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Date Posted: 10:21:09 11/15/07 Thu
Author: part 3
Subject: Re: November 15, 2007
In reply to: part 2 's message, "Re: November 15, 2007" on 10:20:01 11/15/07 Thu

ECO-FIN

IN THE WORLD OF TRILLIONS OF DOLLARS OF HEDGE FUNDS, REMEMBER
THESE OTHERS

Nov. 14, 2007 (LPAC)--In a report released Nov. 14, the
International Food Policy Research Institute (IFPRI), pointed out
that at least 162 million people are living on less than 50 cents
a day (this after the dollar has lost its shine!).
Despite the flatness of the world, as discovered by Tom
Friedman, and the hallelujas sung to glorify the economic
liberalization and globalization over the last two decades, IFPRI
says that very little poverty reduction occurred in this category
of the ultra-poor. If you considered these 162 million belonging
to a nation, such a nation would be the seventh-largest in the
world after China, India, the United States, Indonesia, Brazil,
and Pakistan.
According to IFPRI, 121 million of the 162 million live in
sub-Saharan Africa and about 29 million in South and East Asia.
Nigeria is the most populous country in the region and accounts
for between 21% and 30% of the ultra, medial and subjacent poor
people living in the subcontinent. Between 1990 and 2004, the
country saw increases in all three poverty categories, with a
substantial rise in ultra poverty, the IFPRI report says.
In Zambia, the severity of poverty experienced by many
people lessened between 1990 and 2004, with the rate of ultra
poverty falling nearly 6%. [RMA]

BANKING "WRITE-DOWN" BLOODBATH

Nov. 14, 2007 (LPAC) -- The banking "write-down" bloodbath
continues to spread through the world's largest banks:
* On Nov. 14, HSBC took a $3.4 billion "impairment charge"
on its third quarter report, which consisted of its subdivision,
HSBC Finance, provisioning $3.4 billion for loan-loss reserves to
cover losses from its deteriorating U.S. mortgage portfolio. HSBC
had already announced in September, that it would shut down its
Decision One Mortgage unit; on Nov. 14, it announced it would
close or consolidate 260 consumer-lending branches in the U.S.,
which is one-fifth of the HSBC's U.S. consumer-lending units
(HSBC owns both Beneficial Finance and Household Finance lending
companies). HSBC was compelled to take an immense $10.6 billion
loss due to non-performing U.S. mortgages during 2006. HSBC (the
HongKong and Shanghai Banking Corporation) is Britain's largest
bank; it is one of the ten largest in the world.
* During the third quarter, the effect of the ongoing
systemic collapse of the dollar-based world financial system,
struck Japan's banking system hard. Mizuho Financial Group, one
of Japan's Big Three banks, took a $630 million write-down,
largely due to its exposure to U.S. Mortgage-Backed Securities.
During the same quarter, Sumitomo Mitsui, another one of Japan's
Big Three banks, reported a $288 million write-down.
* Fannie Mae, a giant in the secondary housing market, and
the biggest source of money to the U.S. housing market, announced
Nov. 11 that its third-quarter loss more than doubled to $1.39
billion. Fannie Mae stated that its loss arose as the housing
crash caused a mark down in the value of Fannie Mae's risky
derivatives contracts. Fannie Mae owns or guarantess $2.7
trillion of U.S. mortgages; were Fannie Mae's situation to
continue to implode, that, by itself, would disintegrate the $20
trillion U.S. housing bubble.
* A cavalcade of banks is lining up to announce write-downs
for the fourth quarter, though normally such announcements would
not come for two more months. On Nov. 13, Bank of America
announced, for that quarter, that it would carry out write-downs
of $3 billion; Bear Stearns announced it would write-down $1.2
billion; it is anticipated that Merrill Lynch will announce $3-4
billion, and Citigroup $10-11 billion in write-downs for the
fourth quarter. However, all this constitutes only a fraction of
the true losses that the banks are actually carrying on their
books. [ref]

ROYAL BANK OF SCOTLAND: ROYALLY IMPAIRED

Nov. 14, 2007 (LPAC)--The Royal Bank of Scotland (RBS), the
second largest bank in Britain, and the seventh largest bank in
the world, is experiencing deepening problems, which include a
sizeable exposure to the highly volatile credit derivatives
market. RBS merely typifies the problem of the entire British
banking system, that while it maintains a stiff upper lip, the
rest of the body is decomposing.
RBS' stock price has plummeted from 691.5 pence to 387.5
pence, since the beginning of 2007, a loss in total stock
capitalization of 29.4 billion pounds ($60 billion). RBS
possesses billions of dollars worth of assets linked to CDOs,
MBSs, and other non-performing paper. On Oct. 31, Sandy Chen,
analyst at the British investment firm Penmure Gordon, downgraded
RBS' stock from "hold" to "sell", meaning that deeper problems
will cause RBS stock to fall further. Chen told the Nov. 14
London {Daily Telegraph}, that his concern is that when an
RBS-led consortium acquired the Dutch banking giant ABN Amro on
Oct. 10 for $102.7 billion, it also acquired ABN's troubled
financial condition. Chen noted that ABN Amro holds 1.5 trillion
euros ($2.17 trillion) notional value of credit derivatives,
which is more than 5% of all credit derivatives in the world.
These are highly risky instruments. "Given the ongoing
deterioration in credit markets and the pressures on some key
counterparties, we see a risk of substantial mark-to-market
charges." That is, these derivatives are going to be considerably
marked down in value.
Citigroup financial analyst Simon Samuels warned that RBS is
dangerously "ueber-leveraged." It does not have sufficient bank
capital to cover all the future losses that are just over the
horizon. As representative, the Royal Bank of Scotland indicates
that the collapsing British banking system will soon be royally
flushed. [ref/dea]

BANKS SHELL OUT BILLIONS TO PROP UP MONEY MARKET FUNDS

Nov. 14, 2007 (LPAC)--Banks are now in emergency mode, pouring
billions of dollars into money market funds, and absorbing losses
from those funds, rather than permit investors to pull their
money from those funds en masse. Currently, millions of
investors -- some large institutions, but mostly average
citizens -- have invested $3 trillion into U.S. money market
funds, which are supposed to be ultra-conservative and safe.
Money market funds take in money from investors, investing
that money into financial paper that has a maturity, on average,
of 90 days or less. The invested-in financial paper must have a
credit rating of AAA, and not be risky. On that basis, tens of
millions of households trusted money market funds, just as they
do their bank savings accounts: money market funds and bank
savings accounts are the two principal ways that households save.
Over the past several years, to get higher yields, money
market funds have invested their funds into primary speculative
investments, such as offshore Structured Investment Vehicles
(SIVs), offshore conduits, Collateralized Debt Obligations
(CDOs), all of which invested their funds, in turn, into
Mortgage-Backed Securities, mortgage-backed commercial paper,
etc. For a brief while, the primary speculative investment
instruments, such as SIVs and conduits, carried AAA ratings. Now,
many are losing money hand over fist, which losses are passed on
to the money market funds.
The money market funds are supposed to pass the losses onto
to the millions of investors who invested in them. This would
mean losses for millions of people. However, the banks can't
afford to let that happen: once people see that money market
funds are not safe and sound, they would withdraw their money in
droves, imploding the entire money market fund sector.
According to the {New York Times} Nov. 14, the Bank of
America has poured $600 million into several money market funds
run by its subsidiary Columbia Management, which purchased large
amounts of debt issued by SIVs, which debt is now worth less than
the money market funds paid for it. Credit Suisse bought $125
million in unrealized losses off the books of its money market
funds. Legg Mason Securities put together a $238 million credit
line, to shore up two of its money funds. There is only so long
that the appearance of money market fund solvency, and thus
'normalcy' in the banking system, can be falsely maintained.
[ref]

ONE SEVENTH OF DULLES CORRIDOR COMMERCIAL REAL ESTATE IS NOW
VACANT, IN 'GROUND ZERO' LOUNDOUN COUNTY

Nov. 14, 2007 (LPAC))--The distinctive sound of a solitary foot
step clanking in the hall way of an empty building in the Dulles
Corridor, in 'Ground Zero' Loudoun County, is now commonplace.
The Dulles Corridor is the 8-mile area around Dulles Airport,
which attracted the likes of companies such as Sprint,
Volkswagen, and Sallie Mae, to occupy large commercial complexes
there. Today, of the 53.2 million square feet of office space
that exists in the Dulles Corridor, 14.7% -- or 7.7 million
square feet -- stands vacant, compared to a vacancy rate of only
2.1% in 1997.
Even closer by, in the office complex where the national
center is located, the vacancy rate has been 11% for over a year.
Speculation processes built the Dulles Corridor. First, the
"fool's gold" of the dot.com boom, which went resoundingly bust
in March 2000. Then, after Sept. 11, 2001, the federal
government began pumping money into nationial security programs,
with many of these dollars going to Northern Virginia developers.
But not for lack of trying, that is slowing down. "There is going
to be a lot of competition for tenants out there, and I am not
going to paint a pretty picture," George F. McKenzie, CEO of the
the Rockville, Maryland-based Washinton Real Estate Investment
Trust informed analysts during a conference call last month,
speaking about the vast vacancies.
Simultaneously, the Loudoun County residential property side
of the boom has collapsed, serving as Ground Zero for the
nationwide housing bust. Families, foreclosed from their homes,
are put with their belongings out on the street. Urgent carrying
out of LaRouche's Homeowners and Bank Protection Act is the only
barrier that can stop Loudoun County from becoming a depopulated,
desolated wasteland. [ref]

BUILDER OF LEVITTOWN FILES FOR BANKRUPTCY

Nov. 14, 2007 (LPAC)--Historic builder, Levitt and Sons,
announced Nov. 11 that the company and 37 of its subsidiaries
filed for bankruptcy in Fort Lauderdale, FL, blaming
"unprecedented conditions." It had already halted all projects,
laid-off nearly 90% of its staff, and failed to successfully
negotiate with its bank lenders to restructure its debt. The firm
is best known for Levittown, a community developed on Long
Island, NY for returning World War II soldiers and their
families. Likewise, Sacramento-based Dunmore Homes filed for
Chapter 11 bankruptcy protection late last week; it had stopped
building in August. [ajt]

CALIFORNIA, FLORIDA, AND OHIO CITIES HARDEST HIT BY NATIONWIDE
FORECLOSURE WAVE

Nov. 14, 2007 (LPAC)--RealtyTrac, the Irvine, Calif.-based real
estate information provider, reported today that cities in just
three states -- California, Ohio and Florida -- combined
accounted for 17 of the top 25 metropolitan foreclosure rates
during the third quarter of 2007. The rising foreclosure activity
was not limited to these former housing market "hot spots,"
however, as 77 out of the top 100 metro areas reported more
foreclosure filings in the third quarter compared to the previous
three-month period.
At the epicenter, Stockton, Calif. had the highest
foreclosure rate, of one filing for every 31 households. With a
total of 7,116 foreclosure filings on 4,409 properties, this was
up 30% from the previous quarter, and more than five times the
level one year earlier. (Multiple foreclosure actions could be
filed on a single property.) Detroit, decimated by the takedown
of the auto industry, ranked second-highest with a rate of one
foreclosure filing for every 33 households. Its total of 25,708
filings on 16,079 properties was twice the number in the second
quarter. Riverside-San Bernardino, Calif. recorded the
third-highest rate, of one foreclosure for every 43 households.
Rounding out the metro areas with the worst foreclosure
rates were: Fort Lauderdale, FL; Las Vegas; Sacramento, CA;
Cleveland; Miami; Bakersfield, CA; and Oakland, CA. California
cities together represented seven of the top 25 metro foreclosure
rates, while Florida and Ohio each accounted for five. [ajt]

BYE, BYE, BIOFOOLS: THE ETHANOL BUBBLE BURSTS

Nov. 14, 2007 (LPAC) -- The spectacular reversal of the fools'
rush into corn ethanol production is documented in today's issue
of the Paris daily {Le Figaro.} (And don't say we didn't warn
you.)
Many biofool production sites in the American Midwest have
stopped production. The price of corn, which represents 70% of
production costs, increased by 21%, while the price of ethanol
dropped by 16%.
The domestic demand for ethanol is estimated at 7 billion
gallons, but if all production facilities that exist (125) and
those under construction (85) go into production, total output of
ethanol next year will be 12 billion gallons.
Not mentined is that conversion of agricultural land to fuel
production has already produced food shortages, including a
serious crisis in Mexico where corn is a staple of the diet.
Many people in the Midwest were so desperate that they
blindly went into the business, saying this is the first
industrial investment in our area in 25 years, {Le Figaro}
reports.
With modern high-temperature nuclear reactors,
hydrogen-based fuels can be efficiently produced locally,
eliminating the shipping of crude oil on transoceanic voyages.
LaRouche has called for a focus on nuclear power production as
the only sound basis for global economic recovery. [kav,lmh]

SCI-TECH

INDIA TO BUILD FOUR NEW 500 MW FAST-BREEDER REACTORS BY 2020

Nov. 14, 2007 (LPAC) -- Four new fast breeder reactors, which
will be used to convert India's abundant thorium supplies into
fissionable uranium, are approved for construction by 2020, the
Director of the Indira Gandhi Centre for Atomic Energy, Baldev
Raj said in Mombai on Nov. 14. The reactors will also generate
excess power for the electricity grid.
India's Planning Commission has already cleared the 500 MW
fast breeder reactors, each costing around Rs 31 billion (about
$800 million). Two of the reactors will be set up at Kalpakkam
in Tamil Nadu, alongside the existing Fast Breeder Test Reactor
(FBTR) and the Prototype Fast Breeder reactor (PFBR), which is
under construction, Raj told Press Trust of India (PTI) on the
sidelines of ongoing International Symposium on Energy Related
Materials.
India's fast breeder reactor program is primarily to develop
fissile uranium-233 fuel from the country's abundant supply of
thorium-232. These breeder reactors use plutonium to trigger the
reaction through the release of free neutrons. The breeders are
the second-stage of India's three-stage self-sustaining nuclear
power program, designed by late scientist Dr. Homi Bhabha in the
1960s. The third and final stage will use the fissile uranium-233
generated from thorium-232 by the breeder reactors.
India's three-stage program was primarily designed to
establish thorium as India's only nuclear fuel, since India has
the world's second-largest thorium reserves in the form of
monazite ore found in the sands of the Kerala coast. India has
very little natural uranium. Its thorium program is aimed at
achieving independence in nuclear fuel. [RMA]

STUNG BY HIGH OIL PRICES, ASEAN IS READY TO ENDORSE NUCLEAR POWER

Nov. 14, 2007 (LPAC)--According to a draft of an ASEAN
Declaration on Environmental Sustainability, obtained by AFP,
Southeast Asian leaders will promote the use of civilian nuclear
power, along with other alternative energy sources, when they
meet in Singapore next week.
Heads of state and government from ASEAN's member states
Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
Philippines, Singapore, Thailand, and Vietnam are to sign the
document next Tuesday, Nov. 20, during their annual summit.
While, according to the draft, the leaders will agree "to
take concrete measures to promote the use of renewable and
alternative energy sources," more importantly, they will also
support "civilian nuclear power" for interested countries. The
draft says ASEAN will ensure "safety and safeguards that are of
current international standards and environmental
sustainability." They will also set in motion a plan to establish
a "regional nuclear safety regime" to ensure that plutonium, a
key ingredient for making atomic weapons, does not fall into the
wrong hands.
Indonesia, Thailand, and Vietnam have announced plans to
build nuclear power plants by 2020 in a bid to cut their
dependence on crude oil and natural gas. [RMA]

JOINT GERMAN-RUSSIAN VENTURE TO BUILD NUCLEAR POWER PLANTS

Nov. 14, 2007 (LPAC)--The Russian Federal Atomic Energy Agency
(Rosatom) and Germany's leading energy technbology firm Siemens
have signed a memorandum of intent for cooperation in developing
the energy sector, especially nuclear power generation, Rosatom's
press office reported.
The document provides for cooperation in building new
nuclear power plants according to Russian designs, both in Russia
and abroad, with the use of Siemens technology. Collaboration is
also foreseen in redeveloping and modernizing operating power
generation units, as well as industrial cooperation in nuclear
equipment production, including technology transfer.
To elaborate on specific projects, consultations will be
held involving specialists from Atomstroyexport, the VNIIAES
research institute, and Rosenergoatom. (rbc, rap)

UNITED STATES

ANOTHER SORDID GIULIANI STORY

Nov. 14, 2007 (LPAC)--On Tuesday, Judith Regan filed a $100
million defamation suit against her former employer, News Corp,
whose chairman is Rupert Murdoch. Regan claims that executives at
News Corp carried out a six year campaign of dirty tricks against
her to advance News Corp's political agenda, "which has long
centered on protecting Rudy Giuliani's presidential ambitions."
Regan charges that an unnamed senior News Corp. executive
"counseled Regan to lie and withhold information from
investigators" about her acknowledged affair with former New York
City Police Commissioner Bernard Kerik. Another unnamed News
Corp. executive "advised Regan not to produce clearly relevant
documents in connection with a governmental investigation of
Kerik." (wfw)

EVEN BLOGS DEHUMANIZE PEOPLE

Nov. 14, 2007 (LPAC)-- An article in Wednesday's {Washington
Post} "Style" section, entitled, "When blogs bite, they hurt! The
Dark Side of Cyberspace," laments the tendency of blogs to bring
out the "nasty" in people. Picking up on how even the slghtest of
foibles in people can now be the subject of "unending gossip,"
the article includes some useful computer history, noting that
this exact tendency was known from day one of computer
communications. "The cloaking anonymity of the internet provides
a safe place for unleashing the id," they say at one point.
Former Grateful Dead lyricist John Perrymore Barlow, now head of
the Electronic Frontier Foundation, says that Cyberspace, "has a
way of making us feel like other people are informational
artifacts. If you cut data it doesn't bleed."
It is part of the public record that the origin and
development of computer networking, understood in these circles
as computer "communication," was done under the protective wing
of the US Department of Defense, as part of the cold war DARPA
(Defense Advanced Research Projects Agency) program. IPTO, or
Information Processing Techniques Office, the division dealing
with computer networking, was directed, not by an engineer, but
by a behavioral psychiatrist, J.C.R. Licklider. The Post quotes
one of his many biographers, Mitch Waldrop, who notes that,
"Bad behavior online goes back to at least the 1960s. As soon as
possible, people were doing it," a fact that could not have
escaped the peering presence of Licklider and his pioneering
psychos.
This information fed directly into the thinking behind the
creation of the Revolution in Military Affairs, aspects of which
can be seen today, all the way from Baghdad to the "spontaneous"
eruption of "video game" killers. [mpb]

WESTERN EUROPE

GERMAN GOVERNMENT RESHUFFLE, BUT NO NEW POLICY

Nov. 14, 2007 (LPAC)--After the resignation yesterday, of German
Vice Chancellor and Labor Minister Franz Muentefering, a
reshuffle of the coalition government of Christian Democrats
(CDU-CSU) and Social Democrats (SPD) was necessary. SPD party
chairman Kurt Beck did not enter the government, which is seen as
an indication that he wants to concentrate on building his
nomination for SPD chancellor candidate in the next national
elections. Being a member of an increasingly unpopular government
is regarded as a negative.
Muentefering, a Social Democrat, was replaced by Foreign
Minister Frank Walter Steinmeier as Vice Chancellor, and by Olaf
Scholz, another prominent Social Democrat, as Labor Minister. In
terms of German foreign policy continuation from the Schroeder
period, the Steinmeier upgrading in the cabinet may be useful,
but limited at the same time, because Chancellor Angela Merkel is
not expected to change her neo-con foreign policy -- and more
conflicts with her foreign minister seem certain.
In terms of domestic labor and social policies, the
Government is expected to stay on its budget-balancing course,
which implies that its Hartz IV and Maastricht policies will not
be changed, at least not voluntarily. Pressure from among the
population and electorate, especially the SPD party base, is,
however, building on the SPD to change policy, therefore more
Social Democratic conflicts with the Chancellor over labor and
social affairs can be expected. Whether this government will
survive, after the reshuffle, is not at all certain, because
Finance Minister Peer Steinbrueck, who is firmly committed to
keeping the Maastricht and Hartz IV course, and Transport
Minister Wolfgang Tiefensee, who is firmly committed to sticking
with the railway privatization plan, are faced with increasing
opposition from among their own Social Democrats.
At least one thing is certain: for those frustrated Social
Democrats, who are not lured into the Linkspartei, the BueSo will
become more attractive now. And that is actually, where the
impulse for a policy change of the SPD and the Government towards
the LaRouche "Firewall" approach will come from. (rap)

SARKOZY ADMITS EU TREATY REFERENDUMS WOULD BE LOST

PARIS, Nov. 14--"Referendums on the new European Union Treaty
were `dangerous' and would be lost in France, Britain," admitted
French President Nicolas Sarkozy, according to today's {Daily
Telegraph}.
"The French President's confession that governments could
not win popular votes on a `simplified treaty' -- drawn up to
replace the EU constitution rejected by his countrymen two years
ago -- was made in a closed meeting of senior Euro-MPs. France
was just ahead of all the other countries in voting no. It would
happen in all member states if they have a referendum. There is a
cleavage between people and governments," he said. "A referendum
now would bring Europe into danger. There will be no treaty if we
had a referendum in France, which would again be followed by a
referendum in the U.K." (kav)

SCOTTISH NATIONAL PARTY SETS 2017 AS DATE FOR INDEPENDENCE

Nov. 14, 2007 (LPAC)--According to {The Scotsman}, Alex Salmond,
the First Minister of Scotland, for the first time today, set a
target date for Scottish independence from the United Kingdom.
Salmond made the announcement that he anticipated that Scotland
would break away from the UK by 2017.
The context for the announcement was the presentation of the
Scottish National Party's (SNP) first budget in government. The
42-page document outlines a strategy to bring Scotland's economic
growth rate up to that of the UK by 2011. This could be done with
Scotland as a part of the UK, Salmond maintained. However,
Scotland would need the full powers of independence to achieve
all of the targets in the document. Salmond said: "Over the last
30 years, Scotland's growth has averaged just 1.8% -- around a
half of the average rate of growth for small European countries.
Over the last 25 years, this same figure can be compared to the
UK's growth rate of 2.3%. It would be much easier if we had the
full powers of an independent country. Therefore, I was
anticipating being in that position by 2017." (smt,wfw)

ASIA

A HISTORIC MEETING IN PROGRESS AT SEOUL

Nov. 14, 2007 LPAC -- The prime ministers of South and North
Korea started a three-day (Nov. 14-16) talks on Wednesday in
Seoul, the first in 15 years. The talks are expected to lead to
reconciliation and closer economic cooperation between the two
countries. North Korean premier Kim Yong-il and his South Korean
counterpart Han Duck-soo are expected to discuss economic
programs, including a railway link, creation of a fishing zone,
shipbuilding projects and the joint use of ports. Seoul officials
are also expected to push for an early expansion of a South
Korea-built industrial complex in the North's border town of
Kaesong, the key symbol of rapprochement between the divided
Koreas following the first-ever summit of their leaders in 2000.
At a briefing in the press center for the inter-Korean Prime
ministerial talks, South Korean Unification Minister Lee
Jae-joung said that Wednesday's plenary meeting between the two
sides was held in a "amicable" atmosphere. "The day's meeting
ended amid a good atmosphere, as it began in a very amicable mood
and the sides attended it with a very friendly and enthusiastic
attitude," Lee said.
The atmosphere in which the talks began was extremely
positive. The visiting North Korean premier, Kim, described the
joint declaration adopted in last October's inter-Korean summit
as a "milestone" that would open up a new era of peace and
reconciliation for the divided Koreas, South Korean officials
said. He vowed to make the utmost efforts to produce "positive
results" in talks. [RMA]

PAKISTAN ARMY AND WASHINGTON ON A COLLISION COURSE

Nov. 14, 2007 (LPAC)--US Deputy Secretary of State John
Negroponte will be in Islamabad at the end of this week to loosen
the logjam which has developed between Islamabad and Washington.
His likely agenda is to get Pakistani President Pervez Musharraf
to lift the emergency, shed his uniform, hold elections, and
somehow bring Washington's and London's latest poodle, Benazir
Bhutto, to share power in Islamabad, and thus re-insert democracy
in Pakistan.
It is likely that Negroponte will succeed in checking off at
least two items in the agenda. President Musharraf has said on
Nov. 14 that he would take his army fatigues off and hold
elections in mid-January. The other two items of the agenda --
lifting of emergency and inserting Benazir Bhutto to make
Pakistan look democratic -- are non-negotiable, as far as the
Pakistani military is concerned. The reason that the emergency
was slapped on Pakistan on Nov. 3, was initiated by a demand (a
visible demand as such!) of the Pakistani army. They also
demanded suspension of the Constitution and sacking of the Chief
Justice Iftikhar Mohammed Chaudhry. The Corps Commanders (the
guys who order the tanks out on the streets of Islamabad and
surround the presidential palace at the time a coup is
orchestrated) also demanded that the elections be held under the
state of emergency. According to an Indian intelligence official,
these Corps Commanders were afraid that in the absence of the
Emergency, Ms. Bhutto and her followers in the Pakistan People's
Party (PPP) might use their considerable money and street power
to create political instability if her party did not do well in
the elections. [RMA]

DOCUMENTATION

From the Archive:

FDR CONFRONTED CHURCHILL AT THE START OF WORLD WAR II ON HOW
AMERICANS `CAN'T STOMACH' BRITISH IMPERIALISM

The following is from a 2007 book by two Canadian authors,
entitled "One Christmas in Washington." This covers Winston
Churchill's failed effort to take control of the war effort
following the Japanese attack on Pearl Harbor. This is part of
what Lyndon LaRouche calls "the difficult alliance," which FDR
led. Roosevelt's military leadership was almost uniformly
anti-British, led by General George Marshall. The authors, David
Bercuson and Holger Herwig, are themselves hardly anti-Churchill
but the conflict shines through.
The following comes from a dinner conversation after a
particular effort by Churchill to gain control. At the dinner are
Louis and Stella Adamic. Louis had authored a book contrasting
Uncle Sam and John Bull in unflattering terms for Mr. Bull, which
Churchill had begun to read. Louis Adamic wrote of that dinner in
notes immediately afterward. What follows is the exchange between
FDR and Winston, which was in that report. Clearly, Elliot
Roosevelt is not the only witness to this difficult alliance:
FDR opened the conversation. "Well, we had a big day
today." He had a surprise for them: "I made Donald Nelson head
of all war production with full authority and responsibility."
Eleanor immediately changed the subject. "Franklin," she
demanded in an agitated voice, "we've simply got to do
something about the alien situation." That very day, the first
internment of Japanese-Americans had begun. She wanted assurances
about the planned future of a million other "aliens," most of
them German and Italian. Silence fell over the group. Franklin
stared at Eleanor, then at Winston. "The prime" came to his
friend's rescue. In Britain, "We simply separated the goats from
the sheep, interned the goats and used the sheep." Eleanor was
not amused. She announced that in the Office of Civilian Defense,
which she headed, people were concerned with the spread of unjust
suspicion. "We don't want any witch-hunts," she lectured her
husband, "such as we had during the last war."
Roosevelt turned to Churchill. "You see Winston, we have a
great variety of people in this country. Take almost any football
team. Most of the players have Polish, Yugoslav, Scandinavian,
Slovak names--even on the Notre Dame team, which is called `the
Fighting Irish'." The president laughed. "And what is true of
football is true of our industry. It is the immigrant from Poland
or Germany or Bohemia or Italy or the Balkans, or it is the
immigrant's son, born here, who mans the machines and gets the
coal out of the mines." Churchill lit another cigar. Champagne
was served.... When Stella Adamic started to tell the president
about how her husband had come to write `Two-Way Passage,'
Roosevelt seized the moment. "You know," he informed her, "my
friend over there doesn't understand how most of our people feel
about Britain and her role in the life of other peoples."
Churchill must have feared the worst. Roosevelt did not
disappoint:
"It's in the American tradition, this distrust, this dislike
and even hatred of Britain -- the Revolution, you know, and
1812; and India and the Boer War, and all that. There are many
kinds of Americans of course, but as a people, as a country,
we're opposed to imperialism -- we can't stomach it.
"There, it was out, all of it. 1776 and 1812, India and
South Africa. Obviously annoyed with Churchill's memo on war
allocations, which had brought the staff talks to a screeching
halt that day, the president had decided on payback.
The dinner guests held their breath. Churchill sat "like a
Buddha, a big cigar in his face." Roosevelt, lighting another
cigarette, beat the topic into the ground. America's Irish
Catholics were anti-British, and for a good reason. Its German
element was solidly anti-British. As for himself, the president
allowed, he was not anti-British, "now." But there had been a
time "in 1889 or '90," when he was a lad of "seven or
there-abouts" that his mother had taken him to London and he had
seen Queen Victoria ride through the streets in her carriage.
"Why, I hated the old woman." He lectured Churchill that "while
English is my main strain, I'm also part Scotch and part Dutch."
He looked across the table at his guest. "That combination, makes
one a good bargainer." The prime minister scowled, then lit
another Corona.
Roosevelt had taken the topic to the edge of permissible
limits, if not beyond. On a day when General Marshall had
demanded of the British chiefs what amounted to primacy for
Washington in the conduct of the war, this was adding insult to
injury. There was a nasty streak to Roosevelt. He admitted that
he had been a "pretty mean cuss" in his early days. He was that
again on 13 January 1942. At 10:50 p.m. Eleanor saw the Adamics
off. Louis rushed back to his hotel to write down everything he
could remember about the evening. In 1946 he published his
version of that bizarre night as "Dinner at the White
House."[jpr]

*** END OF BRIEFING ***

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