THE WEEK THAT JUST WAS

VOL. 1. NO. 12. (to May 9, 1999).

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar
TC=Trilateralist

May 3, 1999. Andrea Mitchell of NBC (wife of Greenspan) did a piece heavily critical of Jessie
Jackson (CFR). Segment included interview with Richard Haas (CFR) saying Jackson was
being exploited. Mitchell's name rarely given at end of her reports.

May 5, 1999. On CBS's David Letterman, the announcer said David was "High Priest of the
Temple of Isis." This is the British Royalty cult on which Jacqueline Kennedy Onassis was an
expert while working with Doubleday and living with a "former" Mossad agent.

Also on NBC Wesley Clark (CFR) said NATO occupation forces must be "core" but would
include Russian troops.

Also K-Eye reported that Governor Bush criticized Clinton for fighting with one hand behind
his back in not having ground troop option. Zbig called for ground troops on Crossfire in
solitary appearance months ago.

May 4, 1999. Moneyline. William Shatner (Captain Kirk) owns $13 million in Priceline.com
stock.

"Western Leaders Opened the Door Wider for World Government at Their Recent Meeting in
Washington, D.C."

NATO formally proclaimed its role as the standing army of the United Nations with a mission
to patrol the world during its 50th anniversary summit in Washington. The 19 NATO nations
agreed that it will now have a "key role in crisis situations beyond our borders under the
appropriate legal basis," said NATO Secretary-General Javier Solana.

"Appropriate legal basis" was defined by French President Jacques Chirac: "NATO cannot
and will not be able to act without the authorization [of the UN Security Council]. The primary
responsibility [of the Security Council is] for the maintenance of international peace and
security." "The Security Council has powers to impose solutions even against the will of a
sovereign state," said French Foreign Minister Hubert Vedrine. American and European
leaders were enthusiastic about formally making NATO the UN's global army.

The definition of NATO's future is not a "geographic issue," said President Clinton
(BB/CFR/RS/TC). He pointed out that the attack on the sovereign state of Yugoslavia had set
the precedent. The first time NATO went to war, it violated its own previously-defined role as a
defensive alliance.

British Prime Minister Tony Blair visited the Chicago Economic Club to proclaim NATO's right
to intervene in sovereign countries, because stopping genocide "can never be a purely
internal matter." "Relations between nations can no longer be founded on respect for
sovereignty-they must be founded on respect for human rights," said Polish Foreign Minister
Bronislaw Geremek. "Kosovo is yet another reminder that the greatest challenges ...emanate
from beyond NATO's territory," said U.S. National Security Adviser Samuel Berger (BB/CFR) at
a White House briefing. Deputy Secretary of State Strobe Talbott (CFR/RS/TC) (CEIP Director)
hailed this "vision of the future." He had earlier predicted the end of "nationhood as we know
it" and the emergence of "a single, global authority."

They must now deal with "areas of intense Western concern: The Arab-Israeli conflict, Iraq
and Iran, Afghanistan, the Caspian Sea and Transcaucasus,"said Robert Hunter (BB/CFR)
(socialist book writer), U.S. ambassador to NATO from 1993 to 1998.

Inside their meetings, behind closed doors, NATO leaders were equally emphatic in
denouncing national sovereignty and calling for the alliance to become the UN's world army.
"NATO 2000...will also provide us with new political and military options for conflict
prevention and crisis management...the possibilities of preventive military deployments," said
Solana.

"The potentially aggressive states in both North Africa and the Middle East-Libya, Iraq and
Syria -- have obligated NATO to missions of extended duration and commitment," said Gen.
Wesley (Kanne) Clark (CFR), who is the supreme allied commander. NATO will move from a
"fixed, positional defense to a more flexible, mobile" organization "operating outside alliance
territory," said U.S. Secretary of Defense William (Sebastian) Cohen (CFR/TC). (Spotlight Email
Newsletter #22 May 5, 1999 with known "Elite" affiliations Added). week012.htm

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

VOL. 1. NO. 11. (to January 10, 1999).

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar
TC=Trilateralist

BUSH AND DOLE HEAD REPUBLICAN POLL BY WIDE MARGIN

George W. Bush (S&B 1968) already has a bigger lead for the Republican nomination than
either Reagan in 1979 or his father in 1987, according to George Will (TC) (Austin American-
Statesman Jan. 7). A CNN/Time Poll of Republicans (CNN's Capital Gang Jan. 9) showed
George W. Bush preferred by 38% with Elizabeth Dole closest behind with 28%. Dan Quayle
got 7%, followed by Steve Forbes with 5%, John McCain 4%, John Kasich 2%, Gary Bauer 2%
and Bob Smith 1%. Dole would beat Gore by 48% to 45% according to a poll of all voters. Bush
has appointed the first black (Michael Williams) and the first Hispanic (Tony Garza) to serve on
the Texas Railroad Commission (Austin American-Statesman Jan. 5, 1999). He also appointed
a Hispanic (Jose Montemayor) to state insurance commissioner. All three members of the
Texas Natural Resources Commission, including one Bush appointee, are all from industries
regulated by the agency (Austin American- Statesman Jan. 8). Bush has said he will make his
decision on a presidential bid at the end of the regular session of the Texas Legislature (c.
May 1).

SUMMARY OF ROVE INTERVIEW: RIGHT-HAND MAN OF GOVERNOR BUSH

Political consultant Karl Rove is known as Governor G.W. Bush's "right hand man." One of his
early heroes was Robert Bennet of Utah who opposed McCarthy (Austin At Issue Jan. 7). The
religious right needs more patience knowing they will get theirs over the long-term. "(W)e've
got a whole class of kids that are Godless, jobless, fatherless in many instances and
hopeless," he said. We won the Cold War but the U.S. culture is declining. Values that will
make a difference tomorrow are needed. President Clinton should admit what everybody in
the country already knows. Bush is motivated most by his goal to change the culture. He was
repulsed by the elite culture at Yale. He is a conviction politician, to use Margaret Thatcher's
phrase, who wants to make a difference. Wall Street Journal reporters looked into Bush's
background. he has been a good husband and father. If there was anything bad in his
background we would have already heard about it. In 1979 there were 14 Republicans in the
Texas House and only 3 State Senators. Today there are 72-73 Republican House members
and 16 Republican Senators (out of 31). All 27 statewide elected officers in Texas are now
Republicans. George Walker Bush was civil to both Richards and Mauro and never said an
unkind word to either of them.

IMPEACHMENT COMMENTATORS

Senator Byrd, with his left hand visibly shaking, said that Clinton was too flippant and
arrogant (NBC New Jan. 5). Laura D'Andrea Tyson (CFR), Dean of the Haas School at UC
Berkeley and former chairwoman of the Council of Economic Advisors, said (Moneyline Jan.
5) a long trial of President Clinton could have dire consequences for social security, Medicare,
the dollar and the economy. Lou Dobbs said she expressed a Business Week viewpoint. She
is concerned about the loss of effective centrist leadership of the economy and loss of
confidence. A weakened presidency hurts reforms. Clinton has worked to block tax cuts. The
American public wants Clinton to continue his term. The economy is slowing down and the
global economy is still fragile.

Four former Senators (News Hour Jan. 5) gave their views on impeachment: John C. Danforth
(TC) (R-Missouri), Bennett Johnston (BB) (D-Louisiana), Warren Rudman (CFR) (R-New
Hampshire) and Dale Bumpers (D-Arkansas). Johnston said the Senate outcome was already a
certainty absolutely known and that the Democrats were committing Hari-Kari. Get it over with
by censure. Clearly Clinton will not be impeached. Bumpers said the American people
delivered a non-negotiable political demand last November and the Senate has carte blanche.
There is a deafening partisanship. Deal quickly with known outcome. Danforth said the issue
was the standards of the country: "My own vote would be for removal. I think what the
president has done is so far below what our standards have to be as a country that he just
shouldn't stay in office." Larry Flynt of Hustler said: "We got one fish that is even bigger than
Livingston. It could be as many as half a dozen." One Republican fish is in the Senate, one is a
member of the Republican National Committee and the rest are Congressmen. In 1987 Gary
Hart was asked if adultery was "immoral." He answered "Yes." Then he was asked: "Have you
ever committed adultery?" He answered: "Ahh, I do not have to answer that question." In 1992
Clinton denied the Flowers allegations but later admitted one indiscretion. Daniel Burton
(CFR) fathered a son out of wedlock. Henry Hyde (CFR) admitted having a youthful
indiscretion.

Senator Joseph Lieberman (CFR) said (CNN Late Edition Jan. 5) that the children would hear
impeachment witnesses: "I don't think anybody gains from it." The White House was also
adamant against testimony being heard. Mark Shields (News Hour Jan 7), in commenting on
impeachment, said he saw the McCarthy hearings. Joseph Welch, a proper Boston lawyer,
took down the Wisconsin bully, Joseph McCarthy, the man who held both Truman and
Ike "hostage to his anti-Communist theatrics." Paul Gigot (BB/CFR), of the Wall Street
Journal, said the Republicans are now more cohesive compared to the divided Democrats.

Charles Cooper (CFR?), a former Rehnquist law clerk, said (NBC News Jan. 7) he would make
neutral and fair impeachment trial rulings. Lloyd Garment (CFR) said (NBC News Jan. 7) he
plays poker with the Chief Justice. Professor Jeffrey Abramson, of Brandeis University, said
the Senate was not representative of the country.

Gregory ("Greg") Craig is Clinton's main impeachment lawyer. (NBC News Jan. 8).

Three of the four commentators (CNN Late Edition Jan. 10) on impeachment were elites: Sam
Nunn (BB), Howard Baker (CFR), former Senate Majority Leader, Christopher Dodd (CFR) with
Senator Mitch McConnell (R-Kentucky).

CLINTON ADMINISTRATION ADOPTS PLANK FROM CONTRACT WITH AMERICA

Donna E. Shalala (CFR/TC), Secretary of Health and Human Services, supports the plan
announced to support long-term care (New Hour Jan. 4). Susan Dentzer, of the PBS Health
Unit funded by Kaiser, said $50 billion of $125 billion in long-term care is not covered by
health insurance. The Clinton plan would provide a $1,000 tax credit for those below certain
guidelines.

EURO WILL COMPETE WITH DOLLAR WHILE EUROLAND WILL DRAW MONEY FROM U.S.
INVESTORS AS INTEREST RATES HERE RISE

Reto Francionis, Deputy CEO, Deutsche Boerse, said the euro has created one big market and
will attract more investors (Moneyline Jan. 4). Alfred Schorni, Head of Foreign Exchange,
Commerzbank, added that small investors will follow (Moneyline Jan. 4). The Dutch finance
minister was creamed with a pie by anti-euro protesters (Moneyline Jan. 4). Myron Kandel said
(Moneyline Jan. 4) that Europe still had labor rigidity, over regulation and social expenditure
excesses. Jerome Lacy, Bond Futures Trader, said that money is leaving the U.S. to go into
Europe or Japan (Moneyline Jan. 7). Overseas investors are losing confidence in the U.S. with
the impeachment trial. hedge funds are selling bonds. Interest rates will go up instead of
down. The Bank of England cut its interest rate. Lisa Finstrom, Senior Currency Strategist for
Salomon Smith Barney, said (NBR Jan. 4) that a stronger Europe will attract capital "to the
country (Euroland)." There will be no threat if the U.S. is competitive. The euro will be stronger
than the dollar this year. Look to invest in U.S. companies that do business with Euroland.

European autos are making their latest assault on the U.S. market (Moneyline Jan. 7). Henrich
Heitmann, Chairman and CEO of BMW US Holding, said the euro is more efficient for
purchasing parts. Sid Ross, Senior VP of The Northern Trust Co., says companies won't have
the cost of hedging currencies with the euro. For the next several months the dollar will still
be strong. This will be good for the sale of European cars in the United States. Klaus
Freidrich, Chief Economist for Dresdner Bank, A.G. said the euro is going very well. The euro
"lives" in Frankfurt, Germany. The U.S. and the European Central Bank are the two central
banks that now control 50% of the world's GDP but there is no institution to control them. The
euro is of equal weight to the dollar and another option for consumers. It is an alternative
currency. The U.S. should look more closely at its own current account deficit.
MANUFACTURING IN POST-INDUSTRIAL U.S. IS DOWN BUT FED WON'T CUT INTEREST
RATES UNLESS SERVICE SECTOR DECLINES

U.S. manufacturing (NBR Jan. 4) fell to a 8-year low in December but the Federal Reserve is
not likely to cut rates quickly. More manufacturing decline is expected but the Fed won't ease
unless the service sector declines. The Fed doesn't want a huge boom in the stock market that
could lead to a bubble and then a burst. It doesn't want a sharp drop in the stock market
either. The U.S. may have to raise interest rates because of the euro. Jeffrey Davis of State
Street Global Advisors said that if the dollar weakens, the Fed may have to raise interest rates
(Moneyline Jan. 5). William Sullivan (CFR?) said that a rate cut would come in March at the
earliest. Stephen Slifer, Chief Economist of Lehman Brothers, said (NBR Jan. 8) for the
moment the Fed would just sit.

TOO MUCH ENTHUSIASM IN MARKET SAYS FED VICE-CHAIRMAN RIVLIN

Alice Mitchell Rivlin (CFR/TC) (described only as a Fed official and not named) (Moneyline Jan.
8) expressed concern about market enthusiasm: "I think there is reason for concern about the
stock market, that maybe the surge in stock prices is out of line with future earnings." The M-2
money supply went up $9.8 billion for the week ending December 28 (Moneyline Jan. 7).

CONSUMER BORROWING AND BORROWING ON STOCK KEEPS MARKET GOING

Louis Uchitelle, Economics Writer for the New York Times, said (Moneyline Jan. 7) there was
3.5% growth in the 4th quarter due to consumer spending. Borrowing on the stock market.
Vulnerable to ups and downs of the market.

NIGHTLY BUSINESS REPORT GIVES SOME BACKGROUND ON ORIGIN OF MUTUAL FUNDS

IN AMERICA

For 20 years investing (NBR Jan. 4) was simply buying a bank's certificate of deposit. The
double-digit inflation of the 1970s made consumers aware that bank interest alone would not
allow them to keep up. In 1979 Ted Bennet found a tax code loophole and created a 401-k plan.
Now $1 trillion. Big companies now tell employees that retirement is their concern; corporate
paternalism is dead. John Bogle, Sr., Chairman of The Vanguard Group, said that mutual
funds appealed to the more educated. Mutual funds now total $4.5 trillion. In 1995 the median
value of retirement accounts was $15,600. Half of all Americans have no pension plan.

MYRON KANDEL GIVES HISTORY LESSON ON STOCKHOLDER ATTRACTION

Myron Kandel (Moneyline Jan. 8) said that in the 1920s ordinary Americans came to Wall
Street and experienced the Great Depression. It took 25 years for Wall Street to entice them
back with the slogan "Own a piece of America" in the 1950s and 1960s. During that period the
number of stock share owners rose from 6 million to 31 million. The mass appeal of mutual
funds came in the 1980s and 1990s. In 1980 stock mutual funds had $45 billion in assets.
Today the total is $2.8 trillion. Electronic trading with Charles Swab doubled last year. This is
part of a revolution in America that is here to stay.

BIGGEST NASDAQ STOCKS ON INTERNET LISTED

The five biggest NASDAQ Stocks in terms of market capitalization (Moneyline Jan. 7):
Microsoft ($373 billion), Intel ($214 billion), Cisco Systems ($162 billion), MCI WorldCom ($137
billion) and Dell Computer ($99 billion).

JOBS LOST AND JOBS GAINED

There were 2.9 million jobs created in 1998 (Moneyline Jan. 8). Wages per hour went up 3.8%.
Unemployment, averaging 4.5% annually, was the lowest since 1969. Gordon Richards, of the
National Association of Manufacturers, said 270,000 jobs had been lost in manufacturing
since March 1998. Labor is being shed because of the inability to raise prices and due to weak
export opportunities. In November 251,000 new jobs were created compared to 378,000 in
December (NBR Jan. 8). 103,000 jobs were cut in December (NBC News Jan. 9).
Unemployment rates by years: 1998: 4.5%; 1997: 4.9%; 1996: 5.4%; 1995: 5.6%; 1994: 6.1%.
100,000 construction jobs were created in December (NBC News Jan. 9).

The stock market has had four years of gains averaging 25% (NBC News Jan. 9). The DJIA was
up 461.89 points for the week (NBR Jan. 8), a 5% gain. The dollar is in a slump.

BANKS FEARFUL DEPOSITORS WILL BE SCARED INTO WITHDRAWING FUNDS

Banks are encouraging non-withdrawals (CNN Jan. 4). Russian banks, working on a fractional
reserve system, got hit hard when money was withdrawn. This is an inherent weakness in a
system where the money in circulation does not equal the deposits in the bank. A primary
purpose of the Fed is to truck money where it is needed if such a panic happens.

TOP SECTORS AND FUNDS FOR FOURTH QUARTER LISTED

Top sectors in the 4th Quarter (NBR Jan. 5): Science and Technology (+41.7%), Growth Funds
(+22.6%), Small-Cap Funds (19.1%), Growth and Income Funds (+17.8%) and International
Funds (+16.4%). Top Funds: Matthews International Korea (+101.9%) (lost 60% last year),
Firsthand Tech Innov. (+97.4%), Internet Fund (+83.4%) (up 196.1% in past 12 months),
Profunds: Ultra OTC (+72.7) and WWW Internet Fund (+71.3%). Fidelity Select Electronics has
gone up 385.3% in past five years. The five mostly widely held mutual funds in 4th Quarter:
Fidelity Magellan Fund (+27.2%), Vanguard Index 500 (+21.3%), Washington Mutual Invest.
(+13.9%), Investment Co./America (+17.3%) and Fidelity Growth & Income (20.5%).

SOME STOCK PICKS ON NBR AND MONEYLINE

Boston-based Bob Stansky is the manager of Fidelity Magellan (Moneyline Jan. 6). Its value is
up 33.6% compared to the 36.7% 1998 increase in the S&P 500. His top five holdings are: 1)
General Electric, 2) Microsoft, 3) Intel, 4) Cisco Systems and 5) Merk & Co. Stock prices, he
says, tend to follow earnings. In 1998 (News Hour Jan. 6) the NASDAQ went up 39.6%
compared to 16.1% for the DJIA.

Vincent Farell, Jr., CIO, Spears Benzak Salomon and Farrell, has a $6 billion portfolio. The
market value (NBR Jan. 8) is twenty-six times earnings. He says caution is in order. Sooner or
later the valuations will decline. The Internet is simply"breathtaking." He likes Warnaco which
has a value ten times its earnings. Also domestic natural gas stocks. Burlington Resources
and Unical. Citigroup, he said, has the best of both worlds. Most of the best returns will come
in the first and second quarters of 1999. Dampening will occur in the latter half of the year.
Dick McCabe, Chief Market Analyst, Merrill Lynch, predicts a substantial correction in Internet
stocks. This will be a negative for the entire market (Moneyline Jan. 4).

BELL ATLANTIC MERGER WITH AIRTOUCH AND GTE WOULD CREATE TITAN

If the mergers with Airtouch and GTE go through, Bell Atlantic, with $63 billion in revenue, will
be a Telecom Titan -- a leader in wireless and local service. AT&T had $53 billion in revenues
last year (Moneyline Jan. 4). British Vodafone, the biggest cellular service company in
England, is bidding for Airtouch Comm. (Moneyline Jan. 5). George Reed-Dellinger, HSBC
Washington Analysis, said (Moneyline Jan. 5) that Vodaphone would like to extend its
presence in the U.S. Foreign ownership restrictions can be waived. Airtouch is strong in
Spain, Italy and Portugal. Frederick Moran, Telecommunications analyst, Farman Sloz, said
Bell Atlantic seemed to be more stable and the match would be two halves of a whole (NBR
Jan. 5).

BUSINESS UNUSUAL GIVES GOOD P.R. TO TRILATERIALIST CEO

Paul H. O'Neill (TC), Chairman and CEO of Alcoa, heads the $20 billion industrial giant (CNN's
Business Unusual Jan. 9). His new office for 400 employees on the river in Pittsburgh has
windows and an atmosphere of openness. In eleven years, O'Neill has transformed Alcoa to a
streamlined company. O'Neill, from a military family, took over at a time in the 1980s when the
price of aluminum had fallen. In August 1989 Alcoa was charged by the EPA of running the
nation's most toxic factor in Port Comfort, Texas. He was the first chairman from outside the
company in its 100-year-history. He cleaned up the mess, cut costs and bought up state-
owned aluminum producers in Spain, Hungary and Italy. From 1987 to 1997 he doubled
Alcoa's revenues.

BRAZILIAN STATE SAYS IT CAN'T AFFORD TO PAY INTEREST

Brazil's second largest state cannot pay the interest on $15 billion owed to Brazil's federal
government (Moneyline Jan. 7). Other states may also withhold money. Global investors are
looking a Brazil as the firewall to protect emerging markets as an asset class, according to
Riordan Ronet of the Johns Hopkins School of Advanced International Studies (NBR Jan. 8). It
is not too big to fail.

THREE ELITES FEATURED IN QUICK BRIEF CNN SEGMENT

Joseph S. Nye, Jr. (BB/CFR/TC) of Harvard (CNN's Millennium Jan. 8), said: "Well the great
danger is terrorists getting a hold of weapons of mass destruction . . . this is a new type of
threat." Francis Fukuyama (CFR). Senior Scientist of the RAND Corp. and author of The End of
History, stated: "The population explosion is kind of the old agenda. There is no question that
it is our greatest problem in many parts of the third world. But for any industrialized control
they are going to face exactly the opposite problem. We could be losing as much as 30% of
the population every generation." Graham Tilletly Allison, Jr. (BB/CFR/TC), Advisory Board
member, Center for National Policy and former CFR Director, of Harvard University
said: "There are suitcase-style nuclear weapons in the former Soviet union. Some criminal
elements in Russia, not the Russian government itself . . . would steal nuclear weapons, would
sell them (showing photo of Hamas leader in wheel chair) to a terrorist group. The weapons
would then be brought to an American city and would be used in a terrorist fashion. And God
forbid, I believe that it is something we unfortunately will live to see."
FRESH CARRIER AND BIG DISCUSSION OVER OMSCON

The U.S. Vinson arrived on the last day of the Iraq bombings. (CNN Jan. 4). A lot of discussion
over whether the U.S. had spies on the payroll as big news. James Rubin (CFR), State
Department spokesman, said (NBC New Jan. 5) that Saddam is lashing out from an isolated
position. The next round of bombings of Iraq may take out some of the airports that launch
threatening planes. Rubin said the U.S. did not use OMSCOM to spy on Saddam (News Hour
Jan. 6).

CONGRESS SHOULD GIVE MORE MONEY TO PROTECT DISTANT EMBASSIES

Retired Admiral William J. Crowe, Jr. (CFR/TC) led an investigation into the bombings of two
U.S. embassies in Africa (NBC News Jan. 7). The former Chairman of the Joint Chiefs of Staff
issued a scathing report blaming both administrations and Congresses for not doing enough.
Of 260 U.S. facilities abroad (NBC News Jan. 8), only 40 are well-protected. The Report of the
Accountability Review Boards on the Embassy Bombings in Nairobi and Bar Es
Salaam (January 1999) suggests spending $1.5 billion more each year to upgrade old
buildings, provide security officers and Marine guards, emergency action plans and duck and
cover drills (NBC News Jan. 8). Secretary of State Albright said responsibility had to be shared
broadly. In 1985 an investigation by Bobby Ray Inman (CFR/TC), Report of the Secretary of the
Secretary of State's Advisory Panel on Overseas Security, called for much tighter security.
Inman stated: "It's not very encouraging to have been right and not have been
successful." Rep. Porter Gross of Florida, Chairman of the House Intelligence Committee, said
the average American was more concerned by security at malls that at embassies in places
they could not even pronounce. The solution, said Crowe, comes down to a matter of money
(News Hour Jan. 8). He served as Ambassador to Great Britain. Two-thirds of our embassies
are now at risk. What is new is the size of the bombs and the growing networks of
international terrorists. The new era will worsen the threats.

CLOSE RELATIONS WITH PEOPLE OF CUBA BUT NOT REPRESSIVE CASTRO

Zbigniew Brzezinski (BB/CFR/TC), former U.S. National Security Advisor and co-founder of the
Trilateral Commission (with David Rockefeller), said (CNN Worldview Jan 5) that the U.S. is
developing a relationship with Cuban society on the basis that the days of Castro are
numbered. Castro has now been in power for four decades. He's like Lenin, Stalin and
Khruschev combined. The papal visit gave legitimacy to a relationship with Castro's Cuba.
Need for preparation so that great violence doesn't occur with Castro's exit. Madeleine
Albright (CFR/TC) said (NBC News Jan. 5) our Cuban policy is to develop ties with the people
of Cuba without providing aid to "a repressive and backward-looking regime." The embargo
has cost Cuba $60 billion over the past forty years. Albright said (News Hour Jan. 5) money
should go to families but not to the regime. This will help allow the Cubans to act bravely
under a "repressive regime." Need for a democratic transition and free elections. Cubans are
still being arrested despite the recent visit of the Pope. Strategy is arts, cultural and sports
exchanges. Castro was a former pitcher.

KING INTERVIEWS TOM BROKAW

Larry King (CFR) interviewed (CNN Jan. 5) Tom Brokaw (CFR) about his book: The Greatest
Generation. Brokaw said the founding fathers were racist. World War II built the greatest
industrial economy. A documentary partly based on his book will be shown next week. The
1950s included McCarthyism. Dean Acheson was working on the IMF before the end of World
War II. Clinton is not likely to be convicted. The political will of the nation is to get on with it.
But Clinton is scarred forever. Lots of morality left in the country but more tolerance now.
Newt Gingrich(CFR) was an ideological "philosopher king." George W. Bush (S&B 1968) is the
"logical favorite" but the unforeseen can occur. He has all the credentials, a huge base of
support and the right pedigree. The World War II generation had a low divorce rate. Clinton is
"pragmatically" doing things. There are no troops in our streets, no coup d'etats and everyone
gets a vote.

RABIN PROTGE WILL MAKE BID FOR PRIME MINISTER OF ISRAEL

A protg of assassinated P.M. Yitzhak Rabin (33rd M), who played a key role in past peace
negotiations, was once given credit for keeping Arafat talking (Austin American- Statesman
Dec. 26). Amnon Lipkin-Shahak, a former army general, stated that P.M. Benjamin Netanyahu
poses a danger to Israel (Austin American-Statesman Jan. 7). About a dozen candidates will
be on the May 17th ballot in Israel. For months he led in the polls but sources say his
vagueness and retirement from the army have hurt his standing.

ECONOMIC GROWTH IN CHINA NOT EXPECTED TO CONTINUE

After having the world's top growing economy, China is expected to slow down as its exports
decline this year (Austin American-Statesman Jan. 7). Graduates of prestigious universities
are having problems finding jobs. Bad loans are sapping the strength of state-owned banks.
Further increases in public spending on highways, telecommunications and water works are
being centrally planned.

KISSINGER WON'T TELL AP ABOUT SECRET DEAL WITH CHINA WHILE TRAVELING

Sir Henry Kissinger (BB/CFR/TC) secretly offered China satellite technology and a hotline in
1971 (CNN Late Edition Jan 9). He proposed the alliance due to the Soviet nuclear buildup. His
office told AP that Kissinger was traveling and unavailable for comment.

U.S. COMPANIES HIRE DIRT-CHEAP CHINESE WORKERS

China has become a key manufacturing center for electronic interconnects (Electronic News
Jan. 4, 1999). Both AMP Inc. and Molex, Inc. are planning to expand their presence in China in
the next several years. A typical worker in China gets paid 19 cents an hour. Chief engineers
make $1.25 an hour.

CFR AND TC OFFICERS & DIRECTORS, 1998

Paul A. Allaire, CFR Director (Term Expiring 2002).

Roone Arledge, CFR Director (Term Expiring 2002).
Mario L. Baeza, CFR Director (Term Expiring 2001).
C. Fred Bergsten, Member of Executive Committee, TC; Economics; former U.S. Assistant ,
Director, Institute for International Secretary of the Treasury for International Affairs.
John E. Bryson, CFR Director (Term Expiring 2002).
Zbigniew Brzezinski, Member of Executive Committee, TC; International Studies; Robert ,
Counselor, Center for Strategic and Osgood Professor of American Foreign Affairs, Nitze of
Advanced International School Studies, John Hopkins University; Assistant to the President
for National former U.S. Security Affairs
Lee Cullum, CFR Director (Term Expiring 2001).
Kenneth W. Dam, CFR Director (Term Expiring 2002).
Douglas Dillon, CFR Director Emeriti.
Thomas R. Donahue, CFR Director (Term Expiring 2001).
Peggy Dulany, CFR Director (Term Expiring 2003).
Jessica P. Einhorn, CFR Director (Term Expiring 2000).
Martin S. Feldstein, CFR Director (Term Expiring 2003).
Paolo Fresco, Member of Executive Committee, TC; Executive Officer, The General
Electric , Vice Chairman of the Board and Company.
Leslie H. Gelb, CFR President and ex-offico Director.
Louis V. Gerstner Jr., CFR Director (Term Expiring 2000).
Allan E. Gotlieb, North American Deputy Chairman, TC; Consultant, Stikeman Elliot; former
Canadian Ambassador to the United States
Maurice R. Greenberg, CFR Vice-Chairman and Director (Term Expiring 2000).
Judith Gustafson, CFR Secretary.
Robert D. Haas, Member of Executive Committee, TC; Chairman and Chief Executive Officer,
Levi Strauss & Co.
Caryl P. Haskins, CFR Director Emeriti.
Charles B. Heck, North American Director, TC.
Carla A. Hills, CFR Director (Term Expiring 1999).
Richard C. Holbrooke, CFR Director (Term Expiring 2001).
Robert D. Hormats, CFR Director (Term Expiring 1999).
David Kellogg, CFR Vice President, Corporate Affairs, and Publisher.
Bette Bao Lord, CFR Director (Term Expiring 2003).
Lawrence J. Korb, CFR Vice President, Studies.
Abraham F. Lowenthal, CFR Vice President and Deputy National Director.
Anne R. Luzzatto, CFR Vice President, Programs and Media Projects.
Vincent A. Mai, CFR Director (Term Expiring 2003).
Charles McC. Mathias Jr., CFR Director Emeriti.
William J. McDonough, CFR Director (Term Expiring 1999).
George J. Mitchell, CFR Director (Term Expiring 2000).
Michael H. Moskow, CFR Director (Term Expiring 2003).
Janice L. Murray, CFR Vice President and Treasurer
Joseph S. Nye, Jr., Member of Executive Committee, TC; University; former Dean, Kennedy
School of Government, Harvard U.S. Assistant Secretary of Defense for Security Affairs.
James A. Perkins, CFR Director Emeriti.
Michael P. Peters, CFR Senior Vice President, Chief Operating Officer, and National Director.
Peter G. Peterson, Chairman of the Board and CFR Director (Term Expiring 2001).
David Rockefeller, Honorary Chairman and CFR Director Emeriti; North American Chairman,
TC (1977-1991).
Warren B. Rudman, CFR Director (Term Expiring 2000).
Frank Savage, CFR Director (Term Expiring 2002).
Diane Sawyer, CFR Director (Term Expiring 2000).
Robert A. Scalapino, CFR Director Emeriti.
Theodore C. Sorensen, CFR Director (Term Expiring 1999).
George Soros, CFR Director (Term Expiring 1999).
Laura D'Andrea Tyson, CFR Director (Term Expiring 2002).
Garrick Utley, CFR Director (Term Expiring 2003).
Cyrus R. Vance, CFR Director Emeriti.
Paul A. Volcker, CFR Director (Term Expiring 1999); North American Chairman, TC (1991-
); Former Chairman, Board of Governors, U.S. Federal Reserve System; former Chairman,
Wolfensohn & Co., Inc.; Frederick H. Schultz Professor Emeritus of International Economic
Policy, Princeton University.
Glenn E. Watts, CFR Director Emeriti.
Robert B. Zoellick, CFR Director (Term Expiring 2001).

ALSO IN THE NEWS

The FDA (NBC New Jan. 5) has now approved a new meat-flavored pill to keep dogs calm. The
separation anxiety cure (for when owners are away from home) may cause stomach problems.
Tom Brokaw (CFR) said it is "whichever mess you prefer."

Princess Juliana, now 89, was hospitalized Jan. 4 for an undisclosed illness (Austin American-
Statesman Jan. 5). Her daughter, Dutch Queen Beatriz, was crowned in 1980 after Juliana
abdicated following a 31 year reign.

A crack down on drug and alcohol abuse by teen mothers is coming (New Hour Jan. 4). Fetal
alcohol syndrome is one problem. New criminal laws will hit "cocaine moms." Wisconsin and
South Carolina now require mothers to obtain mandatory treatment for the best interests of
the child.

The EPA, signed into law by Nixon in December 1973, is now up for reauthorization by
Congress (Austin American-Statesman Jan. 4).

Hays, the modem maker, owes $42 million to creditors and can't find a buyer to bail it out of
bankruptcy (NBR Jan. 5).

Homes are becoming so expensive (NBC New Jan. 5) that Americans cannot afford to keep
them. Property taxes are exceeding incomes as values increased by 15% in the last three
years. The tax takes up to 15% of the annual income of seniors.

Some 25,000 hog farmers may be going out of business. The split of one hog: $41 to the
farmer, $47 to the packer and $216 to the grocer (NBC News Jan. 7).

Russia and Belarus will be getting back together if Belarus President Alexander Lukashenko
has his way (Austin American- Statesman Dec. 26). The merger will stop just short of total.

Former Austin Mayor Frank Cooksey, who is president of the local chapter of the United
Nations Association (see links), will participate in an American Bar Association sponsored
initiative to teach the methods of the U.S. legal system to Russians in Moldova (Austin
American-Statesman Jan. 4).

QUOTES FROM THOMAS JEFFERSON (AND WHY BANKERS HATE HIM . . .)

"Hamilton's financial system . . . had two objects: First, as a puzzle, to exclude popular
understanding and inquiry; Second, as a machine for corruption of the legislature; for he
avowed the opinion, that man could be governed by one of two motives only, force or interest;
force he observed, in this country was out of the question, and the interests, therefore, of the
members must be laid hold of, to keep the legislature in unison with the executive." -- Thomas
Jefferson (Feb. 4, 1818).

"My wish was to see both Houses of Congress cleansed of all persons interested in the bank
or public stocks; and that a pure legislature being given us, I should always be ready to
acquiesce under their deliberations, even if contrary to my own opinions; for I subscribe to
the principle, that the will of the majority, honestly expressed, should give law." "I hope we
shall take warning from the example and crush in its birth the aristocracy of our monied
corporations, which dare already to challenge our government to a trial of strength and bid
defiance to the laws of our country." -- Thomas Jefferson, Letter to Logan, 1816,. THOMAS
JEFFERSON ON DEMOCRACY 138 (S. Padover Ed. 1953).

"We are undone . . . if this banking mania be not suppressed. Aut Carthago, aut Roma delenda
est (Either Carthage or Rome must be destroyed). The war, had it proceeded, would have
upset our government; and a new one, whenever tried, will do it. And so it must be while our
money, the nerve of war, is much or little, real or imaginary, as our bitterest enemies choose
to make it. Put down the banks, and if this country could not be carried through the longest
war against her most powerful enemy, without ever knowing the want of a dollar, without
dependence on the traitorous classes of her citizens, without bearing hard on the resources of
her people, or loading the public with an indefinite burthen of debt, I know nothing of my
countrymen. Not by any novel project, not by any charlatenerie, but by ordinary and well-
experienced means; by the total prohibition of all private paper at all times, by reasonable
taxes in war aided by the necessary emissions of public paper of circulating size, this
bottomed on special taxes, redeemable annually as this special tax comes in." -- Thomas
Jefferson, Letter to Gallatin, October 16, 1815. THOMAS JEFFERSON ON DEMOCRACY 78 (S.
Padover Ed. 1953).

"Her (England's) examples have fearful influence on us. In copying her we do not seem to
consider that like premises produce like consequences. The bank mania is one of the most
threatening of these imitations. It is raising on a monied aristocracy in our country which has
already set the government at defiance, and although forced at length to yield a little on this
first essay of their strength, their principles are unyielded and unyielding. These have taken
deep root in the hearts of that class from which our legislators are drawn, and the sop to
Cerberus from fable has become history. Their principles lay hold of the good, their pelf of the
bad, and thus those whom the constitution had placed as guards to its portals, are
sophisticated or suborned from their duties. That paper money has some advantages, is
admitted. But that its abuses also are inevitable, and, by breaking up the measure of value,
makes a lottery of all private property, cannot be denied. Shall we ever be able to put a
constitutional veto on it?" Thomas Jefferson, Letter to Dr. J.B. Stuart, 1817). THOMAS
JEFFERSON ON DEMOCRACY 79 (S. Padover Ed. 1953).

"If the American People ever allow the banks to control the issuance of their currency, first by
inflation and then by deflation, the banks and corporations that will grow up around them will
deprive the people of all property until their children wake up homeless on the continent their
fathers occupied. The issuing power of money should be taken from the bankers and restored
to Congress and the people to whom it belongs. I sincerely believe the banking institutions
having the issuing power of money are more dangerous to liberty than standing armies." --
Thomas Jefferson

"We are completely saddled and bridled, and the bank is so firmly mounted on us that we
must go where they ill guide." -- Thomas Jefferson
"The system of banks which we have both equally and ever reprobated, I contemplate as a
blot in all our constitutions, which, if not corrected, will end in their destruction." -- Thomas
Jefferson, Letter to John Taylor, May 28, 1816. week011.htm

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

VOL. 1. NO. 10. (to January 3, 1999).

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar
TC=Trilateralist

LANGUAGE ON SUCCESSION IN TEXAS MAY BE CHANGED SOON

If Governor George Bush (S&B 1968) becomes President, the present language in the Texas
Constitution provides that the lieutenant governor "shall exercise the powers and authority
appertaining to the office of governor." Texas Representative Tom Ramsey has stated (Austin
American-Statesman Dec. 25) that a lieutenant governor, called on to assume the chores of
the Governor, could also choose to retain the office of lieutenant governor. That, he says,
would be absurd. So he will propose a constitutional amendment that would amend the Texas
constitution to provide that a lieutenant governor who replaces the governor would only serve
as governor. If Bush is elected, and the amendment is adopted, that would still make
lieutenant governor Rick Perry the third Republican governor of Texas since Reconstruction.

CARTOONIST FEATURES BUSH CAMPAIGN AS BUSH DOMAINS GET BOUGHT

The cartoon strip Thadeus & Weez, by Charles Pugsley Fincher, featured George W. Bush
(Jan. 2) with the last panel having Bush state: "Ready your checkbooks." At least 39 Internet
sites have now (Austin American-Statesman Jan. 2) claimed the name of George W. Bush.
Former bond trader Alex Goldstein, of Los Angeles, has bought net domains for nine different
versions of Bush's name.

GORE PUTS HAT IN RING AND CHOOSES SMITH AS MANAGER

Vice-President Al Gore, Jr. (CFR/M) on Friday mailed the paperwork to the Federal Elections
Commission announcing a campaign for the presidency (Austin American-Statesman Jan. 1).
Bill Bradley (RS) has already formed an exploratory committee. Craig Smith has now been
hired as Gore's campaign manager.

IMPEACHMENT TALK CONTINUES

Joseph I. Lieberman (CFR) (ABC News Jan. 3) doesn't want Senate testimony on sordid details
on impeachment. Christopher Dodd (CFR) said members of the House should mind their own
business on impeachment (ABC News Jan. 3). The law firm of Verner, Liipfert, Bernhard,
McPherson and Hand, viewed as the most powerful law firm in Washington, is assisting
President Clinton (Austin American-Statesman Dec. 28) by providing the services of Bob Dole
(33rd M) and Democrat George Mitchell (CFR). Partner Berl Bernhard, who worked for both
JFK and LBJ, described the 185-attorney firm as "like a flower blooming in the desert. Unless
you were there and saw it, you never knew about it." Lawyers at the firm include Lloyd
Bensten (BB/CFR), former U.S. Senator and Secretary of Treasury as well as former Texas
Governor Ann Richards (a non-lawyer). In 1997 the law firm was paid $2 million each by five
major tobacco companies. Its clients include The Walt Disney Company, Brown and
Williamson Tobacco Corp, RJR Nabisco, Conrail, McDonald Douglas Corp., Motorola and
Merrill Lynch.

COMMENTARY ON THE IMPACT OF THE EURO AND ECB

The euro will not exist in tangible form for three years. It will be competitive with the dollar.
There is now one single European Stock Market (ABC News Jan. 3). The Euro will initially be
used for transactions between banks (CBS Jan. 1). Jacques Santer, President of the E-U
Commission, called (PBS News Hour Jan. 1) this year the beginning of a new era. One euro
will be worth 6.56 French Francs and 1.96 German Marks. The new European Central Bank will
now make monetary policy and interest rate decisions for Euroland. Philippe Schmitter, with
the European University Institute in Florence, says there is a major controversy over whether
economic unification will result in political union. He believes the two are linked. Stephen
Overturf, a Whittier College Professor, said the theme was economics with a political agenda.
He added that U.S. interest rates might have to increase if Americans invest in Eurodebt.
Jurek Martin, a journalist with the Financial Times of London, said the new European Central
Bank was equivalent with the U.S. Federal Reserve System. The Bank of France, he said, was
now on par with the Kansas Federal Reserve Bank. Europe will now have a centralized
monetary policy. Students of the history of money place great significance on the creation of
central banks. The typical articles in the papers and TV news reports do not.

IPOS EXPECTED IN 1999

The companies expected to go public in 1999 include: Gabelli Asset Management, Korn Ferry,
Perot Systems, Keefe Bruyette, Prodigy Communications and Barnes and Noble.com (NBR
Dec. 30).

BIG CORPORATIONS IN S&P 500 SHOWED BIGGEST GAINS

An analysis of the S&P 500 for 1998 (NBR Jan. 1) revealed that the largest 100 showed the
biggest stock gains (44.1%) compared to 23.2% for the second 100, 9.9% for the third 100,
1,4% for the fourth 1000 and a loss of 19.7% for the smallest 100.

MARKET EXPERTS GIVE SLOW FORECAST

Gail Dudack, Investment Strategist with Warburg Dillon Reed, is bearish. Earnings are down
(NBR Jan. 1). Only $2-$3 billion a month is going into Mutual Funds compared to $18 billion a
month before. Only 8 key stocks in the S&P 500 are carrying the main load. She likes IBM and
Fannie Mae stock. Ralph Acampora, Chief Technical Analyst with Prudential Securities says
that other stocks will go up soon. He likes Bell Atlantic, Home Depot and Wallmart stocks.
David Jones, Chief Economist with Aubrey G. Lanston, predicts a neutral year. A noted Fed-
watcher, Jones does not expect Fed cuts until the second 1999 meeting. He is worried about a
bubble. Alan Greenspan (CFR/TC) and Robert Rubin (BB) are the "two leading architects of
this spectacular economic performance." He sees the market going slightly down. Duback
said if Clinton left office it would cost the market 100 points. If Greenspan left, the market
would drop 1,000 points.
Jack Brennan, Chairman and CEO of the Vanguard Group, was featured (Moneyline Dec. 29).
Vanguard 5000 (as of Nov. 3) had $70 billion compared to $76 billion for Fidelity Magellan.
Vanguard 500 had a year-to-date return of 28.2% compared to 26.4% for the S&P 500 (through
Dec. 24). 1998 was the fifth year where the S&P 500 outperformed the money managers.

TOP FIVE U.S. MERGERS IN 1998

The top five mergers in the U.S. in 1998 were (Austin American-Statesman Jan. 1): 1) SBC
Communications buying Americtech Corp ($78.2 billion in stock, May 11); 2) Exxon Corp.
purchasing of Mobil Corp. ($76.9 billion, Dec. 1); 3) Bell Atlantic Corp. merging with GTE Corp.
($63.5 billion, July 28), 4) British Petroleum PLC acquiring Amoco Corp. ($57.6 billion in stock,
completed Dec. 31) and 5) NationsBank Corp. and BankAmerica Corp. combining ($41.5
billion, completed Sept. 30).

BANANA WAR LOOMING?

A trade war is considered to be a major indicator of a depression. The U.S. is now protesting
European exports. Carl Lindner, Chairman of Chiquita, has made significant political
contributions to both parties (ABC News Dec. 27). The company issued a statement of
denial: "Political contributions did not in any way influence the initiation of the United States .
. . against the European Banana policy." Dole and Chiquita, the two U.S. food giants, are the
envy of world producers. European governments are slapping quotas. Charlene Barshefsky,
U.S. Trade Representative, stated: "This is pure protectionism." The W.T.O. has ruled that the
European tariffs are illegal. President Clinton (BB/CFR/RS/TC) demanded an end to the tariffs
but the Europeans have refused. So U.S. retaliation will begin. Leon Brittan, of the European
Trade Commission, said: "Such measures would threaten companies and jobs right across
Europe's economy."

HOSPITALS KEEPING TWO SETS OF BOOKS TO BILL AND BILK GOVERNMENT

Mike Wallace did a 60 Minutes piece ("Cooking the Books") (Dec. 27) on
Columbia/HCA. Perhaps $1 billion in Medicare over-charges have occurred.
Hospitals have been keeping "Aggressive" and "Reserve" books. When caught, the
money is paid back without interest. The False Claims Act allows individuals to file
suits for fraud against the U.S. government.

NEWS HOUR DISCUSSION OF IRAQ

Panelist interviewed by PBS (News Hour Dec. 28) included Rolf Ekens, former
UNSCOM Executive Chairman (1991-1997) and now Sweden's Ambassador to the
United States, and Zalmay Khalilzad (CFR), former Pentagon official in the Bush
Administration and Director of the Strategy and Doctrine Program, RAND. Khalilzad
said the result of the recent bombings was to weaken the U.S.'s support in the
United Nations (because of opposition from Russia, China and France) as well as in
the Arab world. So long as Saddam Hussein is in power, there will be weapons of
mass destruction in Iraq. The only solution is a new government if we want to end
WMDs and long-range missiles. There is a need for a new regime.

RUSSIAN DEFAULT ON OLD DEBT SEEN AS NOT EARTH-SHAKING

The Russian government, according to Myron Kandel (Moneyline Dec. 30), failed to
repay $362 million in interest on debt dating back to the Soviet era. Kandel said it
would perhaps lead to a restructuring of the some $30 billion in loans to the Foreign
Trade Bank of the old Soviet Union. The Russians claim that 70% of the investors
have agreed to restructuring. This latest default is not expected to shake the foreign
markets.

OIL COMPANIES SEEKING GUARANTEES ON PENDING DRILLING

Western oil companies have invested millions of dollars (Austin American-Statesman Jan. 1)
to drill for oil off Sakhalin's northern coast. The most advanced project, Sakhalin-2, has
already anchored an offshore rig. Shell, Exxon and Arco are among the oil companies waiting
on the Russian legislature to provide legal guarantees on how the oil will be divided. Dinty
Miller, of Arco, said: "You can't have people investing billions of dollars without a stable
business climate."

OVERLOOKED NEWS IN 1998

PBS did a segment (Dec. 31) on stories that were not adequately covered in 1998. Robert
Kittle, of the San Diego Union Tribune, said human cloning raised profound moral and ethical
questions. A moratorium was needed. Lee Cullum (CFR), of theDallas Morning News, said that
economic news was neglected. The failure of the House to give us fast-track authority to
prevent destruction of fragile negotiated agreements was one neglected story. Also neglected
was the need to control the flow of short-term capital to developing nations. A tax on
investors who pull their money out in less than a year deserved attention. This would prevent
money from flooding in and then leaving the developing country both high and dry.
Greenspan opposes such capital controls. Only PBS, she said, had reported on this issue. The
defense policy of the U.S., aside from the Iraq situation, has been neglected. Peace-keeping,
she said, should be discussed more. Patrick McGuigan, with the Daily Oklahoman, said that
broad changes in the social security system needed exploration. Cynthia Tucker, of
the Atlantic Constitution, believed Russia was under-reported. Russia, with economic and
political chaos, still has nuclear weapons. There is a danger of theft or selling of nuclear
weapons to raise American dollars. Susan Albright, of the Minneapolis Star Tribune, chose the
expansion of NATO as a neglected story. Issues included economic inter-locks and labor
shortages.

GO-AHEAD ON ISRAEL APARTMENT PROJECT EXPECTED THIS WEEK

Israeli Prime Minister Benjamin Netanyahu (Austin American-Statesman Jan. 2) will decide
this week whether to let a controversial building program go ahead. Florida businessman
Irving Moskovitz, who contributed to Netanyahu's 1996 campaign, is preparing to build a 132-
unit apartment complex for Jews on four acres he owns in traditionally Arab East Jerusalem.
There is a possibility of a summit in March or April between Clinton and Arafat. Dennis Ross
(CFR), the chief U.S. Mideast peace envoy, will arrive in the region on January 9.

REFORM RABBIS WIN DISTRICT COURT CONVERSION VICTORY

District judge Vardi Zeiller, in Israel, held that 23 petitioners converted to Judaism (Austin
American-Statesman Dec. 31) by Reform rabbis are entitled to be registered as Jews by the
Interior Ministry. Rabbi Uri Regev, who heads the Reform movement in Israel, said the ruling
"restores the lost honor of scores of converts and their families." The ruling is expected to be
appealed and an effort to pass legislation that will guarantee that only orthodox rabbis can
make conversion is likely to occur.

ISRAEL NOW WASHINGTON, D.C. EAST?

Tom Teepen says that Israel's Labor Party has hired James Carville as a political consultant
(Austin American-Statesman Dec. 30). In 1996 the Clinton administration all but campaigned
for Labor which, like the British Labor Party, the Clinton Democratic party and Germany's
Social Democrats, are moving toward the center or "Third Way." Carville has also involved
former Clinton pollster Stanley Greenberg and media consultant Robert Shrum. Steve
Rabinowitz, a Washington political consultant is advising Labor chief Ehud Barak.

"SANTA ANNA" MEXICO TAX ON TELEPHONES PROPOSED BY ZEDILLO

Faced with record low oil prices, Mexico's President Ernesto Zedillo has proposed a new 15%
tax on telephone usage, on top of the current 15% sales tax adopted in 1995 (Austin American-
Statesman Dec. 30). His proposal has incensed foreign-owned telephone companies which
have invested millions since the telephone sector was privatized in the 1990s. Senator Luis
Felipe Bravo Mena has compared Zedillo's proposals to those of the 19th century dictator
Santa Anna, who reportedly taxed mustaches and beards, as well as doors and
windows: "Unfortunately, the proposed telephone tax is not far from those unfortunate
revenue measures."

The Texas Revolution followed the attempted collection of custom taxes by appointed
Mexican collection mercenaries. Santa Anna launched a full scale invasion to quell the Texas
tax revolt that became a successful revolution. In 1830 Santa Anna was originally elected
president in 1833 as a Federalist and a supporter of republican reform. In 1834 he realigned
himself with the conservative centralist faction -- with the wealthy, the church and the army.
This oligarchy sought to reduce the states to departments totally subservient to Mexico City.
Santa Anna came to power and strewed the plains of Zacatecas with murdered citizens only
because they contended for their constitution. He disarmed the militia, strengthened centralist
forces, and placed the people "entirely at the mercy of the executive and his minions, who
completed the destruction of the Constitution of 1824 by blotting it from the statute book of
Mexico."

Stephen F. Austin, the "Father of Texas," described the unconstitutional scheme of

centralism's rise in a speech delivered at Louisville, Kentucky: "In 1834, the president of the
republic, Gen. Santa Anna, who heretofore was the leader and champion of the republican
party and system, became the head and leader of his former antagonists, the aristocratic and
church party. With this accession of strength, this party triumphed. The unconstitutional
general Congress of 1834, which was decidedly republican and federal, was dissolved in May,
of that year, by a military order of the president, before the constitutional senate, which,
agreeable to the constitution, ought to have been installed the day after closing the session of
Congress, was also dissolved; and a new revolutionary and unconstitutional Congress, was
also dissolved; and a new revolutionary and unconstitutional Congress was convened by
another military order of the president. This Congress met on the 1st January, 1835: it was
decidedly aristocratic, ecclesiastical, and central in its politics. A number of petitions were
presented to it from several towns and villages, praying that it would change the federal form
of government, and establish a central form. These petitions were all of a revolutionary
character, and were called 'pronouncitmeintos' or pronouncements for centralism. They were
formed by partial and revolutionary meetings, gotten up by the military and the priests.
Petitions in favor of the federal system were also sent in by the people, and by some of the
state legislatures, who still retained firmness to express their opinions. The latter were
disregarded, and their authors persecuted and imprisoned. The former were considered
sufficient to invest Congress with plenary powers. It, accordingly, by a decree, deposed the
constitutional vice president, Gomez Farias, who was a leading federalist, without any
impeachment, or trial, or even the form of a trial, and elected another of their own party, Gen.
Barragan, in his place. By another decree, it united the senate with the house of
representatives, in one chamber; and thus constituted, it declared itself invested with full
powers, as a national convention. In accordance with these usurped powers, it proceeded to
amend the federal constitution and system, and to establish a central or consolidated
government."

CHINA CONTINUES ONE-PARTY POLITICAL MONOPOLY POLICY

China's anti-any-other-political-party policy was featured (PBS News Hour Dec. 31) with
Michael Oksenberg (CFR/TC) of Stanford University, a former NSC member specializing in
China in the Carter administration and President of the East-West Center, mainly defending
China's policy against opposition. Numerous arrests in China have come six months after
President Clinton's visit to China. President Jiang Zemin stated that China respects human
rights and fundamental freedoms. In October China signed, but has not yet ratified, the
International Covenant on Civil and Political Rights. However, more than thirty have been
arrested for trying to form a second party. In two speeches in December, Zemin said his
tolerance has limits. He said on December 19 that "the Western mode of political systems
must never be copied. " On December 23, he warned against "infiltration by both domestic
and foreign hostile forces." He said "any factors that could jeopardize our stability must be
annihilated in the earliest stages." Xigo Qiang, of the New York-based Human Rights in China
organization, said there was a systematic suppression of Chinese dissidents. Minxin Pei of
Princeton University said it was a step backwards but the regime was encouraging openness.
Harry Wu, of the Laogai Research Foundation, said the crackdown was not surprising. The
leaders of China want to maintain power and refuse to change the communist system.
Oksenberg said the crackdown was both significant and unfortunate. He said there were
periods of relaxation followed by periods of tightening up. But progress is being made and
will continue to be made. A prison diary of one of the jailed dissidents was printed and
available for purchase at bookstores. He said it was a mixed, complicated picture with the
crackdown a significant step backwards. Xigo Qiang said that China is frightened by open
discontent. Demands for more freedom are viewed as threatening. Pei said there was an
unwritten line and that organized dissent is not permitted at the moment. Oksenberg said the
leaders of China have used high-growth policies to obtain popular support with remarkable
success. Growth has been increasing at 7-8% a year but is now slowing down. Unemployment
is up. Bank reforms have been delayed. There is rising dissatisfaction with corruption and
smuggling. China is killing the chicken to warn the monkey. A wiser course would
be"liberalization" but China has decided to go for a maximum growth rate and sees
liberalization as disorder. Oksenberg said he believes it is a bad policy but that is what they
have decided. Harry Wu said that the economy is going another direction with private
property. The U.S. policy is not moral, is based upon appeasement, business and money. A
high-level delegation is going to China soon. Oksenberg said that strong statements need to
be made against the crackdown. China will consider this to be interference in its own internal
affairs. Madeleine Albright (CFR/TC), he said, has described our relationship with China as
multi-faceted. We have many interests at stake. No one facet should be held hostage to
another. The U.S. policy is enlightenment rather than appeasement. As China develops, the
forces for political change will grow. Xigo Qiang said the solution is to go to the Human Rights
Commission. China is where many are ruled by a few. The struggle will continue and history is
on our side. Oksenberg was heard preparing to respond but the panel discussion ended with
Qiang having the last word.

NEW PARTY BEING ATTEMPTED FOR LABOR IN CHINA

A new group in China, backed in the U.S. by activist Ye Ning, is now attempting (Austin
American Statesman Jan. 2) to form an independent China Labor Party. 1999 will be the 10th
anniversary of the Tiananmen Square crackdown on students and the 50th anniversary of the
founding of the Communist-only government.

TWENTY-YEAR RECORD OF CHINA MILITARY TECHNOLOGY STILL SECRET

A top-secret 700-page House committee report (Austin American-Statesman Jan. 1) found that
U.S. security had been harmed by Chinese acquisitions of American military technology over
the past twenty years. An unclassified version is coming.

RELIABLE SOURCES REVIEWED YEAR'S BAD PRESS/MEDIA

On CNN's Reliable Sources (Jan. 2), Jodi T. Allen (CFR) of Slate Magazine, Clarence Page of
the Chicago Tribune and Rich Lowry of The National Review joined Howard
Kurtz, Washington Post media Reporter, and CNN's Bernard Kalb (CFR). Kalb said the media
was throwing a lot of calories out about the Clinton impeachment process but very few
vitamins. He also said reporters were skimping on homework. Allen said that both the far right
and the far left want an impeachment trial. A review of the year's bad reporting included a
writer for the New Republic, Stephen Glass, who had fabrications in 27 of 41 articles; Patricia
Smith of the Boston Globe, who resigned after admitting she had invented characters for four
of her columns and Mike Barnicle of the Boston Globe, who was suspended for lifting jokes,
re-instated and then fired for a 1995 article. A lawyer, Floyd Abrams, investigated the
"Operation Tailwind" story on CNN and found the evidence did not support allegations that
nerve gas was used during the Vietnam War to kill American defectors. CNN retracted the
story as did Time Magazine which ran the original article making the allegations. Lowry
claimed that co-producer April Oliver was a conspiratorialist. The "Back Page" of the show
featured Kurtz and Kalb.

KING DOES SHOW ON OLD AGE WITH CARTER, DOWNS AND GRAHAM

Larry King (CFR) (Jan. 2) (repeat show) hosted Jimmy Carter (CFR/TC), Hugh Downs and the
Rev. Billy Graham (33rd M?). Carter promoted his new book: Virtues of Aging. King mentioned
his book on prayer. Carter said the Wye Accord promised to be very fruitful, the peace
process was back on track and what was agreed to at Oslo will be done. He had good hopes
that the two leaders would carry out what they had each agreed to do. Billy Graham, turning
eighty, said God is the proper authority to forgive Clinton who has admitted to sinning. He,
like the Pope and Janet Reno, has Parkinson's disease. Downs said he had the same sort of
religion as Thomas Carlyle. Carter said that twice as many Americans believe in UFOs as
believe they'll ever see a social security check. Cater said he had never told a lie to the
American public.

ELITES ON CNN'S COLD WAR THIS WEEK

Elites interviewed for CNN's "Cold War: Defining Moments" (Jan. 3) included: Robert Strange
McNamara (BB/CFR/TC); Lucius Durham Battle (CFR), Assistant to the U.S. Secretary of State
and Former Chairman, UNESCO Conference; Henry A. Kissinger (BB/CFR/TC); Joseph John
Sisco (CFR/TC), U.S. State Department and Principal, Sisco Associates (Washington, D.C.);
Donald Thomas Regan (CFR), White House Chief of Staff and George H.W.
Bush (CFR/M/S&B1948/TC). Sponsors included ADM with spokesman David Brinkley (CFR)
and Unisys. Dwayne Orville Andreas (BB/CFR/TC), Chairman and CEO of Archer Daniels
Midland Co., has been one of the most consistent contributors to the Council on Foreign
Relations. Brinkley, despite open criticism by Andy Rooney of 60 Minutes, has continued to
narrate ADM spots. As shown by the list below, David Rockefeller (BB/CFR/TC has been the
most frequent CFR contributor. A look at the Bilderberger chart compiled by Robert Gaylon
Ross, Sr. in WHO'S WHO OF THE ELITE (Dec. 1995) also reveals that Rockefeller has been the
most consistent attendee of the Bilderberger meetings.

EXCLUSIVE

THE WEEK THAT JUST WAS LIST OF CONTRIBUTORS TO THE COUNCIL ON FOREIGN
RELATIONS

(Compiled from Annual Reports (1980-1993, 1995-1996).

**Odeh Felix Aburdene (1987-1996) (10)

The Ahmanson Foundation (1990-1993) (4)
Joe L. Allbritton (1989-1990) (2)
Arthur G. Altschul (1982, in memory of his father Frank Altschul)
**Arthur G. Altschul (1983-1985, 1987-1993) (10)
**Dwayne O. Andreas (1989-1996) (8)
*Anonymous (1981-1984) (1991-1992) (6)
*Roone Arledge (1992-1996) (5)
Albert C. Bashawaty (1996) (1)
Roger E. Birk (1986) (1)
*John P. Birkelund (1989-1993) (5)
*William A.M. Burden (1980-1984) (5)
James E. Burke (1992-1993, 1995) (3)
Lammont du Pont Copeland (1980-1983) (4)
Marvin Davis (1983) (1)
Lois Pattison de Menil (1980) (1)
**Douglas Dillon (1980-1986, 1988-1989, 1995-1996) (11)
*The Dillon Fund (1987, 1990-1993) (5)
*Headley Donovan (1980-1981, 1987-1990) (6)
Jeffrey E. Epstein (1995-1996) (2)
Leonard K. Firestone (1983) (1)
Annie Fisher (1993, 1995) (1993 was in memory of Pieter Fisher) (2)
Pieter Fisher (1989-1992) (4)
**George S. Franklin (1980-1993) (14)
*Stephen Friedman (1989-1993, 1995-1996) (7)
*Richard L. Gelb (1989-1990, 1991-1993, 1996) (6)
Lionel M. Gelber (1987) (1)
Patrick A. Gerschel (1995-1996) (2)
Louis V. Gerstner, Jr. (1996) (1)
Albert H. Gordon (1992) (1)
*Katharine Graham (1990-1993, 1995-1996) (6)
*Maurice R. Greenberg (1989-1990, 1992-1993, 1995-1996) (6)
Sanford D. Greenberg (1984) (1)
The William and Mary Greve Foundation (1988) (1)
John H. Gutfreund (1980) (1)
The Marc Haas Foundation (1996) (1)
Peter E. Haas (1990) (1)
James W. Harpel (1996) (1)
Caryl P. Haskins (1980, 1987, 1990-1991) (4)
H.J. Heinz II (1983-1986) (4)
William A. Hewitt (1990-1993) (4)
J. Tomilson Hill (1993) (1)
*John B. Hurford (1990-1993, 1995-1996) (6)
Yves-Andre Istel (1990-1993) (4)
*Eli S. Jacobs (1980-1982, 1988-1989) (5)
Robert Wood Johnson Jr. Charitable Trust (1995-1996) (2)
*Harry Kahn (1989-1993) (5)
Gilbert E. Kaplan (1996) (1)
Helene L. Kaplan (1996) (1)
Henry Kaufman (1991-1993) (3)
Henry R. Kravis (1995- 1996) (2)
**Leonard A. Lauder (1988-1993, 1995-1996) (1(8)
Gerald M. Levin (1995-1996) (2)
Harold F. Linder (1981) (1)
Kenneth Lipper (1988-1989) (2)
Edmund Littlefield (1983) (1)
Oswald Lord (1980) (1)
**C. Peter McColough (1980, 1982-1983, 1985-1988) (7)
Mr. and Mrs. C. Peter McColough (1984) (1)
Vincent A. Mai (1993, 1996) (2)
Kenneth Maxwell (1990-1993) (4)
Leo Model (1980-1981) (2)
Estate of Leo Model (1983-1985) (2)
David A. Morse (1986-1987) (2)
Open Society Institute (1996) (1)
Harry Oppenheimer (1983) (1)
Overbrook Foundation (Arthur and Frank Altschul) (1980-1981) (2)
**Peter G. Peterson (1983, 1985-1993, 1995-1996) (12)
John J. Phelan, Jr. (1991) (1)
Harvey Picker (1983-1984) (2)
Jean Picker (1984) (1)
Lester Pollack (1995-1996) (2)
Edmund T. Pratt (1980) (1)
Lewis T. Preston (1987) (1)
Philip D. Reed Foundation, Inc./In Memory of Philip D. Reed (1989) (1)
Stephen Robert (1995-1996) (2)
**David Rockefeller (1980-1993, 1995-1996) (16)
**Arthur Ross (1986-1993, 1995-1996) (10)
*John T. Ryan, Jr. (1988-1993) (6)
Herbert Salzman (1982-1983) (2)
James B. Sitrick (1995-1996) (2)
George Soros (1990-1993) (4)
Paul Soros (1993) (1)
*The Starr Foundation (1989-1993, 1995-1996) (7)
David A. Stockman (1995) (1)
Lee B. Thomas, Jr. (1984) (1)
Laurence A. Tisch (1996) (1)
Cyrus R. Vance (1988) (1)
Paul A. Volcker (1991) (1)
Robert C. Waggoner (1995-1996) (2)
*Malcolm H. Wiener (1988-1993, 1995-1996) (8)
Ezra K. Zilkha (1993) (1)

A LOOK BACK: PRESIDENTIAL ELECTIONS AND THE CHOICE OF CFR ELITES -- 1980

For a number of years elites have been the sole choice at the presidential polls. Democratic
presidential candidates have included John F. Kennedy (CFR), Hubert Humphrey (CFR),
Jimmy Carter (CFR/TC) while Republican candidates have included Dwight Eisenhower (CFR),
Thomas E. Dewey (CFR) and Richard Nixon (CFR). The choice in 1992 was between George W.
Bush (CFR/M/S&B1948/TC) or William Jefferson Clinton (BB/CFR/RS/TC). In 1996 the choices
offered were Robert Dole (33rd M) or Clinton again.

The last President who never joined the CFR or TC was Ronald Reagan, a World Federalist,
who became a 33rd degree Mason while in office. Bush got off to a strong start against
Reagan. By December 31, 1979, at least 15 members of the Trilateral Commission had donated
substantial sums to the GEORGE BUSH FOR PRESIDENT campaign (as reported to the
Federal Election Commission): David Rockefeller (BB/CFR/TC) ($1,000), John Cowles Jr.
(CFR/TC) ($1,000), Barber Conable, Jr. (TC) ($1,000) (NY Congressman and President, World
Bank 1986-1991), William Alexander Hewitt (BB/CFR/TC) ($1,000) (Chairman of Deere &
Company and U.S. Ambassador to Jamaica, 1982-1985), Robert Stephen Ingersoll (CFR/TC)
($500) (Chairman of Caterpillar Tractor, Deputy Secretary of State and Chairman, Panasonic
Foundation), Carla Anderson Hills (CFR/TC) ($1,000) (HUD Secretary and United States Trade
Representative), Paul Winston McCracken (BB/CFR/TC) ($500) (Member, President's Advisory
Board on Economic Policy, 1981-), David Packard (TC) ($1,000) (Overseerer of Hoover
Institution, Chairman, Hewlett-Packard Co. and Bohemian Grove Participant, Mandalay
Lodge), William Thaddeas Coleman, Jr. (CFR/TC) (Director, Chase Manhattan, Secretary of
Transportation and Member, Bretton Woods Committee) ($200), Robert Taft, Jr. (TC) (Former
U.S. Senator) ($1,000), Edson W. Spencer (CFR/TC) (CEO, Honeywell, Trustee, CEIP and
Chairman, Ford Foundation, 1991-) ($250), Arthur W. Taylor (TC) (CBS) ($500), Russell Errol
Train (CFR/TC) (Administrator, EPA, Chairman, World Wildlife Fund and Advisory Trustee,
Rockefeller Brothers Fund) ($1,000), Martha R. Wallace (TC) (Ex. Director, Henry Luce
Foundation) ($500), and George Hunt Weyerhauser (CFR/TC) (Chairman and CEO,
Weyerhauser Company and RAND Trustee) ($1,000). [This list was compiled from election
campaign contribution reports by Antony C. Sutton].

TRILATERALISM USED BY REAGAN TO BEAT BUSH IN 1980 PRIMARIES

In the 1980 Florida and Texas primaries in 1980, the Trilateral connection of Bush was used by
Reagan to soundly defeat Bush. David Rockefeller did everything he could to make George
Bush President in 1980. Bush, when asked about his Trilateralist associations, stated: "I
personally severed my association with the Trilateral Commission as well as with many other
groups I had been involved with because I didn't have time to attend endless conferences. I
hold our nation's highest decoration for National Security. Clearly, I would never have
belonged to any organization that had devious designs or favored one-world
government." Bush's Skull and Bones membership never became an issue. When Bill Casey
was picked by Reagan in February, the CFR issue was moot. But in April 1980, Reagan told
the Christian Science Monitor that he would shun the directions of David Rockefeller's
Trilateral Commission.

TRILATERIALISM WAS AN ISSUE IN 1980 REPUBLICAN CONVENTION

During the 1980 convention, Reagan lieutenants opposed a platform plank that would have
denounced the TC and CFR. After Reagan won the nomination, conservatives watched to see
if a an elite was chosen for his running mate. The day before Reagan selected his VP, a group
of conservative activists visited him to ask him not to appoint from an elitist group.
Republicans were furious when Reagan announced that Bush was his choice . The
word "betrayal" was in common usage. Sir Henry Kissinger (BB/CFR/TC) and Gerald Ford
(BB/33rd M), were present at the convention as agents of David Rockefeller. They assured
Reagan the presidency if he accepted Bush on the ticket. Reagan first sought to get Gerald
Ford to be his VP. At the urging of Henry Kissinger, Reagan then picked George Bush. Reagan
was photographed dining with David Rockefeller before the November election. Afterwards,
like Carter, when elected, Reagan offered a cabinet post to David Rockefeller -- which was
declined.

While he railed against taxes, President Reagan put the United States much further in debt.
The more debt, the more bankers can firmly control the country. And despite all the talk
against elites, he, in the usual manner, went on to appoint numerous Trilateralists and CFR
members to his cabinet.

DECEMBER ISSUE OF FOREIGN AFFAIRS FEATURED HOST OF ELITES

In the December 1998 issue of Foreign Affairs (see links), the CFR's flagship publication,
Secretary of State Madeleine K. Albright (CFR/TC) reminded Americans of the burdens they
must continue to bear such as stopping weapons of mass destruction, shoring up the
international financial system, engaging Beijing and standing up to Baghdad and Belgrade.
The problem, she says, is that Congress has foreign policy living hand-to-mouth. David D.
Hale wrote an article on the IMF showing why the world needs a financial peacekeeper more
than ever. Bernard Lewis (CFR), former Professor of Princeton University described the
declaration of jihad by Usama bin Ladin in an Arabic newspaper. Ruth N. Glushien
Wedgewood (CFR) wrote an article on the International Criminal Court. Yoichi
Funabashi (TCJ), Washington Bureau Chief for the Asabi Shimbum, called on Japan
to take the initiative in initiating trilateral dialogues with Beijing and Washington.
Ashton B. Carter (CFR), Assistant Secretary, Defense Department, Nuclear Section,
John Deutch (BB/CFR/TC) and Philip D. Zelikow (CFR) combined to discuss mass
destruction and terrorism. Eliot A. Cohen (CFR) wrote on Israel and the peace
process. Lucian Wilmot Pye (CFR), M.I.T. Professor, reviewed Christopher Patten's
new book. James Fulton Hoge, Jr. (CFR/TC) is the editor of Foreign Affairs.

SAF SUIT TO BE FILED AGAINST CHICAGO AND NEW ORLEANS

A suit for a conspiracy to violate civil rights, abuse of process and an undue burden on
interstate commerce is planned by The Second Amendment Foundation (Peaceable Texans
Dec. 31) against the cities of Chicago and New Orleans. Joseph P. Tartaro, president of SAF,
stated: "The nature and status of guns and tobacco are not analogous. Firearms have a
significant beneficial use in our society beyond recreation, since independent research shows
they are used over two million times a year to prevent or terminate predatory criminal
assaults." SAF was founded in 1974 and has 600,000 members. It has previously filed
successful suits against the cities of Los Angeles, New Haven, CT and San Francisco.

ALSO IN THE NEWS

Elizabeth Dole (ABC News Jan. 3) is stepping down as the head of the American Red Cross
and expected to announce a run for the Republican presidential nomination.

Sam Donaldson on Nightline (ABC Dec. 30) hosted Jerry Nachman, former News Executive,
Clarence Page, Chicago Tribune Columnist and May Matalin, Republican Strategist.

Politically Correct (ABC Dec. 30) (Oct. 2 re-run) featured Robert Reich (RS), University
Professor and Former Secretary of Labor, Marilyn Manson, Rock Star, Cyndi Mosteller,
Consultant and Pamela Anderson Lee, Actress. Manson said he liked Coca-Cola and cocaine,
promoted his CD-ROM and book, said he had breasts and was an expert at oral sex.

The U.S. government is planning a nation-wide survey to detect violence (NBC News Dec. 30).

John H. Lichtblau (CFR), of the Petroleum Industry Research Foundation, said (Moneyline Jan.
1) that oil demand is down substantially compared to increases in previous years.

The main opposition party in Taiwan (Austin American-Statesman Jan. 2) is reconsidering its
independence platform in view of the small likelihood of intervention by foreign countries if
Communist China were to decide to invade the island.

A survey of 117 credit cards from 74 banks by Consumer Action (Parade Jan 3) found that
banks earned 74% more on late fees in 1998 than in 1995 (late fees have increased from $5-$7
to $20-$29).

The Center for Media and Public Affairs found 1,502 stories on Monica Lewinsky and 502
stories on weapons inspections (News Hour Dec. 31) in 1998.

Kim Miller, leader of Concerned Christians, a Denver-based religious group, claims he is in

direct contact with God (ABC News Jan. 3): "He speaks through my mouth."

Gasoline in the U.S. is now (CBS Jan. 1) cheaper than bottled water.

Barry Diller (Moneyline Dec. 29) controls Ticketmaster, Home Shopping Network, USA
Network, the Sci-Fi Network and a dozen TV stations.

Moderator Cookie Roberts, daughter of law-makers, hosted This Year (ABC Jan. 3). Her
panelists were Sam Donaldson, William Kristol (BB), George Will (TC) and George R.
Stephanopoulos (CFR/RS).

Chief Justice Rehnquist has urged Congress to stop federalizing crimes (such as car-jacking,
arson, child support and animal protection) that are already outlawed by the states (PBS News
Hour Jan. 1). He said the trend "threatens to change entirely our federal system."
QUOTES

"The taxes paid by the ancient Hebrews at the time of the birth of Christ were levied to take
40% of their income, most of which was for tribute to Rome. It was not without reason that the
Hebrews dreamed of a Messiah who would free them from this load." -- Harold M. Groves
(1974)

"We must regain control of the presidency and the Congress for our democracy to survive.
Every voter must be made aware that any candidate having any connection with the Trilateral
Commission or David Rockefeller should be voted down. David Rockefeller and the Trilaterists
have vested interests directly opposed to the public." -- F.W. Maisel, THE GREAT AMERICAN
RIPOFF, p. 117.

"[T}he 'house of world order' will have to be built from the bottom up rather than from the top
down . . . [A]n end run around national sovereignty, eroding it piece by piece, will accomplish
much more than the old-fashioned frontal assault." -- Richard Newton Gardner
(CFR/TC), Foreign Affairs (April 1974)

"The true, imminent danger to America and to all nations seeking peace and good will stems
from widespread acceptance of the monstrous falsehood that in order to live in an
"interdependent" world, all nation-states must yield their sovereignty to the United Nations.
This lie is given dignity by other lies, chief of which is that Soviet totalitarianism has been
buried forever. A too wide acceptance of these dangerous falsehoods is resulting in: 1) a
massive transfer of wealth from the taxpayers in the West to the still-socialist governments of
the East that remain under the control of "former" communists; 2) the gradual but accelerating
merger or "convergence" of the U.S. and Russia through increasing economic, political,
social, and military agreements and arrangements; and 3) the rapidly escalating of power --
military, regulatory, and taxing -- to the UN. Unless the fiction underlying these developments
is exposed, national suicide and global rule by an all-powerful world government are
inevitable." -- William F. Jasper, GLOBAL TYRANNY . . . STEP BY STEP (December 1992).

"The United Nations is preparing a series of treaties which operate as domestic legislation,
affecting our citizens on matters on which our Constitution does not permit even the Federal
Government to legislate. They would abolish the Bill of Rights and replace it with a body of
state-granted privileges and duties modeled exactly on the Soviet constitution." -- Sen.
William Jenner (1954) week010.htm

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

VOL. 1. NO. 9. (to December 27, 1998).

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar

TC=Trilateralist

BUSH THINKING MORE ABOUT BEING PRESIDENT OF THE U.S.A.

Governor George Bush has yet to announce his candidacy for President of the United States.
However, he said (Austin American-Statesman Dec. 23): "I'm thinking about it a lot." He
appointed Mike Williams, a black, to the three-member Texas Railroad Commission. Bush got
an unprecedented 25% of Texas black votes according to exit polls last November. Williams
served as cochair in 1980 of Midland's United Way campaign. In 1990 President George Bush
made Williams assistant secretary of education for civil rights. In December Governor Bush
appointed Chase Undermeyer to be chairman of the State Board of Education. He was
Assistant Secretary of the Navy in the Ronald Reagan Administration. Under President Bush,
Untermeyer was director of presidential personnel. Untermeyer's most recent private position
was director of government affairs for Compaq Computer Corp. in Houston. On December 16,
Bush entertained Los Angeles investment banker, Brad Freeman, in the governor's mansion.
Freeman raised $500,000 for Bush at a Los Angeles luncheon last year. China is said to be
looking favorably on a second Bush presidency (South China Morning Post Dec. 28).

COMPANY FOUNDED BY FORMER PRESIDENT BUSH TO RE-LAUNCH INTERNET BUSINESS

VENTURE ABANDONED IN OCTOBER

Zapata Corp., founded in 1953 by former President Bush, is now primarily a fish oil and
sausages firm (Reuters Dec. 23) that plans to become an Internet titan. Its subsidiary, Zap
Corp., will develop an Internet brand name and a network of sites. Zapata President Avram
Glazer said the global financial markets have "strengthened dramatically."

NEW SPEAKER IS A REAL SQUEAKER

Former wrestling coach, Rep. Dennis Hastert, will become Speaker (NBC News Dec. 21). He
has been married for twenty-six years and has no personal problems. Tom LeLay gathered up
the votes for him after Livingston announced he would not serve.

SOLID JEWISH SUPPORT FOR GORE MAY MOVE TO BILL BRADLEY

The Forward reports, in an article by Seth Gitell, that the combination of impeachment and
Clinton's moral equivalence between Israeli terror victims and Arab terrorists, may cause the
resilient Jewish support for both Clinton and Gore to move. A group of Jewish New Yorkers
has already begun an exodus from Vice-President Gore (CFR/M) to back Bill Bradley (CFR/RS).
Morton Klein, President of the Zionist Organization of America, has stated that Clinton's Gaza
speech "may have been the most pro-Arab speech ever given by an American
president." Senator Arlen Specter (R-Penn.) met in Israel with a group of families of terrorist
victims and promised congressional hearings. Richard Norman Perle (CFR), a former aide to
Senator Henry "Scoop" Jackson and resident fellow at the American Enterprise Institute, said
six years of misleading members of Congress may come back to haunt Clinton in the
impeachment process. Perle was reminded of the last days of Nixon by Clinton's Gaza trip.

PEACEMAKER MITCHELL CHOSEN TO INVESTIGATE BRIBES

Former Senator George John Mitchell (CFR) has been chosen by the Olympic Committee to
investigate charges of bribery (NBC News Dec. 22).

DANGERS TO GLOBAL ECONOMY SUGGESTED BY IMF

The IMF announced five key risks to the global economy (Moneyline Dec. 21): 1) capital
inflows to emerging markets, 2) weakness in Japanese economy, 3) big swings in exchange
rates, 4) protectionist pressures and 5) stock market surges. On September 4 Fed Chairman
Alan Greenspan (CFR/TC) stated (Moneyline Dec. 22): "It is just not credible that the United
States can remain an oasis of prosperity unaffected by a world that is experiencing greatly
increased stress."

WALL STREET NEWS

AOL is being added to the S&P 500. This often boosts a stock (Moneyline Dec. 22). Bill Gross,
Managing Director of PIMCO, of Newport Beach, California, the largest bond business
manager who oversees a $150 billion portfolio, predicts 5% interest in the U.S. Japan owns
about 10% of U.S. treasuries. He is buying mortgages that are guaranteed by the government
and yield 6.5%. Chuck Clough, of Merrill Lynch, said (Moneyline Dec. 22) we had seen one of
the most rapid increases in bank credit in the history of the Federal Reserve System. Starting
in October, bank credit in the U.S. grew at a 40% rate. This is the sole reason why stocks came
back up. There is a bubble, however, and most stocks are still down. John Manley, of Salomon
Smith Barney, said (Moneyline Dec. 22) the Fed wants to protect the lending system. He likes
Bristol Myers, Chase Manhattan and Hewlett Packard stocks. Robert Stovall, President of
Stovall/21st Advisors, (NBR Dec. 24) said that investors globally are putting their money into
large U.S. corporation stock. He likes Berkshire Hathaway B stock and 3Comm.

NBC STORY PRAISES AMERICAN CONSUMPTION AND LACK OF SAVINGS

Lionel Tiger, a Rutgers Professor, has written a book about America's unique optimism. He
stated in an interview (NBC News Dec. 23): "People feel that they don't have to save money
against a rainy day because they don't see what that rainy day would be." The U.S. now has a
whole shopping generation under twenty-five that has never lived in a recession. The Great
Depression is now sixty years in the past. Personal economic fear is a complete stranger. The
sunny American attitude is good for the country. Donald Jacobs, of the Kellogg School of
Management, said (NBC News Dec. 23): "We're going to consume and we're going to invest,
and if we consume and invest things will be well. So, I call it the virtuous cycle." With sales up
5%, the American economy calls it Merry Christmas.

WALL STREET WEEK REVIEWS MAJOR BUSINESS EVENTS OF 1998

Louis Rukeyser (PBS Dec. 25) reviewed 1998's key deals. In April, Traveler and Citicorp
announced their merger. Citicorp was started as a New York Bank in 1812 and grew to nearly
3,000 offices in 100 countries. John Shed Reed (BB/CFR) (Citicorp) and Sandy Weill
(Travelers) were interviewed (May 8) by Rukeyser. Weill said that Citicorp has 200 million
customer inquiries a year from their credit card customers. He could make their lives a lot
simpler: "We are in a global economy and there is no getting away from the fact that you are
going to be affected in one country from what happens in another country and it's important, I
think, with the world changing as fast as it does that companies have stability, that companies
have diverse income, both by regions and by product, and be very, very strong." Weill said
concerning possible layoffs: "This is not a story about layoffs." He then added: "We certainly
decided not to lay anybody off at the chairman or CEO level." Last week, however, Citigroup
announced that 10,400 jobs would be axed in a pre-Christmas announcement. Eckhard
Pfeiffer, President and CEO of Compaq Computer Corporation, was interviewed on Nov. 21.
Rukeyser then gave a history of the more and more United Europe. The first move came from
the U.S. Marshall Plan. The true founder was the Frenchman Jean Monett who said that
Germany should be an economic partner. In 1953 France decided to merge its steel and coal
production with Germany. The EU charter group in 1958 had six nations: Belgium, France,
Germany, Italy, Luxemborg and the Netherlands. In 1973 the first six were joined by Britain,
Denmark and Ireland. Greece was admitted in 1981; Portugal and Spain in 1986. In 1995
Austria, Sweden and Finland brought the total of the EU nations to 15. It has one-third of the
land area of the United States but a much larger population of 380 million (versus the U.S.
population of 268 million). The EU has a GNP of $8 trillion (U.S. $7.2 trillion) and a 20.9% share
of world trade (U.S. 19.6%). In England the issue of turning over sovereignty to bureaucrats on
the other side of the channel was a big obstacle. England has a direct investment of $142
billion in the U.S. which is greater than any other nation. Brussels is now Europe's capital. By
July 2002 the euro will replaced the currency of all participating EU nations. The question:
after economic union, will political union follow?

NEW YORK STOCK EXCHANGE NOW AGAIN LOVES NEW YORK

The Mayor of New York unveiled a $560 million city and state economic incentive package to
keep the New York Stock Exchange from moving to New Jersey (Moneyline Dec. 22). New
Jersey had offered $1 billion for the move. The NYSE provides 4% of the jobs in New York and
17% of all wages. Mitchell Moss, Professor of Urban Policy and Planning at New York
University, said the NYSE played the threat of leaving to get the maximum subsidy. The space
for the NYSE has been tripled. It will retain the facade of J.P. Morgan and the Wall Street
address.

LESS GAS STATIONS BUT MORE ENVIRONMENTAL PROTECTION

The number of gas stations in the U.S. has declined from 2 million in 1988 to 600,00 in
December 1998 (NBC News Dec. 23). This is said to be an unfortunate outcome of a necessary
environmental protection. Up to two-thirds of gas tanks that have been dug up so far have had
leaks. Gas stations will now be harder to find.

BANKERS HOPE TO SAVE BILLIONS BY ELIMINATING U.S. USE OF CHECKS

Wired News says bankers are working on "truncation" to convert checks into electronic
impulses by lining up cooperative merchants. The writing of checks, derived from the custom
of long-ago English gentlemen, is seen as a drain on bank profits and may be used as a
justification for further bank mergers. People are still hung-up on using cash, barter and
writing checks. Gerard Milano, Director of the California Banker's Clearing House Association,
said: "Changing their behavior patterns takes generations. You can only change them one bill
at a time."

THE CLINTON IMPEACHMENT DEBATE GOES ON AND ON

Former President George Bush (CFR/M/S&B1948/TC) (Reuters Dec. 25) joined Bob Dole (33rd
M) and Jimmy Carter (CFR/TC) in calling for a Senate rebuke but continuation in office for
President Clinton. President Clinton (BB/CFR/RS/TC) on Thursday attended a dinner party at
the home of Vernon Jordan (BB/CFR/TC). Democratic Senators Robert Byrd (D-West Va.) and
Daniel Patrick Moynihan (CFR) (D-New York) are crafting a censure resolution. In Friday's New
York Times, Moynihan of New York was quoted: "There has to be a commander-in-chief. You
could very readily destabilize the presidency."

Senator Robert Torricelli (CFR) (R-N.J.), a member of the Senate Judiciary Committee, said
(CBS Face the Nation Dec. 20) that no Democratic Senator now plans to vote against President
Clinton. He said that resignation "would be the wrong thing to do." Senator Joseph Lieberman
(CFR) (D-Conn.) said the Senate wanted fairness, non-partisanship and does not want to
destroy the institution of the presidency. Senator Arlen Specter (R-Penn.) said from
London: "Censure is not worth a tinker's dam." Christopher Dodd (CFR) (D.-Conn.) hoped
(Meet The Press Dec. 20) that the Senate would begin immediately to see if an impeachment
trial could be avoided. The country doesn't want a protracted proceeding. There is no absolute
requirement that the Senate go through a trial. Dodd said (NBC News Dec. 22) there weren't
enough votes for impeachment. James Carville, Democratic Strategist (Meet The Press Dec.
20) was paired off against Mary Matalin, a Republican Strategist. Carville said: "These people
are going to pay for what they did. This was a cowardly and dastardly thing that they did. And
there's going to be retribution and the retribution is going to be at the polling place." Matalin
asked where his spirit of reconciliation was. Carville said the Republicans had ignored two
elections and the constitution. Tom Brokaw (CFR) said (NBC News Dec. 21): "(T)he country is
not happy with those who did the impeaching." Impeachment was taking away from the spirit
of the holidays. Two-thirds want no trial. The heartland message is: "Enough already!" A tape
was shown (Meet The Press Dec. 20) of Hillary Clinton's statement on Today (January
27): "The great story here for anybody willing to find it and write about it and explain it, is this
vast right-wing conspiracy that has been conspiring against my husband since the day he
announced for President." Henry Hyde (CFR) stated (Meet The Press Dec. 20): "And it's hard
to give absolution to somebody if they don't want to admit to the details of what they did."

Senator John Hubbard Chafee (CFR/TC) (R-R.I.) said (NBC News Dec. 21) that at least a trial
must begin in the Senate: "It's very heavy weather out there for the President right
now." Senator Dianne Feinstein (BB/TC) (D-California) said (NBC News Dec. 21): "What
bothers a lot of people is that it doesn't seem to come through to him (Clinton) the enormity of
the situation in which he finds himself." She said later (NBC News Dec. 22) there was a need
for "some real indication that impeachment has sunk deeply into the psyche of this
man." Three deal makers for Clinton surfaced (McLaughlin Group Dec. 20): Bob Dole (33rd M),
Gerald Rudolph Ford, Jr. (BB/CFR/33rd M) and Congressman Mike Castle (former Governor of
Delaware). Former President Jimmy Carter (CFR/TC) joined Ford in proposing censure. The
President would publicly acknowledge that he lied under oath but the admission could not be
used in any future criminal trial. Ray Kerrison wrote in The New York Post (Dec. 15) about
a "Clinton criminal spree" and said the Republicans had "handed the rogue president and his
bankrupt Democratic Party its worst nightmare." Clinton is the first elected U.S. President to
be impeached. Despite impeachment (NBC News Dec. 21), his ratings continue to increase:
72% approve while 25% disapprove. 62% say to remain and 34% say to resign.

Bob Schieffer remarked (CBS Face the Nation Dec. 20) that Congress is unable to do mundane
things like pass appropriations bills but can impeach the President. The tawdry revelations
about Bob Livingston came just before the vote and the war was stopped just after the vote.
He said there was something that was just not right.

DEBATE ON GULF BOMBING HOTTER NOW THAT BOMBS ARE AWAY

William Cohen (CFR/TC) said (CBS Face the Nation Dec. 20) that U.S. troops will continue to
be in the Gulf and that there was concern not to injure innocent civilians. Defense Secretary
Cohen praised 6,3000 troops on the U.S.S. Enterprise (NBC News Dec. 23). The reporter
stated: "The difficult mission lies back on shore convincing American allies in this region that
gave very little support to operation 'Desert Fox' that it was the right thing to do." The
Department of Defense has spent $3 billion in the Persian Gulf in 1998 alone. Rep. Peter Goss
said (NBC News Dec. 21): "I don't think we did as much as we needed to get done." The forces
will remain in the Gulf as long as the eye can see. Madeline Albright (CFR/TC) said (Meet The
Press Dec. 20) that everyone was home safe from the 70-hour mission. The region is safer and
it was a credible use of force. When Saddam claims victory "that is sheer propaganda." She
added: "To say that it was a setup is dead wrong." Jack Kemp (33rd M) questioned (Meet The
Press Dec. 20) the purpose of the bombing: "Or does it have no more purpose beyond venting
frustration from years of failed policies?" Scott Ritter, former weapons inspector, was quoted
in the New York Post(Dec. 17, 1998): "You have no choice but to interpret this as "'Wag the
Dog.'" He was referring to a recent movie where the plot was a President who started a war to
cover up a sex scandal. Later he said (NBC News Dec. 21): "I think this is a very feel good
campaign of achieving very little of significance." Richard Haass of the Brookings Institute
stated (NBC News Dec. 23): "The weapons inspectors are not back, Saddam is still there, our
alliances in the region and around the world are somewhat weakened. This is not a good
investment for the United States." But the Clinton administration says it is worth every penny.
National Security Advisor Sandy Berger (CFR) stated (NBC News Dec. 23): "Saddam has
learned that we have not lost our resolve to block his aggressive aims." Pat Buchanan said
there was (McLaughlin Group Dec. 20) a plausible case for the air strikes and timing. He
predicted that Pinochet would win his appeal and be sent home. Eleanor Clift
ofNewsweek said that Clinton was backed up by career generals, could not stop impeachment
and the strikes had been in train since November 14th. A post-bomb world is coming soon.
She also predicted that Dick Gerphardt (CFR) would become House Speaker in 2000.
Lawrence Kudlow, of National Review, said it was a Marx Brothers policy that would not work
without U.S. troops on the ground. Kudlow also said that out of 350 sites in Iraq only three
were not able to be inspected. A story in the Washington Post (Dec. 16) stated that
Washington "helped orchestrate the terms of the Australian diplomat's report" and played "a
direct role in shaping Butler's text."

The International Atomic Energy Agency (IAEA), a Vienna-based organization, gave Iraq a
clean nuclear bill of health and said that Iraq had provided "Effective and efficient
cooperation." Clinton falsified the existence of a nuclear threat.

TO THE CONTRARY FEATURES CFR PANEL

Elaine Choa (CFR) of the Heritage Foundation, President of United Way America and wife of
Senator Mitch McConnell, appeared (PBS To The Contrary Dec. 20) on a panel which also
included Eleanor Holmes Norton (CFR) of Washington, D.C. and Patricia Scott Schroder (CFR),
former Congresswoman (D-Colo.). The program was sponsored by the David and Lucile
Packard Foundation and the Teresa and H. John Heinz III Foundation.

20/20 FOCUSES ON SCIENTOLOGY AND DEMISE OF CULT AWARENESS NETWORK (CAN).

ABC's 20/20 (Dec. 20) was hosted by Barbara Walters (CFR) and Diane Sawyer (CFR). The
program focused on the Church of Scientology. Tom Gerard reported on a year's
investigation. One of the church's most bitter enemies was the Cult Awareness Network
(CAN). Some Scientologists joined CAN. Beginning in 1991, some fifty anti-CAN lawsuits were
filed. A suit by Jason Scott drove CAN into Chapter 11 bankruptcy in October 1995. A Los
Angeles lawyer, a Scientologist, now owns the name and assets of the bankrupt CAN. Today,
when you call CAN, a Scientologist answers the phone.
RESIGNATIONS SHAKE BLAIR AND NEW LABOR PARTY IN BRITAIN

Last Wednesday British Trade Peter Mandelson, the political mastermind of Tony Blair's 1997
election victory, resigned along with Treasury Minister Goeffrey Robinson (Reuters Dec. 27).
The scandal resulted from a secret loan of $625,000 to Mandelson to buy a house in London's
Notting Hill district. Mandelson also may have accepted a free flight on a private jet owned by
Linda Wachner, an American tycoon. He is expected to spearhead a campaign to persuade
Britain to join the single European currency.

ED BRADLEY REPORTS ON WHITE FARMERS IN SOUTH AFRICA

There are some 50,000 white farmers left in South Africa (60 Minutes Dec. 20). Ed Bradley
(CFR) said that whites have begun armed night patrols due to the record murder rate. Innocent
South Africans are being stopped and asked what they are doing out.

BILLIONAIRE ATHEIST GEORGE SOROS INTERVIEWED ON SIXTY MINUTES

George Soros (BB/CFR), like Andrew Carnegie, J.P. Morgan and John D. Rockefeller, has
amassed billions (60 Minutes Dec. 20) by "ruthless business decisions" and then has spent
most of his fortune to support his personal philosophy. He stated:"(T)he fact is the system is
broke and it needs fixing." He believes the world needs to be protected from people like
himself. Soros explained: "I am a player and I think all players should be regulated. There has
to be rules of the game." His $14 billion Quantum Group moves money around the world every
day and answers to no one. He sold Thailand currency, was followed by Hong Kong traders
and much of Asia was thrown into recession. In the past two years, Soros has been blamed
for the collapse in Thailand, Malaysia, Indonesia, Japan and Russia. The Prime Minister of
Malaysia spent four years building up its economy and along came "a moron like Soros" with
a lot of money and it was all over. Kraft said that the Prime Minister had called Soros a
"criminal." Soros replied: "It's easier for him to blame an outside force than to admit that they
were mismanaging their economy and their currency. The French finance minister talked
about hanging speculators from lamposts." Soros said the Asian currencies would have
collapsed if he had not been in the markets. They were over-valued. People tend to follow his
lead because he has been so successful. He said: "I am basically there to make money. I
cannot and do not look at the social consequences of what I do." Jim Grant, Editor of Grant's
Interest Rate Observer, said about Soros: "This man is a carnivore of the first order. He has
always amazed the people he has worked with because of his audacity and his willingness to
back up his commitments with enormous sums of money. It causes the blood to drain from
ordinary mortal's faces." Like when he risked $2 billion in Russia. When it began to fall part in
August, Soros was Russia's biggest investor. He called Uncle Sam and asked for $7 billion to
prop up the ruble. When the U.S. failed to intervene, Soros wrote a letter to the Financial
Times of London saying that the ruble should be devalued by as much as 25%. A few words
from Soros was enough to cause a panic selling that fueled the crash. The Russian middle
class was hurt and Soros lost his $2 billion. After Soros was shown in Haiti walking with
Hillary Clinton, it was noted he will give away almost $500 million this year. Richard Holbrooke
(BB/CFR/TC) said: "$5 million up front can be more valuable than $50 million a year or two
later." He said that for a time, in Bosnia, George had given more money to implement the
peace plan than the U.S. government. In Russia Soros pledged $100 million to keep scientists
from defecting to places like Iraq. He explained to Kraft: "(A)s a competitor, I have to compete
to win. As a human being, I am concerned about the society in which I live." He described
himself: "It's one person . . . who at one time engages in amoral activities and the rest of the
time tries to be moral." Soros was born in Budapest to wealthy, well-educated Jewish parents.
When the Nazis invaded in 1944, his father bribed a German inspector to create papers making
George his godson. Soros than went with his Nazi godfather when he confiscated property
from other Jews. But, said, Soros, the property would have been confiscated anyway. At the
age of 14 he learned to look ahead and anticipate events. When asked if he was religious,
Soros replied: "No." When asked is he believed in God, he said: "No." Soros said he believes
that God was invented by man, not the other way around. In Ukraine he was received like a
visiting head of state. He wrote a memo for South Africa's President Mandela on how to fend
off speculators: "Whether I or somebody else does what is ever happening in the market really
doesn't make any difference to the outcome. I don't feel guilty because I am engaged in an
amoral activity which is not meant to have anything to do with guilt." His hedge funds operate
offshore in the Netherlands Antilles. The fund is not registered with the SEC. It is more
convenient not to be regulated:"Whatever regulations I propose, we will obey." He stated: "If
you think that you're God and you go into financial markets, you're bound to come out broke.
So, the fact that I'm not broke shows that I don't believe that I am God."

RUSSIA DEPLOYS NEW BREED OF MOVEABLE NUKE MISSILES

Russia has (AP Dec 27) deployed 10 Topol-M vehicle-launched nuclear missiles with a range
of more than 6,000 miles. Thirty more Topol-Ms are to be built by the end of 2000 to maintain
nuclear parity with the West.

CURRENT COMMUNIST COMMENTS CALLED SIMILAR TO VIEWS OF STALIN

With increased Russian Jewish immigration to Israel already predicted, the Foreign Ministry of
Israel Thursday issued as a response to the remarks made by (IsraelWire Dec. 27) Russian
Communist Party leader Gannady Zyuganov: "The remarks made by Mr. Zyuganov with regard
to the nature and objectives of Zionism are in line with the slanders of the 'Protocols of the
Elders of Zion', and certainly do not fit his claim that his party supports the construction of a
democratic society in Russia. His remarks demonstrate his complete ignorance of the true
nature and objectives of Zionism." Zyuganov stated that he was not against Jews (IsraelWire
Dec. 25) but "Zionists" who were stoking "russophobic hysteria" and "act in secret and
employ the hands of others." Stalin, said Shimon Samuels, used the same line against Soviet
Jews.

ARAFAT CAUSES CONTROVERSY BY ALLOWING HAMAS LEADER OUT OF HOUSE ARREST

FOR RALLY

Arafat on Wednesday released Hamas spiritual leader Sheik Ahmed Yassin from house arrest.
The decision to end the unpopular detention may signal a growing unwillingness on the part
of Arafat to proceed with the now controversial and dangerous next phase of the Wye
accords. Moshe Fogel, Israeli government spokesman, called the release, from two months of
house arrest, a show of bad faith. The 11th anniversary (AP Dec. 25) of the founding of Hamas
was celebrated by an appearance by Yassin on December 25th. The rally, attended by some
10,000 people, was allowed under conditions which included no burning of flags and no
masked men. Yassin said at the rally: "I want to ask, what did Clinton do for us during his
visit? The purpose of his visit to the region was . . . to destroy Palestinian unity and the
Palestinian dream." Yassin (Reuters Dec. 23) was released from an Israeli jail in October 1997
in exchange for two Mossad agents that had been caught by Jordan trying to kill a senior
Hamas official in Amman.

SON OF BEGIN TO RUN FOR PRIME MINISTER BUT GIVEN LITTLE CHANCE

Benny Begin, son of Menachem Begin, the founder of the Likud Party and its first Prime
Minister, will run (AP Dec. 28) against Benjamin Netanyahu in Israel.

ATTACK ON BRITISH AND AMERICAN CITIZENS URGED

Osama bin Laden (IsraelWire Dec. 27) has called on the one billion Moslems in the world to
attack both British and U.S. citizens to avenge the air strikes on Iraq.

U.N. COMBAT ROLE PROVOKES DISPUTE IN JAPAN

Some officials of the ruling Liberal Democratic Party are bucking participation of Japanese
troops in U.N. Operations. The LDP wants to keep the role of troops limited to logistic support
and away from combat (AP Dec. 27).

MIKE WALLACE INTERVIEW WITH NEW NRA PRESIDENT HESTON

Charlton Heston became a bankable star after playing Moses (60 Minutes Dec. 20). He told the
Christian Coalition that he would have lived up to their expectations by arriving in a chariot
but some one would have to clean up after the horses, but, after all, you've been having to
clean up after the liberals. Heston, said Wallace, is currently playing a man the liberals love to
hate. He said he was now reading a script that was written by the founders of the United
States. Ben Franklin, he said erroneously, was asked what form of government we had and he
replied: "A democracy-- if you can keep it." He gave seven reasons why he took the job as
head of the National Rifle Association: Hitler, Mussolini, Stalin, Mao, Ide Imin, Castro and Pol
Pot: "All these monsters began by confiscating illegal arms." On June 20, 1968, he joined Kirk
Douglas, Gregory Peck and Jimmy Stewart in signing a petition for gun control. His
response: "I've made a number of mistakes in my life, Mike."Heston was a liberal Democrat
who supported JFK. He was one of a small number of actors who joined Martin Luther King's
march on Washington. His efforts were for "common ground" and "making an equal playing
field." Then he had a political conversion similar to Paul on the road to Damascus. He saw a
billboard for Barry Goldwater which stated: "In your heart you know he's right." He never went
left again. He became the poster boy for a reborn conservative movement. In a speech to the
Free Congress Foundation he berated "the fringe propaganda of the homosexual coalition, the
feminists who preach that it is a divine duty to hate men and blacks who raised a mailed fist
while they seek preference with the other." Wallace asked him for forgiveness but said this
sounded like the language of a nut-case, right-wing zealot. Heston replied: "Everybody goes
off in their own gypsy camp. That's not the kind of country that was invented." Wallace said
that homosexuals were a pressure group like the Christian Coalition. Heston replied: "I'm not
saying I'm going to throw rocks at them. I'm saying it disturbs me, just like it disturbs a lot of
people." He added: "The war I have declared is against federal control of every aspect of our
lives." Wallace asked if that was the same war that Timothy McVeagh declared. Heston
answered: "I don't plan to use a bomb. My war is a war of words." To the Christian Coalition,
Heston stated: "Ronald Reagan's spirit fills this room." Reagan, a World Federalist, was a
member of the NRA. But the NRA has become too extremist, has moved too far to the right.
Wallace asked him if he thought it was right to call the BATF "jack-booted thugs." Heston said
he was the first to call and say "you have to take that back . . ." Heston understood why
President Bush resigned from the NRA: "I hope in my tenure to change that opinion, Mike." He
quoted an Australian who was having his guns confiscated: "I remember when the Nazis
forced Jews to wear yellow stars as identity badges, so what color star will they pin on gun
owner's chests?" Wallace said that recent laws had been passed in England and Australia. In
England virtually all private handguns are now illegal. Supreme Court Justices William
Douglas and Louis Powell stated that the Second Amendment does not stand in the way of
gun control. Chief Justice Warren Berger was quoted: "The very language of the Second
Amendment refutes any argument that it was intended to guarantee every citizen an
unfettered right to any kind of weapon he or she desires." Heston said: "If he said that, I
disagree with him. It's a free country." "Still," said Wallace. Heston: "Still and it will be by God
Almighty."Heston says that its not guns but the criminals that use them. He points to
Richmond, Virginia where federal laws have been used to give sentences of years, not
months. There was a 65% reduction in murder and crimes within 6 months. He has challenged
the Mayor of Philadelphia to do likewise. But the Mayor said the problem was the huge
number of guns flooding the market. He then proposed a limit of one gun per month to each
customer. But the NRA spokesman said that if they can say one, they can say none. Wallace
asked: "Why do you need more than one gun a month?" The NRA spokesman replied: "It is
not a question of need. It's the freedom we are for." The Mayor said that Heston was a decent
man -- not a true believer in the whole NRA stuff. You get him alone and he will understand.
The polls and gun owners feel the need for more gun controls. The NRA continues to see
tough gun control as a threat to individual liberty. Heston said he wanted to give something
back for the rich life he has lived. He received the nation's highest artistic honor last year at
the Kennedy Center in Washington from what Wallace termed "the notoriously liberal
entertainment establishment community (which) turned out in force." Lynn Redgrave saluted
him with a poem by Robert Frost. President Clinton and Hillary clapped for him as part of the
welcoming crowd. Charlton Heston (60 Minutes Dec. 27) wrote to Mike Wallace: "Dear Mike:
Mea culpa, mea culpa, mea maxima culpa . . . it seems ironic that at this stage of my life I have
to be reminded that it's wiser to critique a work after you've seen it . . . I'm sorry . . . -- Chuck"

ALSO IN THE NEWS

On a panel discussion (CNN Newstand Dec. 20) on the Man of the Year, James P. Kelly (CFR),
Time Deputy Managing Editor, was a participant.

Sir Henry Kissinger (BB/CF/TC) and Zbigniew Brzezinski (BB/CFR/TC) gave a run-down on the
results of the recent Iraq bombing campaign (PBS Dec. 21).

Up to 65% of the $4.3 billion foreign debt of Honduras (AP Dec. 27) (40% of its budget) may be
forgiven.

A poll of 1,050 Israeli high school students (Israel News Dec. 28) indicated that the students
"feel the Israeli media is left of center, by as much as 91 percent."

QUOTES

"If you will not fight for right when you can easily win without bloodshed, if you will not fight
when your victory will be sure and not too costly, you may come to the moment when you will
have to fight with all the odds against you and only a precarious chance of survival. There
may be even a worse fate. You may have to fight when there is no hope of victory, because it
is better to perish than live as slaves." -- Winston Churchill, Quoted by Gary Allen, NONE
DARE CALL IT CONSPIRACY (1971).

"But most urgent of all were those arising from debtor-creditor relations, which threatened the
property interest. James Madison said he believed these 'contributed more to that uneasiness
which produced the the (1787) Constitution and prepared the mind for general reform' than
any political inadequacies of the Articles. The public credit was gone, due to inability to pay
foreign bankers and debts owed to the demoralized army officers . . . It was this so-called
Shays's Rebellion and the issuance of unfunded paper money by seven states by 1786 that
more than anything else helped crystalize public opinion that a new system of government
was necessary." -- Frank Bourgin, The Great Challenge 13-14 (Perennial 1990).

"Power and accountability for its use -- these are the two elements which chiefly constitute the
essence of good government." -- Woodrow Wilson (October 1882).

"You can give a man an office, but you cannot give him discretion." -- Ben Franklin, AN
AMERICAN BIBLE at 31 (Alice Hubbard Ed. 1946).

"The one, the true one, looks upon appointment to office with a view to the service that can be
given to the public. The other, the false one, looks upon appointment to office with a view to
what can be gotten out of it." -- Elihu Root (August 30, 1915).

"Choosing and removing top leadership is a way of controlling indirectly all delegated
decisions; decisions on policies and on choice of other leaders who are appointed by top
leaders." -- Charles Lindblom, POLITICS AND MARKETS (1977).

"I am for Socialism, disarmament, and ultimately for abolishing the state itself as an
instrument of violence and compulsion. I seek social ownership of property, the abolishment
of the propertied class, and the sole control by those who produce wealth. Communism is the
goal. It all sums up into one single purpose -- the abolition of the dog-eat-dog under which we
live." -- Roger Baldwin, ACLU Founder

"If the common people refuse to give encouragement to those who fight their battles, they
need not expect to have defenders." -- William J. Bryan, THE FIRST BATTLE 629 (1896).

"I solemnly affirm to exercise in all loyalty, discretion and conscience the functions entrusted
to me as a member of the international service of the United Nations, to discharge those
functions and regulate my conduct with the interest of the United Nations only in view and not
to seek or accept instructions in respect to the performance of my duties from any
government or other authority external to the organization." -- UN Oath

"It must be made perfectly clear that no American soldiers, not even a corporal's guard, that
no American sailors, not even the crew of a submarine, can ever be engaged in war or ordered
anywhere except by the constitutional authorities of the United States. To Congress is granted
by the Constitution the right to declare war, and nothing that would take troops out of the
country at the bidding or demand or other nations should ever be permitted." -- Senator Henry
Cabot Lodge (Quoted by Bill Still of Still Publications)

POLITICAL PREDICTIONS:
A centrist NRA position by acting President Charlton Heston will lead to more NRA
memberships, perhaps, but more and more U.S. gun control on a gradualist basis.

When Arafat finally carries out his promises to both disarm Palestinians and arrest accused
murders, the reaction will be so violent as to justify the expense of keeping the record number
of U.S. troops (including Marines) in the Persian Gulf and may require U.S. armed intervention
on the side of Israel.

George Walker Bush will raise the funds to outspend and defeat any opponent for the next
Republican presidential nomination and when elected President will appoint a cabinet with
many Skull and Bones members in his administration.week009.htm

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

VOL. 1. NO. 8 (to December 20, 1998).

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar

TC=Trilateralist

THE ADL GIVES GOVERNOR BUSH A CLEAN BILL ON RELIGIOUS BELIEFS

Governor Bush was accompanied in his recent trip to Israel (U.S. News Dec. 14) by
key Jewish Republicans, including Mel Sembler, finance chairman of the
Republican National Committee. Abraham Foxman, the national director of the New
York-based ADL, has now given Bush (Austin American-Statesman Dec. 13) a clean
bill of health, saying he has proven his "commitment to tolerance, diversity and the
principles of religious freedom." In a statement, after private conversations with
Bush, Foxman said: "The matter of his 1993 statement is now behind us." The ADL
has recently unveiled a new software program (New American Dec. 21) to help
parents filter bigotry out of their computers. The "HateFilter" also steers the user to
the ADL's own home page. On November 17, the 1st Dictrict Court of Appeals, in
San Francisco, ordered the self-appointed monitor of hate groups to surrender
information it had illegally obtained on pro-Palestinian activists, Jewish dissidents,
and others believed by the ADL to be "extremists." In the appeal, the plaintiffs
stated that the ADL "illegally obtained confidential records, such as driver's
licenses and Social Security numbers, from the state and used them to get people
blacklisted among the organization's supporters."

Gregory Gallico III (S&B 1968), a Boston Plastic Surgeon, told the Fort Worth Star
Telegram last month (Austin American-Statesman Dec. 18) about himself, Governor
Bush (S&B 1968) and other Delta Kappa Epsilon brothers at Yale: "Drank a ton in
college. It was absolutely off the wall. It was appalling. I cannot for the life of me
figure out how we made it through." Bush told GQ Magazine, while drinking a non-
alcoholic beer: "I had more than my fill of the real stuff. Ask the guys who used to
hang with me back then. It wasn't pretty." The Governor stopped drinking 12 years
ago. Governor Bush and Lt. Governor-elect Rick Perry have chosen their
inauguration theme (Austin American- Statesman Dec. 19) for January 19,
1999: "Together We Can-Juntos Podemos."

LIVINGSTON WILL NOT SERVE AS SPEAKER AND WILL SHORTLY LEAVE THE
HOUSE

Amid the impeachment debate, Bob Livingston (AP Dec. 19) announced he would
leave Congress next year and would not serve as Speaker of the House. Candidates
now included chief deputy whip Dennis Hastert (R-Illinois), Christopher Cox (R-
California), Henry Hyde (R-Illinois) and Bill Archer (R-Texas).

GORE VISITING NEW HAMPSHIRE REGULARLY IN PREPARATION TO RUN

Vice-President Gore (CFR/M) has visited New Hampshire (Reuters Dec. 15) about
once every six weeks since March to keep his front-runner position. He is
combining political trips with official business -- including announcing more than
$3 million in federal environmental and educational grants. Governor Bush has not
yet been to New Hampshire. Gore made his third trip to Israel in the past four
years (U.S. News Dec. 14) when he visited last May to help celebrate the 50th
anniversary of its founding. Gore's top foreign policy guru is Leon Fuerth (The New
Republic Dec. 7). Richard Holbrooke (BB/CFR/TC) called Fuerth "one of those
powerful but rarely seen people who play major roles behind the scene in
Washington." He is one of the members of "the Principals Committee" whose
members include William Cohen, Madeline Albright and Sandy Burger.

BONESMAN DEMOCRATIC PRESIDENTIAL HOPEFUL KERRY IS AT THE HEAD OF

HIS CLASS NOW

John Forbes Kerry (S&B 1966), while in the U.S. Senate. "has consistently gone to
bat for the NEA," according to Dana Milbank (The New Republic Dec. 14). He earned
a 100% tally in NEA's most recent rating as well as in the American Federation of
Teacher's voting analysis. On schools he recently stated: "I'm for tough love here
folks. It's time to come in and kick some butts. Democrats can't be viewed as
somehow protecting these practices. You can't do this in some loosey-goosey, half-
assed way."

Kerry's Yale Bones Class of 1966 was: John R. Bockstoce (S&B 1966); George
Clifford Brown (S&B 1966); Alan W. Cross (S&B 1966) -- M.D. Director, Center for
Health Promotion and Disease Prevention at UNC-Chapel Hill; Michael Thomas
Dalby (S&B 1966); James Ernest Howard (S&B 1966); Forrest David Laidley (S&B
1966); Richard Warren Pershing (S&B 1966) -- Born in New York City on October 25,
1947. Grandson of General John J. Pershing. Died in Vietnam on February 17, 1968.
His father, F. Warren Pershing, is or was the senior partner in Pershing & Co.,
stockbrokers. A graduate of both Phillips Exter Academy and Yale, he had just
completed training at Ft. Benning, Georgia, before going to Vietnam. He was
engaged to Shirley Hildreth Gay, a member of the editorial staff at Vogue Magazine;
David McIver Rumsey (S&B 1966); Ronald Leonard Singer (S&B 1966); Frederick W.
Smith (S&B 1966) -- Chairman of American Express. Met with President Clinton
(Washington Post August 21, 1997) for 45 minutes to discuss a problem that was
costing his company $100 million a year. Made a $250,000 contribution to the DNC.
Federal Express is (Reuters Dec. 18) the world's largest air express package carrier.
It has reached a tenative new agreement with its 3,600 pilots; William Burks
Stanberry, Jr. (S&B 1966); David Hoadley Thorne (S&B 1966) and Thomas Vargish
(S&B 1966).

BANKER BOWLES BOWS OUT OF N.C. GOVERNOR'S RACE

Former Clinton administration chief of staff, Erskine Bowles, who resigned in

October, announced (AP Dec. 15) that he would not make the transition to
becoming a politician by running for the governorship of North Carolina. The 53 --
year-old investment banker, who has extensive business connections and personal
wealth, said he would continue to work in the private sector and help nonprofit
groups.

ATTACK ON IRAQ BRINGS OUT VIRTUALLY UNANIMOUS ELITES IN SUPPORT OF

MILITARY ACTION: IT'S THE RIGHT THING TO DO IS KEY PHRASE USED TO BACK
UN MASS DESTRUCTION WEAPONS-INSPECTION REGIME

James Chance recently wrote in the New York Review of Books: "Although the
Clinton administration certainly doesn't want to admit it, 1999 will mark the eleventh
year of the Bush administration -- at least as far as foreign policy is concerned."

William Sebastian Cohen (CFR/TC), Secretary of Defense, observed (NBC News

Dec. 16) a history of Iraqi lack of cooperation with Richard Butler: "(F)aced with
Iraq's outright refusal to obey its international obligations, the United States acted
to restrict the threat that Iraq poses to its neighbors and international order." Cohen
(ABC Dec. 17) denied that the U.S. was tracking Saddam Hussein. Cohen said
Saddam had some 80 palaces (News Hour Dec. 17) at last count.

A CNN poll (Reuters Dec. 17) showed that 74% of Americans supported the air
strikes with 13% opposed. An NBC poll (NBC De. 17) showed that 75% approved the
military strike while 17% disapproved. On the question of whether the air strikes
were connected to the pending impeachment vote, 59% disagreed while 27%
agreed. But Republican Senate Majority Leader Trent Lott stated (CNN Dec. 16): "It's
the right thing to do at the wrong time." Clinton said Thursday that air strikes
(Reuters Dec. 17) were "absolutely the right thing to do." Newt Gingrich (CFR)
strongly (AP Dec. 17) endorsed the military action as he formally passed his gavel
to Bob Livingston: "We must carry the burden of leading the world."

While the Washington Times said (Reuters Dec. 17) that Clinton's attack followed
the pattern of the "Wag the Dog scenario," the New York Times said the action "was
fully justified." Support for the President and U.S. troops also came from the Los
Angeles Times, The Washington Post, the Boston Globe, the Hartford Courant,
the Miami Herald and the Chicago Tribune.

Madeline Albright (CFR/TC) told Jim Lehrer (CFR) that (News Hour Dec. 17): "I
believe that the President did the right thing to make the decision to have this
military campaign at this time." The decision was based upon the Butler report, she
said. Butler consulted with the permanent five of the Security Council. Richard
Butler (ABC Dec. 17) said that his report "danced to no one's tune."

James A. Baker III (CFR) of the Baker Institute said (NBC News Dec. 16) there was a
need for speed and that Clinton probably was forced to act: "We've diddled around .
. . we probably had to act, this is the right thing, I think, for the United States to do .
. . Nobody could be so craven as to risk the lives of our military men and women to
cover their political backsides . . . " Baker, who served in senior positions under
President Ford, Reagan and Bush, is on the board of Directors of Rice University,
Princeton University, the Woodrow Wilson International Center for Scholars in the
Smithsonian and the Howard Hughes Institute. He is senior partner in the law firm
of Baker & Botts and senior counselor to The Carlyle Group. The 1st Director of the
James A. Baker III Institute for Public Policy at Rice University is Edward Peter
Djerejian (CFR) who served as Clinton's Ambassador to Israel.

Samuel R. Berger (CFR), U.S. National Security Adviser, explained (CNN Dec. 16)
that the UN Secretary-General had agreed upon five criteria. Iraq has not
cooperated. The inspection commission was not able to function. Richard Butler,
on Tuesday, reported that due to Iraq's deception, the inspections were ineffectual.
There was no choice but to take military action. The object was to take out missiles,
weapons of mass destruction and prevent aggression towards neighbors. With the
inspections no longer being possible, the U.S. had to make good on its threats of
military force. 40 out of 42 U.S. embassies (CBS Dec. 17) were shut down in Africa.

Tom Brokaw (CFR) stated (NBC News Dec. 16): "It is a chaotic situation. None of us
can remember, at least in recent memory, the confluence of these kinds of events in
which you have a major military action ordered by the president of the United
States who is on the eve of being put, in effect, of being put in the dock of the
House of Representatives and subjected to articles of impeachment just 15 hours
later." He also said (NBC News Dec. 17) that even though the President was
commander- in-chief, the impeachment rolled on. On Friday Brokaw opened the
most watched news (NBC Dec. 18): "And questions about hypocrisy. The new
House Speaker admits cheating on his wife. Should he judge the President?"

Former President Jimmy Carter (CFR/TC) stated (Reuters Dec. 17): "American
leaders played no role in the timing of Iraq's violations, which cannot be related to
political events in Washington."
President Clinton (BB/CFR/RS/TC), in response to a question from Wolf Blitzer, said
(NBC De. 17): "And I don't believe any reasonably astute person in Washington
would believe that Secretary Cohen and General Shelton and the whole rest of the
National Security team would participate in such an action."

Laurence S. Eagleburger (CFR/TC), however, apparently broke rank, and said (NBC
News Dec. 16) that "it smells." Eagleburger is with Baker, Donelson, Bearman &
Caldwell P.C., D.C. and sits on the board of directors of Phillips Petroleum Co.

Richard ("Dick") Andrew Gephardt (CFR) opposed holding a debate on

impeachment (ABC Dec. 17) in part based on what Saddam Hussein would think.

Paul Gigot (BB) said there could be no debate while Americans are in harm's way
(PBS Dec. 16) while Mark Shields said that Saddam Hussein had ran out his string.
Senator Lott will be mute now. Later, Lott said he had been briefed by the
administration (NBC De. 17) and stated: "I am going to take their word for it." John
Dean, former Nixon White House Counsel, now an investment banker in Los
Angeles, said that the assumption now is that the President is wrong.

Rep. Porter Goss (R-Florida) , House Intelligence Committee Chairman, said (CNN
Dec. 16) that he had not been briefed: "Bringing Saddam Hussein to justice and
dismantling his regime is what this is about." Goss (ABC News Dec. 17) will hold a
hearing next month. Goss, a 1960 honors graduate from Yale, had a 10-year career
as a Clandestine Services Officer with the CIA. He is a native of Waterbury,
Connecticut.

Richard Haass, of the Brookings Institute, said (NBC Dec. 18): "There is no end
game. The only thing that will end is American bombing. But when the bombing
ends, Saddam will still be there, his army will still be there, his weapons of mass
destruction will still be there."

Joseph Lieberman (CFR) (D-Conn.) supported (PBS Dec. 16) Clinton's

actions "absolutely." It was made clear to Senators three weeks ago that if Richard
Butler was frustrated, the U.S. would strike Iraq without delay or warning. He agreed
that the timing was "disconcertingly awkward." Senator Lott's statement
disappointed him. Radio Free Iraq is now in operation.

Peter Jennings (BB/CFR) noted (ABC Dec. 17) that Iraq was bigger than California.
He said that Clinton was not getting the traditional support and was taken aback by
the comments from Senator Lott and Dick Armey. He said a "lot of serious people
here think there is a connection" (with impeachment).

John Forbes Kerry (S&B 1966) said that Clinton was doing the right thing (K-Eye
News Dec. 16).

Brent Scowcroft (BB/CFR/TC), the co-author with former President George

Bush (CFR/M/S&B1948/TC) of a new book, A World Transformed, said (CNN Dec.
16) that there had not been an adequate explanation of the Richard Butler report. He
was asked if Clinton had the same standing that George Bush had in the prior Gulf
War. His answer to Bernard Shaw was: "No." Up to now, he said, there had only
been "pin-pricks" on Iraq, made to satisfy some domestic critics, rather than a
serious policy of containment. He was asked when the perennial crisis would be
ended and replied: "It will probably end with Saddam Hussein. And perhaps not,
until then." Scowcroft, a retired Air Force Lt. General, was Vice-Chairman of
Kissinger Associates, Inc., currently is the president of The Forum for International
Policy and chairman of the board of the CSIS/Pacific Forum. He is also a director of
QUALCOMM Incorporated. He was featured in the New York Times (February 4,
1998) in a debate on NATO article, along with Howard Baker, Jr. (CFR), Sam Nunn
(BB) and Alton Frye (CFR).

Senator John Warner (PBS Dec. 16) said it was imperative to join together "to
enforce the rule of law." He said England was "bravely participating" and that there
was clear and convincing proof in the Butler report to the UN. Timing was an issue
but now we must back our troops.

Mohammed Said Al-Sahaf, Iraq Foreign Minister, said (News Hour Dec. 17) that
rather than "Operation Desert Fox," the operation should be called "Villians in the
Arabian Desert."

Wednesday night (AP Dec. 17) Iraq, Russia and China called to an immediate halt to
the attacks. Iraq's UN envoy, Nizar Hamdoon, said that the uproar over weapons of
mass destruction was "nothing more than a big lie" like the claim that Iraq was a
threat to its neighbors. He said that Richard Butler, the head of UNSCOM, had cited
only five incidents in 300 inspection operations. In an almost unanimous resolution
(Reuters Dec. 17), the lower house of the Russian Parliament, said that the U.S. and
Britain were engaged in "international terrorism." Yeltsin said the strikes "crudely
violated" the UN charter and should be halted immediately. Russia is furious
(Reuters Dec. 18) that the U.S. bypassed the UN Security Council which gave it no
chance to use its veto. Friday Russia's ambassador Yuli Vorontsov (Washington)
and Yuri Fokin (London) were withdraw for consultations. Albright said that James
Collins, the U.S. Ambassador to Russia, would not be recalled. Iraq owes Russia
and France (NBC De. 17) some $15 billion.

The Vatican (Reuters Dec. 17) called the strikes "aggression." The Pope told envoys
that "the right of each person and peoples to live in security . . . is more urgent than
ever."

A billion Muslims begin the fasting month of Ramadan (AP Dec. 17) this weekend
during which they abstain from food, drink, smoking and sex from dawn to dusk.
The fast begins with the sighting of the crescent moon.

WALL STREET REACTION TO BOMBING AND IMPEACHMENT

Oil prices initially serged with news of the attack (NBR Dec. 16) with Crude Oil up
$0.83 to $12.38. Douglas Bohi, oil analyst with Charles River Associates, said that
Iraq exports about 2 million barrels a day. Crude oil than retreated (NBR Dec. 17) to
$11.03 a barrel (down $1.35). Jeffrey Applegate, Market Strategist with Lehman
Brothers, said the dollar will probably be boosted. He found it hard to foresee a vote
of two-thirds of the Senate for impeachment. Charles Clough of Merrill Lynch said
impeachment was no big deal although foreign investor concerns might hurt the
dollar. Ronald Hill of Brown Brothers Harriman, said the impact of the President on
the economy was small. Joseph Battipaglio of Gruntal & Co. said that Clinton's job
rating was high. Thomas Galvin of Donaldson, Lufkin and Jenerette, said that Gore
would most likely continue Clinton's economic policies. John Manley of Salomon
Smith Barney indicated impeachment might end rumors of Robert Rubin (BB)
resigning. Robert Doll, Chief Investment Officer for the $100 billion Oppenheimer
Funds, said (NBR Dec. 17) that as President Gore would continue the same
economic policies. He likes Compac and Gateway stocks. Alan Ackerman,
Executive Vice-President of Fahnestock & Co., was interviewed by Paul Kangus
(NBR Dec. 18). Ackerman stated: "(T)his country is strong, the economy is strong,
transition teams are in place and the president is surrounded by very good
people." His stock picks: Home Depo and Pepsico.

Donald B. Marron (CFR), Chairman and CEO of Painewebber, said (Moneyweek Dec.
11) that impeachment is a political rather than business issue. He does think that
impeachment in the House may have an impact on the stock market. Marron is a
Director of the Charles A. Dana Foundation.

Louis Rukeyser (Wall Street Week In Review Dec. 18) said that the Iraq attack had
avoided oil fields and accused the press and media of a "hummingbird attention
span." A preoccupied Congress, he said, might turn out to be a good thing. Gold is
at a two-month low. His main guest was Jessica Reif Cohen, Entertainment Analyst
with Merrill Lynch. She sees fewer films being made and likes Time Warner and Fox
stocks. Cable will be the best net provider due to its continuous connectivity (no
need to dial) and super-high transmission speeds. Two networks (CBS and NBC)
are yet to be affiliated with a studio.

IMPEACHMENT THIS WEEK GATHERS GOBS OF ELITES

A PBS News Hour panel discussion on impeachment (Dec. 15) was led by Jim
Lehrer (CFR). The three panelists were Tom Oliphant, of the Boston Globe, Norman
Ornstein (CFR), of the American Enterprise Institute and Thomas Edward Mann
(CFR), Director of the Governmental Studies program of the Brookings Institute.
Ornstein is an election analyst for CBS News, a columnist for Roll Call and a senior
advisor to the Times Mirror Center for the People and the Press. He has appeared
onNightline, Today and Face the Nation. According to the National Journal, he is
an "icon of the press" and a sage "called on to deliver the final word." Ornstein and
Mann are co-editors of the Brookings/American Enterprise Institute
publication:Intensive Care: How Congress Shapes Health Policy (1995). They have
also co-authored three other books.

The top three editors of Time (4.1 million subscribers), Newsweek (3.2 million
subscribers) and U.S. News and World Report (2.2 million subscribers) were then
interviewed, on their impeachment coverage, by Terrence Smith, PBS Media
Correspondent: Mark Whitaker (CFR), of Newsweek, Walter Seff Isaacson (CFR), of
Time and Stephen Grant Smith (CFR) of U.S. News. Isaacson is a graduate of
Harvard and Oxford University. He co-authored The Wise Men: Six Friends and The
World They Made and Kissinger: A Biography. Before becoming the Managing
Editor of Time in January 1996, he was editor of New Media for Time Inc. (1993-
1993) (developed the website Pathfinder).

Panelists discussing impeachment on Washington Week In Review (Dec. 18)

included Thomas L. Friedman (BB/CFR/TC). Friedman saw three tracks:
impeachment, the Iraq bombing and the global economy.

Robert Rubin (BB) has kept his distance (Moneyweek Dec. 11) and has not lobbied
to stop the impeachment process. Jessie Jackson (CFR) held a prayer vigil (NBC
News Dec. 14) for William J. Clinton (BB/CFR/RS/TC) on Thursday against "mean
spirited leaders" who "want to ram a dagger through his heart." Robert "Bob" Dole
(33rd M) proposed (News Hour PBS Dec. 15) a compromise for Clinton that would
be a "blending of responsibility and justice" that was published in the New York
Times. Senator Joseph I. Lieberman (CFR) (D-Conn.) stated (New Hour PBS Dec. 15)
that if the House votes out an impeachment article, the Senate rules clearly required
it to be taken up. A majority of the Senate will then decide what happens next. He
said the rules also allow a motion to adjourn. A motion to dismiss would also be up
to the majority. Barbara Streisand (PBS Dec. 16) said that Clinton was "acclaimed
as a peacemaker around the world" as actor Jack Nicholson joined in an anti-
impeachment Los Angeles rally. Gore seeks a resolution that is "quick and fair."

Margaret Warner did a PBS interview on impeachment (News Hour Dec. 17) that
included Rep. Lee Herbert Hamilton (CFR/TC) (D-Indiana) and Rep. Jim Leach
(CFR/TC) (R-Iowa). Hamilton thought the impeachment debate could wait and that
harsh criticism would weaken the President. The criticism of the President was
unprecedented. Leach said that Congress had the duty to go forward. He said the
motivation of Clinton "should not be questioned." Rep. Marty Meehan (D-Mass.)
said we could afford to wait and that going ahead with impeachment would send
the wrong message to Saddam and the troops. He spoke of a majority of the U.S.
Senate questioning the President. Rep. Bill McCollum (R-Florida) was introduced by
Warner as the representative who said that Congress could dance and chew bubble
gum at the same time. McCollum said he was against delay and there was no end in
sight for the bombings.

William Kristol (CFR) said (ABC News Dec. 17) that impeachment must go on
despite the bombing. The Bob Livingston marital indiscretions were scooped
by Roll Call writer Jim Vande Hei who told Lou Dobbs (Moneyline Dec. 17) that
Hustler Magazine and several other new organizations had been looking into the
new Speaker's past sex life. Frank Sesno (CFR) and John A. King, Jr. (CFR)
reported on the Livingston story for CNN (Moneyline Dec. 17). Lou Dobbs said the
same thing had been done with Henry Hyde (CFR). Sesno broke into Dobb's
coverage with a quote that showed that Livingston was still planning to go full-
speed ahead with impeachment. The House voted by 415 to 5 in favor of the troops.
Those accused of infidelity in the House so far: Livingston, Hyde, Burton and
Chenoweth. Larry Flynt (NBC News Dec. 18) has been running an ad offering up to
$1 million which asks: "Have you had an adulterous sexual encounter with a current
member of the United States Congress or a high ranking government official?" He
said: "Believe me, there's more people than that to come yet. There's about a dozen
of them that are going to bite the dust on this issue." Rep. Maxine Water (D-
California) stated(NBC News Dec. 18): "The hypocrisy that is demonstrated by my
friends on the other side of the aisle is absolutely stunning." Kenneth M. Duberstein
(CFR), former Ronald Reagan chief-of-staff, described the Washington scene (NBC
News Dec. 18):"Washington really is not the streets of Beirut anymore. It's really
reminiscent of Vietnam after a napalm bomb attack. It's scorched earth."

Henry Hyde stated (NBC Dec. 18): "No man or woman, no matter how gifted a
manipulator of opinion, or winner of votes, can be above the law." One of the two
Republicans against impeachment was Peter King (R-New York). Rep. John
Conyers, Jr. (D-Mich.) said: "Now I'm personally outraged that we would decapitate
the commander-in-chief at the time that we are at war abroad." Charles B. Rangel
(CFR/TC) (D-New York said (NBC News Dec. 18): "This procedure is not on the
level." He asked:"What has the President done to cause so much hatred, so much
animosity?"

NEW REPUBLIC ECHOES FEMA'S STERN MESSAGE AND SAYS U.S. POLICY
SHOULD CANCEL ALL OFFICIAL DEBTS OWED BY HONDURAS AND NICARAGUA

An editorial in the New Republic (Dec. 7) agreed with FEMA head, James Lee Witt,
and stated: "No longer will the federal government underwrite people's stubborn
refusal to bend to the will of Mother Nature." The outraged editorial also said that
IMF chief Michel Camdessus issued no call for debt forgiveness but said in essence
that Honduras and Nicaragua would eventually have to pay them.

WORLD BANK AND IMF COLLIDE BUT VERY POLITELY

The latest World Bank 186-page annual report, without naming names, hinted that
the IMF and U.S. Treasury may have paid more attention to interest rates than
unemployment. The dispute between the World Bank and the IMF (U.S. News Dec.
14) goes back to the crisis in Asia in the summer of 1997, according to Gary Clyde
Hufbauer (CFR), Senior Fellow at the Institute for International Economics in
Washington. Merrell Tuck said the difference between the World Bank and the IMF
was like a physical therapist and a battlefield surgeon. Haubauer has stated that the
anti-dumping laws are being used selectively (Investor's Business Daily Dec. 14).
He also said that if states can set their own trade policies it could wreak havoc with
the world trade system.

FOR POORER BUT NOT RICHER COUNTRIES DEBT RELIEF IS NEEDED

Zambia's Archbishop Medardo Mazombwe stated (National Catholic Reporter Nov.

13) : "We are slaves of debt. My country spends more money on debt than schools,
health, water and sewer combined." He participated in the October 22-23 meeting
on the ethical dimensions of international debt held at Seton Hall University. The
meeting "was the culmination of nearly two years of work, sparked by a request
from Pope John Paul II to the U.S. bishops to convene such a meeting." James
Wolfensohn (BB/CFR), President of the World Bank, said that developing countries
should lobby the lenders of wealthy countries who have dramatically cut foreign aid
in recent years. Two years ago an initiative was launched by the IMF. World Bank
and major creditor nations. It is called the "Heavily Indebted Poor Countries
Initiative." No existing organization appears to exist to lobby for relief of taxpayers
in "Rich" Countries. Wolfensohn said that the heavily indebted poor countries owe
$215 billion out of the overall total global debt that is now at $2 trillion. Poor country
relief advocates say they will only need a small tax hike in the developed nations to
make one billion people free from international bankers.

MORE FOREST LAND BOUGHT BY ENVIRONMENTALISTS

The 900,000-member Nature Conservancy has purchased almost 1% of the state of

Maine (286 square miles or 185,000 acres ) from a paper company (AP Dec. 15) for
$35.1 million and promises to keep the unbroken forest open for recreation. The
buy comes as nearly 15% of the state's land has been sold off in the last three
months to mostly timber and paper companies.

UN-COVERED ECO-TERRORISM CRIMES ON THE RISE

During this decade the number of incidents of eco-terrorism has risen greatly. Barry
Clausen, of North American Research, claims there have been 1,500 eco-attacks in
the past decade. For the past two or three years (New American Dec. 7) the number
has been about 300 each year, compared to only six in 1986.

OLYMPIC COMMITTEE SCANDAL FOCUSES ON SALT LAKE

Three years ago Utah won the right (NBC News Dec. 14) to host the Winter
Olympics in 2002. This was the result of a secret vote of the International Olympic
Committee. Mark Hodler, a member of the IOC, alleged that payments of up to $5
million were made to bring this about. Salt Lake 2002 spend $393,871 on 13
individuals, 6 of whom were direct relatives of IOC members. Frank Joklik, of the
Salt Lake Organizing Committee, apologized for the scandal which has (ABC News
Dec. 13) shaken the committee to its "over-privileged core." The DOJ (AP Dec. 17)
may investigate allegations of bribery. The investigation (AP Dec. 19) has now been
turned over to a 5-member independent ethics panel whose report is due on
February 11.

MERGERS ON THE MOVE INCLUDE BRITISH AND GERMAN BUYS

The British London-based publisher, Emap PLC, is paying $1.2 billion in cash for
The Petersen Companies, Inc which publishes Motor Trend, Teen, Sport and other
speciality magazines (AP Dec. 15). The deal will bring its total to nearly 360
magazine titles with revenues of $1.5 billion. In a second U.S. UK purchase this
week, National Grid is paying $3.2 billion for the New England Electric System
(Moneyline Dec. 14). The world's biggest book publisher will soon be German-
owned. The pending Bertelsmann/ Random House deal is expected to cost $1.2
billion (Newsweek Dec. 7).

Mattel is paying almost $4 billion (NBR Dec. 14) for The Learning Company. Hughes
Electronics, a subsidiary of GM, is buying U.S. Satellite Broadcasting for $1.3 billion
in cash and stock.

DaimlerChrysler may get a stake (AP Dec. 17) in Japan's debt-laden Nissan Motor
Co.

MASSIVE CANADIAN BANKING MERGER BLOCKED BY FORMER CORPORATE

EXECUTIVE-TURNED FINANCE MINISTER

Canada's Finance Minister, Paul Martin, a former corporation executive, Monday

(AP Dec. 14) rejected a merger of two banks that together would have controlled
70% ($623 billion) of the banking assets in the country. The proposed marriages
would have wed Royal Bank of Canada (#1) with the Bank of Montreal (#3) and
Canadian Imperial Bank of Commerce (#2) with Toronto-Dominion Bank (#5). Martin
is the front-runner to replace Jean Chretien as prime minister.

ROYAL DUTCH SHELL TO SHELL OUT FOR CHEVRON?

Royal Dutch Shell (AP Dec. 14) is selling off 40% of its chemical business and
announced its fourth-quarter earnings would be off by $4.5 billion. It expects $2.5
billion in cost savings by the year 2001. The world's largest oil company has a $11
billion global spending program. The revenues of the Hague-based Royal Dutch
Shell company (Houston Business Journal Dec. 11-17) in 1997 were $128 billion
with $160 billion in market capitalization. It has 105,000 employees (9,300 in
Houston). Chevron had revenues of $45.8 billion with $56 billion in market
capitalization. The San Francisco-based oil company employs 39,000 (2,770 in
Houston). Royal Dutch is the parent of Houston-based Shell Oil Company. The
chairman of its managing directors it Mark Moody Stuart. Jack Little is the CEO of
Shell Oil Co. If Royal Dutch and Chevron combine it will control a 30% market share
in the U.S. downstream market. If the Exxon merger with Mobil goes through it will
take the place of Royal Dutch as the largest oil company in the world. Chevron
(Moneyline Dec. 14) will cut $500 million in costs.
CNN MONEYLINE'S MYRON KANDEL HITS AT CORPORATE JOB CUTS

Myron Kandel, in a rare outrage at business, said that both Citigroup and Chevron
buried the news of layoffs. In the Citigroup press release, the job cuts were
mentioned in the next-to-last paragraph. Chevron never mentioned any numbers.
Kandel said that three or four years ago stocks rose when corporations announced
job cuts. When Citigroup spend 900 words before mentioning that 10,000 people
would lose their jobs, Kandel asked: "What does that say about
priorities?" The (New Hour PBS Dec. 15) Citigroup cuts will impact 6% of its global
workforce.

Citigroup will take a $1 billion charge and layoff 8,000 employees to save $1 billion
(Moneyline Dec. 14). RJR Nabisco, the second largest U.S. cigarette maker, is
cutting 15% of its workforce after the $0.45 a pack increase. RJR International
(Moneyline Dec. 14) will lay off 2,900 workers in Russia. When Citibank and
Travelers got married last April, the message was growth, not job-cutting. Sandy
Weill stated on April 6 (Moneyline Dec. 14): "I think there will be more addititives
over time, rather than contraction." Citigroup said it was short-term pain for long-
term gain.

Ted C. Fishman wrote that Citigroup, for the first time in more than sixty years
(Harpers Dec.), "will combine a banking division protected by the (taxpayer-backed)
FDIC with a major securities firm, vulnerable to huge losses." He further noted
that:"It also creates an institution so large and powerful that its failure would
destabilize the world financial system. In effect this means that not only are
depositors guaranteed; the entire institution is." The Citicorp-Travelers bill passed
by one vote last session but was stalled in the Senate. James A. McDermott (CFR),
President of Keefe, Bruyotto & Woods, is recommending Citigroup stock (NBR Dec.
15) which will pan out over time. He likes BankOne in Columbus, Ohio, First Union
in Charlotte, N.C., Mellon Bank in Pittsburg, Northfork Bank Corp in the New York
area, Chase and Citigroup.

SOROS SAYS INTERNATIONAL REGULATION AND INSURANCE NEEDED

At one point in 1994, more than half of the flow into U.S. mutual funds (Newsweek
Dec. 7) went into emerging market funds. According to CFR Director, George Soros
(BB/CFR), the collapse in Russia and Indonesia was "unintended," but "Malaysia
shut itself off from international capital markets deliberately." Soros says the
choice is international regulation of global markets or leaving each state to protect
itself. He proposed an International Credit Insurance Corporation in the Financial
Times (Dec. 31, 1997). Soros suggests imposing margin requirements and hair-cuts
(capital requirements) on derivative and swap transactions and other off-balance
sheet items to solve the hedge fund problem. He favors subordinating the
sovereignty of states to international law and institutions "insofar as there are
collective interests that transcend state boundaries . . . "
Malaysia Prime Minister Mahathir Mohamad (AP Dec. 19) is carrying out a long-term
plan, called Vision 2020, to join the ranks of rich and industrialized nations by the
year 2020.

LUGAR CALLS FOR MORE HEDGE FUND INFORMATION FOR REGULATORS

In the late 1960s about $2 billion was invested (NY Review of Books Dec. 17) in
hedge funds. Today the figure is around $300 billion. There is a $17 trillion global
pool of money (Time Dec. 14) belonging to "high-net-worth individuals" that
generates more than $150 billion a year in banking revenue. Senator Richard Lugar
(RS) wants (NBR Dec. 16) hedge funds and financial managers to provide more
information to regulators. He also wants more prudent oversight by lenders
although hedge funds may move off-shore. More hearings will be held by Lugar
next spring.

THE EURO: BACKGROUND ON THE NEW CURRENCY FOR EUROPE

The European Union (Business Unusual CNN Dec. 12) has one-fifth of the
production of the world's goods and services and more customers than the United
States. On January 1, 2002 Euro notes and coins become the legal currency of
Europe. The European Central Bank will control monetary policy. Twelve and
eleven-year-old children are being shown films showing why one currency is better
than eleven. The early name for the Euro was "ECU" but the Germans thought it
sounded too French. A later name was "Euro-Mark" but the French thought that
sounded too German.

11 countries (AP Dec. 19) will use the euro (Austria, Belgium, Finland, France,
Germany, Ireland, Italy, Luxemborg, the Netherlands, Portugal and Spain) while
Britain, Denmark, Greece (non-qualifying) and Sweden retain sovereign currencies.
The euro will be worth between $1.10 and $1.20 initially. Stock will trade in euros.
The new currency bloc has 290 million inhabitants.

The euro (Christian Science Monitor Dec. 12) "opens a large opportunity to replace
cash." Armand Linkens, the managing director of Proton World in Brussels, was
quoted: "If we are ready," the euro could be a gigantic "kick for electronic
purses."Proton is a leading manufacturer of electronic-cash cards. The UK (Tony
Blair) , Germany (Gerhard Schroder) , France (Lionel Jospin) and Italy (Massimo
D'Alema) (Financial Times Dec. 12-13) are led by politicians who belong to the left.
Captain Euro (Wall Street Journal Dec. 14) is being used to teach European children
about the new money.

The President of the European Central Bank, Wim Duisenberg, told Die Zeit in an
interview (AP Dec. 15) that further cuts in interest rates may follow the debut of the
euro on January 1, 1999. Uri Daduch, chief economist for the World Bank, stated
(Business Week Dec. 21) that only prime borrowers "are getting any
money" and "only at spreads that are two or three times higher than they
were." The spreads between Treasuries and high-risk bonds now are almost at the
same level as at the heighth of the recent liquidity scare. 5-year Treasuries from
three months ago are trading at 10 basis points higher than the most recent issues.

The European Central Bank has its independence enshrined in the Maastricht
Treaty which says the bank must not "take or seek instructions" from national
governments (The European Nov. 30-Dec. 6). This is in contrast to both the German
and U.S. central banks that are both creatures of statutes that can be amended.
Wim Duisenberg, a socialist politician in the 1970s, is president of the ECB for now
but will be replaced midway through his term by the governor of the Bank of
France, Jean-Calude Trichner. France and German account for well over half of the
GDP in Euroland. The ECB does its operations behind closed doors and its minutes
will remain unpublished for years. On his trip to South Korea, Clinton hinted at a
new world economic order aimed at growth.

Germany will take over the rotating EU presidency (DW TV Dec. 15) in March.
Gerhard Schroder is more nationalist than the preceding German Chancellor and
wants to radically reduce Germany's EU contributions. His position is opposed by
Spain which says that if Germany pays less, the needier countries will receive less.
Joschka Fischer, Germany's Foreign Minister, said: "We know we are net
contributors and will remain net contributors. That is a consequence of our
country's strength."About 17 million (just under 10%) of Europeans are now
unemployed. Schroder, a cigar smoker, said: "(E)urope must concentrate whatever
resources it has on the issue of employment." Germany (NBR Dec. 18) is cutting
social security contributions (taxes) and increasing taxes on heating oil and
gasoline.

Poland (DW TV Dec. 15), in line now for EU membership soon, has set up a low-tax
foreign investment zone at the same time that some 145,000 coal jobs and 40,000
steel are being phased out or privatized. GM is one of the largest beneficiaries and
has created some 3,000 jobs.

Irvin Raskin Levine (CFR), Dean of International Studies at Lynn University, said
that the euro will mostly be good news for American businesses (NBR Dec. 15). It
will reduce the number of currencies and therefore reduce company costs. Some
U.S. banks will have to pay for the expense of new software, however. He ended his
tribute to the euro by saying that tourists will be deprived of exotic bills and
coins: "A more homogenized world, is that what we really want?"

VENEZUELA IN THE NEWS THIS WEEK: NEW PRESIDENT SPEAKS OUT

Venezuela is facing a $5 billion budget shortfall next year (Business Week Dec. 21).
Its currency may be overvalued by as much as 40%. Hugo Chavez, its new past
coup- attempting president, is talking about halting privatization, hiking wages,
cracking down on corruption and providing agricultural subsidies. About 80% of
the people in Venezuela (Christian Science Monitor Dec. 9) are considered poor.
Chavez said that: "The Constitution was written to include the privileges of the
political parties and to make the system as impervious to change as possible . . .
" He quoted Simon Bolivar: "I am but a blade of grass blowing in a great hurricane
of revolution. I am this, nothing more. I am a grain of sand. I am a drop of water in a
running river."

BRAZIL IN THE NEWS THIS WEEK: CAPITAL FLIGHT DESPITE 30% INTEREST

The rebuff of Cardoso's proposal to increase the social security taxes of some state
workers in Brazil (Business Week Dec. 21) "has left a very bad taste in everybody's
mouth," according to Walter Stoeppelwerth, director of Latin America research for
Robert Fleming Securities in Sao Paulo. Capital continues to flow out of Brazil
(Business Week Dec. 21) despite real interest rates as high as 30%. A key part of
the Brazilian recovery plan (Moneyline Dec. 14) is a tax on international
transactions. For the year-to-date, the Brazilian stock market is down 35%, Mexico
down 26% and Argentina and Venezuela down 40% (Moneyline Dec. 14). In the past
12 months foreign direct investment in Brazil (Business Week Dec. 21) was $24
billion and is predicted to total $17 billion in 1999. Unemployment, now 8%, may
increase to 12% in 1999.

MAI AGREEMENT SAID TO BE ON THE ROCKS

The Multilateral Agreement on Investment (MAI) has collapsed (Spotlight Newsletter

#6). The Organization for Economic Cooperation and Development (OECD) said on
December 4 that negotiations "are no longer taking place." International business
leaders, however, have pledged to keep pushing for some investment
agreement. Williard Workman, International VP for the U.S. Chamber of Commerce
stated: "There's still a need out there to have agreed-upon rules governing
investment overseas."

GENERAL ECONOMIC NEWS AND NUMBERS

Housing starts (NBR Dec. 16) were down 2.7% last month. The M-2 money supply
(NBR Dec. 17) was up $19 billion through December 7. The October trade deficit
was $14.2 billion (News Hour Dec. 17), down 1.2%. A big rise in farm exports caused
the small drop in the deficit. New jobless benefit claims tumbled by 31,000. Gold
(Feb.) was at $292.90 (-$3.60) (NBR Dec. 17). Commodity prices are still down (NBR
Dec. 17).

MARKET SUFFERING FROM EARNINGS JITTERS

Stocks fell from 9374.27 on November 23 to 8695.60 on Dec. 14 (NBR Dec. 14). This
was an 8% decline of the DJIA (700 points) blamed on "earnings jitters." The DJIA
serged 2,000 points in seven weeks. On Friday the DJIA ended up 81.87 points for
the week (NBC News Dec. 18) at 8903.63. Louise Yamada, Technical Analyst with
Salomon Smith Barney, said it was a consolidation, not a bear market. Liz Ann
Sonders, Managing Director of Avatar Associates, who manages $3 billion, said the
market was suffering from "whiplash." Avatar has 78% in stock and 22% in cash
(NBR Dec. 14). Sonders said the Fed will wait until later to cut interest rates further.
She likes Microsoft, Lucent Technologies, Intel, First Star and Painewebber stocks.

TOP-PERFORMING MUTUAL FUNDS

Top Mutual Funds Year-to-Date include (Moneyweek Dec. 11): Fidelity Magellan
(+22.9%), Vanguard Index (+21.7%), Fidelity Growth & Income (+20.9%), Invest. Co.
America (+17.3%) and Washington Mutual (+15.1%).

INTERNET BUSINESS FAR EXCEEDING PREVIOUS ESTIMATES

James Cash, Professor of Business Administration at Harvard, said (NBR Dec. 17)
that in July of 1997 the Forrester Group predicted $327 million in internet business
trade by 2002. The estimate has since been raised to $43 billion in 1998 and $1.3
trillion for 2003.

BULLISH STOCK PICKS

It's time to buy, according to Tom Galvin, of Donaldson, Lufkin and Jenerette
(Moneyline Dec. 14): "(W)henever the nattering nabobs of negativity become
pervasive, its always time to lock and load on stocks, not a time to run for the
exits." In another interview (NBR Dec. 14) he said that most people don't want
President Clinton "taken out." He was also a preliminary guest on Wall Street
Week Dec. 11. Fritz Reynolds, President of Reynolds Mutual Funds was the featured
guest. He is averaging 40% returns. His picks for core holdings: Microsoft, Intel,
Cisco Systems, Dell, Compac, Lucent Technology, AOL and Yahoo (to some
degree).

GENERAL ELECTRIC LOOKING TO DOUBLE-DIGIT GROWTH IN 1999

John "Jack" Welch (CFR) predicts double-digit growth in 1999 (Moneyline Dec. 14)
for General Electric. He said 70% of G.E. businesses were booked through 2000.
Welch sees bargains in Asian financial companies and says G.E. will spend even
more than the $18 billion it spent in Europe in Asia. The front-runners (Business
Week Dec. 21) to replace Welch, when he retires, are David Calhoun, David Cote,
Jeffrey Immelt and James McNerney, Jr. GE Capital contributed $300 million to
General Electric in 1986. Now its contribution to the GE corporate coffers is $4
billion annually.

THIRD PART OF TIME SERIES HITS TAX BREAKS WITH VERY FEW REAL
RESULTING JOBS

Louisiana, according to Time Magazine (Nov. 23), canceled $213 million in property
taxes owed by Exxon Corp., $140 million in taxes for Shell Oil Co., $103 million in
taxes for International Paper Company and $96 million in taxes for Dow Chemical
Co. A Louisiana official said companies practice a form of "extortion" by
demanding tax breaks yet give very little back in return. The average number of new
jobs for each $1 million in abatements is one or two. Time called the Fanjul family of
Florida, which owns one of the nation's largest producers (Flo-Sun Inc.) of raw
sugar, the "First Family of Corporate Welfare." U.S. sugar sells for more than
double the price the rest of the world pays. Alfonso Fanjul served as co-chairman of
Bill Clinton's 1992 Florida campaign. His brother Pepe was national vice-chairman
of finance for Bob Dole's 1996 presidential campaign

TOP HARVARD MONEY MANAGEMENT EXECUTIVES EARN MILLIONS

The top six executives of the Harvard Management Co. (AP Dec. 17) made
combined salaries of more than $45 million last year. The Harvard-owned company
has over $16 billion in nine different asset classes. Annual growth for the three
years ending on June 30 was 24.1%. The part managed by Jonathan Jacobson
earned 42.7% a year. The DJIA averaged 25% over the same three years. The
Harvard million-earners included David Mittelman ($9.8 million), Philip Gross ($9.7
million), Robert Atchinson ($7.9 million), Maurice Samuels ($6 million and Jack
Meyer, Harvard Management President ($1.8 million).

DIPLOMAT/INVESTMENT BANKER HOLBROOKE RETURNS TO SERBIA

U.S. Envoy Richard Holbrooke (BB/CFR/TC) was back in Serbia (AP Dec. 15). The
mission (CNN Dec. 14) in Belgrade Tuesday was to insist that Yugoslavia comply
with the UN Resolutions on Kosovo. The UN also wants three war crimes suspects
to be turned over. Holbrooke said that the latest bloodshed "will not in any way
deter the international community from carrying out its obligations" to work for
peace in the troubled province. He met with William N. Walker (CFR), head of the
Kosovo Verification Mission. Walker leads the Organization for Security and
Cooperation in Europe team. Holbrooke, on October 12th, brokered the agreement
to end fighting in Kosovo. Its terms were strongly criticized as "too
vague" by Zbigniew Brzezinski (BB/CFR/TC) on CNN's Crossfire. Holbrooke called
for restraint (CNN Dec. 14) on both sides and said he had just got off the phone with
Secretary of State Albright (CFR/TC).

TURNER COLD WAR SERIES PROVIDED ELITE FOOTAGE LAST WEEK

The CNN Cold War program, "Vietnam 1954-1968," featured (CNN Dec. 11) General
Andrew Jackson Goodpaster (BB/CFR), an aide to Eisenhower, Robert S.
McNamara (BB/CFR/TC), Roger Hilsman, Assistant Secretary, U.S. State Department
and Clark Clifford, Secretary of Defense.

General Andrew Jackson Goodpaster (BB/CFR) served as chairman of the George

C. Marshall Foundation and was Chairman of the Atlantic Council of the United
States.

Roger Hilsman (CFR) spoke on "After the Cold War: The Need for Intelligence" at
the Brookings Institution on April 24, 1998. He was unable to think of one covert
operation that had been successful. He has authored System Complexity in Political
and Social Life (1996) and will soon publish The Cuban Missile Crisis: The Struggle
Over Policy.

Clark Clifford, once described as "the silver-haired Brahmin of the nation's political
establishment," died at 91 on October 10, 1998. In his last years he faced charges of
fraud, conspiracy and taking bribes in the collapse of the Bank of Credit and
Commerce International. Earlier in 1998, Clifford and Robert A. Altman, his law
partner, made a $5 million settlement with the Federal Reserve Board. Altman was
acquitted in 1993 in New York state court of charges of bank fraud; indictments
against Clifford were set aside because of his poor health.

ELITES IN GEORGE'S 50 POWER LIST

The just-issued George Power 50 list included: Samuel "Sandy" R. Berger (CFR)
(+2), Bill Clinton (BB/CFR/RS/TC) (+3), William Cohen (CFR/TC) (+1), Richard
Gephardt (CFR) (+3), Newt Gingrich (CFR) (+3), Al Gore (CFR/M) (+2), Alan
Greenspan (CFR/TC) (+3), Henry Hyde (CFR) (+1), Jessie Jackson (CFR) (+1),
Joeseph I. Lieberman (CFR)(+1), Robert Rubin (BB) (+3), Madeline Albright
(CFR/TC)(-1), Daniel Farrell Burton, Jr. (CFR) (-3), Vernon Jordan (BB/CFR/TC) (+2),
James David Wolfensohn (BB/CFR) (+2), William Kristol (BB) (+1) and R. Emett
Tyrell, Jr. (CFR) (-1). The plus or minus power ratings (thumbs up or down) were
assigned by the magazine.

CFR FLAGSHIP MAGAZINE CARRIES PRO-INTERNATIONAL CRIMINAL COURT

ARTICLE

Ruth N. Glushien Wedgewood (CFR), a Yale Law Professor and Senior Fellow at the
CFR, lamented (New American Dec. 7) the failure of the Clinton administration to
sign the ICC statute in Rome in July. The article in the November-December issue of
the CFR's Foreign Affairs, claimed that an opportunity to shape the court in
America's image was lost. Theodor Meron (CFR) stated in the Washington
Post (Oct. 13) that non-parties to the proposed treaty would have more obligations
than party states. The latter are able to opt out of provisions dealing with war
crimes and crimes that will be added to the court's jurisdiction in the future. Non-
parties may not.

RULING AGAINST IMMUNITY TO BE REVIEWED BY LAW LORDS

On Thursday the highest court of Britain (Reuters Dec. 17) overturned its ruling that
Augusto Pinochet was not immune from prosecution. Lord Browne-Wilkinson, who
presided over the appeal, said that Lord Hoffman was disqualified from sitting in
the case. A fresh panel of judges will rehear the case in January.

YELTSIN UPDATE: WILL CONTINUE REFORMS

Boris Yeltsin (Reuters Dec. 15) said Tuesday that reforms will continue as he
prepared to meet with visiting Swiss President Flavio Cotti and Belarus President
Alexander Lukashenko. Later on Tuesday he was shown meeting with FSB head
Vladimir Putin who is investigating the multiple-shooting of parliamentary deputy
Galina Starovoitova. KGB (now FSB) investigator Viktor Cherkessov has been
assigned by authorities in Saint Petersburg to investigate the case. Sergei Slexeyer,
a spokesman for Starovoitova's Democratic Russia Party, stated (New American
Dec. 21): "If Cherkesov's been brought into the case, you can consider it buried."

RUSSIAN PARLIAMENT GIVES O.K. TO PRINT A BILLION RUBLES

On Wednesday, with inflation running at about 70%, the Russian parliament (AP
Dec. 16) unanimously approved a bill to allow the printing of $1.2 billion in rubles
for the last quarter of 1998. Exporters will be required to repatriate 75% of their
hard-currency earnings (up from the former 50%) to shore up foreign currency
reserves. Finance Minister Mikhail Zadornov said that a deal had been reached with
lenders to reissue $10 billion dollars in bonds with maturities of four to five years.
Deutche Bank and Credit Suisse-First Boston denied that such terms had been
reached. The Russian value-added tax is 20%; the profits tax is 35%. A bill was
passed (AP Dec. 18), on first reading, to cut the value-added tax to 15% in March
and 10% in 2000. The profit tax was cut to 30%. The sales tax on alcohol and
gasoline was increased. The inflation rate is 73.4% (up from 5%) with a ruble trading
at 20.75 a dollar (compared to 6 to the dollar in August). Unpaid wages (AP Dec. 17)
to state workers total $4.1 billion (up from $3.9 billion When Primakov took office in
September). $650 million in rubles was printed in October and November. In Russia,
where the average teacher is paid less than $25 a month, the total owed to the
teachers is $720 million. On December 11, Russia's gold and currency reserves
were $12 billion.

FOREIGN-OWNED BANKING SERVICES MAY BE OFFERED TO ENTICE RUSSIANS

TO UNLOAD THEIR HIDDEN HARD CURRENCY

Moscow may take out loans with private western banks (Business Week Dec. 21)
collateralized by the government's gold. In the August banking crash, the average
Russian lost about $2 billion (Christian Science Monitor Dec. 9). Estimates of
between $40-$60 billion in so-called hard currency is reportedly held by the "oft-
deceived population" in mattresses, floorboards or buried in kitchen gardens. The
Russian economy may (Business Week Dec. 21) contract by 5% to 7% next year.
Russia has asked the London Economic Club to accept $360 million worth of
principal payments, due on December 2, in long-term bonds, rather than cash. The
grace period before technical default will end on December 23.

Prime Minister Primakov is lately talking about removing the restrictions that
presently bar foreign-owned banks from providing deposits and loans to private
individuals. Vevgeny Vittenber, an expert with Moscow-based Intelbridge, was
quoted:"As things stand no one is going to trust a Russian bank, or the government
for that matter, for the next three generations." In early 1991 high-denomination
banks notes were eliminated as an "anti-black market" measure. In 1992
hyperinflation wiped out most Russian bank savings. Sam Houston of Texas wrote
to Andrew Jackson on January 31, 1843: "To you, General, I find myself indebted
for many principles which I have never abandoned through life. One is a holy love
of country and a willingness to make every sacrifice to its honor and safety. Next a
sacred regard for its constitution and laws, with an eternal hostility and opposition
to banks."

NEWSWEEK PRINTS EXCLUSIVE RUSSIAN INTERVIEWS WITH MOSCOW MAYOR

LUZHKOV AND GENERAL LEBED

Moscow Mayor Yuri Luzhkov (Newsweek Dec. 14) is "not left or right." He says the
supposedly leftist government "is adopting a rightest tax code." Russia is not yet
selling land. On the largely missing IMF aid to Russia, he stated: "I don't think
it allwent through dirty hands back to western banks." Aleksandr Lebed, who has
increased the collection of taxes in Krasnoyarsk threefold, said: "The majority of
Russians are convinced that since the U.S. failed to win the cold war, it conducted
an economic diversion and robbed our country." He also stated that 84% of all the
country's banking assets are in Moscow "and the rest of the country suffers from a
lack of blood supply."

COMMUNIST MEMBER OF PARLIAMENT CLAIMS THAT YELTSIN'S INNER CIRCLE

IS JEWISH

Viktor Ilyukhin, the Russian Communist head of parliament's security affairs

committee, Tuesday accused Yeltsin and Jews in his office of
waging "genocide" against the Russian people (AP Dec. 15). Ilyukhin told a panel
considering impeachment:"The large-scale genocide wouldn't have been possible if
Yeltsin's inner circle had consisted of the main ethnic groups, and not exclusively
of one group, the Jews." This outburst came after last month's move to bring back
the statue of Felix Dzerzhinsky, former head of the Soviet secret police, that was
toppled in 1991. After the session on Tuesday, Ilyukhin told
journalists: "Representatives of one ethnic group have been dominant in the
president's inner circle and the government during the past seven years. I have
already named this ethnic group." In October, Albert Makashove, another
Communist lawmaker, made an anti-Jewish ethnic slur which went uncensored.

On Wednesday (AP Dec. 16th) Boris Berezovsky, a Jewish business tycoon, called
for a ban on the Communist Party and said that, if needed, force should be used to
prevent Russian law-makers from making anti-Semitic remarks. James P. Rubin
(CFR) stated for the U.S. State Department: "We join with Russian leaders in
condemning these outrageous anti-Semitic statements." The issue, said Rubin, had
been raised when Vice-President Gore (CFR/M) and Madeleine Albright (CFR/TC)
recently met with Russian officials. Ilyukhin responded on Wednesday: "What kind
of democracy is it when a Russian man can't speak the truth?" Yeltsin, briefly, in
the early 1990s did ban the Communist Party before it returned as the largest
faction in Russia's lower house.
VATICAN OFFICIAL CRITICIZES JEWS FOR INJURIES TO CHURCH

Jesuit Fr. Kurt-Peter Gumpel (National Catholic Reporter Dec. 11) said in an
interview with the Vienna-based Der Standard, which appeared November 23,
that: "It is a historical fact that many of the Bolsheviks who persecuted the Catholic
church as well as the orthodox church in Russia were Jews. That is the simple
truth." He further stated: "If you've read the Talmud, as I have, you know that it says
the most hateful things about Jesus and Our Lady, suggesting that she was a
public woman, an adulteress." Gerhard Bodendorfer, the head of the coordinating
body for Christian-Jewish cooperation in Austria, said: "I am amazed that an official
collaborator in a highly responsible Vatican position could hold these old,
obviously undistilled prejudices that are still hawked today." Gumpel, who is
Jewish, said the Communist Manifesto had Jewish origins and that 80% of the
original (1917) Soviet regime was Jewish.

PRIME MINISTER NETANYAHU WANTS PALESTINIANS TO TEACH THEIR

CHILDREN THAT ISRAEL IS HERE TO STAY

Benjamin Netanyahu accused the Palestinians of not honoring their promises (Fox
News Dec. 13): "The Palestinians, especially in the last month, have basically
reneged on all the promises they gave us . . . " He detailed what is expected of
them: "(W)e have all these outstanding things they are supposed to do: collect
illegal weapons, reduce the size of their armed forces and especially stop the
fomenting of violence." The close relationship to the U.S. was described: "The
United States and Israel are kindred spirits. We're sister democracies and we have
so much in common in our values and approach to society and life. And obviously
the United States is our great ally."

Netanyahu gave his vision of the future, which includes education: "We want to see
the Palestinian leadership do something that they haven't done really since this
conflict between us and the Palestinians erupted in the 1920s. For the first time
after nearly eighty years of conflict, I want them to unmistakeably stand up and stop
the campaign against Israel. Not only be tearing up that covenant, which I hope they
will do tommorrow, but by backing it up with a forceful action against those who
would destroy Israel, the terrorist organization, the terrorist infrastructure, to collect
those illegal weapons, and to tell their kids, in their educational system, in their
schools, Israel is here to stay. We'll make peace with Israel, not because it is strong,
not because it will fight to defend itself, but because it is right. Because in the small
space between the Jordan River and the sea, this tiny land, there are two peoples
who will have to learn to live side-by-side. And when I see that happen, then I will
know that we have peace . . . I said to the President today, you know when there's
real peace here? When Israelis can walk into Gaza. Right now it's virtually a death
sentence. No Israeli is doing it for fear of their lives. But Palestinians walk freely on
the streets of Israel . . . I would like to see a change of heart brought about by a
change in conduct of the Palestinian leadership that teaches their people that peace
is not ephermeral, it is not a tactical thing, that you sign in order to get things from
Israel so you can attack Israel at a later date. Peace is peace and it's here to stay.
That's what I want to see and that's what I dream about. That's what I am working
for."

In a three-way "trilateral" summit (Reuters Dec. 15), President Clinton was unable to
convince Netanyahu to withdraw on schedule from more of the West Bank. He
said: "I have achieved what I came here to achieve." The Israeli Prime Minister
stated(CNN Dec. 14): "I think the Americans are wise enough to understand that no
amount of pressure can force Israel to relinquish its capital, Jerusalem, that no
amount of pressure will force us to release terrorist murderers . . . " Netanyahu's
office published a "breach list" of 12 violations or unfulfilled commitments which
included not declaring an independent state unilaterally, accepting Israel's criteria
for the release of prisoners, confiscation of illegal weapons, cutting the size of the
Palestinian police force, clamping down on anti-Israel incitement and curbing of
violence. Tuesday a joint steering committee met in Jerusalem to consider several
issues -- including weapon confiscations. Clinton was sharply rebuked (AP Dec. 15)
by Netanyahu for his comments about the plight of children of jailed Palestinians.
Of the 1,700 Palestinians jailed by the Israelis, 250 were released last month --
mostly common thieves according to some. Clinton did succeed in getting the
assembled Palestinians to raise their hands (rather than vote) in favor of eliminating
anti-Israeli clauses in the PLO covenant. The crowd cheered (Reuters Dec. 14) when
he said that peace had to involve "legitimate rights for Palestinians" but went mute
when he called for "real security for Israel." After the show of hands, Clinton
stated (News Hour PBS Dec. 14): "I thank you for your rejection, fully, finally and
forever, of the passages in the Palestinian charter calling for the destruction of
Israel." Israeli Political Commentator Be'ev Chafets said that in return for a dead
covenant, Arafat got (CNN Dec. 14) "a virtual American declaration of support for
Palestinian sovereignty. It would say that's one of the best deals since the Indians
sold Manhattan."

Andrew Young (CFR/TC) once lost his job as UN Ambassador after meeting with
PLO representatives in New York. In 1993, when Yitzhak Rabin (33rd M) shook
Arafat's hand, at the White House meeting to seal the Oslo accords, it (Austin
American- Statesman Dec. 13) became acceptable for American to meet openly with
the PLO. Efraim Inbar, an Israeli political scientist, said it was the Israelis who gave
Arafat his "kosher certificate."

Yitzak Rabin once said that the Palestinians could crush terrorist groups much
easier than Israel because they had no supreme court and no human-rights
watchdogs. Some 150 supporters of Arafat's political opposition (Financial Times
Oct 21) have been rounded up after tips from the Israelis. The Palestinian police
have locked up dozens of suspects, often from their homes, to face midnight trials,
without being allowed to see a lawyer. When asked about the Palestinian effort to
collect Arab guns (New York Times Dec. 12), Albright stated: "Well. that process
has begun, and it needs to continue. And I'm not going to characterize our level of
contentment at the moment."
Clinton and Arafat, with wives in tow, toured Bethlehem together where the
president hung an ornament on a Christmas tree (Reuters Dec. 15). Hanan Ashrawi,
a PNC Member, said (CNN Dec. 14): "It was a mission impossible from the
beginning because Netanyahu and the Israeli government had no intention of
compliance." Leslie Susser, another Israeli Political Analyst, said (CNN Dec.
14): "All situations for Mr. Netanyehu are adversarial and there is only one winner."

Martin Woollacott (World Press Review January 1999) wrote on November 1: "The
essence of the Israeli position has been to demand security guarantees so tight that
they cannot be fulfilled. However hard he tries . . . Arafat cannot give Israel total
security against every suicide bomber and every extremist group." He added: "As
violations almost inevitably occur, they will provide Netanyahu with opportunities
to denounce the Palestinians and suspend any territorial transfers or to take an
even harder line in the negotiations over the final status of the Palestinian
entity." Woollacott predicted: "The state that might emerge at the end of a process
dominated by Netanyahu and Sharon would indeed be a woeful thing."

President Clinton first visited Israel in the 1980s (U.S. News Dec. 14) with the Rev.
W.O. Vaught. The latter told Clinton: "If you abandon Israel, God will never forgive
you." It was Clinton's 4th Middle East trip as president and served to strengthen his
bonds with the Jewish voters back home. Although Jews are 3% of the total U.S.
population, they accounted for 12% of the vote last month in New York, 9% in
Illinois and 4% in California. A senior White House official was quoted: "Any serious
presidential candidate has to have a policy towards Israel and a relationship with
key actors" there.

On PBS, in a story entitled "Where Is Wye?" the guests interviewed by Phil Ponce
were Robert Barry Satloff (CFR), Executive Director of the Washington Institute for
Near East Policy and Rashid Khalidi, Professor of Middle East History and Director
of the Center for International Studies, University of Chicago. Satloff had just
returned from a visit to Israel, Garza and the West Bank. He met with a senior
member of Hamas that was not in jail and was disappointed to learn that not one
Hamas organization had been shut down and that no complaints were being made
about Arafat. No crackdowns are yet being made on the terrorist infrastructure.
Kahlidi said that the Hamas organization provides help to kindergartens, schools,
nurseries and so forth. Hamas does many important social things that the Israelis
are trying to shut-down. He said that Israel had "superior power" at the Wye
conference. Despite the agreement that there be no changes in the status quo,
Israeli has roared ahead with expansion of settlements, confiscating land and
building bypass roads. While Israel is complaining about Palestinian statements,
the Palestinians are protesting, in vain, against Israeli actions that have, in the past
six to seven years, caused massive changes on the ground. While Clinton's visit
gave the Palestinians an "emotional boost" that will last a few days, they ultimately
face disappointment on the things that really matter in the long run.
Frank Sesno (CFR) filled-in for Wolf Blitzer (CNN Dec. 15) while Blitzer was on his
way back from covering Clinton in Israel. His guests included Richard "Dick"
Andrew Gephardt (CFR). Blitzer said that Clinton was the only outsider who could
keep the peace process going and that Clinton would be available all day when he
got back to the White House if House members wanted to talk with him about
impeachment.

When the Wye accords were being negotiated (Edward Said World Press Review
January 1999), the U.S. press "reported the proceedings with a flagrant disregard of
the facts. No one bothered to point out . . . that no Jewish settlements are to be
given up, or that land supposedly being given to Palestinian leader Yasser Arafat's
corrupt Palestinian Authority was broken down into bits and pieces, all of it subject
to Israel's choice of date and location . . . the Palestinian areas are for the most part
non-contiguous and all no free passage between them. Of course, Jerusalem
remains off-limits to residents of Gaza and the West Bank." The relationship was
described: "The Israelis will continue to be the masters, the Palestinians the abject
slaves."

Thousands of Palestinians changed their pro-U.S. tune (AP Dec. 17th) and chanted
"Death to Clinton."

Clinton said (New Hour PBS Dec. 15): "We believe in keeping to these (Wye)
schedules as much as possible."

FULL TEXT OF THE WYE RIVER ACCORD

I. FURTHER REDEPLOYMENTS

A. Phase One and Two Further Redeployments

1. Pursuant to the Interim Agreement and subsequent agreements, the Israeli side's
implementation of the first and second F.R.D. will consist of the transfer to the
Palestinian side of 13% from Area C as follows:

1% to Area (A) 12% to Area (B)

The Palestinian side has informed that it will allocate an area/areas amounting to
3% from the above Area (B) to be designated as Green Areas and/or Nature
Reserves. The Palestinian side has further informed that they will act according to
the established scientific standards, and that therefore there will be no changes in
the status of these areas, without prejudice to the rights of the existing inhabitants
in these areas including Bedouins; while these standards do not allow new
construction in these areas, existing roads and buildings may be maintained.

The Israeli side will retain in these Green Areas/Nature Reserves the overriding
security responsibility for the purpose of protecting Israelis and confronting the
threat of terrorism. Activities and movements of the Palestinian Police forces may
be carried out after coordination and confirmation; the Israeli side will respond to
such requests expeditiously.

2. As part of the foregoing implementation of the first and second F.R.D., 14.2%
from Area (B) will become Area (A).

B. Third Phase of Further Redeployments

With regard to the terms of the Interim Agreement and of Secretary Christopher's
letters to the two sides of January 17, 1997 relating to the further redeployment
process, there will be a committee to address this question. The United States will
be briefed regularly.

II. SECURITY

In the provisions on security arrangements of the Interim Agreement, the

Palestinian side agreed to take all measures necessary in order to prevent acts of
terrorism, crime and hostilities directed against the Israeli side, against individuals
falling under the Israeli side's authority and against their property, just as the Israeli
side agreed to take all measures necessary in order to prevent acts of terrorism,
crime and hostilities directed against the Palestinian side, against individuals
falling under the Palestinian side's authority and against their property. The two
sides also agreed to take legal measures against offenders within their jurisdiction
and to prevent incitement against each other by any organizations, groups or
individuals within their jurisdiction.

Both sides recognize that it is in their vital interests to combat terrorism and fight
violence in accordance with Annex I of the Interim Agreement and the Note for the
Record. They also recognize that the struggle against terror and violence must be
comprehensive in that it deals with terrorists, the terror support structure, and the
environment conducive to the support of terror. It must be continuous and constant
over a long-term, in that there can be no pauses in the work against terrorists and
their structure. It must be cooperative in that no effort can be fully effective without
Israeli-Palestinian cooperation and the continuous exchange of information,
concepts, and actions.

Pursuant to the prior agreements, the Palestinian side's implementation of its

responsibilities for security, security cooperation, and other issues will be as
detailed below during the time periods specified in the attached time line:

A. Security Actions

1. Outlawing and Combating Terrorist Organizations

(a) The Palestinian side will make known its policy of zero tolerance for terror and
violence against both sides.

(b) A work plan developed by the Palestinian side will be shared with the U.S. and
thereafter implementation will begin immediately to ensure the systematic and
effective combat of terrorist organizations and their infrastructure.

(c) In addition to the bilateral Israeli-Palestinian security cooperation, a U.S.-

Palestinian committee will meet biweekly to review the steps being taken to
eliminate terrorists calls and the support structure that plans, finances, supplies
and abets terror. In these meetings, the Palestinian side will inform the U.S. fully of
the actions it has taken to outlaw all organizations (or wings of organizations, as
appropriate) of a military, terrorist or violent character and their support structure
and to prevent them from operating in area under its jurisdiction.

(d) The Palestinian side will apprehend the specific individuals suspected of
perpetrating acts of violence and terror for the purpose of further investigation, and
prosecution and punishment of all persons involved in acts of violence and terror.

(e) A U.S.-Palestinian committee will meet to review and evaluate information

pertinent to the decisions on prosecution, punishment or other legal measures
which affect the status of individuals suspected of abetting or perpetrating acts of
violence and terror.

2. Prohibiting Illegal Weapons

(a) The Palestinian side will ensure an effective legal framework is in place to
criminalize, in conformity with the prior agreements, any importation,
manufacturing or unlicensed sale, acquisition or possession of firearms,
ammunition or weapons in areas under Palestinian jurisdiction.

(b) In addition, the Palestinian side will establish and vigorously and continuously
implement a systematic program for the collection and appropriate handling of all
such illegal items it accordance with the prior agreements. The U.S. has agreed to
assist in carrying out this program.

(c) A U.S.-Palestinian-Israeli committee will be established to assist and enhance

cooperation in preventing the smuggling or other unauthorized introduction of
weapons or explosive materials into areas under Palestinian jurisdiction.

3. Prevention Incitement

(a) Drawing on relevant international practice and pursuant to Article XXII (1) of the
Interim Agreement and the Note for the Record, the Palestinian side will issue a
decree prohibiting all forms of incitement to violence or terror, and establishing
mechanisms for acting systematically against all expressions or threats of violence
or terror. This decree will be comparable to the existing Israeli legislation which
deals with the same subject.

(b) A U.S.-Palestinian-Israeli committee will meet on a regular basis to monitor

cases of possible incitement to violence or terror and to make recommendations
and reports on how to prevent such incitement. The Israeli, Palestinian and U.S.
sides will each appoint a media, specialist, a law enforcement representative, an
educational specialist and a current or former elected official to the committee.

B. Security Cooperation

The two sides agree that their security cooperation will be based on a spirit of
partnership and will include, among other things, the following steps:

1. Bilateral Cooperation

There will be full bilateral security cooperation between the two sides which will be
continuous, intensive and comprehensive.

2. Forensic Cooperation

There will be an exchange of forensic expertise, training, and other assistance.

3. Trilateral Committee

In addition to the bilateral Israeli-Palestinian security cooperation, a high-ranking

U.S.-Palestinian-Israeli committee will meet as required and not less than biweekly
to assess current threats, deal with any impediments to effective security
cooperation and coordination and address the steps being taken to combat terror
and terrorist organizations. The committee will also serve as a forum to address the
issue of external support for terror. In these meetings, the Palestinian side will fully
inform the members of the committee of the results of its investigations concerning
terrorist suspects already in custody and the participants will exchange additional
relevant information. The committee will report regularly to the leaders of the two
sides on the status of cooperation, the results of the meetings and its
recommendations.

C. Other Issues

(a) The Palestinian side will provide a list of its policemen to the Israeli side in
conformity with the prior agreements.

(b) Should the Palestinian side request technical assistance, the U.S. has indicated
its willingness to help meet those needs in cooperation with other donors.

(c) The Monitoring and Steering Committee will, as part of its functions, monitor the
implementation of this provision and brief the U.S.
2. PLO Charter

The Executive Committee of the Palestine Liberation Organization and the

Palestinian Central Council will reaffirm the letter of 22 January 1998 from PLO
Chairman Yasir Arafat to President Clinton concerning the nullification of the
Palestinian National Charter provisions that are inconsistent with the letters
exchanged between the PLO and the Government of Israel on 9-10 September 1993.
PLO Chairman Arafat, the Speaker of the Palestine National Council, and the
Speaker of the Palestinian Council will invite the members of the PNC, as well as
the members of the Central Council, the Council, and the Palestinian Heads of
Ministries to a meeting to be addressed by President Clinton to reaffirm their
support for the peace process and the aforementioned decisions of the Executive
Committee and the Central Council.

3. Legal Assistance in Criminal Matters

Among other forms of legal assistance in criminal matters, the requests for arrest
and transfer of suspects and defendants pursuant to Article II (7) of Annex IV of the
Interim Agreement will be submitted (or resubmitted) through the mechanism of the
Joint Israeli-Palestinian Legal Committee and will be responded to in conformity
with Article II (7) (f) of Annex IV of the Interim Agreement within the 12 week period.
Requests submitted after the eighth week will be responded to in conformity with
Article II (7) (f) within four weeks of their submission. The United States has been
requested by the sides to report on a regular basis on the stops being taken to
respond to the above requests.

4. Human Rights and the Rule of Law

Pursuant to Article XI (1) of Annex I of the Interim Agreement, and without

derogating from the above, the Palestinian Police will exercise powers and
responsibilities to implement this Memorandum with due regard to internationally
accepted norms of human rights and the rule of law, and will be guided by the need
to protect the public, respect human dignity, and avoid harassment.

III. INTERIM COMMITTEES AND ECONOMIC ISSUES

1. The Israeli and Palestinian sides reaffirm their commitment to enhancing their
relationship and agree on the need actively to promote economic development in
the West Bank and Gaza. In this regard, the parties agree to continue or to
reactivate all standing committees established by the Interim Agreement, including
the Monitoring and Steering Committee, the Joint Economic Committee (JEC), the
Civil Affairs Committee (CAC), the Legal Committee, and the Standing Cooperation
Committee.

2. The Israeli and Palestinian sides have agreed on arrangements which will permit
the timely opening of the Gaza Industrial Estate. They also have concluded a
"Protocol Regarding the Establishment and Operation of the International Airport in
the Gaza Strip During the Interim Period."

3. Both sides will renew negotiations on Safe Passage immediately. As regards the
southern route, the sides will make best efforts to conclude the agreement within a
week of the entry into force of this Memorandum. Operation of the southern route
will start as soon as possible thereafter. As regards the northern route, negotiations
will continue with the goal of reaching agreement as soon as possible.
Implementation will take place expeditiously thereafter.

4. The Israeli and Palestinian sides acknowledge the great importance of the Port of
Gaza for the development of the Palestinian economy, and the expansion of
Palestinian trade. They commit themselves to proceeding without delay to conclude
an agreement to allow the construction and operation of the port in accordance
with the prior agreements. The Israeli-Palestinian Committee will reactivate its work
immediately with a goal of concluding the protocol within 60 days, which will allow
commencement of the construction of the port.

5. The two sides recognize that unresolved legal issues adversely affect the
relationship between the two peoples. They therefore will accelerate efforts through
the Legal Committee to address outstanding legal issues and to implement
solutions to these issues in the shortest possible period. The Palestinian side will
provide to the Israeli side copies of all of its laws in effect.

6. The Israeli and Palestinian sides also will launch a strategic economic dialogue
to enhance their economic relationship. They will establish within the framework of
the JEC an Ad Hoc Committee for this purpose. The committee will review the
following four issues: (1) Israeli purchase taxes; (2) cooperation in combating
vehicle theft; (3) dealing with unpaid Palestinian debts; and (4) the impact of Israeli
standards as barriers to trade and the expansion of the A1 and A2 lists. The
committee will submit an interim report within three weeks of the entry into force of
this Memorandum, and within six weeks will submit its conclusions and
recommendations to be implemented.

7. The two sides agree on the importance of continued international donor

assistance to facilitate implementation by both sides of agreements reached. They
also recognize the need for enhanced donor support for economic development in
the West Bank and Gaza. They agree to jointly approach the donor community to
organize a Ministerial Conference before the end of 1998 to seek pledges for
enhanced levels of assistance.

IV. PERMANENT STATUS NEGOTIATIONS

The two sides will immediately resume permanent status negotiations on an

accelerated basis and will make a determined effort to achieve the mutual goal of
reaching an agreement by May 4, 1999. The negotiations will be continuous and
without interruption. The United States has expressed its willingness to facilitate
these negotiations.

V. UNILATERAL ACTIONS

Recognizing the necessity to create a positive environment for the negotiations,

neither side shall initiate or take any step that will change the status of the West
Bank and the Gaza Strip in accordance with the Interim Agreement.

ATTACHMENT: Time Line

This Memorandum will enter into force ten days from the date of signature.

Done at Washington, DC this 23rd day of October 1998.

For the Government of the State of Israel

For the PLO

Witnessed by: The United States of America

TIME LINE

Note: Parenthetical references below are to paragraphs in "The Wye River

Memorandum" to which this time line is an integral attachment. Topics not included
in the time line follow the schedule provided for in the text of the memorandum.

1. Upon Entry into Force of the Memorandum:

-- Third further redeployment committee starts (I (B))

-- Palestinian security work plan shared with the U.S. (II (A)(1)(b))

-- Full bilateral security cooperation (II (B)(1))

-- Trilateral security cooperation committee starts (II (B)(3))

-- Interim committees resume and continue; Ad Hoc Economic Committee starts (III)

-- Accelerated permanent status negotiations start (IV)

2. Entry into Force - Week 2:

-- Security work plan implementation begins (II (A)(1)(b)); (II (A)(1)(c)) committee
starts
-- Illegal weapons framework in place (II (A)(2)(a)); Palestinian implementation
report (II (A)(2)(b);

-- Anti-incitement committee starts (II (A)(3)(b)); decree issued (II (A)(3)(a))

-- PLO Executive Committee reaffirms Charter letter (II (C)(2))

-- Stage 1 of F.R.D. implementation: 2% C to B, 7.1% B to A. Israeli officials acquaint

their Palestinian counterparts as required with areas; F.R.D. carried out; report on
F.R.D. implementation (I(A))

3. Week 2-6:

-- Palestinian Central Council reaffirms Charter letter (weeks two to four) (II (C)(2))

-- PNC and other PLO organizations reaffirm Charter letter (weeks four to six) (II
(C)(2))

-- Establishment of weapons collection program (II (A)(2)(b)) and collection stage (II
(A)(2)(c)); committee starts and reports an activities

-- Anti-incitement committee report (II (A)(3)(b))

-- Ad Hoc Economic Committee: interim report at week three; final report at week
six (III)

-- Policemen list (II (C)(1)(a)), Monitoring and Steering Committee review starts (II
(C)(1)(c))

-- Stage 2 of F.R.D. implementation: 5% C to B. Israeli officials acquaint their

Palestinian counterparts as required with areas; F.R.D. carried out; report on F.R.D.
implementation (I (A))

4. Week 6-12:

-- Weapons collection stage (II (A)(2)(b)); (II (A)(2)(c)) committee report on its
activities.

-- Anti-Incitement committees report (II (A)(3)(b))

-- Monitoring and Steering Committee briefs U.S. on policemen list (II (C)(1)(c))

-- Stage 3 of F.R.D. implementation: 5% C to B, 1% C to A, 7.1% B to A -- Israeli

officials acquaint Palestinian counterparts as required with areas; F.R.D. carried
out; report on F.R.D. implementation (I (A))
5. After Week 12:

Activities described in the Memorandum continue as appropriate and if necessary,

including;

-- Trilateral security cooperation committee (II (B)(3))

-- (II (A)(1)(c)) committee

-- (II (A)(1)(e)) committee

-- Anti-incitement committee (II (A)(3)(b))

-- Third Phase F.R.D. Committee (I (B))

-- Interim Committees (III)

-- Accelerated permanent status negotiations (IV)

CHINA NEWS THIS WEEK: TRADE BALANCE WITH U.S., TOUGH TAX
COLLECTORS AND NO OPPOSITION PARTY

David L. Aaron (CFR), Undersecretary of Commerce, told a think-tank in

Washington on Monday about the U.S. and China: "It may well be that trade is the
most disturbing factor in the relationship." China has a projected $60 billion edge in
its trading with the U.S. (AP Dec. 15). China is enforcing stiff penalties (Reuters Dec.
15) for tax evasion that include the death penalty. Vice Premier Li Lanqing was
quoted Tuesday by a German financial newspaper that tax officials "should have an
iron face, an iron heart and an iron hand." In China collected taxes amount to
almost 11% of its GNP. Robert Murdock, who fell from grace in 1993 after saying
satellite TV and modern communications posed an "unambiguous threat to
totalitarian regimes everywhere," is now back in good graces with the Chinese
(Financial Times Dec. 12-13). The CEO and Chairman of News Corporation had a
one-hour meeting with President Zemin with resulting front-page smiling coverage
in the China Daily newspaper. Murdock's HarperCollins publishing group, earlier
this year, dropped its plans to publish a book by Chris Patten, the last UK governor
of Hong Kong. China put two opposition leaders on trial Thursday (Austin
American-Statesman Dec. 18) on charges of subversion that could bring life
sentences. Wang Youcai and Qin Yongmin were not allowed lawyers for their quick,
closed two-and-a-half hour trials. More than thirty individuals have been detained or
questioned in an 18-day crackdown. China's President Ziang Zemin said Friday
(Austin American-Statesman Dec. 19) that those who challenge the Communist
Party's political monopoly will be quashed: "The western mode of political systems
must never be copied." Xu Wenli will stand trial on Monday.
JAPAN: ABOUT TO BE FORECLOSED ON BY INTERNATIONAL BANKERS?

Japan's corporate bankruptcies fell 4.6% in November (AP Dec. 14) as compared to
a year earlier. The first drop in 18 months came as a quarter business survey
showed business confidence at a record low. Arthur Alexander, President of the
Japan Economic Institute, said that the combination of reduced consumption and
weak investment was causing a stalling economy. Banking regulators (Moneyline
Dec. 14) seized The Nippon Credit Bank Ltd. which has been insolvent since March
with $30 billion in bad loans. Richard Jerram, Chief Economist with ING Barings,
Japan, saw this as a positive development (Moneyline Dec. 14). Several Japanese
banks (AP Dec. 18) may sue the Minister of Finance for hiding the size of bad loans
at Nippon Credit Bank Ltd. They are among the 34 finance companies that loaned
Nippon $1.8 billion last year in a ministry-orchestrated rescue. Nippon will be
nationalized which will give the finance companies little chance to recover their
loans. High tariffs on rice will begin in April (AP Dec. 17). Thomas S. Foley
(BB/CFR/TC), former Speaker of the U.S. House and now U.S. Ambassador to
Japan, said the tariff could "cripple" exports of U.S. rice. The Japanese responded
that the tariff conforms to W.T.O. regulations. Japan now imports 6.4% of its annual
rice consumption.

ALSO IN THE NEWS

On PBS William Frank Buckley, Jr. (BB/CFR/S&B 1950) debated

impeachment (News Hour PBS Dec. 14). James A. Baker III (CFR) was interviewed
on Moneyline Dec. 15.

Gorby follower Ted Turner (M) made a speech to the Society of Environmental
Journalists in Atlanta in which (New American Dec. 7) he distinguished between "a
well-organized bunch of smart people or (the) disorganized dumb . . . " He said the
Judeo-Christian religion was "not . . environmentally friendly . . . "

When the social security fund of about $99 billion is excluded (New American Dec.
21) the overall budget deficit is around $28 billion.

Senator William V. Roth, Jr. (CFR/TC), President of the American Assembly, has
issued a report, NATO In the 20th Century, urging the alliance to update its strategic
concept by expanding its area of operations and claiming the authority to act
without specific authority from the UN.

The David and Lucille Packard Foundation, the third largest tax-exempt foundation
in the U.S., with assets of $9 billion, announced in November (New American Dec.
21) a grant of $333 million for international population control and "reproductive
health" programs.

Israel now has (AP Dec. 17) an operational Arrow anti-missile radar system
named "Green Pine" that is capable of tracking a ballistic missile in flight, and an
Israeli satellite called Amos.
Clinton will make another try (Austin American-Statesman Dec. 13) for some $20
billion for child care. Bruce Reed, Clinton's domestic policy adviser, said: "We're
not going to just drop the subject."

At least eight members of the New Labor government in England (New American
Dec. 21) are homosexuals. The Sun, Britain's most popular newspaper, has
editorialized that Britain is being run by a "cabal" of homosexuals.

Ehud Barak, Israeli opposition Labor leader, accused Netanyahu on Thursday

(Reuters Dec. 17) of caving in to right-wing extremists. Barak is Israel's most
decorated soldier and was once Netanyahu's army commander.

Goldman Sachs, despite an 81% decline in quarterly earnings (Moneyline Dec. 14),
still plans to go public.

Mexico is providing debt relief (Austin American-Statesman Dec. 18) to include a

discount of up to 60% for fisheries and farmers.

On Friday the Protestant Loyalist Volunteer Force (LVF) began (Reuters Dec. 18)
turning in its weapons over to an international commission (AP Dec. 18) for
grinding. The IRA has said it has no intention of disarming immediately.

Boston is now requiring city police officers to use gun locks (Austin American-
Statesman Dec. 16).

QUOTES

"So valuable is that edge that to play the market we cede our trust to connivers, our
legal rights to a system that denies us those rights, and our moral authority to
those who with a wink and a nudge invite us to join their scam. If we get burned,
well, hell, it was our own fault for reaching." -- Ted C. Fishman (Harpers Dec. 1998)

"If Jesus Christ had taken a poll, he would never have preached the gospel" --
Henry Hyde (CFR), ABC News Dec. 13

"When a society is perishing, the true advice to give those who would restore it is
to recall it to the principles from which it sprang." -- Pope Leo XIII, Encyclical on
Labor, Paul Harvey, AUTUMN OF LIBERTY 13 (1954).

"People will not look forward to posterity who never look backwards to their
ancestors." -- Edmund Burke [William P. Hoar, ARCHITECTS OF CONSPIRACY x
(1984)]

"The handsomest pictures in the history of individuals are the pictures of those
who have stood out independent of government,-- individuals who made such
replies as that historic reply of two recalcitrant subjects to whom the king said, "Do
you know that I can hang you?' 'Aye,' they replied, 'and we can die cursing you.' We
should crave the spirit that will not be subdued: only under the government of
unsubduable individual spirits can shall we return to the great days of Jefferson." --
Woodrow Wilson (April 16, 1906)

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

VOL. 1. NO. 7. (to December 13, 1998).

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar

TC=Trilateralist

GEORGE W. BUSH MAY FACE YALE CHRISTIAN CONSERVATIVE OPPONENT

A presidential poll (CNN Inside Politics Dec. 7) showed George Walker Bush (S&B 1968) with
58% of the vote compared to 38% for Democrat Bill Bradley. U.S. Senator John Ashcroft, (R-
Missouri) a staunch Christian conservative, may be the first Republican to enter the 2000
presidential race (Reuters Dec. 8). Ashcroft, who is a 1964 Yale graduate, was once rated
by Fortune Magazine as one of the nation's top ten education governors. He stated on August
26th that he wants an America"where we pay off our debts and keep our word.." He favors
ending the unfair tax penalty on marriage, a reduction of taxes and a new tax code with a 10
percent rate for most Americans. In September he introduced the Equal Access Improvement
Act to prevent the denial of access to school facilities for student prayer groups. He
questioned, in April 1997, granting most favored nation (MFN) status as well as entrance into
the World Trade Organization for Communist China. He has said on the subject of
sovereignty: "America ought not surrender her way of life to a bunch of faceless functionaires
at the United Nations." Political experts are saying that a minimum of $20 million will be
needed for a viable campaign.

A column by John Young, writer for the the Waco Tribune-Herald, suggested that Bush stay
away from "ill-chosen" comments on his religion (Austin American-Statesman Dec. 10). He
advised Bush: "Should he run for president and be asked to clarify his beliefs on heaven and
hell for the benefit of the Christian Coalition, he should suggest that it polish up on its
Yiddish." Bush press secretary Karen Hughes has said: "Judgments about heaven and hell do
not belong to the realm of politics or of this world. They belong to a higher authority."

The Skull and Bones story is for the moment largely unknown. At one time Hoover scholar
Antony C. Sutton was hot on the trail of Skull and Bones. He wrote America's Secret
Establishment that was published in 1986. Repeatedly he said that in his future books he
would dig further into various subjects--including the Bavarian Illuminati. For still unknown
reasons, the trail went totally cold. Sutton went on to other subjects.

WHO SILENCED DAVID ARMSTRONG?

Real politics is largely played behind the scenes where the general public cannot see. The
average citizen is heavily dependent on reporters who are believed to be paid by their
courageous publishers to dig deep. In Texas, the populist Texas Observer is the most
outstanding, hard-hitting regular magazine that can be relied upon to take on Republicans. It
hired an outstanding research journalist named David Armstrong as editor. His name first
appeared on the masthead on March 22, 1991. A story about new kids on the block proudly
gave a resume for the new editor. In a matter of months, after writing several articles digging
very deeply into the Bush family, he was suddenly dropped from the masthead without
explanation.

On April 5, 1991, Armstrong contributed an article entitled: "The Great S&L Robbery:
Spookbuster Pete Brewton Tells All," p. 1 Texas Observer, July 12, 1991 (12-5). July 26, 1991---
Article by Armstrong: "Oil in the Family." On September 20, 1991 still another article was
titled: "Global Entanglements." It had a cartoon of future governor Bush with Harken on his
head and CIA agents (spies) all around him. There was a front page octopus cartoon.

The last masthead appearance of David Armstrong was November 29, 1991. His article was
titled: "Pre-emptive Journalism." He began with a quote by Herbert Shiller: "One especially
effective and longstanding means of keeping the social order undisturbed is to undermine
criticism before it had an opportunity to emerge and circulate in the national arena."
Armstrong deplored this trend towards pre-emptive journalism: "Mainstream media have
never demonstrated a keen interest in challenging the status quo. Contrary to the popular
image of an independent and adversarial press, U.S. corporate media are, in fact, little more
than lackeys for elite interests." Armstrong blasted criticism of Stone's JFK movie prior to the
scenes even being shot. Armstrong also noted the discrediting of a former Carter National
Security Advisor's book. Newsweek had called Gary Sick's book "a conspiracy theory run
wild." Armstrong criticised Time's Harken coverage as "half-measures."

His last Texas Observer words were: "Time's handling of the Harken story is just one more
example of the disturbing trend toward pre-emptive journalism. The consequences of this
practice are serious indeed, for it has the potential to not only diffuse and obscure
information, but to prevent it from ever being debated in the public arena at all. Unlike the
alternative press, mainstream sources are widely available and well indexed. For that reason,
they are widely cited and help shape official history. Twenty years from now when George W.
Bush is running for president, researchers and journalists interested in his business activities
in Texas will likely turn to Time magazine and other mainstream sources of their information.
But if they're interested in reading the whole story, they'll have to look elsewhere." As it
seems likely to turn out, Armstrong was only wrong about when GWB would run for president.
He may also have been one of the earliest writers to predict the eventual GWB presidential
campaign.

A FIRST MEAGRE LOOK AT THE SKULL AND BONES CLASSES OF 1968 AND 1969

The secretive Skull and Bones society now has a stalking horse for president in both the
Democratic and the Republic camps (Kerry and Bush). In 1968, Bush became one of 15 new
initiates into the Order of Skull and Bones. One perceptive observer wrote: "His resume looks
a lot like his father's: DKE and Skull and Bones at Yale, military pilot, Texas oilman." The
names and some very sketchy information on Governor Bush's fellow Bonesmen from the
Yale class of 1968 are as follows:

Roy Leslie Austin (S&B 1968)--Born 12-13-1939. St. Vicent's Island. Educator. Married Glynis
Sutherland. Ph.D. Washington University. Associate Professor of Sociology and Justice.
Robert Richard Birgen (S&B 1968)--Washington D.C. Lawyer. Married Joanne Schwiebert.
Director, CASE Center, Syracuse University

Christopher Walworth Brown (S&B 1968)--Born 1-15-1947. Lawyer. Married Amy Forbes Clark.
Tweedy, Brownes. New England Coordinator of the Carter presidential campaign and Seattle
Co-Chairman for George McGovern,

Kenneth Saul Cohen (S&B 1968)--Born 7-5-1946. Trenton, N.J. Dentist. Married Patricia Ann
Albert. Massachusetts Mutual Life Insurance Company. Yale Club of Georgia.

Rex William Cowdry (S&B 1968)--Born 2-12-1947. Des Moines, Iowa. MD. Married Donna E.
Patterson. Acting Director of the National Institute of Mental Health.

Donald Etra (S&B 1968)--Lawyer. Yale 1968 (BB Cell). B.A. Yale. J.D. Columbia University.
M.B.A. Columbia University. Member of the Bar, New York. Attorney to Ralph Nader
Washington (1971-1973). Co-Director of First National City Bank Task Force. Co-Author
Citibank (1974). U.S. Attorney, Dept of Justice (1978-1981). Now practices in Los Angeles. A
director of Russell Trust Association (the Bones Holding Company). Dear Island Treasurer
(1970-1972). Deer Island President (1972-1975). Single.

G. Gregory Gallico III (S&B 1968)--Born NYC. MD. Married Ellen Biggs Polly Levine. Boston
Shriners Plastic Surgeon.

Robert K. Gutherie--(S&B 1968)--Probably CIA. Lived in Alexandria, Virginia (1983). Married

Marion Adelheid Melliwigt. Director of Social and Economic Affairs, Council of Europe (a pan-
European organisation of 32 countries).

Britton Ward Kolar (S&B 1968)--Born 2-27-1946. Oak Park, Illinois. MD. Married Margaret
Louisa McMahan.

Robert Davis McCallum, Jr. (S&B 1968)--Born 1-30-1946. Memphis, Tenn. Lawyer.
Married Mary Rankin Weems.

Muhammad Ahmed Saleh (S&B 1968)--Born 10-10-1945 in Jerusalem. Vice-president of

Timex Corporation. Married Mary Soderstrom.

Thomas Carr Schmidt (S&B 1968)--Born 6-3-1945. Cinn., Ohio. Consultant. Married
Deborah Caroline Beaumont.

Donald Arthur Schollander (S&B 1968)--Born 4-30-1946. Charlotte, N.C. Real Estate
Developer. Married Penny Susan Stark. Financier. President of North Shores Development
Corp. (real estate). Member of board of directors of U.S. Olympic Committee (1970-1972).

Brinkley Stimpson Thorne (S&B 1968)--Born 8-13-1945. New York City. Architect. Married
Marie Cox. Partner, Metcalf and Thorne Architecture, owner and manager of Thorne Market (a
specialty retail mall and art center).

Before leaving Yale, Bush and his classmates tapped 15 more Bones members:

Robert E. Arres, Jr. (S&B 1969)--Born 2-22-1947. Industrialist. Married Karen Ann Koehler.
Michael Frederic Bouscaren (S&B 1969)--Born 4-7-1947. San Francisco, California.
Stockbroker. Married Edith Clark.

Charles Henry Buck III, S&B 1969)--Born 3-7-1946. Boston, Massachusetts. Businessman.
Married Cheryl Lynn Ezell.

Thomas Francis Cosgove, Jr. (S&B 1969)--Born 12-8-1946. Maldon, Massachusetts.

Insurance. Married Wendellyn Hilton.

Frank Edward Demares II (S&B 1969)--Born 2-4-1947. Chicago, Illinois.

Brian J. Dowling (S&B 1969)--Born 4-1-1947. Cleveland, Ohio. Sportsman. Married Betsy
Lampert.

Henry W. Fuller (S&B 1969)--Born 9-14-1946. York, Maine. Boatyard Operator in Nova Scotia.
Married Judith Rivmus.

Richard H.B. Livingston (S&B 1969)--Born 8-19-1947. Greenfield, Massachusetts. Vice-

President of Admiral Shipping Company. Married Elizabeth Dubben. Admiral Shipping and
Trading Co. Ltd. is at P.O. Box 5205, Ormond Beach, Florida 32176. Owns two ships. Admiral
One flys a flag of convenience: SVC. General cargo. Built 1965. Active. SV= St. Vincent.

B. Patrick Madden (S&B 1969)--Born 5-7-1947. Stubenville, Ohio. Banker. Married

Deborah Russell Whitlock. Bush appointed William B. Madden as Chairman of the Texas
Water Development Board on February 8, 1995. Madden has been President of Madden
Securities Corporation of Dallas since 1986. He has served as Vice-Chairman of the National
Association of Securities Dealers. He is also Chairman of the Board of Mercantile Bank and
Trust. A director of Pillow-tex Corp. Also a director of E.W. Blanch Holding (since April 1993).

Wentworth Earl Miller (S&B 1969)--Born 10-23-1947. Overlin, Ohio. Lawyer. Married Joy Marie
Palm.

John Joseph O'Leary (S&B 1969)--Born 1-16-1947. Philadelphia, Penn. Lawyer. Married
Patricia Cepeda.

Stephen Allen Schwarzman (S&B 1969)--Born 2-14-1947. Philadelphia, Penn. Managing

Director, Lehman Brothers. Married Ellen Philips. Co-founder, President and CEO of
Blackstone Group. David Stockman was a General Partner of the Blackstone Group in 1991.
Stephen Allen Schwartzman (S&B 1969), a managing director of Lehman Brothers, married
Ellen Philips. He is currently the President and CEO of the Blackstone Group which began in
1987. It became a subsidiary of AccuStaff, Inc. in October 1996. The Chairman and co-founder
of the Blackstone Group is Peter G. Peterson. He appeared on Moneyline on January 6, 1998.
Peter G. Peterson, a Class "C" director of the New York Federal Reserve Bank, has been
chairman of The Blackstone Group since 1985, following 11 years as chairman and chief
executive officer of the investment banking firm of Lehman Brothers, Kuhn, Loeb, Inc. He was
Secretary of Commerce in 1972 and 1973 after serving as Assistant to the President for
International Economic Affairs and Executive Director of the Council on Economic Policy in
1971 and 1972. He served under former M16 Chief Sir William Wiseman, is a member of the
Committee of 300 and has ties to the Aspen Institute. Prior to his government service, Mr.
Peterson was with Bell & Howell Company for 13 years, beginning as an executive vice
president and director and moving up to the CEO position of the company. He earned a
bachelor of science degree from Northwestern University and a master of business
administration degree from the University of Chicago. In addition, he has received honorary
doctorate degrees from a number of universities. Peterson is a director of Rockefeller Center
Properties, Inc.; Sony Corp. and Transtar Inc. He is former chairman of the board of the
Council on Foreign Relations and Institute for International Economies, President of The
Concord Coalition and a trustee of the Committee for Economic Development, the National
Bureau of Economic Research, and New York's Museum of Modern Art. He also is founding
member of the Bi-Partisan Budget Appeal.

Duane Arthur Selander (S&B 1969)--Born 12-2-1942. Oakland, Ca. Insurance Business. Married
Audrey Marie Zorna.

William McIlwaine Thompson, Jr. (S&B 1969)--Born 2-19-1947. New Haven, Conn.
Lawyer. Married Elsie Dunn Wilson.

Douglas Preston Woodlock (S&B 1969)--Born 2-27-1947. Hartford, Conn. Lawyer. U.S. Federal
District Judge (Boston) (Appointed 1986). Yale 1969 (Next Cell). Reporter Chicago-Sun Times
(1969-1973). Former Assistant U.S. Attorney (1979-1983). Married Patricia Powers.

Possible Gore challenger, John Forbes Kerry (CFR/S&B 1968), will play himself (CNN Inside
Politics Dec. 7) on NBC's "Lateline."

MAJOR AGREEMENTS MADE BETWEEN ENVIRONMENTALISTS, U.S. COMPANIES AND EVEN

THREE STATES

More than 20 U.S. companies (AP Dec. 8) (including IMB, Nike Inc., Kinko's Inc. and 3M Corp.)
have signed a pledge to eventually stop using old-growth wood. The Coastal Rainforest
Coalition made the announcement. Only 20% of the world's old-growth forests are left--only
5% in the United States. Many animals, birds and insects are sheltered by the virtually extinct
trees. Three states (New York, Vermont and New Hampshire) have joined with
environmentalists and investors (Austin American- Statesman Dec. 10) to place 300,000 acres
into a $76.2 million public-private conservation project. Still unsolved are mysterious murders
of Mexican Gray wolves (NBC News Dec. 10). Environmentalists and the Federal Government
have combined to offer a $50,000 reward which may come from turning in ranchers who feel
that the wolf repopulation is being pushed down their unwilling throats.

STADIUM IN NEW HAVEN SPOTLIGHTED AS "FLEECING OF AMERICA"

The New England Patriots (NBC News Dec. 10) will get a brand-new stadium that will cost $800
million (including interest) with tax-free bonds. Tom Brokaw (CFR) said it gives a whole new
meaning to the term "a very sweet deal." The Patriots will get free rent, 90% of ticket sales,
concession and parking revenue and a $15 million practice stadium. A Mr. Kraft will probably
clear $100 million from stadium revenue alone. There is also a Connecticut-guarantee of $17.5
million for empty seats that was negotiated in secret by Governor John Rollin who defends
the deal. Smith College economist Andrew Simbalist says the evidence of similar deals over
the past forty years shows there will be no positive "kick" to the local economy. NBC's Fred
Francis ended the piece by saying the deal was "an outrageous fleecing of America."

WALL STREET AND BANKERS SUPPORT IDEA OF PERSONAL ACCOUNTS

The public (Nightly Business Report Dec. 7) is split 50-50 on whether to privatise at least part
of Social Security. A poll (Nightly Business Report Dec. 7) showed that 77% think the stock
market is the best place to invest at this time. Only 12% said no while 11% had no opinion.
Wall Street and the nation's bankers (AP Dec. 7) are backing personal investment accounts as
part of any Social Security overhaul. The Securities Industry Association and the American
Bankers Association are two such groups. After inflation the stock market returns 7.5%
annually on the average (News Hour Dec. 10). The problem is said to be (CBS Dec. 8) that the
average person would not know how to invest in the stock market. [In a $3.5 trillion industry,
the average stock mutual fund is up 6.26% for the year-to-date compared to a 20% increase in
the S&P 500. It is the worst performance gap in recent memory (Moneyline Dec. 10). Ned Riley,
Chief Investment officer of BankBoston said that 96% of all equity mutual funds this year will
lag the S&P 500]. Fidelity Magellan Fund is up 25%, however. The worst performing funds for
the year-to-date: Lexington Troika Dialog Russia (-83%), American Heritage (-55%), Eaton
Vance Worldwide (-51%), Fidelity Select Energy Service (-50%) and Potomac OTC/Short (-
49%).

President Clinton (NBC News Dec. 8) supports a system that can be counted on "regardless of
the ups and downs of the economy or the markets." There are 44,208,600 social security
recipients. By the year 2032, the fund will only be able to pay 75% of present benefits. Three
options exist: 1) raise taxes, 2) cut benefits or 3) obtain a better return on payroll levies now
invested in government bonds. The market historically yields three times the return on
Treasury bonds. Plans may involve a government board with guidance from market experts or
some form of personal employee accounts. After the closed-door meeting, President Clinton
is leaning (Moneyline Dec. 9) towards some form of privatization. His advisor, Gene Sperling,
says (NBR Dec. 9) Americans must understand the advantages and disadvantages of such a
plan.

MEDIA STOCK AND SHOCK NEWS: NEW TUNES FOR BRONFMAN'S SEAGRAM AND
SPINOFF PROFIT FOR CBS

Media stocks on the increase for the year-to-date included (Moneyline Dec. 7) Time Warner
(+74%) and Viacom (+58%). CBS is up only 6% while Walt Disney is down 5%. William Bennett
and Sen. Joseph Lieberman (AP Dec. 8) gave CBS the second"Silver Sewer" award Monday
for its Dr. Kevorkian show and Howard Stern's "raunchy" TV show. The first award went to
Seagram Inc. for supporting Jerry Springer's talk show and shock-rocker Marilyn Manson.
While Seagram Co.'s stock has been trading lower (CBS Sunday Morning Dec. 6) since Edgar
Bronfman, Jr. took over, he has been given $6 million in bonuses over the last two years. His
father and uncle own 30% of Seagram. At the November 1997 annual meeting of the Seagram
Company Ltd., Edgar Bronfman Jr., described a "Reenergized" Company and planned "to
build shareholder value on a long-term basis." Seagram employs 30,000 people worldwide.
The Bronfman family (Mother Jones April 1996) is"traditionally Democratic and pro-
Israel." Seagram Co. (AP Dec. 11) is now the world's largest music company. It bought
Polygram NV and will cut about 3,000 of 15,500 employees. The $10 billion payout (Moneyline
Dec. 10) gives Universal Music Group 25% of the world's music business. Steven Cesinger,
Managing Director of Greif & Co., said the purchase was a classic hand-in-glove fit that would
eliminate "redundancies." Until 1995 Montreal-based Seagram was a liquor and beverage
company. In that year Edgar Bronfman, Jr. bought MCA (renamed Universal Studios).
Seagram is facing a $65 million loss in this quarter from its movie division. Seagram has had
$65 million (Moneyline Dec. 9) in box office flops. Universal is in the red. Bronfman, Jr. said
the music merger will provide $300 million (Moneyline Dec. 10) in cost savings as 3,000 (20%)
of the workforce are departed.

CBS raised $2.87 billion (AP Dec. 9) by selling off a 17% stake in its radio and outdoor
advertising business--Infinity Broadcasting. The IPO of 140 million shares was the third
largest ever and richest in the media industry so far. Infinity has 160 radio stations. The IPO
ranks behind Conoco Inc.'s $4.5 billion October issue and the Lucent Technologies spinoff for
$3 billlion. Last month News Corp did a $2.8 billion spinoff of the Fox Entertainment Group.
CBS will soon rank second in radio revenue as Chancellor Media Corp. completes its
purchase of Capstar Broadcasting Corp. Don Imus ("In the Morning") is one of Infinity's radio
programs. When it was announced the Mel Karmazin would replace Micheal Jordan as CEO,
CBS stock jumped 10% in a single day. CBS paid $3.9 billion for Infinity two years ago. It
is (Moneyline Dec. 9) now valued at $17 billion. Mel Karmazin is the #1 CBS
stockholder (Moneyline Dec. 9). Linda Killian, of the Renaissance Capital IPO Fund, said
Infinity was priced at a premium compared to others in its peer group (NBR Dec. 10). To buy
the stock, the investment must be long-term. Infinity owns TDI Worldwide which is one of the
biggest billboard advertisers in the U.S. Negative comment on the deal was hard to find on
Wall Street since some twenty-three firms underwrote the offering (NBR Dec. 10).

The largest IPOs lately (Moneyline Dec. 10) in billions: Conoco ($4.5), Lucent ($3), Infinity
($2.9), Fox ($2.8) and Allstate ($2.1) (according to Securities Data).

SUMMARY OF SOME WEEKLY INDICATORS

The Dow Jones Industrial Average (DJIA) is up 11.5% for the year (ABC News Dec. 11) but
down 194.38 this week (NBC News Dec. 11). The NASDAQ was up 26.15 points (NBC News
Dec. 11). Commodities (Wall Street Week PBS Dec. 4) are at an all-time 26-year low. The U.S.
economy has been expanding for 93 months in a row. Only one of the Federal Reserve
Districts (New York) expanded (Moneyline Dec. 9) in November. Mergers and acquisitions will
pick up in 1999. Royal Dutch Shell(Moneyline Dec. 9) may buy Chevron. The U.S. trade deficit
is up 8% (Moneyline Dec. 9) or $61.3 billion. TWA is buying 50 planes from Boeing for $1.5
billion (Moneyline Dec. 9). Gerald Gitzer, Chairman of Trans World Airlines, has brought
smiles to Boeing workers. The M-2 money supply (NBR Dec. 10) was down $2.5 billion for the
week ending November 30. Oil (CBS Sunday Morning Dec. 6) was about $19 a barrel a year
ago. It now is selling for $10. Food prices are up 2.5% while hog farmers(ABC News Dec. 11)
are having the worst year in five generations. Pork oversupply has been contributed to by
corporate hog farmers that are expected to be able to outlast family farmers. Meat packers are
able to dictate prices and retailers are upping their profits. Retail sales were up .6% in
November (ABC News Dec. 11). Profits for the S&P 500 were (NBR Dec. 11) 3.1% in the 3rd
quarter and 4.5% in the 4th.

EXPLANATION GIVEN FOR DOWN MARKETS LATELY

Joseph McAlinden of Morgan Stanley Dean Witter (Moneyline Dec. 10) said that in every third
month of every quarter for the last couple of years, companies have been reporting out bad
news early in the second or third week of the last month of the quarter. He termed it
corporate "confession." This causes the market to decline, but then, once the bad news is out
of the way, it then climbs again. Banks are pursuing monetary policies to reinflate fallen
commodity prices to help developing nations that are dependent upon making exports.
McAlinden predicted that energy sector stocks would go up by two or three-fold soon.
CENTRAL BANKS CUTTING INTEREST RATES

Gary D. Campbell, Chief Investment Officer for the Commerce Funds, who manages $8 billion,
said (Wall Street Week PBS Dec. 4) that since October there have been a total of 50 "monetary
easings" around the world. He foresees 7-8% earnings in 1999. His stock picks include T.J.
Macks and Ethan Allen.

CONSISTENT CONCENSUS OF NO DECEMBER 22ND RATE CUT BY FED

The street opinion seems clear not to expect a rate cut at the December 22 Federal Reserve
Board meeting. David Rosenberg, of Nesbitt Burns Securities, says the Fed may cut the rate to
as low as 3.5% in 1999 (Moneyline Dec. 9). The Bank of England (BOE) has cut interest rates
by .5% (Moneyline Dec. 10). John Makin, of the American Enterprise Institute, said (NBR Dec.
10) that the last three Fed cuts in the U.S. were aimed at Brazil but hit the S&P 500 which took
off like a rocket.

MERGER MANIA NEWS: BONDING OF BUSINESS TITANS

Mergers (McLaughlin Group PBS Dec. 6) are described as "Titans bonding." Some 20
takeovers between January and November 1998 totalled $874 billion (nearly 60% of the $1.5
trillion in mergers). 625,000 layoffs are expected to result. The Exxon Mobil merger
required (Wall Street Week PBS Dec. 4) $82 billion in stock and debt assumption. The merger
trend, according to Suzzane Pratt (Nightly Business Report Dec. 7), will continue
because "many of the pairings are all stock deals." Bruce Steinberg, Economist with Merrill
Lynch, who sees lots more mergers (Moneyline Dec. 9), said: "We have deflation." Coke (NBR
Dec. 11) is paying $2 billion to buy the beverage brands of Cadbury Schwepp.

CROSS BORDER TAKEOVERS EXPECTED TO INCREASE

Scottish Power (Moneyline Dec. 7), Scotland's largest utility, is doing a cross border takeover
of PacifiCorp to become the first overseas company to buy a big U.S. utility that has 7 million
customers. The price paid (AP Dec. 7) will be about $7.9 billion in stock and the assumption of
$4.9 billion in debt. Barry Abramson, Electric Utility Analyst for Painewebber, said (Nightly
Business Report Dec. 7) the deal was a "good fit" The company supplies service to one in five
UK households. Ian Robinson is CEO of Scottish Power. Ian Russell is CFO. It will likely be
registered as a holding company. Foreign purchases could soon cut the number of American
utilities in half if the trend continues. Thomas Burnett, Director of Merger Insight, said: "(I)t's a
global world now and cheap assets anywhere in the world are open to bidders from any . . .
source."

On September 9, 1997, Scottish Power plc announced it had selected The Bank of New York
as its depository for its sponsored American Depository Receipts (ADRs). Each ADR
represents four ordinary shares. The Bank of New York, founded in 1784 by Federalist
Alexander Hamilton and the nation's oldest bank operating under its original name, is the
largest depository for American and Global Depository Receipts which are described as
"facilities which allow non-U.S. companies to offer dollar-denominated securities to investors
in the United States and Europe."
The trend of cross border takeovers in billions (Nightly Business Report Dec. 7) is reflected in
foreign/U.S. Mergers: 4th Quarter 1997 -- $17.3. 1st Quarter 1998 -- $19.7. 2nd Quarter 1998 --
$92.4. 3rd Quarter 1998 -- $76.1

Zeneca Group of London (Moneyline Dec. 9) is paying $35 billion to buy Sweden's Astra to
make more drugs. 6,000 jobs will be cut. Sven Broho, Analyst with orbiMed Advisors,
said (NBR Dec. 9) cash and scale are now the keys to surviving. The pairing will still be behind
Merck and Galaxo as the world's third largest drug company. There is a wave of drug mergers
going on in Europe. Wallmart is buying 74 super-stores in Germany (NBR Dec. 9) after buying
21 stores in 1997.

Citigroup may get out of its legal bind by selling off Philbro (Moneyline Dec. 9) -- a commodity
trading unit it inherited from the merger between Citibank and Travellers. Philbro is a leading
trader of crude oil. The 1956 Holding Company Act forbids banks from owning commodity-
trading firms. The Federal Reserve approved the Citigroup "marriage" with the proviso that
Citgroup would divest all commodity-related businesses within a two-year period.

AT&T CHAIRMAN WANTS GLOBAL REACH

C. Michael Armstrong (CFR), Chairman and CEO of AT&T and Chairman of the World Trade
Corp. says (NBR Dec. 8) the company's joint-venture with British Telecom is "putting together
the assets to make AT&T a great global communications company."

BOSTON-BASED UTILITIES ANNOUNCE WEDDING TO BECOME NEW ENGLAND'S BIGGEST

BEC Energy is buying Commonwealth Energy systems (Nightly Business Report Dec. 7) for
$950 million. The combination of the two Boston utilities will be the largest in New England.

AETNA PAYS $1 BILLION TO BECOME LARGEST U.S. HMO

On Thursday (AP Dec. 10) Aetna paid $1 billion for Prudential Insurance Co.'s health care
business. Richard Leslie Huber (CFR), Vice-Chairamn of Continental Bank Corp., and
Chairman and CEO of Aetna, said (NBR Dec. 10) that the combination will result only in a one
in ten market share in a very fragmented industry. Prudential is privately-held.

WOOPS, REPUBLICANS DECIDE NOT TO GET INTO CAMPAIGN FINANCE 'THICKET"

In case you missed it, there was an intense Republican effort last week to broaden the
impeachment probe to include 1996 campaign finance violations. A judge allowed the
Republican investigators to view DOJ memos that supposedly alleged criminal wrongdoing by
the President. Then suddenly the "thicket" matter was dropped. There now will also be no
special counsel appointed to investigate the 1996 campaign contributions. Attorney General
Reno found no evidence (NBC News Dec. 7) of the required criminal intent.

6-0 VOTE BY FEC SAYS NO REPAYMENT FOR 1996 CAMPAIGN ADS

The Federal Elections Commission, says Brooks Jackson of CNN (McLaughlin Group PBS
Dec. 6), is a reluctantly created, toothless, weak commission with three Democrats and three
Republicans that needs four votes to act. On Thursday the FEC (Reuters Dec. 11) decided not
to accept the audit report that would have forced repayment for ads subsidised by taxpayer
funds. The vote was 6-0 against the FEC's own staff.
REPUBLICAN-DEMOCRAT LINE-UP FOR POSSIBLE IMPEACHMENT

On the Judiciary Committee (McLaughlin Group PBS Dec. 6) 21 members are Republicans and
16 Democrats. There are presently 228 Republicans in the House and 206 Democrats. Of the
435 total, 1 is independent. If the House votes to send the impeachment question to the
Senate, it will require 67 votes (NBC News Dec. 7) to impeach the president. There are 55
Republicans and 45 Democrats in the U.S. Senate. A Wall Street Journal poll (NBC News Dec.
9) showed 68% opposed to impeachment with 61% saying the House should not send articles
to the U.S. Senate. 52% favor censure if Clinton will admit lying under oath. Frank Sesno (CFR)
reacted (CNN News Dec. 11) to news that the House Judiciary Committee had passed out
articles of impeachment: "Washington is a harsh town . . ." Moderate Republicans wanted
Clinton to say he had lied. Rep. Teven Rothman (D-NJ) called impeachment "the nuclear bomb
of punishments." The consensus is that the Senate will not convict. Paul Gigot (BB) said that
moderate Republicans (News Hour PBS Dec. 11) were "incommunicado."

PARIS CLUB GAVE THREE-YEAR DEBT REPRIVE TO NICARAGUA AND HONDURAS

On Thursday (Dec. 11) the Paris Club extended the time for debt repayments by Nicaragua and
Honduras for three years as the World Bank announced new loans totalling $1 billion to
Hurricane Mitch-hit Central American countries. Stuart Eizenstat, U.S. Under Secretary of
State, said that the U.S. would forgive 67% of the debt owed by Honduras if it agrees to an IMF
reform program. He also said that 90% of the debt of Nicaragua will be forgiven by the United
States. James Wolfensohn(BB/CFR), World Bank President, announced the $1 billion in new
loans.

NEW YORK POST OWNER HIRSCHFELD RESURFACES IN HANDCUFFS

New York real estate millionaire, Abe Hirschfeld, was led away in handcuffs after being
accused of hiring a contract killing of a former business partner (Moneyline Dec. 10). The man
who wanted to make Monica Lewinsky go away, with a $1 million check, is currently under
indictment for state tax fraud and is being sued by comedian Jackie Mason for failing to show
up on the stage for an agreed New York club appearance. Five years ago Hirschfeld bought
the Alexander Hamilton-founded (1801) New York Post. He is accused of making a $75,000
down-payment on a hit.

FORMER COUP ATTEMPTER ELECTED PRESIDENT OF VENEZUELA

Hugo Chavez, whose campaign rattled investors (Reuters Dec. 7), won a landslide election in
Venezuela against his Yale educated businessman opponent, Henrque Salas Romer, and
promised "a people's government." In February of 1992 he attempted a coup that failed but
made him a popular figure. Chavez said he would not (Austin American-Statesman Dec. 7)
impose exchange controls and stated: "You the investor, if you have capital abroad, bring it
here." Foreign oil companies, such as Exxon, Mobil, Shell and British Petroleum, have put
their investment plans on hold. Venezuela is the No. 1 exporter of oil to the United States.

EXPOSED UGANDAN BANKING SLIGHT OF HAND RESULTS IN PRESIDENT'S BROTHER'S

RESIGNATION

The brother of the President of Uganda resigned as a presidential security advisor (AP Dec. 7)
over a controversial sale of a former state bank. Maj. General Salim Saleh bought a majority
interest in a Malaysian firm, Westmont Berhad, which had earlier bought a 51% stake in the
Uganda Commercial Bank. The Chairman of Uganda Commercial Bank is Mr. E. Suruma and
the General Manager is Mr. AMO Oder (Alfred). Saleh said he won't be the first to go to jail and
explained that he felt no remorse for trying to buy the bank in secret because he felt it should
belong to Ugandans. He has written a book entitled: "What is Corruption?"

BIRTHDAY PARTY GIVEN IN PARIS FOR HUMAN RIGHTS DECLARATION

Monday (Reuters Dec. 7) a week-long Paris birthday party was given to the UN's Universal
Declaration of Human Rights. It was adopted on December 10, 1948. In the General Assembly
(AP Dec. 11) countries such as China, Algeria and Chile defended their human rights records.
UN Secretary General Kofi Annan said: "Today we honor the highest of human aspirations
and renew our promise to conquer the worst of human cruelty." Annan gave one of five
human rights awards to former President Jimmy Carter (CFR/TC). Mary Robinson, the top UN
human rights official, said that the world's record of gross human rights abuses "does not
give ground for encouragement." Singers celebrating the declaration included Phil Collins and
Peter Gabriel (ABC News Dec. 11).

U.S. SENATOR SUGGESTS WARMING OF RELATIONSHIP WITH CUBA

Sen. Christopher Dodd (CFR) (D-Conn.) wants to (Reuters Dec. 7) establish a "new
conversation for the new millennium" between Cuba and the U.S. Dodd, fresh from a visit with
Castro, wants food and medicine to be sold to Cuba, a lifting of travel restrictions and
increased contacts between U.S. and Cuban officials and diplomats. He also proposed joint
action against drugs and in favor of the environment. He is expected to meet with Fidel Castro
again soon. Dodd is a Catholic Attorney who served in the Peace Corps.

EUROPEAN UNION CALLS FOR INTERNATIONAL COURT TRIAL FOR KURDISH REBEL
LEADER

The EU on Monday (AP Dec. 7) said that an international court should try Abdullah Ocalan, the
Kurdish rebel leader, who remains under arrest in Rome despite requests for his extradition
by Turkey. At present no international court possesses such a mandate. Under a 1972 treaty
protocol the 40-nation Council of Europe can transfer trials from one nation to another. The
14-year war for Kurdish autonomy resulted in the deaths of about 37,000. Oscalan faces both
murder and terror charges in Turkey.

NATO AND EU MAY PLAY A NEW MILITARY ROLE SOON

The Clinton administration (Austin American-Statesman Dec. 7) wants a new initiative to

combat weapons of mass destruction. A new NATO Center for Weapons of Mass Destruction
has been proposed. Sunday (Reuters Dec. 7) Secretary of State Madeline Albright (CFR/TC)
called for an expanded NATO that was "bigger and more flexible . . ." Earlier the U.S. has
suggested the globalisation of NATO. Next April, NATO will hold a 50th anniversary summit in
Washington. Albright (AP Dec. 7) also met with Israeli Prime Minister Ariel Sharon in
preparation for Clinton's coming trip. Sharon doesn't want Clinton (CNN Inside Politics Dec. 7)
landing at the Gaza Arab airport (but he will).

The European Union is making moves (AP Dec. 7) to reduce its dependence on the United
States for military support. British Foreign Secretary Robin Cook told reporters: "There may
be an occasion when we will want to take part in a peacekeeping operation or a crisis-
management operation where the Americans don't." Washington has been said to be in favor
of a reduced defense burden.

YELTSIN REPLACES THE HEAD OF HIS ADMINISTRATION AND DEPUTIES

Yeltsin (Reuters Dec. 7) put in three hours of work before returning to the hospital. He fired the
head of his administration, Valentin Yumashev. The head of the secretive government
communications agency (FAPSI) and three deputies were also removed. Nikolai Bordyuzha,
the Secretary of Yeltsin's Security Council, was named to replace Yamashev. He now will
serve as both security boss and Kremlin chief of staff. He stated: "The battle against
corruption is very important, particularly in the top echelons of power."

The Federal Agency for Government Communications and Information (FAPSI) was
established by presidential decree on February 19, 1993. It was headed on its creation by Col.
General Aleksandr Vladimirovich Starovoytov, formerly deputy chief of the USSSR KGB's
Government Communications Directorate. At least a half dozen FAPSI officials have left due to
financial scandals.

Yumashev (AP Dec. 8) ghostwrote Yeltsin's memiors. The dismissed aids (AP Dec. 8) included
some who had recently commented on Yeltsin's weakened health. Communist Party leader,
Gennady Zyuganov, said the actions made no real difference:"He's not governing anything
any longer. This is simply an agony." A cartoon in the Moskovsky Komsomolets (Reuters Dec.
8) showed a squinting Yeltsin in bandages and pyjamas, riding a bewildered horse in front of a
Kremlin fortress in flames, lopping off heads right and left with a sword. Yeltsin (AP Dec. 11)
met with his new aides for several hours and signed a decree awarding a medal to writer
Alexander Solzhenitsyn. Next week he is expected to meet with visiting Swiss and Belorussian
presidents. Solzhenitsyn, who turned 80 on Friday (AP Dec. 10), wrote in 1996: "The (Russian)
system of central power . . . is just as uncontrollable, lacking any public responsibility and
immune from punishment as the communist power was." In a rare speech, last year, he
stated: "We are doing everything to destroy Russia. We have no market, no democracy -- a
wild predatory capitalism is being built here." He was exiled in 1974 after writing too much
about Soviet forced-labor camps.

RUSSIAN MONEY SHORTAGE RELATED TO LOW OIL PRICES

More loan talks will be made this week in Russia (AP Dec. 7) as the World Bank's experts
arrived in Moscow. Half (Moneyline Dec. 7) of Russia's exports are oil-related. Crude oil
production dropped 1% (January to October) to 244.4 million metric tons. Last month (AP Dec.
8) Russian hard currency reserves fell 8% (from $13.6 billion to $12.5 billion). The reserves are
down nearly 30% since the first of the year. Overall government revenues for the year were
only 59% of largest levels ($10.8 billion). Anti-dumping measures of the EU cost Russia $300
million annually. Weapons makers (AP Dec. 7) will require more than $1.25 billion from Russia
on January 1. $4.5 billion in 1999 defense spending is viewed as inadequate. The EU will
provide $460 million to Russia in food aid (AP Dec. 7) but will insist it reaches the needy rather
than profiteers. Talks between Russian and its creditors (NBR Dec. 10) are in trouble.

NETANYAHU CHALLENGES HIS CRITICS TO TOPPLE HIM

After failing (Reuters Dec. 7) to bring former Foreign Minister David Levy back into his
government, Israel Prime Minister Netanyahu stated: "If someone wants to threaten or topple
me, let him try." Netanyahu was elected in May of 1996 on a platform to pursue peace with
security. Levy is a self-styled champion of the working class. He sought the position of
Minister of Finance. A two week parliamentary delay (Reuters Dec. 8) gave Netanyehu more
time.

CLINTON TO VISIT IN GAZA TO FURTHER THE PEACE PROCESS

Clinton arrived in Gaza on Saturday. Its 1 million population (McLaughlin Group PBS Dec. 6) is
mostly Arab with some 5,000 Jewish settlers. The Palestine Covenant must be purged of
offensive language such as "Elimination of Zionism" and"Geographical Base for World
Imperialism." David Ensor, CNN correspondent at the State Department, said that Clinton
(CNN Inside Politics Dec. 7) wants the Palestinians to publicly vote to delete all references in
their charter to the end of Israel. Geoffrey Kemp (CFR), of the Nixon Center, and according to
Gaylon Ross, Director of the Carnegie Endowment, Arms Control Project, stated (CNN Inside
Politics Dec. 7): "(I)ts a hornet's next . . . the fall out from the Wye accords is far from
tranquil." On Clinton, he stated: "He's clearly going to irritate the Israelis no matter how he
gets to Gaza." Walter Rodgers, CNN Bureau Chief in Jerusalem, interviewed Netanyahu (CNN
Inside Politics Dec. 7). Netanyehu said that Arafat plans to take half of Jerusalem for his
capital and: "Anytime the President of the United States wants to visit Israel, that's the right
time." 3,000 Palestinians (News Hour PBS Dec. 7) protested in the city of Nablus. Julian
Manyon of ITN, wearing a military helmet, provided footage of Netanyahu stating: "The
Palestinians have brazenly violated every single item of the Wye accords." [The actual text of
the Wye accords has never been quoted once in all the debates].

Dr. Mahmoud Zahar, a senior Hamas political leader (AP Dec. 8), said of Clinton's visit: "Of
course we don't welcome him . . . He brings nothing for us, or for any Palestinians . . . He is a
100 percent supporter of Israel." Hamas is expecting the new round of arrests that Arafat
promised to make under the Wye accord. After the October 29th suicide bombing, Arafat's
police rounded up hundreds of Hamas activists -- many of whom remain in jail. The
Palestinian police have also begun a CIA-assisted confiscation of illegal Arab weapons.
Another mass roundup of Hamas activists was expected in the days leading up to Clinton's
arrival. On Monday (December 14), Clinton will have a summit with Netanyahu and Arafat after
he addresses the large gathering of Palestinian leaders (Reuters Dec. 8).

Israel is insisting (AP Dec. 11) that a vote in the full Palestine National Council (PNC) must
precede further territory turnovers. Thursday the 124-member Palestinian Central Council
voted to revoke the offending clauses as set forth in an Arafat letter. The Wye accord said that
delegates should "reaffirm" Arafat's letter to Clinton. On December 10th, Arafat told senior
Palestinian officials that he might not live to see the peace process through. He said to
visiting members of the Washington Institute of Near East Policy (AP Dec. 10): "I don't know if
I'll live one year or two years." He has never designated a successor despite the danger he
faces in fulfilling his round-up of at least 30 alleged terrorists under the seldom-mentioned
criminal arrest promise contained in the Wye accord.

Samuel R. "Sandy" Berger (CFR) said that Clinton is making the trip to the Middle East (AP
Dec. 11) without any second thoughts. Three batteries of Patriot missiles are being shifted
from Europe (Germany) to Israel. Live fire exercises will be made (AP Dec. 10) involving
helicopter units. The U.S. has (Reuters Dec. 11) "several thousand" Marines exercising with
Israeli defense forces. The extra missiles will participate with American helicopters in
a "Mobile Shirley" exercise. The exercise (AP Dec. 11) is also called "Noble Shirley." A second
aircraft carrier will soon (NBC News Dec. 9) arrive in the Gulf. Some 15,000 Israeli troops are
patrolling the streets of Jerusalem in an unprecedented state of alert (NBC News Dec.
11). Madeline Albright (CFR/TC) stated that the use of military force "is a means, not an
end." U.S. Senator John Ashcroft said that aid to Arafat was imprudent "given Mr. Arafat's
continued incitement of terrorist violence and his refusal to hand over terrorists involved in
the murder of Israelis and U.S. citizens." Speaker-to-be Livingston (AP Dec. 10) told the
National Jewish Coalition, a Republican group, that the GOP "will not waiver" from "a total
and absolute dedication to the security of Israel."

Clinton and Arafat (AP Dec. 11) will tour the Church of Nativity with Arafat on Tuesday. Clinton
will take of tour (ABC News Dec. 11) of Masada.

BILLIONS MORE NEEDED FOR EDUCATION IN UNDER-DEVELOPED WORLD

UNICEF (AP Dec. 8) said that 40% of elementary school-age children in developing countries
never enter school or drop out before getting a basic education. Almost one billion people (a
6th of the world's population) will enter the 21th century unable to read a book or sign their
names -- two-thirds of them will be women. UNICEF found a direct correlation between years
spent in school and death rates of infants and mothers in childbirth. An additional $7 billion
per year will be needed over the next 10 years -- an amount less than the U.S. spends annually
on cosmetics.

THIRTY-TWO STUDENTS WIN RHODES SCHOLARSHIPS IN U.S.

Since 1903, a total of 2, 854 American students (AP Dec. 7) have been awarded Rhodes
scholarships. This year 32 more Rhodes scholars were picked from 909 applicants from 310
colleges. Elliot Gerson is the American secretary of the Rhodes Scholarship Trust. Democratic
presidential candidate Bill Bradley (RS) is among the candidates who are seeking to replace
William Clinton (BB/CFR/RS/TC). One of the greatest regrets of Soviet Agent Alger Hiss was
that he failed to make it as a Rhodes scholar. There is now an Association of American
Rhodes Scholar's Bulletin Board that will soon be closed to the public.

LAW LORD WHO VOTED AGAINST PINOCHET TIED TO AMNESTY INTERNATIONAL

One of the three "Law Lords" who voted that Augusto Pinochet (AP Dec. 8), Lord Justice
Leonard Hoffman, is a director of a charity run by Amnesty International. Hoffman, a South
African opponent of apartheid, settled in England in the 1960s. Since 1990 he has served as an
unpaid director and chairman of Amnesty International Charity Ltd. His wife is a secretary in
Amnesty International's press office in London. Amnesty International lawyers were allowed
to make representations to the five Pinochet judges -- an unusual move.

SOROS COMMENTS CAUSE ADVERSE REACTION IN MALAYSIA

George Soros (BB/CFR) was criticised (AP Dec. 7) by a Malaysian senior opposition leader for
suggesting that Prime Minister Mahathir Mohamad resign. Soros said last week that his
policies had curtailed access to the economy for foreign investors and currency traders.
Soros told a Johns Hopkins audience in Washington: "I think what needs to happen is he
needs to be removed from power." Soros was blamed for the collapse of Malaysia's currency
last year. Mahathir bin Mohamad (Lawrence B. Lindsy, National Review Nov. 9) instituted "the
financial equivalent of a siege economy with severe restrictions on currency movements." In
November, Vice-President Gore (CFR/M) made a speech in favor of Mahathir's political foes.
An aid to Mahathir was quoted: "I'm very disappointed that an MP from an Islamic party does
not believe in a Muslim prime minister and is more inclined to believe in Soros, a Jew whom
we know is always looking for means to destroy us." Soros is accused of abruptly selling his
holdings of the national currency -- the ringgit. Soros told a London audience (Moneyline Dec.
7) that there is a worldwide bear market. One third of the world is in a depression and there is
an oversupply of almost all commodities. He said producers were having to sell at low prices
to obtain the cash to pay their debts.

CHINA TO OWN 70% OF MONGOLIAN OIL REFINERY PLANT

China and Mongolia (AP Dec. 11) have entered into a $39.7 million refinery agreement which
will build a new facility in southeastern Mongolia. China's Huafu Oil Co. will own 70% of the
refinery. China's sale of $1 billion in 10-year bonds (Moneyline Dec. 9) was a big success in
the U.S. The interest is three points over T-Bills. A year ago China had to buy most of an
earlier bond offering.

WOOLSEY SAYS EXPERTS ON MISSILES WERE IGNORED BY COMMERCE

Former National Security Council member and CIA Director, James Woolsey (CFR), expressed
concern (Moneyline Dec. 10) about how U.S. defense officials who are knowledgeable on
missile technologies were left out of the loop when the Commerce Department allowed
Hughes Electronics to share information with China recently. On July 29 Steven Dorfman,
Vice-Chairman of Hughes Electronics, said there was no evidence that any Hughes employee
had transferred any missile technology. But four separate DOJ probes are underway.
Congress has now shifted satellite launching from Commerce to the State Department.

60 MINUTES WILL ISSUE APOLOGY ON HEROIN DRUG SMUGGLING STORY

Donald Hewitt, Executive Producer of CBS's "60 Minutes," will issue an apology (AP Dec. 11)
today for its June 1, 1997 report that claimed Colombia's Cali drug cartel had opened a new
heroin smuggling route to London. The producers of the British documentary, on which the
CBS report was based, used faked locations and paid actors to portray drug couriers. The
apology follows CNN's recent retraction of a nerve gas story on the Vietnam War and a bogus
series by the Cincinnati Enquirer on Chiquita Brands International Inc. Hewitt proposed
Thursday at the Freedom Forum that networks cooperate on a video wire service and
stated: "If the same wire service reporter showed up on (Dan) Rather (CFR) , (Tom)
Brokaw (CFR)and (Peter) Jennings (BB/CFR), who'd know?" Tom Brokaw said it was "a
dramatic documentary that was a bold fake" (NBC News Dec. 11). The deceptive program, he
added, won eight international awards.

SAM DONALDSON AND 20/20 LOOK INTO POLICE KILLING

On 20/20 (Dec. 11) Diane Sawyer (CFR) and Sam Donaldson took viewers through the results
of a 4-month investigation, narrated by Donaldson, on Mumia Abu-Jamal. He is a jury-
convicted police murderer who has attracted a growing following -- including anti-death
penalty actor Ed Asner and Woody Harrelson. Venice, Italy has awarded him the key to the
city. Mayor Willie Brown of San Francisco has issued a pro-Jamal proclamation. His hospital
confession ("I shot the M -- fer. I hope he dies.") surfaced two months after the alleged
statement was made. Jamal's only statement so far: "I am absolutely innocent . . ." He has
stated: "Revolution is my religion." The consensus seemed to be that he may want a new trial
but he was guilty as charged and convicted.

CANADIANS VISIT TEXAS TO GIVE VIEWS AGAINST DEATH PENALTY

Wednesday five Canadian death-penalty opponents (Austin American-Statesman Dec. 10) got
seven minutes before Victor Rodriquez, head of the 18-member board that oversees the Texas
clemency system, called state troopers in to eject them. Governor Bush commented: "We're a
death penalty state. We believe in swift and sure punishment."

REPUBLICAN DEFENSE SECRETARIES URGE NO PARDON FOR POLLARD

Seven former Republican defense secretaries, by a letter, have urged Clinton (AP Dec. 11) not
to release convicted spy Jonathan Pollard "notwithstanding our strong support for
Israel." The magnificent elite seven were: Donald H. Rumsfield (BB) [Trustee of Freedom
House and RAND; Board Member, National Park Foundation; Member of Steering Committee,
Balkan Institute and Chairman of Cilead Science, Inc.], Frank C. Carlucci III (CFR/TC)
[Chairman of Carlyle Group; Adjunct Fellow, Hudson Institute; Director, Atlantic Council of the
United States; Former Deputy Director of CIA; Trustee, RAND and Member of Steering
Committee, Balkan Institute], Richard "Dick" B. Cheney (CFR) [Emeritus Member of Aspen
Strategy Group; Director, Union Pacific; Haliburton Co., and Member, Bretton Woods
Committee], Melvin Robert Laird (TC), Elliot Lee Richardson (CFR/TC) [Co-Chair, National
Council, UNA-USA; Policy Review Board Member, Public Agenda; Milbank, Tweed, Hadley &
McCloy; Honorary Director, Atlantic Council of the United States; Felix Frankfurter law clerk;
President, Boston's World Affairs Council; Harvard Overseer and Secretary of HEW], James
Rodney Schlesinger (CFR) [Lucius Trust; CIA Director; Secretary of Energy; Chairman Atomic
Energy Commission; OMB; RAND staff; Director, Nixon Center and Director Atlantic Council
of the United States] and Caspar Willard Weinberger (CFR/TC) [General Counsel, Bechtel;
Pardoned by Bush in December 1992]. Among the some 800 documents turned over to Israel
by Pollard was the 10-volume manual (CBS News Dec. 8) of the National Security Agency.
Israel has never fully admitted to his actions.

ALSO IN THE NEWS

At the annual Paine Webber media conference on Thursday (AP Dec. 10), four major
newspaper publishers (Knight Ridder, The New York Times, Tribune Co. and A.H. Belo Corp.)
all projected double-digit percentage profit gains in 1999.

Henry Kissinger (BB/CFR/TC) (Dateline NBC Dec. 11) said Nixon spent all of his life wanting to
be President but the tapes proved he knew about the cover-up. So he told him he had to
resign despite his "heroic" foreign policy decisions.

The Brazilian Senate Thursday (AP Dec. 10) ratified the $41.5 billion IMF aid package. Brazil's
reserves dipped from $70 billion before the August Russian default to about $40 billion.

Former Federal Reserve Board Governor, Lawrence Lindsey, said (NBR Dec. 10) that
policymakers around the world fear letting the business cycle come to its usual end because
it would be "unthinkable."
Next year Speaker Livingston (Reuters Dec. 10) will keep representatives an extra day in
Washington by scheduling floor votes on Fridays. No votes will be scheduled on Mondays.

Thirty-five percent of U.S. employers (ABC News Dec. 8) now check their employees e-mail or
use hidden cameras. In the courts sued employers win.

Mark Cuban, of Dallas, Texas, is President and Co-Founder of Audionet. He was interviewed
as President of Broacast.com (NBR Dec. 9). He founded MicroSolutions in 1983. It was sold to
Compuserve in 1990. He then became president of Radical Computing -- a venture capital and
investment company specialising in high technology.

British Home Secretary Jack Straw (NBC News Dec. 9) has ruled that Pinochet can be
extradited. The decision came on the eve of the Universal Declaration of Human Rights.

J.P. Morgan (Moneyline Dec. 9) is doing a $750 million stock buy-back.

Robert Carswell (Shearman & Sterling, New York, is a private lawyer on the board of directors
of Georgia-Pacific Corp.

The U.S. Supreme unanimously (CBS Dec. 8) ruled that police cannot make a full-scale search
of an automobile when the driver is stopped for a routine traffic violation -- in the absence of a
reasonable suspicion. An anti-loitering ordinance in Chicago (NBR Dec. 8) used against gangs
is being considered on the current docket. It allowed police to tell suspected gang members
(ABC News Dec. 9) "move along."

Lots of fake diplomas have been sold and then used (ABC 20/20 Dec. 11) to get higher pay but
agencies don't seem to want to pursue allegations.

Lincoln is now outselling Cadillac (Moneyline Dec. 9).

Amoco stockholders and the European regulators (NBR Dec. 10) have both approved the BP
takeover. Only U.S. regulators can now stop it.

Brazil and Nicaragua (NBR Dec. 10) are suing U.S. cigarette makers. Brazil wants $33 billion.
Philip Morris says the cases have no merit.

The computer mouse, created in 1968, may soon be replaced by eye-scanning units (NBR Dec.
9).

Michael Roth, Chairman and CEO of Mutual Life Insurance in New York (NBR Dec. 8) is not
afraid of banks selling insurance. His 155-year-old company is now owned by shareholders.

Clinton (CBS Sunday Morning Dec. 6) said that Al Gore, Sr. was "truly a role model for people
like me . . ."

Some 1200 pages of the FBI's Frank Sinatra files have been released (NBC News Dec. 8).
There was no substantial evidence of ties to the mob.
The anti-money laundering "Know Your Customer" rules by the FDIC have been blasted (AP
Dec. 11) as an assault on the privacy of bank customers. The heavy protest mail has been
partly blamed by regulators on "anti-government" groups.

U.S. life expectancy averages 76.5 years while infant mortality (NBC News Dec. 7) is 7.2 deaths
for each 1,000 births. Typical health insurance costs per U.S. employee (Nightly Business
Report Dec. 7) are between $4,300 and $4,400.

Abortions are at a 20-year low (ABC News Dec. 11).

Jesse "The Body" Ventura (Reuters Dec. 8) will release an eagle into the wild, have a potluck
lunch with farmers and lead a crowd in callisthenics for his inauguration as governor of
Minnesota.

Russia is going ahead with its 1995 $800 million deal to build a nuclear reactor in Iran
but (Austin American-Statesman Dec. 10) won't hand over nuclear weapons technology.

QUOTES

"They could do something nuts." -- Former CIA Director R. James Woolsey (CFR)
(commenting on North Koreans)

"(B)y using ancient times as a mirror you may learn to foresee the rise and fall of empires." --
Emperor T'ai Tsung (627-- 650 A.D.)

"Debt is the fatal disease of Republics, the first thing and the mightiest to undermine
governments and corrupt the people." -- Wendell Phillips

"A general dissolution of principles and manners will more surely overthrow the liberties of
America than the whole force of the common enemy. While the people are virtuous they
cannot be subdued; but when they lose their virtue they will be ready to surrender their
liberties to the first external or internal invader . . . If virtue and knowledge are diffused among
the people, they will never be enslaved. This will be their great security. Neither the wisest
constitution nor the wisest laws will secure the liberty and happiness of a people whose
manners are universally corrupt . . . . The sum of all is, if we would most truly enjoy this gift of
heaven, let us become a virtuous people."-- Samuel Adams

"Can the liberties of a nation be thought secure when we have removed their only firm basis, a
conviction in the minds of people that these liberties are the gift of God? That they are not to
be violated but with his wrath? I tremble for my Country when I reflect that God is just: that his
justice cannot sleep forever." -- Thomas Jefferson
week007.htm

http://www.biblebelievers.org.au/
 THE WEEK THAT JUST WAS
VOL. 1. NO. 6. (December 6, 1998).

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar

TC=Trilateralist

GOVERNOR BUSH MAKES SHOWCASE VISIT TO ISRAEL AND ANSWERS ADL INQUIRIES
REGARDING HIS VIEWS ON RELIGION

Israel is "a country of genius," according to George Walker Bush (S&B 1968). Bush paid his respects at
the Yad Vashem (Isaiah 56:5 ) memorial to the Holocaust. Bush and three other U.S. Governors were
treated to a dinner by Prime Minister Benjamin Netanyahu on Monday. Bush said: "The relationship
between Israel and the United States is a very special relationship. It will always be that way." An AP
photo in the Austin American-Statesman (Dec. 1) showed Bush wearing a traditional Jewish Yarmulke
("in awe of God") at the Western wall on Monday.

The New York Times Magazine has now done a major profile on Bush. Abraham Foxman, national
director of the New York-based ADL, is wanting Bush to clarify his regretted religious remarks. Before
running for Governor in 1993, Bush said in a Dallas interview that people who do not believe in Jesus
Christ cannot go to heaven. Foxman said he expected a letter next month that will expand Bush's views.
Bush and his wife Laura, before their Israel trip, visited Italy. Before departing from the New Orleans
GOP Governor's conference (Austin American-Statesman Dec.1), Bush told a reporter, while waiting for
an elevator, that the first thing he was going to say to Israeli Jews was that they were all "going to hell."

The four governors (AP Dec. 1) were flown over areas of the West Bank that Israel hopes to annex and
shown an anti-missile (the Arrow) that is being developed by Israel with heavy U.S. funding. An Arrow II
missile is also being designed that will serve as an interceptor for defense of military assets and
population centers. The work is being performed by Israel Aircraft Industries. Bush (CBS Nov. 30) had
dinner with Natenyahu who is believed to be partial to American Republicans. The film coverage showed
him pointing his finger repeatedly to a smiling Bush. No meeting was held (Austin American Statesman
Dec. 4) with Yasser Arafat of the PLO. Visits to two Israeli settlements were cancel on the request (Austin
American Statesman Dec. 2) of the U.S. Embassy.

On his return to Austin (Reuters Dec. 4), Bush stated: "What I said was that my faith tells me that
acceptance of Jesus Christ as my savior is my salvation and I have made it clear that it is not the
governor's role to decide who goes to heaven." He added: "I believe God decides who goes to heaven, not
George W. Bush." Bush (AP Dec. 3) also said: "First and foremost I've got a job to do as the governor of
this state." Bush said he had addressed Foxman's concerns in an unreleased October letter which he
deemed a "personal matter." He was further quoted (Austin American Statesman Dec. 4): "I've got
great respect for other religions of the world. But I happen to firmly believe what I just told you about
the tenets of Christianity."

A major rewrite of the Texas Constitution (Austin American Statesman Dec. 4) may reveal Governor
Bush's elitist or democratic views in the upcoming session of the Texas Legislature. Two reframers, Sen.
Bill Ratliff and Rep. Rob Junell, have proposed an almost entirely new constitution that would provide
House members with four-year terms (rather than two years) and extend State Senator's 4-year terms to
six years. The rewrite calls for appointment of judges, a cabinet form of government and eventual term
limits.

FATHER BUSH DOES A REGIONAL TOUR OF MIDDLE EAST

George Herbert Walker Bush (CFR/M/S&B1948/TC) described as Kuwait's favorite American, arrived
Tuesday (Reuters 1998) in Kuwait, as part of a regional tour. On his arrival he was greeted by Kuwiat's
Crown Prince and P.M. Sheikh Saad al-Abduallah al-Sabah. Bush said in an interview that Iraq now
lacks the military power to reinvade Kuwait. While President, he opposed Jewish West Bank settlements.
The Bush administration (Austin American-Statesman Nov. 30), after finding that U.S. loans were being
used for settlement construction, withheld loan guarantees to Israel. The elder Bush also visited in Saudi
Arabia (AP Dec. 1). Bush was the guest of the Mansour Group (Gulf-News Sept. 9, 1997) that is one of
Egypt's major privately-owned companies involved in car manufacturing, distribution of heavy
equipment, management of hotels, real estates, banks and McDonalds Egypt. It has a joint firm
relationship with Britain's Flemings Investment Bank which has 41 international branches . Mohammed
Mansour is chairman of the Mansour group.

LINE-UP OF POSSIBLE DEMOCRATIC PRESIDENTIAL CANDIDATES BEGINS

Former NJ pro-basketball player and former U.S.Senator Bill Bradley (CFR/RS) is expected to seek the
Democratic presidential nomination (AP Dec. 2). Bradley has now formed an exploratory committee (AP
Dec. 4) and wants to provide the kind of leadership "that calls attention to the actions of millions of
American who shine every day." Other candidates may include Richard Andrew "Dick" Gephardt of
Missouri (CFR), libral U.S. Senator Paul Wellstone of Minnesota (who formed an exploratory committee
in April), Senator Bob Kerrey of Nebraska and John Forbes Kerry (CFR/M/S&B 1966) of
Massachusetts. Gephardt (Reuters Dec. 3) will decide whether or not to make a bid in 30-40 days. He
described the Democratic Party as "the party of pragmatism." Wellstone said (AP Dec.
3) Thursday: "I'm going to raise Cain about the ways in which I think my own party is trying to wire
this."

GORE MAKING HIS MOVES TOWARDS DEMOCRATIC PRESIDENTIAL NOMINATION

There are just 699 days to go (NBC News Dec. 4) before the next presidential election.

Vice-President Al Gore, Jr. (CFR/M), the presumptive Democratic favorite, is expected to use the slogan
of "practical idealism" to combat the "compassionate conservatism" claimed by Governor Bush.
Wednesday Gore (AP Dec. 2) spoke to the 13th annual Democratic Leadership Council but didn't
mention Bush by name. He said: "We (Democrats) see that it is too damn hard right now to pay the bills
and juggle day care and spend time with your kids." Gore (AP Dec. 1) has picked White House political
director Craig Smith as his campaign manager. His campaign chairman may be lobbyist Peter Knight or
former White House counsel Jack Quinn.

Peter S. Knight (Washington Post Oct 27, 1997) is a longtime Gore aid and chief fund-raiser. In the
spring of 1995, he made one of his first pitches to a hazardous waste disposal firm in the state of
Massachusetts. In a letter after a $50,000 pledge, he wrote to Molten Metal Technology Inc.: "Your
participation in this program will give you a special place of significance with the vice president and put
you first in line..." Molten already was paying Knight $7,000 a month plus lucrative stock options to be
its Washington D.C. lobbyist. Knight was Gore's chief of staff for 13 years both in the House and Senate.
In 1996 he headed the Clinton-Gore reelection campaign. He is a partner in Wunder, Knight, Levine,
Thelen & Forscey. His clients include Lockheed Martin Corp. and the Walt Disney Co. In 1994 Molten
President William M. Haney III made a $50,000 donation to endow a chair in environmental studies at
the University of Tennessee to be named after Nancy Gore Hunger (Gore's sister who died of lung cancer
in 1984). Two days after the donation, the Department of Energy added $9 million to an existing $1.2
million research contract with Molten to develop technology for hazardous waste disposal.
Jack Quinn was made Assistant to the President and White House Counsel on September 20, 1995. He
replaced Abner Mikva who returned to private practice. Quinn was on the staff of Gore as Counsel and
Deputy Chief of Staff on inaguration day, 1993. In July 1993 he was named Assistant to the President and
Chief of Staff to the Vice-President. Quinn was born and raised in New York. He was a partner in
Arnond & Porter before joining Gore's staff. He has been accused of attempting to hide documents and
also of hiding the fact that the White House improperly asked for and received over 1,000 confidential
FBI files. At last report he is facing a contempt of Congress charge.

GORE'S FATHER DEAD AT AGE OF 90

Sometimes fiddler Al Gore, Sr. died yesterday. Gore (1907-1998) served thirty two years in the Congress
(14 in the House and 18 in the Senate). Norman Jay Ornstein (CFR), Resident Scholar with the American
Enterprise Institute, (CNN Dec. 5) said: "Gore did as much as anybody to alter the whole mind set of the
public and enable the civil rights revolution to take place." He was an opponent of the Vietnam War. He
was quoted: "I might be running ahead of the pack sometimes, but I'm usually headed in the right
direction." William E. Brock III (CFR/TC), Chairman of the Blackstone Group and former Secretary of
Labor (1985-1987), said that Al Gore, Jr. has a chance at something he could never achieve. Gore, Sr.
once said: "(I) looked in the mirror a few times and thought I might be seeing a president. I enjoyed the
hallucination." Bruce Morton of CNN ended his report: "He was a politician of the old good school from
the time that politics was honorable work." In 1956 Austin American-Statesman Dec. 6) Gore, Sr. passed
the interstate highway system bill. He was a leader among liberals in the Senate who was defeated for re-
election in 1970 by Bill Brock. He (Reuters Dec. 6) opposed school prayer and supported stricter gun
control laws. Gore also "protected his friend Armand Hammer, an industrialist and frequent visitor to
the Soviet Union, from investigation by Communist hunters at J. Edgar Hoover's FBI." After he lost his
Senate seat in 1970, Hammer provided Gore with a $500,000 a year job as head of a coal company owned
by Occidental Petroleum Corp.

ESPY WINS KICKBACK TRIAL DESPITE 70 WITNESSES AGAINST HIM

Wednesday former Agricultural Secretary Mike Espy (Reuters Dec. 2) was acquitted by a Washington,
D.C. jury of 11 blacks and one white on all charges after a $20 million investigation. Prosecutors said he
had illegally accepted some $33,000 in sports tickets and other favors from companies he had regulated.
Espy, 45, quoted the 27th Psalm. No testimony was presented by the defense while the prosecution called
70 witnesses. He was the first cabinet member since 1987 to be tried on criminal charges. Mark Shields
(PBS News Hour Dec. 4) said that Espy took gifts but returned no favors. Paul Gigot (BB) said Espy
voted for the independent counsel statute while Democrats were in control. U.S. Senator Bill Rist (R-
Tenn.) said (Capital Gang Dec. 5) that there were nine convictions based on money and favors relating to
the Espy case.

The special independent counsel statute is now set to expire next June. Jim Lehrer (CFR) interviewed
three former independent counsels. James Brosnahan, an assistant independent counsel for Iran-
Contra (News Hour Dec. 4) said the investigations take too long, too many are prosecuted and the statute
should be abolished. The special counsel is not accountable. He is appointed by appointed federal judges.
Head Iran-Contra investigation counsel, Lawrence Walsh, wants to keep the statute but with radical
changes. He would limit the statute to misconduct involving the power of office and exclude the cabinet.
It should also not involve pre-office conduct or conduct of a personal nature. Lloyd Cutler (CFR/TC)
suggested to Walsh that 25 persons be chosen as qualified by the Senate to serve as potential independent
counsels. James McKay, who investigated Notzinger and Ed Meese, said the baby should not be thrown
out with the bathwater. It is too partial for the DOJ to investigate but coverage should be limited. Of the
first 18 counsels, 11 recommended no prosecution.
FORMER PRESIDENT FORD GETS VICTORY OF FREEDOM AWARD

On Tuesday Gerald Ford (Austin American Statesman Dec. 4) was given the "Victory of Freedom
Award" which commemorated the 50th anniversary of his election to Congress. When he first
campaigned for Congress he was visited by Prince Bernard (BB).

DEUTSCHE BANK NOW WORLD'S BIGGEST BANK AND STILL COUNTING

Deutsche Bank (Reuters Nov. 30) agreed Monday to pay $10.1 billion for Bankers Trust. The deal will
create the world's biggest $834 billion bank and cause 5,500 job cuts in New York and London. 6% of
employees (Bloomberg Morning Report Dec. 1) will get pink slips. CFR Fellow Bruce Stokes (CFR)
(identified on screen) (ABC News Nov. 30) said Americans used to concerned about foreign ownership
but it has now become acceptable. Gaylon Ross notes that Stokes is also an international economics
correspondent for the National Journal. The largest bank at the moment is UBS AG of Switzerland.
Deutsche Bank (AP Dec. 2) is also taking over Credit Lyonnais Belgium, a subsidary of France-based
Credit Lyonnais, S.A. for about $590 million. At the end of September (Austin American-Statesman Dec.
1) the Deutche Bank had some 20 billion marks of cash reserves.

LIKELY TAKEOVER TARGETS?

Medtronic is merging with AVE for $4.3 billion in stock and debt. More takeovers may occur soon
(Bloomberg Morning Report Dec. 1) with Lehman Brothers, J.P. Morgan and Painewebber being
prominently mentioned. In the past year and a half, regulators (Austin American-Statesman Dec. 5)
blocked mergers between office products retailers Staples and Office Depot, defense giants Lockheed
Martin and Northrop Grumman and the nation's four top wholesale drug dealers.

EUROPEAN CENTRAL BANKS CUT INTEREST RATE TO 3%

Led by Germany 10 EU central banks cut rates to 3%. It was an earlier than expected cut. When the
Euro begins the interest rate in Europe will be set by the EU central bank after January 1.

MARKET FORECASTS: A 50% CORRECTION AFTER 10,000?

Last week (Moneyline Dec. 4) the market went down by 3.5%. The recent 500 point DJIA drop
amounted to a stockholder value loss of $400 billion. $16 billion has flowed into U.S. stock funds--half the
amount of a year ago. Small caps on the Russell 2000 for the year (Nightly Business Report Dec. 4) are
down 8.9% while the S & P 500 is up 21.2%. Most talk is that the Fed will not cut rates at its December
22nd meeting but will wait for the first quarter.

Steven Leuthold, Chairman of the Leuthold Group told Lou Dobbs (Moneyline Dec. 4) that so long as
Main Street loves stocks, the market will go up. He noted that earnings are not motivating buying and
that net stocks had no earnings. Leuthold predicted the market would reach 10,000 in the first quarter of
1999 but then sees a correction of as much as 50%. Stockholders, he predicts, will become disillusioned
with the market and allow it to return to median levels . He said the market has already gone way beyond
any past extremes on any valuation basis. But Myron Kandel is bullish and says the market is going to
record highs.

Stocks (Austin American-Statesman Dec. 6) (Steven T. Goldberg) on the average have returned 11% a
year since 1926 compared to 5.4% for government bonds and 3.7% for T-bills, bank certificate of
deposits and money-market funds. Inflation has averaged 3.1%. In 1931 stocks tumbled 43%. After the
1929 crash (when stocks lost 86% of their value in three years), it took until 1944 to break even. After the
1973-1974 bear market (when stocks went down by 48%) it took three years to recover (ten years
counting inflation).

EXXON GIVES $73.7 BILLION IN STOCK FOR MOBIL

Tight-lipped Exxon Chairman and CEO Lee R. Raymond (CFR/TC) arrived (Reuters Nov. 30) in New
York Monday. He said (PBS Dec. 1): "I have never been for bigness for bigness alone." The some 9,000
workers that will be (NBC Dec. 1) cut, he said, would be those who are "redundant." Some $2.8 billion in
cost savings are expected (Nightly Business Report Dec. 1) over the next three years. The $73. 7 billion
price eclipses the $72.6 billion purchase of Citicorp by Travelers Group to form Citigroup. Recently
British Petroleum Co. Plc bought Chicago-based Amoco Corp. The other "Big Three" oil company is the
Anglo-Dutch oil giant Royal Dutch/Shell Group. Mobil already has a big refining venture with British
Petroleum.

Raymond was a recent honoree of a John J. McCloy Awards dinner sponsored by the Warburg-linked
American Council on Germany (ACG). John Jay McCloy (BB/CFR) was on the Warren Commission and
served as Chairman of the Council on Foreign Relations (1953-1970). Lee Raymond (Austin American-
Statesman Dec. 3) is a director of J.P. Morgan Guaranty Trust Company and the American Petroleum
Institute. He is the father of triplets, owns $25 million in Exxon shares and made $3.25 million last year.
Raymond is considered to be opposed to treaties to prevent global warning by some environmentalists.

Soon to be vice-chairman (AP Dec.2) of Exxon Mobil, Lucio Noto (CFR), the Chairman of Mobil, stated:
"The world has changed." The merger (Nightly Business Report Dec. 1) will be a "marriage of
strengths." Noto (Austin American-Statesman Dec. 3) has close ties to Saudi Arabia's royal family. He is
a trustee of the Urban Institute and a director of Philip Morris Cos. and IBM. Noto made $2 million last
year and likes cigars, fast cars and the opera. He has been described as "not a wall flower." Gerald
Meyers, Professor at the Carnegie-Mellon Graduate School of Business and former CEO of American
Motors said of Noto: "Noto runs a top-down organization. He's king of the castle, lord of the manor...I
think Noto will (eventually) leave with a boxcar of gold and closed lips."

Some 12,000 employees (Bloomberg Morning Report Dec. 1) (10% of the workforce) will be laid off. The
Exxon/Mobil combination would control 22% of the U.S. gas market and refine more oil than any other
company. Mark Crampton said the 40% decline in oil prices to a 12-year low has contributed to the
marriage plans. The answer is more mergers (romance) and layoffs (reality). In this international era of
global giants (NBC Dec. 1) American companies now have to be big in order to survive. Europe (AP Dec.
4) is having a flurry of billion-dollar mergers. In the U.S. the 5 all-time high dollar mergers (PBS News
Hour Dec. 4) have occurred since April.

Exxon shareholders will now own 70% of Exxon Mobil Corporation (Business Wire Dec. 1). The new 19-
member board will include six directors from Mobil. In 1997 Exxon had a net income of $8.5 billion on
revenues of $137.2 billion. Its average return was 16.5%. Mobil had a 1997 net income of $3.3 billion on
revenues of $65.9 billion. Its average return on capital was 13.4%. Exxon Mobil will have about 48,5000
gas stations--about a third of them are in the U.S.

A PBS panel (Dec. 1) on the Exxon/Mobil merger consisted of Daniel Yergin (CFR) of Massachusett's
Cambridge Energy Research, author Ron Chernow and Christopher Flavin of Worldwatch Institute.
Yergin used buzzwords mostly like efficiency, competition and deregulation.

Chernow, a graduate of both Yale and Cambridge University in England, has written a book on J.P.
Morgan, the Warburgs and most recently one on John D. Rockefeller (The Titan). He was given
unrestricted access to the Rockefeller family papers. On another show, Chernow said the marriage was
necessary. On PBS he said the two biggest companies of the original Standard Oil trust were originally
Exxon and Mobil that together were 52% of the trust. Now Exxon Mobil will have about 25% of the U.S.
market--less power than the old trust. His two rules: 1) capital counts and 2) the market rules. Because
the prices cannot be controlled it is necessary to "ruthlessly" cut costs. Oil is much more pervasive now--
we are very dependent upon oil. It will be a difficult mix. An Exxon CEO once said management training
was like teaching an elephant to dance. Chernow said here it was more like a Hippo. There used to be a
sort of tabbo against this kind of merger. The ghost of Standard Oil will hover over the deal. The FTC
will demand "some flesh" but ultimately will give its approval. BP and Amoco also derive from the old
trust.

Flavin said that both companies had pulled out of solar technology while British companies stayed the
course. Mobil has been more aggressive while the British have been more environmental. The bigger the
merger the most risky it is. Gas prices are now at the 1972 level (NBC Dec. 1). Crude oil is also at record
availability. Last year's warm winter crushed the demand.

In May (Reuters Dec. 2) President Clinton created a high-level group to examine big-money mergers. It
includes NEC chairman Gene Sperling, CEA Chair Janet Yellen and Treasury Secretary Robert Rubin
(BB). In testimony to the Senate Judiciary committee last June, Yellen, a 1971 Yale Ph.D. in economics,
said this was the fifth major merger wave in the last 100 years. The former Federal Reserve Governor
also said that "large size is not the same as monopoly power." Yellen, a former Berkley professor, has
also been a lecturer at the London School of Economics. At Yale (Business Week March 3, 1997) other
students borrowed her notes on James Tobin's lectures. The Exxon Mobil combination (Reuters Dec.2)
will most likely be reviewed by the FTC rather than the DOJ.

In August (AP Dec. 2) Amoco Corp., another Standard Oil spinoff (which years earlier absorbed what
was the Ohio segment of Standard Oil) was taken over by British Petroleum. BP (AP Dec.2) paid $57.1
billion for Amoco Corp.

BRAZIL'S POLITICIANS SAY "NO" TO REQUIRED IMF REFORMS

The Import-Export Bank (Moneyline Dec. 4) extended $1 billion in further credits to half a dozen
Brazlian banks. Stocks declined (Moneyline Dec. 4) almost 9% in Brazil after pension reforms were
shelved. Brazil is Latin America's largest economy. Michael Hartnett, Senior International Economist
with Merrill Lynch said: "Ultimately Brazil will continue to be a big negative..." Lawrence Chimerine,
Chief Economist with Economic Strategy Institute, said the IMF reforms were too rushed.

WALK ON DOWN OR ACROSS THE STREET IF YOUR JOB IS TAKEN AWAY

The unemployment rate (NBC News Dec. 4) is down to 4.4%--the lowest level in six months. The
figure (Moneyline Dec. 4) matches a 28-year low set last spring. There were 47,000 construction jobs
created last month as low mortgage rates (about 6.7%) pushed up sales of homes. John Challenger of
Challenger, Gray and Christmas, said (PBS News Hour Dec. 4) the new jobs being created are good
jobs: "We're not turning back to a nation of hamburger flippers." The average new job search time is
now 2.6 months compared to 3.3 months but there will be no more lifetime jobs. Unemployment is
negative in the technology sector. Productivity (Moneyline Dec. 3) was up 3% in the third quarter. In
November there were 65,000 new service jobs. Payrolls outside the farm sector (Reuters Dec. 4) climbed
267,000 in November. That's up from the revised October number (Nightly Business Report Dec. 4) of
145,000. Average factory job pay (NBC News Dec. 4) per week is $573 compared to $433 for service
sector jobs.
U.S. Corporations are playing Santa Claus to their shareholders (Reuters Dec. 2) but for many laid-off
workers their role is that of the Grinch. Jobs cuts in 1998 will probably reach the 625,00 mark by the end
of the year. Joel Naroff, Chief Bank Economist with First Union Corporation, stated: "Job security is not
something you even talk about anymore. It is now defined as the ability to walk across the street and get
another job." Boeing will cut 48,000 jobs (NBC Dec. 1) over the next two years. The cuts are being
blamed on Asia. Johnson and Johnson is cutting 4,100 positions (4% of its workforce). Kellogg is
trimming 21% of its salaried employees (PBS News Hour Dec. 4) at its headquarters. Zenith (NBC News
Dec. 4) is closing a plant that employs 12,000. 10,000 U.S. steel workers (CBS Dec. 3) have been laid off.
Russia, Japan and Brazilian companies are selling their steel in the U.S. for less than the cost of
production. The biggest increased in steel exports are coming from Japan (210%), Brazil (151%) and
Russia (115%). The number of U.S. steel jobs could be reduced by 50%. Since March (Reuters Dec. 4)
manufacturing employment has fallen by 245,000.

John Challenger (Austin American-Statesman Dec. 3) said: "It used to be you'd worry about what your
Christmas bonus was going to be. Now you have to worry whether you're going to get a pink slip or
not." It used to be a corporate taboo to fire workers during the holiday season. He added: "That doesn't
seem to be the case anymore."

WATER, WATER ALMOST EVERYWHERE TO GO PRIVATE?

Water may be the next big area for privatization in the U.S. Less than 15% (Moneyline Dec. 3) has been
privatized so far. The Clinton administration announced $850 million to upgrade drinking water.
Rebecca Mark, Vice-Chairman of Enron, who is creating a market for private investment, sees water
(Nightly Business Report Dec. 4) as the next big thing. J. James Barr, President and CEO of American
Water Works, was interviewed. Citizens care less about who hauls their trash and care more about their
water. So far cities are generally reluctant to sell their crown jewel but privatization could save as much
as 40%. Companies now include: American Water Works, Philadelphia Suburban, DQE's Aquasource,
American States Water, Aquarion, California Water Services, E'Town and United Water Resources.

CALIFORNIA GROWERS THREATENED WITH INVASION FROM THE SOUTH

Red fire ants, having conquered the south from Texas to Florida, now (NBC News Dec. 4) are threatening
California. The national cost per year is $2 billion. No effective remedy has been found. The "living
fire" is virtually impossible to put out.

CITIBANK DID SECRET MONEY TRANSFER SAYS WASHINGTON POST STORY BASED ON
GAO REPORT

In October, Swiss authorities seized accounts on the basis that it came from Mexican drug
lords (Moneyline Dec. 4). The Citibank story broke (Moneyline Dec. 4) on the same day that Citigroup's
Chairman and CEO, Sandy Weill, was opening the New York Stock Exchange. Up to $100 million (
Reuters Dec. 4) in alleged drug money, for imprisoned Raul Salinas, the brother of Carlos Salinas, the
former President of Mexico (1988-1994), was secretly transfered by Citibank without investigation,
according to the Washington Post citing a GAO report. Citibank assisted (Moneyline Dec. 4) Raul in
setting up dummy offshore corporations and concealing drug money as it went from Mexico to
Switzerland. The report stated: "Citibank...facilitated a money-managing system that disguised the
origin, destination, and beneficial owner of the funds involved." The transfer violated the bank's own
guidelines and may result in congressional hearing for the second biggest U.S. bank. Amy Elliot (Austin
American Statesman Dec. 4) was the Citibank executive who worked on the Salinas account. The "Know
Your Customer" policy has been recently linked to a more intrusive role in general by banks who may
soon turn-in suspicious customers. For some time cash withdrawals have triggered bank reports to
higher authorities. Citbank (Moneyline Dec. 4) responded to the report:"The GAO report does not
conclude that any law was violated."

ALABAMA STATE PENSION FUND LOAN ALLOWS COMMUNITY NEWSPAPER HOLDINGS

INC. TO PURCHASE SMALLER HOLLINGER NEWSPAPERS

Community Newspaper Holdings Inc. (AP Dec. 4) will pay $475 million for 45 newspapers (28 dailies and
17 weeklies) now owned by Hollinger International. Hollinger will focus on its larger U.S. newspapers--
including the Chicago Sun-Times. Community will then have 96 dailies ahead of Gannett Co. Inc., with 87
daily newspapers.

CHIEF OF WORLD COUNCIL OF CHURCHES CALLS FOR SWEEPING CHANGES

On the 50th anniversary of the World Council of Churches, the Rev. Konrad Raiser (AP Dec. 4) called
for a new orientation at a time when homosexuality and the role of woman in the church have caused
devisiveness. His call followed a boycott (AP Dec. 3) by the Russian and Greek Orthodox churches who
disapprove of the council's increasingly liberal stand on a number of issues. Seven months Eastern
Orthodix leaders said that they were in a minority role and were unable to influence "the general trend
and ethos of the WCC."

EU DEFENSE WILL INVOLVE "CREDIBLE" MILITARY FORCES

Britain (Reuters Dec. 4) has finally agreed to a long-suggested French idea of a European defense
identity. Tony Blair signed up to a declaration with French President Jacques Chirac on a proposal
floated by the Labor leader in October. The signing took place on a British warship off the French
Brittany port of Saint-Malo.

SWISS SUPPOSED RUSSIAN MAFIA TWO-WEEK TRIAL GETS UNDERWAY

Bulletproof vests were given to some of 90 witnesses (AP Nov. 30) testifying in a Swiss criminal case
against Sergei Mikhailov who is the alleged head of the Moscow-based Solntsevskaya crime organization
which prosecutors say is linked to the worldwide crime network of mafia godfather Vyacheslav Ivankov
(Yaponchik). Yaponchik was arrested by the FBI in June of 1995 and was sentenced to almost ten years
in prison last year in New York. A former Moscow police officer, Nikolia Oporov, a witness, is under
heavy guard. Vadim Rozenbaum, a witness that prosecutors planned to call, was assassinated in the
Netherlands in 1997. In Russian society the highest level of the criminal hierarchy is the vory v
kakone ("Thieves professing the code"). They are said to currently number less than 400 in Russia. The
"leaders" (lideri) are said to number about 20,000. When communism collapsed, enormous amounts
(over $3 billion) of private wealth flowed into Switzerland. Russians have been buying villas (AP Nov. 29)
on the Swiss Riviera of Lake Geneva and placing their fortunes in Swiss banks.

THAILAND'S PARLIAMENT MAY IMPEACH OVER IMF SIGNING

In Thailand portrait drawing Prime Minister Chuan Leekpai (AP Dec. 3) is facing impeachment for
signing letters of intent to the IMF without consulting parliament. Stiff opposition to Chuan is expected
by Thailand's 258 appointed Senators who are largely wealthy businessmen. Many are said to be deeply
in debt and in default. In a visit to the U.S. Chuan in March met with U.S. Senator William V. Roth, Jr.
(CFR/TC). George Soros was quoted concerning Chuan: "He is moving the country in the right path."

SECRET POLICE CHIEF'S TOPPLED STATUE MAY RISE AGAIN

In 1991 pro-democracy protesters in Russia (AP Dec. 4) toppled the statue of Soviet secret police chief
Felix Dzerzhinsky ("Iron Felix") that had inspired Communists and terrified human rights activists.
Friday the lower Russian House passed a resolution, by a vote of 255-102, calling on the Moscow city
government to resurrect the statue of the infamous secret police chief. It was justified as a "symbol of the
fight against crime in Russia." The mayor of Moscow opposes the restoration. A motion to end state
funding for maintaining Vladimir Lenin's mausoleum on Red Square was overwhelmingly defeated.

STILL NO RUSSIAN BUDGET BUT IMF LOAN IS BEING ANTICIPATED

A budget debate (AP Nov. 30) was canceled Monday before the Tuesday visit of IMF chief Michel
Camdessus. Yet $17.5 billion of IMF aid is being included in next year's Russian budget. The IMF is
anxious for Russia to pay off its debt to foreign creditors including the IMF. Russia has so far (AP Dec. 1)
obtained about $5 billion of the total $22.6 billion IMF bailout. Wednesday (Reuters Dec. 2) Camdessus,
who didn't meet with Yeltsin, said more IMF support might come in 1999. Primakov said: "He has come
here with a little briefcase of documents rather than with a huge trunk of cash." On Wednesday the
Duma passed a resolution demanding that a medical report be made on Yeltsin's health.

Michel Camdessus became the 7th Managing Director and Chairman of the Executive Board of the IMF
on January 16, 1987. >From 1978-1984 he was Chairman of the Paris Club. In November 1984 he
became Governor of the Bank of France. For about thirty years the head of the IMF has been from
France.

On Friday (Reuters Dec. 4) Russian PM Yevgeny Primakov told a gathering of "global captains of
industry" (the World Economic Forum) that Russia was committed to free markets and trade. However,
George Soros (BB/CFR), in Washington, publicly stated on Thursday that the Russian economy was
beyond international help and "out of hand." Soros (Reuters Dec. 4) had urged devaluation by Russia
before the collapse of its banking system and partial default on debts. He lost some $2 billion in Russia
before testifying in favor of the most recent IMF bailout bill. Soros (AP Dec. 4) spoke to an audience at
the Johns Hopkins University's School of Advanced International Studies. He said that taxes on short-
term capital flows was not the answer and called for "international credit insurance" to avoid future
massive bailouts.

Russia (RFE/RL Newsline Sept. 18, 1997) joined the Paris Club of creditor nations on September 17,
1997. Christian Noyer, president of the Paris Club, said that some $52 billion in debt owed to Russia by
developing countries would be reduced to $12 billion and debts would be rescheduled. In June of 1996
Russia rescheduled its $38.7 billion debt to Paris Club members.

WOLFENSOHN DENIES CRITICISM OF IMF BY WORLD BANK

The President of the World Bank (AP Dec. 3), James Wolfensohn (BB/CFR), denied Thursday that his
bank had criticized the IMF's handling of the Asian crisis. He said while economists of the sister banks
sometimes debated issues privately, the World Bank is to busy to second-guess the IMF.

SUMMERS AND TALBOTT WILL TAKE PULSE OF RUSSIA

Russian inflation (AP Dec. 4) is expected to top 70% in 1998. The ruble is trading about 20 to the dollar--
paralleling the ratio in August. More rubles may be printed unless foreign assistance comes through
soon. Lawrence H. Summers (CFR), Deputy Treasury Secretary and Strobe Talbott (CFR/RS/TC),
Deputy Secretary of State will be in Moscow for regular talks (AP Dec. 4) Dec. 10-12.

YELTSIN BEING BLAMED FOR DECLINE OF ONCE-MIGHTY RUSSIAN MILITARY

The Russian army (AP Nov.30) has been crippled by a chronic shortage of cash with little money to
repair equipment, train soldiers or to modernize technology. Yeltsin, who is posing for pictures but not
speaking publicly, was described as "pallid." The three grounds of impeachment being considered
against him are: 1) the 1991 collapse of the Soviet Union, 2) the use of force against parliament in 1993
and 3) the war against Chechnya in 1994. The Nezavisimaya Gazeta (Reuters Dec.1) said Yeltsin was only
the third most influential Russian politician (behind P.M. Yevgeny Primakov and Moscow Mayor Yuri
Luzhkov).

EX-POPULAR SINGER TURNED LAWMAKER WALKS OUT ON MAKASHOV

Iosif Kobzon (Reuters Dec. 2) walked out of the Duma Wednesday, saying he was sickened by the anti-
Semitic comments made by Duma Deputy Albert Makashov in October. Kobzon, the Soviet Union's
version of crooner Frank Sinatra, criticized Makashov for saying that Jews should be rounded up and
jailed. The Duma refused a motion of censure.

RUSSIANS ARE TURNING TO GARBAGE IN A COLD WINTER WHILE BANKERS ARE

MURDERED

In Ulan Ude, Russia, the towns people (NBC Dec. 4) are going through garbage, have no work, no help
from their government and are suffering from a brutal cold snap. Organized crime, meanwhile, is
"striking at the very heart of this infant democracy." Attacks are being made on officials who take on
corruption. From 1993 to 1998, 95 bankers, 19 journalists, 100s of business leaders and 6 members of
Parliament were gunned down.

The U.S. (AP Dec. 6) is sending $5 million in cash and 35,000 tons of wheat to Georgia. The central bank
of Georgia stopped defending its lari currency and will allow it to float as recommended by the IMF.

VODKA NATIONALIZATION ANYBODY?

Under the Czars and the Soviet regime, vodka (Austin American-Statesman Dec. 6) provided up to 30%
of all government revenue in Russia. Now the take is less than 5%. Of 600 gallons of Vodka sold in 1997,
217 million gallons were legal. It costs 5 rubles ($.30) to produce a bottle which then has a 10 ruble tax
($.60) which must be paid by the producer (not the consumer). Vodka was privatized six years ago.
Gazprom will pay 25% of its $790 million tax bill in food.

LONG MEETING HELD BETWEEN CASTRO AND U.S. SENATOR DODD

Fidel Castro held a 6-hour Havana meeting (Reuters Dec. 6) beginning on Friday with Sen. Christopher
Dodd (CFR) (Demo.-Conn.) who supports an easing of the trade embargo against Cuba. No details have
yet been made public.

FORMER MALAYSIA FINANCE MINISTER ACCUSED OF SODOMY

A former driver (Reuters Dec. 3) for sacked Malaysian finance minister Anwar Ibrahim, Azizan Abu
Bakar, said he had been made a "homosexual slave" in 1994. A book, entitled "Fifty Reasons Why
Anwar Ibrahim Cannot Become Prime Minister," accused the former finance minister of the crime of
sodomy. In September P.M. Mahathir Mohamad ousted his deputy on the grounds that he was morally
unfit. A lawyer for Anwar, who is on trial on four counts of abuse of power (AP Dec. 4) accused Azizan, a
Muslim, of "lying brazenly."Mahathir Mohamad, the Prime Minister of Malaysia, no longer allows his
country's currency to be traded outside its borders (Wall Street Journal).
HUMAN RIGHTS WATCH IS WATCHING U.S.

Human Rights Watch (CNN Dec. 2) says the United States is "out of step" on major human rights issues.
The New York-based group also praised the compassion of UN Secretary-General Kofi Annan.

U.S. NATO TROOPS ARREST SERB COMMANDER ON BEHALF OF UN

Acting pursuant to a secret UN war crimes indictment, U.S. NATO troops Wednesday (Reuters Dec. 2)
arrested Radislav Krstic, a senior Serb Army commander wanted on genocide charges. He was taken to
the Hague to join 25 other war crimes suspects in the Scheveningen detention center. The arrest was in
line with SFOR's mandate to detain indicted war criminals that are encountered in the course of duty,
said NATO Secretary General Javier Solana. The war tribunal was established by a UN Security Council
resolution in May 1993. The Serb republic (Reuters Dec. 3) reacted angrily to the arrest. James Rubin
(CFR) stated: "We are pleased that SFOR forces detained a Bosnian Serb military officer who has been
charged by the international criminal tribunal for the former Yugoslavia." He added: "All persons
indicted for war crimes, including Radovan Karadzic and General Ratko Mladic, belong in The Hague in
the custody of the international tribunal." Russia (AP Dec. 4) has protested the arrest saying it should
have been handled by the Serbs and the International Tribunal. The Russia (Reuters Dec. 4) also
denounced the system of secret UN criminal indictments. The secret October indictment by the UN
alleged offenses committed in July 1995 in the "safe haven" of Srebrenica in eastern Bosnia. Some 6,000
Muslims (News Hour Dec. 4) were murdered by the Serbs.

U.S. ELITES INTERVIEWED IN TURNER'S "COLD WAR" SERIES THIS WEEK

Among the elites interviewed for the Cuban Missile crisis story for CNN's "Cold War" series this week
(Dec. 6) were Theodore Chaikin Sorensen (CFR), Special Counsel to JFK, General William Young Smith
(CFR), Assistant U.S. Joint Chiefs of Staff, Roger Hilsman (CFR), Head of Intelligence, U.S. State
Department and Robert S. McNamara (BB/CFR/TC), JFK's Secretary of Defense.

GERMAN CHANCELLOR SCHROEDER ALREADY IN HOT WATER

With even the environmentalist Green complaining about his style, German Chancellor (Reuters Dec. 1)
is in political trouble after only five weeks in office. Unemployment is a big problem. A close Schroeder
adviser is Bodo Hombach. Advisors to British and German leaders (Irish Times Nov. 27) sat for the first
of a series of meetings aimed at putting flesh on the "Third Way." The chair of the high-level strategy
group is Peter Mandelson, British Trade and Industry Secretary. Bodo Hombach, described as "a
minister-without-portfolio in the new German government," is Schroder's closet ally in Bonn. Hombach
(German Information Center) has been the German Federal Minister of the Chancellery since October
27, 1998.

EINHORN LAWYER SAYS DEATH FRENCH LAW BANS DEATH PENALTY

At the latest Ira Samuel Einhorn hearing in France (AP Dec. 1), his defense lawyers argued that because
the death penalty is banned by French law, he should not be expedited despite a new Pennsylvania law
that would give him another trial. A decision has been promised on Jan. 12.

SESNO, CNN ANCHOR, REPORTS ON INTERNATIONAL HOLOCAUST CONFERENCE

Frank Sesno (CFR) reported on the International Holocaust Conference. Nazi art will be returned to its
owner or heirs or be auctioned off to benefit Holocaust survivors.
U.S. CAMPAIGN CONSULTANTS BUSY IN ISRAEL

Clinton 1992 campaign adviser James Carville (AP December 1) has been hired by Israeli Labor Party
opposition leader Ehud Barak. Barak, who got his M.Sc. degree in Economic Engineering Systems from
Stanford University in 1978, became chairman of the Israel Labor Party in June 1997. Carville is
married to Mary Matelin (a key player in the Bush re-election campaign). Carville will work with
pollster Stanley Greenberg and media specialist Robert Shrum. The trio has contributed to the Tony
Blair campaign in Britain and also German Chancellor Gerhard Schroder.

In 1996 Benjamin Netanyahu was advised by U.S. consultant Arthur Finkelstein. Finkelstein, a secretive
gay (Boston Magazine) political strategist, advised Bob Dole in 1996. He and his principal sidekick,
Kieran Mahoney, ran the recent losing D'Amto campaign (NY Post). The duo supposedly made
D'Amato's image "from that of a moderately conservative Republican into a gay-rights activist whose
primary intent was breast-cancer obsession." His proteges (Time Oct. 7, 1996) include admakers Alex
Castellanos and Chris Mottola, communications director John Buckley and pollster Tony Fabrizio.
Greenberg and sociologist Theda Skocpol who are, according to Nicholas Lemann, the founders of "a
loose group of intellectuals and political strategists who want to tug the Democratic Party further to the
left." Yale Press has published their 333-page book, The New Majority: Toward a Popular Progressive
Politics. Skocpol, a Professor of Government and Sociology at Harvard University, (The American
Prospect March-April 1996) advises Americans to turn off the TV and attend PTA meetings. She has won
both the Woodrow Wilson Foundation Award and the Ralph Waldo Emerson award. Havena- born Alex
Castellanis (Time Sept. 16, 1996) led the Dole advertising war on Clinton in 1996. He invented Jessie
Helm's rewarding direct-mail campaign in the late 1970s and apprenticed under attack-ad specialist
Arthur Finkelstein.

NORTH KOREANS MAKING LOUD ANTI-U.S. NOISES

North Korea (AP Dec. 3) is "on full alert for war." A large rally was held ((AP Dec. 4) with more than
100,000 North Korean soldiers, workers and student on Friday. A 1994 deal to provide two modern
nuclear reactors, worth $4.6 billion, in return for a freeze on North Korea's nuclear program, has been
shelved so far for lack of outside inspections. Admiral Joseph Prueher (Reuters Dec. 4), the top
commander for the U.S. in the Asia-Pacific region, said of N. Korea: "In my mind...it's like stepping on a
scorpion. The scorpion will sting you as it dies, but it will still sting." North Korea has a 1.2 million-
strong army and spends about 30% of its GDP on its military.

NETANYAHU SAYS PALESTINIANS ARE TO BLAME FOR BREAKDOWN

Before meeting (Reuters Dec. 3) with Donna E. Shala (CFR/TC), U.S. Health and Human Services
Secretary, Netanyahu said the peace process had broken down on the Palestinian side and it had "to be
repaired on the Palestinian side." He accused the Palestinians (Austin American Statesman Dec. 4) of
formenting lynch mobs. Dennis Ross, U.S. Envoy, is being dispatched to resolve the current dispute.
Observant Jews (Reuters Dec. 4) have asked President Clinton to change his travel plans so preparations
won't have to be made for his visit on the Jewish Friday Sabbath. There are (NBC News Dec. 5) 23,800
troops, 24 warships and 200 warplanes in the Gulf.

PALESTINIANS APPEAR TO BE IN THE REAL MONEY AS ACCORD PROCEEDS

On Monday $400 million in U.S. aid (Reuters Nov. 30) was promised to the Palestinians by Clinton. The
EU pledged $480 million over the next five years towards the $2 billion goal. A pro-Palestinian funding
meeting is planned by the World Bank in Europe in early February. Clinton will travel to Israel
December 12-15 and plans to address the Palestinian National Council as a vote is taken to purge the
PLO charter of all anti-Israel language. Today the multiple arrests of anti-Israeli terrorist Palestinians
by Arafat are scheduled to begin.

ARAFAT MAKES REFERENCES TO OCCUPATION IN JERUSALEM

Arafat said Monday (AP Dec. 1), apparently in reference to Jerusalem, that it was "occupied territory."
There are an estimated 180,000 Palestinians and 422,000 Jews now in Jerusalem. On Sunday Arafat had
a private home chat with Secretary of State Albright (CFR/TC). A new U.S.-Palestinian commision (AP
Dec. 2) has been created to channel $900 million in new U.S. aid to the West Bank and Gaza. It met
Tuesday in Albright's office. Arafat said: "We are all the sons and daughters of Abraham." Arafat also
met with CIA Director George Tenet (CFR). The CIA is ensuring that Arafat fulfills his arresting
promise to counter terrorism as outlined in the Wye River accord. Arafat was given pledges of $3 billion.
Rep. Benjamin A. Gilman (R-N.Y.), Chairman of the House International Relations Committee, said the
U.S. should retain control of the funds instead of turning them over to the PLO. Albright (AP Dec. 4)
spoke by phone Thursday with Netanyahu and was told that he had not made any new demands on the
Palestinians. James Rubin (CFR) has (Austin American Statesman Dec. 4) commented: "We do not
believe it is appropriate to add new conditions." Israel is demanding (CNN Dec. 2) that Palestinians not
speak about statehood, release of political prisoners and stop acts of violence and incitement. Nabil
Shaath, a Palestinian Cabinet Minister, said you can't add provisions to a completed agreement. But
Netanyahu said: "I can't see myself allowing an Israeli citizen to be lynched." Hanan Ashrawi, a
Palestine Council Member, stated: "I don't understand why when an Israeli settler of Israeli
fundamentalist or terrorist kills a Palestinian in cold blood this is not an act of terrorism." Ariel Sharon
said referring to Arafat: "You can't dance with a murderer."

WHITE HOUSE SEEKS ADVICE ON RELEASE OF POLLARD

The White House (Reuters Dec. 4) is requesting advice, from top government law enforcement and
national security officials, on whether to release convicted Israeli spy Jonathan Pollard from prison. He
has now (CNN Dec. 2) served 13 years of his life sentence. The request was first made in a letter from
Charles Ruff on November 16th. Three previous clemency requests have been denied--two by Clinton
and one by President Bush. CIA Director George Tenet and Attorney General Janet Reno have opposed
any pardon in the past. Tenet at least once threatened resignation. President Clinton (Austin American
Statesman Dec. 4) has set a deadline of January 11 for replies. Pollard passed thousands of highly
sensitive national security secrets to Israel in 1984-1985. Pollard (Reuters Dec. 6) has asked Clinton for a
chance to present his case. His attorney, Larry Dub, wrote to Clinton on Friday: "Mr. President, as you
well know, under Tenet the CIA has initiated a witch-hunt to rid the agency of Jews holding security
clearances." Pollard was made a citizen of Israel in 1996.

AUSTIN COMMENTATORS ASSESS MIDDLE EAST SITUATION

Sylvia Shihadeh and Robert Jensen stated in a column (Austin American Statesman Dec. 4): "(T)here is
no real peace process to put back on track. There is only a continuing process of Israel subjection of
Palestinians, with the Palestinian Authority (PA) scrambling to shore up its meager power by continuing
to sell out its people to the conquering regional power, which is supported by the United States." Jensen
is the U.T. journalism professor who recently hollared from afar at former President Bush as reported in
a previous week.

TAIWAN IS CONSIDERING BUYING EXPENSIVE U.S. DESTROYERS

Tuesday (Reuters Dec. 1) Taiwan, which is only 90 miles off the shores of China, announced it may
purchase four highly computerized Aegis destroyers from the U.S. and join the U.S.-led Theater Missile
Defense system. China may resort to force if Taiwan seeks independence rather than reunion. It strongly
opposes weapon sales to Taiwan. The Ageis ships will cost more than $1 billion each. Taiwan's current
national defense budget is about $8 billion. In March 1996 China fired unarmed ballistic missiles into
target zones just outside Taiwan's main ports. In June (Reuters Dec. 1) the first opposition party the
Chinese Democratic Party-was established. Since then activities have been detained and China's
parliament has ruled out new political groups.

In "Tug of War: The Story of Taiwan" (PBS Nov. 30), Chiang Ching-Kuo was shown being interviewed
by Katherine Graham (BB/CFR/TC) of the Washington Post. The resulting article said Chiang would
allow constitution-respecting, non-secessionist anti-communist parties in Taiwan. He was quoted: "One
day we will rejoin our people." Martial law, in effect since 1949, was lifted in Taiwan after 37 years.

Independence was a key issue in the 1996 first-time presidential elections held on the 21-million
population island. China was not pleased and mobilized its forces. Missile tests just off Taiwan shores
were made. Two U.S. carriers were sent despite the lack of a mutual defense pact or diplomatic relations.
Lee Teng-hui, a native of Taiwan, was re-elected. It was a vote for a non-provocative independence for
Taiwan. The program asked: "Is Taiwan a part of China or not?" The ambiguity "permeates everything
in Taiwan today." The future is uncertain. It was also asked whether the U.S. would commit troops to die
in defense of Taiwan if China invaded.

The program was funded by the Chang Yung-fa Foundation (EverGreen Group), Yuen Foong Yu
Group, Mecuries and Associates, Shinkong Life Insurance Company, Ltd., Taiwan Cement Corporation
(Tuntex Group), Freeman Foundation (Formosa Plastics Corporation, U.S.A.) and the United States
Institute of Peace.

Saturday (Austin American-Statesman Dec. 4) the voters of Taiwan were provided with a choice between
the Nationalists (which support a status quo looking forward towards a non-communist reunification)
and the Progressive Party (which eventually wants Taiwanese independence). China closely watched the
mayoral race between Progressive incumbant Chen Shui-bian and Nationalist (Sonny Boy Ma) Ma Ying-
jeou. In 1979 the U.S. withdrew recognition from Taiwan in favor of the Communist government of the
mainland. Chen was defeated by 53% to 47% (Austin American-Statesman Dec. 6) in his pro-
independence re-election mayoral bid in the capital city of Taipei. Progressives also lost heavily to the
Nationalists for parliamentary elections.

JAPANESE ECONOMY SEEN AS IN AN UNFIXABLE MESS

Japan's GNP (CBS Dec. 3) is the worst in five decades. It hasn't been this sick in generations. No one,
including the Japanese, knows how to handle the crisis. About 25% of the population of Japan (AP Dec.
4) will be over 65 by 2015. The declining birthrate threatens a worker shortage needed to support the
aged. There are now (AP Dec. 5) 12.1 million acres of farmland in Japan--down 27% from 16.5 million
acres in the 1960s.

U.S. MUTUAL FUND DEALERS CAN NOW DO BUSINESS IN JAPAN

Starting Tuesday (Bloomberg Morning Report Dec. 1) Japan's domestic brokers lost their lock on
Japan's market. Now U.S. firms such as Fidelity will have a chance to compete for the $10 trillion in
household Japanese wealth. At present 40% of U.S. households invest in mutual funds compared to only
4% in Japan.
TURKEY'S PRESIDENT SELECTS FORMER P.M. TO FORM NEW PARTY

Bulent Ecevit, of the Democrat Left Party, has been (Austin American-Statesman Dec. 3) named to form
a new government in Turkey. The choice of Ecevit totally bypassed a pro-Islamic leader Recai Kutan of
the Virtue Party--the country's largest. Turkey's population is overwhelmingly Muslim. On November
25, Mesut Yilmaz was given a vote of no confidence after allegations were made that he had mobster ties
and had rigged the sale of a state bank. Ecevit as Prime Minister in 1974 ordered the invasion of Cyprus
which has been divided into two hostile groups ever since. Germany (AP Dec. 2) has no capital
punishment. Turkey does.

HARVARD MBA IS GETTING HIS CHURCH MEMBERS CLOSE TO BANKS

Some 150 churches with 200,000 members (Nightly Business Report Dec. 4) are being leagued with 5
banks by Harvard MBA Jonathan Weaver, President of the Collective Banking Group. The Reverand is
getting churchgoers to deposit their money with banks in order to get better access to loans. Russell
Simmons, Senior Vice President of Riggs Banks, stated: "Opportunities here are absolutely
unlimited." He added that from a marketing view "that's a lot of folks..." So far about $10 million has
been deposited in return for $50 million in loans. The loans have been mainly for buildings, including
apartment complexes to be managed by church members. There has so far been limited success in getting
individual laons for church members but the idea is going national.

VIOLENCE LINKED TO POOR MEMORIES ON PART OF MOVIE WATCHERS

If a program or show has violent content, watchers (PBS News Hour Dec. 4) are less likely to remember
ads that accompany it. Brad Bushman of Iowa State University has done three different studies to show
this. Students got more angry after watching violence and became less attentive to business advertising.

20/20 ATTACKS EXPLOITATION OF BOY WHO SELDOM WENT TO SCHOOL

In "Children of the Harvest" an emotional entire segment of 20/20 (Dec. 4) concentrated on child labor
violations. An 11-year-old making $1,000 a week was one year too young to work for his family and felt
that he owed them for what they had done for him. Ohio has only 32 federal inspectors. In 1,500
investigations 100 below-the-age children were found.

WHITE HOUSE IS HOLDING SECRET MEETINGS TO BUILD TRUST

The next Tuesday and Wednesday meetings on Social Security (Reuters Dec. 3) will include secret
meetings to build trust, according to White House aid and former Cuomo economic adviser Gene
Sperling. Henry Aaron of the Brookings Institution (Nightly Business Report Dec. 4) said that social
security is the basic foundation on which private savings can be built. Of the 44 million who receive
Social Security, one in five rely upon it for all of their income. For two-thirds it is 50% of income. Aaron
opposed the right to invest in one's own account. He said that claims of better returns from private
investment were "simply false." The right to own one's own personal account is the "right to lose one's
shirt." We should fix Social Security "not trade it in." Jessie Jackson (CFR), spokesman for 170 citizen
groups (including the ACLU, NAACP, AFL-CIO, NOW and the National Urban League) (CNN Dec.
2) said privatization is not the answer and that the plans will require children to pay a higher Social
Security tax. He (AP Dec. 5) stated: "Privatization is pro-market but anti-family. It turns a program of
shared security into one of individual risks." The combined employee-employer tax (Austin American-
Statesman Dec. 6) is now 12.4%. In 1940 the typical social security tax was $30 a year. It is now
$4,501.20. In 1998 (AP Dec. 5) retirees gave 66% of their money to Republicans.
HUNTERS AND SPORT SHOOTERS NOW REQUIRED TO PASS WHILE-YOU-HAVE TO-WAIT
BACKGROUND CHECK

Monday (Reuters Nov. 30) buyers of all guns, not just handguns, were required to have background
checks. All gun owners with firearms at pawn shops will also need checks before they are able to recover
their weapons. An estimated 12.4 million firearms are sold (AP Dec. 1) annually in the U.S. Annual pawn
shop transactions are numbered at 2.5 million. Handgun control is angry over the lack of a waiting
period while the NRA says the new system is "an illegal national registration of gun owners. For the first
time the new law (ABC News Nov. 30) keeps a record of the type of weapon purchased. Long-guns (NBC
Nov. 30) account for about half of all firearms sales each year. Under present federal law, guns purchases
are allowed except by felons, the mentally ill and people convicted of domestic violence. A number of
states do not report all the information on those with federally disqualifying backgrounds. The new
amendment came during the hunting season and Christmas shopping. Clinton will push next year
(Austin American-Statesman Dec. 6) for a new handgun "cooling off" period and a lifetime handgun ban
on juveniles convicted of violent crimes. The first 100,000 checks resulted in preventing 400 disqualified
people from making a gun purchase.

ALSO IN THE NEWS

Wisconsin (Peaceable Texans) became the 44th state to adopt a constitutional right to keep and bear
arms amendment as voters by a margin of almost four to one adopted the following language: "The
people have the right to keep and bear arms for security, defense, hunting, recreation or any other lawful
purpose."

Last Sunday (AP Nov. 30) 74% of Swiss voters said "no" to a plan to sell narcotics at state-approved
pharmacies.

Sharon Stone (Austin American-Statesman Dec. 3), the actress who starred in "Basic Instincts," says that
parents should keep condoms around the house for use by their teen-agers.

Citigroup (Bloomberg Morning Report Dec. 1) replaced Chrysler Friday on the DJIA 30.

Personal computers for $1,300 (Moneyline Dec. 4) for cars that will eventually provide voiced e-mail are
now on sale for digital citizens and road warriors.

U.S. grain farmers are upset with Canadian subsidies (Nightly Business Report Dec. 4) but an agreement
is being negotiated by U.S. Trade Representative Charlene Barshevsky to eventually reach reciprocity.

CBS now leads the rating race (AP Dec.2) but NBC's "Nightly News" won the most recent evening news
competition.

The M-2 money supply was down $3.5 billion for the week ending Nov. 22. The slide down began on Nov.
16 at $4382 billion.

Letter bombs (Reuters Dec. 2) were discovered by police in Australia's capital addressed to tax collectors.

The average American commuter (NBC Dec. 1) spends 36 minutes behind the wheel every day.

The typical policeman, in a twenty year career, never fires his handgun once. So says L.M. Boyd (Austin
American-Statesman Dec. 2).
William Cohen (CFR/TC) (PBS News Hour Dec. 4) termed John Glenn (TC) "a hero for all the ages" in
presenting the Defense Department's highest award for public service.

Short-term business guests in a home (Austin American Statesman Dec. 2), by a vote of 5-4, do not have
constitutional protections against unreasonable searches and seizures. This was the ruling of the Supreme
Court on Tuesday.

Rockefeller trustee Bill Moyers (BB) (PBS News Hour Dec. 4) is asking for more money donations to
PBS.

Paul Gigot (BB) of the Wall Street Journal said (PBS News Hour Dec. 4) that the campaign finance
memos that suddenly got no focus were "undeveloped allegations." Mark Shields, however, said the
Republicans backed off from a hot soft money "thicket."

Tom Brokaw (CFR) described Americans (NBC Dec. 4) as "creatures of the seasons..."

An experimental program (AP Dec. 2) to raise national park fees to as much as $20 per person by four
agencies has boosted revenues without affecting the number of visitors.

Polls show 70% of Americans (Capital Gang Dec. 5) oppose Clinton's impeachment.

The $165 billion S&L bailout (Austin American-Statesman Dec. 6) will be boosted from $4 to $50
billion: "Huge payments may go to some of the nation's wealthiest and most aggressive financiers."

Speaker-elect Livingston (CNN Dec. 2) is proposing a 5-day work week for the present 3-day work week
in the House.

Venezuela's front-running presidential candidate, Lt. Co. Hugo Chavez, has hinted he may introduce
price controls (Austin American-Statesman Dec. 6) and stop payments on foreign debt if he wins the
election today.

Colorado Springs (CNN Dec. 2) is spraying public trees with a skunk odor to stop thieves from stealing
trees.

Tonight PBS will feature a sequel (6-10 p.m. CST) to its "Triumph of the Nerds" called "Nerds 2.0.1: A
brief history of the internet."

The German Air Force (Austin American Statesman Dec. 2) is claiming it's immune from paying
damages caused to livestock and people by its low-level West Texas flights. A plaintiff from Odessa,
Texas, Kaare Remme, was quoted: "What are we supposed to do? Let a foreign power operate here
illegally?"

The elections Commission (Capital Gang Dec. 5) rejected auditor's recommendations for massive
penalties for campaign violations in the 1996 campaigns. Dole (News Hour Dec. 4) would have paid
almost $18 million and Clinton $7 million.

A 60 Minutes II (AP Dec. 3) will debute on January 13.

QUOTES
"The best and the brightest on Wall Street lost billions betting that Russia was too nuclear to fail. They
did not grasp that it was too corrupt to succeed and that it did little good for the West to transfer
resources to Russia's Central Bank if it simply recycled them to a private banking system which served as
the money-laundering network for insiders."--Rep. James Leach (CFR/TC) (R-IA) (House of
Representatives--October 12, 1998) [Page: H10572]

"The National Securities Markets Improvement Act of 1996 is a significant piece of legislation that will
ensure that the U.S. securities market remains the pre-eminent securities market in the world. The U.S.
securities market has the most capital and the most investors. Over 50 million Americans own stocks, not
counting more than 10,000 institutional investors. Last year, the U.S. stock market had $7.98 trillion in
capital--close to half the amount of capital in the entire world market." --Senator Alfonse D'Amato
(October 1, 1996)

"(T)he Federal Reserve orchestrated bailout of the hedge fund Long-Term Capital Management LP
raises serious policy questions. At one point, the notional value of the Cayman Island-registered fund's
derivatives totalled about $1.2 trillion."--U.S. Rep. Ron Paul (October 02, 1998) [Page: E1894]

"When license is given to central banks to inflate (debase) a currency, they eventually do so. Politicians
love the central bank's role as lender of last resort and their power to monetize the steady stream of
public debt generated by the largesse that guarantees the politician's reelection."--U.S. Rep. Ron Paul
(October 16, 1998)

"Because a president is not a king, he or she must abide by the same laws as the rest of us." --Dr.
Barbara Battalino, Former Psychiatrist who was convicted of perjury for lying about not having sex with
a patient, Testimony before the House Judiciary Committee (NBC Dec. 1)

"I am concerned that my grandchildren will not have the same chance to earn a living from the land." --
Bob Tullus, Farm Bureau Delegate from Tom Green County (Austin American-Statesman Dec.
2) week006.htm

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

VOL. 1. NO. 5. (to November 29, 1998)

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhode Scholar

TC=Trilateralist

GOVERNORS GALORE GO TO ISRAEL-INCLUDING FRONT-RUNNER BUSH

On ABC's This Week last Sunday analyst Bill Kristol said that at the GOP
Governors gathering in New Orleans "every Republican political
operative in the world (was) trying to leech on to the prospective G. W.
Bush candidacy."
Tuesday (Reuters Nov. 24) George Walker Bush (S&B 1968) began a trip
to the Middle East in Cairo, Egypt at the invitation of his father. Bush
spokeswoman Mindy Tucker said that the elder Bush was a guest of the
Mansour Group-a private business conglomerate. The Governor will go to
Israel Sunday for a four-day visit accompanied by GOP Governors Paul
Cellucci of Massachusetts, Marc Racicot of Montana and Michael Leavitt
of Utah. Talks with Ariel Sharon and Ezer Wizman were confirmed as
scheduled by a U.S. Jewish newspaper. Bush (Austin American-
Statesman Nov. 26) will meet with Netanyahu, Cabinet ministers,
leaders of the Knesset and officials from the opposition party. A session
with Arafat is possible. Tucker said Bush was "anxious to visit the roots
of his faith." A wreath will be laid at the grave of Yitzhak Rabin (33rd M)--
the late P.M. of Israel. No public events are scheduled. Bush's visit is
being sponsored by the National Jewish Coalition-billed as "the Jewish
voice of the GOP."

Leavitt was quoted on November 27, 1994: "(R)ecently states have been
relegated to subordinate status, becoming more and more like
administrative units of the national government."

FATHER BUSH MAKES PRIVATE VISIT TO EGYPT

On Tuesday (AP Nov. 24) George Herbert Walker Bush

(CFR/M/S&B1948/TC) began a 4-day visit in Egypt as the guest of his
friend President Hosni Mubarak. It has long been predicted that the
elder Bush will also visit Egypt to celebrate the beginning of the
Millennium.

JOHN FORBES KERRY FORMS PAC

Senator John Kerry (CFR/S&B 1966) has formed a PAC (Reuters Nov. 25).
He has told associates he may lift his longtime ban on accepting PAC
money because it is so time-consuming to raise contributions. The
chances of successfully challenging Vice-President Gore went down
considerably as Janet Reno decided against appointing a special
prosecutor.

REPUBLICANS "FURIOUS" WITH RENO'S GORE DECISION

Thomas "Tom" John Brokaw (CFR), anchor of the most watched news
show, said on NBC News (Nov. 24) that Republicans are"furious" at
Attorney General Janet Reno for not appointing a special prosecutor to
investigate Vice-President Al. Gore, Jr. (CFR/M). A 19-page Reno report
found no "reasonable support for a conclusion that the Vice President
may have lied."

JFK TAPE EXERPTS FEATURED ON NBC NEWS (Nov. 24)

On Tuesday the JFK Library made public 37 hours of President

Kennedy's recordings. Just before his death JFK (CFR) regretted the
South Vietnam coup against Ngo Diem: "I feel that we must bear a good
deal of responsibility for it beginning with our cable of early August in
which we suggested the coup." JFK also said: "The way he was killed
made it particularly abhorrent." William Mark LeoGrande (CFR), Director
of theWorld Policy Journal (identified on the screen as a "Political
Scientist") said JFK listened to a wide variety of advisers and told Ike
(CFR) he had no plans to invade Cuba.

Starting in 1955 Ngo Dinh Diem was president of the U.S.-backed

government of South Vietnam. In 1961 he was re-elected but his army
failed to stop the Viet Cong rebels. Civilians resented his authoritarian
rule. Seven Buddhist monks in May of 1963 immolated themselves. After
anti-government demonstrations, army commanders, with JFK
administration approval, staged a coup. Diem and his brother, Ngo Dinh
Nhu (head of the secret police) were killed.

CREDIT CARDS CHARGED WITH LACK OF COMPETITION

Last year (News Hour Nov. 26) Americans used credit cards to buy $1
trillion worth of goods. There are two main dominant charge cards-Visa
(55%) and MasterCard (25%). The DOJ has filed its anti-trust suit, in part,
because the two use networks that are owned by the same group of
banks (Riggs National Bank shown on screen). Both have policies
excluding banks from using other cards such as Discovery and American
Express (which now has 18% of the market). Attorney Lloyd Constantine
stated: "It's really sort of a two-headed dragon. The banks are the
owners of both associations. The banks are the governors of both
associations and the banks issue both of the cards. And so...there is
very little real competition." 3.5 million retailers in the U.S. pay fees to
Visa and MasterCard. Constantine also said: "Visa and MasterCard are
probably the most long-standing and most effective cartel in the history
of the United States." He said that by 2005 there will be more than $1
trillion in annual transactions with debit cards (a form of electronic cash
withdrawal from checking accounts). Cash or checks are used in 90% of
retail transactions now in the U.S.

MERGERS, DESCRIBED AS COMPANIES IN LOVE BY THE AP, ARE UP

AGAIN

A one-day tally of at least 10 mergers, totaling some $36 to $40 billion,

took stocks up on Monday. It was the busiest merger day since August.
David Wyss, chief economist at Standard and Poor's DRI, was quoted by
the AP (Nov. 24): "Irrational pessimism has (now) been replaced with
irrational optimism." Another term for monopolization and job-reducing
mergers is to call it a business "dating game" or "corporate courting."
So far in 1998 there have been 10,000 mergers totaling $1.5 trillion (CBS
Nov.23). In 1997 mergers totaled $910 billion (Moneyline Nov.23).
Stockholders like "merger mania" hoping their holdings will be bought
up and bid up.

Mergers included Unum buying Provident for a stock swap of about $5

billion. Tyco International offered $11 billion as a White Knight for AMP
(topping a $10 billion hostile takeover bid by AlliedSignal). B.F. Goodrich
is buying Coltec for $2.2 billion. Union Pacific Resources is selling its
domestic gas operation to Duke Energy for $1.35 billion. Entergy is
selling Citi Power to AEP

Resources for $1.16 billion. Lowes is buying Eagle Hardware and Garden
for $1 billion.

Union Camp and International Paper (CNBC Nov. 24) are combining in
another "zeal to deal."

Seagull Energy (CNN Nov. 25) is buying Ocean Energy for $1.1 billion in
stock. It will be the tenth largest independent exploration and
production company in the U.S.
J.C. Penny (whose Board includes a former Governor of Texas) is buying
Genovese (drug stores) for more than $430 million in stock (CNN Nov.
24) and the assumption of $60 million of debt.

The buy will bring its total number of drugstores to 2,900 in 20 states.

Charles Peabody, Banking analyst with Mitchell Securities, said the

Deutsche buyout of Bankers Trust smacked of "a little bit of
desperation" after J.P. Morgan had earlier rejected a merger (Moneyline
Nov. 23). The buying price of $93 a share for BT will give shareholders a
43% premium. BT stock has almost doubled since a Oct. 7 low. In April
BT stock was $136.

The Tiger is set to combine with Pegasus (the red horse) to make the
world's largest industrial merger ever between. Exxon may pay $61
billion for Mobil-the number two U.S. oil company. The result of the
merger would be the world's largest publicly-traded oil company-the
second-largest marketer of gasoline in the U.S. The new $236 billion
company would still be smaller than Shell/Texaco but ahead of British
Petroleum and Amoco. If the merger goes through it would be a reversal
of the landmark 1911 anti-trust decision which broke up Standard Oil.
Exxon was formerly known as Standard Oil Co. (New Jersey). As of
December 31, 1938, Standard Oil Co. (New Jersey) stock was primarily
owned by the Rockefeller family, Standard Oil of Indiana and the
Harkness family. At one time Standard Oil (Reuters Nov. 28) controlled
90% of U.S. refining.

AOL BUYS NETSCAPE

American Online will become the world's largest internet provider,

distribute Netscape's browser and own two of the four most popular web
sites. The merger is valued at $4.2 billion. AOL (Nightly Business Report
Nov. 24) now has some 14 million on-line users and its stock has
increased from $18 3/4 on November 28, 1997 to $91 on November 24,
1998.

PRIOR RECENT MERGERS (BLOOMBERG REPORT NOV. 26)

Bell Atlantic and GTE ($79.8 billion)

SBC and Ameritech ($76.5 billion)

BP and Amoco ($62.2 billion)

AT&T and TCI ($47.3 billion)

NationsBank and BankAmerica ($42.8 billion)

Travelers and Citicorp ($37.4 billion)

Daimler-Benz and Chrysler ($36.3 billion)

MERGER PARTNERSHIPS MAY NOT ALWAYS LAST

Last month (Austin American-Statesman Nov. 28) David Couter,

BankAmerica Corp. President, resigned after a reported power struggle
with Hugh McColl, chief of merger partner NationsBank Corp.

D.E. SHAW HEDGE FUND IS FOR SALE AFTER TRADING LOSSES

D.E. Shaw, a conspicuously troubled hedge-fund, is up for sale (CNN Nov.

24) after a $370 million trading loss by Bank America that toppled the
bank's president-David Couter.

NEWMAN AND DIMON MAY PLAY KEY ROLES AFTER MERGER

AFR Net Services speculated (Nov. 23) on the Deutsche/Bankers Trust

merger. The new investment banking unit's co-chief executive may be
BT CEO Frank Newman. Former Citigroup Co-CEO, James Dimon, may
head a team of executives to "beef up" the BT operations.

PARTICULAR ECONOMIC INDICATORS SUMMARIZED

The third quarter rate of U.S. GDP was revised up to almost 4% (revised
up from 3.3%). Inflation is at 1%. Consumer confidence is up after four
straight declines. The Commerce Department reported in October (CNN
Nov. 25) that personal income was up .4% while personal spending rose.
Consumers (CNN Nov. 25) spent more than they earned for the second
straight month. One consumer was interviewed: "I have no savings. I put
it all on my American Express and then worry about it next month." 6%.
Home sales were 4.75 million. The average rate on 30-year fixed-rate
mortgages fell (AP Nov. 25) to 6.78% (down from 6.86% the week before
and 6.93% two weeks earlier).

FED-WATCHING

The Fed (CNN Moneyline Nov. 25) is watching the spread between
corporate bonds and treasury bonds. The difference in what the bonds
yield (called the "quality spread") has narrowed in recent weeks to the
same level experienced during the last recession (1990-1991).

MARKET FORECASTERS INTERVIEWED ON NOV. 23

Joseph Battipaglia, of Gruntal, was bullish as usual (Moneyline Nov. 23).

Hugh Johnson of First Albany was concerned that stocks were over-
valued. Individuals are still pouring money into mutual funds like during
the last 3-5 years. There is a rising demand and declining supply of
stocks because of all the mergers. Ned Riley, of Bank of Boston, said
that corporate earnings were still a problem and that there was a
"frenzy" in inter-net stocks. Also, the anti-growth policies demanded by
the IMF may become a problem.

Corporate profits (CNN Nov. 24) are down 6% from a year ago.

On Nightly Business Report (Nov. 23) Charles Clough, Chief Investment

Strategist for Merrill Lynch said there was still "a bubble." He said that
earnings were still a problem and that of the 30 DJIA stocks only eight
were at a new high. Also, banks, he said, were loaning money to
securities buyers as well as buying stocks for themselves. Bank
securities buying was up 100% on an annual basis since late August.
The market is running way ahead of the trend. European ARDs may be a
good investment. Asia is likely to improve.

NEW CABLE TV SHOW TO BE LAUNCHED AGAINST LIFELINE

With woman controlling an average of 70% of consumer spending and

75% of family finances (CNN Nov.24), Oxygen will soon be given to
women who watch more TV than men but not cable. Key show figures
will include former Nickelodeon boss Geraldine Laybourne, Opraph
Winfrey and Roseanne Producer Marcy Carsey. The cable station will
start on January 1 in 2000 and compete with Lifeline for younger
working women and teenagers.

YIELD ON JAPANESE 6-MONTH BONDS NEGATIVE

The yield on 6-month government bonds in Japan has dropped into

minus territory (Nightly Business Report Nov. 23). Japanese banks are
paying western banks to hold their Yen deposits as they are desperate
to finance their year-end balance positions. Western banks have put the
Yen deposits into Japanese T-bills. Wilbur Ross of Rothschild (CNN
Moneyline Nov. 25) is very interested in Japan as things become very
cheap there: "Japan has about one-third of the whole world's savings
and yet the total value of its market is half that of the U.K."

YANKEES OWNER WAS IN TALKS TO SELL BUT STILL CONTROL

George Steinbrenner, owner of the Yankees, was about to do a "double

play." The deal called for selling a majority of his shares to Cablevision
for $600 million but keeping day-to-day control. Cablevision owns
Madison Square Garden, the New York Nicks and the New York Rangers.

Its owns the broadcasting rights for all teams in the New York area
except football. Thomas Eagan, of PaineWebber, said Cablevision was
posturing itself as an "ala carte" programmer-a sports channel of
national prominence (Moneyline Nov. 23). If the Yankee sale went
through, he said, cable bills would go up to pay for the addition. But the
latest report (CNN Nov. 24) is that the talks are off due to management
concerns.

IPOS OF ESTABLISHED COMPANIES UNDERPERFORM ON AVERAGE

Lately Goldman Sachs, when the market looked weak, decided not to go
public. A Forbes article (Nov. 30) found that of 37 "biggies" that went
public since 1994, shares went up on the average by 27%-compared to a
56% rise in the S&P 500. Sometimes IPOs even enrich the old owners.

MUTUAL FUNDS AND MONEY MARKET FUND TRENDS

The net new cash flow for Stock Mutual Funds went from $6.32 billion in
September to $2.35 billion in October (Nightly Business Report Nov. 24).
In October $46 billion went into money market funds compared to $7
billion in September. Paul Kangus said the money was following interest
payments.

$13 BILLION ESTIMATED FOR EQUITY INVESTMENTS IN NOVEMBER

An estimated $13 billion will be put into equity funds this month,
according to Carl Wittnebert of Trimtabs.com Investment Research
(Boston Globe Nov. 25). This is in sharp contrast with August when $11
billion was jerked from stock funds and is also six times the level of
investment in October.

U.S. BANKRUPTCIES UP IN THIRD QUARTER BUT STILL DOWN

Bankruptcies rose 5.1% in the year ending September 30 but personal

bankruptcies were down 3.2% in the third quarter. Business
bankruptcies were down even more-by 11.7%.

PAKISTAN WILL GET $5.5 BILLION BAILOUT FROM IMF

A $5.5 Billion IMF package (AP Nov. 25) has been agreed upon for
sanctions-weakened Pakistan. Final approval will be required next
month from the IMF's board of directors. Pakistan now owes $32 billion
to international creditors. Loan conditions included structural reform in
its banking sector, tax reform to increase the tax base and an anti-
corruption provision. The loan will be used to reduce the deficit--$3.5
billion (CNN Nov 25) will be used to roll over outstanding loans.

80% WRITE-OFF OF HONDURAN DEBT TO BE SUGGESTED TO IDB AND

PARIS CLUB

Last Friday (IPS Nov. 20) IMF Managing Director Michel Camdessus said
he would recommend that 80% of Honduras's $4.3 billion be canceled.
Camdessus will make the suggestion at the Inter-American Development
Bank (IDB) that will begin on December 10 in Washington. A plea for
debt relief will also be proposed to the Paris Club that links the 15
biggest bilateral creditor countries. More than 40% of the Honduran
budget goes to servicing its foreign debt-mostly owed to multilateral
institutions.
GERGEN INTERVIEWS MOYNIHAN ON SECRECY

David Gergen (BB/CFR/TC) interviewed (News Hour Nov. 26) U.S. Demo.
Senator Daniel Patrick Moynihan (CFR) of NY who has written a book
called "Secrecy." The U.S. is "infected with a culture of secrecy" that
began with the WWI Espionage Act. There was never a law about
secrecy but much concern about it. We took the British method of
classification from secret to top secret, During WWII the Soviets began
to spy in the U.S. In the interview he told an uninterested Gergen that
Harry Dexter White was a Soviet agent in the U.S. treasury department.

When the U.S. broke the Soviet Code a KGB agent (Wyspan) was present
at the girl's school where the cable was broken. Moynihan also said we
knew about Alger Hiss and other Soviet agents. The Soviet activity was
not tremendous but it wasn't trivial. No one ever told the President, he
contended, about the "Soviet conspiracy" in the State Department. He
said the collapse of the Soviet Union came as "a complete surprise." In
a bloodless revolution, the people of Russia overthrew a totalitarian
regime of extraordinary power. Jim Charles Lehrer (CFR) was off.
Executive Producer of the New Hour, Lester Martin Crystal (CFR) was
on.

CIA LOOKING FOR MORE GOOD MEN AND WOMEN SPIES

The largest recruiting drive in a decade (Austin American-Statesman

Nov. 28) is being launched under CIA Director George Tenet (CFR) who
says today's threat environment is "more diverse, complex and
dangerous." Congress has added $1.5 million to the budgets of the U.S.'s
13 intelligence agencies. In the late 1980s the CIA payroll was at least
22,000 employees but is down to maybe 16,000 today.

GRIEDER GRIEVES ON GLOBAL CRISIS DEEPENING AND OFFERS

OPTIONS

William Grieder, author of the Secrets of the Temple (a "powder-puff"

look at the Federal Reserve) and most recently, One World, Ready or
Not, noted in The Nation (Oct. 19) Clinton's September speech to the
Council on Foreign Relations (just before Congress approved new IMF
funding) in which he called for central banks to consider joint reduction
of interest rates. Grieder predicted: "The global system will either be
reformed in fundamental ways or we will watch passively as the
destabilizing dynamics of unregulated markets continue to deliver
random destruction around the world, compounding the loss and misery
for innocent bystanders." He advocated a world "bank holiday" modeled
after FDR's actions in early 1933. He further suggested relaxing reserve
requirements so that bankers will have "plenty of breathing space to
restart international lending" and suggested "emergency controls on
capital flows" to stop "panicky flights of manic capital." Grieder's
regulatory reforms would also include a global "reconstruction finance
corporation." And, some forty poor nations would be given a general
debt forgiveness.

Grieder, formerly with Rolling Stone and a former Assistant Managing

Editor of the Washington Post, is said by some to be David Rockefeller's
godson. In his Secrets of the Temple (1987) he did reveal (p. 280) that on
three important occasions the Fed was given legislation proposed and
enacted by Democrats: the original act of 1913, the 1935 reforms that
centralized control in Washington and the 1980 Monetary Control Act
that gave the Fed universal control over reserves of private banks. Why
the Fed was called "the Temple" was not explained.

U.S. STUDENTS SAID TO BE GETTING FLUNKING GRADES

American students are getting flunking grades according to an unnamed

international study (CBS Nov.23). Fewer than 75% graduate here
compared to above 93% in Japan, Belgium and Finland.

As of last year 82.1% of Americans had completed high school (NBC

Nov. 24). 23.9% had gotten a bachelor's degree. The 41-nation study
showed that U.S. students scored lower than students from nine other
countries in science. In Massachusetts two-thirds of 8th graders failed or
needed improvement in both math and science. William Schmid of
Michigan State University said that U.S. education was 'sinking" and
that "our curriculum is just not up to international standards." With some
340,000 high-tech jobs un-filled, companies are lobbying Congress to let
190,000 well-trained immigrants enter the U.S.
In the first 10 months of 1998 (Austin American-Statesman Nov. 28)
523,000 U.S. jobs were cut-200,000 more than during the same period
last year. Some 3.6 million workers were laid off in the two year period
ending December 1997.

NATIONWIDE "BUCKLE-KIDS-UP OR ELSE" CAMPAIGN LAUNCHED

Citing statistics that half of children involved in accidents are not

wearing seat-belts, a nation-wide buckle-up crackdown is in operation
(CBS Nov.23). Adult drivers with unbuckled children will be stopped and
fined by more than 5,000 police departments. Washington D.C. Police
Chief Charles Ramsey stated: "No exceptions, no excuses." Last year a
similar Memorial Day operation cut fatalities by one-third. It is projected
that 700 lives can be saved. The CBS reported ended by saying that one-
third of Americans still fail to wear seat-belts and therefore are guilty of
"a deadly habit." Rage in the air is getting billing with road rage lately.

AIRPORT X-RAY OPTION NOW AVAILABLE IN NEW YORK AND MIAMI

U.S. Customs (AP Nov. 25), which performs about 1,700 drug-suspect
"strip-searches" annually, is giving airline passengers the less
embarrassing option of being x-rayed at a nearby hospital. Maybe later
all boarding passengers will be forced to walk under a gigantic clothes-
penetrating beam but this, of course, has not even been suggested.
About 35% of those searched annually are found to be carrying drugs.
The Customs Service is training employees to use "magnetic imaging
machines" that may be used to replace strip searches at both JFK (NY)
and Miami International.

SOCIAL SECURITY FUND ONE REASON FOR CLAIM OF A SURPLUS

Bob Livingston revealed (Meet the Press Nov. 22) that the Social
Security "trust fund" has been used to reduce the deficit since LBJ
instituted the practice in 1967. Interviewer Tim Russert said that when
Reagan first became President the deficit was $60 billion and $200
billion in 1988. Livingston said that Reagan had increased the defense
budget which caused the collapse of the Soviet empire. The new
Speaker said: "The American people are over-taxed and they deserve a
tax cut..."

TONY BLAIR BILL WOULD ABOLISH VOTING RIGHTS OF HEREDITARY

PEERS

A bill now before the British Parliament would abolish the parliamentary
voting rights of hereditary peers-who the AP (Nov.24) described as "the
mainly Conservative scions of ancient blue-blood families." Of 1,164
peers, 759 are hereditary. Blair will give up his right to appoint life
peers. Blair also plans greater protection for rape victims, reform of the
legal aid system and a major shakeup of welfare benefits. Other bills
could provide for election of the mayor of London and more labor union
rights. The speaker will now be able to turn his back on the Queen.

PUT SADDAM ON TRIAL FOR WAR CRIMES, SAYS JUNIOR MINISTER OF

GREAT BRITAIN

Derek Fatchett, a junior foreign minister, told representatives of 16 Iraqi

dissidents that Britain supports proposals to set up a U.N. court to try
Saddam Hussein for war crimes. Reuters (Nov. 24) said that Fatchett
urged an international "indict Saddam" campaign. Last month Clinton
signed a $93 million aid bill for foes of Saddam Hussein. Last Sunday Ed
Bradley interviewed a defector from Hussein's inner circle. Since the
Gulf War Saddam has built 48 enormous new presidential complexes.
Iraq smuggles about 100,000 barrels of oil a day using the Iranian flag.
His eldest son, Odai, has a room full of money.

TURKEY SEEKS EXTRADITION OF REBEL LEADER

Turkey is seeking to extradite Ocalan-a Kurdish rebel leader who is

holed-up in Italy. He is described (CNN Nov. 25) as a most wanted man
who is blamed for 29,000 dead in a "separatist" war. Turkey's coalition
government fell apart Wednesday after a no-confidence vote. It was the
5th government to fall in three years. Turkey may pass a bill forbidding
the death penalty.

CASTRO SAYS HE IS "ABOVE ARREST"

According to Martin Arostegui, writing in Insight Magazine (Dec. 7),

Castro was asked in Spain, while speaking to an international
conference of Latin American presidents, whether he was afraid of an
extradition order. He replied: "I belong to a species which is above
arrest."

PINOCHET HELD NOT IMMUNE IN 3-2 LAW LORDS DECISION

A major of the five Law Lords decided Wednesday (Reuters Nov. 25) that
Augusto Pinochet has no immunity from prosecution on charges of
murder, torture and genocide. The ruling held that the crimes alleged
were international in nature that could never be normal acts undertaken
in the functions of a head of state. Former sovereigns have narrower
immunity than sitting rulers. British Home Secretary Jack Shaw
originally had until December 2nd to decide whether or not to block
Pinochet's extradition. A Chilean plane was waiting near London as the
Law Lords announced their decision.

David Bull, of Amnesty International, said the verdict was "a message to
all murdering regimes." Kenneth Roth, Executive Director of Human
Rights Watch, said: "This decision will give future tyrants pause before
they embark on a path of mass murder." Alfred Rubin, a Tufts Professor
of International Law, said that Spain could ask the U.S. to extradite
Henry Kissinger (BB/CFR/TC) for involvement in Allende's overthrow as
well as President Nixon (if he were still alive).

Andreas Frank Lowenfeld (CFR), Professor of International Law at New

York University Law School, said (CNN Nov 25) that: "I think it is clearly
an unprecedented decision. It puts the House of Lords...in the position of
saying yes there are universal crimes of genocide, torture, terrorism,
disappearance and so on...that cannot be granted any kind of immunity."
He added: "(T)he traditions of immunity don't apply when certain acts
that cannot be performed lawfully by a state or the head of state are at
issue. In that sense it is a novel ruling in a peacetime context."
The NY professor also said that the crimes alleged were "made unlawful
in these particular conventions." When asked if former President Bush
could be tried in some country, he said: "Bush did send 20,000 troops to
kidnap former President Noreiga of Panama. And that one is more
questionable."

British Barrister Geoffrey Robertson said (CNN Nov. 25) that it was "a
historic moment for human rights, a great day for international law. The
result of this ruling is that the torturers of the 21st century can tremble
in a way that those of the last half century since Nuernberg have had no
worries at all."

Jack Shaw will need another week to decide and will announce his
decision on December 9.

Pinochet has been supported by Margaret Thatcher who believes he

should be allowed to return to Chile. A deal may be made soon (AP Nov.
28) to allow Pinochet to return home to stand trial.

Salvador Allende Gossens (1908-1973) was elected as president in Chile

in 1970. He nationalized the copper industry and instituted various
socialist programs. After strikes in 1972 he declared martial law. After a
failed coup attempt, the second coup succeeded in 1973 and Allende
was killed. General Augusto Pinochet Ugarto became dictator of Chile.
In the mid-1970s, the role of the CIA and U.S. State Department in
creating strikes, destabilizing the government and ousting Allende was
made public.

The European parliament in Strasburg voted almost unanimously for

Pinochet's extradition.

TED TURNER'S COLD WAR SERIES FEATURES LOTS OF ELITES

The series concept was developed by Ted Turner (M). Of three

consultants, one is Lawrence Freedman (BBGB), head of the department
of War Studies, Kings College, U.K. Another of the three consultants is
John Lewis Gaddis (CFR). The 1945-1991 series is also affiliated with
the Cold War International History Project of the Woodrow Wilson
International Center in Washington D.C. and the Institute of Universal
History in Moscow. Last Sunday those interviewed included Brent
Scowcroft (BB/CFR/TC) (Bush National Security Adviser), Walt Whitman
Rostow (CFR) (Aid to JFK), McGeorge Bundy (BB/CFR/S&B 1940) and
Raymond L. Garthoff (CFR) (U.S. State Department). During the Berlin
Crisis LBJ went as JFK's personal representative accompanied by
General Lucius Clay (CFR). General Clay ordered armed escorts for U.S.
diplomats and move U.S. tanks up to "Checkpoint Charlie." Clay was
Senior partner for Lehman Brothers (s. 1963) as well as Chairman of
Continental Can Co. He was also a director for Allied Chemical Corp.,
American Export Corp., Standard Brands, Inc., Chase International
Investment Corp. and Cental Savings Bank.

BLACKS FOUR TIMES MORE LIKELY TO BE PREJUDICED SAYS FOXMAN

The national director of the Anti-Defamation League (ADL), Abraham

Foxman, said Monday that blacks are four times as likely as whites to
hold prejudiced views of Jews. Foxman blamed Nation of Islam leader
Louis Farrakhan and others for promoting anti-Semitism. When Mike
Wallace interviewed Louis Farrakhan, on 60 Minutes, and told him he
was Jewish, Farrakhan replied: "There are those who say they are
Jewish and those who are not." In 1992 the ADL survey showed that
20% of Americans agreed that "Jews have too much power" and "Jews
are more loyal to Israel than America." The latest poll shows only 12%
now maintain such opinions. The fraternal ADL and the Federal Reserve
System were both created in 1913. According to the columnist Jonathan
Rosenblum, in the Jewish World Review (Nov. 24), less than 7% of
American Jews describe the study of the word of God as a crucial
aspect of their life "and far fewer actually engage in such study." Only
20% now strongly identify themselves with Israel.

FORMER BLACK PANTHER LEADER TO MAKE CHICAGO MAYORAL BID

U.S. Representative Bobby Rush, a former Black Panther leader,

announced Monday that he would run against fellow Democrat Richard
M. Daley in February. He was quoted by the AP (Nov. 24): "We must
reclaim our city from those who manage it as a personal fiefdom for the
benefit of a small group of cronies." In 1983 Harold Washington beat
Dailey in the primary to become the city's first black mayor. Rush served
six months in prison for illegal possession of firearms. He has since
promoted gun control legislation and loans for businesses in inner cities.

YELTSIN HOLDS 40 MINUTE HOSPITAL RECEPTION ROOM MEETING

WITH ZEMIN

According to the AP (Nov.23) Yeltsin met Chinese President Jiang Zemin

Monday at the Central Clinic Hospital despite a 102-degree fever and
pneumonia. The pair agreed on a statement on border demarcation and
discussed bilateral cooperation and international issues. Yeltsin agreed
to pay a visit to China next year for the 7th Sino-Russian summit. Zemin
was asked how Yeltsin was doing. He threw up his hands and said:
"Fine." After meeting Yeltsin, Zemin met with Russian Communist leader
Gennady Zyuganov at the Duma in Moscow. Two weeks ago a diplomat
said Yeltsin looked like "a robot on drugs." Under the Russian
Constitution the Prime Minister takes over for three months if a
president dies or is incapacitated.

MOSCOW MAYOR HIRES YELTSIN'S FORMER PRESS SECRETARY

On Tuesday Moscow Mayor Yuri Luzhkov presented Sergei

Yastrzhembsky, former Yeltsin press secretary, to the city council as his
deputy for public relations and international affairs.

FUR MAY FLY IN RUSSIA AS FASHION MARCHES ON DURING CRISIS

Vladimir Zhirinovsky attended an elite Italian fashion house's opening

and assured the crowd that wealthy Russians will be unscathed by the
current crisis. According to the AP (Nov. 24), he was asked who would
have the money to afford the fur coats of Fendi. He replied:
"(Government) ministers and (parliament) deputies." The Russian Center
of the Standard of Living says 79 million Russians, out of a population of
147 million, now live in poverty.

In an April 2, 1989 interview, Zibigniew Brzezinski (BB/CFR/TC) told Brian

Lamb: "Socialism in the Soviet Union is socialism for one class. For the
ruling class. That is to say if you are a member of the social elite, you
have access to special hospitals, your children go to special schools,
you have special resorts, you have special shops that you go to, you
have special clinics. Everything for the elite is special."

Since August 17th, the average Russian's income has gone down by two-
thirds and many work without any pay. Russia (Austin American-
Statesman Nov. 28) has about 280,000 small farms occupying 6% of its
arable land.

IMF MUTE AS RUSSIA SEEKS $4.3 BILLION OF $22.6 BILLION PENDING

LOAN

IMF officials left Russia on Tuesday (Reuters Nov. 25) without giving any
date for the release of $4.3 billion. The latest budget does little to boost
tax revenues and supports unprofitable enterprises. P.M. Primakov
(Reuters Nov 29) is in the middle between the IMF and Moscow's
Communist-led parliament. He dismissed IMF officials as unworldly
"kids." Michel Camdessus, a former French central banker, and now IMF
Managing Director, will arrive in Moscow Tuesday.

More than 70% of Russian banks (AP Nov. 28) are in the hands of the
Mafia.

CHERNOBYL CLEAN-UP REMAINS UNDONE AND NEEDS MORE MONEY

The G-7 countries (NBC Nov. 28) (including the U.S.) have spent more
than $300 million to seal off Chernobyl. However, that's only half the
funding needed to deal with the infamous site. The cash-strapped
Ukraine is appealing to the world for more money to keep the world
safely shielded from Chernobyl.

ZEMIN TO WARN BOTH JAPAN AND U.S. REGARDING TAIWAN

The South China Morning Post (Nov. 24) said that Chinese President
Jiang Zemin is expected to issue "his toughest warning to date against
'meddling' in Taiwan by Japan and the US." Clinton told Zemin (Reuters
Nov. 25) that "we don't support independence for Taiwan, or 'two
Chinas' or 'one Taiwan, one China', and we don't believe Taiwan should
be a member in any organization for which statehood is a requirement."
Zemin (News Hour Nov. 26).was not given a written Japanese statement
but told verbally of "deep remorse." Japan also endorsed China's claim
to Taiwan but wouldn't endorse stronger language sought by China.
Zemin was the first Chinese head of state to visit Japan since WWII.
Japan (Austin American-Statesman Nov. 28) gave China $3.2 billion in
loans over two years to fight pollution and improve flood control.

INDONESIANS EATING GARBAGE TO SURVIVE IN WORLD'S FOURTH

MOST POPULATED COUNTRY

In Indonesia (NBC Nov. 26) people are picking through and eating
garbage to survive. Dr. Robert Kim-Farley, of the World Health
Organization, said that because of malnutrition: "We will see a
generation that is not able to be competitive in a global economy." One
of three Indonesian children dropped out of school last year. Stephen
Woodhouse of UNICEF said: "They'll become street-workers.

NATO SHOULD BE FREE TO ACT WITHOUT SPECIFIC UN MANDATE

SAYS U.S.

The U.S. wants NATO (Austin American-Statesman Nov. 28) to be able to

act in exceptional circumstances without a specific mandate from the
UN Security Council. During the Kosovo crisis NATO authorized military
action on its own against Yugoslavia.

USS ENTERPRISE AND MARINE ESCORT SHIPS ARRIVE IN GULF

With the arrival of the USS Enterprise in the Gulf, the AP reports there
are now some 19 warships with 17,000 sailors and marines in the region.

NEW ARAB AIRPORT AT GAZA OPEN FOR BUSINESS

Celebrations have been wild over the new international airport at Gaza.
No Israeli will sit in the control tower or operate any area of the airport.
But Israel will be able to shut down the airport at any time, will pre-
approve all flight schedules, passenger lists and decide which airlines
can land.

Yasser Arafat (AP Nov.25) celebrated the opening with a plane trip to
Paris.
INFLUX IN RUSSIA TO ISRAEL IMMIGRANTS EXPECTED

An additional 20,000-to 60,000 additional Jews may immigrate next year

(Israel Alert Nov. 30) after recent statements by a communist Duma
member blaming Jews for economic woes.

KISSINGER SAYS NO MORE LAND TO PALESTINIANS

At a dinner organized by Ben Gurion University in New York, Henry

Kissinger (BB/CFR/TC) said (Israel Alert Nov. 30) that no more territory
should be turned over until permanent status talks begin due to security
concerns.

FINANCE MINISTER MEETS ON $1.2 BILLION REDEPLOYMENT AID

Israel Finance Minister Yaakov Ne'eman met with Under-Secretary of

State Stuart Eisenstadt and Assistant Secretary of State Martin Indyk on
November 22 (Israel Alert Nov. 30). The aid detail teams will begin work
within a week.

PLO TO BE GIVEN DONOR FETE ON MONDAY

According to IsraelWire (Nov.22) a Washington "donor function" will be

held on November 30 to attract new investors for the PLO Authority (PA).
Clinton spokesman James P. Rubin (CFR)

said some 50 nations and multilateral organizations have been invited to

attend. Pledges of $4 billion resulted from the last conference after the
signing of the Oslo accords in 1993. Washington will also boost its aid
for the PA from the $500 million pledged in 1993. Aid to Israel, now at $3
billion annually, will increased to more than $4 annually.

SENATOR LUGAR INTERVIEWED IN MOSCOW

Senator Richard Lugar (RS) said on ABC's This Week last Sunday that
failure to use force on Iraq last week was a mistake: "This is a menace,
not only to the area but the national security of the United States."
Ground forces should not be ruled out. George Will (TC) asked Lugar how
the U.S. could topple Saddam Hussein without ground troops. Lugar
answered: "There clearly has to be that possibility." Will also said there
was a need for men on the ground "with rifles." George Stephanopoulos
(CFR/RS) said that it was surprising that the president's lawyer made no
defense: "He simply attacked Ken Starr." Will predicted that
impeachment will come out of Hyde's committee but die on the House
floor.

MEXICO PRIVATE BANK BAILOUT FIGURE WENT UP $12 BILLION

A Mexico private bank bailout (Austin American-Statesman Nov. 28) may

total as high as $67 billion. Legislators shouted "resign, resign" to
Finance Secretary Jose Angel Gurrig late Thursday. In March the
estimate of the cost of the bailout was only $55 billion. The increase
was blamed on accrued interest.

NO BANK RUNS PLEASE (OUR VAULTS ARE USUALLY VERY EMPTY)

The Fed, concerned about bank runs, has printed an additional $500 for
each U.S. family to prepare for the YD 2000 crisis (CNN Nov. 24). James
Chessen, Economist with the American Bankers Association, urged
depositors to stick with their banks: "The safest place for your money is
a bank."

PANICKY TAIWAN DEPOSITORS WITHDRAW FUNDS

The Taichung Business Bank was flooded with withdrawing depositors

(AP Nov.25) after the bank's chairman and other directors were
dismissed on charges of making improper loans to shaky investment and
property concerns.

MANDATORY FDIC DIRECT DEPOSIT AND CUSTOMER PROFILE

REGULATIONS PENDING

According to WorldNetDaily (Nov. 24) banks will profit handsomely if

pending as new regulations are implemented to require all forms of pay
to be made through compulsory direct deposit. New laws may prohibit
any cash transactions between individuals or companies in excess of
$100. All FDIC insured nonmember banks will soon also be required to
develop and maintain intrusive "Know Your Customer" programs. The
Christian Alert Network, headed by the Rev. Curt Tomlin, says that the
FDIC has given the public until December 27 to offer comments. The
proposed regulation is based on Section 8(s)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 18189s) (1), as amended by section 259(a)(2) of
the Crime Control Act of 1990 (Pub. L. 101-647). Comments may be sent
to Robert E. Feldman, Executive Secretary, Attn: Comments/OES,
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington,
DC 20429 or faxed to (202) 898-3838.

COSTLY U.S. USE OF CHECKS SPURS FEDERAL RESERVE AND

TREASURY TO ENCOURAGE DIRECT DEPOSIT

Lucinda Harper of the Wall Street Journal reported that 65 billion checks
will be written this year. Alice Mitchell Rivlin (CFR/TC), Vice-Chairwoman
of the Federal Reserve, said the U.S. is the only industrial country in
which per-capita check-writing is rising. BIS data says that non-check
payments per-person are 25% in the U.S. compared to 75% in Japan,
70% in Europe and 59% in Canada. Checks cost the nation $181 billion a
year and are 20 times more likely to invite fraud. The Federal Reserve,
Treasury Department and other groups have formed the Direct Deposit
Coalition to persuade more businesses to use direct deposit services.
Only 30% of small businesses offer their employees the choice of direct
deposit now.

REPEAT FLOOD VICTIMS MAY LOOSE FEMA INSURANCE

After spending more than $20 billion in the last ten years (AP) to rebuild
from natural disasters, FEMA is planning "more muscular tactics" to
discourage people from living in flood-prong areas.

Those with repeated losses may be cut-off from federal insurance.

BUREAUCRATS BENEFIT THE MOST FROM AID TO THE POOR

According to Walter Williams, an Economics Professor, if all funds

appropriated for the poor were given directly to them, a poor family of
four would receive $34,000 a year. However, once the administrators
take their $26,000 cut, the poor end up only with $8,000 a year. Lewis K.
Uhler, SETTING LIMITS 94 (1989). Thomas Sowell (Austin American-
Statesman Nov. 21) said of bureaucrats: "The one thing that all
bureaucrats have in common is the notion that the bureaucracy is never
wrong. If anything has gone wrong, it had to be someone else's fault,
preferably the fault of whoever complains about the bureaucracy." He
added: "When some people speak glowingly of how 'society' ought to
solve this or that problem, they fail to note that 'society' really means
government, and government in the flesh consists of bureaucrats,
politicians and judges."

MCDOUGAL ACQUITTED ON ALL NINE COUNTS

Susan McDougal, who has spent 18 months in jail for refusing to give
Whitewater testimony, was found not guilty Monday after a ten-week
trial. The jury's acquittal was on nine separate counts- including forgery
and failure to pay state income taxes. She now faces a February 16 trial
on charges of contempt and obstruction of justice.

WOLFMAN BLITZER INTERVIEWS LARRY KING ABOUT HIS NEW BOOK

In King's very first appearance as a guest on the Larry King Show (Nov.
28), Wolf Blitzer held up Kings' book, "Powerful Prayers," written at the
suggestion of his daughter. King said as an admitted agnostic, he began
the book as a "1" but now is a "4" after being guided by an Orthodox
Rabbi in a journey. Among the offerings during the interview: Barbara
and George Bush pray every night and when not together do so over the
phone. Margaret Thatcher will discuss any subject but prayer. Dr.
Kovorkian doe not pray because he has seen too much death. King said
in an aside to fill-in and White House correspondent Blitzer: "We're both
Jewish." As a child King feared the God of the Old Testament. Today he
says: "There's something there, some power. I don't know what it is." He
also said Clinton had agree to contribute to the book seven times but
didn't. Blitzer said Clinton has become more spiritual and goes to
church.

BEING A GRANDMOTHER IS INCREASINGLY DEADLY

A study of 100 grandmothers (NBC Nov. 26) found that 75% were
overweight, 50% had high blood pressure and 25% were diabetic. Since
1970 the number of U.S. households headed by grandparents has
increased by 76% (from 2.2 million to 3.9 million in 1997). Nearly half of
the grandparents are women raising children all alone.

HYPERREGULATIONIST YALE PSYCHOLOGY PROFESSOR ADVOCATES

FOOD POLICING

Lisa Ronthal (Nov. 24) reports that Yale Professor Kelly Brownell wants
fat to go the way of tobacco and contends that "the government should
subsidize the sale of healthy food, increase the cost of non-nutritional
foods through taxes, and regulate food advertising to discourage
unhealthy practices." Brownell sees no difference between Ronald
McDonald and Joe Camel. Ronthal also stated: "Tobacco was just for
openers. Guns are next." Kate O'Beirne, with National Review, said
(Capital Gang Nov. 28) that public health fanatics want subsidies for
favored foods and taxes "on all the good stuff."

DESIGNER OR "FUNCTIONAL" FOODS BEING MADE

Coming soon to you. Eggs that fight heart disease. Broccoli that fights
cancer. Margarine that lowers cholesterol. Functional foods (NBC Nov.
26) will be a $30-$40 billion market in the next 5-10 years. Out of 50
varieties of broccoli at the University of Illinois, some have thirty times
the cancer-fighting compound. It will soon be part of everyday life to
feed your family vegetables that have added nutritional power.

NEW FBI IS TURNING TO SCHOLARS TO AVOID STAND-OFF PROBLEMS

The FBI (NBC Nov.28) is turning to scholars to learn better how to keep
the peace.

HATCH SAYS THAT WITHOUT SOFT MONEY REPUBLICANS WOULD DIE

U.S. Senator Orrin Hatch said (Capital Gang Nov. 28) that unions spend
between $100 and $500 million every two years in local, state and
federal elections. More than 99% goes to support Democrats. He said
that there is nothing Republicans can do to match that: "You take away
soft money and we are dead."

CHIEF JUSTICE TALKS WITH BRIAN LAMB

Chief Justice William Rehnquist (C-SPAN Nov. 28) said the number of
cases taken by the Supreme Court has declined from 150 cases when he
started to about 75-80 cases a year. He said he found Justice Holme's
"pithy" condensed opinions unsatisfying but they were very refreshing to
read. Marshall is a hero. Rehnquist pointed out that the House of Lords
in England lacks the power to set aside an act of Parliament-unlike the
U.S. Court.

NEW BATF DATA TO BE USED IN NEW YORK ANTI-GUN CASE

Beside the New Orleans and Chicago filings against gun manufacturers,
another case has been filed by victims of gun violence and is set to be
heard in Federal District Court next January in Brooklyn, New York. New
statistics (Austin American-Statesman Nov. 28) are expected to be used
by the plaintiffs (in Hamilton v. Accu-Tek) that contend that nearly 40%
of all handguns used in crime have been purchased from licensed
dealers within the preceding three years. David Kennedy, Director of the
Boston Gun Project and researcher at the Harvard JFK School, says the
data "is hugely significant."

BIOGRAPHY FEATURE ON NORIEGA DETAILS HIS LIFE BEFORE

FEDERAL PRISON

Jack Perkins on Biography (A&E Nov. 25) said it has been six years
since Manuel Antonio Noriega went to prison for drug charges. He rose
to power by violence and was nick-named "pineapple face" after chick
pox in his youth. Noriega lied about his age to enter military school after
failing in medical school but he graduated with honors. When he got
drunk he hated women. He raped a prostitute and a teen-aged girl but
got protection. After a good marriage he became head of regional
intelligence in 1967 and worked for the CIA. In U.S. training his grade
was the top of his class. He eventually came to power after his military
mentor, Trujillo, died in a plane crash on July 30, 1981. Noriega became
the first non-white military leader of Panama. In 1984 his selected
candidate became president. He kept a mistress. The head of the CIA,
William Casey, thanked him personally for his work after he spied on
Castro.
When Dr. Hugo Spadafora tried to expose Noriega, his headless body
turned up in Costa Rica after being arrested by Panamanians (Noriega
was in London at the time). This began the U.S.'s disillusionment with
Noriega. In February 1988 he was indicted in Miami for drugs. When the
U.S. delegation cautioned him, he replied he was the voice of the
people-not millionaires. His second in command, Roberto Diaz Herrera,
tried a coup and was kicked out of the army. Herrera then made public
murder charges which led to protests that were repressed by the so-
called populist dictator. President Reagan warned him to "stand down."
Vice-President Bush said not to negotiate with him. The CIA and Defense
Department disagreed with the State Department. Noriega broke off
negotiations saying: "I don't speak to Americans-only to Panamanians."

Elliot Abrams (CFR), former U.S. Secretary of State and also with the
Hudson Institute, said that when Noriega said "no" to Reagan "his fate
was sealed." Bush decided he had to go to jail and proved that he wasn't
a wimp. After Jimmy Carter (CFR/TC) took the trouble to oversee
elections in 1989, Noriega simply announced that his candidate had
won. Then Vice President Guillermo Ford was beaten up by thugs. Bush
backed an October coup attempt that failed when the Panamanian
rebels released their captive (Noriega). The rebel leaders were
executed. Noriega claimed: "The Americans are imperialists and
piranhas who want to gobble up the Panama canal."

He used unnecessary bombast and rhetorically declared war on

America.

On December 20, 1989 President Bush ordered 12,000 troops to invade

Panama. Noriega was captured at the Vatican embassy after several
days of loud rock music and a promise that he would not be executed.
23 U.S. soldiers died in the foreign invasion that was unprecedented
since Mary, Queen of Scots. The only evidence against him came from
convicted drug traffickers. He was convicted by a jury after a 9-month
trial and given a 40-year sentence. He is the only U.S. prisoner who
wears a general's uniform and is the only POW. His lawyers want his
sentence reduced to15 years and are appealing. Meanwhile, few want
him back in Panama. He says he is now a Christian and does not hate
former president Bush.
HOPELESS BATTLE AGAINST DRUGS ON SOUTHERN BORDER

Bill Curtis (A&E Nov. 25) ended his report on "Drugs on the Border" with
a "lost cause" slant.

10 years ago Columbia was the problem-now it is Mexico. About 60-65%

of the cocaine in the U.S. comes from the 2,000-mile Mexico-U.S. border.
If 19 of 20 shipments are caught, there is still a profit. Don Ferrarone,
former Texas Border DEA Chief, said it was just blowing smoke to begin
a defense at the Texas border-the save havens of the drug lords must be
dealt with. The criminals have co-opted all Mexican government
agencies that should be working against them. Mexican police don't
cooperate and some even help get the drugs up to the U.S. border.
Juarez is now the main entry point. 100,000 trucks crossed at Laredo
last year. Now 1 million trucks cross. Some feel the government is only
making a show. Ferrarone said seizures should be increased to stop the
money going back south after the drugs are sold. During the show one of
the agents had a El Paso Metro badge with a skeleton head in the
middle. A major raid was made on a trucking operation. When a
residence was busted, the focus was on documents and weapons. The
raid netted new cars, two handguns and $8.200. No drugs were reported
found. The show said you would need a U.S. soldier posted every 50
yards on the 2,000-mile border to stop the flow.

OTHER NEWS FROM THIS WEEK

Cigarette prices at wholesale (CNN Nov. 24) have been raised $0.45 a
pack following the $206 billion tobacco settlement announced last
week.

Italy's Constitution (CNN Nov. 24) forbids extradition of suspects who

face the death penalty.

Diane Sawyer (CFR) interviewed Kenneth Starr on Wednesday's 20/20.

David R. Gergen (BB/CFR/TC) appeared on Larry King (CNN Nov. 27) with
Wolf Blitzer. A Jessie Jones biography (Nov. 27) by Walter Cronkite
included interviews with Arthur Schlesinger, Jr. (CFR) and Paul M.
Warburg Professor John Kenneth Galbraith. Jones had billions of dollars
to spend without getting anyone's approval.
Jack Kovorkian may defend himself on 1st-degree murder charges.

The Swiss (Reuters Nov. 29) are voting today on legalizing drugs.

B'nai B'rith International has nominated Jordan's King Hussein (33rd M)

for the Nobel Peace Prize. In a letter to the Nobel Committee, B'nai
B'rith president Richard Heideman said his participation was
"instrumental" in concluding the October 23rd Wye River accord.

Consumers Report (NBC Nov.24) studied late packages and said FedEx
(3%) was best followed by UPS (6%) and the U.S. Post Office (35%). But
a post office official said changes had been made to bring its service up
to speed.

Animals and humans have more than 250 diseases in common.

Pope John Paul II Friday (Austin American-Statesman Nov. 28) called for
better-off nations to ease or substantially eliminate Third World debt.

EPA regulations enacted in September 1988 (Austin American-

Statesman Nov. 28) for underground storage tanks will be enforced
beginning December 22. The average compliance cost is between
$7,000 and $10,000-the most severely impacted will be Mom and Pop
stations.

QUOTES ON DEBT

"International law is clear on this point, stipulating in absolute terms

that, whether a change in government springs from internal revolution or
from invasion by an outside conqueror, the new government is legally
responsible for the country's outstanding debts. Like the rules of war,
the rules of sovereign borrowing are unaffectedly civilized." --Judy
Shelton, THE COMING SOVIET CRASH 90 (1989).

"I am afraid the ordinary citizen will not like to be told that banks can
and do create money...And they who control the credit of a nation direct
the policies of governments and hold in the hollow of their hands the
destiny of the people." Reginald M. McKenna, Chairman of the Board of
the Midlands Bank in England, quoted by Carroll Quigley, TRAGEDY AND
HOPE 325 (1966).
"We must make our election between economy and liberty, or profusion
and servitude. If we run into such debts as that we must be taxed in our
meat and in our drink, in our necessities and our comforts, in our labors
and our amusements, for our callings and our creeds...our people...must
come to labor sixteen hours in the twenty four, give our earnings of
fifteen of these to the government...have no time to think, no means of
calling our own mis-managers to account; but be glad to obtain
sustenance by hiring ourselves out to rivet their chains on the necks of
our fellow- sufferers...And this is the tendency of all human governments
...till the bulk of the society is reduced to be mere automatons of
misery... And the forehorse of this frightful team is public debt. Taxation
follows that, and in its train wretchedness and oppression." -Thomas
Jefferson (1816), BASIC WRITINGS OF THOMAS JEFFERSON, pp. 749-50.

"There is not a man in the country that can't make a living for himself
and his family. But he can't make a living for them and his government,
too, not the way this government is living." --Will Rogers

"If you control food, you control people, If you control oil, you control
nations. If you control money, you control the world." --Henry Kissinger
week006.htm

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

VOL. 1. NO. 4. (to November 22, 1998)

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar

TC=Trilateralist S&B=Skull & Bones

GOVERNORS GEORGE AND JEB BUSH MAKE JOINT NEW ORLEANS

APPEARANCE

The AP (Nov. 19) reported a "whimsical news conference" by the

"bantering Bush boys" in New Orleans as 31 GOP Governors gathered.
George Walker Bush (S&B 1968). jabbed a finger at his brother and told a
reporter: "Throw him the tough questions! He's new on the national
scene. See what he can do." Jeb Bush said his older brother would make
an "awesome candidate."

Among posturing Bush opponents is Gary Bauer head of the Family

Research Council who would run as a "Reagan Republican." Others in
the wings include Wisconsin Governor Tommy Thompson, NY Governor
George Pataki and Pete Wilson of California.

VISIT TO ISRAEL ANNOUNCED BY THREE GOVERNORS

Friday Methodist Texas Governor George Bush said he and his wife
Laura will visit Israel later this month. The trip will be hosted by the
National Jewish Coalition a GOP-aligned group. He was quoted: "It is the
Holy Land, and...Israel is a longtime friend of the United States.
Obviously its an area of international focus, and I want to learn more
about it." The Governors of Massachusetts and Utah will also make the
trip. Bush's staff has denied that meetings with Ariel Sharon and Ezer
Weizmann have already been scheduled in Israel.

DADDY BUSH ENJOYS BARRICK GOLD LUNCH IN WASHINGTON

An associate quoted Father Bush this week: "The boy is running." On

Thursday, according to the Washington Times, former President George
Herbert Walker Bush (CFR/S&B 1948/TC) enjoyed a private off-the-record
Washington D.C. lunch with the Barrick Gold International Advisory
Board. Bush is Honorary Senior Advisor to the board which advises one
of the world's richest gold mining companies. Brian Mulroney, Former
Prime Minister of Canada, is chairman of the advisory board. Members
include Republican Senator Howard H. Baker, Jr. (CFR) and close Clinton
advisor Democrat Vernon Eulion Jordan, Jr. (BB/CFR/TC) Jordan, who
has ten public directorships (including American Express, Bankers
Trust, Dow Jones, J.C. Penny, Revlon, Ryder System, Union Carbide,
Xerox and Sara Lee), gets a total of about $1.1 million per year in
compensation with some $212,000 from Calloway Golf. According to the
Crystal Report, the golf stock has declined from $35.82 per share in July
1997, when Jordan joined the board, to $10.81 per share on September
28.
On September 30, commenting on George Soros (BB/CFR) and his losses
in Russia, Barrick Chairman and CEO Peter Munk told Reuters: "George
was pitching the (United States) Congress to step in and help Russia."
"He was talking his book. He has billions of dollars of investments. If I
had that I would also threaten and cajole and use all my power to
persuade the Congress to step in there. Who wouldn't?'' Soros's pro-IMF
bailout testimony was missing in the Austin American-Statesman.

FELLOW BONESMAN JOHN FORBES KERRY SOUNDING OUT

PRESIDENTIAL BID

U.S. Senator John Forbes Kerry (D-Mass.) (CFR/S&B 1966) on Wednesday

made his second trip to New Hampshire to sound out support for a
presidential bid.

Kerry is married to Teresa Heinz, who inherited a fortune of $600 million,

after Philadelphia Sen. John Heinz was killed in a plane crash near
Philadelphia on April 4, 1991. Texas Senator John Tower was killed in a
plane crash the following day. As chairman of the Heinz Family
Foundation, she initiated the Heinz Awards. The annual winners in five
categories each get $250,000. In 1994, the environmental winners were
Paul and Anne Ehrlich. Kerry's wife is also a vice-chairman of the
Environmental Defense Fund. She was one of ten representatives from
non-governmental organizations attached to the U.S. Delegation to the
U.N. Conference on Environment and Development (Earth Summit) in
Brazil in 1992. An advocate for human rights and creative freedom, Mrs.
Heinz was an original member and later a Co-Chair of Congressional
Wives for Soviet Jewry. Now Mrs. Kerry, who is fluent in five languages,
served as a full-time consultant to the United Nations Trusteeship in
New York City. She is Chairman of the Heinz Awards Board of Directors,
Chairman and CEO of the Heinz Family Foundation and Chairman of the
Howard Heinz Endowment and Trustee of the Vira I. Heinz Endowment.
She sits on the boards of the Carnegie Corporation, Brookings
Institution, Georgetown University and the National Fund for the United
States Botanical Garden. John P. Holdren is the Teresa and John Heinz
Professor of Environmental Policy at the John F. Kennedy School of
Government at Harvard University.
U.S. TRADE GAP DROPPED DOWN IN SEPTEMBER DUE TO PLANE
EXPORTS

The U.S. trade deficit declined by $1.9 billion in September to $14 billion
(down from an all-time high of $15.9 billion in August). Most of the trade
gain was temporary and due to the sale of planes by Boeing. Boeing
more than doubled its overseas shipments in September. A record $4
billion in civilian aircraft exports occurred in September. Excluding
aircraft, U.S. exports were down for the 6th consecutive month. U.S.
agricultural exports fell in September to their lowest level since July
1994.

BANKERS TRUST TO BE TAKEN OVER BY GERMANY'S LARGEST BANK

On Saturday the New York Times said Deutsche Bank was close to
acquiring Bankers Trust. It would be the largest takeover of a U.S.
financial institution by a foreign bank. The Bankers Trust Corp. board is
expected to meet today to vote on the $9 billion deal. In the third
quarter, Bankers Trust lost $488 million.

JUBILEE 2000 COALITION CALLING FOR A DEBT-FREE START FOR A

BILLION PEOPLE (EXCLUDING THE U.S.A.)

The clamor for debt relief is now increasing but the relief urged
excludes us (the post-industrial and now primarily service-oriented U.S.)
and would benefit the "developing" third world. In the absence of any
well-organized pro-U.S. group, the U.S. "public" debt continues to grow
but no one seems to question it on behalf of John Q. Public.

An international movement is calling for cancellation of unpayable debts

by the year 2000. A Jubilee report in September said it would only cost
two pounds per British taxpayer to cancel the debt of the 52 poorest
countries. Ann Pettifor, director of the Jubilee 200 Coalition, stated
"Britain is a special kind of Robin Hood, robbing both the rich and the
poor. Britain demands that poor countries pay their debts at whatever
cost, including children not going to school, yet Britain refuses to pay its
debt to the United States." According to the U.S. Treasury, WWI allies
still owe the U.S. for loans they took out during WWI. In 1934 the
repayments were stopped and have never resumed. The debtors include
Britain ($14.5 billion), France ($11 billion) and Italy ($3 billion).

Japan, behind closed doors, on October 29th, resisted pressures to

block its debt relief for Bolivia from the Paris Club described by Jubilee
2000 Coalition as "a secretive cartel of creditors who meet regularly to
discuss the debts of the poorest countries..."

On September 29, the Rev. Jessie Jackson wrote in the Los Angeles
Times that the issue facing the IMF and World Bank annual meeting was
"removing the enduring (debt) shackles" from the poor. He said that in
1996 Africa paid out $1.31 in debt service for every $1 received in aid.
Jackson also quoted Pope John Paul II who has spoken out against
"debt that is oppressing many countries of the world like a millstone."

Third world countries now owe about $1 trillion. Fletcher Prouty quoted
Sir Henry Alfred Kissinger (BB/CFR/TC): "That money is gone, it's not
going to come back!"

$20 BILLION POOR COUNTRY AID FUND ANNOUNCED BY WORLD BANK

On Thursday the World Bank announced that 39 countries had agreed to

contribute $20 billion to provide financing to the world's most needy
countries. The World Bank's International Development Association was
established in 1960. The credits are only made to governments.

GRANDSON OF BREZHNEV OFFERING NEW PRIVATE PROPERTY BRAND

OF COMMUNISM

From 1964 until 1982 the late Leonid Brezhnev ruled Russia. Now his
grandson, Andrei Brezhnev, who is being called a chip off the old block,
the Soviet Bloc, is forming a political party which plans a place for
private property in Russia. Initiatives for the private ownership of farms
have been blocked in the Soviet Duma where the basic hard-line position
is that the government should own everything. While Russians do have
small plots of land which provide as much as half their food, collective
farming is still the rule in the countryside. The fledgling founder of the
All-Russian Communist Social and Political Movement said concerning
communism: "Our task is to make communism more attractive to
people."

MAYOR OF MOSCOW LAUNCHES POLITICAL PARTY

Moscow Mayor Yuri Luzhkov, in a secret Thursday address to 200 allies,

said: "Foreigners have infiltrated the management of the country, up to
the highest levels." He accused the Russian government of "servility to
foreign advisers" and said the nation was losing its sovereignty as
foreigners dictated "economic and managerial decisions ...taking
advantage of the huge foreign debt." Russia's foreign debt was
estimated at $200 billion including the debt inherited from the Soviet
Union.

WOULD-BE RUSSIAN PRESIDENTIAL CANDIDATE MURDERED

On Friday Galina Starovoitova, 52, one of the most prominent women in

the lower house of Russia's Parliament, was shot to death in St.
Petersburg. She died instantly from being shot three times in the head
by two attackers as she entered her apartment in Russia's second-
largest city. Her aid, Ruslan Linkov, was also seriously injured.
Starovoitova was an outspoken liberal lawmaker who planned to run for
president in Russia's next elections. She was a leader in recent weeks
of the campaign to censure Albert Makashov for repeated anti-Jewish
remarks. Last week a finance official's car was bombed and a top
unnamed banker was killed.

RUSSIANS REMAIN DESPERATE FOR MORE IMF MONEY

As IMF officials returned to Moscow, Deputy Prime Minister Yuri

Maslyukov warned that Russia, in the absence of more foreign money,
was facing a "national catastrophe." Russian Prime Minister Yevgeny
Primakov pushed Moscow-visiting German Chancellor Gerhard Schroder
for more IMF loans. Germany is Russia's biggest creditor. Similar
Russian loan pleas were made to Vice-President Al Gore, Jr. (CFR) at the
APEC Malaysia summit.

YELTSIN SKIPS INDIA TRIP, SAID TO RESEMBLE A "ROBOT"

Yeltsin, who met the German Chancellor on Tuesday, bowed out of a
planned December armaments-selling trip to India (Primakov will make
the trip in his place). Japanese officials said Yetsin looked "like a robot"

RUSSIAN SECRET SERVICE OFFICERS HOLD BIZARRE NEWS

CONFERENCE BUT YELTSIN ORDERS FSB INVESTIGATION

A group of mid-ranking Russian secret service officers went public at a

new conference alleging that they had been ordered to kill influential
businessmen. They added that murder, kidnapping and extortion was
now common within the former KGB. On Friday Yeltsin ordered Vladimir
Putin, the head of Russia's Federal Security Service (FSB) (formerly the
KGB), to investigate reports of illegal activities including reports it
ordered the death of a prominent businessman. Lt. Col. Alexander
Litvineko said last spring that he was ordered to kill business mogul
Boris Berezovsky.

YELTSIN DENIES OWNERSHIP OF STATE TV STATION SHARES

Yeltsin denied reports that he had received more than 25% of the shares
in Russia's largest TV station from Berezovsky. On Wednesday a
communist member of Parliament said that Berezovsky had given power
of attorney over 26% of the shares of ORT to Yeltsin's bodyguard,
Alexander Korzhakov, in 1994. ORT, which is fighting bankruptcy
proceedings, is 51% government owned with the remainder held by
Berezovsky and other private investors. On Friday ORT News was
chopped to three minutes after its film crew vehicles were temporarily
seized by bailiffs.

YELTSIN AND STEPASHIN MET TO COMBAT ETHNIC HATRED

Thursday Yeltsin met with Interior Secretary Sergei Stepashin to discuss

police efforts to combat extremism and ethnic hatred in Russia.

MORE AID NEEDED TO DECOMMISSION MORE RUSSIAN NUKES

U.S. Senator Carl Levin (Demo-Mich.) said in a Moscow news conference

that more U.S. cash was needed to help Russia decommission nuclear
weapons. Senator Richard Lugar (RS) and former Senator Sam Nunn (BB)
joined Levin in Moscow. Lugar and Nunn founded the Cooperative Threat
Reduction Program which has provided more than $2 billion to former
Soviet states since 1991. Both Lugar and Nunn are associated with the
Aspen Institute. Nunn is also a Carnegie Corporation Trustee and senior
partner of King and Spaulding.

RUSSIA LAUNCHES 24-TON SPACE STATION MODULE BUILT WITH U.S.

FUNDS

The launch of the unmanned Zarya (Sunrise) module, on Friday, boosted

Russian spirits as the the $60 billion 16-nation International Space
Station begins which will be under U.S. control. On December 3 the
Unity connecting module will be delivered by the American space
shuttle Endeavour. The U.S. is picking up $24 billion of the total space
station's tab.

RUSSIA MAY BECOME OIL IMPORTER

On Friday First Deputy Prime Minister Yuri Maslyukov, a communist in

charge of the economy, said Russian oil production, one of the country's
few hard currency exports, has been falling for 10 years and that Russia
is in danger of becoming an oil importer. The Russian oil industry is
plagued by old and inefficient equipment, corruption and lack of funds.
Before the breakup of the Soviet Union, Russia was the world's largest
oil producer. But in the last ten years production has been almost halved
to just over six million barrels per day. The Russian production decline
was halted in 1997 after considerable capital investment. Oil prices are
down 30% so far this year. Maslyukov held talks Friday night with a
visiting IMF mission.

GAZPROM PROFITS EXPECTED TO PLUMMET

The world's largest monopoly natural gas company, Gazprom, is

expected to report a first time loss in 1998 after a $6.5 billion net profit
in 1997. The company, which accounts for about 95% of Russia's total
gas production, supplies about a quarter of the gas consumed in
Western Europe. Lavrenti Vyakhirev is the Russian executive who
oversees the operations of Gazprom and Lukoil, the giant Russian gas
and oil combines. Gazprom was valued at $3.4 billion in a 1993 World
Bank study. But later it was said to have been sold in Moscow to an
anonymous bidder for $228 million--less than a tenth of its lowest
projected market value. The hidden partners supposedly were David
Rockefeller and then Russian Prime Minister Chernomyrdin.

In late November 1997 reduction of the 40% government stake was

discussed. In December 1997 it was said that Gazprom hoped to raised
$9-12 billion by the end of 2000 through American Depository Shares,
convertible bonds, secured and unsecured loans and Eurobonds.

Its Russian tax debts as of July 1, 1998, were $1 billion not counting
penalties for late payments. Then Russian P.M. Sergei Kiriyenko
threatened to seize the company's assets and to reassert control over
its board. In July of 1998 it was announced that $2 billion would be
raised by a sale of shares to the Italian oil concern ENI and the Royal
Dutch/Shell Group. On October 14 a $2 billion loan from Italian banks
was announced to finance the "Blue Stream" pipeline from Russia to
Turkey. On November 17th Reuters announced that Gazprom would sign
a major deal with LUK oil Russia's largest oil producer. LUK oil VP
Leonid Fedoun said Tuesday that joint projects with American oil
companies are being discussed: "The main thing is American companies
have not lost their interest in Russia because of the (financial) crisis."

On Tuesday the AP reported that Gazprom is contemplating building a

$15 billion natural gas pipeline to China with a possibility of extending it
to Japan. Gazprom President Rem Vyakhirev told Russian journalists at
the APEC summit that the pipeline would take four years to build and
would deliver 39.2 billion to 49.7 billion cubic yards of natural gas for 30
years.

Gazprom pulls in an estimated $6-7 billion a year in hard currency

exports.

NO INCOME OR NATION OF NON-FILERS?

In 1997 only 5 million of Russia's 147 million citizens filed income tax
declarations.

RUSSIAN COMPANY WILL BUILD OIL REFINERY IN VIETNAM

On Thursday two state-run oil companies announced the signing of a
contract to build the first oil refinery in Vietnam. The contract between
Russia's Zarubezhneft and Vietnam's Petrovietnam was signed in Hanoi.
Total investment in the project, which will begin production by 2001,
was estimated at $1.3 billion. 1.88 billion gallons of crude will be handed
annually. Hanoi will host a meeting of Asian leaders on December 15-
16th. China, Japan and South Korea have been invited.

ZEMIN WILL VISIT RUSSIA AND JAPAN

Chinese President Jiang Zemin will be in Russia from November 22 to 25

for a summit with Yeltsin. He will also meet with P.M. Yevgeny Primakov
and with leaders of the State Duma. China is angry at the U.S. because
the White House allowed the Dalai Lama to visit Washington and also
because of Bill Richardson's trip to Taiwan last week. Russia and China
now have a "strategic partnership" and hope for $20 billion in trade by
2000. Joint plans include a pipeline to funnel natural gas to China and
the construction of a Russian-designed nuclear power plant in eastern
Jiangsu province. Zemin will visit Japan next week. Jiang will seek an
apology for Japan's WWII aggression. China is Japan's 2nd-largest
trading partner and Japan is China's largest with an annual trade volume
of more than $60 billion.

RUSSIAN BANKS TO TAKE A BIG HIT

Paul E. Erdman of CBS Market Watch (Nov. 17) said that half of Russia's
banks (about 720) will face a chainsaw massacre as the end of the
August 17th 90-day moratorium on the servicing of foreign debt comes
to an end. An additional $7 billion will be written off. $1 billion will be
loans to Russian banks that are now closed while $6 billion will apply to
forward foreign exchange contracts. Erdman commented that in view of
the down-grading of Japanese sovereign debt by rating agencies "it
should be clear to all that the lull we have enjoyed in the global
financial/ economic crisis is just that."

LONDON TALKS MAY RESULT IN RUSSIAN RESUMPTION; REFORMERS

BLAMED
On Thursday the AP reported that a joint statement was issued by the
Russian Finance Ministry and Deutsche Bank which agreed in principle
on repayment of debts. The statement followed three days of talks in
London with creditors holding Russian Treasury bills and bonds that
were to mature between August 19, 1998 and December 31, 1999. The
Russian government owes about $10 billion to foreign banks while
Russian banks owe about $7 billion. Russian Prime Minister Yevgeny
Primakov put the blame on liberal reformers who lost power earlier this
year. He said they failed to boost productivity and "ruined the Russian
banking system, didn't give a damn about their foreign liabilities and
imposed a motorium on (foreign commercial debt) payments." Deputy
Finance Minister Mikhail Kasyanov told Reuters Television that Russian
would be able to repay less than $10 billion out of $17 billion in foreign
debt due in 1999.

RUSSIANS PUT IMF MONEY IN WESTERN BANKS

An article in the Independent (London, 8-29-1998) stated that a retired

Russian KGB General told a conference last year that one trillion dollars
had been taken out of the country since 1989. Western sources estimate
that Russians have spirited out about between $120 and $200 billion
since 1990. Total Russian debt is now about $194 billion.

ARAFAT SAYS GUNS ARE READY BUT THEN MEETS WITH SELECT
GROUP OF ISRAELI JOURNALS AND ADDRESSES THEM IN FLAWLESS
HEBREW

Last Sunday Arafat told Fatah supporters in a Voice of Palestine radio

address "our guns are ready and we will use them if they stop us from
praying in Jerusalem." Arafat also stated: "We will declare our state on
May 4 next year. This is our right." But Monday Arafat told reporters he
was still committed to peace. And Arafat, for the 1st time, met with a
select group of Israeli journalists. According to the Nov. 13th edition of
the Jerusalem Post "it seems Yasser Arafat has finally decided to sell
himself to Israelis." The Post said Arafat spoke "in flawless Hebrew" in
his "first real briefing to Israeli journalists." He promised a 100% effort in
combating terror.

SHARON TELLS ISRAELIS TO GRAB ALL THE LAND THEY CAN

Meanwhile Foreign Minister Ariel Sharon urged Jewish settlers to grab
land in the West Bank: "Everyone there should move, should run, should
grab more hills, expand the territory. Everything that's grabbed will be in
our hands; everything that we don't grab will be in their hands."

WYE ACCORD APPROVED BY ISRAELI CABINET AFTER ARAFAT

COMPLIES

The Wye accord received a 75-19 favorable vote (with nine abstentions)
in the Israeli Parliament Wednesday. Prime Minister Benjamin
Netanyahu, who has now been given a "safety net" for the three-month
peace accord, has a narrow 61-59 majority coalition in the 120-member
Knesset.

A meeting of the Israeli cabinet was postponed from Wednesday to

Thursday. A statement from Netanyahu's office said Israel wanted
assurances that the Palestinians had published a decree against anti-
Israel incitement and another against possession of illegal weapons.

DECREES AGAINST INCITEMENT AND ILLEGAL WEAPONS ISSUED AS

ARAFAT MAKES HIS INITIAL DETENTION QUOTA

On Thursday the cabinet approved the first withdrawal of troops from

the occupied West Bank in nearly two years. A senior aid to Arafat
announced a presidential decree banning incitement to violence. Danny
Naveh, the Cabinet Secretary, said that the Palestinians had also given
details of a legal framework for banning illegal weapons. Arafat by
Thursday had already detained 12 of 30 anti-Israel suspects that will be
arrested in three stages.

NO INVENTORY TO BE MADE OF PALESTINE AUTHORITY WEAPONRY

A November 18 interviewer of Arafat spokesman, Marwan Kanafani,

asked whether the order about weaponry included provisions to take
inventory within the PA forces to insure that there wasn't any equipment
beyond that allowed by the Wye agreement. He could not say one way or
another.

ARAFAT CALLS ON YASSIN TO DECLARE AN END TO TERRORISM

Abdel-Rahim said that talks with the Hamas leadership had begun--
calling on them to instruct their fugitives to turn themselves in to the
PA. According to IsraelWire (Nov. 19), Arafat met with Hamas leader
Sheik Ahmed Yassin (who has been under house arrest since October
29) and urged him to make a public call for an end to terrorism. Yassin
refused, saying: "If I were to make such a call and tomorrow we would
need to take up arms again, what would I say to them? To make a public
call through the media is as if I'm giving up the armed struggle, and that
I'm not prepared to do." Yassin said in June, upon returning to Gaza, that
according to the Islamic Koran, Israel will disappear. In August he
threatened revenge upon Israel in retaliation for the U.S. cruise missile
strikes on Sudan and Afghanistan. Hamas, according to IsraelWire (Nov.
20) "has repeated calls for the continuation of terror attacks against
Israelis wherever they may be."

LEAFLET SAYS TERRORIST WAR AGAINST ISRAEL WILL CONTINUE

A leaflet circulated Thursday, issued in the name of Hamas, that said:

"Our holy fight and struggle against the Zionist occupation is an open
holy fight and a continuous resistence that will not stop -- ever." It also
said that only Ibrahim Gosheh, a Hamas spokesman in Jordan, could
speak for the movement. A Gaza Hamas leader, Ismail Abu Shanab, cast
doubt on the authenticity of the leaflet: "We deny that the leaflet was
issued by any of the movement's agencies, political or military."

CONFISCATIONS OF ILLEGAL ARAB WEAPONS WILL BEGIN ON

DECEMBER 6

Palestinian police will begin confiscating illegal weapons on December 6

(next Sunday) in compliance with the detailed timetable of the Wye
accords which President Clinton (BB/CFR/RS/TC) co-signed. Police Chief
Ghazi al-Jabali told Reuters on Wednesday: "We will start next week
collecting all illegal weapons in all Palestinian areas. We will be
implementing the Palestinian law." The new law bans the purchase,
import, manufacture and unlicenced sale of weapons and carries a
three-year jail term with fines of about $7,500.

MOSTLY COMMON CRIMINALS RELEASED

Friday 250 Palestinian prisoners, mostly common criminals, were
released by Israel. The action came despite demands by the PA that all
those released be Palestinians who had served long terms for fighting
Israeli occupation.

LOAN TO BE MADE TO ARAB NEWSPAPER BY WORLD BANK ARM

The International Finance Corp., an arm of the World Bank, is planning to

loan almost $2 million to a West Bank company whose Arab-language
newspaper, Al-Ayyam, has run columns critical to the U.S. and Israel.
Spokesperson Brigid Janssen said the project of assisting media was
"not unusual for us."

U.S. EXPECTED TO PUT UP FUNDS FOR WEST BANK PULLOUT

Finance Minister Yaacov Neeman flew to Washington today to lobby

Congress to finance Israel's pullback from parts of the West Bank. A
Treasury spokesman said the amount requested will be between $1.2
and $1.6 billion: "We are not disclosing details; it's very sensitive."

PARIS PROFESSOR IDENTIFIES MOST VIOLENT MUSLIM GROUP

According to Xavier Raufer, a University of Paris terrorist-tracking

Professor, the most violent fundamentalist Arab group is the Salafiya
(Vanguard That Takes Its Cue From The Pious Forebearers) composed of
non-card-carrying believers in Islamic ideals. The Chicago Tribune also
said this group is believed to be linked to the 1996 Khobar Towers
bombing in Saudi Arabia and may have been involved with many other
lesser known, but still deadly, attacks. Both Al Jihad and al Gamma are
offshoots of the 70-year-old Muslim Brotherhood which was founded to
oppose secular rule in Egypt.

CASE CLOSED ON OSAMA BIN LADEN

A three-week inquiry by Afghanistan's Chief Justice Noor Mohammed

Saqib concluded that Saudi billionaire Osma bin Laden was "a man
without sin." Two weeks ago a $5 million reward was offered for the
capture of bin Laden who was thrown out of his homeland for advocating
the ouster of the Saudi royal family.
LEFT-LEANING EUROPEAN FINANCE MINISTERS WILL URGE
ACCOUNTABILITY FOR EUROPEAN CENTRAL BANK

A power struggle has already broken out before the debut of the Euro
between European finance ministers and the ECB which will set
monetary policy across the eurozone of 11 countries after January 1,
1999. According to Tuesday's Financial Review, the 11 left-leaning
ministers "fear a euro run by unaccountable bankers intent on pursuing
inflation targets rather than boosting growth and jobs."

BIS CHOOSES FORMER CHASE MANHATTAN'S SLEEPER AS HEAD OF

THE BANKING DEPARTMENT

A Nov. 9 press release by the Bank for International Settlements (the

central banker's bank) announced that Mr. Robert D. Sleeper, will
replace Malcolm Gill on February 1 as Head of the Banking Department.
Sleeper was Managing Director of the Foreign Exchange Hedge Unit of
Chase. Besides his 17 years at Chase, Sleeper, who received a Ph.D. in
Economics from Oxford University, spent six years at the Federal
Reserve Bank of New York Meanwhile, Andrew Crockett has been given
a second 5-year term as General Manager of the Bank for International
Settlements. William J. McDonough (BB/CFR) now sits on the BIS board.
Alice Mitchell Rivlin (CFR/TC) and Edwin M. Truman (CFR) are alternates.

Under the January 1930 Hague Agreements, the Switzerland- chartered

BIS is an international organization governed by international law. While
86%of the Bank's issued share capital is registered in the names of
central banks, the remaining 14% is held by private shareholders.
According to Charles Higham, in TRADING WITH THE ENEMY, BIS "was a
joint creation in 1930 of the world's central banks, including the Federal
Reserve Bank of New York. Its existence was inspired by Hjalmar
Schacht, Nazi Minister of Economics and president of the Reichsbank."
Higham added that the central banker's bank became "a money funnel
for American and British funds to flow into Hitler's coffers and to help
Hitler build up his war machine."

On April 13, 1930 "Athurian" wrote an article titled "Mammon Being

Enthroned" in the Referee. He said of BIS: "The opening for chicanery,
brute force, bribery, corruption and war, in the supposed solution of this
problem, is unprecedented in the history of the world." On April 23, 1930,
with instructed delegates, the International Bank at Basle,
"commissioned to enroll the central banks of nine nations in its
membership, was founded." The chairman of the board of directors was
Mr. Gates McGarrah with Mr. Leon Frazer as his deputy and Sir Charles
Addis and Dr. Melchior as vice-chairman. McGarrah was the grandfather
of CIA Director Richard Helms.

The Bank for International Settlements is the most exclusive, secretive

and powerful supernational club in the world. Clinton mentor Carroll
Quigley described the BIS as the apex of the system of financial control:
"The powers of financial capitalism had another far-reaching aim,
nothing less than to create a world system of financial control in private
hands able to dominate the political system of each country and the
economy of the world as a whole. The system was to be controlled in a
feudalistic fashion by the central banks of the world acting in concert,
by secret agreements arrived at in frequent private meetings and
conferences. The apex was to be the Bank of International Settlements
in Basel, Switzerland, a private bank owned and controlled by the
world's central banks which were themselves private corporations."

The bank's privileges included being tax-free, immunity from seizure for
its assets and deposits in peace or war, with no restrictions on its
export and import of gold or currency. It was to last for at least 50 years
and to meet at least ten times a year--four times to be in Basle.
Requests for interest-free currency were suppressed by a conspiracy of
silence.

The central bankers of the ten major industrial nations meet at the BIS
on the second Tuesday of every month (except in August and October)
to discuss the problem of the month in international banking. BIS
"provides a forum for central bankers, handles international monetary
transactions, takes deposits from central banks worldwide and monitors
the scale and scope of banks' lending and borrowing activities. It is
virtually the only forum where the world's central bankers can get to
know each other and discuss problems without producing a panic. Under
the so-called Basel rule, there are no press briefings before or after the
meetings and central bankers are expected to avoid all contact with
journalists while in Basle.

JFK UPDATE

A CBS poll shows that 10% believe Oswald acted alone. 76% disagree.
James Angelton of the CIA was the chief JFK investigator. His records
and the Secret Service files have been destroyed. The White House is
now pursuing release of the KGB's JFK files at the highest levels of the
Soviet government.

BLAIR SAYS OLD ENGLAND DAYS ARE OVER

Tony Blair of the New Labor Party stated this week: "The Britain of the
elite is over." He is appointing 33 people to serve on Panel 2000 which
will do a makeover on England's image.

SEAGRAM SHAKEUP

Frank Bioti of Universal Studio is out and Ron Meyer is his replacement.
Seagram stock fell on the news.

CENDANT SOLD OFF SOFTWARE UNIT

Cedant Corp. went from buyer to seller this week. It sold its software
unit to the French media company Havas SA (a subsidiary of Vivendi SA)
for $1 billion. Chairman and CEO Henry Silverman said: "No cow is
sacred." Cendant stock is trading 60% lower since April. Silverman
believes the U.S. economy is slowing and that there will be no increase
in consumer spending in 1999. Meanwhile the Fed is reporting that
banks are tightening their lending standards to the 1990 level.

SLOW GROWTH AHEAD SAYS MERRILL LYNCH ECONOMIST

Bruce Steinberg, Chief Economist for Merrrill Lynch told Moneyline

Friday that there are mixed signs but the direction indicates slower U.S.
economic growth. He predicts a 1.5% GDP growth in 1999 with earnings
down 5% and a mild credit crunch. A rate cut at the Dec. 22 FOMC is
unlikely. Steinberg also said the Spring 1989 easing by the Fed was
followed by a recession in the summer of 1990. The target rate for
overnight loans between banks is now 4.75%.

WALL STREET WEEK

On Wall Street Week (Nov. 20) Louis Rukeyser said the DJIA had the
best six weeks ever since the start of the current Bull market in 1982.
The market is up 18% since October 8 at 9159.55. It is at the highest
level since July 31 and went up 239.96 points this past week. The
NASDAQ is up 20% for the year. The Fed has cut the interest rate three
times in seven weeks.

Ralph Acampora, Managing Director of Prudential Securities Inc., said

that while Blue Chips were down in August they are now leading the
market. He likes Johnson and Johnson, Eli Lily, Texas Instruments and
Philip Morris.

Brian C. Rogers, managing Director of T. Rowe Price says there will be

some short-term consolidation but the DJIA will hit 10,000 some time
next year. He likes Starwood Lodging, Unical and Bank America.

Barbara Marcin, Senior Portfolio Manager of Citibank Global Asset

Management, said that December and January are traditionally strong
months and she was surprised by Alan Greenspan's hint of still more
rate cuts ahead. She likes American Home Products and Martin Marrieta
Materials.

Thomas F. Marsico, Chairman and CEO of Marsico Capital Management,

has beaten the S&P 500 by 4% a year over the past decade. He was
manager of the Janus 20 Mutual Fund but went solo in 1997 to launch
the Marsico Focus Fund up 34% this year so far after some volatility. He
is managing $3 billion now and said August was the second worst month
for equity funds in 32 years. His Focus Fund has only 25 stocks while he
has 35-45 stocks in his growth and income fund. His picks include GM
and Citigroup. On the internet he likes EMC, Cisco and Lucent. He also
sees good times ahead for airline stocks.

ROBERT RUBIN UPPED. GREENSPAN?

A Monday Wall Street Journal article cast doubt on the mammoth
Citigroup merger. The NY times (Oct. 5) reported that
Greenspan (CFR/TC) was in favor of the superbanking corporation bill
while Robert E. Rubin(BB) was opposed.

FED HAS ORDERED PRINTING OF MORE FEDERAL RESERVE NOTES

Myron Kandel said Friday that that the Federal Reserve has ordered the
printing of an additional $50 billion in U.S. Federal Reserve notes the
total printed is a 30% increase over the $170 billion that was printed
last year.

MALAYSIAN HOSTS GASP AT GORE'S REMARKS

While announcing a new $10 billion Asian aid package Monday, Gore
also called for democracy and reform for the "brave people of Malaysia."
Rafidah Aziz, Malaysia's Trade Minister, called Gore's speech the most
disgusting he'd heard in his life. Gore said "political freedom" was "a key
component of economic growth." Malaysia's P.M. Mahathir Mohammed
has blamed American financial interests, led by George Soros, for
bringing down Asia's currencies.

C. Fred Bergsten (BB/CFR/TC) said that APEC said the right words but
took no action. The U.S. is threatening trade sanctions on steel and
bananas but Bergsten said if we restrict imports it will be harder to tell
other countries that are in even weaker positions to not do likewise.

CLINTON DRINKS TEA WITH JAPAN'S EMPEROR

After waiting twenty minutes to disembark because of Japanese

protocol, President Clinton, accompanied by Lawrence
Summers (BB/CFR), in Japan on Thursday had two cups of tea with
Emperor Akihito and Empress Michiko. A new $196 billion stimulus
package was announced by Japan on Monday. It will include $49 billion
in tax cuts with $147 billion in spending projects. A coalition between
the Liberal Democratic Party with the Liberal Party is now likely to
jointly draft the 1999 fiscal budget bill.

YEN DEFENSE FUNDS MULTIPLY

On Friday 41 foreign brokerages set up a 10 billion yen ($83.3 million)
protection fund in Tokyo and hinted of a merger with a similar Japanese
brokerage fund. On Tuesday the Japanese Securities Dealers
Association will establish a similar 30 billion yen fund.

PORTUGAL MAY EXPEDITE SUHARTO

The Attorney General's office in Portugal is reviewing a request seeking

the extradition of former Indonesian President Suharto for human rights
abuses committed in East Tiumor.

UN SECRETARY GENERAL SAYS ORDINARY AMERICANS BLAMELESS

On Tuesday UN Secretary-General Kofi Annan said in a speech to the

New York-based Foreign Policy Association, that globalization was
political not just economic. He blamed Washington, rather than ordinary
Americans, for the $1 billion still owed by the U.S. to the UN.

FIRST UN WAR CRIME VERDICTS ANNOUNCED

UN war crimes judges Monday handed down their first verdicts for
atrocities committed during the Bosnian civil war in 1992.

CHINESE NAVY MAKES PHILIPPINE'S DEFENSE CHIEF NERVOUS

The Defense Secretary of the Philippines, after Chinese warships and

cargo vessels were spotted around the Spratly Islands, called for a
return of the U.S. presence that ended six years ago. The Philippine
navy, with a few old patrol boats, is no match for Chinese warships.

ALL-APPOINTED WORLD COURT JUSTICES PUTTING ON THEIR GLOBAL-

REACHING ROBES AS INTERNATIONAL CRIMINAL COURT GETS GOING

Idealistic elitist global visionaries simply adore the idea of world law
reaching all across the planet and bringing every living human into
complete and total compulsory global subjection. One size now fits all
and those who administer such as system will be completely
trustworthy for the job.
As the globalists conceived their well-hidden plans some decades ago,
the primary planetary perpetrator to heap abuse on was border-crossing
pollution. Now that the "you simply must" recycle programs have been
firmly implanted and the pollution problem has been become unarguable,
we now are entering a last period of no-escape for criminal fugitives
who require a court of no-resort. In a dictator- filled world, there is a lot
of material to work with to come up with examples of who to try next.

The treaty-law-making system involves a lot of time and negotiations but

at last bears the most easy fruit if the U.S. Senate can be convinced to
go along. For many decades now a bewildering variety of different
measures have been enacted by this method just waiting for a panel of
mostly foreign judges to read meanings into the words of treaties which
now are said override the U.S. Constitution.

At the 1990 Global Forum in Moscow Mikhail Gorbachev and others

called for an "an appropriate international policy in the field of ecology."
In 1993 Christopher J. Dodd (CFR) introduced a resolution to create the
ICC to combat "unlawful acts such as war crimes, genocide, aggression,
terrorism, drug trafficking, money laundering, and other crimes of an
international character." Gorby has since called for adding "ecological
crimes" to the ICC's jurisdiction.

"The ICC would target those responsible for the worst human rights
crimes personally. When tomorrow's tyrant contemplates genocide, war
crimes or crimes against humanity, an effective ICC would make him
think twice."-- Kenneth Roth, Executive Director, Human Rights Watch

After pushing through NAFTA, GATT, the WTO and vast new funding for
UN "peacekeeping" operations, proponents of an International Criminal
Court, fifty years in the making, are expecting a slam dunk due to
virtually no organized opposition. Proponents included David J.
Scheffer (CFR) who was appointed by Clinton as the first-ever
Ambassador at Large for War Crimes Issues.

In 1995 Oxford University's OUR GLOBAL NEIGHBORHOOD: THE REPORT

OF THE COMMISSION ON GLOBAL GOVERNANCE presented detailed
plans for equipping the UN with taxing authority, a battle-ready military,
an international criminal court with mandatory jurisdiction over
individuals, and every other attribute of a fully-functioning world
government.

Some 300 NGO (Non-Governmental Organizations) are behind the ICC.

The president of the World Federalist Movement is none other than Sir
Peter Ustinov. William R. Pace, the executive director of the WFA and
principal convenor, has stated: "We are truly on a path in which this
could be the last major institution established in the 20th Century, and
one of the most important in all of history."

In July 1998 the ICC was approved by 120 nations, opposed by 7

(including Israel and the U.S.) There were 21 abstentions.

It is expected that the ICC will be located in The Hague, The

Netherlands, the site of the International Court of Justice (World Court)
and ad hoc International Criminal Tribunals. The Dutch government
would like to see the treaty for the ICC come into force by 1999 on the
occasion of the 100th anniversary of the First International Peace
Conference.

CUBAN EXILE GROUP'S BID TO PROSECUTE CASTRO DENIED IN SPAIN

An effort to detain and prosecute Fidel Castro was rejected Thursday by

a Spanish court.

BRITAIN SHOULD TRY PINOCHET SAYS UN TORTURE BODY

Thursday the UN Committee Against Torture, a committee of 10

independent legal experts who monitor compliance with the 1987
international convention against torture, stated that Britain could be in
violation of international treaties (the anti-torture pact and the Vienna
Convention on the Law of Treaties) if it decided against trying former
Chilean dictator Augusto Pinochet. Pinochet is facing new charges as 19
bodies were found Thursday in a mass grave. More than 3,000 Chileans
died or disappeared during Pinochet's rule. On Friday a Santiago group
filed a lawsuit in Chile against Pinochet bringing the pending lawsuit
total to 14 in Chile. The House of Lords law lords will rule on his fate on
his 83rd birthday on November 25.
U.S. TO BEGIN GIVING REWARDS FOR CAPTURE OF INTERNATIONAL
CRIMINALS

Little-noticed legislation authorizes $10 million in rewards for the

capture of international criminals which Fox News said extends "for the
first time to war criminals and incidents in which Americans are not
victimized." The Clinton administration legislation was pushed through
by Rep. Benjamin A. Gilman (R-N.Y), Chairman of the House International
Relations Committee, and by Rep. Tom Lantos (D-Calif.) and Sen. John
Kyl (R-Ariz.). Lantos, the first Holocaust survivor elected to the U.S.
Congress, also is a director of the International Rescue Committee.

20/20 DOES EXPOSE OF IRA SAMUEL EINHORN

He has been called "the Ugly American" and "Lady Killer." Last Sunday
night newly listed CFR Member Diane Sawyer teamed with Barbara
Walters (CFR) to hear a Connie Chung 20/20 special report on the
French-harbored Einhorn.

Walters began the report by saying: "It is an outrage against U.S. justice
and against a young woman who was brutally murdered." Ira Eikhorn
organized the first "Earth Day" celebration in 1970. He attracted Helen
"Holly" Maddux who moved in with him after two weeks and then
disappeared in September of 1977. Her body was found 18 months later,
on March 28, 1979, locked in his steamer trunk with his key. He stated:
"I'm not going to allow her to leave me." Under questioning by Chung, he
said it was the act of "one of the large intelligence agencies but I don't
have the data." He spoke of large forces operating against him. Chung
asked: "Large forces? What are you talking about?" Einhorn replied: "I'm
talking about people who had the ability to do what they did."

When Einhorn was charged his bail was put up by his long-time
supporter, Seagram-heiress Barbara Bronfman. She paid $4,000 in cash
(10% of the face amount).

Before his trial he went to Ireland where there was no expedition treaty.
He still went by his own name. His landlord kicked him out after finding
out who he was. Einhorn still remained in Dublin for five years until he
bumped into his landlord again on the street as a extradition treaty was
about to be approved. He traveled to Spain, Denmark, Italy and Wales.
When asked if he had been lucky, he said: "They've just been plain
stupid." His Swedish wife, Annioka Flodin, told Chung he had never, ever
been violent to her. Barbara Bronfman, who admitted financing him
while on the run, let authorities known he was being hidden in
Stockholm.

Einhorn got a call from Barbara Bronfman's boyfriend who told him: "You
must leave within 24 hours." Interpol sent out his description and
America's Most Wanted featured him. In the next five years the pair
bounced from Sweden, Denmark to England. In 1993 they settled in what
Chung called "a good place to hide from the law" in France. Holly's
sister described his wife as "Cleopatra Queen of Denial." When asked
about the trunk she replied: "For God's sake you take the body and you
put her somewhere else."

Einhorn was tried in absentia in a nine-day trial.The jury found him guilty
in two hours and gave him life imprisonment. On Friday the 13th in June
of 1997, after she had applied for a French Driver's License, French
police raided the home. 16 years on the run came to an end.

Then came a day in court that 20/20 said you couldn't believe could a
fugitive hide behind the law? Although the U.S. and France had a long-
standing extradition treaty, Einhorn was freed on December 4, 1997 by a
panel of three judges because French law guarantees that anyone
convicted in absentia a new trial. He told the judges he founded Earth
Day in Philadelphia and had lectured at Harvard.

Under the law of Pennsylvania, Einhorn could not be tried again. The
Pennsylvania legislature then passed a law giving Einhorn a new murder
trial and a another hearing is set for December 1.

Chung said: "The one time prophet of peace and love, the man known for
his social conscience, now is best known as the man with no
conscience at all." He entered France under a false name and that is a
crime. He could be deported to a country of his own choosing which
could have no extradition treaty. She may have been guilty of harboring
a fugitive but couldn't be prosecuted in the U.S. and Einhorn, if he loses
the extradition case, can still appeal to the French supreme court. It
could take at least two years for an appeal.

This story is very timely as the drum begins to beat to bring in fugitives
and create the ICC.

NORTH KOREA BECOMING NEXT HOT SPOT

As Clinton visits the troops in South Korea, the U.S. believes the world's
last Stalinist regime is reneging on a 1994 deal. Robert Manning,
identified as with the Council on Foreign Relations, said on Friday's CBS
News "While we were feeding them they were building new missiles."
North Korea, on August 31, tested a missile that can reach Alaska and
plans another test soon. Madeleine Korbel Albright (CFR/TC) (who keeps
a blue UN combat helmet perched over a bust of Adlai Stevenson in her
office) said: "We are at a critical juncture." U.S. spy photos showed
thousands of workers digging a massive complex. Special envoy Charles
Kartman (CFR) said Thursday there was "compelling evidence" of an
underground nuclear facility. One senior military official said the U.S. is
prepared to go to war to prevent Korea from getting nuclear weapons.
Another said a war would be "deadly, extensive and final." North Korea
has asked for $300 million to permit access to the underground site. In
1994 the North halted its nuclear weapons program for a $5 billion
Western commitment to build modern nuclear energy sources there.
Clinton made a visit to the Sejong Culture Center after a state dinner to
hear his younger brother Roger and his band perform.

OH HENRY VIII

L.M. Boyd noted this week that Henry VIII was the first king to be called
"Your Majesty." The king also broke with the Pope, began the Church of
England and in the process divided Catholic monasteries among his
closest noble followers. In 1534 Henry VIII broke with the Church in
Rome after it had excommunicated him. The Reformation was
established by an Act of Supremacy which appointed the king and his
successors Protector and only supreme head of the Church and Clergy
of England. Henry VIII broke with the Roman Papacy and became the
new Constantine and founder of the Anglican Church. Thomas Cromwell,
a Venetian agent, was Henry VIII's business agent in the confiscation of
the former Catholic monasteries and other church property. On July 6,
1535, Thomas More was beheaded by his order for refusing to swear an
oath of supremacy. During his reign, the Act of 1543 forbade the reading
of Tyndale's translation. No one under the rank of yeoman was allowed
to read the Bible. In 1545 Henry legalized usury but limited the rate to 10
per cent. By 1546 the heavy king had grown so obese that he had to be
lowered and raised up stairs by special machinery. And, according to
Hilaire Belloc, in THE SERVILE STATE 93-94 (1913), by 1553: "A mass of
new families had arisen, wealthy out of all proportion to anything which
the older England had known, and bound by a common interest to older
families which had joined the grab." The Howards, the Cavendishes, the
Cecils, the Russells and 50 other new families arose upon the ruins of
religion.

QUOTES FROM THE PAST

"There are easier and cheaper ways of conquering a politically

incompetent nation. It can be accomplished by psychological weapons,
by economic strangulation, by political chicanery, by intellectual
subversion." -- William J. Lederer, A NATION OF SHEEP11 (1961).

"To seek the redress of grievances by going to law, is like sheep running
for shelter to a Bramble Bush." Dilwyn

"In law nothing is certain but the expense." -- S. Butler

OTHER NEWS

A federal judge has blocked Arizona's Bible Week proclamation.

60 Minutes will air a video showing Dr. Kevorkian administering a lethal

injection tonight. What's new is that he is admitting to killing a patient
and wants to be put on trial. If he is put in prison he is planning to starve
himself to death.

In September Mexico displaced Japan as the U.S.'s second largest

trading partner. Canada is still #1.

New home starts jumped 7% in October (an annual rate of 1.695 million).
Pope John Paul II will make a pastoral visit to St. Louis, Missouri on
January 26th. He will be greeted at Lambert Airport by President Clinton
and will depart for Rome the following evening.

Texe Marrs reports that the IRS is auditing Christian radio stations at a
rate seven time higher than other radio broadcasters. He and Wanda are
founding a Bible Home Church.

Blueberries, concord grapes and cranberries are said to be the only

native American fruits.

On Thursday Queen Noor of Jordan appeared at a fund-raiser for United

World Colleges at the prestigious Metropolitan Club in New York
(founded by J.P. Morgan the Elder and friends).

Marine Midland is giving its employees $300 gift certificates "to dress
up."

James Dines, editor of the Dines Letter (Dinesletter.com), is putting his

bets on the Internet and gold. He sees a coming currency weakness
ahead.

Latin sovereign bonds, according to Credit Lyonnais Securities, are

paying in the 10-20% range.

The 100th Israeli air raid this year on south Lebanon occurred against
Hezbollah. week004.htm

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

VOL. 1. NO. 3. (to November 15, 1998).

BB=Bilderberger CFR=Council on Foreign Relations M=Mason RS=Rhodes Scholar

TC=Trilateralist

GOVERNOR BUSH OF TEXAS: A FEW PERSONAL THOUGHTS

The special son and now chosen patriarch of a Deer Island-meeting
order of still-unknown German origin has now triumphed in his Texas
takeover after the powerful Democratic Lt. Governor, Bob Bullock, early
predicted that it would be virtual suicide for anyone to stand against
him. In the race that just was money was never made an issue and
George Walker Bush (S&B 1968) had barrels of it to defeat Gary Mauro
with kindness and compassion. Mauro was and is a well-meaning proud
but blind political hack who failed to motivate not-yet too numerous
Texas environmentalists and was unable to see the handwriting on the
only for big bucks wall.

The origin of the big bucks campaign contributions is still largely

unknown in Texas. Each political season goes by with only scant listings
of contributors in the press while the supposedly public information is
never provided by state regulating officials in a format that the public
can easily study. So following the money trail, which requires signing a
request sheet, demands hundreds of hours or spending hundreds of
dollars to make copies. A close look at Bush's contributors and their
elite connections would go far in suggesting his chances for making it to
the White House in the year 2000. The flat reality is that the Bush family
has now long-mastered the political art of best-representing the
interests of the rich who run this country while relying upon extremely
competent political advisors. The "campaign finance reform" battle will
only begin when voters wake-up to the fact that when they vote for the
politicians who raise the most money and can therefore win, they are
also voting for a politician that has also been bought by and for the rich.

BUSH SETS RECORD ON BASICS IN EDUCATION -- INCLUDING READING

Since 1994 TAAS overall "passing" scores in Texas have increased from
50% to 75% with a 37% to 65% gain for blacks and Hispanics, according
to Time (Nov. 16). The Skull and Bones Texas Governor has said that:
"Teaching kids to read is the best juvenile-justice program I know." He
has also taken credit for increasing spending on education by $4.7
billion (31%). Isabel Beck, a University of Pittsburgh Education Professor
described Bush as educationally savvy: "He knew about phonemic
awareness,"4 she said. "That's very technical business."
Bush will announce his presidential decision around April or May of next
year. He will not have the power to veto a proposed pending new Texas
Constitution but his position will surely be of interest since it would give
the Governor of Texas powers not seen since the once-hated Radical
Reconstruction Republican Carpetbagger Regime. If he gets some form
of tax cut and the usual more money for education, his presidential
starting-gate position will be extremely formidable.

Bush has stated: "I'm an activist governor with a conservative agenda."

In a poll last week he was 12 points ahead of Vice-President Al Gore,
Jr. (CFR).

BUSH APPOINTS SUPREME COURT JUSTICE WITH NO JUDICIAL

EXPERIENCE

On Thursday Texas Governor Bush filled the vacancy caused by the

resignation of the last remaining high Texas Democrat (Raul Gonzales)
with his Secretary of State appointee -- Alberto Gonzales. The newly-
appointed Supreme Court Justice, a Harvard Law School graduate, who
has no judicial experience, will face Texas Senate confirmation (already
likely) and the voters in the year 2000. The way is now clear for Bush to
appoint Harvard Law School Graduate Clark Kent Irving (RS), a former
associate director of policy for his father, to the now vacant appointed
post of Secretary of State.

FORMER PRESIDENT BUSH RESURFACES TO CALL FOR AID AND SAYS

HE WILL GERONIMO PARACHUTE JUMP AGAIN

Calls for a new "Marshall Plan" coincided with a tour of Honduras by

former President George Herbert Walker Bush (CFR/M/S&B1948/TC) who
said the situation was "appalling." He said aid would be needed for
months and years to come and endorsed forgiveness of debts. He said
the Points of Light in the U.S. would respond. Bush told Larry King
Tuesday night he felt like a "spring colt" and plans an encore jump to
celebrate his 75th birthday next June.

On September 23, l991, then President Bush, in a UN speech, urged the

formation of what he called a "Pax Universalis." He discussed the need
for "collective settlement of disputes," and advocated international
action to settle "nationalist passions" within the borders of sovereign
nations. Bush also applauded the continuation of UN sanctions against
Iraq, and said he wanted them kept in force for as long as Saddam
Hussein "remains in power." With his sons governing both Texas and
Florida, the real powerful and still politically-tainted "Daddy" Bush can
now semi-emerge without hurting their votes.

CLARION CALLS FOR "FORGIVENESS" FOR THIRD WORLD'S DEBTS

BEGIN

Former President Carter (CFR/TC) called for forgiveness of foreign debts.

Carlos Flores Facussee, President of Honduras, said his country's $4.2
billion foreign debt was "unpayable." Several European leaders have
called for a moratorium or outright forgiveness. On Tuesday France
canceled its $70 million share of the Nicaragua's total debt because of
Hurricane Mitch. The French also canceled $30 million owed to them by
Honduras. Meanwhile Great Britain supported a debt moratorium. Cuba
also forgave some $50 million in Nicaraguan debt--mostly dating from
the leftist Sandinista government in the 1980s.

IMF NON-PUBLIC MANDATES HIT INNOCENT TAXPAYERS

Alan Reynolds, writing in the Nov. 9 issue of The National Review said
the IMF "never reveals the strings it attaches to loans." He added: "The
IMF nearly always requires countries to devalue their currencies or raise
tax rates or both." Reynolds said the IMF was unable to be lender of last
resort: "About all it can do is shift debt from frivolous lenders to
innocent taxpayers."

NEW REPUBLIC ARTICLE SAYS SOVIET SPIES WERE NUMEROUS

An article in The New Republic (Nov. 16) by Ronald Radosh, John Earl
Haynes and Harvey Klehr, said that in the 1940s more than 350
Americans "had covert relationships with Soviet intelligence agencies..."
Only half were ever identified and only a baker's dozen were prosecuted.
As to IMF Co-Founder (with Keynes) Harry Dexter White (Weiss), the
article stated: "High-ranking officials, including Harry Dexter White,
assistant secretary of the treasury, Laurence Duggan, chief of the State
Department's division of American republics; and Lauchlin Currie (CFR),
an administrative aide and State Department liaison to Presidents
Roosevelt and Truman, gave secrets to Soviet agents." The article by
three experts also added: "White even met with a Soviet agent while at
the San Francisco conference establishing the United Nations, revealing
to him the American negotiating position on a number of issues."

WHERE'S THE SURPLUS?

August figures from the Congressional Budget Office showed that $105
billion was added to the U.S. public debt in fiscal year 1998.

CHECK-CASHING SERVICES AND OTHERS MAKING "PAYDAY LOANS"

The Consumer Federation of American said Tuesday that state laws

against payday loans are being skirted to the tune of an estimated $1
billion a year. The loans are being made to consumers who have maxed-
out their credit cards and carry interest rates of between 391 and 780%.
Some 14-day $100 loans cost $17.50. Opponents defended what might
be termed legal usury by saying the consumer group had made a "bogus
presentation" because the loans were short-term. The consumer group
asked states to enforce the laws and consumers were advised to create
"savings nest eggs."

$41.5 BILLION BRAZIL IMF LOAN APPROVED

Last week Brazil enacted a social security reform bill. Wednesday

Brazil's central bank lowered the country's key interest rate from 49.75
percent to 42.25 percent. Next year's interest rates are projected at
21%. The interest rate in Brazil nearly doubled to 49.75% in September
as investors fled the country after Russia's August default. Foreign
reserves were estimated at around $43 billion compared to $70 billion at
the end of July. The IMF insisted upon drastic budget cuts before
providing a loan. The amount of the loan was boosted to $41.5 billion
(over the next three years) as it was announced that 450 of the Fortune
500 corporations are now doing business in Brazil. $5 Billion will come
from the U.S. semi-secret Economic Stabilization Fund. $18 billion of the
loan is to come from the IMF. The World Bank and the Inter-American
Development Bank will each provide $4.5 billion. Brazil will now have to
go through an "inevitable recession."
On Friday Mark Mobius, head of Templeton Asset Management, said on
CNN that Brazil must reform its pension system. His #1 flagship fund is
down 24% for the year but has led the 13 emerging market funds for the
past five years. The fund has 31% of its investments in Asia. Thailand is
at the top of his recommended investment list.

GERMANS PROMISED MAJOR TAX-CUT AND NO SPANKINGS

In his first major policy speech, Chancellor Gerhard Schroeder promised

Germans $8.9 billion in tax relief -- targeted to households -- over the
next four years.

The new liberal Justice Minister of Germany, Herta Daeubler-Gmelia,

said she plans to urge a law making it illegal for parents to either slap or
spank their children.

POT MOST OF U.S. CUSTOM\'92S BORDER BUSTS

In a report on seizures ending September 30, 1998, the U.S. Customs

Service said that about 99% of the 124,786 pounds of illegal drugs
seized at the Mexico Border was marijuana.

JOB CUTS AND MERGERS

One of nine jobs cut last month was the result of mergers.

CLINTON AND RUBIN DIFFER ON TRADE DEFICIT -- CAUSING DUMPING

On Tuesday President Clinton (BB/CFR/RS/TC) issued a statement that

the U.S. would not tolerate the "flooding of our markets" with low-cost
goods from Asia and Russia. The statement came days after a White
House meeting with top steel executives and union leaders which
helped get the Democratic vote out last week. But Robert E. Rubin (BB),
who is said to be thinking of departing, stated in the same meeting: "We
don't want to encourage greater protectionism abroad."

EURO WILL "BELONG TO ALL OF US" SAYS DANES

As the Euro is set to technically debut on January 1, 11 of 15

participating EU governments are busy educating their citizens. The
Dutch slogan is "The euro will belong to all of us." The four European
countries who will still have sovereign currencies are Britain, Denmark,
Sweden and Greece (which hasn't yet qualified). Euros will not circulate
physically until the year 2002. American Express and Thomas Cook will
begin issuing traveler's checks in Euros on January 1.

MEXICO BEGINS TRADE TALKS WITH EUROPEAN UNION

On Monday Mexico and the 15-nation European Union (EU) began talks
on what would be the 1st free-trade zone in North America. Mexico now
does 85% of its exports to the U.S. but that may soon decline. Last year
Mexico had $4 billion in exports to the EU which exported $10 billion to
Mexico. Negotiators will meet every six weeks until June 1999.

TIME MAGAZINE TAKES SECOND STRIKE ON CORPORATE WELFARE

Time took its second look (Nov. 16) at corporate welfare. Boeing, whose
largest customer was China, was the largest recipient of Emimbank
(called the Bank of Boeing by insiders) largess -- a total of $11 billion
during the 1990-1997 period.

In February of 1934 George N. Peek, the 1st President of the Export-

Import Bank, said: "(The Emimbank) has not been created for the
purpose of acting as a Santa Claus." The investigation revealed that just
10 companies accounted for 50% of the $51 billion in financial deals
revealed in the bank's annual reports.

Business with Communist countries has long been financed by the

Export-Import Bank, according to Phobe Courtney, in THE CFR 68 (1968).
The Bank, under its president and chairman, Harold F.
Linder (CFR)advanced funds to U.S. firms for goods shipped to the
Communist bloc. David Rockefeller, then President of Chase Manhattan
Bank and Vice-President of the CFR, wrote to Senator John J. Sparkman,
chairman of the Committee on Banking and Currency, in support of a 5-
year extension of the Export-Import Bank, on April 10, 1967: "Each new
program instituted by the Bank, in particular the institution of risk
insurance through the Foreign Credit Insurance Association and the
system of support for commercial bank loans to exporters through
Export-Import Bank guarantees, has demonstrated the ability of the
bank to work with and anticipate the needs of the business community
in fulfilling its functions." Courtney added that taxpayer-financed bank
guarantees allowed investors in communist countries to face no
financial risk.

In June 1993, Kenneth Brody, President and Chairman of Eximbank,

stated: "The President's highest foreign policy is probably aid to Russia,
(and his) highest priority domestically probably is jobs. When Exim is
involved in Russia, we solve both problems. We provide them with
money; they buy our products; they create jobs." But, said Time, in 1997
the U.S. had only 18.7 million manufacturing jobs compared to 19.3
million in 1988.

The second in the series of real investigative reporting also revealed the
Overseas Private Investment Corporation (OPIC). With a very high get-in
fee (usually $1 million or more), this corporation is open mainly to 1)
wealthy individuals, 2) institutions (such as pension funds, which are
doing very well lately) and 3) large corporations (such as GE and
Citicorp). Clinton, during his time in office, has increased OPIC funding
from less than $100 million to $3.2 billion. Just 4 companies amounted
to a third of OPIC's constituency: 1) Citicorp, 2) Chase Manhattan, 3)
First Bank of Boston and 4) Enron Corp. (Houston, Texas). 14% ($3.6
billion) of all OPIC insurance went to Citicorp and its various affiliates.
Citicorp, Inc. is the parent of Citicorp and Travelers Group. While
collecting several billion dollars in corporate welfare, GE cut 123,000
jobs since 1986 or 43% of its workforce. Meanwhile, the right-hand man
to recently departed Jamie Dimon, Steven Black, has quit. Citigroup will
buy back $2 billion in stock.

THIRD FED INTEREST RATE CUT EXPECTED BY ECONOMISTS

Most economists (70%) expect another $0.25 cut at the upcoming Fed
meeting. Worker productivity was up 2.3% in the third quarter as
manufacturers "squeezed" their workers. But Scott Bleier, of Prime
Charter Ltd. disagreed, saying: "I think they've (already) given us our
Christmas present."

NO PHONE NO CAR NO CIGARETTES

More than half the people in the world have never made a phone call.

CARGILL WILL BUY CONTINENTAL

Cargill is buying Continental but no impact on prices is expected.

GALBRAITH CALLS FOR A "SMALL TAX" ON FOREIGN EXCHANGE

James Galbraith of the University of Texas is calling for a "small tax" on

foreign exchange. Speculation is a threat plus there is a right to know.
Taxing foreign exchange transactions was initially suggested by Nobel
prizewinning American economist James Tobin. More specifically the
tax would be on the interest income earned from foreign currency
deposits. It would act to deter short-term currency speculation.

NEW UNA HEAD NAMED AS BUSINESS COUNCIL MERGER LIKELY

William Henry Luers (CFR) will take over as the next chairman as well as
president of the powerful United Nations Association of the U.S.A. The
Business Council and the UNA will likely mere in 1999. His wife, Wendy,
heads the Foundation for a Civil Society.

RUSSIA WILL MEET WITH FOREIGN AND RUSSIAN INVESTORS

On November 10 Reuters announced that the Russians would offer equal

terms to all investors in the restructuring of frozen domestic (GKO) debt.
Russian Finance Minister Mikhail Zadornov said a meeting was likely
next week of both foreign and Russian investors. Of the July 1998
Russian $4.8 billion IMF loan, at least $1 billion went to pay off investors
in very-high-yielding GKO short-term bonds. No one knows where the
rest went.

Russian Prime Minister Yevgeny Primakov said Wednesday that a tight

lid would be kept on spending and no large sums of money would be
printed to pay debts. Current wages could be paid without more money,
he said. The money printed will total up to 25 billion rubles (worth about
$1.7 billion). Official October inflation was 4.5% (down from 38.4% in
September). Arkady Zlochevsky, chairman of the non-government Russia
Grain Union, dismissed predictions of food shortages. The actual grain
harvest, he said, was higher than officially reported because grain
producers under-report output so they can illegally sell leftovers.

YELTSIN BACK AS JAPANESE LOAN LOOMS

Yeltsin was out of sight at his country home. He played host to

Japanese P.M. Meizo Obuchi on Thursday (his first high-level meeting in
a month). It was the first official visit by a Japanese Prime Minister for a
quarter of a century. There is a dispute over the Kuril Islands off
Russia's Pacific coast. The island are known to the Japanese as the
Northern territories and consist of four islands. They have been
controlled by Moscow since the end of WWII. 18 major Japanese banks
make 75% of all loans. Japanese banking is largely unprofitable. On
Friday Yeltsin greeted the Japanese Prime Minister but skipped the
state banquet although his aides said he was feeling fine.

Canadian Foreign Minister Lloyd Axworthy and Germany\'92s new

foreign minister, Joschka Fischer, were also in Russia for talks this
week. German Chancellor Gerhard Schroeder is set to visit Russia this
week. Axworthy recently suggested the adoption of a global convention
that would prohibit the international transfer of small arms to any
parties except governments.

Yeltsin met with Chinese President Jiang Zemin on Nov. 22. China is
now a major trading partner and lead customer for Russia's defense
industry. After U.S. Energy Secretary Bill Richardson was sent by Clinton
to Taiwan to address a business meeting and meet with Taiwanese
President Lee Teng-hui this week, Clinton may get an earful during his
hour-long meeting next week with Zemin as 21 world leaders meet at
the Asia-pacific Economic Cooperation forum in Malaysia. A September
30 editorial in the China Daily was hostile after U.S. officials dared to
complain about the $60 billion U.S.-China trade deficit. Two weeks later
the livid Chinese called U.S. support for Taiwan's entry into the WTO "a
rude infringement of China's sovereignty." Gore may now replace Clinton
on the trip to the conference. Taiwan has asked the U.S. to provide the
sophisticated Aegis defense system to counter Beijing's military naval
build-up. U.S. Senator Frank Murkowski, who was in Taiwan on a three-
day trade mission, said the U.S. would continue to provide hardware to
Taiwan consistent with the Taiwan Relations Act. On Wednesday some
200 futures-scammed disgruntled investors in Xin Gua Da Futures Co.
Ltd. marched through Beijing in one of the boldest protests since the
1989 Tianamen Square demonstrations.

YELTSIN'S RUSSIA COMPARED TO GERMANY BEFORE RISE OF HITLER

U.S. News (Nov. 16) noted parallels between Weimar Germany in the
1920s and Russia in the 1990s. Yeltsin was compared to Paul von
Hindeberg who opened the door to Hitler in 1933. Yeltsin was described:
"In recent months, Yeltsin mistakenly identified Japan and Germany as
nuclear powers, failed to recognize one of his own ministers at a public
appearance, and blabbered incoherently at a press conference."

RUSSIAN SAYS WE ARE ALL ONE PEOPLE

Wayne Gray of CNN did a short piece Tuesday on anti-Semitism in

Russia. It ended with a statement by a Russian woman: "We're all one
people -- people of the Earth."

The U.S. has given the cash-starved Russian government $200 million of
the estimated $5.7 billion needed to destroy 44,000 tons of deteriorating
chemical weapons which Russia promised to get rid of last year. Russia
stopped its production in 1987.

HILLTOP SERIES FOCUSES ATTENTION ON RUSSIA

Cedar Park Senior Pastor Jack Humbert of Hilltop Baptist has begun a
series on "Doom, Dismay, Despair (All Coming in 1990)." His analysis
includes excerpts from THROUGH THE EYES OF THE ENEMY -- a 172-
page book written by Stanislav Luner -- Russia's highest-ranking military
defector.

NORTH SAYS TO U.S.: GET OUT OF SOUTH KOREA

North Korean leader Kim Jong-il has demanded that the U.S. withdraw
troops from South Korea.

TALIBAN JUSTICE SAYS SHOW EVIDENCE OF GUILT

The Taliban militia in Afghanistan has vowed to protect suspected
terrorist Osama bin Laden "at any cost." A U.S. District Court has
indicted Bin Laden for the August 7th bombings of U.S. embassies in
East Africa. The State Department has posted a $5 million reward for his
capture. A former Fort Worth Lone Star tire shop manager has been
jailed in New York. He was personal secretary to Ben Laden. The chief
justice of the Taliban, Noor Mohammed Saqib, accused the U.S. of
looking for an "excuse" to launch another missile attack on Afghanistan.
On August 20 the U.S. fired Tomahawk missiles at suspected terrorist
camps in eastern Afghanistan which killed 26 people. Saqib, who heads
a judicial inquiry investigating terrorist charges against bin Laden, told
the AP that America had produced no evidence of Bin Laden's guilt.

HEAD OF THE GRAND LODGE OF ENGLAND VISITS IN JERUSALEM

The Duke of Kent (M) K.G., G.C.M.G., G.C.V.O. [1990] made the 1st
official visit to Israel by a member of Britain's royal family. He began his
three-day trip with a stop at the Holocaust Museum in Jerusalem. The
Duke is the president of the governors of the Grand Lodge and is also
the Grand Master of the United Grand Lodge of England (Scottish Rite of
Freemasonry).

IRISH EX-P.M. BANKER CHECKS ON IRAQ SANCTIONS

Former Irish Prime Minister Albert Reynolds visited Iraq on Monday to

check on the hardships caused by UN sanctions. Reynolds serves as a
member of the Board of Governors of the European Investment Bank, the
World Bank, and the International Monetary Fund.

MIDDLE-EAST STAND-STILL

The U.S. and Israel are at odds over 1) the timetable, 2) continued
Jewish settlement expansion and 3) the procedure for revoking
provisions in the PLO founding charter calling for Israel's destruction. In
mid-December the PNC and other Palestinian bodies will meet in Gaza.
Clinton will attend and address the meeting. Netanyahu (a graduate of
M.I.T. and former Israeli Ambassador to the UN) has insisted that a vote
must be taken to repeal the offensive 1964 clauses that call for Israel's
destruction. Arafat has agreed to convene and hold a new vote by the
full 600-member Palestinian National Council (PNC) to cancel anti-Israel
clauses in the PLO charter.

Sunday Israeli soldiers searched for a militant Islamic Jihad leader in

the West Bank village of Kabatiya.

David Bar-Illan, the senior adviser to Netanyahu, said Arafat must now
"outlaw" the military wings of both the Islamic Jihad and Hamas. Anmed
Qureia, speaker of the Palestine Legislative Council, said Israel had no
right to demand the outlawing of groups before going ahead with the
Wye River memorandum. The Palestinians said they would ban anti-
Israel activity by Hamas or the Islamic Jihad but would not do an
outright ban on them as political movements. David Bar-Illan, described
as only a spokesman for Netanyahu, said Tuesday that the Palestinians
had taken "some concrete steps against terrorists and that they are
planning to take even more steps."

The Israeli cabinet, after a two-week delay, met at noon on Wednesday

after Netanyahu was convinced that the PA had begun practical steps
against the terrorist infrastructure and the terrorists. Earlier the cabinet
had called on the PA to wage an "all-out-war" on violent militants who
have carried out two suicide bombings since the signing of the October
23rd accord. Dozens of Islamists have now been detained by Arafat.
November 2 was supposed to have been the starting date but another
article said the memo had set Nov. 16 as the date to begin the first
phase of the 3-month anti-Palestinian-led terrorist purge but that date
has been delayed at the request of Netanyahu. The delay will just about
give the U.S.S. Enterprise (and Marine Helicopter ship) time to be in the
Gulf when Arafat begins his roundup of terrorists.

The Wye accord got eight favorable cabinet votes Wednesday (of 17
cabinet ministers) with four opposed and 5 ministers abstaining. After
ratifying the latest peace accord, Israel announced it would begin the
construction of a largest Jewish neighborhood in a sector of Jerusalem
claimed by the Palestinians as a future capital. Israel has agreed to
withdrawal of troops in exchange for an "all-out war" by the PA against
Muslim militants. Gas masks have been handed out in case Saddam
Hussein takes actions against Israel.
Netanyahu, flanked by Foreign Minister Ariel Sharon, issued what the NY
Times said amounted to a threat to annex chunks of the West Bank if
the Palestinians moved next spring to unilaterally declare an
independent state. Hassan Asfour, a top Arafat Aide, said: "We are not
agents of the Israelis. We do not do as they command." Netanyahu,
according to the NY Times, said on a late-night interview show: "My
insistence is to sterilize elements which will stop the Palestinians not
from running their lives but from threatening us."

On Friday it was announced that eight Arab states and both Russia and
France, will not oppose the bombing of Iraq. One question raised by U.S.
Senator Specter, is whether Clinton will seek congressional approval.
Defense Department spokesman James Rubin (CFR) said the president
had "inherent authority" to proceed with the bombing and also had
previous congressional approval for UN resolutions but added it would
be prudent to consult Congress.

Senator Richard Lugar (RS) (R-Indiana) has twice called for the bombing
of Baghdad. He has called on Clinton to finish the job President Bush
started. The last war involved 500,000 troops and resulted in much
disease from much-debated mysterious causes.

Former Congressman and columnist Otis Pike stated this week: "We are
tired of being the United Nations enforcer. But here we go again."

Defense Secretary William Cohen (CFR/TC) visited Saudi Arabia, Jordan,

Oman, the United Arab Emirates, Qatar, Kuwait and Egypt. Sandy
Berger (CFR) visited Western Europe.

Richard Haas of the Brookings Institution has suggested the U.S. use
bombs and missiles on the facilities that can no longer be inspected.

CFR fellow John Hillen said: "Unilateral action is kind of like a drunk's
courage. It's enough to get you into the fight but not enough to get you
out of it successfully.

Tuesday nuclear inspectors of the International Atomic Energy Agency

(IAEA) went on regular monitoring missions and remote cameras were
still in place. On Wednesday, however, most UN and IAEA inspectors
were evacuated because of the possible pending military strike against
Iraq.

Force is viewed as increasingly likely (particularly on the part of Arafat

and his PA police). The aircraft carrier Dwight D. Eisenhower and seven
other navy vessels (equipped with more than 300 Tomahawk cruise
missiles) remain on alert in the Gulf as the Clinton administration
considered two plans. One of the two plans, evidently adopted, called
for sending still more U.S. forces to the Gulf. It was said the forces were
already on call and could be in the Gulf within 96 hours.

Cohen said the credibility of both the UN Security Council (which meets
in secret) and the U.S. was on the line as Hussein flouted his
obligations. He added: "A dance has a beginning and an end." A TV
commentator said Iraq was "stiffing the UN Security Council." British
Defense Minister George Robertson, said the crisis was the worst since
the 1991 Gulf War: "Time is running out for Saddam Hussein." Except for
Britain, there is little military support from the allies for an attack on
Iraq. Hussein is said to be surrounded by a totally disconnected elite.

Clinton met with William Cohen, Albright, Berger and General Henry
Shelton (Chairman of the U.S. military Joint Chiefs of Staff) on Tuesday.
He also called Tony Blair (British P.M.)(who has apparently committed a
few planes). Clinton then sent the U.S.S. Enterprise Aircraft Carrier (with
an escort of U.S. Marine warships) to replace the carrier Eisenhower. It
will arrive on November 23 (three days ahead of schedule). Long-range
bombers are part of the buildup which will add 100 more planes to the
174 warplanes already in the Gulf. A "fresh" Marine helicopter carrier
will also arrive on November 23. On Wednesday the Pentagon ordered
129 additional land-based warplanes (including 12 B-52 bombers armed
with Tomahawk cruise missiles, six B-1 heavy bombers,12 F-117A radar-
evading stealth fighters, F-15, F-16 and F/A-18 attack jets)and 3,000
more Army soldiers to the Persian Gulf -- doubling U.S. strength.
Additional Patriot anti-missile units have also be dispatched.

Iraq said a joint U.S.-British attack would "destabilize" the region. A ten-
day trade fair, that brought together the biggest group of influential
officials and businessmen since the Gulf war, ended Tuesday in Iraq.
Trade Minister Mohammed Mahdi said there could be no cooperation
with the UN until the sanctions ended.

Former President Jimmy Carter (CFR/TC) told CNBC that the U.S. doesn't
have the previous support in Europe, Russia or in neighboring Arab
countries, comparable to the Gulf War period. However, he added that
the U.S. might get away with making an attack if it was restricted solely
to military targets.

Dan Rather (CFR) on Friday said that the U.S. was "aimed, cocked and
ready." An executive order forbids political assassination by the U.S.
and Hussein is believed to have deep bunkers for his protection. George
R. Stephanopoulos (CFR/RS) said on Friday'2s Larry King show: "(W)hat's
illegal is not necessarily immoral...the President does have the authority
to issue a secret finding to override the executive order against
assassination." Republican Senator Richard Lugar (RS) said Saddam
Hussein may have to be killed. However, Madeleine
Albright (CFR/TC) said on PBS that: "The purpose of force, if we use it,
would be to degrade his ability" to develop and use weapons of mass
destruction. Congress has overwhelmingly passed an Iraq Liberation Act
which appropriated money to support internal political opposition to
Saddam Hussein.

A sustained massive attack may be looming since air attacks alone will
not eliminate Iraq's capability to make weapons of mass destruction.

Senator Arlen Specter (Republican-Penn.) said that a missile strike on

Iraq would be "an act of war" and require approval by Congress. The
President could call a special session of Congress to get such approval.
Cato Institute's Ted Galem Carpenter said on Crossfire that Congress
had abdicated its power to declare war. Senator Joseph Biden (Demo-
Del.), the head of the Senate Foreign Relations Committee, said the
President was not required to but should consult Congress. Thursday
Clinton called Senate Majority Leader Trent Lott and House Minority
Leader Richard "Dick" Andrew Gephardt (CFR) to brief them on the Iraq
crisis. Paula Dobriansky (CFR), identified on the screen as a member of
the Council on Foreign Relations, said on CNN that the U.S. couldn't
afford the delay required to go to Congress for approval.
Bob Novak, who is authoring a book to warn Republicans, on Crossfire
Friday quoted from an article in the New Yorker (Nov. 9) that suggested
that resigned UNSCOM head Scott Ritter worked hand-in-hand with both
the CIA and the Mossad and was suspected to be an Israeli agent by the
US. Government. Taria Aziz, Iraq Deputy Prime Minister, stated:
"UNSCOM is a subsidiary organ of the CIA and of the Mossad, not a
subsidiary of the United Nations or the Security Council."

The attack, if launched, would be the 4th attack on Iraq by the Clinton
administration. Special envoy Prakash Shah on Nov. 14th said that Iraq
will allow U.N. weapons inspections to resume without conditions.

U.S. GULF PRESENCE TO BACK ARAFAT/ISRAEL OR ATTACK SADDAM

HUSSEIN?

In closely reviewing the activities this week, it appears that while

Saddam Hussein is the "prey," the "play" is to be able to give protective
U.S. military cover (including Marines with helicopters) to Arafat and
Netanyahu for the so-far delayed 12-week terrorist-cleansing campaign.
Marine General Anthony Zinni is the top commander of U.S. forces in the
Gulf region. The real Gulf mission is to station more U.S. troops in time
for the coming joint Israeli-PA roundups in Palestine that may provoke
much bloodshed in the weeks ahead.

FORMER BC AIDE SAYS NEWT WASN'T NEEDED FOR UNITY

Former "Clinton spin doctor" and senior Israel-born adviser, Rahm

Emanuel, said in a TV interview that the Democrats have been unified
more by social security, a patient's bill of rights and 100,000 more
teachers rather than by Newt. He said the right-wing in the Republican
party opposed the leadership during the 1998 balanced budget dealings
and was "very angry."

Emanuel was Assistant to the President and Director of Special Projects

which included White House initiatives on crime and drug policy. He was
also BC's chief fund-raiser who led the ratification of NAFTA, the
passage of the welfare and immigration "reform" bills, the Brady
handgun bill and also the "Assault Weapons" ban. He replaced George
Stephanopoulos (CFR/RS) (now an ABC News analyst) on December 18,
1996 as senior advisor to the president and Executive Assistant to the
Chief of Staff (Erskine Bowles). He was National Finance Director of the
1992 Clinton-Gore Presidential Campaign after serving as Finance
Director for the Daley for Mayor campaign in Chicago from 1988-1989
(see Dailey's current war on guns) and was National Campaign Director
of the Democratic Congressional Campaign (1987-1988).

Emanuel stunned legal observers in July by calling for extending the

Brady gun control law to juveniles on NBC's "Meet the Press." Federal
law already banned the sale of handguns to anyone under age 21. Host
Tim Russert let the remark go unchallenged.

TWA FLIGHT 800 AD APPEARED IN NY TIMES

A full-page ad was taken out in the October 18 issue of the New York
Times by the Association of Retired Aviation Professionals which
questioned the official version of the cause of the air crash. The FBI,
according to the ad, interviewed 115 eyewitnesses and then failed to
make the statements public.

RED CARPET AWAITS NEW CFR MEMBERS

The New American (Nov. 23) noted as new 1998 CFR members: Former
Reagan Secretary of State James A. Baker III, CIA Director George J.
Tenet, Columnist Deroy Murdock and Hillary Clinton's media
spokesperson Lisa M. Caputo. New CFR directors included TV
newsperson Diane Sawyer, Roone Arledge and Bettee Bao Lord -- wife of
Winston Lord (BB/CFR/S&B/TC).

PRINCE CHARLES WILL NOW ACTIVELY RECRUIT ON WORLD-WIDE-WEB

Prince Charles of Wales (born Charles Philip Arthur George), already

involved in some 200 different organizations, now has his own on-line
web site (www.princeofwales.gov.uk) The site was created after Queen
Elizabeth II's site drew more than 100 million hits in its first year. The
Prince's site will contain articles and the text of some of speeches.
Recent published polls show most Britons want the Queen to remain on
the throne. In 1998 Charles celebrated his 50th birthday with his long-
time friend and companion Camilla-Parker Bowles, his two sons (Prince
William and Harry) and some 100 guests. The Queen also gave him a
birthday party.

His titles include KG, KT, GCB, PC, Earl of Chester, Duke of Cornwall,
Duke of Rothesay, Earl of Carrick, Baron of Renfrew, Lord of the Isles
and Prince and Great Steward of Scotland. Charles, who would become
the Head of the Church of England, disdains the title of "Defender of the
Faith". He prefers the more cosmopolitan title of "Defender of Faith." He
is also said to be "a dabbler with spirit channeling and occult
visualization" as well as a scrambled-egg eating vegetarian who
disdains the killing of animals and is also said to talk to plants. He is
also an environmentalist, a humanist, and a globalist to boot. Prince
Charles, in 1986, awarded Reform Party-founder Ross Perot the
prestigious gold medallion of the Winston Churchill of the United States
Foundation. The awards banquet was dubbed "truly an Anglo-American
evening" by the whiskey-preferring Prince Charles who was especially
gratified by the orchestra's rendition of Rule Britannia.

THE ARMAND HAMMER-CHARLES CONNECTION

Armand Hammer, the deceased patron of the Soviets and Al Gore, Jr.'s
father, was also the godfather of Charles' firstborn son, Prince William,
according to Joan Veon in PRINCE CHARLES: THE SUSTAINABLE
PRINCE 40-41 (1997). Armand Hammer established the United World
Colleges -- a group of ten related International Schools--that today
promote "international understanding through education." The concept
of "Service" is central to the UWC life, and this may involve Social
Services such as visiting elderly persons, tutoring disadvantaged youths,
helping to clean up local parks, or perhaps building a boardwalk through
a rainforest to protect the delicate ecosystem. The President of the
United World Colleges is Her Majesty Queen Noor of Jordan (her
husband is a 33rd degree Mason and King of Jordan). The President of
the UWC International Council is Mr. Nelson Mandela, President of South
Africa. The "united world" vision was shared and supported by the
United Nations, and by Earl Mountbatten of Burma. Mountbatten served
as the founding President of the International Council of the United
World Colleges, and was later succeeded by H.R.H. Prince Charles. Lord
Mountbatten was said to have been nicer to him than his dad ever was.
Charles participated in the 1986 Bilderberger annual meeting held in
Scotland. In September 1987, David Rockefeller (BB/CFR/TC), Edmund de
Rothschild and James Baker III (who finally was listed as a CFR member
in 1998) attended a Denver, Colorado meeting. The Denver confab was
arranged to announce the creation of the World Conservation Bank
(WCB), in order to collateralize 30% of the earth's land surface through a
series of debt-for-nature swaps. The plan would forgive multibillion
dollar debts to U.S. megabanks if such countries as Mexico and Brazil
sign over deeds for millions of acres of undeveloped lands to
internationalists. The grandiose plan for a World Conservation Bank is
supported by both Prince Charles and Prince Philip. Charles addressed
the London Trilateral Commission meeting in 1989 on the hush-hushed
WCB.

In 1990 Charleston, according to Veon, was host to a two-day

organizational meeting dubbed "Stakeholders: The Challenge in A Global
Market." Over a hundred CEOs from major multinational organizations
attended. Among the conclusions from the conference: 1) CEOs have a
lead role in setting company values and insuring that local managers
listen to community leaders, 2) the adoption of "sustainable
development" for processes and products and 3) assistance should be
given to community leaders in inner cities and isolated rural areas to
develop business skills.

A year later Prince Charles commended the Brundtland Commission for

bringing the new buzz word "sustainable development" into everyone's
vocabulary. This phrase is thought by some to have been coined by the
World Commission on the Environment in its 1987 report entitled "Our
Common Future." However, the phrase was used in the 1972 Program for
the first UN environment conference. The UN began speaking of
"sustainable development" in its documents, beginning with the 1992
Earth Summit.

The thesis is that the world's resources are finite and must be preserved
for future generations. From the collectivist regulative view, it has
become necessary to know how much of each resource exists so that
government agents can monitor the usage. The only valid answers to
such questions will come from environmental experts who will
administratively determine the fines and penalties to be paid for any
broadly-defined "misuse" of the earth's precious resources.

The socialistic global sharing concept has been advocated World

Goodwill (founded by Alice Bailey). The scene was described by Texe
Marrs, in THE DAY THEY TAKE OUR MONEY AWAY 179 (1990): "In
reality, what is to take place is that the super-rich -- those who now
control our banking and money and own controlling interest in the
multinational corporations that encircle the globe -- will continue to hold
on to their fabulous riches, property and power. But the average
American must sacrifice 'for the good of all.'" This is an echo of the
Communist platitude: "From each according to his ability, to each
according to his need." Its also a modern way for a robbing non-
producing Peter to pay a somewhat gratefully receiving poor Paul.

Already, says Veon, both the World Bank and the IMF are "studying ways
in which the production and over consumption of every person on the
face of the earth can be measured."

In 1993 the World Bank created a division for sustainable development.

The assets of the earth have been grouped into four classifications: 1)
natural capital (minerals, water, forests or anything else that is natural),
2) manufactured capital (anything built like roads, buildings or homes),
3) human capital and 4) social capital (how people think, political
correctness). In the same year, President Clinton, by a 1993 executive
order, established the President's Commission on Sustainable
Development.

Representatives of Israel and the Palestinians were invited to a secret

meeting in London at which time later secret negotiations in Oslo,
Norway were planned. At the Oslo conference Yitzhak
Rabin (M) represented Israel, King Hussein (M) of Jordan the
Palestinians and Lord Victor Mischcon (M), the personal attorney for
Prince Charles, represented England. All three were 33rd Degree
Masons.

When Rabin was killed, various Heads of State attended his funeral.
They were shown on TV behind his casket. In the center of the front row
was Prince Charles, the only one who was not a Head of State. Rush
Limbaugh, commented, "What's this guy doing there? He's no Head of
State." Within two hours after Rabin's funeral, according to the
Jerusalem Post, Prince Charles was in Prime Minister Peres's office
"insisting" that he attend a meeting at the Orient House, (in the
Palestinian sector of Jerusalem), to begin negotiations to give back the
Golan Heights to Syria.

Today some of the largest companies, allegedly "polluting" the earth,

are the largest contributors of funds to the environmentalist movement.
Prince Philip is one of their heroes, yet his son Prince Charles owns a
million acres of forested land in Wales from which timber is regularly
harvested and, in addition, Prince Charles is one of the largest owners of
slum housing in London, where pollution thrives. His ample income
includes the Duchy of Cornwall, rents from homes, farms and
businesses.

Prince Philip (Philip Mountbatten) presides over the Order of the Garter
and is director of the World Wildlife Fund. He also heads the UN's Sacred
Literature Trust. The goal is a One World Bible, according to Texe Marrs
in his CIRCLE OF INTRIGUE 70-72 (1995). Philip, Duke of Edinburgh,
married Princess Elizabeth of York (now Elizabeth II) in Westminster
Abbey on 20 November 1947. He likes to eat roast goose and drink
single malt Scotch.

Prince Philip -- the Queen's consort --_is head of the Worldwide Fund for
Nature -- a leading sponsor of Eco-92. He shares a fascination for the
lowly microbe, and stated publicly a desire to be reincarnated as a
"deadly virus'' to help eliminate the world's unwanted human population
("useless eaters"). In a May 18, 1990 address to the National Press Club
in Washington, D.C., the Prince stated: "It is now apparent that the
ecological pragmatism of the so-called pagan religions, such as that of
the American Indians, the Polynesians, and the Australian Aborigines,
was a great deal more realistic in terms of conservation ethics than the
more intellectual monotheistic philosophies of the revealed religions.''

America, which supposedly doesn't want a King or Queen, has

newspapers and magazines who print news articles very favorable to
the British Royalty. Some say this is to constantly remind Americans
that some fellow human beings are "Royalty" and is really only a clever
mask to conceal a subtle conditioning and normalize the existence of
class and economic distinctions and inequalities. It is apparent that
over the years many fawning wealthy American families have married
into the more respectable and more socially established English
families.

CASTRO DAUGHTER CALLS FOR JUSTICE FOR HER FATHER

Alina Fernandez Revuelta, a daughter of Fidel Castro, said there had

been thousands of victims at the hands of her father. She fled Cuba in
1993 calling Castro a torturer, drug smuggler and terrorist. She was
quoted in the daily Le Parisien: "The Pinochet affair is going to create a
legal precedent for all dictators, including those who are still in power,
like Fidel Castro."

BRITISH ABSOLUTE JUDGE-MADE IMMUNITY WOULD HAVE PROTECTED

HITLER SAYS LAWYER FOR FORMER CHILEAN DICTATOR

Wednesday lawyers for Augusto Pinochet, the former Dictator of Chile,

said he had absolute immunity under British law which would have even
given some protection to Adolf Hitler for his "official acts" during the
Holocaust. Clive Nicholls told the five "law lords" that only parliament
can outlaw absolute immunity. When Lord Slynn, chief of the lord's
panel, asked if torture was a public act, Nicholls said it was if done "in
the name of the government."

[Point 4 of Study No. 7, Basic Aims of U.S. Foreign Policy, Council on

Foreign Relations (November 25, 1959) planned to: "Make more effective
use of the International Court of Justice, jurisdiction of which should be
increased by withdrawal of reservations by member nations on matters
(now) judged to be domestic."] The International Criminal Court, still not
approved by the U.S., is now coming into being.

FRENCH POPULIST MAY FACE 5 YEARS IN PRISON FOR TEN WORDS

French populist leader Jean-Marie Le Pen faces a German criminal trial

after the European Parliament lifted his immunity for stupidly stating
that Nazi concentration camps were "a detail in the history of the
Second World War." His punishment could be as long as five years.

BABE THE TALKING PIG WILL SOON BE BACK IN DELAYED SEQUEL

Universal Studios will soon release "Babe: Pig in the City," a sequel to
its 1995 Oscar-nominated film "Babe." The sweet-hearted swine will
venture into the urban jungle as barnyard animals will be made to talk.
Because of production delays, Universal canceled a scheduled world
premiere that would have benefitted the Children's Defense Fund. The
film will be ready for a November 25th opening.

GENETICALLY-ENGINEERED CORN AND TOMATO STORY ADDS CHIMP-

HUMAN SIMILARITY

As genetically-engineered vegetable products are not labeled in the U.S.

99% of chimp's genes are said to be the equivalent of humans.

SON OF KIRK DOUGLAS STANDS AGAINST CIVILIANS REARMING

Michael Douglas, on September 25, spoke out against the proliferation of

small arms: "The sad fact is that while the major armies of the world are
disarming, civilians are rearming."

SECOND OF AT LEAST THREE ANTI-GUN MANUFACTURER SUITS FILED

Thursday a $433 million suit was filed by the City of Chicago and Cook
County against 22 firearms makers, 12 suburban gun shops and 4 gun
distributors on the grounds they were all creating a public nuisance.
Chicago Mayor Richard M. Daley was quoted: "We are going to hit them
where it hurts, in the wallet." Miami is expected to file a similar suit
soon. The first suit in this series was filed in New Orleans and claimed
that guns were "inherently unsafe."

SEPARATION OF CHURCH AND POLICE

An Arlington, Texas police officer was fired for daring to wear a cross.
No religious pins can be worn on uniforms.
ANTI-UN GRANDMOTHER AND OTHER RADICALS RATTLED HEAD OF
NEW MEXICO'S STATE POLICE

According to The New American (Nov. 23) Lt. Bill Bowers, the head of
the New Mexico State Police, called a talk show host of Alamogorda's
KINN after the UN charter was criticized by a politically-aware retired
grandmother. Host Mike Shinabery was then questioned over the phone
about "radicals". Bowers then called the owner of the station, Dave
Nicholson, who said: "(I) found it highly unusual that he (Bowers) would
call and quiz Mike about his guests."

ONCE-DEAD NATIONAL I.D. WILL MAKE A POLITICAL COMEBACK

The National Governors Association will help overhaul Executive Order

13083 so that a national ID system can become a reality.

OTHER NEWS

Paula Jones won't get an apology but will receive lots of money
($850,000) from President Clinton. Almost half (about $400,00) will come
from Chubb Group Insurance.

Mike Wallace today on 60 Minutes will feature nuns playing the stock
market.

Billionaire Warren Buffett will play "Daddy Warbucks" next month in an

Oklahoma production of "Annie." Cartoonist Al Capps created this now
to be Buffett's character to represent the founder of the Federal Reserve
System -- Paul M. Warburg (CFR) of Kuhn, Loeb & Co.

On Friday King Hussein of Jordan said his cancer had been cured.

Indonesia rioting continued as troops killed students living in a nation where gun ownership is
tightly controlled and few outside the military or police own pistols.

Two Israeli jets fired missiles on November 14th at the village of Sojod. Planes have raided
suspected Hezbollah bases each day since November 8. week003.htm

http://www.biblebelievers.org.au/
 THE WEEK THAT JUST WAS
VOL. 1. NO. 2. (to November 8, 1998)

BB=Bilderberger CFR=Council on Foreign Relations RS=Rhodes Scholar

TC=Trilateralist

GOVERNOR BUSH SHOWS MAJOR STRENGTH AMONG HISPANICS

While Minnesota elected Jesse "The Body" Ventura, former bad boy
professional wrestler and a Ross Perot Reform Party candidate, as their
new Governor, George Walker Bush (S&B 1968) captured 49% of the
Texas Hispanic vote, according to exit polls after predicting he would
pick up 40%, in his decisive total Republican top office takeover. The
only remaining statewide Democrat is Texas Supreme Court Justice
Gonzales who is retiring in December. Rick Perry, as Lt. Governor, will
automatically become the third Republican Governor since
Reconstruction if Bush runs and wins the Presidency in 2000.
Democratic land Commissioner Gary Mauro lost to Bush by almost 40
points (1.4 million votes). A nameless Mauro aid, when Mauro was
confidently predicting victory, said: "I feel like I'm on a flaming toboggan
to hell." John Sharp got 70% of the Hispanic vote in his losing race
against Perry (just over two points). The seven largest states in which
Hispanics are a critical "swing vote" have 210 electoral votes -- 77% of
the votes needed to take the White House. In Texas Hispanics in the
year 2000 will be 27% of Texas\'92s voting age population.

NEWT LEAVES SPEAKERSHIP AND SEAT IN CONGRESS

Newton L. Gingrich (CFR), who said he would rather leave than "allow
the party to cannibalize itself," may now be replaced with "a new face."
House Ways and Means Committee Chairman Bill Archer (R-Texas)
bowed out saying: "I may be the right man for the job, but the job just
isn't right for me." The two big contenders now are Rep. Bob Livingston
(R-Louisiana) and Christopher Cox (R-California). Livingston is serving
his 11th term. He is Chairman of the Appropriations Committee and has
been endorsed by House Whip Tom DeLay.(R-Texas). Cox heads the
investigation into technology transfers to China.
There are now 223 Republicans, 211 Democrats and one independent in
the House. House Republicans will meet for a secret ballot on November
18.

U.S. HAS BEEN LIVING ON IMPORTED CAPITAL FOR LAST TWO

DECADES

John M. Berry's November 5th Washington Post Service column noted

that the U.S. has been living beyond its means for the past twenty years.
In the second quarter of 1998 money from abroad totaled $215 billion --
roughly equal to the U.S. trade deficit. The value of foreign investment in
the U.S. now far exceeds that of American investment abroad.

AMERICANS SAVINGS RATE LOWEST SINCE GREAT DEPRESSION

Several years ago an Austin TV report said that the average American
was two pay checks away from the street. In September Americans
spent $100.20 for every $100 in after-tax earnings as personal savings
became negative for the 1st time in 65 years. In the post WWII period
savings has been between 5-10% but slipped to below 4% in 1997.

More than 50 million U.S. households carry credit card debt. The
average amount is now $7,000. Household credit card debt has doubled
in last six years. 70% of credit card holders have an outstanding
balance. In 1997 there were 1.35 million bankruptcies (8 times the rate
in the Depression).

Last year consumers paid $65 billion in credit card interest. The average
U.S. household pays more than $1,000 annually in non-deductible
interest. The bankruptcy reform bill, which would have made it harder to
discharge credit card debts, fizzled after President Clinton threatened a
veto. Consumer outstanding credit grew at a 7.9% annual rate in
September compared to 4.2% in August.

WALL STREET: MARKET RISES AS CORPORATE EARNINGS REACH

RECORD LOW

The dollar by Friday was at its highest level against the German mark in
6 weeks. While unemployment is at a record low of 4.6%, job growth is
down. In October the market expected 178,000 jobs but only 116,000
were created. In October manufacturing jobs declined by 52,000. 1998
may be the highest job cut year in the past decade. Third quarter
earnings were the worst in seven years. Layoffs are up and the average
stock is hurting but the market is now 350 points away from an all-time
high. By March 1999 the DJIA may hit 10,000. With the $240 billion U.S.
trade deficit and a projected $300 billion deficit next year, Vice-
President Albert Gore, Jr. (CFR) told 128 American and European
executives of the Transatlantic Business Dialogue Friday that the U.S.
"cannot be the importer of only resort." President Clinton will take this
message to the meeting of Asia-Pacific Economic Conference leaders
this month. Meanwhile the Charleston, N.C. Two-day conference,
according to Reuters, did reach an agreement "on an outline for a
broader transatlantic economic partnership."

CLINTON CALLS FOR CLOSING OF U.S. GUN LAW LOOPHOLE

On Saturday President William Clinton (BB/CFR/RS/TC) directed what

Reuters termed his "his government" to find a way to close a loophole
that allows dealers to sell guns at gun shows with no questions asked.
He said: "I believe this should be the law of the land. No background
check, no gun, no exceptions." On November 30th purchases of all
firearms, not just handguns, will require Brady background checks.

TIME SERIES HITS ON CORPORATE WELFARE

Two years after reducing welfare for individuals, says Time, corporate
welfare continues to expand. It is estimated at $125 billion a year. The
cost is the equivalent of two weekly paychecks from every working man
and woman in America. Over the past six years $5 billion has gone to
the Export-Import Bank which subsidizes companies that sell goods
abroad. The five companies that have benefitted the most are: AT&T,
Bechtel, Boeing, General Electric and McDonnell Douglas (now a part of
Boeing). These five companies, which accounted for 40% of all loans,
grants and long-term guarantees in this decade have cut employment by
38% (cutting more than a third of a million jobs). There is now a pro-
corporate welfare bureaucracy that consists of an estimated 11,000
organizations and agencies.
BARRONS SAYS JORDAN'S CBS DEPARTURE FOLLOWED BOARDROOM
BATTLE

The November 2 issue of Barrons reported that chief executive Michael

Jordan's departure from CBS followed an unsuccessful battle against
cost-cutting Mel Karmazin (his No. 2 man and top CBS stockholder) who
ended up on top of the Tiffany network. CBS stock went up 10% after
news of Jordan's retirement. CBS is now #1 in overall ratings after it has
appealed to males aged 18-24 and paid $4 billion to broadcast NFL
football. Karmazin made his fortune on radio stations that carried shock-
jock Howard Stern.

FORMER DICTATOR IS STILL "IMMUNE" SAYS BRITAIN'S SECOND

HIGHEST COURT AS "LAW LORDS" WILL DECIDE HIS FINAL FATE NEXT
WEEK

The ailing ex-ruler of Chile, Augusto Pinochet, was held to have

"immunity for criminal acts committed in the course of exercising public
functions." British prosecutors, who were ordered to pay Pinochet's
legal expenses, have now appealed to the House of Lords. A British
prosecutor told the five Law Lords on November 4thn that international
law does not allow immunity. Alun Jones said that international
conventions should be used (an International Criminal Court is now in
the process of being created). Amnesty International and Human Rights
Watch have both submitted briefs stating that immunity is outdated
under international law. Isabel Allende, whose father was killed in Chile
when Pinochet seized power in 1973, attended the hearing. The Spanish
government is now requesting that Britain expedite Pinochet.

UN WAR CRIMES INSPECTORS DENIED ACCESS BY MILOSEVIC

Richard Holbrooke (BB/CFR/TC) said that Yugoslav President Slobodan

Milosevic agreed to grant access to UN investigators after NATO
averted air strikes on Serb targets. But now the Serb leader has barred
Louis Arbour, chief prosecutor of the war crimes tribunal and Gabrielle
Kirk McDonald from traveling to Kosovo. McDonald, a U.S. District Judge
in Houston, Texas, who is also the President of the UN War Crimes
Tribunal, called on the Security Council Thursday, from the Hague in the
Netherlands, to force Yugoslavia to allow an investigation. She said:
"Essentially (Yugoslavia) has become a rogue state, one that holds the
international rule of law in contempt." Secretary of State Madeleine
Albright (CFR) stated: "3Serb compliance with U.N. resolutions is not yet
complete."

BUTLER SAYS THE SECURITY COUNCIL MAKES "BINDING" WORLD LAW

In response to Saddam Hussein's latest refusal to permit UN

inspections, unilateral action by the U.S. seems doubtful as more
responsibility is now being shifted to the UN. U.S. apparently has less
support in the 15-nation Security Council. The two countries most likely
to support Iraq are Russia and France (Iraq owes billions to Russia).
Australian Richard Butler has said his inspection team will remain after
disarmament is accomplished to make sure no new weapons are
created. Saddam Hussein is being treated for cancer by European
doctors. On NBC's "Today" Show Butler stated: "The (Security) council
has made binding international law. Iraq has to be disarmed under that
law" 174 U.S. war planes remain on the alert. The new UN resolution
does not call for the use of force. The French seem to be the most
insistent in favor of Saddam Hussein. King Fahd told Cohen that he
would not permit U.S. attacks from his country such as was allowed
during the Gulf War. After a 11-nation visit Defense Secretary William
Cohen (CFR/TC) said time was short for compliance. The sanctions will
remain until weapons inspectors certify that Iraq has gotten rid of all
weapons of mass destruction. The Security Council has asked U.N.
Secretary-General Kofi Annan to help resolve the standoff. A late
morning Sunday Camp David meeting, which will consider whether to
use force on Iraq, will include Albright, Cohen, Samuel R. "Sandy"
Berger (CFR), National Security Adviser, and CIA Director George
Tenet (CFR).

KING HUSSEIN BEING TREATED AT MAYO CLINIC

King Hussein (33rdM) of Jordan has had five of six chemotherapy

sessions in Rochester, Minnesota. He has been at the medical center
since late July for treatment of non-Hodgkins lymphoma.

U.S. LOST BID FOR SEAT ON U.N. BUDGET COMMITTEE

Although the U.S. has paid an additional $197 million of its regular 1998
dues, it still owes the U.N. $1.3 billion. On Friday the U.S. and Germany
lost a contest for seat on the budget committee to Britain and Italy. In
1996 the U.S. was ousted from the committee for the first time in 50
years. The U.S. is the largest UN contributor ($2 billion annually) but
now has no representative on its budget committee.

RUSSIA DEBTS IN DOUBT AS U.S. SUPPLIES FOOD FOR FIRST TIME

SINCE EARLY 1990'S

In the wake of a collapsing ruble, a budget deficit and a deteriorating

economy, Russia announced on Tuesday that it would not pay its foreign
debts next year. Loans from foreign lenders will be renegotiated. This
years foreign loans are $3 billion and an additional $17 billion is due
next year. For a while Yevgency Primakov had held out hope but now is
unable to get the support of the IMF. A $625 million U.S. aid package is
now being sent (3.1 million metric tons of food) as Russia deals with the
worst grain harvest in 40 years. Food prices have risen about 50%. Grain
production in Russia is down 45% from 1997. This is the first time that
the Russians have needed significant food aid since the collapse of the
Soviet Union in the early 1990's. Meanwhile U.S. farmers are suffering
from the lowest prices in 52 years. Japan has now agreed to make a
$800 million loan.

On August 17, 1998, Russia suspended trading in its high-interest paying

short-term debt (GKO treasury bills and OFZ bonds). The "debt freeze"
was accompanied by a devaluation of the rouble and a 90-day
moratorium on Russian commercial bank repayments of foreign debt.
The IMF is demanding that the Russian government reach an agreement
with foreign holders of its domestic treasury bills. Several of the largest
foreign creditors have agreed to accept new ruble-denominated paper as
compensation for the treasury bills.

World Bank President James Wofensohn (BB/CFR) will visit Russia next
Thursday. The World Bank, like the IMF, suspended loans to Russia.

If Russia doesn't receive any foreign aid, the government will print new
money to cover its budget deficit. Economy supremo Yuri Malsyukov
(First Deputy Prime Minister) predicted that 15 billion roubles ($1 billion)
will be printed by the end of the year. He said the rouble won't drop any
lower than 20 to the dollar (before the August crisis the rouble-dollar
ratio was 6 to 1). The ratio now is 16:1. Reuters said that Deputy
Finance Minister Mikhail Kasyanov told Russian RTR television in
London on Friday: "Foreign creditors who came to work in roubles will
stay in roubles." A fifth round of talks is due between November 16 and
21.

One victim of the Russian default was Strategic Partners run by "Dr.
Doom" Henry Kaufman (CFR) -- Salomon Brother's former chief
economist. He was quoted by Barrons on November 2nd: "This was
credit without a guardian. There's the illusion that it (Russia) has a
market, that you can sell it and pass the risk on to someone else."

RUSSIA NEEDS INVESTORS TO PRODUCE OIL

Strobe Talbott (CFR/RS/TC), Deputy Secretary of State, said Friday that

Russia needs outside investments of about $15 billion a year to return to
Soviet-era oil production levels. He said that western companies would
not make long-term investments unless Russia adopted a clear tax
system, secured property rights and showed a willingness to take
disputes to international arbitration. In his Stanford speech he also said
that Prime Minister Yevgeny Primakov is operating without a realistic
budget or a credible system for collecting taxes: "Economic decline
carries with it the danger of political drift, turmoil and even crackup," he
said.

YELTSIN WILL APPOINT LEGAL PANEL SOON

A legal panel will be named to review changes in the Russian

Constitution -- including provision for a Vice-president -- a post stricken
from the 1993 Constitution after his VP tried to lead a mutiny against
him. On Friday Yeltsin denounced Russian communist leaders for recent
anti-Semitic statements and verbal attacks on journalists. "Any attempt
to insult ethnic feelings or limit the rights of citizens for ethnic reasons
will be cut short in conformity with the Constitution," he said. Retired
General Albert Makashov made the insensitive unreported comments
during public rallies last month. Yeltsin returned to Moscow today and
will meet with Japanese Prime Minister Keizo Obuchi between
Wednesday and Friday of this week.

RUSSIANS COMPLETE FIRST PART OF INTERNATIONAL SPACE STATION

The first component of the new International Space Station will be

launched by the Russian on November 20. The $40 billion station will
involve the U.S., Japan, Russia, Canada and 12 European countries.
NASA will launch its 1st module in December.

REWRITE OF TEXAS CONSTITUTION, WITHOUT A CONVENTION, IS

GOING TO GO BEFORE NEXT TEXAS LEGISLATURE

While political tradition has always called a convention of elected

delegates in Texas before adopting a whole new Constitution (except
the last time in 1974 when the Texas legislature appointed itself to be a
convention), State Senator Bill Ratliff and State Rep. Rob Junell have by
themselves decided what the new constitution should say. In a front-
page article in Friday's Austin American-Statesman, Ratliff was quoted
at some length as favoring giving the Governor of Texas the power to
appoint judges and officials now elected at the polls. Ratliff said "we are
constantly bumping up against arcane and restrictive things in the
Constitution that don't really need to be there." Rep. Junell was quoted:
"We need to get into the 21st century." Democratic- turned-Republican
Chief Justice John Thomas Boyd of the Amarillo 7th Court of Appeals
was quoted: "The average person has no more idea than a goose what
makes a good judge or not." After the initial 1987 60 Minutes expose on
the Texas Supreme Court, Republican reformers backed by business and
medical contributions took over the Texas high court.

CITIGROUP SHUFFLE CLAIMS WEILL'S HEIR-APPARENT

In April two of the biggest names in insurance and banking (Travelers

Group and Citicorp) announced the creation of Citigroup, with $700
billion of assets. Instantly, it became one of the largest financial
services institutions in the world, with 100 million customers in 100
countries. Citigroup is led by Citicorp Chairman John S. Reed (
BB/CFR) and Travelers Chairman and Chief Executive Officer Sanford I.
Weill. This week Jamie Dimon, 42, Citigroup President and Chairman and
Co-CEO of Salomon Smith Barney, left in a "mutual" decision after a
$326 million third-quarter loss. Bond trading losses were $1.3 billion.
Dimon ran the Salomon Smith Barney securities business with Deryck
Maughan before its parent Travelers Grouped merged with Citicorp last
month to form Citigroup.

On November 1 Citigroup, Inc. announced that it is integrating the

activities of its Salomon Smith Barney unit and the corporate banking
activities of Citibank to create the world's strongest combined global
investment and corporate bank. Michael A. Carpenter and Victor J.
Menezes will lead the combined entity reporting to John S. Reed and
Sanford I. Weill. Deryck C. Maughan will become VC of Citigroup also
reporting to Reed and Weill.\par }{\plain \par }{\plain In April Weill bristled
at the idea that Travelers would need to divest anything. "We won't have
to spin off anything to make this happen," Weill said. "We are applying to
the Federal Reserve to be a bank holding company. We have no fewer
than two years and no more than five years to keep activities that don't
fit into this category." The Dimon resignation came after a pending bill
to legalize creation of the presently illegal financial services super-
corporation (Citigroup) was defeated despite a fund-raising breakfast
that had been earlier co-hosted by Sandy Weill for Republican Senator
Alfonse D'Amato (Chairman of the Senate Banking Committee).
Meanwhile D'Amato lost his senate seat and will be replaced by Phil
Graham as the chairman of the powerful Senate Banking Committee.

Dimon was Weill's right-hand man at Travelers Group and was

considered heir-apparent to Citigroup co-Chief Executive Sandy Weill
before his sudden resignation. Citigroup stock fell 2-3/16 points to 43-
15/16 Tuesday. Schroders & Co. lowered Citigroup's rating from
"outperform significantly" to "perform in line." Warburg Dillon Read
analyst Thomas Hanley also downgraded the shares on Monday after
Dimon'2s resignation.

FORMER WEILL WALL STREET PARTNER WILL VISIT LONDON

Arthur Levitt, now Chairman of the Securities and Exchange

Commission, will meet with overseas regulators in London next week to
consider global disclosure standards for hedge fund lenders such as
banks and brokerages.

FORBES ARTICLE CALLS FOR ONE WORLD CURRENCY

An interview with Steve Hanke in the November 16 issue of Forbes asks:

"Who needs all those silly little currencies?" The article noted that as
much as 70% of all U.S. currency and 40% of German marks are being
held abroad by foreigners who don't trust their own money.

OTHER COUNTRIES WILL NOW GIVE IMF MORE MONEY

Now that Congress has passed the IMF funding bill, other countries will
be expected to give an additional $67 billion to the IMF which will be
charging higher interest and make shorter-term loans. There will be
private sector as well as government to government loans. IMF loans to
Korea, Thailand and Indonesia have now totaled over $100 billion.

TREASURY SLUSH FUND PART OF BRAZIL BAILOUT

The Exchange Stabilization Fund, set up in the 1930s to protect the U.S.
dollar, can be tapped by the President and the U.S. Treasurer without
action from Congress. The fund was used in Mexico in 1995 when $20
billion was given which has since been repaid with interest. It was also
used in both S. Korea and Indonesia. Citigroup is now bullish on Latin
America after the G-7 statement and promises by President Cardoso of
Brazil to save $84 billion over the next three years. Brazil is the world's
9th largest economy and has been paying as high as 40% interest on
short-term debt.

COMMUNISTS MAKING GAINS IN ITALY

A former communist, Walter Veltroni, 43, took over the top post of the
Democrats of the Left in Italy replacing Massimo D'Alema who was
sworn in last month as Italian Premier, the first former communist to
hold the top government post in Rome.

NEW "ETHNIC BULLET" BIO WEAPON MAY BE USED ON ARABS BY

ISRAEL
An unconfirmed report from South Africa claimed that Israeli scientists
have made a biological weapon that can target the Arab genetic system.
It is said to have been originally developed in Apartheid South Africa for
use against blacks. Israeli spokesmen would not confirm or deny the
report.

ROCKETS RETORT TO ANTI-ISRAEL REMARKS

On Monday Israeli warplanes made their 8th raid on Lebanon and

rocketed suspected positions of the pro-Iranian guerrilla group Hizbollah
(Party of God).The raid followed comments by Sheikh Hassan Nasrallach
who incited Palestinians to kill Israelis.

ARAB TERRORIST DISARMAMENT AND ARRESTS PROCEEDING SLOWLY

The Israeli cabinet has demanded that Arafat launch an "all-out war on
terror." Dennis B. Ross, U.S. special envoy to the Middle East, stated the
CIA will not make independent judgments on the PLO Authority's
security compliance during the 12-week implementation period ahead.
The information will be interpreted by Ross or his deputy (Aaron Miller).
James P. Rubin (CFR) at the State Department said there are no plans to
make the CIA's findings public.

Implementation of the Oct 23rd Wye Arafat-Netanyahu accord was

postponed briefly pending cabinet and parliamentary review. Clinton
urged going forward as "the only answer" to "criminal terror." Netanyahu
refused to schedule a vote on the land-for-security accord until he
received American assurances that the Palestinians would act on an
Israeli arrest demand. Israel's Defense Minister, Yitzhak Mordechai, said
Israel was "waiting for a list of 30 people the Palestinians promised to
arrest." The accord calls for the arrest of 10 fugitives each month during
the 12-week time period. The arrests will be made on the basis of
political association and are the type of arrests that have been declared
unconstitutional in the U.S. for fifty years. Israel will monitor each stage
of the PA's battle against terrorists operating within the PA autonomous
areas (the Hamas and Islamic Jihad groups) before implementing the
Wye agreement. Hamas is well-known to Palestinians for its social
welfare services which may be impacted.
The Palestinian National Authority's 40,000 police force will have to
reduce its number by a quarter. Israel will make two further
redeployment of its troops. The Palestinians will have full or partial
control over 40% of the West Bank. Real control will increase from 3% to
4% of the West Bank. 750 of some 3,000 jailed Palestinians will be
released from Israeli prisons.

Israeli Ambassador Zalman Shoval said approval of the Wye agreement

is being delayed, in part because of terrorist attacks but also to make
sure the Palestinians carry out the renunciation of calls for Israel's
destruction in the PLO charter and confiscation of illegal weapons -- two
items which senior Palestinian leaders have denied. Twenty-six
provisions of the Palestinian National Covenant will be repealed. The 1st
step has been taken by the PLO Executive Committee to purge its 1964
charter of clauses antagonistic to Israel. This will occur at a full
meeting of the Palestinian National Council in Gaza which President
Clinton is scheduled to attend. The 300-member PLO Central Council will
meet by the end of November. The Israeli cabinet said that it would not
cede more West Bank land unless the 700-member PNC votes in a
meeting in December. On October 26, Saeb Erekat, a Palestinian
negotiator, said on Palestinian TV, that members of the council and PLO
would gather "only to listen to President Bill Clinton."

Israeli remains America's number one world ally and receives about $4
billion annually in U.S. foreign aid. The new accord will result in still
more U.S. aid (between $500 million to $1 billion) to offset Israel's post-
Wye accord "security risk." Polls in early 1996 found that only 21% of
Palestinians favored an armed struggle with Israel. In August 1998 that
percentage rose to 44%. In October 1998 the percentage rose to 51%.
The U.S. has pledged to provide military aid if intermediate-range
missiles are deployed by any of Israel's neighbors.

"IN THE RED" IN CHINA--BAILOUT UNLIKELY

On November 1 the Associated Press revealed investor's concerns with

China's 240 international trust and investments corporations (Itics). The
Itics are being run mainly by politicians with funding from foreign
bankers. The central bank of China recently ordered the closing of
Guangdong International Trust and Investment Corp. (Gitic). It had
accumulated some $2 billion worth of debt. While China has foreign
reserves of more than $140 billion, it is not likely to do a bailout. Gitic
circumvented the State Administration for Foreign Exchange (China's
official channel for registering foreign loans) by borrowing money
through subsidiaries (mostly in Hong Kong). So both the Itics and the
lending banks are considered responsible for the risky loans. China,
according to AP on November 2, is anticipating an 8% growth in 1998
but has ordered banks to lend more money as workers have been laid off
from state-run factories

ABC DECIDES NOT TO AIR OLIVER STONE PROGRAM ON TWA FLIGHT

800

A prime-time special by Oliver Stone which was to examine whether a

Navy missile was the cause of the 1996 crash, has been dropped by ABC
after relatives and ABC's own news division became angry over the
show.

SUTTON UPDATE

Gaylon Ross reports that Antony C. Sutton is 71 -- not 85 years old -- and
that he won his fight with the IRS. They had to return the funds plus
interest and write him a letter of apology.

http://www.biblebelievers.org.au/

THE WEEK THAT JUST WAS

Vol. 1. No. 1. (to November 1, 1998)

BB=Bilderberger CFR=Council on Foreign Relations RS=Rhodes Scholar TC=Trilateralist

MOTHER EARTH WORSHIPERS SURFACE -- HUMAN RIGHTS FOR APES

PROPOSED

The latter part of October 1998 introduced the "Earth Liberation Front."
Last week, according to the Christian Science Monitor, seven early
morning fires caused $12 million dollars of damage at Vail Colorado.
This may just be the beginning. The ski expansion threatens a possible
lynx habitat. The ELF communique read: \'93We will be back if this
greedy corporation continues to trespass into wild and unroaded areas."
In June 1998 eco-vandals in Wyoming snipped 260 sections of barbed-
wire fence in retaliation for cattle grazing on public lands. In southern
New Mexico, cattle were recently gunned down by AK-47-totting earth
radicals. Milton Kleg, a professor of sociology at the University of
Denver, stated: "One act in itself doesn't" indicate, necessarily, an
escalation." he added: "To me, when they start killing people, that would
be a real escalation." In same news broadcast that began with the ELF,
a study of monkeys was reported from Columbia University that said
man is not so special since monkeys can also be taught to count. A
Michigan mink rancher recovered most of his 5,000 minks liberated on
October 26 by the ELF. "As corporate destroyers burn in the west,
wildlife nations will be liberated in the north," said an ELF statement.

PLANET OF THE APES

The Great Ape Project of New Zealand is asking parliament to grant

human rights to apes in an animal welfare law. Those who grow up in a
country that no longer holds out any prospect for significant private land
ownership have gone for the idea that they should serve as storm
troopers of the planet to make sure that those who still own something
will be increasingly unable to enjoy it. When arson is seen as an
appropriate means to get even with the rich resort owners, this is an
indication of how violent the times ahead will be on the part of the now
surfacing radical environmental

INVESTMENT BANKER HOLBROOKE MOVES TO CYPRUS -- SERBS STILL

MAY BE BOMBED AND INVADED BY NATO

(BB/CFR/TC ) went from negotiating with the Slobodan Milosevic to

mediating in Cyprus (Russia has been supplying missiles for defending
the island). The U.S. has spent $10 billion so far in the occupation of
Bosnia. President Clinton said that the military option in the Balkans still
exists.

MAJOR BANKRUPTCY GETS ONLY SMALL MENTION

Creamie Mae went bust. But barely a whisper in the news about it.

HEAVY HITTING LICENSE RESTORED

Tyson will box (and bite?) again.

BAILOUTS GOOD FOR MARKET?

Since 1982 the market has tended to be an excellent buy "around a

major bailout."

TV NETWORKS MAY BE UP FOR GRABS

CBS had executive shakeup from Jordan to veteran broadcaster. Edgar

Bronfman is one of the potential buyers (CBS lacks a factory-studio).
There is a new "witch" show -- Aaron Spelling has a "Midas touch." GE
may also sell NBC. Toughest season in years. The three networks now
have 50% of the TV audience (down from 90% at one time). $15 billion
sales price for NBC? FOX does have a factory but no cable distribution.
Free TV may no longer be free soon.

NO MORE CAR DEALS WILL FREE FROM HASSLES

Republic is gobbling up car dealerships and is offering: "No haggle, no

hassle" single no-negotiation deals. The CEO of Republic, Huizenga, says
he has $8 billion in the pipeline. It's illegal to sell a new car except
through a local licensed car dealer.

IMF TOLD TO GIVE DEFAULTERS STILL MORE MONEY

In an October 6, 1998 column, Pat Buchanan said that the IMF exists to
protect investors not developing countries. In a closed speech, Treasury
Secretary Robert E. Rubin (BB) told the IMF it was O.K. to go back and
make more loans to countries that had defaulted on their debts. A front
page story in the L.A. Times last month quoted Anatoly Chubais as
admitting he "conned" the IMF about Russia It's condition to gain the
$20 billion bailout last year. Buchanan ended his column: "They didn't
share their winnings with us, so why should we share their losses with
them?"
RUSSIA -- TSAR PROPOSED AFTER IMF SAYS "NO" TO MORE MONEY

Former Finance Minister Alexander Livshits called for a "financial tsar"

in Russia. Meanwhile Yetsin (who still has the nuclear briefcase of
22,000 weapons) is on vacation in the Black Sea resort of Sochi while
ex-KGB and ex-communist Primakov runs the country. The IMF spent ten
days in Russia but left without approving the release of $4.3 billion that
was promised in June. Russia has $17 billion in external debt repayment
due next year and has just passed an economic recovery plan that
Primakov said would strengthen the regulatory role of the state. Taxes
will have to be paid and the "shadow economy" will be stamped out.
George Soros (BB/CFR) has shut down two of his eight funds after losing
$2 billion in Russia. His management will move from London to New
York.

FAT AMERICANS SHOULD GIVE RUSSIANS GRAIN AND MONEY

In Kansas it rained corn which is filling up silos. Russia is begging for

grain in view of the record U.S. surplus. But some say Moscow would
rather have more money. Ike said to sell them anything they can't shoot
back. PBS will feature a close look at "Fat America" on November 3.

BAD BRAZIL BAILOUT

Jeffrey Sachs of Harvard said the IMF Brazil bailout will just bring more
problems. The real problem is too strong a currency. Brazil needs a roll-
over. Sachs said a $22 billion IMF bailout lasted only three weeks in
Russia due the over-valued ruble. Reserves in Brazil fell by $30 billion as
investors fled despite interest rates on national bonds of up to 50%.
Brazil had $44 billion in the bank and $70 billion in debts that were due
on Halloween. The IMF is bailing out the politicians and the Western
banks. A $7 billion loan to Brazil will come from the Economic
Stabilization Fund (funded by Congress but controlled by the President
and the Secretary of the Treasury).

U.S. STEEL JOBS DOWN -- SILICON VALLEY IMPORTS ENGINEERS

As the U.S. served as the world's steel dumping ground, the 1998 U.S.
trade deficit is estimated to total $299 billion. The number of steel jobs
in the U.S. has declined from 500,000 to 170,000. The IMF likes the steel
dumping because it raises the dollars needed by indebted "developing
countries" who must repay IMF loans. The number of foreign engineers
in Silicon Valley is expected to double due to loosening of immigration
laws

MIDDLE EAST--DISARMING BEGINS OF ARABS BY ARABS

Arafat, a man who never has stood tall, finally agreed to take away
"weapons of terror" from Arab outlaws and provide extradition in
exchange for some land (13%) on the West Bank. The U.S. will be the
guarantor of the agreement. Right-wingers in Israel don't want to given
an inch of West Bank land. Arafat must amend the PLO charter to
renounce the anti-Israel language. The CIA will keep records on how
many illegal weapons are confiscated and will provide assistance and
training for anti-terrorist forces. This is the 1 st time the CIA has taken
such an overseas verifying role. Sen. John Forbes Kerry (D-
Mass.) (CFR/S&B 1966)said the CIA is now the lead agency in combating
terrorism. P.M. Benjamin Netanyahu survived a no-confidence vote.
Arafat put the founder of Hamas, Sheikh Ahmed Yassin, under house
arrest. A leaflet was faxed to Reuters threatening civil war on the
Palestinian Authority. Sheikh Hassan Nasrallah called Arafat a traitor
and called on the Palestinians "to topple Arafat before he implements
the accord." He added: "I call on all Palestinians who own knives,
grenades or guns to go out and kill Israelis"

NO MORE UN INSPECTIONS SAYS SANCTIONS-SICK IRAQ

Iraq became tired of unending sanctions as a TV interview featured a

open call for the U.S. to topple Saddam Hussein. The sanctions by the
UN followed the 1990 invasion of Kuwait.

TRUMP GETS PORK FOR PARK

Donald Trump got a federal subsidy to move a highway in return for a

park.

JONES GETS CHECK BUT CAN\'T CASH IT YET

Abe Hirschfeld, a NY real estate magnate, turned over a $1 million
check to Paula Jones.

THE "NEW AND KINDER" IRS ATTACKS ELDERLY STILL WORKING

SCHOLAR

Embattled Flashpoint editor Texe Marrs published an expose of IRS

harassment of America's best Skull and Bones scholar -- Antony Sutton
(who is now 71 years old and still going strong). A Sutton friend said last
year that Sutton was a fugitive in his own country. Marrs last month sent
out a list of some twenty-five things churches cannot do or else they will
lose their tax exemption.

IT'S HELL GROWING OLD IN AMERICA

50% of Americans have no pension plan. Federal taxes will increase by

25% as more Americans become elderly. If you retire at 62 you get only
70%. Plenty of savings are needed for golden years as health car costs
increase not covered by insurance (especially drugs). Most retire at 62
but many still have to work. Companies discriminate against hiring the
elderly because of the increasing expense of providing health insurance.
Baby boomers have a 10% chance of ending up in a nursing home.
Medicare is only short-term and Medicaid pays only if you are broke.

WAR ON HANDGUN MAKERS FOLLOWS WAR ON SMOKERS

New Orleans Mayor Marc Morial has filed a state lawsuit against 15 gun
manufacturers, five pawnshops and three firearms trade associations
following the example of the national legal battle against Big Bad
Tobacco. The lawsuit charges failure to build weapons with adequate
safety features. The suit is backed by the Center to Prevent Handgun
Violence -- the advocacy group that pushed the anti-handgun Brady Bill
into law.

MEXICO PUTS BITE ON BULLETS

Dozens of Americans are now in jail in Mexico for bringing guns into the
country -- even when they just made a wrong turn on the highway. You
can get a 30-year jail sentence for possession of a single bullet.
Highway signs are being posted on routes into Mexico.

FCC BLOWS TAPS ON PHONES FOR BENEFIT OF MORE EASY

LISTENING-IN

The FCC ordered makers of cellular phones to make it easier for

authorities to do wiretaps (still must be court-approved).

NOT LOST IN SPACE

John H. Glenn was back in orbit with what CNN called an

"international"4 crew. It'2s an introduction to "the next phase in space."
Stay tuned for the joint U.S.-Russian post-Cold War One World space
station coming soon. Norman Dodd are you rolling over yet?

BANKERS TRUST IS IN THE RED

Bankers Trust is the only U.S. bank in the red for this quarter. The 8th
largest U.S. bank is likely takeover target. But a German magazine
interview said no talks with Deutsche Bank were happening.

ALSO IN THE NEWS

A joint U.S.-Canada law enforcement task force was launched after

hidden sniper shot an Buffalo clinic "abortion provider." The FBI posted
a $100,000 reward against the murderous anti-abortion movement
militant suspect.

The date of the California primary has moved forward to March.

A New Mexico trooper killer in Cuba said he'd come back to serve a 5-
year sentence. He is one of three black revolutionaries that hijacked a
jet 26 years ago. But Cuba says it is the U.S. that gives a refuge to
fugitives. Castro offered a mutual exchange.

If you wear a uniform you can't be critical of the President.

Steve Forbes plans to run again.

The market survived the October month. Since 1960 the Fed has cut the
interest rate 11 times. Several Fed governors see no recession as likely.

Robert F. Duvall said that few schools teach children finance. The result
is economic illiteracy. Most states have no mandatory requirement for
economics.

http://www.biblebelievers.org.au/

WELCOME: Those who have real power typically avoid exposure and unwanted attention
by denying that they have it. The Establishment exists but doesn't want the public to get
the full picture of its control.

As Epperson stated, history happens either by accident or by conspiracy. Much of the

conspiracy revolves around moneyits creation and its use in corrupt politics. Many of
the groups are secret societies whose members agree obey unknown rulers. The common
thread is that they meet outside the view of both the public and the press. Those who have
allowed themselves to be brainwashed truly believe there is no such thing as
conspiracies. This is what the conspirators want them to believe. Those who seek to hide
conspiracies are fond of using ridicule to "label" and "stigmatize" serious inquirers. If the
people believe there are no conspiracies, they will spend no time to study them. However,
only a brief study will reveal that there have been and are many conspiracies! The
conspiracy, by virtue of the number of secret groups and individuals involved, is also so
vast that no one person can claim to have full grasp of it. By definition it is "secret" and
cannot be discovered without diligent inquiry. Just a basic overview requires studying
many sources.

The term "conspiratorialist" is an inevitable term that will be applied to anyone who delves
too deeply into the intentionally hidden history. In every era, dedicated truth-seeking
conspiracy scholars are a rare commodity. There is rarely any real money to be made and
foundation grants and subsidies are non-existent.

This will become the place or nook for those who want to find the real truth. As things
progress we hope eventually to be able to assemble a Conspiracy Encyclopedia
containing the membership lists of all active secret societies since 1776. The present trend
is not to publish books by any scholar who ventures into the forbidden issue of the power
elites. Initially we will post the names of scholars trying to be inclusive rather than
exclusive. All scholars have strengths and weaknesses but all have something to say.
Soon we will feature short bios, lists of books as well as tapes and details as to availability
and price.