(eng) ANTIFA INFO-BULLETIN, Supplement 32

Tom Burghardt (tburghardt@igc.apc.org)
Thu, 25 Apr 1996 03:43:07 +0200

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|| * -- SUPPLEMENT - * - April 22, 1996 - * - SUPPLEMENT -- * ||


CONTENTS: Supplement 32


Yugoslavia, Recolonising Bosnia, Part One

2. (ATS) ARM THE SPIRIT: Protest March For Refugees In
Lubeck, Germany

3. (ATS) "Klasse Gegen Klasse": Bombs In Support Of

4. (PRODH) MEXPAZ BULLETIN 68: Human Rights, Part II,
April 12-16

5. (ECONET) Phineas Priesthood Leaflets In Idaho Falls, ID

Declaration Of War Against The N.W.O.

Religion Lawsuit


{Editor's note: Michel Chossudovsky's article appears in the
Spring 1996 issue of _Covert Action Quarterly_, Number 56. AFIB
will upload this piece in three parts. It is re-printed with the
publisher's permission}


** Topic: ARTICLE: Dismantling Yugo **
** Written 8:55 AM Apr 16, 1996 by odin@magg.net in
cdp:p.news.discuss **
From: Erebus <odin@magg.net>

[*********PNEWS CONFERENCES************]

/* Written 3:16 PM Apr 8, 1996 by chosso@travel-net.com
in igc:econ.internati */
/* ---------- "No Subject Given" ---------- */
From: chosso@travel-net.com (M Chossudovsky)


by Michel Chossudovsky

The author is Professor of Economics at the University of Ottawa.
Copyright by Michel Chossudovsky, Ottawa, 1996. This text can be
posted. For publication in printed form kindly request permission
from the author: E-Mail:chosso@travel-net.com, fax:


As heavily-armed NATO troops enforce the peace in Bosnia, the
press and politicians alike portray Western intervention in the
former Yugoslavia as a noble, if agonizingly belated, response to
an outbreak of ethnic massacres and human rights violations. In
the wake of the November 1995 Dayton Peace Accords, the West is
eager to touch up its self-portrait as saviour of the Southern
Slavs and get on with "the work of rebuilding" the newly
sovereign states.

But following a pattern set since the onslaught of the civil war,
Western public opinion has been misled. The conventional wisdom,
exemplified by the writings of former US Ambassador to Yugoslavia
Robert Zimmermann, is that the plight of the Balkans is the
outcome of an "aggressive nationalism", the inevitable result of
deep-seated ethnic and religious tensions rooted in history.1
Likewise, much has been made of the "Balkans power-play" and the
clash of political personalities: "Tudjman and Milosevic are
tearing Bosnia-Herzegovina to pieces".2

Drowned in the barrage of images and self-serving analyses are
the economic and social causes of the conflict. The deep-seated
economic crisis which preceded the civil war has long been
forgotten. The strategic interests of Germany and the US in
laying the groundwork for the disintegration of Yugoslavia go
unmentioned, as does the role of external creditors and
international financial institutions. In the eyes of the global
media, Western powers bear no responsibility for the
impoverishment and destruction of a nation of 24 million people.

But through their domination of the global financial system, the
Western powers, pursuing their collective and individual
"strategic interests" helped from the beginning of the 1980s,
bring the Yugoslav economy to its knees, contributing to stirring
simmering ethnic and social conflicts. Now, the efforts of the
international financial community are channelled towards "helping
Yugoslavia's war-ravaged successor states". Yet while the World's
attention is focused on troop movements and cease fires,
creditors and international financial institutions are busy at
work collecting former Yugoslavia's external debt, while
transforming the Balkans into a safe-haven for free enterprise.

Adopted in several stages since the early 1980s, the reforms
imposed by Belgrade's creditors wreaked economic and political
havoc leading to disintegration of the industrial sector and the
piece-meal dismantling of the Yugoslav Welfare State. Despite
Belgrade's political non-alignment and extensive trading
relations with the US and the European Community, the Reagan
administration had targeted the Yugoslav economy in a "Secret
Sensitive" 1984 National Security Decision Directive (NSDD 133)
entitled "United States Policy towards Yugoslavia". A censored
version of this document declassified in 1990 largely conformed
to a previous National Security Decision Directive (NSDD 54) on
Eastern Europe issued in 1982. Its objectives included "expanded
efforts to promote a `quiet revolution' to overthrow Communist
governments and parties"... while reintegrating the countries of
Eastern Europe into the orbit of the World market.3

Secessionist tendencies feeding on social and ethnic divisions,
gained impetus precisely during a period of brutal impoverishment
of the Yugoslav population. The first phase of macro-economic
reform initiated in 1980 shortly before the death of Marshall
Tito "wreaked economic and political havoc... Slower growth, the
accumulation of foreign debt and especially the cost of servicing
it as well as devaluation led to a fall in the standard of living
of the average Yugoslav... The economic crisis threatened
political stability ... it also threatened to aggravate simmering
ethnic tensions".4 These reforms accompanied by the signing of
debt restructuring agreements with the official and commercial
creditors also served to weaken the institutions of the federal
State creating political divisions between Belgrade and the
governments of the Republics and Autonomous Provinces. "The Prime
Minister Milka Planinc, who was supposed to carry out the
programme, had to promise the IMF an immediate increase of the
discount rates and much more for the Reaganomics arsenal of

Following the initial phase of macro-economic reform in 1980,
industrial growth plummeted to 2.8 percent in the 1980-87 period,
plunging to zero in 1987-88 and to -10.6 percent in 1990.6 The
economic reforms reached their climax under the pro-US government
of Prime Minister Ante Markovic. In the Autumn of 1989 just prior
to the collapse of the Berlin Wall, the federal Premier had
travelled to Washington to meet President George Bush. A
"financial aid package" had been promised in exchange for
sweeping economic reforms including a new devalued currency, the
freeze of wages, a drastic curtailment of government expenditure
and the abrogation of the socially owned enterprises under
self-management.7 The "economic therapy" (launched in January
1990) contributed to crippling the federal State system. State
revenues which should have gone as transfer payments to the
republics and autonomous provinces were instead funnelled towards
servicing Belgrade's debt with the Paris and London clubs. The
republics were largely left to their own devices thereby
exacerbating the process of political fracturing. In one fell
swoop, the reformers had engineered the demise of the federal
fiscal structure and mortally wounded its federal political
institutions. The IMF induced budgetary crisis created an
economic "fait accompli" which in part paved the way for
Croatia's and Slovenia's formal secession in June 1991.


The economic package was launched in January 1990 under an IMF
Stand-by Arrangement (SBA) and a World Bank Structural Adjustment
Loan (SAL II). The budget cuts requiring the redirection of
federal revenues towards debt servicing, were conducive to the
suspension of transfer payments by Belgrade to the governments of
the Republics and Autonomous Provinces thereby fuelling the
process of political balcanisation and secessionism. The
government of Serbia rejected Markovic's austerity programme
outright leading to a walk-out protest of some 650,000 Serbian
workers directed against the Federal government.8 The Trade Union
movement was united in this struggle: "worker resistance crossed
ethnic lines, as Serbs, Croats, Bosnians and Slovenians mobilised
(...) shoulder to shoulder with their fellow workers (...).9


The 1989 enterprise reforms adopted under Premier Ante Markovic
played a central role in steering the industrial sector into
bankruptcy. By 1990, the annual rate of growth of GDP had
collapsed to -7.5 percent.10 In 1991, GDP declined by a further
15 percent, industrial output collapsed by 21 percent.11 The
restructuring programme demanded by Belgrade's creditors was
intended to abrogate the system of socially owned enterprises.
The Enterprise Law of 1989 required abolishing the "Basic
Organizations of Associated Labour (BAOL)".12 The latter were
socially-owned productive units under self-management with the
Workers' Council constituting the main decision making body. The
1989 Enterprise Law required the transformation of the BOALs into
private capitalist enterprises with the Worker's Council replaced
by a so-called "Social Board" under the control of the
enterprise's owners including its creditors.13 "The objective
was to subject the Yugoslav economy to massive privatisation and
the dismantling of the public sector. Who was to carry it out?
The Communist Party bureaucracy, most notably its military and
intelligence sector, was canvassed specifically and offered
political and economic backing on the condition that wholesale
scuttling of social protections for Yugoslavia's workforce was


A number of supporting pieces of legislation were put in place in
a hurry with the assistance of Western lawyers and consultants. A
new Banking Law was enacted with a view to triggering the
liquidation of the socially owned "Associated Banks". More than
half the country's banks were dismantled, the emphasis was on the
formation of "independent profit oriented institutions".15 By
1990, the entire "three-tier banking system" consisting of the
National Bank of Yugoslavia, the national banks of the eight
Republics and autonomous provinces and the commercial banks had
been dismantled under the guidance of the World Bank.16 A World
Bank Financial Sector Adjustment Loan was being negotiated in
1990. It was to be adopted by the Belgrade government in 1991...



1. See the account of Warren Zimmermann (former US Ambassador to
Yugoslavia), "The Last Ambassador, A Memoir of the Collapse of
Yugoslavia", Foreign Affairs, Vol 74, Number 2, 1995.

2. Milos Vasic et al, "War Against Bosnia", Vreme News Digest
Agency, No. 29, 13 April 1992.

3. Sean Gervasi, "Germany, US and the Yugoslav Crisis", Covert
Action Quarterly, No. 43, Winter 1992-93.

4. Ibid

5. Dimitrije Boarov, "A Brief Review of Anti-inflation Programs,
the Curse of Dead Programs", Vreme New Digest Agency, No. 29, 13
April 1992.

6. World Bank, Industrial Restructuring Study, Overview, Issues
and Strategy for Restructuring", Washington DC, June 1991, p. 10
and 14.

7. Sean Gervasi, op cit.,

8. Ibid.

9. Ralph Schoenman, "Divide and Rule Schemes in The Balkans", The
Organiser, 11 September 1995.

10. World Bank, op cit., p. 10. The term GDP is used for
simplicity, yet the concept used in Yugoslavia and Eastern Europe
to measure national product is not equivalent to the GDP concept
under the (Western) system of national accounts.

11. See Judit Kiss, Debt Management in Eastern Europe, Eastern
European Economics, May-June 1994, p. 59.

12. World Bank, op cit

13. Ibid, p. viii.

14. Ralph Schoenman, "Divide and Rule Schemes in The Balkans",
The Organiser, 11 September 1995.

15. For further details see World Bank, Yugoslavia, Industrial
Restructuring, p. 38.

16. Ibid., p. 38.


Michel Chossudovsky

Department of Economics,
University of Ottawa,
Ottawa, K1N6N5

Fax: 1-613-789-2050
E-Mail: chosso@travel-net.com

Alternative fax: 1-613-562-5999


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** End Part One: Dismantling Yugoslavia **


Date: Sun, 21 Apr 96 03:31:49 -0701
From: Arm The Spirit <ats@etext.org>
Subject: Protest March For Refugees In Lubeck, Germany

Protest March For Lubeck Refugees
Demand: Free Safwan Eid!

Around 800 demonstrators on Saturday marched through the
inner-city of Lubeck to demand the release of Safwan Eid. The
21-year-old refugee from Lebanon is accused of starting the
January 18th fire in a refugee complex in Lubeck which killed 10
people. The Lubeck Coalition Against Racism as well as Sokoni, a
coalition of African associations and groups from Hamburg,
organized the demonstration. The participants demanded that the
refugees affected by the fire be granted a guaranteed right to
remain in Germany and that the "racist investigation methods be

During the rally, Safwan's brother Mohammed Eid said that
his brother had nothing to do with the arson catastrophe. A man
from Africa who also lived in the house criticized the
investigation methods of the police and the state attorney's
office. Right from the beginning, he said, authorities treated
the inhabitants of the refugee home as being the guilty ones.

The demonstration was accompanied by 180 police and ended at
the burnt-out refugee home, which had since been defaced with
large swastikas. Following a minute of silence for the victims,
demonstrators painted over the nazi symbols.

[Immediately after the arson attack, the worst in post-War
German history, some neo-nazis were arrested near the scene and
once again world- wide media attention was focused negatively on
Germany. Then, in order to clean up its image and downplay racist
violence, the fascists were released and police announced that
ethnic tensions among the refugees themselves were to blame and
that a Lebanese inhabitant was the attacker. Significant evidence
from human rights groups as well as testimony from other
inhabitants disproves this, but Safwan Eid is still in prison
nonetheless. - ATS]

(Source: Neues Deutschland, March 25, 1996)

++++ stop the execution of Mumia Abu-Jamal ++++
++++ if you agree copy these lines to your sig ++++
++++ see http://www.xs4all.nl/~tank/spg-l/sigaction.htm ++++

Arm The Spirit is an autonomist/anti-imperialist collective based
in Toronto, Canada. Our focus includes a wide variety of
material, including political prisoners, national liberation
struggles, armed communist resistance, anti-fascism, the fight
against patriarchy, and more. We regularly publish our writings,
research, and translation materials in our magazine and bulletins
called Arm The Spirit. For more information, contact:

Arm The Spirit
P.O. Box 6326, Stn. A
Toronto, Ontario
M5W 1P7 Canada

E-mail: ats@etext.org
WWW: http://burn.ucsd.edu/~ats
FTP: ftp.etext.org --> /pub/Politics/Arm.The.Spirit


Date: Sun, 21 Apr 96 03:33:56 -0701
From: Arm The Spirit <ats@etext.org>
Subject: KGK Actions In Berlin

Bombs In Support Of Demonstrations

"Klasse gegen Klasse" Claims Responsibility For Recent Arson
And Bomb Attacks

According to police reports, there were several attacks on
Monday - a bomb exploded outside the home of a Free University
law professor and three high-priced automobiles parked in the
area went up in flames.

The group "Klasse gegen Klasse" [Class Against Class - KGK]
has since claimed responsibility for these attacks. There was no
danger to human life, according the group's communique. The
nine-page text, which explained the motive and background to the
actions, was entitled "The Sweet Dreams Of A Class Enemy And His
Frightened Awakening".

The professor had come into the group's sights for evidently
advocating an end to wage increases for workers. The action was
linked to the Berlin Senate's present budget reduction proposals
and the accompanying protest demonstrations against cuts in
social spending. The fact that the automobiles, parked near to
the area where the professor lived, all belonged to people
involved in the construction industry seems to have been a
coincidence, according to police.