last week. On July 6, he introduced it to the Agriculture for Sustainable Development conference at the United Nations. That event was sponsored by the CEFC, a UN NGO he directs, along with the Shenzhen Dasheng Agriculture Group conglomerate, and the Department of Economic and Social Affairs of the United Nations (DESA.)

The following day, he addressed the Schiller Institute’s Food for Peace and Thought—China-U.S. Agriculture Cooperation Conference, co-sponsored by his China Energy Fund Committee and the Foundation For the Revival of Classical Culture.

Ho stated, “The MENA region, an essential pivot connecting the East and West economic circle of the Belt and Road Initiative, is an important link in China’s Belt and Road Initiative (BRI). In particular, many countries in this region are, or used to be, before the colonialist competition for oil and other resources, major agricultural countries, such as Israel, Iraq and Egypt.”

Syria, he explained, used to produce 4 million tons of wheat annually:  1.5 million for export and 2.5 million for internal consumption.  Now, after years of terrorist and other military attacks, they produce only 450,000 tons, and their people are fleeing the country by the millions.  Some nations, he said, view the military conquest of terrorism as the solution, but he points out that as the war against terrorism has expanded from the early period, 2001 to 2004, to the more recent period 2012 to 2015, the number of people killed in terrorist attacks globally has been increased sixfold. The best hope, he asserted, involves “changing the underlying socio-economic conditions.”

“The purpose of MERCI,” he said, “is to identify ways to integrate the reconstruction of the Middle East into the framework of the BRI, to discuss the role of the international community, multilateral development banks and private sector in the reconstruction effort, and to draw attention to the need to reach political and economic solutions to the region’s challenges. The agricultural sector is a most pertinent starting point to advance this initiative.”

SCIENCE & INFRASTRUCTURE

Representatives of Maritime Silk Road Ports Meet on Modernization Plans for World Needs

July 11 (EIRNS)—The 3rd Maritime Silk Road Port International Cooperation Forum opened today in China’s Ningbo Port, bringing together some 400 experts in harbor shipping and logistics from over 30 countries along the Maritime Silk Road to “exchange ideas on the theme of new changes in markets and new development of ports, and seek multilateral cooperation for a new blueprint for co-development,” the Ningbo government website reports. A preparatory document spoke of exploring “future paths to industrial transformation,” in a world in which great changes are occurring, and “international cooperation among ports has been enhanced, and regional integration in the ports sector has been accelerated. China’s Transportation Minister was to open the conference.

The 2,300-year-old Ningbo Port, located on the Yangtze River Delta in Zhejiang Province, exemplifies the potentials for port development. Today, it is the port with the most deepwater berths in Mainland China. Its 315 berths, 74 of which can accommodate 10,00 DWT vessels, are located in the six harbor areas joined together in the port, with efficient access to an advanced infrastructure for land connections. As the Port describes its (relatively) recent advances:

“Through the development of No-water Port and sea-rail through transport, the Port has formed a new development pattern featuring linkage development and coordinated development of main business and auxiliary business…. It implements a strategy of vitalizing the port through science and technology, proactively promotes information-based and network-based services. Its container handling efficiency has kept setting new records.”

Officials from Spain’s Algeciras Bay Port Authority were enthusiastically looking forward to the opportunities offered by participation in the Forum. Gerardo Landaluce, Deputy Director for Development and Commerce for this port located in the south of Spain near Cadiz, Andalucia, is scheduled to speak on the morning of July 12 “laying out to attendees the possibilities which the Algeciras port offers as a logistical partner for the African and European markets,” the Port Authority announced. In March a delegation from the Ningbo-Zoushan Port visited Algeciras, considering investing in its expansion plans.

Silk Road Will Promote Siberian Development, Drawing in Alaska and China into the Arctic

July 11 (EIRNS)—As the rector of Moscow State University, Viktor Sadovnichy said yesterday in a review meeting of scientists on last week’s agreements between the Presidents of Russia and China, the economic corridor developed in the Belt and Road Initiative’s framework will be of a huge benefit for Siberia.

“A group of scientists led by me—Academicians Osipov and Makarov—has developed in detail a trans-European project related to the development of our regions of Siberia, Kamchatka, up to Alaska,” he said. “The project was reported to the Presidium of the Academy of Sciences in  the Federation Council…. This is a trans-Asian corridor that will connect Europe and the U.S. via Siberia and Alaska. China will also be integrated into it.

“The project is grandiose; it assumes that perpendicular corridors which will cover our entire territory, up to the Arctic and here, and from the south to the borders with Mongolia and China, will emerge from this corridor. It is (so far) a scientific investigation, but we worked closely with our Chinese comrades and are looking for common ground between the Silk Road and our Trans-Asian corridor,” Sadovnichy said.

In his opinion, “we must be in the middle of the action, scientists will have to prove the efficiency and economic feasibility of integration, as well as think about the development of our country. If we talk about our project, Siberia will be covered by a whole network in 15 to 20 years—a railway corridor, helicopter services for development of its most remote locations…. The main action, probably, will be developing around the Silk Road project.”

Swiss Finance Minister Offers Aid for Belt and Road in Central Asia

July 11 (EIRNS)—Swiss Finance Minister Ueli Maurer, in a visit to Tajikistan, Kyrgyzstan and Kazakhstan, “has offered Swiss help to those former Soviet countries in Central Asia, if China really implements its New Silk Road project,” tvsvizzera, the Swiss TV network in Italy, reported today.

“One of the central issues discussed with official representatives of those countries was the Chinese ‘Belt and Road’ or ‘New Silk Road’ Initiative,” said Finance Ministry spokesman Peter Minder. “The initiative, of giant dimensions, is seen with great interest by the Central Asian countries visited by Maurer,” tvsvizzera reports. “In this context, [the Finance Minister] offered Swiss support and collaboration as concerns financing infrastructure  projects,” Minder said.

China Invites Mexico to Study Its South-to-North Water Project

July 11 (EIRNS)—Top Mexican government water officials are studying China’s “Move South Water North” project, according to the June 30th issue of Water Commission bulletin, CONAGUA.

The bulletin’s report is brief. “Because Mexico has geographic and climatic similarities with China, Jiang Xuguan, Deputy Director of the State Construction Commission, Office of South-to-North Water Diversion Project, considers an exchange of experiences with Mexican officials from CONAGUA to be appropriate,” it reports. CONAGUA’s Deputy Technical Director and Deputy Planning Director “agreed to coordinate” with the South-to North Water team “in order to learn more about that model.”

OTHER

Berlin Schiller Institute Event on Belt and Road Initiative

July 11 (EIRNS)—The Schiller Institute sponsored a guest lecture by Chinese author Prof. Zhang Weiwei on July 11 in Berlin, attended by approximately 30 guests.  Dr. Zhang gave a thorough and provocative presentation on the Chinese Development Model, providing insights on the systemic thinking behind the economic and political development of China over the last four decades.

Schiller Institute Founder Helga Zepp-LaRouche spoke after Dr. Zhang, making clear the significance of the diplomatic initiatives of the last weeks, emphasizing especially the importance of the Trump-Putin meeting, following the Trump-Xi Mar-a-Lago summit, and the signs that Germany is initiating a process of collaboration with China in Africa. This shows the strength of the New Paradigm which is emerging, around the potential for collaboration between the U.S., China and Russia.

The event was opened by the Schiller Institute Chorus performing a Chinese song, Mo Li Hua (Jasmine Flower), which Dr. Zhang later mentioned is a favorite in his home province.

 

 

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