MONDAY, MAY 27, 2019

Volume 6, Number 103

EIR Daily Alert Service

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

• Statecraft vs. Geopolitics: The Asian Theater
• Helga Zepp-LaRouche in China
• ‘Bannon Promotes Economic Fascism,’ Says Global Times Editorial
• Chinese Media Responses to Attacks on Huawei and Trade War Are Getting Increasingly Nasty
• State Department Declares Emergency To Accelerate Arms Sales to Persian Gulf Allies
• Pentagon Won’t Provide Evidence of Alleged Iranian Threat
• Retired Military Officers and Diplomats Sign Open Letter to Trump To Avoid War With Iran
• President Orders U.S. Intelligence To Cooperate With Barr Probe of 2016 Election Surveillance
• Nunes Letter Urges Trump To Ask British Government About Its Role in Steele Dossier
• Guilty Coup Plotters Are Hysterical About President Trump Giving Barr Power to Expose Them
• President Trump ‘Not Disturbed’ by North Korea Rocket Launches
• British PM Theresa May Has Resigned
• U.S. Commerce Secretary Ross Pressured Mexico Against Chinese Foreign Investment in ‘Strategic Projects’

EDITORIAL

Statecraft vs. Geopolitics: The Asian Theater

May 26 (EIRNS)—“It is the characteristic of turning points in history that the majority of people have no concept of what is occurring. Only those visionaries who have a clear idea of the positive potential of the future are able to intervene in the process at moments of decision, to avert potential catastrophes, and instead usher in a new epoch of humanity. We find ourselves in such a phase change.”

Those were the opening words of Schiller Institute founder and President Helga Zepp-LaRouche, in her presentation to the “2019 Conference on Dialogue of Asian Civilizations,” held May 15 in Beijing. They accurately describe the decisive moment that humanity now faces.

Two diametrically opposed, irreconcilable approaches are today before mankind. The one promotes geopolitics, confrontation and unilateralism in defense of the dying world order of the British Empire; the other calls for a dialogue among nations, based on the high points of their respective civilizations. As Zepp-LaRouche emphasized in her speech: “If we want to create a more human order, it must be built on the best concepts that have been produced by various cultures. Those concepts must, so to speak, have an ontological character, because nothing in them can be accidental or of merely contemporary character.” They must reflect what in Judeo-Christian Western civilization is known as “natural law,” the higher-order creative development of the universe, which is discoverable by Man’s Mind and in which Man participates.

It is in this domain that mankind most requires “the wise words of Lyndon LaRouche.” Alone in this epoch, LaRouche elaborated those concepts needed to bring such a New Paradigm into existence—and to drive a stake through the heart of the Old Paradigm and its evil concept of Man. Many writings of LaRouche’s could be cited in this regard, but none better than his Dec. 19, 2004 book: The Dialogue of Eurasian Civilizations: Earth’s Next Fifty Years. [See EIR, January 7, 2005.]

It is to this end—providing the United States and all the nations of the world with access to such concepts—that we celebrate the LaRouche Memorial on June 8 in New York City, and a half-dozen satellite events across the country. These are especially the concepts and policies which the Trump Administration needs, as it breaks free of the British plot to overthrow his Presidency, in order to loudly and clearly reject the suicidal policies of economic and geopolitical confrontation with China and Russia, that the British would impose on the U.S. It is a clarity that the world is urgently looking to hear from Washington.

We refer the reader to “The 2019 Beijing Consensus of the Conference on Dialogue of Asian Civilizations,” which was just released on May 24, as an excellent reflection of the new vision of humanity now spreading across Asia, as well as other continents. This view had already been stressed by China’s President Xi Jinping in his keynote address to the First Belt and Road Forum for International Cooperation on May 14-15, 2017:

“We should build the Belt and Road into a road connecting different civilizations. In pursuing the Belt and Road Initiative, we should ensure that when it comes to different civilizations, exchange will replace estrangement, mutual learning will replace clashes, and coexistence will replace a sense of superiority. This will boost mutual understanding, mutual respect and mutual trust among different countries.”

THE NEW GLOBAL ECONOMIC ORDER

Helga Zepp-LaRouche in China

May 26 (EIRNS)—Schiller Institute founder Helga Zepp-LaRouche has just returned from a 10-day visit to China, including public presentations and extensive private meetings, which she stated went exceptionally well.

The trip began with her participation in the Conference on Dialogue of Asian Civilizations, held May 15 in Beijing, where President Xi Jinping delivered the keynote. Zepp-LaRouche presented a paper and a 10-minute speech, with the title “The Highest Ideal of Mankind Is the Potential of the Future,” which has already been published as part of the Conference proceedings. We feature it immediately below.

She also had daily, high-level meetings with representatives of many top institutions that she has been in touch with since the 1990s. She reported that these occurred at a moment of very grave tensions between China and the U.S.—because of the collapse of the trade talks, the Huawei affair, and other issues—which made her presence all the more important. Many people look to the LaRouche movement for solutions to these problems, she reported.

Zepp-LaRouche also delivered a speech at the Chongyang Institute for Financial Studies of Renmin University in Beijing, and granted a number of media interviews.

In addition to Beijing, Zepp-LaRouche visited Nanjing where she met with the publisher of the Chinese-language edition of the first volume of “The New Silk Road Becomes the World Land-Bridge” special report, and where she learned that they had just published a second printing of that report, because they consider it one of the most important books of their publishing house. They also will be publishing a translation of the new report, “The New Silk Road Becomes the World Land-Bridge, Vol. II.”

STRATEGIC WAR DANGER

‘Bannon Promotes Economic Fascism,’ Says Global TimesEditorial

May 26 (EIRNS)—A May 23 editorial published by China’s Global Times rips into recent comments made to the Hong Kong-based South China Morning Post by the discredited former Trump adviser Steve Bannon, accusing him and others who share his outlook in Washington of promoting “economic fascism.” The editorial takes due note of the fact that “it is uncertain whether they [Bannon’s views] will become the real China policy of the U.S. administration,” but points out correctly that he clearly speaks for “some U.S. elites” in terms of China policy—a view which they see reflected in the recent trade war and Huawei sanctions.

In his SCMP interview, published May 22, Bannon said that Huawei is “a massive national security issue to the West,” and that the U.S. “executive order [against Huawei] is 10 times more important than walking away from the trade deal. It [Huawei] is a major national security threat, not just to the U.S. but to the rest of the world. We are going to shut it down.”

Enamored with the sound of his own voice, Bannon continued: “The next move we make is to cut off all the IPOs, unwind all the pension funds and insurance companies in the U.S. that provide capital to the Chinese Communist Party. We’ll see a big move on Wall Street to restrict access to capital markets to Chinese companies until [they agree to] this fundamental reform.”

Bannon claimed that he “talks to senior officials in the White House every day about China,” but would not provide any specifics.

The Global Times editorial stated that Bannon’s call to take down Huawei “is the most hysteric advocacy by this ultraright-wing opinion leader. Bannon is addicted to the rhetoric of general war on China. With China-U.S. relations heading downward, this radical figure makes himself heard by talking loud.”

The editorial stated that “extremism is rising,” and asserted directly that “Bannon’s China policy is a kind of economic fascism. His real objective of forcing Beijing to carry out fundamental reforms is the economic subjugation of China. Bannon’s threatening words toward China are bringing an opium high to some people amid the U.S. frenzy of suppressing China. Regrettably, besides Bannon, a group of economic fascists have emerged in the U.S. They view China’s economic development and prosperity as a fundamental threat to the U.S. Their disruption of the global supply chain is eroding the foundation of globalization, which will jeopardize peace in the 21st century.”

The editorial then made it clear that it is not ascribing this outlook to President Donald Trump personally, but rather to other powerful forces in Washington, and that therefore China must be prepared for the worst:

“The evil thinking of Bannon against China is the epitome of the vicious ideas of some U.S. elites toward China. It is uncertain whether they will become the real China policy of the U.S. administration. As the trade war escalates, Chinese society should be prepared for deranged U.S. policies. China’s high-tech companies in particular should take precautions.”

The editorial concludes stating that “The huge Chinese market will provide the best conditions for high-tech innovation. Sometimes misfortune is a blessing in disguise.”

Chinese Media Responses to Attacks on Huawei and Trade War Are Getting Increasingly Nasty

May 26 (EIRNS)—The tone of the Global Times editorial calling Steve Bannon a fascist is now typical of the level of acrimony in the Chinese media against Washington’s policies, which they charge are targeting China’s fundamental economic system and “core interests.” For example, a May 25 Xinhua article stated that “At the negotiating table [of the recent trade talks], the U.S. government presented a number of arrogant demands to China, including restricting the development of state-owned enterprises…. Obviously, this is beyond the scope of trade negotiations and touches on China’s fundamental economic system. This shows that behind the United States trade war against China, it is trying to invade China’s economic sovereignty and force China to damage its core interests.” Xinhua stated further that the U.S. is committed to “forcing China to change its development path.”

A May 24 Global Times editorial similarly warned that China had to prepare for a “protracted war” on the trade front. “An increasing number of signs show the China-U.S. trade war will turn out to be a protracted war. Washington, which reached the current situation through sheer bravado, is starting to panic. It is gambling by imposing restrictions on Chinese companies like Huawei, hoping to crush China’s will. But China will not yield. Chinese society is swiftly mobilizing to unite against U.S. pressure and a possible long-term trade war. To defend China’s economic sovereignty, it is worth bearing some short-term pain. The process will stimulate the country to make more breakthroughs in key technology fields and make China stronger.”

The editorial warned that the U.S. policy will backfire on it internationally. “Countries will have a more profound assessment on U.S. bullying. If Washington can play hardball with a strong China, it will more likely coerce other small and medium countries and force them to submit. Second, leading companies worldwide might realize that U.S. enterprises’ stable cooperation with them comes at a price—they must be obedient to the U.S. The cruel fact that the U.S. would resort to anything to bring its rivals to its knees will be remembered by most people and powers across the world.”

State Department Declares Emergency To Accelerate Arms Sales to Persian Gulf Allies

May 25 (EIRNS)—Secretary of State Mike Pompeo issued a statement May 24 announcing that 22 arms deals for Saudi Arabia, the U.A.E., and Jordan, worth about $8 billion, would be speeded up using a little known loophole in the Arms Control Export Act. This action is “to deter Iranian aggression and build partner self-defense capacity.” The statement blames the U.S. Congress for delaying the sales, delays which not only deny these countries capabilities they allegedly need to counter Iran but which also call “into doubt our reliability as a provider of defense capabilities, opening opportunities for U.S. adversaries to exploit.” Pompeo claimed that “Today’s action will quickly augment our partners’ capacity to provide for their own self-defense and reinforce recent changes to U.S. posture in the region to deter Iran.”

Al-Monitor news site obtained an internal State Department memo which apparently was distributed ahead of Pompeo’s public statement which makes even more dubious claims. “Iranian malign activity poses a fundamental threat to the stability of the Middle East and to American security at home and abroad,” the State Department justification states. “Current threat reporting indicates Iran engages in preparations for further malign activities throughout the Middle East region, including potential targeting of U.S. and allied military forces in the region.” It also turns the war on Yemen completely on its head by portraying the Houthis as Iranian-controlled aggressors, without mentioning the thousands of civilians who have been killed as a result of Saudi air strikes.

The Hill reports that notices posted on the Defense Security Cooperation Agency website show the approvals include sales to the Saudis for surveillance aircraft support and maintenance of Saudi aircraft, and to the U.A.E. for 20,004 precision-guided munitions kits, 331 Javelin anti-tank missiles, and 20 RQ-21A Blackjack drones.

In a separate statement, Sen. Chris Murphy (D-CT), the top Democrat on the Middle East subcommittee of the Foreign Relations Committee, said the administration is setting an “incredibly dangerous precedent.” In his statement, Murphy announced that he is currently working on legislation “to restrict arm sales so we can get back in this business of helping set critical foreign policy.”

Pentagon Won’t Provide Evidence of Alleged Iranian Threat

May 25 (EIRNS)—Acting Secretary of Defense Patrick Shanahan announced May 24 that he had approved U.S. Central Command chief Gen. Kenneth McKenzie’s request for additional force protection measures for U.S. forces in the Persian Gulf region. According to an emailed statement, the additional forces include a Patriot air defense battalion, additional intelligence, surveillance, and reconnaissance aircraft; an engineer element to provide force protection improvements throughout the region; and a fighter aircraft squadron. These will be manned by about 1,500 troops (although the Patriot battalion is already in the region—it will just be staying longer than initially scheduled).

Later, Katie Wheelbarger, the Acting Assistant Secretary of Defense for International Security Affairs, and Vice Adm. Michael Gilday, Director of the Joint Staff, attempted to justify these additional deployments to reporters at the Pentagon, a few of whom apparently remembered the infamous briefings in the runup to the 2003 invasion of Iraq about the weapons of mass destruction in the hands of Saddam Hussein, which turned out not to exist. The additional capabilities, Wheelbarger said, “are intended to enhance our defenses, harden our positions and provide additional [intelligence, surveillance, reconnaissance] ISR coverage to see the threat [from Iran], to be able to illuminate the threat more clearly.”

The heart of the matter, however, continues to be the “intelligence” on which all of this is based. “While we won’t be able to declassify all the available intelligence, we believe that Iran’s actions and threats are troubling, escalatory and dangerous to our U.S. forces, our interests and those of our regional partners,” Gilday said. He claimed that Iran was carrying out a “campaign” against the U.S. military and U.S. interests in the Gulf region which has generated threat streams that “range from the Bab al-Mandab in Yemen, all the way to the Strait of Hormuz, and up into Iraq.” In this vein, Gilday attributed the tanker attacks in Fujairah, the Houthi drone attacks on Aramco pumping facilities that occurred shortly after, and the RPG rocket that landed in the Green Zone in Baghdad about a week ago, to Iran or Iranian proxies.

One reporter, not identified in the Pentagon transcript, put Gilday on the defensive, however, demanding, “Where is your proof?” and further insisting, “You haven’t provided any evidence.”

“So the Iranians said that they were going to close the Strait of Hormuz.  The Iranians struck those—those tankers. The Iranians struck the—that pipeline facility in Saudi Arabia through their proxies in Yemen,” Gilday said. “We know that they’re tied directly to those proxies.  We know that they’re tied directly to the proxies in Iraq that launched the rocket.”

“Not enough,” the reporter replied, asking Gilday if he would “provide us with anything that backs this up?” to which Gilday replied, “I can’t reveal the sources of that reporting except to say, that in very high confidence, we tie the Iranians to those—to those….”

“Well that sounds like WMD.  What do you have to back up your case?” the reporter pressed further.

“I’m not reverse engineering this,” Gilday protested. “The Iranians—the Iranians have said publicly they were going to do things. We learned more through intelligence reporting they have acted upon those threats and they’ve actually—they’ve actually attacked.”

“So we have to take your word on it?” the reporter asked again, before Pentagon press staff cut off the exchange.

Retired Military Officers and Diplomats Sign Open Letter to Trump To Avoid War with Iran

May 25 (EIRNS)—The American College of National Security Leaders, a consortium consisting of retired admirals, generals, ambassadors, and senior government executives committed to strengthening America’s national security is coordinating an open letter to President Donald Trump to avoid war with Iran, which was publish by “War on the Rocks” website May 24.

After identifying the serious military tensions in the region, including U.S. deployment of an aircraft carrier strike group and B-52s bombers, the letter states: “The lack of direct communication between U.S. and Iranian political and military leaders during a time of heightened rhetoric only increases the possibility of a miscalculation resulting in unintended military conflict. Washington and Tehran are talking past each other and taking actions the other views as dangerously provocative at best and the beginning of forceful action at worst.

“We were heartened by your reported desire to avoid war with Iran in favor of other tools, including common-sense diplomacy. While economic sanctions against Iran have had the beneficial effect of reducing financial support for Hezbollah in Lebanon, these, as well as military threats against Iran have thus far proved ineffective in changing the regime’s behavior and have likely reaffirmed the beliefs of Tehran’s hardline elements that compromise with the United States is impossible.

“As President and Commander-in-Chief, you have considerable power at your disposal to immediately reduce the dangerous levels of regional tension. Crisis de-escalation measures should be established with the Iranian leadership at the senior levels of government as a prelude to exploratory diplomacy on matters of mutual concern. The protection of U.S. national interests in the Middle East and the safety of our friends and allies requires thoughtful statesmanship and aggressive diplomacy rather than unnecessary armed conflict.”

The letter is signed by some 75 retired ranking military officers and ambassadors.

U.S. POLITICAL AND ECONOMIC

President Orders U.S. Intelligence To Cooperate with Barr Probe of 2016 Election Surveillance

May 24 (EIRNS)—President Trump’s Press Secretary Sarah Sanders announced May 23 the President’s Authorization for Declassification of all political surveillance activities during the 2016 Presidential campaign.

Press Secretary Sarah Sanders read this statement:

“Today, at the request and recommendation of the Attorney General of the United States, President Donald J. Trump directed the intelligence community to quickly and fully cooperate with the Attorney General’s investigation into surveillance activities during the 2016 Presidential election. The Attorney General has also been delegated full and complete authority to declassify information pertaining to this investigation, in accordance with the long-established standards for handling classified information. Today’s action will help ensure that all Americans learn the truth about the events that occurred, and the actions that were taken, during the last Presidential election and will restore confidence in our public institutions.”

Nunes Letter Urges Trump To Ask British Government about Its Role in Steele Dossier

May 24 (EIRNS)—On May 22, Rep. Devin Nunes (R-CA), Ranking Member of the House Intelligence Committee, wrote a letter to President Donald Trump, giving seven lines of questioning about the British government’s involvement in the Christopher Steele dossier and its use, which Nunes recommends that the President pursue when he makes his state visit to Great Britain on June 3-5. Nunes wrote, “I respectfully request that you ask Prime Minister May about the British government’s knowledge of the Steele dossier and whether the British government took any unilateral actions based on information provided by Steele or at the request of any U.S. departments or agencies, including, but not limited to the Federal Bureau of Investigation.”

Nunes begins his letter to the President, by informing him that on May 19, the Daily Telegraph published an article titled, “Theresa May’s Spy Chiefs Were Briefed on Explosive Christopher Steele Dossier before Donald Trump.” The Telegraph reported that Steele, the “former” British MI6 agent who authored the dossier paid for by the Democratic National Committee, personally briefed British intelligence officials on the dossier, and its contents rapidly spread up the chain to high-level British government officials, including MI5 director general Andrew Parker and MI6 chief Alex Younger.

Nunes says the Telegraph’s assertions, if true, “raise important questions about the potential role foreign government officials may have played in spreading the dosser’s false allegations, and what actions they may have taken in response to the allegations.”

Guilty Coup Plotters Are Hysterical That President Trump Has Given Barr Power To Expose Them

May 25 (EIRNS)—Multiple hysterical articles appeared in the establishment press today covering President Donald Trump’s announcement that he is giving Attorney General William Barr full authority to declassify any or all material which may be necessary to expose how the treasonous coup attempt against the President of the United States was launched. Leading the pack, of course, was the New York Times, whose headline is: “Potential Clash over Secrets Looms Between Justice Department and CIA,” claiming that the CIA Director Gina Haspel and Director of National Intelligence Dan Coats will not put up with this affront to their power.

In fact, Coats did release a statement which is in effect a middle finger to the President and Attorney General, stating his “confidence” that Barr would not ask him to declassify anything he doesn’t want to. The Coats memo reads:

“Much like we have with other investigations and reviews, the Intelligence Community (IC) will provide the Department of Justice all of the appropriate information for its review of intelligence activities related to Russian interference in the 2016 presidential election. As part of that process, I am confident that the Attorney General will work with the IC in accordance with the long-established standards to protect highly-sensitive classified information that, if publicly released, would put our national security at risk. The IC will continue to faithfully execute its mission of providing timely, apolitical intelligence to the President and policymakers.”

Note: Barr is not “reviewing” the lie about “Russian interference in the election,” but the IC’s criminal role in a coup attempt in cooperation with the Britain and Australia, including their intelligence agencies.

The Times runs a diversionary story, claiming: “The most prominent of the CIA’s sources of intelligence on Russia’s election interference was a person close to Mr. Putin.” This (probably imaginary) source demonstrated to President Obama that “Mr. Putin himself was behind the Russia attack.”

But never fear, proclaims the Times, House Intelligence Chairman Rep. Adam Schiff is on the job, who informed the Times that Trump is now “declassifying intelligence in order to weaponize it,” and that Schiff “pledged that his committee would closely monitor Mr. Barr’s actions in the inquiry,” and “expose any abuse, any politicization of intelligence.” At least until he is sent to jail, one might add.

The Daily Beast headline captures the hysteria: “Presidential Harassment—Trump’s Public Enemies List Is an Impeachable Offense.”

Trump Is ‘Not Disturbed’ by North Korea’s Rocket Launches, Directly Contradicting Bolton

May 26 (EIRNS)—President Donald Trump, in Tokyo for a state visit, dismissed the North Korean rocket launches of earlier this month and said he was confident that the country’s leader, Kim Jong Un, would keep promises that he had made. “North Korea fired off some small weapons, which disturbed some of my people, and others, but not me. I have confidence that Chairman Kim will keep his promise to me….” Trump said today on Twitter.

Trump’s comment about “some of my people” was a clear reference to his National Security Adviser John Bolton, who had claimed hours earlier that the rocket launches were UN violations. “UN Security Council resolutions prohibit North Korea from firing any ballistic missiles,” Bolton told reporters in Tokyo. “In terms of violating UN Security Council resolutions, there is no doubt about that.”

Trump’s tweet left chicken-hawk Bolton looking even more foolish than usual.

Gen. Robert Abrams, the commander of U.S. Forces Korea, expressed a view similar to his Commander-in-Chief. “My own perspective is that militaries around the world conduct routine military activities that include training of their specific capabilities, and we ought to just leave it at that,” Abrams said on May 22 during the U.S. Army’s Land Forces Pacific Symposium in Honolulu, when asked about North Korea’s missile launches. “I can tell you this, recent activities on the peninsula by the D.P.R.K. have not changed the palpable reduction of tension on the peninsula and the door for diplomacy remains open.”

COLLAPSING WESTERN FINANCIAL SYSTEM

British Prime Minister Theresa May Has Resigned

May 24 (EIRNS)—Prime Minister of Great Britain Theresa May has announced her resignation, to take effect on June 7 when she will step aside as Conservative Party leader, thus ending three years characterized as having been one blunder after another. Speaking in front of No. 10 Downing Street she said: “It is and will always remain a matter of deep regret to me that I have not been able to deliver Brexit,” referring to Britain’s withdrawal from the EU.

She made her announcement immediately after a meeting with Graham Brady, the chair of the backbench 1922 Committee, which apparently threatened to prepare a second no-confidence vote if she refused to resign.

Her announcement means the last Brexit deal is dead, and any action on Brexit is postponed again until there is a new prime minister or even new elections.

Labour Party leader Jeremy Corbyn commented: “The Prime Minister is right to have resigned. She has now accepted what the country has known for months: She cannot govern, and nor can her divided and disintegrating party…. Parliament is deadlocked and the Conservatives offer no solutions to the other major challenges facing our country.”  Corbyn argued for the Tories to spare the nation any more Conservative infighting and to call for “an immediate general election.”

Joining Corbyn in urging for a general election, Unite trade union General Secretary Len McCluskey insisted, “This farce has to end. The challenges before our country are too great and the need to restore fairness to our society too urgent, they are ill-served by this pantomime. A general election now is the only honorable and sensible way forward.”

President Trump Announces $16 Billion Farm Aid, Puts Blame on China ‘Trade Retaliation’

May 24 (EIRNS)—At a White House ceremony yesterday with farmers, ranchers, and Agriculture Secretary Sonny Perdue, President Donald Trump announced he has authorized the USDA to spend up to $16 billion in “trade mitigation programs” to aid U.S. farmers. The May 23 White House Fact Sheet entitled, “President Donald J. Trump Will Always Support America’s Farmers,” explains that Trump is defending American farmers from “China’s unjustified trade retaliation,” and that the volume of funding is in line with the estimated impact of China’s actions.

The concept of the new package is like last year’s $11 billion worth of federal payments to farmers, e.g., a soybean grower got $1.65 a bushel in federal subsidy, bringing the total price he might get to $9-$12 a bushel, which may not have allowed him to break even.

The impetus to aid the family farm sector is acutely welcome. U.S. family farms are in an income crisis, from nearly five years of low prices for their output, starting well before the Trump Administration, and worsening under the trade confrontations since 2018. Add to that, natural disasters that are made catastrophes by infrastructure breakdown. But beyond income aid, the continued focus on “free trade” as the presumed solution to everything—instead of parity pricing and production management—is a continuation of the British Empire globalization that created the crisis in the first place, and which the President has otherwise denounced.

U.S. Commerce Secretary Ross Pressured Mexico against Chinese Foreign Investment ‘in Strategic Projects’

May 24 (EIRNS)—According to Alfonso Romo, Mexican President Andrés Manuel López Obrador’s chief of staff and one of the top powers in his cabinet, U.S. Commerce Secretary Wilbur Ross pressured Mexico last month to not have Chinese foreign investment in the country, “especially in strategic projects.” According to the May 23 issue of El Financiero, Romo said that Ross recently told him that part of the quid pro quo for removing American steel and aluminum tariffs against Mexico, is that Mexico should not have any “active investment” by China. Romo reported this publicly on May 23 at the annual meeting of Canacero, the Iron and Steel Industry National Chamber of Commerce.

Romo said that Ross raised the China matter on April 12, at a meeting of the U.S.-Mexico CEO Dialogue. El Financiero quotes Romo: “In Merida, after the CEO Dialogue ended, a number of members from Mexico had a meeting with Secretary Wilbur Ross. I’m going to tell you an anecdote which was very interesting; once all of the 232 (tariffs on Mexican steel and aluminum) was over, he said to us: ‘Well, I want to ask for a number of things; we want to strengthen our relationship because the only path the U.S. has is to have a very strong common front trade bloc to compete with China,’ he said.”

Romo continued his account of what Ross had told him: “Second, we don’t want any very active participation of Chinese investment in Mexico, especially in strategic projects. Third, we want you to help us stop migration coming from Central America; and fourth, the President made a commitment, and we will therefore be very careful about how we negotiate 232.”

Romo recounted that he had told Ross: “It’s easy against Mexico; you ask us for four things, but you don’t want tomatoes; so you have to decide if you want tomatoes or migrants, or steel and migrants.”

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