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The USA and China

by Lyndon H. LaRouche, Jr.

Los Angeles, November 24, 2007


These remarks were presented by American economist, statesman and political leader Lyndon H. LaRouche, Jr , and translated into Chinese, for a conference entitled, "Forum on the U.S.-China Relationship and the Peaceful Reunification of China." The event, sponsored by the Institute of Sino Strategic Studies (ISSS), took place in Los Angeles on Saturday, November 24, and was preceeded by a press conference also addressed by Mr. LaRouche. The transcript of the question and answer session follows the speech, as well as transcripts of the press conference and a speech given one week earlier.

Mrs. Helga Zepp LaRouche's presentation to the conference was entitled "China's Role in the New Just World Economic Order"..

Mr. LaRouche was introduced by Frank Chan, member of the ISSS.

Frank Chan: We're so fortunate to have Mr. Lyndon LaRouche to talk to us today. Mr. LaRouche is a well-known—should I say, just about everything: He's a historian, he's a philosopher, he's an economist, and he's a scientist. He's a political activist. And above all, he's a great figure.

I met Mr. LaRouche five years ago at a similar conference in Whittier, California. His talk made me think for a long time. And when I learned that Lyn was coming to L.A. again, I went on the website to try to get more about it. There's so many articles about Lyndon, but the common denominator is, just like what I just said: He's all these things. It just seems he has succeeded in just about every endeavor he has undertaken—except that he didn't win the Presidency. Had he been successful in that respect, I know, we would have all lived in a different world today.

Without further ado, may I give you Mr. Lyndon LaRouche.

Mr. LaRouche: As I reported in an international webcast, broadcast from Washington, D.C. on July 25th this year, the present world monetary-financial system has entered the most deadly crisis of recent centuries. At that time, I emphasized two things about that forecast: that the end of the present world monetary-financial system were inevitable, unless that system were replaced by a new world system during a relatively brief, remaining time available.

Since that time, evidence bearing on all relevant leading developments from around the world, has confirmed the essential accuracy of my July 25th forecast on all relevant points. Since that time, nothing visible has been actually been done by any government to change the present world system in ways which would tend to solve this crisis. For example, every action taken, since that date, by the U.S. Federal government and the U.S. Federal Reserve System, has been an intrinsically tragic mistake. So far, every reaction of the governments of the U.S.A., and of western and central Europe, in particular, to deal with their crisis, has been worse than a failure. The crisis has an inherently hyperinflationary form which should remind us of developments like those of 1923 Weimar Germany, but, this time, on a world scale.

However, we must not ignore the crucially relevant fact, that any monetary-financial system, when considered by itself, is, essentially, only the equivalent of a "paper system." Fortunately, monetary-financial systems can be replaced. In the long term, it is the choice of the ruling form of social system on which the design of the physical economy is based, which is essential.

When we take into account the knowledge which we have available to us today, the following rule applies: whenever a powerful combination of national governments can arrive at a suitable agreement to change a failed financial-monetary system, a solution for any modern financial crisis can be found.

Therefore, my leading point in this report today, is that: Specifically, were the government of the U.S.A. to propose cooperation on a suitable reform, to an initial sponsoring group made up of the governments of the U.S.A., Russia, China, and India, it would be possible to bring the present international crisis under control, and, therefore, to rally a majority of the world's nations to join in measures which would stabilize the world system, and provide the foundation for a general economic recovery.

The last general recovery of the economy of the U.S.A. and western and central Europe, was initiated within the United States under President Franklin Roosevelt. The death of President Roosevelt was a great loss to humanity; but, despite his death, although the policy-changes made under his successor were, generally, a big mistake, the U.S.A. economy continued to prosper under the continued benefit of the then deceased President Roosevelt's policies until the assassination of President John F. Kennedy on November 22, 1963 (despite the bad policies introduced under President Truman).

The effects of the 1964 U.S. entry into the long war in Indo-China, like the more recent, very foolish wars which were launched by the Tony Blair and George W. Bush governments of the United Kingdom and the U.S.A., have led, successively, into the wrecking of the international monetary system in August 1971, and a general physical-economic decline in the economies of Europe and the Americas. This decline over, approximately, the 1968-2007 interval, has led into the consistently worsening physical-economic situation in those nations up to the present time.

The decline in those economies of Europe and the Americas, has had many contributing causes, but it was chiefly the result of the introduction, beginning 1971-1972, of a presently continuing, ruinous, pro-Malthusian type of global floating-exchange-rate monetary system. Despite some important trends for improvements in some leading national economies in Asia, the per-capita level of net physical-economic strength in the world as a whole has collapsed.

Thus, despite the improvements for a significant portion of the total economy in some leading nations of Asia, the deficit in development for the largest fraction of the populations is critical, at the same time that the productive powers of labor in western and central Europe, and in North America, continue to collapse catastrophically. Therefore, the needed development in even progressive economies in Asia, requires a mobilization of the physical capital and technology needed to raise the level of basic economic infrastructure and physical productivity throughout Asia and Africa, and also in the dangerously decadent, present form of the national economies of western and central Europe and of the Americas.

The most crucial among the urgently required actions to be taken jointly a group of nations led by the U.S.A., Russia, China, and India, are the following.

  1. The present world monetary-financial system must be placed in a prevalent, juridical status of reorganization in bankruptcy.

    This means that: As provided by the U.S.A.'s Federal Constitution, all central banking heretofore independent of sovereign governments, are placed under the sovereign powers of the relevant constitutional government.

    This means that: The government, through an institution equivalent in authority to the constitutional design for a Federal Treasury Department elaborated by U.S. Treasury Secretary Alexander Hamilton, will assure that: under rules for reorganization in bankruptcy, those payments authorized either specifically or categorically by the Federal authority will be treated in a normal fashion, as prior to placing the old monetary-financial system into receivership, but subject to supervision in the matter of regulating the retirement of outstanding capital-financial obligations.

    The included objective of these reforms of a system in bankruptcy, is to maintain, and to elevate the level of existing essential levels of employment, payment of ordinary pensions, and so forth, and production of essential goods and services, this with a view to accelerating rates of growth of net physical output, per-capita, and per-square-kilometer productivity of the economy.
  2. The physical-economic recovery and net growth of these economies, per capita and per square kilometer of total territory, requires an emphasis on the application of physical improvements in basic economic infrastructure, and the use of capital-intensive investments in basic economic infrastructure as the physical-economic driver for the other forms of production in the economy.
  3. The success of such intentions by governments, and others, demands a fixed-exchange-rate system not much unlike the design for the Bretton Woods fixed-exchange-rate system under President Franklin Roosevelt.

In other words, the needed reforms must be premised on the equivalent of a pervasive science-driver policy for the economies and territories as a whole.

Science and Raw Materials

The possibility of success for such required programs, depends to a very large degree on two global considerations, considerations which bear on each part of the world, and the world's necessary development viewed as a whole. 1) The first, is development and refinement of raw materials supplies. 2) The second is science as defined in terms of fundamental, universal physical principles. The two are functionally inseparable: there can not be sustained development of needed raw materials supplies without emphasis in fundamental physical-scientific progress measurable in terms of characteristic energy-flux density of modes of production.

The realization of those crucial objectives demands a clearly defined shift from what has been, hitherto, the strategic advantage of maritime powers over the quality of power of continental interiors. For most of a period reaching as far back into the times prior to the last glaciation in the northern regions of the northern hemisphere, ocean-going and related development of maritime power has been economically and strategically at a great advantage over the economies of inland habitations. This began to be changed with the so-called "geopolitical" implications of the appearance of the transcontinental railways of the U.S.A. Since that time, the related clash of maritime powers, such as those of the British Empire, with the nations and peoples of continental Eurasia and the U.S.A. had been dominated, strategically, by the challenge to this domination, which had been represented the by victory of President Abraham's U.S.A. That victory had been the root of the reaction against the U.S. success, a reaction reflected as Prince of Wales Edward Albert's launching of the 1895-1945 war of Japan against China, and by those related imperialist wars of the 1905-1945 interval, which illustrate the challenge which continues in either similar or relevant other expressions still today.

As in the case of China, the elevation of the conditions of life of the entire population of China (and, also, relevant other nations), demands a scientifically very advanced approach to development of raw materials supplies in presently poorly developed northern Eurasian territories. Improvements of management of water supplies throughout Eurasia, extended and qualitatively improved forms of global (e.g., transcontinental/intercontinental) transport systems, and "crash program" qualities of emphasis of both power supplies and production technologies based upon nuclear-fission and thermonuclear-fusion modalities, are now indispensable.

This urgently needed transformation of policies within the Eurasian territories and beyond, is beyond the present resources of Asian nations by themselves. Western and central Europe, for example, must be mobilized to earn their livelihoods by producing an immense volume of physical products of very advanced technologies as supplements needed for the appetites of the densely populated regions of Asia.

For example, the potential for such developments is illustrated by the present implications of the reopening of the rail-systems leading from Korea as a whole, into China and Russia. The implicit common physical-economic interest of Japan, Korea, China, and Russia (among others) in this opening up of systems in North and East Asia, are to be regarded as one of the presently great opportunities for the benefit of humanity.

The Obstacle to Sanity

Today, the world as a whole is menaced by a kind of threat to the continued existence of civilization, which is to be remembered from what became known as the "New Dark Age" of Europe's mid-Fourteenth Century. Then, as in places such as Southwest Asia now, civilization is destroying itself through the predatory actions of a reigning social class of predatory financiers, financiers, like those of the Lombard bankers of the Fourteenth Century, who used the financial profits taken from the financing of wars, as in Southwest Asia now, as a mode of financier life.

These predatory descendants of the Venetian financier tradition of Europe's so-called "Middle Ages," have created vast amounts of accumulated purely fictitious financial gains from predatory speculation. These accumulations have reached levels at which the entire financial bubble created in this mode is now collapsing in a way which mimics the experience of Weimar Germany during the latter half of 1923.

These financier interests, are not merely predatory, but have entrenched themselves as a powerful, controlling interest over the governments and leading political parties of leading nations. As a result, there is presently, an existential clash of the appetites of that class of predatory financier interest with the most vital interests of not only the majority of the population within nations, such as the U.S.A., but the very continued existence of anything resembling a reasonable order throughout our planet.

That medieval legacy of predatory power of usury has gained such power that it can not be defeated except through a concert of clearly defined, mutual self-interest among a combination of powerful nation-states.

That is the common interest which we in the U.S.A. and China, share at this juncture. That is the crucial importance of those within the U.S.A. who typify that common interest of the people of the U.S.A. and Asia. It is our awareness of this common interest, which is therefore a crucial factor in world history at this juncture.


Dialogue with LaRouche After His Presentation
on U.S.-China Relations And China Reunification

Los Angeles, November 24, 2007

Here is the dialogue with Lyndon LaRouche, following his keynote "The United States and China".

Moderator: Do you mind answering some questions?
Lyndon LaRouche: Oh sure.

Moderator: Are there any questions?

Q: ... I admire Lyndon LaRouche very much, and I have admired him for a long time. Now I have question concerning, from the point of U.S.-China economical relation evolving, we know in the United States there are so many, many [inaudible], many parts are made in China, through their hard labor, and leading to damages of the environment and the character of wealth. United States' corporation at the upper level are profit so much of this process. And this process help United States [inaudible] situation so much.

My question is: [inaudible] answer that as specifically as possible, is, is there any force in the world—[inaudible], government, among the people, governors—is there any force in the world can stop this process?

Lyndon LaRouche: The point is, this—yes, this is something I've concentrated on a great deal. You have in China, you have a mass of dollar obligations, which are held by China. These dollar obligations are important to the people of China, for investment in infrastructure. People talk about environmentalism: This is nonsense talk. Yes, if you do not develop infrastructure, you have an environmental problem. If you do not develop water systems, if you do not develop improved systems against contamination, to clean the air, to clean the water: If you do not do these things, you will have a problem! Therefore, the capital for transportation systems, for water systems, for power systems, and so forth, is essential to the people of China, without which the interior areas of China can not be developed, and the coastal areas can not be cleaned up of this smog. Hmm? Therefore, it's important that China have the use of its dollar holdings, to purchase assistance, in terms of capital goods, for these missions. If the dollar collapses in value, and the Chinese currency collapses as a result, then the Chinese people are cheated of their possibility of a good future.

Therefore, the solution is, is to take the advantage that the United States government is going to become terrified in the coming weeks. Because the U.S. dollar and the U.S. economy is now in the process disintegrating! And that will become apparent to everybody in a short period of time. The great asset that the United States has, is China: Because China has become the leading trading partner for the United States, and the ability to maintain the economy of China, is to get the economy of the United States to fix its value, and to get back to increasing its exports into China!

Photo Credit: EIRNS, William Salisbury

A stabilized relationship on this basis, between China and the United States, would change the world! Every part of the world would have to cooperate. They would have no choice. Because the whole world is bankrupt, not just the United States, the entire world system is bankrupt. Money, today, is not worth anything! You think it's worth something, but it's not—you'll find out tomorrow, it's not worth anything. The collapse of the housing crisis, the collapse of the banks—every bank of the United States, major bank, is bankrupt—hopelessly so—not just Citibank. They're all bankrupt! The U.S. is bankrupt! The Federal Reserve System is bankrupt!

The U.S. dollar is fictitious, there's no backing for it. We've been printing dollar obligations all over the world, and there's nothing to substantiate it. This has been a criminal insanity.

So therefore, what do you do?

Well, very simply: The government of China and United States, assuming the United States government is going to be increasingly terrified, every person in the Senate who voted against China, is in trouble right now, politically, when they come to back to office, because the U.S. economy is collapsing: Therefore, the solution is, if the United States and China negotiate a treaty agreement, to fix the value of yuan and the dollar, now, as a fixed-exchange-rate system, every leading economy in the world will have to join. If we go to a fixed-exchange-rate system, shut down all so-called central banking systems, because they're all bankrupt—the British are bankrupt, hopelessly bankrupt. The Bank of England is bankrupt, the whole system is bankrupt! The Queen's personal bank, Coutts, and the Bank of Scotland are bankrupt. Every country in western Europe is bankrupt, hopelessly so.

So they have no choice: The world is bankrupt in financial terms. The only thing we can do, is get agreements among governments, to return to a fixed-exchange-rate system of the type of that Roosevelt created during the end of the 1940s.

Then we say, we freeze everything. We have national banking systems in every country, because you have bankrupt systems—you can not have the money running free, you have to have regulated systems: national banking systems. And you negotiate long-term treaty agreements, of a 25- to 50-year duration, as packages among countries. And that way, we can get out of it.

We are going to wipe out many claims to dollars. We're going to wipe them from the books, or they'll wipe themselves from the books. We will simply say, "We're going to pay the essentials, and the other debts are going to be frozen, until we investigate them." We're going to have an operating economy.

But the key thing here, is the interdependency of China on the United States, and the United States on China, is such, that the Chinese economy would suffer, internally, from a lack of development if these dollars, if these claims were devalued. The United States would collapse without China as a market. Therefore, these two nations need each other. They are prisoners locked as in a marriage that can not be broken. And they have to legalize the marriage.

Q: I have a very crucial question to ask. My question is how do you promote, most emphatically, how do you promote and convince the government or either any parties to adopt to your idea, your philosophy, and your perspective on that strategy? Or the people of the United States?

Lyndon LaRouche: Well, the people in the United States are suffering. They're suffering—the people of the United States have a 10% popularity for the present Democratic Party leadership. The people of the United States have contempt for the Congress, where they did not have contempt last November, a year ago. The people of the United States do not like what the Congress is failing to do right now, with the housing crisis. And the housing crisis is not only a housing crisis—that's a lie. It's a banking crisis: The institutions of government and every bank are in crisis. The people of the United States have interests, such as housing, such jobs, such as health-care, things which they're now losing! The people of the United States are ready to revolt—maybe not tomorrow, but two days from now, or three days from now.

Therefore, you go to the Congress. Now, I have many friends in the Congress—they're cowardly friends, but they're friends. And in the institutions of government, in the professionals in government, you have a better quality than you do, actually in the elected officials, in many of them: They understand these kinds of problems. You have to break the will—.

Let me speak very frankly: You have, out here, you have a predator who controls the Speaker of the House, is controlled by a fascist banker, Felix Rohatyn. Who also control Senator Feinstein from out here, which is what many of the politics in California suffer from. And good Democrats are afraid to act politically, because of the control exerted by these forces, which are actually fascist forces, like Felix Rohatyn, the man who helped put Pinochet in power in Chile! He was part of the administration. And George Shultz, who is no better, was also part of it.

So the question is, as I said, here today: You have a powerful financier interest, which is a predatory financier interest, which is fascist, in point of fact. Just as fascist as Hitler. They don't yet have the dictatorship Hitler had, but they have the same direction of thinking.

The power lies with the people. The problem is, that the lower 80% of family-income brackets of the people of the United States have been for over two, three decades, they've been shut off from real access to their government, as their government. Now, they're losing their housing, they're losing their employment, they're losing everything; they're losing their health-care, they're losing their pensions. They want an answer! We can provide answers, and I find that our going directly to the people on the state level, and the county level, the county politicians, the elected ones, the state officials—you get a response there, you don't get in the Congress now, which is controlled by—the Senate and the House are totally controlled under the predatory enemies. So therefore, it's a matter of power: The system is collapsing, the leading power in the world that controls the world is losing power. Those in powerful positions in elected office, are losing power, especially at the Federal level.

So therefore, if we mobilize the people at the base, that is, on the state level or the county level, find officials who are honest and who are responsive, we can get a change. We're on the verge of the greatest change in modern history, either for the worst or for the better. And what we do in organizing the base of the population is going to determine that.

If we get cooperation, in spirit, between the United States and China, among the people of the United States and China, the people of the United States and Russia, the people of the United States and India, and so forth, then we will find that we have power, in a time of crisis.

But this is crisis politics. And that's the only answer to your question: We're in crisis politics. Are we prepared in an understanding way, as to what we must do, practically, in these circumstances. We can win. If we don't win, we're not going to have much of a planet.

Q: You guys consider themselves to be a democratic country, and they believe themselves to be a responsible member of the international family. What do you think, Mr. LaRouche, about this Iraq and Afghanistan war, where the U.S. spends billions and billions in dollars, only those, people like Cheney benefitted from such a war? What do you think? That's number 1.

Number 2, about the environmental situation. U.S. is the largest CO2 producer in the world. And it's actually on an increase, the CO2 consumption [sic], and what do you think in that respect?

Lyndon LaRouche: Well, let's take the second one first, because the first one has more substance to it.

The idea, the environmental rage associated with Al Gore, the former Vice President of the United States, spread among the people of the United States today, is a fraud. It's based on the shrinkage of the number of people with scientific qualifications in the leading population.

My generation, as you know, is the generation—I was born in 1922—we had some years ago, we had a science called the Fusion Energy Foundation. It was one of the leading scientific institutions in the United States, and was influential internationally. Then, we find, as that generation, my generation has died out, the younger generation, the generation that is now in power in Congress, between the ages of about 50 and 65 years of age, are scientifically incompetent and inert. And they appeal to a similar stratum in their own age-group in the population, which is similarly anti-scientific inert. These are the 68ers, and they have a 68er ideology, which is against science, and which is against progress, it's against agriculture, it's against industry, it's against blue collar. And this is part of our acute problem.

Now, there is no scientific competence behind what Al Gore says: It's a fraud. His famous address, television address, it contains an absolute scientific fraud. This is nothing but Malthusianism! It's the same kind of thing, of reduction of population through starvation and similar types. This is a complete fraud: This is the enemy of civilization. And I think Bill Clinton, as President, has recognized by now, that Al Gore was no friend of his, as President. He was a nuisance; he's a right-wing fascist, and he should be exposed as that. He eats too much, among other things. Maybe we would have less problems!

But the thing on the actuality of this: Most of the heat in the entire Solar System comes from only one source, the Sun. The idea that carbon has something to do with heating is nonsense! If you take all—cut down the carbon, what you'll do, is you're going to increase the heat! By converting to methods which use biological materials instead of other kinds of materials for power. Because if you take a beam of sunlight, and you inject it into agriculture, or the forests, by the magic of chlorophyll, you transform solar radiation into viable, living biomass. This transformation by chlorophyll, lowers the temperature of the planet, through this growth.

Whereas if you allow this sunlight to just float around there, or use these methods that he talks about, the environmentalists talk about, you will actually raise the temperature, by having less development.

So what we need, is a high-technology.

Now, back to the question of the war. The war policy is related. The war policies come largely from Britain, because the United States under the present President is simply controlled by largely international British financier interests. And the problem is, as has often been the case in our past history, that the United States has been controlled from the top by alien interests from outside the country, usually associated with the dirty side of finance—as is the case, in this case.

The policy we're dealing with, is that for a long time, there's been a policy called the "Revolution in Military Affairs." This was denounced by President Eisenhower, in his outgoing speech, as President, and it came from a certain section of what he called "the military-industrial complex." The idea was to get rid of regular armies, regular military forces of the United States, and introduce privately funded warfare, and private wars, of the type like the British East India Company used to run, in the world of the 19th century, and still runs today.

The policy behind these wars, in Southeast Asia, and more recently in Southwest Asia all come from London. Dick Cheney, for example, his career was made by the British interests which are behind Tony Blair, the Prime Minister. We got into a war in the 1960s, in Vietnam, it was fraud. It was voted by a fraud, under the terror conditions, arising out of the assassination of President Kennedy. The war in Indo-China was that.

The subsequent wars we've gone into, are all the same thing. This war was started by fraud, it was initiated by the British. I was involved personally in fighting against this thing; I was personally victimized on this thing. This came from London, and Cheney and his wife are instruments of London. And also there are other people in the United States, like Rohatyn and like George Shultz, and so forth, who are essentially more British than they are American.

And you know what the President is—he's a piece of waste material, politically. He has no control over his own government. He's an idiot, he's a mental case, and he was put in there because he was a mental case, that would enable other people to control him.

So you're right, this is evil. We have to stop it. It has to be stopped. We can stop it. And the way to stop it is very simple: If we build, in the context of what I already said: If we build cooperation among the United States, Russia, China, and India, we have a combination of power, which would be the most powerful combination of power on this planet. If those powers agree, on a common interest, it will be realized. The problem is, these nations are divided against each other, on one issue or another. If we can unite these nations, and others, around a combination of power which can change world policy, we can solve that problem.

In the case of the environment, the solution is: Go to high technology. More nuclear power, more high tech, more promotion of greening of the desert. All of these things, which will control the climate quite nicely. And scientists know how to do it. Unfortunately, we have people in government who are of an age-group that don't know what science is any more.

Moderator: Thank you very much.

Lyndon LaRouche: Thank you.

LaRouche Press Conference on
U.S.-China Relations and China Reunification

Los Angeles, November 23, 2007

Lyndon LaRouche gave the following press conference in Los Angeles on November 23, prior to the November 24 proceedings of the "Forum on U.S.-China Relationship and Peaceful Reunification of China," sponsored by the Institute for Sino Strategic Studies. Twelve press attended, and as of November 24, at least five had run coverage.

Mr. LaRouche spoke after an introduction in Chinese, and his remarks and responses in the brief open discussion were translated into Chinese.

Moderator: I have the great pleasure to introduce Mr. Lyndon LaRouche!

Lyndon Larouche: Thank you. Obviously I shall speak English.

But, in short, as you have noticed, the dollar took another plunge in international value today, and this process will continue. This collapse of the dollar is not good for China, it is not good for the United States. China needs to invest in capital improvements, over many generations to come, in order to achieve for the Chinese people, for a time to come, the necessary improvement in the standard of living and conditions of life. Much of this will depend upon China's investment in U.S. dollars, either to buy U.S. goods, which is good for the U.S. economy, or to buy goods from other countries, using U.S. dollars to buy those goods. This means infrastructure investment that would benefit the Chinese people as a whole. It is also in our national interest to defend our dollar.

So this creates a great bond of common interest between China and the United States. And it is extremely important, that we reverse some very silly antipathy toward China from a number of our members in Congress here in the United States and elsewhere. And those of us who are influential, in one degree or another in our own respective countries, should work to bring about that agreement.

I should say, that, also, that the crisis of the U.S. dollar can be solved. It will require important, sweeping, deep changes in current U.S. policy, but these measures are possible: They are feasible, they will work.

And this brings up another great principle of statecraft: In U.S. time, European time, from 1492 to 1648, all of Europe was torn apart by religious warfare. A great figure, Cardinal Mazarin of France, [was able] to bring about an agreement among the people who had been killing each other, this was called the "Peace of Westphalia." There was one great principle upon which this treaty depended: Each party must work for the benefit of the other. With the same effort, would we look for the complete unification of China. We in the United States and China, who understand this problem, must follow in the footsteps of the Treaty of Westphalia. This will bring peace across the Pacific Ocean, and benefit for us both, all, for generations to come. And those of us who are more conscious of these matters must take the leadership in initiating that proposal toward peace and progress between our peoples.

Thank you.


Question: I have one question for Professor LaRouche. You mentioned in your great comment earlier, that each party should try to improve the other side's well-being, and so that's how in essence you'll be able to reach peace and prosperity for both sides.

Lyndon LaRouche: Yes.

Q: But, as we know, the Strait relationship depends much on the U.S. policies. After the 17th Chinese Party Congress, President Hu pointed out that the peace agreement voted, and also KMT Chairman Ma Ying-jeou also brought up this idea, a so-called modus vivendi, which both have a lot of resentments. My question to you is: What U.S. can do to facilitate, since both sides both reach out, showing a good faith, after trying to improve the current secure relationship on both sides? Or even, the candidate from the DDP that also vowed to open up the trade, or the communication, direct flights. So, my question: What U.S. can do, to facilitate these both sides? We know both sides need to do more, but my question is, what U.S. can to facilitate both sides, more to reach accord for the peace agreements. Thank you.

Q: My name is [Julian Lee] from San Francisco. I'm from China Focus of Unification, Northern California. [Question is translated.]

Lyndon LaRouche: Good work, okay.

Diplomacy is a very complicated business. And it springs from inside the country and inside the wise old men of each country. The President of the United States today is not a wise old man. Therefore, in a case like this, you must use, as I do—you must use the occurrence of crisis, not as a problem, but as an opportunity.

A failure of a government—and the collapse of the U.S. dollar in value is the failure of the U.S. government; the Democratic Party in the Congress has 10% popularity with the American people—that's a crisis. We must use the failures of government, to induce government to change its ways when it errs from our national interest. It is the national interest of the United States as a nation, to have cooperation with China, and not on a negative basis, but on an affirmative basis.

Those of us who are human beings, who are human beings above all, think of other human beings and their needs. And I can think of the needs of people of China. I have some knowledge of the problems of the people of China, their well-being. For the future of our descendants, I wish the people of China to be happy people; I wish the United States' people to be happy people. Therefore, those things which spoil our relationship must be corrected. Sometimes it's someone like me, or people like me, who move in our own country, to try to change our country's mistaken policies to get to correct policies. That's the way it's done.

This is not a simple process. It's a complicated process. It's a dangerous process. You put your life on the line sometimes, when you do what I do. But you do it, because you do it: It's the right thing to do.

And your saying it, fine! It's true. We must do something about it. We should all do something about it.

Q: Okay! Fine, okay.

Q: I'd like to make a basic comment to your answer to Mr. Lee's question. In fact, I think the most obvious thing that U.S. can do, is to reexamine, or abolish the Taiwan Relations Act. Because that is the apparent domestic law that interferes with another country's internal business. And with that Taiwan Relations Act, U.S. is selling arms, against its promise in the Aug. 17th Communique, in which it promised the reduction of arms sales with Taiwan.

Last, because I remember in D.C., there was this conference, and Bonnie Glaser from Brookings Institution—she was saying, what U.S. was trying to do by keeping the status quo, is trying to bring peace across the Strait. I totally disagree with that argument. Because, by selling arms to Taiwan, and trying to balance the military strength of the cross-Strait, is creating a power balance. Power balance is not peace. It escalate the tension. So I really think, if there any ways our American friends, or American politicians can reexamine the Taiwan Relations Act?

Lyndon LaRouche: All right. I'll try to keep it as short as possible. It's an important question, and should be answered. I shall not answer it totally here, because it's a long story.

Moderator: Tomorrow we'll have the opportunity to discuss.

Lyndon LaRouche: Right. But, the point is, we are all aware, I think, here, that the United States stands on the verge of a new attack, this time on Iran. This is part of a policy which was cooked up, between largely the Vice President of the United States, Mr. Dick Cheney, and Tony Blair, the former Prime Minister of England. They played with people inside Taiwan, and inside the city of Tokyo, Japan, to set this policy into motion.

I understand the policy: It's extremely dangerous. It is a very serious threat. And one of the people, who in a sense tolerated it, was a good friend of mine, in a sense—Chuck Schumer, the Senator from New York State—who is a good person, but he's a political person, and he's in a position, and therefore he has supported some things, which from the standpoint of his morality, he should not have promoted.

The point is, it's a legitimate question. Your raising it is useful, because we have to raise the question: This is a threat. We achieved a miracle in the case of Korea, with the Six-Power agreement, on Korean reunification. It is not complete reunification, but it's a step forward. It opens the way for good things in Asia, among Russia, Japan—one faction in Japan—and the factions in Korea and in China. This is a very important development, and a contribution to the development of Asia.

We must work for these kinds of ends, and some of us have to put ourselves on the line, in danger, to try to make some changes in the kinds of horror-show that you just identified. It's evil. It should be denounced as evil. Its intention is obvious. There's no honesty to it. Yes, there are people in Taiwan, who are of certain faction, who are drawn into this thing. But this is evil, it's a danger to peace. It's a danger to us all, and we must stop it.

I think the only way to stop it is by inducing a change in the way the U.S. government functions, which means, getting rid of this administration, and getting the Democratic Party to be a Democratic Party again.


LaRouche to China Unification Summit:
A New Pacific Relationship Emerges

Rockville, Maryland

November 17, 2007

Lyndon LaRouche addressed "Global Summit for China's Peaceful Unification" held at the University of Maryland conference center in Rockville. Over 200 leaders from around the world participated. LaRouche was a featured speaker in the opening session, and the published title of his presentation was "A New Pacific Relationship Emerges." The conference took place November 16-18.

Lyndon LaRouche: Thank you. As you know, this is a time of great troubles in the world. The world financial-monetary system is in the process of disintegrating. And until and unless certain changes are made, that disintegration will continue, in a fairly short period. If we change our ways, which circumstances will force us to do if we wish to survive, there will be a great positive change in the relations of the world.

For all of what we know of civilization, civilizations are dominated by great imperial forces which have dominated the land area from the sea. There was a change which came with Abraham Lincoln's election and development, in the development of the transcontinental railroad system in the United States. This corresponded to a thrust from the United States to opening channels to countries in Asia, across the Pacific, and from opposing imperial forces in the Pacific.

Now, the time has come to bring that into realization. Recently, in Russia, there were meetings on the subject of a new railway system for the world, which involved an agreement to develop a tunnel from northern Siberia, across the Bering Straits, into North America. This tunnel would be a railway tunnel, which would implicitly link the entire world together, except for Australia, by railway systems.

These railway systems, which would be either railway or magnetic levitation, would now unite the land-masses, efficiently, for economic development internally. This coincides with a recent development, which many of us have wished for, in settlement between the relations between the two parts of Korea. Because the reunification of Korea, in functional terms, economic terms, means that the population will be changed there, and most key thing is a railway system. As most of you know, the railway system of Korea, before division, was like a yoke: It ran up from the south, and it divided in the area of about the division of Korea into two parts: One line went to China, one line went to Russia, of the same system.

Those lines are now being reunified, which means there will be a fundamental change. Because this will coincide with the development which is in progress now, supposed to be completed in a first phase by 2017, ten years from now: this tunnel. This tunnel will be connected with the railway systems, or magnetic levitation systems, throughout Eurasia, into North America, and down through Europe into Africa. What this means is, that as we know, we have about 1.4 billion people in China, and the development is not sufficient to meet the needs, yet. We need to open new routes for that development: This includes raw materials. There are abundant raw materials available in northern Asia, in Russia, and adjoining countries. This will require a great development, this will require railway systems. Therefore, we will be able to meet, by such means, by railway development, or magnetic levitation, we will be able to integrate the development of the internal parts of Asia, by this process. Because we will be able to bring together sufficient raw materials to support the kind of development process needed. We see this clearly there.

Now, the prospect now, is: That the relations with China and Japan have not been good, since about 1894, when the British started a war against China, which went on until 1945, off and on. But now, Japan is in a situation, where its vital interests demand that it cooperate with China, to offer them aid, to help with the economic development of Korea. This will go partly through Korea, and we know that Korea and the Japanese are not always friendly, but they have a common interest. And these countries are not always friendly to China, but they now have a vital common interest in cooperation. Russia has a vital interest in cooperation.

So therefore, we are bringing together now, hopefully, the leading nations of Asia, with some countries of Europe and beyond, to realize that their survival and benefit for the future depends upon cooperation, through economic development and through trade. And the key is the development of these new kinds of systems, which will link the entire world: You will be able to go by train, or by magnetic levitation, to any point in Europe, the Americas, and Africa by rail systems, high-speed rail systems. This is especially important for high-value products, for freight. You can move cheap products by sea, but its slow. But since the products are cheap and the bulk is large, you can move by sea. High-grade products, high-technology products, sophisticated products, must move faster. They must move by land-area: They move by high-speed freight systems, and people systems, and that's the kind of world we're entering.

So, if we are saying, those of us in all the world are going to unite around this kind of vision for the future, we can not have globalization. Because with globalization, you do not develop cultures. And the culture of people is old, and the roots of ideas in the culture are deeply rooted, in the history of the language, and in the history of the people. Therefore, national cultures are crucial. But the national cultures need not be divided by the cultures, they can be united by cooperation and projects of development.

And the time has come, now, to move in that direction. My concern is to take a government of the United States, which I don't think is worth much, right now, and to try to find in the coming election process, or the run-up to that and in the present crisis, to make people aware through the great crisis they face, in the United States and Europe and elsewhere, that they have to change: Not only do they have to change away from what they've been doing as mistakes, but they must change in the direction of things that will work, things that are solutions for the future.

Unfortunately, today most people in the United States and Europe have very short memories. They can't think much beyond five or ten years, very short term. We have to come to a time where they think in long terms: The development of this railway system, or the tunnel system, is over ten years, and it's already being started. It will mean a new railway system from the Trans-Siberian Railroad up to the area of the Bering Straits, which is an area through which there are many raw materials under the ground. It will therefore be an area of development, to develop those raw materials. These kinds of changes are on the way. But we have to think in terms of two or three generations ahead. We have to think ahead to the remainder of this century, the present century. Because, the development of families—it's 25 years to develop an adult these days, in modern culture; that's a generation. Most of the products we think of, involve a 50-year investment, the development of infrastructure and things like that. And the benefit we will reach for humanity will come a hundred years from now, four generations. And we must think in terms of long-term development of peoples, culture, and infrastructure over a hundred years to come. And we must have that kind of discussion among leaders and leading circles of nations, so that we can adopt a policy, a common understanding among different peoples of a common interest.

Thank you, very much.

Moderator: Thank you, Mr. LaRouche.


Related Pages:

China's Role in the New Just World Economic Order by Helga Zepp-LaRouche

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International Conferences

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