EIR Daily Alert Service, FRIDAY, JULY 6, 2018

FRIDAY, JULY 6, 2018

Volume 5, Number 134

EIR Daily Alert Service

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

EDITORIAL

Schiller Institute Conference Leads the Way for Europe To Enter the New Paradigm!

July 5 (EIRNS)—The just-concluded conference of the international Schiller Institute, held in Bad Soden, Germany June 30-July 1, did what no other organization in the world is capable of doing. It brought together leaders from 35 countries, and an audience of 300 people, to participate in a profound discussion of what is required to take the world into the New Paradigm of economic development, simultaneously uplifting populations to ever greater heights of creative scientific accomplishment. Videos of the conference panels, including a wonderful concert, will be available on the Schiller Institute website. The first two panels have already been posted as of this writing.

As Schiller Institute founder and Chairwoman Helga Zepp-LaRouche elaborated in her international webcast today, this past weekend’s conference, unlike those of other organizations, really elevated the audience “to the level of thinking required to find solutions.” That is why, she explained, she titled her own presentation “The Coincidence of Opposites,” or coincidentia oppositorum, “which is an idea of Nicholas of Cusa. It’s a specific way of thinking—how to overcome the contradictions in political life on the daily level,” because, “if you just look at the status quo, you never find a solution.” Through the various presentations, people began to understand “why we insist that you have to understand the world picture, you have to put yourself in the shoes of each different country, you have to look at the world as it looks from China, from Russia, from the United States, from European countries, in order to get a more balanced view and be able to form your own judgment and not be dependent on the fake news from some arbitrary media.”

The conference took place at a moment of great strategic importance—a moment of intense diplomacy and great potential. President Trump will meet with Russian President Vladimir Putin in Helsinki on July 16, and as the head of the American Department of the Russian Foreign Ministry, Georgy Borisenko, said yesterday, he expects the summit to have a very “ambitious” and very “rich” agenda, with a number of crucial strategic topics to be discussed. The hope is, he said, that the summit will give “fresh impetus to further development of our relations.” The indications that the Helsinki summit could be as successful as President Trump’s Singapore summit with North Korean Chairman Kim Jong-un “could be an absolute breakthrough for the world situation. I think we can actually be happy that this summit is going to take place,” Zepp-LaRouche said.

One need only look at the complete disarray and strife within the European Union, and the absolute inability of its members to resolve the horrific refugee crisis, to understand that the problem has to be approached “in a completely different way,” Zepp-LaRouche pointed out, stating the need to also create new institutions, because the existing ones are non-functional.

The fact that Austria, whose government is committed to participating in the New Silk Road, took over the rotating presidency of the European Council on July 1, for the next six months, and that Austrian Chancellor Sebastian Kurz has announced there will be an EU summit with Africa, is extremely important. As Austria’s Transport Minister Norbert Hofer put it, Austria is prepared to “think big” in considering the New Silk Road’s application to all of Europe. Also, in September, China and the African Union will hold a big conference and “obviously, that will set a certain standard,” Zepp-LaRouche observed. The point is to keep pushing for the perspective of involving China and Europe in the development of Africa—just as China and the United States should also be engaged with Mexican and Ibero-American governments in proposing development programs for that region, so its citizens won’t feel the need to flee to the United States to escape economic penury and drug gang violence.

It is essential, Zepp-LaRouche concluded, that many nations of the world, “preferably all of them,” be involved in this discussion of what the future world will look like, “because we want to arrive at something binding, at something … on a world level, what the discussion of the Federalist Papers was after the American Revolution, discussing how we can give ourselves an order which allows self-governance and human beings able to live together, and that must be applied today on an international level. How can we make sure that we do not plunge into dark ages again, by simply elevating our populations to think in terms of a New Paradigm of the coincidence of opposites, of the one humanity first, or what Xi Jinping always calls ‘a community for a shared humanity,’ or ‘shared future of mankind.’ ”

NEW GLOBAL ECONOMIC ORDER

Trump-Putin Summit Expected To Have ‘Ambitious’ and ‘Rich’ Agenda

July 5 (EIRNS)—Moscow expects the meeting between Russian President Vladimir Putin and U.S. President Donald Trump in Helsinki on July 16 to give a fresh impetus to relations between the two countries, the Director of the Russian Foreign Ministry’s North American Department Georgy Borisenko told reporters during Fourth of July celebrations at the U.S. Embassy in Moscow yesterday, reported TASS. “We hope that the upcoming summit of the Russian and U.S. Presidents will give a fresh impetus to the further development of our relations,” he said.

According to Sputnik, “Moscow expects that the talks will be long and will have an ambitious agenda,” Borisenko said.  “It is too early to say something about the result of the meeting, because the preparatory work is still ongoing. The logic of the summit presupposes rather long talks between the two leaders; therefore, it is necessary to wait for the result of the summit.” He said that the summit will have a rich program including key international issues, strategic stability and bilateral relations.

Austrian Transport Minister Insists Europe Must ‘Think Big’ About the New Silk Road

July 5 (EIRNS)—In the wake of the publishing of the Vienna-based Institute of International Economic Studies (WIIW) proposal for a “European Silk Road” (as reported in the July 5 EIR Daily Alert), Austrian Transport Minister Norbert Hofer said that the New Silk Road is something from which all of Europe will benefit.

He said one has to “think big” when looking at that, not just look at Central Europe, but at the potential for the entire economic sphere of Europe. “When I visited China in April, I signed a binding statement on the Silk Road. With that, we are as before, first movers” on the European level, he emphasized, as far as the Silk Road is concerned.

India Maritime Talks with China, Russia May Take Place ‘Soon’

July 5 (EIRNS)—Citing an unnamed Indian official, Indian media reported today that Indian bilateral discussions on maritime issues with China and Russia are going to take place “soon.” Its first step, a bilateral India-China maritime dialogue, took place in 2016 and covered issues of mutual interest, including an exchange of perspectives on maritime security, developments in international regimes such as the United Nations Convention on the Law of the Sea (UNCLOS) and the International Maritime Organization (IMO), and prospects for maritime cooperation. The second maritime talk slated for 2017 did not take place due to the Doklam standoff at the time between the Indian and Chinese troops close to the China-Bhutan-India border.

The announcement of a second maritime affairs dialogue is in line with the Wuhan declaration that was released after the informal meeting last April between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping, Sputnik reported.

Meanwhile, Asian News International reported, also citing unnamed sources, that details are being finalized for Chinese Defense Minister Gen. Wei Fenghe to visit India. A Chinese delegation led by Lt. Gen Liu Xiaowu, Deputy Commander of the Western Theater Command, and comprising 10 senior military officials, is currently in India. Their visit to India’s military headquarters at Sukna, West Bengal, is being seen as a significant step towards increasing interactions at the military commanders’ level, and implementation of various agreements to maintain peace and tranquility at the borders, ANI wrote.

Djibouti Launches Africa’s Biggest Free-Trade Zone

July 5 (EIRNS)—Today, Djibouti officially launched Africa’s biggest free-trade zone, seeking to fully utilize its geographical location among the busiest shipping trade routes, Turkey’s Anadolu Agency reported. The free-trade zone is estimated to be capable of handling over $7 billion worth of trade in the next two years.

Speaking at the opening ceremony, Djibouti President Ismail Omar Guelleh said that soon the country will expand “its position in international trade and commerce, boosting our economy.” This, he said, will complement the Addis Ababa-Djibouti cross-border electric railway which was completed in 2016 to ease the flow of goods and services from the rest of the world into landlocked Ethiopia, according to Anadolu Agency.

Somalia’s President Mohamed Abdullahi Mohamed hailed the free-trade zone as a “victory for East Africa,” in comments echoed at the ceremony by Ethiopian Prime Minister Abiy Ahmed and Presidents Paul Kagame of Rwanda and Omar al-Bashir of Sudan, AFP reported. The free-trade zone is being run by Djibouti, the majority shareholder, along with three Chinese companies: the China Merchants Group, Dalian Port Authority and Chinese big data company IZP.

The zone, which is connected to Djibouti’s main ports, aims at diversifying the economy, creating new jobs, and luring foreign investment through tax-free incentives and full logistical support. The pilot phase launched today comprises a 240-hectare site. On its scheduled completion 10 years from now, the $3.5 billion initiative will span 4,800 hectares—the largest free-trade zone on the continent.

Asia Diplomacy Hastens among China, Japan, North Korea

July 5 (EIRNS)—Reuters reports today that China has invited Japanese Prime Minister Shinzo Abe to visit China at a mutually convenient time. At the same time, Japan’s NHK reports that Abe told family members of Japanese citizens abducted by North Korea, that he is determined to meet with North Korean leader Kim Jong-un to resolve the abductions issue.

COLLAPSING WESTERN FINANCIAL SYSTEM

EU Commission Snubs Polish Prime Minister in Strasbourg

July 5 (EIRNS)—The conflict between EU institutions and Poland, which is accused by Brussels of putting its national law above EU law, entered a new phase yesterday with the visit by Polish Prime Minister Mateusz Morawiecki to the European Parliament.

Both EU Commission President Jean-Claude Juncker and his First Vice President Frans Timmerman refused to greet Morawiecki. Instead they sent Latvia’s Valdis Dombrovskis, who is only Commissioner for Monetary Affairs, to receive him and accompany him to speak before the plenary assembly.

During the debate, Morawiecki was frontally attacked by such EU fanatics as European People’s Party (Christian Democrats) faction leader Manfred Weber. “There are so many questions,” he confronted Morawiecki. “Why is [Polish] public television a propaganda instrument and no longer free media?” (Apparently Weber has never watched German television.) “Why are peaceful demonstrators arrested and violence from right-wing extremists ignored?” he demanded. Weber and other EU devotees accused Poland of creating an “anti-EU” climate.

Morawiecki was not impressed. He rejected all the allegations and asked whether the EU Commission can still be considered “an honest mediator.” In the dialogue with the Commission, Poland has reached a point at which an understanding or agreement is barely possible, he said.

Judicial Financial Warfare against Italy’s Coalition Partner Lega

July 5 (EIRNS)—Like the losers among Clinton-Obama neo-cons, the old-paradigm faction in Italy doesn’t accept that it’s lost power in favor of what it calls the “populists,” meaning the Lega and M5S coalition government. The Italian Supreme Court (Corte di Cassazione) has ruled that €49 million should be seized from the Lega national accounts, an amount that would paralyze party activities. The ruling relates to charges of mismanaging matching funds from when Umberto Bossi was head of the Lega. Bossi and his son, who was then Lega treasurer, were convicted of having used up to €300,000 of Lega money for personal purposes. A judge in Genoa then ruled that in order to reimburse “taxpayers’ money,” the Lega should return the totality of matching funds, which amounted to €49 millions. That ruling has been now upheld by the Cassazione.

Lega head, Deputy Prime Minister and Interior Minister Matteo Salvini, stated that “this is a political process, concerning facts that occurred 10 years ago and money which I have never seen.” Salvini has called on State President Sergio Mattarella to intervene.

The all-resentful anti-Lega front hailed the sentence and fine. Phony anti-Mafia author Roberto Saviano wrote that Salvini should ask Russian President Putin for financial help, on top of “the already open credit line with the Czar.”

EU’s Insane ‘Refugee Containment’ Diplomacy

July 5 (EIRNS)—German Interior Minister Horst Seehofer is in Vienna today, discussing measures to contain, control and reduce the inflow of refugees through bilateral agreement between the two governments.

Chancellor Angela Merkel received Hungarian Prime Minister Viktor Orban in Berlin today, with a similar agenda. This, as well as other bilateral meetings in the coming days, is part of the unworkable “European solution” agenda for selective agreements with “willing” governments, which was discussed at the June 28-29 EU Summit.

SCIENCE & INFRASTRUCTURE

Belt and Road Could Be a Major Factor in Indonesia’s Infrastructure Development

July 5 (EIRNS)—At the third Belt and Road Summit in Hong Kong on June 28, the Belt and Road Initiative’s (BRI) potential contribution to Indonesia’s much-needed infrastructure development was highlighted. “Our government has been really focused on building infrastructure. We have been focusing on four regions that are part of the Belt and Road Initiative: North Sulawesi, North Kalimantan, North Sumatra and Bali,” Indonesian Chamber of Commerce (Kadin) Deputy Chairwoman Shinta Kamdani said during the summit, the Jakarta Globe reported today. Shinta also cited a statement by the Hong Kong Trade Development Council which said China had promised to invest a total of $9 billion in 50 projects in Indonesia.

Prior to the summit, an international law firm, Baker McKenzie, in a recent report, said Indonesia could be the biggest beneficiary in the region, potentially attracting more than $87 billion in infrastructure projects under the initiative. China is said to show great interest in investing in international port development and industrial areas in several locations in Indonesia under the Belt and Road Initiative, the Jakarta Globe reported.

At the summit, Suteja Sidarta Darmono, chief executive officer of PT Jababeka, which manages two of Indonesia’s largest industrial estates and two special economic zones, reiterated the strategic importance of linking up with local partners, local hiring, and the procurement of local materials, the Jakarta Globe reported on July 2.

World’s First AP1000 Nuclear Reactor Begins Generating Power in China

July 5 (EIRNS)—Two nuclear energy milestones were reached in the past week, as the world’s first commercial AP1000 and EPR reactors were connected to China’s power grid.

Westinghouse announced that Sanmen 1, the first AP1000 unit, was connected to the grid June 30, one day after Électricité de France (EDF) connected the first EPR reactor—Taishan 1—to the system. Taishan 1 is the first of two 1.7 GW reactors at the site, which is owned by TNPJVC, a joint venture of China General Nuclear, EDF, and Yuedian, a Chinese electric company, Power magazine reported today.

Four AP1000 reactors were also being built in the U.S., two each at Vogtle and Summer, in Georgia. However, construction of the two Summer units was suspended last August, World Nuclear Newsreported.

Westinghouse President and CEO José Gutiérrez said, “Today we witness our first AP1000 plant, Sanmen 1, begin its process of generating electricity and providing our customers in China with safe, reliable and clean energy. This milestone would not have been possible without the constant collaboration and partnership with our China customer,” WNN reported.

In September 2007, Westinghouse and its partner, the Shaw Group, had received authorization to build four AP1000 units in China: two at Sanmen in Zhejiang province and two more at Haiyang in Shandong province. Construction of Sanmen 1 began in April 2009, while the first concrete for Sanmen 2 was poured in December 2009. Construction of Haiyang 1 and 2 began in September 2009 and June 2010, respectively.

OTHER

Former Ecuadorean President Correa Targetted for Imprisonment, Assassination

July 5 (EIRNS)—Following the pattern of harassment and threats of imprisonment or assassination against former Ibero-American Presidents who challenged the neo-liberal, geopolitical world order—Brazil’s Lula da Silva or Argentina’s Cristina Fernández de Kirchner are examples—an Ecuadorean judge has ordered the arrest and extradition of former President Rafael Correa, who now resides in Belgium.

Correa, who left office in 2017, is charged with involvement in the 2012 kidnapping of a former Ecuadorean legislator, Fernando Balda, a charge he says is politically motivated. Correa was told to appear at the National Court in Quito, Ecuador’s capital, but since he resides in Belgium, he was at first informed he could appear at the Ecuadorean Embassy in Brussels. The judge then abruptly changed course, and demanded he return to Ecuador and ordered his extradition.

Correa told RT that this is clearly a political case, which he blames on current President Lenin Moreno, once his own Vice President, but with whom he broke when Moreno accused him of corruption and began adopting neo-liberal policies, while seeking a closer relationship with Washington. During his 12 years as President, Correa oversaw impressive economic and infrastructural development, especially in collaboration with China. He also worked closely with other Ibero-American Presidents in the informal “Presidents’ Club” to coordinate on regional policies. “The strategy,” Correa told RT, “is either to kill me—they have stripped me of my presidential security, for example—or jail me in Ecuador, or prevent me from returning to my country.”

After Landslide Victory, Where Might Mexico’s New President AMLO Take the Country?

July 3 (EIRNS)—Andrés Manuel López Obrador (AMLO) handily won the July 1 presidential election in Mexico, with 53% of the votes cast in a four-way race. He will be sworn in on Dec. 1, 2018. His National Regeneration Movement, or Morena party is also on its way to achieving a majority in both houses of Congress. The ruling PRI party got a shellacking, coming in third place with only 16% of the votes.

These results, along with a strong voter turnout, indicate a massive popular rejection of what has happened to Mexico over the last 35 years—ever since the end of José López Portillo’s Presidency in 1982—and a demand for change. People are fed up with the Dope, Inc. takeover of their country; the worsening, grinding poverty imposed by the Wall Street and City of London banks; and the way that some 10% of first generation Mexicans have been driven by desperation to emigrate to the United States. As such, the Mexican election is part of the global pattern of popular rejection of the old paradigm, seen in the Brexit vote, the Trump election, the Italian referendum and election, Austria’s election, and others.

On July 3, AMLO had a 30-minute phone conversation with Donald Trump and stressed the need to embark on development projects in Mexico to create jobs, and halt the massive emigration to the United States—a positive development. But, there are two overriding strategic issues which will define whether AMLO opts for an actual paradigm change, as the population is demanding, or merely for an attempted color revolution-style regime change: 1) the Belt and Road Initiative; and 2) the Dope, Inc. (i.e., City of London and Wall Street) takeover of Mexico. Mexico’s relationship with the U.S. under Trump—and what Trump does on these same matters—is obviously also key.

AMLO and his team have gone out of their way in the last 48 hours to quickly reassure “the markets.” In his victory speech, AMLO stated: “On economic matters, the autonomy of the Bank of Mexico [central bank] will be respected; the new government will maintain financial and fiscal discipline; the commitments contracted with national and foreign businesses and banks will be recognized.” He also stated that “the transformation that we will carry out will basically consist of banishing corruption…. We are absolutely certain that this evil is the principle cause of social and economic inequality and the violence we suffer.”

AMLO did not repeat his earlier call for an “amnesty” and “peace negotiations” with the drug cartels, instead making only vague references to how “the failed fight against insecurity and violence will change” under his government.

According to a summary published by El Economista, AMLO’s top three economic advisors gave a joint press conference yesterday in which they announced, among other things: “1. Extreme fiscal responsibility; 2) Strict respect for the autonomy of the Bank of Mexico; 3) Maintain the mechanism of a flexible exchange rate… 6) Maintain healthy public finances, recognizing what has been done over recent decades.”

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