A CLASSICAL KGB DISINFORMATION CAMPAIGN WHO KILLED OLOF PALME?

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Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 SPECIAL REPORT A classical KGB disinformation campaign Who killed Olof Palme? October 1986 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 ME SPECIAL REPORT OCTOBER 1986 Executive Intelligence Review A classical KGB disinformation campaign Who killed Olof Palme? This EIR Special Report was written by William Engdahl, Goran Haglund, William Jones, and Paolo Serri. It incorporates the work of a team of EIR researchers from Western Europe and the United States. Copyright EIR Research, Inc. 1986. This report and its contents are for the clients of Executive Intelligence Review and are not for general distribution. Reproduction of all or part of the contents without explicit authorization of the publisher is prohibited. Publisher and responsible editor: Anno Hellenbroich, EIR Nachrichtenagentur GmbH, Dotzheimer Str. 166, D-6200 Wiesbaden, West Germany Phone (06121) 884-0 Executive Intelligence Review P.O. Box 17390 Washington, D.C. 20041-0390 Printed by Dinges+Frick, Wiesbaden, West Germany Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Contents Preface: Tracing the tracks of Palme's assassins ............. 7 Operation Edgar Allan Poe: Investigative hypotheses ........ 9 by Lyndon H. LaRouche, Jr. 1. The KGB twin brothers: Assassination and Disinformation 1. A classical Soviet desinformatzia campaign ............... 13 2. The Swedish police vendetta against the ELP ............. 37 3. Boris Pankin, To Ethnos, and Control Data .............. 42 1. What really happened: a chronology of events ............ 47 2. The disinformation campaign: how it unfolded ........... 58 3. Self-censorship as "psychological defense" ................ 67 Documentation: samples of press lies ...................... 69 1. The Northern Flank: key to Soviet military strategy ....... 72 2. The "Trust" and "Northern Route" Bolshevism ........... 86 Appendices I-IV ....................................... 100 EIR Special Report 5 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Preface by Swedish European Labor Party spokesman Michael Ericson: Tracing the tracks of Palme's assassins It is now over six months since the brutal shooting of Prime Minister Olof Palme. Swedish leaders have treated the whole affair with almost criminal negligence, despite widespread fear that the murder was just the beginning of a general destabilization of Western Europe - a fear underscored in the most frightening manner by the wave of terrorism now engulfing us. The documentation in this EIR Special Report of a Soviet disinformation cam- paign can play a key role in mobilizing the effort necessary to win this Soviet-sponsored irregular war against the West. After the news of the Palme murder hit the press, Lyndon H. LaRouche, Jr., Founder and Contributing Editor of Executive Intelligence Review magazine, launched "Operation Edgar Allan Poe!' LaRouche issued a memorandum of investigative hypotheses regarding the assassination of the Swedish prime minister [See page 9.1. LaRouche indicated a way to "trace the tracks" of those who decided to kill Palme, by observing their unavoidable attempts to cover them up. An international team of researchers in both Western Europe and the United States was established for this purpose. The wisdom of that step is clearly verified by the published report now in your hands. It is perhaps here in Sweden, where we are daily confronted with the fruitlessness of other attempts to resolve this murder, by institutions possessing much greater resources than the meagre means of the EIR, that this report will reap its greatest benefits. It is especially significant that this report will reach an international public. The fatal shot fired on Feb. 28 was no mere Swedish affair. That were impossible, given Scandinavia's strategic importance today. Already toward the end of World War II, Soviet leaders made great efforts to establish the "neutral Sweden" which we know today. For those acquainted with Scandinavian politics, it is not the Kremlin's political blackmail against smaller neighbors which stands out in this report. Perhaps it will be more shocking to discover, that nominally Western forces, financial and rentier interests, have maintained behind-the- scenes collaboration with their oligarchical counterparts in Russia, to undermine the nation-states of the West. Aside from the economic and political deals with Moscow, those Western forces also share a cultural af- finity with their Eastern friends in opposing the fundamental values of Western humanist culture. My party - the European Labor Party (ELP) - was created in Sweden in 1975, inspired by the economic and philosophical ideas of LaRouche. We have pursued a policy of full sovereignty for our nation, in concordance with other sovereign republics - refusing to submit to the role of a "satrapy" to an empire wishing to gobble up its neighbors. In that respect, Sweden has long had a tradition of being fiercely independent. That is the primary issue which has distinguished the ELP from the leadership of Palme's Social Democratic Party. Other political differences are subsumed by that underlying difference. That is why, as we were later to discover, the Soviet secret services began to target our activities in Sweden in the very beginning, when our influence was still small. EIR's precise reconstruction of the KGB assassination and disinforma- tion apparatus was aided by the fact, that during years past, our policies, coherent with the policies pursued internationally by LaRouche and his collaborators, had already provoked a series of enraged reactions by the Kremlin, as well as its agents and stooges in the West. This EIR report, by EIR Special Report 7 II Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 reconstructing the who, when, and why of these attacks, has indeed resulted in a manual-like description of the KGB modus operandi - a reconstruc- tion which might help to uncover the tracks of those responsible for the Palme murder. We have shown, that there is a different role for Sweden to play, than that of meekly complying with current Soviet demands. The campaigns which we have undertaken in recent years, apart from the importance of the issues themselves, have been a means of creating a sense of national identity on a deeper level, where Sweden once again can make a positive contribution to the progress of humanity. We campaigned for rapid development of nuclear energy - both in Sweden and for export - during the anti-nuclear hysteria which swept the country like a plague during the period of the 1980 nuclear referendum. The nuclear energy campaign showed how Sweden, with 80 percent of Europe's known uranium resources and its own nuclear industry, could help secure the energy requirements not only of Western Europe, but, more significantly, of a developing sector which must take the first giant steps out of the economic misery and destruction caused by the genocidal policies of supra-national financial institutions in the West. Our campaign against these very financial institutions and their lobby organizations - like the International Monetary Fund, the World Bank, and the Club of Rome - was significant in educating the Swedish people concerning the absolute immorality of policies which have condemned millions of people to die, in a genocide a hundred times worse than that perpetrated on mankind by Hitler. The Swedish counterparts to these financial institutions have been key in maintaining the oligarchical bridge between Russia and the West, as documented here. Our campaign to revive classical culture - against which sabotage operations in the aftermath of the Palme murder have reached barbarous levels - is reviving the basic concepts of Western humanism, after a long period of regression to the infantile psychotic level of an Ingmar Bergman or an August Strindberg. We have worked for reviving the spirit of the great humanist tradition, from Plato to St. Augustine, from the Italian Renaissance to the German classics and the 17th century period of Swedish king Gustavus Adolphus. Lastly, but perhaps of most immediate significance, we have conducted a campaign to bring Sweden into the Western Alliance. Through a much- publicized national tour in the summer of 1984, we proved that there are very concrete and accessible measures which would transform Sweden and Scandinavia from the weak link in the defense of Europe into a bastion of the Western world. In part, this campaign was picked up in 1985 by a grow- ing number of high-ranking officers, which became popularly known as the "officers' revolt" against the appeasement policy of the government. Our campaign for a strong northern defense, along with the campaign for a new Strategic Defense Initiative - as launched first by LaRouche in February 1982, and propagandized in a series of well-attended seminars in Stockholm and several other Western capitals - provoked violent attacks by the Soviet disinformation channels. The architects behind the disinformation campaign likely viewed Sweden as a weak flank in this mobilization against the growing Soviet threat. The Soviets undoubtedly thought that they could get away with laying the Palme murder at the doorstep of the ELP, as a first step in dismantling the LaRouche mobilization globally. The Swedish news media, being what they are, again followed the Soviet's lead on this matter. That campaign has already backfired. The opinion of the Swedish peo- ple is not reflected in the media lies. Whether or not the media believes its own lies is not the issue here, although they did not hide too well the origin of these lies. Their negligence has given the EIR staff an opportunity to lay bare the Soviet disinformation apparatus in a way which has never been done before. At the present critical juncture in European politics, this report serves a vital role in exposing a campaign which now threatens the very existence of our nations. 8 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Operation Edgar Allan Poe: Investigative hypotheses The following research memorandum, launching "Operation Edgar Allan Poe," was issued on March 4, 1986, by EIR Contributing Editor Lyndon H. LaRouche, Jr-- The international newsweekly, Executive Intelligence Review, hereby struc- tures its ongoing investigation, to the purpose of defining editorial judge- ment on both (a) the killing of the late Prime Minister of Sweden, Olof Palme, and (b) the indicative features of international coverage of the kill- ing, by news media, governmental agencies, and other relevant agencies. This investigation is herewith named "Operation Edgar Allan Poe!' That name is adopted for the practical purpose of identifying the methods and outlook to be employed in the inquiry: to emphasize our abhorrence of the contrary, more popular methods identified with the fictional Sherlock Holmes. The general investigative hypotheses to guide the inquiry at this stage, is based on efforts to arrange the full array of available evidence in such a manner as to narrow the investigation down to one among the following general and more particular choices of motives for, and character of the assassination. 1. The Killing was Motivated Either: 1.1 Simply to Kill Olof Palme; 1.2 Less to Kill Palme, than to produce the effect which the killing of Palme was intended to produce. 2.1 The Motivation Was of a Personal or Business-Interest Nature, or Some Combination of the Two; 2.11 Personal Revenge 2.12 Action In Defense of Some Personal Interest; 2.13 Revenge for Injury to Business Interests; 2.14 Action In Defense of Perceived Business Interest; 3. The Motivation Was Political, and was either one or a combination of the following: 3.1 Swedish National Matters; 3.11 Intra-Party Motives; 3.12 Non-Intraparty National Motives; 3.2 International Political Matters; 3.3 Strategic Matters As Such. For purposes of files-organization, each element of the foregoing listing is to be treated as a "Boolean" conception, overlapping or not-overlapping other elements of the array. The foregoing list is an array of alternative or overlapping elements con- sistent with the probable indications that the perpetrator operated in the mode of a professional killer. The most important clues to be considered, come from the area of news- media coverage of the killing and investigations. Two characteristics of such news-media coverage must receive special emphasis in the inquiry: 4. Efforts to divert suspicion to or away from certain classes of suspects. 5. Efforts to exploit the killing to generate a politically or strategically significant reaction. It need only be mentioned, that the Soviet disinformation channels are, so far, most active in attempting to generate variously politically or even strategically significant reactions to the killing. The pivotal question, is whether political exploitation of the killing is merely opportunistic, or whether the exploitation reflects in one sense or another the motivation for the killing. LIR Special Report 9 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Moscow's charges against the CIA So far, the most probable hypotheses are: A. That Palme had been actually or plausibly instrumental in some recent action or action-in-preparation, which prompted some agency to re- quire the immediate killing of Palme as either revenge or prevention. B. That Palme was killed by the Soviets or some related agency, because the political value of Palme's bloody shirt was esteemed to greatly outweigh the usefulness of the living Palme. This would coincide with the use of either elements of international terrorism or Soviet-steered ultra-right-wing groups as accessories to the action. The special difficulty, is that the public and covert Olof Palme represent somewhat distinct images. That is to emphasize the query: Did the motive for ordering Palme's killing bear upon the authors' perception of Palme's public or covert role. Obvious circumstances local to Sweden, include: 1. The Gyllenhammar affair, and effects bearing upon the fall of the stock-exchange values. 2. Increased threats to Sweden's national security. 3. Widespread expressions to the effect that Palme's actions had betrayed allies and supporters. The distinctive political circumstance, was that Palme's standing was at a lower ebb than during his earlier electoral defeat. The best way to eliminate Palme politically, was to keep him alive as a target of growing hostility from all national sectors, including much of his former electoral base. The effect of his murder, is to revitalize "Palme the martyr,' and thus strengthen the perpetuation of the policies with which Palme was associated. The fact that Palme's killing has features of professional killing, is strong indication of authorship by some agency qualified to pre-calculate the political sequelae of such a murder. An agency which had the means to deploy a professional killing, would have, "instinctively;" reckoned with the fact that killing the politically discredited Palme would elevate his standing to that of a "matryr:' This suggests either an agency which intended to pro- duce such political sequelae, or which was so blinded by desire to kill Palme that they were prepared to risk the political after-effects as part of the price for immediately conducting the killing. Who benefits politically and strategically? Most narrowly, Moscow benefits. More broadly, the benefit accrues to the modern outgrowth of the 1920s "Trust;" the political "joint-stock company" interests of the contem- porary form of the "bi-polar arrangements" between certain wealthy Western interests and Moscow, including the so-called left wing of the Socialist International. This benefit was pre-calculable; the success of the killing, at first try, in an operation with the characteristics of a professional assassination, strongly indicates an agency which either intended to pro- duce such a pre-calculated effect, or which was so powerfully motivated by more narrow considerations, as to disregard such pre-calculable effect. The Moscow allegation, that the CIA was involved in the killing of Palme, is worse than absurd insofar as this charge is understood to mean the U.S. Central Intelligence Agency. However, there are certain powerful, private agencies, which public opinion might confuse with the CIA, which are fully capable of complicity in such a killing. I shall not name any of these agen- cies (for obvious reasons of discretion), although I have several such im- mediately in mind. I shall merely indicate the characteristic features of the relevant problem, so that investigators may bear this line of inquiry in mind as they weigh the evidence. The killing of Palme occurs in the context of two global sets of events: 1) The global banking-collapse crisis now in progress, and 2) A cascade of extraordinary unleashings of coup d'etats and kindred events in the setting of the period from the Geneva Reagan-Gorbachev Summit to the present Soviet 27th Congress. A powerful faction of bankers in the West, which has reached a global, "bi-polar" agreement, through "back channels;" with Moscow, is acting to pull the United EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 States out of the Strategic Defense Initiative, to pull the U.S. strategic influence, rapidly, out of Europe, Africa, and Asia, and back to the Americas. This same faction, is faced, simultaneously, with an im- minently threatened general collapse of the U.S. banking-system, and the chain-reactions this collapse portends for most of the world. This "bankers' faction" in the West, is an integral part of the present-day equivalent of the 1920s Soviet "Trust" organization, the continuing "Trust"--linked organization within which Olof Palme's political activities have been situated. The killing of Palme by such circles, or by aid of such circles, would be, therefore, an "inside job!' This "bankers' faction" of the West, has built up a massive, privately operated, international intelligence capability, akin to the fictional "third force" of the famous James Bond movies. This capability has penetrated deep into the policy-making and operations capabilities of Western gov- vernments, and is able to orchestrate the policies and actions of such governments to suit its own purposes, in an increasing number of cases. It has an operational capability more or less equivalent to that formerly com- manded by the CIA. With aid of the Socialist International and other left-wing and left- liberal political forces, this "third force" (which could be named by names of organizations and key personalities) has gained great power over nations of the West and developing nations. Yet, at the point this "third force" is at the verge of realizing its political objectives within the West, the immi- nent collapse of the U.S. banking-system threatens to destroy much of that power. This powerful "third force" is currently operating with blind fanaticism and desperation, seeking to crush any force which resists it, or even threatens to resist it. The case of the destabilization of the Philippines, planned first under President Jimmy Carter, and set into motion beginning 1982, is an example. First, this "third force;" exerting great power on the U.S. and other govern- ments, toppled President Ferdinand Marcos, and is now moving to dump soon the new provisional President of the Philippines, Mrs. Corazon Aquino. At the same time, the same "third force" is moving to destabilize South Korea, completing another operation first set into motion under President Carter. This means, in short order, that the U.S. bases in the Philippines are lost, and the U.S. is out of the western Pacific and Southeast Asia strategically, altogether. The same forces are acting to destabilize Egypt, and to turncontrol of southern Africa over to Soviet naval, air and missile forces based in Angola and Mozambique. They are moving to a bloody destabilization of Panama, backing the professed Nazi, Arnulfo Arias Madrid, as the "democratizing" agency for the region of the Panama Canal. The list goes on, and is very long. It is to be said of this "third force;' this agency of the "bankers' faction;' that "whom the gods would destroy, they first make mad!' The political ideology of this nameable "third force;" is not exactly pro- Soviet. They are, after all, an asset of a variety of wealthy financier families joined, in common if also conflicting aims, with Moscow, in an arrange- ment for consolidating a "New Yalta" version of a "bi-polar" dictatorship over the planet. They work with Moscow on common interests, but also in conflict with Moscow on other matters. They are turning over Europe, Asia, and Africa, to Soviet strategic domination, while simultaneously ac- ting desperately to preserve their financial interests in both the Americas and parts of the world being abandoned to Moscow's strategic domination. It is my first-hand knowledge, from a large accumulation of isolated cases of such first-hand knowledge, that this "third force" is presently so hysterical that it appears to have lost its senses entirely. This is the one ma- jor force in the West which would have been capable of killing Palme with the view of using Palme's "martyrdom" to reestablish Socialist Interna- tional control over Sweden in particular. Or, this force would have readily killed Palme, if Palme were suspected of moving as part of a Socialist Inter- national effort to coopt the anti-IMF movement now rising in the develop- EIR Special Report 11 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 ing sector and parts of Europe as well. I have no indication that this "third force" was implicated in the killing, only that, on the basis of patterns of recent performance, they would be perfectly capable of such an hysterically insane act. The "third force" must be included among the list of general suspects, for an additional reason. Under the "back-channel" arrangements between Moscow and the Western, bankers' element of the present-day "Trust;' the Soviets leave problems in the Western sector of "bi-polarity" to their backchannel partners of the West, while the Western partners leave matters in areas of Soviet strategic responsibility to Moscow. So, Moscow left the destabilization of the Philippines and South Korea, to the "bankers' fac- tion." So, most of the assassination-plots, harassment, and defamation operations against me ordered by the Soviets, are run through the resources of Western-based, or Sharon-linked private intelligence capabilities. In cer- tain matters of agreement within the "Trust" arrangement, Moscow would say to the bankers' faction: "That's your responsibility; take care of it'.' In other matters, the Western partners would make the same sort of observa- tion to Moscow, as in the case of the projected political elimination of Passer Arafat. If a "Trust"--centered killing of Palme were the case, Palme lies between the cracks of Moscow's and bankers' faction responsibility. Either could be responsible for the act, it could have been conducted jointly, and would almost certainly have been done with a "need to know" degree of knowledge of both. I can not draw the conclusion that it was the "Trust" which killed Palme; there are other possibilities not to be excluded. One can only say, that whether the "Trust" was directly involved or not, the sequelae of the killing will involve both principal components of the "Trust;" and, if it was not the "Trust" which authored the killing, this fact itself would be a most remarkable feature of the operation. 12 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 1. The KGB twin brothers: Assassination and Disinformation A classical Soviet desinformatzia campaign Georgii Arbalov issued Moscow's immediate, pre-calculated response to the murder of Palme. The KGB "Desinformatzia" department A few hours after Olof Palme was assassinated, the Executive Intelligence Review identified the initial elements of what was soon to develop into one of the most massive deployments of a Soviet intelligence disinformation campaign ever seen. EIR daily monitoring of Soviet moves identified an unusual rashness in the Soviet propaganda response to the murder of the Swedish prime minister. The first declaration, issued by the chief of the U.S.-Canada In- stitute, Soviet Central Committee member Georgii Arbatov, on March 1, just a few hours after the murder, reflected - by Soviet standards - an extraordinary promptness in the Kremlin leadership and its underlings in pursuing a clear strategy of operations. As the Stockholm police investigation unfolded, and the surge of press coverage of the event in both Swedish and international media began to take shape, the EIR investigative work gridded the activities of known Soviet disinformation specialists. These were coordinated with Western net- works previously identified as working for, or manipulated by, the Soviet intelligence service KGB. It was in this period that the names of two high- level Soviet officials surfaced increasingly: Ambassador to Sweden, His Ex- cellency, Boris Pankin, and Director General Sergei Losev of the Soviet state news agency TASS. Immediately after the March 18 world-wide media barrage of slanders, lies and distortions against the Swedish European Labor Party (ELP) and EIR founder Lyndon H. LaRouche, Jr., an EIR representative had a con- fidential exchange of views with a senior French intelligence officer on the matter. Briefed on the EIR's investigative discoveries, the officer could not but underline the significance of both Pankin and Losev in the overall KGB disinformation machine. The officer stated that the Soviet disinformation campaign against the Swedish ELP and LaRouche was so typical that it could be considered a "manual-like application of KGB disinformation techniques." The French specialist added that the information in the EIR's possession was enough material for "writing a couple of spy thrillers" on the matter. What will be presented here is a reconstruction of the Soviet KGB disin- formation machine and how its operations began to unfold prior to the Palme murder, reaching a peak during the subsequent murder in- vestigation. According to Soviet intelligence defectors, the KGB's Department D (Disin- formation) was created, or rather, restructured, in January 1959 by the then KGB Chief Aleksandr Shelepin. This occurred as a redefinition of Russian strategy towards the West, following the death of Josef Stalin. The new Department D was to coordinate with the Central Committee of the Soviet Communist Party, the Committee of Information (the Disinformation EIR Special Report 13 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Department) in the Soviet military intelligence GRU, and the two "active measures" departments of the KGB itself - one responsible for in- telligence networks and the other for counterintelligence. The Central Committee of the Communist Party defines the re- quirements and objectives, and maintains liaison functions through the Ad- ministrative Organs Department , then lead by Mironov, and the International Department, then led by Boris Ponomarev. Department D was also closely working with the Soviet government through the State Committee for Science and Technology. Colonel Agayants (later General) was chosen to head this new Depart- ment D. He had been the head of the political intelligence faculty in the Intelligence Officers' School and a specialist on the Middle East and Western Europe, with special concentration on Iran and France. His deputy was Colonel Grigorenko, a specialist in counterintelligence work at home and emigre operations abroad. Another key specialist was Colonel Vassily Sitnikov, responsible for operations in Germany, Austria and NATO - a person who will figure prominently in this story. The task of the Disinformation Department, as described in all Western manuals, which are largely based on reconstructions by Soviet defectors, can be summarized in the following way: It is responsible for so-called "ac- tive measures" (aktivnye meropriyatiya), as opposed to "wet work" (mokriye dyelo), i.e., assassinations. Included among the "active measures;" according to one standard work, Brian Freemantle's book "KGB;" are "written or oral disinformation, forgery, the creation of false rumors, manipulation and control of foreign media, the manipulation of political action in foreign countries, the use of agents of influence, the use of clandestine radio stations, use and manipulation of foreign communist parties and international front groups, support for international revolutionary and terrorist groups and, if possi- ble, political blackmail'." In 1968, one year after taking over the KGB, Yuri Andropov restructured Department D, renaming it Department A. In the early 1970s, its functions were upgraded - moving from a "Department" to a "Service" status - thus acquiring a higher position in the KGB organizational structure and much greater access to the resources of the KGB. This restructuring occured simultaneously with the reconstitution of Department V, responsible for "wet work" - assassinations, kidnappings, sabotage, etc. Department V was made part of Directorate S, the so-called "illegal" section of the KGB. Directorate S has overall responsibility for recruiting, training and deploying "illegals" into the West, for the purpose of infiltrating organizations, parties, the mass media, political institutions, police and secret service agencies, etc. Now, both Department A (disinformation) and Department V (assassinations) were placed directly under the KGB's First Chief Direc- torate, whose officers, in coordination with the assassination and disinfor- mation departments, plan and execute political assassinations. This special coordination between the disinformation and assassination departments of the KGB - as one Russian specialist expressed it, "they are living under the same roof" - should be understandable even to the layman. Disinformation operations launched by an intelligence agency have two primary functions. First, they must exploit, to their own agency's advantage, some political or other event, occurring independently of the agency, in their own or in the enemy's camp. Secondly, they must exploit, to their own agency's ad- vantage, or, at least reduce the potential damage to it, events they have created or helped to create in the camp of the enemy. If a section of an agency plans the physical elimination of a political or other opponent, disinformation operations must assure that the investigation of that assassination does not lead, even accidentally, back to the agency's doorstep. The EIR's successful identification of the role of the KGB disinforma- tion apparatus in connection with the Palme murder, in an operation 14 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 His Excellency Boris Pankin Boris Pankin reached the rank of KGB Lieutenant General and head of the KGB's Service A for disinformation before arriving in Stockholm as Soviet ambassador in 1982. already "in place" at the time of the murder, combined with a series of strategic and other considerations, has led to the documented conclusion, that Soviet intelligence had an ultimately primary role in the physical elimination of the Swedish prime minister. Here the principal figures of this Soviet disinformation machine - the dramatis personae - will be first introduced, followed by the actual un- folding of the disinformation campaign itself. One exemplary case, demonstrating the modus operandi of the joint assassination-disinformation deployment of the KGB, is provided by the Soviet penetration of Greece in the 1970s - a case which also in other respects is directly relevant to our story. On December 23, 1975, the "station chief" of the American CIA in Greece, Richard Welsh, was assassinated in the streets of Athens. On August 22, 1979, the former American ambassador to Greece, Henry Tasca, was also murdered in that country. Tasca had a background in in- telligence since World War II, and had served as American ambassador to Athens during the period of the Greek military junta. The junta was overthrown in the summer of 1974, thanks to "geopolitical" arrangements with Moscow authored by Henry Kissinger's State Department. Kissinger had used his underling, Joseph Sisco, as the "case officer" for the overthrow of the junta - a process which led to An- dreas Papandreou's, a Soviet agent of influence, coming to power in 1981. During the period between the Welsh and Tasca assassinations, there were a series of murders of approximately one dozen senior Greek army, police and gendarmerie general officers, all of whom had collaborated with both Welsh and Tasca. According to various Western intelligence officers, the Soviet coor- dinator for the anti-CIA operations in Greece was a person already men- tioned in connection with the 1959 restructuring of the Soviet KGB - Colonel Vassily Sitnikov. In April 1975, nine months after the overthrow of the military junta, Sitnikov paid a visit to Greece, during which he ac- tivated a group of old Greek Civil War era communist guerrillas, led by one Yannis Yannikos. Yannikos later became the head of a rather interesting publishing house [See Chapter I, Section 3.]. Since 1973, Colonel Sitnikov's cover was that of deputy director of the Soviet Copyright Agency (VAAP). The director of VAAP between 1973 and 1982 was none other than Boris Pankin, who, in October 1982, would become the Soviet ambassador to Sweden. The significance of Pankin and Sitnikov was highlighted during a celebrated- 1982 trial in Greece between New York Times correspondent Paul Anastasi and the publisher of a Greek daily, To Ethnos. The Greek daily proved to be a special disinformation project of Pankin's, and accor- ding to reports made known as a result of the trial, Pankin and Sitnikov had reached the respective ranks of Lieutenant General and Major General in the KGB's Service A for disinformation while at the VAAP agency. Pankin was reputed to be the head of Service A, a position that placed him among a handful of the most important officers in the KGB overall. It was a position he may have maintained after his 1982 assignment to Sweden. As VAAP director, Pankin also held the rank of minister in the U.S.S.R. Council of Ministers. The VAAP has 400 officers in its Moscow office and today maintains representative offices in 27 countries around the world. In 1976, a certain Arthus I. Pakhomenkov was in charge of the VAAP section for "Fiction and the Arts." This proves to be a significant connection, on two counts: Firstly, the coordination of all so-called "fiction writers" is a KGB speciality. Secondly, in 1977, Pakhomenkov was transferred from Moscow to head the Swedish VAAP office, the first Western VAAP office to be opened. According to many Western sources, as VAAP director, Pankin was one of the most important cultural figures in the Soviet Union. He exercized censorship rights over everything published in the country, including all published material imported from the West. Furthermore, he presided over EIR Special Report 15 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Sergei Losev: "assassination specialist" Pankin and Losev's KGB scribblers the KGB disinformation apparatus. In both positions, the official and "unofficial" one, he was coordinating a group of KGB and GRU officers, who could be best described as the "LaRouche watchers" within Soviet in- telligence. According to Soviet sources, one of Pankin's "closest friends and col- laborators" is the current director general of TASS, Sergei Losev. Accor- ding to these same sources, Losev has been "centralizing all the information around the Palme investigation from his office in Moscow" EIR in- vestigators confirmed, that Losev frequently travelled to Scandinavia dur- ing the 1983-85 period. Soviet sources report, that his last sojourn in Stockholm was at the end of 1985, although this is denied by Pankin's em- bassy staff. Born in 1927, Losev's "official" career has always been within TASS. He started as a foreign correspondent, to become the TASS editor in Moscow in 1950, later holding the positions of Chief Foreign News Editor, First Deputy Director General, and finally, Director General, a post to which he was appointed some ten years ago. The position of TASS Director General represents a high-level position within the Soviet "Nomenklatura:" and Losev is considered by reliable Western intelligence specialists to be a high- ranking officer in the KGB Disinformation Service. For students of Soviet espionage, this is no surprise. It should be noted that Losev's predecessor as chief of TASS, Viktor Anissimov, was exposed in the 1950s for running five espionage networks in Sweden. In September 1951, this Swedish counterintelligence discovery led to the arrest of Swedish naval engineer Hilding Andersson. Losev is also described by Soviet journalists as a "specialist on assassina- tions" In fact, he wrote several investigative books with another KGB "journalist:" whose name our readers should keep well in mind, Vitalii Petrusenko. Their books can be described in intelligence jargon as "hatchet jobs" directed against the American CIA. In June 1981, Losev and Petrusenko published a book, "Crime without Punishment:' on the Ken- nedy assassination. The book depicted, in their own words, "the sinister mechanism of conspiracies and political murders in the USA, set up by oil tycoons and ultra-reactionary politicians, CIA professionals and Mafia chiefs'." In August 1984, the Soviet press announced a new book by this KGB duo: "USA: Operation Eliminate!' According to the summary of the book reviews issued by TASS - i.e., authorized by Losev himself! - the book "goes into the true facts behind the murders of John and Robert Kennedy, Martin Luther King and Malcolm X, suggesting that these deaths were the result of organized plots involving the CIA and powerful reactionary circles" Around the axis of Pankin and Losev, a group of well-known and powerful Soviet journalists and authors rotate, all of whom are high-ranking figures in the KGB or GRU. Attacks against LaRouche and the CIA originate with this group. This group includes, apart from Petrusenko, a nest of operatives in the KGB "cultural" organ, Literaturnaya Gazeta - Fyodor Burlatskii, Julian Semyonov, Iona Andronov and Aleksandr Sabov. Furthermore, last but not least, the dean of Soviet "anti-fascist" researchers, Ernst Henry, who has over 50 years of Comintern intelligence experience behind him. Since the 1950s, Burlatskii was an intimate acquaintance of Soviet KGB chief, and later Secretary General of the Communist Party, the late Yuri Andropov. In a Literaturnaya Gazeta article of Oct. 26, 1983, Burlatskii at- tacked Lyndon LaRouche and Helga Zepp-LaRouche by name, as well as the West German ELP, for their campaign in favor of a new strategic defense doctrine for the West: "Reading [the LaRouche proposals], I did not know if I should be indignant or laugh about the amusing and ridiculous maxims of the authors, the conjugal symbiosis of the American LaRouche and his wife, the German Helga Zepp- EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 LaRouche, who come out in the name of the committee of a nonexistent party (sic). We will not pay attention to their trivial pretentions.." Contrary to this feigned disinterest, Burlatskii and his KGB superior paid a lot of attention to LaRouche and to the ELP, as will soon become evident. Surely among his other motives, Burlatskii had a personal vendetta to carry out, since EIR had blown his cover at a nuclear-freeze conference in Minneapolis, Minnesota that same year. Soviet press coverage of LaRouche during this period became nearly hysterical. Alarmed by the "well attended conferences" organized by EIR in Europe on the Strategic Defense Initiative, the Soviets described LaRouche as a "troglodyte" and a "caveman" On March 28, 1984, the Literaturnaya Gazeta correspondent in Paris, Aleksandr Sabov, reported on one of these conferences held in the French capital: "Such cynical speculation on the heritage of Roosevelt and de Gaulle are resorted to by the U.S.-based 'International Caucus of Labor Committees' [the philosophical association founded by LaRouche - edit.], which in Europe is called the European Labor Party. Even the `free' press directly calls this caucus and party neo-fascist organizations, protected by the CIA, and calls its leader, the American Lyndon LaRouche and the Frenchman Jacques Cheminade, `Fiihrers' ... Had this been altogether a sparsely-attended and insignificant meeting, I would not for the world draw [attention to it] ... But, alas, it was well attended'.' Here, Sabov resorts to a classical KGB disinformation gimmick, later us- ed extensively in its operations around the Palme case: citing Russian assets in the "free" Western press against LaRouche, in order to "confirm" its allegations. Two other Literaturnaya Gazeta celebrities - both with the rank of col- onel in Soviet intelligence - who are part of the "LaRouche watchers" group are the spy-novel writer, Julian Semyonov, and Iona Andronov. Se- myonov emerges repeatedly, along with Ernst Henry, in dirty operations against LaRouche and the West German ELP. Andronov has been the Literaturnaya Gazeta correspondent in the United States for more than a decade. In October 1984, the Paris-based Soviet emigre, Anatolii Gladilin, writing for the Manchester Guardian, identified him as "a KGB career officer, Colonel Iona Andronov." This fact has, however, been known to Western counterintelligence specialists for years. Andronov also wrote for To Ethnos, Pankin's Greek disinformation dai- ly. It is no surprise that, in May 1985, Andronov admitted to an informant that, "Pankin is a man with an open mind, whom I have known for years!' After Pope John Paul II was shot on St. Peter's Square in Rome on May 13, 1981, the KGB assigned Andronov to counteract the Western expose of the Bulgarian and Russian intelligence services' involvement in the assassination attempt. Again, he resorted to attacking LaRouche, the ELP, and the CIA. Writing in Part III of his Literaturnaya Gazeta series, on July 6, 1983, Andronov said: "Wiesbaden. Dotzheimer Strasse No. 164. The West German branch of an American subversive institution under the mask `Neue Solidaritat' [the weekly founded by Helga Zepp- LaRouche - edit.]. The speciality of the Wiesbaden center is to infiltrate the ranks of the peace movement supporters and left-leaning youth organizations, shadowing them and disorganizing them from the inside. The basic method of their diversionist intrigues is an intensive anti-Soviet propaganda..'.' EIR Special Report 17 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Georgii Arbatov sets the tone KGB General Mikhail Milshtein, the military specialist of the Palme Commission. Here, Andronov was using a standard KGB disinformation tactic, which might be characterized as killing two birds with one stone: First, he por- trayed LaRouche and affiliated organizations as a "subversive" CIA opera- tion - printing the EIR's address in Wiesbaden for the benefit of leftist terrorists. Second, he falsified a statement of an EIR correspondent, allegedly attacking the CIA as responsible for the assassination attempt against the Pope! For those in the West in a position to know about Literaturnaya Gazeta and Andronov, this piece would indicate that the EIR was working with the KGB in trying to blame the CIA for the attempted murder of John Paul II. After this cursory look at the KGB's "star reporters" and "authors" around Pankin, who form the group of the "LaRouche watchers" within Soviet intelligence, we will now examine the live phase of the KGB disinfor- mation campaign around the assassination of Palme. Palme was killed in the late evening of Feb. 28, 1986, while walking home from the cinema with his wife Lisbet. Despite a very tense strategic situa- tion, Palme had no protection. International warnings had been issued of terrorist activities in Holland and Scandinavia, and Sweden in particular. The official police explanation for the lack of security measures is, that Palme himself did not want to have a police escort. This might very well be the case, but it does not answer the question of why the Swedish police and security authorities failed to provide the prime minister with even a discreet security screen on that evening. Was this the result of an incompe- tent evaluation resulting in a tragedy, or was it the expression of something far more sinister? If the Swedish security and police authorities were allegedly caught off- guard, the same cannot be said of the Soviet leadership and its intelligence agencies. On March 1, the morning after the murder, they had already worked out their explanation of the assassination, as it was presented at the 27th Party Congress, then in session. It was Central Committee member Arbatov who was to set the tone for the prepared Soviet orchestration of disinformation. Arbatov, a member of the Palme Commission on Disarma- ment and Security Issues, was identified on July 4, 1984 by the most authoritative Italian daily Corriere delta Sera as connected to the GRU, the Soviet military intelligence agency. Radio Moscow was first to publish Arbatov's remarks, and then the rest of the Soviet media picked up on cue. As Western analysts commented to EIR and to other press representatives, given the traditional slowness of the Soviet propaganda (disinformation) machine, the rapidity of the official Soviet response to the Palme murder was extraordinary. Twelve hours after the murder, Arbatov stated the following: "I do not know who killed Palme, but I know all too well who hated him.... I saw demonstrations against him by fascist hooligans, inflammatory articles, and provocations. Reaction loathed Palme'" The same day, Losev's news agency TASS identified Western circles op- posed to "peace" and "disarmament" as being responsible for the murder of the Swedish prime minister. These not-so-concealed allusions were made more explicit later on by the Soviet disinformation machine, which began attacking LaRouche and the Swedish ELP by name, characterizing them as "reactionaries" and "fascists;" who propose that "Sweden should join NATO:" Arbatov himself also became more explicit. At a meeting of the American Society of Newspaper Publishers in Washington, D.C. on April 11, 1986, he stated that "LaRouche is a fascist;" and characterized the vic- tories of two LaRouche Democrats, Janice Hart and Mark Fairchild, as reflecting "a certain trend'" On March 18, Hart and Fairchild had won the nominations for Secretary of State and Lieutenant Governor in the Illinois State Democratic primaries. "It is very disturbing;" Arbatov continued, "to see a population motivated by racial intolerance (sic) and nationalism... This is an event which should not be overlooked, it could be very serious" EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 KGB Colonel Radomir Bogdanov, Arbatov's deputy in subverting the West. The case of Pierre Schori KGB Colonel Arne Treholt Another person who did not overlook the KGB disinformation cam- paign was the Norwegian Social Democrat, Johan Jorgen Hoist - soon to become Norwegian defense minister. A member of the Trilateral Commis- sion, and, until his appointment as defense minister, Executive Director of the Norwegian Foreign Policy Institute, Hoist is also a member of the Palme Commission, along with such celebrities as Arbatov, KGB General Mikhail Milshtein and KGB Colonel Radomir Bogdanov. In a conversation with a journalist on March 5, Hoist echoed Ar- batov's statements, saying that "the extreme right-wing group" in Sweden that's for "Star Wars" - President Ronald Reagan's Strategic Defense In- itiative - were the ones which "hated Palme the most." Although Hoist hypocritically added that, of course, he doesn't want to intimate that the ELP or LaRouche were in any way involved in the Palme murder, he im- mediately put their names in the context of the assassination, almost two weeks before the media barrage against the ELP started on March 18. Further evidence of the KGB's modus operandi against LaRouche and the ELP was provided to the EIR by an American, who had a conversation with Pierre Schori, the undersecretary of the Swedish foreign ministry and reputed "intelligence czar" of the Swedish Social Democratic Mafia machine. The conversation occurred shortly after Chief Prosecutor K.G. Svensson had resigned on May 16 from the Palme murder investigation, in protest over Police Chief Hans Holmer's handling of the case, particularly Holmer's faked evidence against the initial suspect, Gunnarsson, who was under arrest March 12-19 [See Chapter II, Section 1.]. Schori praised the media attacks against the ELP, which had come to a halt only because of the unfortunate "difference of opinion" between Svensson and Holmer, which prompted Gunnarsson's release. Schori ad- mitted having raised the issue of LaRouche or ELP involvement in the murder directly with the Soviets, who, however, had "absolutely nothing" to substantiate their allegations of such an involvement. Schori, who also admitted having talked about LaRouche with Henry Kissinger for many years, said that he himself was of the opinion that the opportunity should have been seized to carry out a police raid on the ELP's offices, and go through all their papers "with a microscope:' but that this proposal, regrettably, had been rejected. The real significance of these private comments of the Swedish foreign ministry undersecretary will be underscored below, in the light of his career, which defines him as one of the most significant Soviet agents of influence in Sweden and in the West. Schori is united with Arbatov and Hoist in the attempt to implicate the ELP and LaRouche in the Palme assassination. An even deeper connection between the three has surfaced thanks to the exposure, in January 1984, of one of the biggest espionage scandals in the entire post-war period - the arrest of Norwegian foreign ministry official Arne Treholt. On Jan. 20, 1984, the press spokesman of the Norwegian foreign ministry, Social Democratic official Arne Treholt, was arrested by Norwegian police' and security services at the Fornebu Airport in Oslo, en route to Vienna to meet his KGB controller, Major General Gennadi Titov. Treholt had a bag full of classified documents with him. Thus ended a career of Soviet espionage which had apparently lasted 17 years. In the trial which followed, Treholt was found guilty of espionage and sentenced to a 20-year jail term. The trial, many portions of which were held in camera, did not, however, reveal all the major international implica- tions of the Treholt operation - implications that touch upon the role of the Western "Trust" finance-rentier interests, which have been working with the Soviet regime since its birth. These implications take one from Athens to Stockholm, and to the highest levels of the so-called U.S. Eastern Establishment. While working as a journalist for the Social Democratic daily Arbeiderbladet in Oslo, young Treholt came into contact with Soviet in- EIR Special Report 19 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Norwegian KGB Colonel Arne Treholt (left) during one of his secret meetings in Vienna with his KGB controller, Major General Gennadi Titov. Again Pankin and Schori telligence - as early as 1967. Treholt was the leader of the leftist Norwegian Committee for Democracy in Greece, an anti-junta front group, when he met Soviet diplomat and KGB recruiter, Yevgenii Belyayev. One year earlier, Treholt had met Andreas Papandreou, whom he inter- viewed for his paper. As he testified at the trial, this was the beginning of a "long friendship" between the two men, which continued until Treholt's arrest. When he was in Athens in 1984, invited by the Greek government to celebrate the 10th anniversary of the overthrow of the junta, Treholt stayed at the private residence of Prime Minister Papandreou. Immediately after Treholt's arrest, when reached by the Norwegian press for a comment, Papandreou's good friend and minister of culture in the Papandreou government, aging singer and actress Melina Mercouri, could only state: "Tell me it's not true. Why, all of us love that man! ... The entire Greek government is in a state of shock at this news. He's done so much for Greece. He is a personal friend of ours'." After his arrest, Treholt started to talk. Despite purposefully contradic- tory reports in the Norwegian and international media, this high-level of- ficial, who, according to some sources, had NATO cosmic top-secret security clearance - i.e., access to the most important military secrets of the West - evidently was a "KGB Colonel" Treholt revealed a series of Soviet agent-runners and, in particular, he exposed Soviet control over the northern European peace movement, a fact which is essential to the Palme case. The interrogation showed that some of the coordination of the Treholt espionage ring was run directly out of Pankin's embassy in Stockholm. Aleksandr Lopatin, who had to leave Sweden, was operating as one of Treholt's KGB contacts. Lopatin was responsible for infiltrating the Scan- dinavian Social Democratic organizations. Besides providing the Soviets with Western military and related secrets, Treholt was an "agent of influence;" i.e., accomplishing political tasks for his Moscow masters. Treholt's political assignments were coming directly from the International Department of the Soviet Communist Party's Cen- tral Committee, led by Boris Ponomarev, from Arbatov's U.S.-Canada In- stitute, and from Pankin's KGB disinformation apparatus. According to the French weekly Vendredi, Samedi, Dimanche of July 5-11, 1984, during his interrogation, Treholt issued a series of explosive declara- tions which were never allowed to surface at the trial. The VSD revelations appeared in an article entitled, "The Confessions of the Norwegian Spy Minister',' written by Editor-in-Chief Philippe Bernert, and reflected Norwegian counterespionage findings which were passed on to French in- telligence. EIR received the same list of names, and is able to confirm the allegation of the French weekly. The VSD wrote: "A first report based on Treholt's declarations concerns Sweden, in particular. The report, which includes a list of names of people at the highest levels of the Social Democratic government in Stockholm, is most embarassing for the Swedish counterespionage services. "Treholt targets as `agents of influence' or `active sym- pathisers' personalities in the very `entourage' of Prime Minister Olof Palme... "At the very center of this machine, one could find, since 1982 - the date of the return to power of Olof Palme and his Social Democratic team - Soviet Ambassador to Stockholm Boris Pankin, a leading figure of the KGB Disinformation Department. He is the number one Russian specialist in press matters: he has directed the Copyright Agency in Moscow, and the Komsomolskaya Pravda (official paper of the Communist Youth). His wife, Valentina, is herself a press technician, a top reporter at the Literaturnaya Gazeta, specializing in Islamic countries. (...) EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 "Treholt spoke at length of one of `Palme's boys,' a personal friend of Fidel Castro, linked to the Managua Sandinistas, who has made Sweden a land of asylum for certain Latin American refugees on the run... "These (Soviet) operations take place, according to Treholt, on three different levels: within the UN delegation, at the Swedish representation to the Disarmament Commission of Geneva, and in certain Swedish embassies in the West... "It is through women that the KGB succeeds in its most am- bitious operations. Treholt mentioned the example of the mistress of an important minister, of the wife of a Supreme Court magistrate of Stockholm, and of a female television pro- ducer who is very popular in Sweden. The Swedish press is reported to be particularly targetted by the Soviets; an impor- tant morning paper and one of the most important evening papers are reported to be headed by Soviet `agents of influence' According to Treholt, a person in a position of responsibility at the Swedish TV, an eminent member of a conservative party, would refuse Moscow nothing.." The career of Fidel Castro's friend "Palme's boy" Pierre Schori, now undersecretary of the Swedish Foreign Ministry, rose to prominence within the Social Democratic secret intelligence organization (SAPO) in the early 1970s. The "Palme's boy" mentioned is, of course, Pierre Schori. Born on Oc- tober 14, 1938, Jean-Pierre Olof Schori had the following career: ? Graduated in 1962 from the Lund University. ? Secretary of the Party Executive of the Swedish Social Democratic Party (SAP), 1966. ? International Secretary, SAP Executive, 1968. ? Section Head, Developing Sector Department, Swedish Foreign Ministry, 1971. ? Editor of the SAP's ideological journal Tiden, 1971. ? Division Head, Office of the Prime Minister (Palme), 1973-76. ? International Secretary, SAP Executive, 1976. ? Undersecretary, Swedish Foreign Ministry, 1982. ? Reputed leader of the secret SAP intelligence organization, the so-called SAPO, since the fall of 1973. Schori was a specialist on Latin American affairs, working for Willy Brandt's Socialist International since early in his career: his connections to and friendship with Fidel Castro, the Sandinistas, and all kinds of terrorist organizations are well known. His career started with a 6-week trip during November-December 1966 to 15 Latin and Central American countries, on behalf of the International Union of Socialist Youth. The web of contacts and relations that Schori has established since - in his own words, the best network of its type in all of Europe - consists of precisely those left-wing elements of the Socialist International in Cen- tral and Latin America exposed by U.S. intelligence as being controlled by the Soviet KGB, on the basis of material discovered after the invasion of Grenada. Documentary evidence was found on the island to prove KGB control over this Socialist International network associated with Schori. EIR Special Report 21 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Back to the Treholt story Arne Treholt (left) with his boss, Norwegian Minister of Sea Rights Jens Evensen (right), on a visit to Moscow. Treholt's advise to Evensen in crucial border negotiations with the Soviets made it appear as though "the KGB was on both sides of the bargaining table:' Besides the Swedes, Treholt's activities implicated the top leadership of the Norwegian Social Democratic Arbeiderpartiet, including party vice chairmen Reiulf Steen and Einar Forde, the head of the party's Interna- tional Committee Thorvald Stoltenberg, and Jens Evensen, the man who fostered Treholt's Norwegian government career in the 1970s and 1980s, while Evensen was Minister of Sea Rights. Evensen negotiated with the Soviet government on the demarcation lines separating the Soviet from the Norwegian fishing and economic exploita- tion zones in the militarily sensitive Barents Sea region. Treholt advised Evensen to accede to the Soviet demands to extend their zone further West - a major military concession in one of NATO's most vital anti-submarine defense corridors, crucial for the U.S. defense against the Soviet submarine fleet stationed at Kola. Treholt's role in these negotiations, in the light of his being a Soviet spy, led the Norwegian press to comment that the "KGB was on both sides of the bargaining table." It was Evensen who, in 1979, under the influence of Treholt - and to everyone's astonishment - revived the proposal for a Scandinavian nuclear-free zone. He made this proposal at a trade union conference, without prior consultation with even top foreign ministry officials of his own government. Treholt was given the outline for this proposal by his KGB superior, Maj: Gen. Titov, who had received the draft from Ponomarev and Arbatov. Despite the fact, that he was already under suspicion, in the spring of 1982, Treholt was allowed to join the ultra-secret Norwegian Military Defense Staff College, Forsvarets Hoyskole. Prior to this he had been with the Norwegian United Nations mission, since 1979, in New York City, in charge of economic and social affairs under the Social Democratic govern- ment of Odvar Nordli. Although two FBI agents were deployed on a 24-hour basis to surveil Treholt, and although he maintained regular contact with his KGB con- trollers - Titov and KGB officer Vladimir Zhizhin - surprisingly, his cover was not blown. An intelligence "miracle" explained only by Treholt's high-level connections to (and protection by) the "Trust" nework, in the U.S. and elsewhere. Already at the beginning of the 1970s, Treholt was assigned by Titov to go to work for Johan Jorgen Hoist's Norwegian Foreign Policy Institute, the same Holst who would later quote Arbatov on the Palme murder. Hoist's institute has been a long-standing center for disarmament pro- posals and anti-SDI propaganda in Scandinavia. Hoist is an intimate friend of Kissinger-crony Helmut Sonnenfeldt, a curious fact, which should not be so surprising: Kissinger and Sonnenfeldt have been under investigation and publicly attacked by patriotic U.S. in- telligence specialists, who have denounced their role as Soviet agents of in- fluence. Kissinger was forced to leave his post in the Kennedy Administration, because of these investigations, an embarassment quickly remedied when he was appointed National Security Adviser to President Richard Nixon in 1969 - the compromising files on him and Sonnenfeldt have mysteriously disappeared from the U.S. archives. During the Treholt trial, Sonnenfeldt was asked to testify regarding details of certain meetings he had with Hoist in February 1980 and in 1981. According to the Norwegian press in February 1985, Sonnenfeldt's answer was arrogantly self-assured: "I say the same thing to Holst that I would say to the Russians themselves (sic), or for that matter, to VG [a Norwegian daily]" However, since the trial developed into a cover-up of the higher levels of the "Trust" network, the transcript of Sonnenfeldt's remarks has been stricken from the published, official record, marked "Not Made Public" The Treholt connection brings to light another, similarly tainted figure, the current U.S. Ambassador to West Germany, Richard Burt, former Assistant Secretary for European and Canadian Affairs at the U.S. State Department. It was Burt, who, as a New York Times journalist, leaked highly sensitive information concerning the redeployment of U.S. radar EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The KGB and Sweden Mikhail Yakovlev, Pankin's predecessor as ambassador to Sweden, had a solid spy career even before his 1971-82 tenure in Stockholm. and listening stations from Iran to Norway, an operation code-named "Chalet!' Burt is a good friend of Hoist, as well as a friend of former Carter Administration official and New York Times colleague, Leslie Gelb, who is also a member of the Palme Commission. Given Schori's connections to his friend Kissinger, Treholt's relations to Hoist and Sonnenfeldt, and Pankin and Arbatov's role in the Treholt es- pionage affair, the similarities between the public and private statements of Arbatov, Hoist and Schori on the Swedish ELP and LaRouche with regard to the Palme murder appear in a more revealing light. This will become still clearer as the KGB disinformation network is further unraveled. Historically, Bolshevik Russia has maintained a kind of "special relation- ship" with the Swedish oligarchy, and with the ruling Social Democratic machine: A relationship which the Russians, loyal to their convictions and aspirations, have tried to transform into a relationship of empire-to- satrapy. This is also true for the massive historical penetration by Soviet in- telligence of a large number of Swedish institutions and organizations. It is no secret in the Western intelligence community that Sweden is view- ed as a "Russian paradise;" to which Soviet spies are recycled, after being expelled by other Western countries. On January 13, 1986, the Italian daily Il Giornale reported: if Soviet spies "are expelled, or simply removed from their positions, they will end up in the Swedish capital, where there is the highest concentration of East Bloc 007's who have been kicked out of other Western capitals'" The best known case is former Soviet Ambassador Mikhail Yakovlev. During the war, Yakovlev worked as a teacher for the KGB. In 1960, he was appointed ambassador to Congo, and then to Iraq, from where he was ex- pelled for espionage. He then became the headmaster of the "diplomatic (i.e., spy) school" of the Soviet foreign ministry until 1971. That same year, he was appointed ambassador to Sweden. Apart from the United States, Sweden is considered to host the highest- ranking Soviet espionage network in the West. Besides Lt: Gen. Pankin, the Stockholm embassy includes, according to reliable counterintelligence specialists, three other KGB general officers and one GRU general officer. Current Soviet KGB "resident" (i.e., station chief) in Sweden is General Nikolai Seliverstov, a 55-year-old officer who has been stationed in the country since 1980. In contrast to his KGB colleagues, Seliverstov does not live in an apartment in downtown Stockholm, but in a special section of the Soviet embassy itself. According to Swedish military counter- intelligence sources, the "KGB special group" led by Seliverstov, "is there to penetrate the circle of political advisers around Olof Palme" One of Palme's advisers, who has continually received the "red carpet treatment" in Moscow, is Pierre Schori. In order to trace the roots of the Soviet-orchestrated disinformation campaign against LaRouche and the Swedish ELP, which reached its peak in the aftermath of the murder of Palme, one has to go back to this period of the mid-1970s. Vitalii Petrusenko, whom we identified earlier as the closest KGB collaborator of TASS chief Sergei Losev, wrote a book in 1976, entitled: "A Dangerous Game: CIA and the Mass Media'" Beginning on page 162, there is a section of Chapter VIII entitled, "Solidarity - CIA style:' where Petrusenko devoted six pages to attacks on LaRouche, the paper New Solidarity and the philosophical association which LaRouche initiated, the National Caucus of Labor Committees (NCLC) and its European section, the European Labor Committees (ELC). Petrusenko wrote: "In the autumn of 1975, public attention was drawn to a statement by Per Fagerstrom, press secretary of the prime minister of Sweden, in which he said that the NCLC represen- tatives `are energetically compiling everything they can find out about leading Social Democrats. This is simple, concrete infor- mation which is well-suited for data processing' To this a spokesman for Sweden's mission to the United Nations added: EIR Special Report 23 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 `The European Labor Committees and the International Press Service [New Solidarity] have been coming to press conferences of members of the Swedish government. They have been ex- tremely disruptive. They have been active in a very extraor- dinary manner' "The Swedish newspaper Aftonbladet wrote that the `ELC is operating as a pro-Communist group (sic), but in reality is a North American anti-Communist organization which in Sweden and other countries is suspected of having committed various acts of espionage and sabotage! "A number of papers, including the West German Die Tat, reported that former CIA Director William Colby and former CIA Deputy Director Ray Cline had admitted that the CIA an- nually provided New Solidarity with $90,000 and that about 80 percent of its staff were CIA and FBI people" The KGB's "independent" Western sources Of course, Colby and Cline never "admitted" such a thing. Putting the significant case of Die Tat aside for a moment, attention will first be focus- ed here on the standard KGB tactic of quoting "independent Western sources" Aftonbladet is a Social Democratic paper, which already in 1975 launched a big campaign against the European Labor Committees, the predecessor organization of the European Labor Party in Sweden; one of its former chief editors, Gary Engman, was exposed by Treholt together with Schori and others as "Soviet agents of influence or active sympathizers" The other "source" used by Petrusenko, "a spokesman for Sweden's mission to the United Nations;" also appears dubious, given that Treholt also mentioned Anders Ferm, the head of the Swedish mission to the United Nations, among the "Soviet agents of influence or active sympathizers;" according to intelligence sources in Western Europe. But the first "source" quoted by Petrusenko is the most interesting one - Per Fagerstrom. When Petrusenko wrote this, Fagerstrom was working under Schori in the Prime Minister's Office. On March 18, 1986, in the middle of the media barrage against the ELP, Fagerstrom refered a jour- nalist interested in the ELP to talk to a certain Hakan Hermansson, who works as a journalist for the Social Democratic paper Arbetet in the southern Swedish city of Malmo. Hermansson, a personal friend of Schori, is working with him at the mo- ment, writing a book on Afghanistan. Already in 1975, Hermansson wrote a pamphlet-length attack on LaRouche and the ELP, and has been con- sidered an "ELP specialist" within the Social Democratic Party. His newspaper, Arbetet, was so committed to destroying the ELP and ex- ploiting the emotional effects of the Palme murder, that it crudely violated the Swedish code of press ethics, by publishing the full name and picture of the initial suspect, Gunnarsson, who was under arrest at the time. Most of the press claimed, despite ELP denials, that Gunnarsson had been a leading member of the ELP for many years. In order to "prove" this, they not only resorted to lies and distortions, but to outright forgery. On the evening of March 18, Hermansson stated to a journalist: "Another fact, which we ourselves discovered at the newspaper today, was that already in 1976, when we had elections in Sweden, he [Gunnarsson - edit.] was one of a group of ELP members who clashed with Social Democratic election workers during a rally at which Olof Palme was pre- sent in the city of Orebro" In fact, that very day, Aftonbladet had ran a full-page picture "showing" Gunnarsson and an ELP group demonstrating with pickets outside the Social Democratic rally in 1976. This totally fabricated story was picked up by other papers, in Sweden and worldwide. In order to boost the validity of the picture, Aftonbladet even added that Gunnarsson - along with the other ELP'ers in Orebro - filed a complaint with the local police against the Social Democratic party workers, who had assaulted them at the rally! EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 now the disinformation campaign began No attention was paid to the ELP's denial. The day after, however, on March 19, Aftonbladet was forced to print a small, half-hearted retraction of the story. The person identified as Gunnarsson in the picture was in reality an active Social Democratic party member, who now threatened to sue his own paper, if they did not carry a retraction! Was Hermansson, Fagerstrom and Schori's collaborator, blind in his anti-ELP fury, or was he simply retailing what he was told to say? The distinction does not really matter, since, in the same period, Foreign Ministry Undersecretary Schori was demanding that the police conduct a totally illegal Nacht and Nebel raid on the ELP's offices. At this point, the KGB disinformation campaign had reached its peak. After the initial signal given by the GRU's Georgii Arbatov, the Soviet disinformation campaign's first salvo aimed directly against the ELP hit simultaneously in Denmark and West Germany. On March 3, three days after Palme's death, the Danish mass-circulation tabloid Ekstra Bladet ran an article by its "star reporter;" Paul Gazan. Ekstra Bladet stated that "sources in the police leadership reveal they are looking intensely at right- wing extremist groups, such as the Swedish neo-Nazis and the so-called `European Labor Party, which also has a branch in Denmark'.' That same day, the Berlin-based pro-terrorist paper Tageszeitung (TAZ) issued the same charges against the ELP, writing that "the security police is mainly focusing on right-wing extremist circles including the `European Labor Party'..!' The simultaneous attack from these two papers is not so extraordinary, if seen from the standpoint of the KGB disinformation network. Ekstra Bladet's lawyer is a certain Jan Schultz-Lorentzen, among whose clients one finds also the Danish radio journalist Peter Poulsen, who slandered the ELP in Denmark as "fascist" Poulsen was taken to a Danish court by the ELP in 1983, found guilty of slander, and fined. Interestingly enough, Schultz-Lorentzen was also hired as the lawyer for Danish "peace activist" Arne Herlov Pedersen, when he was accused of be- ing a Soviet agent. Pedersen had been given money by KGB Colonel Makarov, in order to collect signatures of leading Danish cultural per- sonalities for an advertisement in the Danish press, calling for a nuclear- free zone. This was the same Makarov who was the case officer for Arne Treholt, when Maj: Gen. Titov had to leave Norway in 1977. In Denmark, Makarov was operating under diplomatic cover from the Soviet embassy in Copenhagen. "Star reporter" Paul Gazan has been a steady contributor to the Danish leftist sheet Information. Gazan has been on the editorial board of a series of left-wing tabloids, including the pro-terrorist Politisk Revy and Socialistisk Politik. The key journalist at Information is one Jorgen Dragsdahl, a leading conduit of Soviet propaganda in Denmark, himself married in Moscow to a Russian citizen. A pupil of the Comintern agent and leader of the communist "resistance" during World War II, Count Elias Bredsdorf, Dragsdahl has spent over a decade slandering the ELP. Dragsdahl was the "expert" called into court to testify against the Danish ELP by the Albanian-linked Danish Communist Party (Marxist-Leninist) - DKP(M-L). This group has also been taken to court and sued for slandering the ELP as "fascist" They were found guilty and fined by a Copenhagen court in 1984, appealed the case, and lost again. The pro-terrorist Tageszeitung was co-founded by Hans Christian Strobele, a former lawyer of Andreas Baader of the West German terrorist organization, Rote Armee Fraction (RAF). Strobele is reported to have received part of his professional training from a high-level East German agent, Friedrich Karl Kaul, who also played a role in Pankin's To Ethnos project. In their haste to try to "implicate" the ELP in the Palme murder, the KGB's underlings made a revealing blunder. The writers of the articles in Ekstra Bladet and in Tageszeitung both admitted that their information EIR Special Report 25 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The Gunnarson connection A KGB mole in the Swedish police? came from the Swedish daily Expressen, although they published their ar- ticles one day before Expressen published its own slander against the ELP. The March 4 Expressen article, written by crime reporter Leif Brann- strom, who is often leaked information by the police, claimed that the ELP is on a list of suspected right-wing or terrorist organizations under in- vestigation by the Swedish security police (SAPO). Brannstrom adds that the ELP is "known for hate propaganda against Olof Palmer" the code words issued by Arbatov on March 1. In the same issue, Expressen made its own blunder, by publishing an article by Arbatov himself, again rehashing his original KGB disinformation line, about "who hated Palme" In the meantime, the newly-formed police task force investigating the Palme murder, led by Stockholm Police Chief Hans Holmer, had secretly picked up and interrogated a 32-year-old Swede, by the name of Gun- narsson. Allegedly, the police picked him up on the basis of a tip provided by somebody, but, initially, found nothing to incriminate him. Gunnarsson had approached an ELP book table in downtown Stockholm in April 1984. At that time, the ELP was collecting signatures required to file its national party registration forms before the upcoming 1985 Swedish national elections. Gunnarsson signed the ELP petition on the spot, and therefore his name appears together with that of 1,800 other Swedes on the registration forms deposited by the ELP with the Electoral Office of the National Tax Authority. Gunnarsson showed no interest whatsoever in doing anything to help the campaign, nor was he interested in contributing any money to the cam- paign. He never attended any ELP meeting, nor did he ever write anything for any ELP publication. Noticing some unbalanced features in Gun- narsson's reactions, the ELP cut all contact with him, in May 1985. Nonetheless, the "Gunnarsson connection to the ELP" was transformed by a KGB-manipulated media disinformation campaign into the "main track" of the Palme investigation. Despite the fact that Gunnarsson was released after initial questioning on March 2, sources within Holmer's task force or the SAPO, already at this early stage, leaked to some selected journalists the story of a potential ELP "involvement" in the Palme murder. This leak within the police should be of crucial importance to any competent investigation of the Palme assassination. In fact, as security specialists have pointed out, Gunnarsson has the profile of a typical agent provocateur: frequent foreign travels, knowledge of several languages, membership in various churches and cultist sects, etc. In the light of the systematic disinformation campaign later conducted, where the alleged "Gunnarsson connection" was the key element used to im- plicate the ELP in the murder of Palme, it cannot be excluded that Gun- narsson was "sent" to the ELP booktable in April 1984, so that his signature would appear on the ELP registration forms. If so, then the same source in the police apparatus, who controlled and deployed Gunnarsson, could be the KGB mole who leaked to the press about an alleged "ELP track" in the Palme murder investigation. This hypothesis is, at least in part, supported by another article publish- ed in Denmark. Gunnarsson had again been picked up by police for inter- rogation on May 10, and arrested on May 12 as a possible suspect, but his name was not made public, since the Swedish code of press ethics stipulates that the identity of a detainee must remain undisclosed, until he or she has been tied to the crime. Nonetheless, the Danish tabloid BT published an article by Jan Sogaard on March 14, titled, "Olof Palme Murdered by Communist Haters:' echo- ing the Arbatov-KGB theme. BT is owned by the same group which runs the "conservative" daily Berlingske Tidende. The associate editor of "con- servative" Berlingske is Nils Norlund, brother of the chief ideologue of the Danish Communist Party, lb Norlund. Nils Nerlund is married to Willy Brandt's former wife. BTs feature writer, Jens David Adler, is a member EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The KGB's "conservative" side "Ex-syndicalist" Hans Lindquist, a "very reliable source" for police spokesman Leif Hallberg (below). of the Pugwash movement, Moscow's nuclear disarmament asset in the West. BT wrote: "The 35-year-old, who is suspected for the murder of Olof Palme, was already known to the Swedish security police SAPO (sic). The reason is his connection to the extreme right- wing movement, the `European Labor Part' According to sources in SAPO, the 35-year-old has been a sympathizer of the EUP (sic) and has worked on a freelance basis for the party, among other things by authoring articles for party journals. In those, he has been very aggressive against Olof Palme. Therefore, the 35-year-old was registered [by the police]" Aside from the lie that Gunnarsson was "authoring articles for party journals;" the fact that his name was on the ELP's registration forms was not known at that time, not even to the journalists, who would "discover" it only three days later. Thus, someone in the police or security police was evidently complicit in trying to implicate the ELP in the murder. Were these the same sources who "sent" Gunnarsson to the ELP in the first place? Again, one must ask why police protection was not provided for Palme on the evening of Feb. 28. On March 17, Holmer announced to the press that the 32-year-old suspect was going to face charges as a perpetrator of the Palme murder. That was the long-expected signal for the KGB media disinformation cam- paign to explode into a world event. The media campaign peaked on March 18, carried first by Swedish Radio, and then later by television and radio througout the world. It was Sweden's leading "conservative" daily, Svenska Dagbladet, which spearheaded this campaign. The paper carried a front-page title, "Suspect to Be Charged, Member of Political Sect:' over an article written by Richard Aschberg and Sune Olsson. Ironically, Richard Aschberg is the grandson of the key Swedish "Trust" operative at the beginning of this century, the "Red banker" Olof Aschberg, a friend of Lenin [See Chapter III, Section 2.]. Already, Svenska Dagbladet had gone on record as the "conservative" counterpart to the Social Democratic Aftonbladet in campaigns against the Swedish ELP. In September 1984, Svenska Dagbladet had run a two-part series by journalist Willy Silberstein, slandering the ELP as a "political sect;" which had sent its members for paramilitary training in West Ger- many, and which was forcing its female members to have abortions, so that they could work harder! The fiction of the ELP's weapon training in West Germany was picked up on March 19, 1986, by Aftonbladet, which was not ashamed to run - one day after the false picture of the ELP and "Gunnarsson" - a two-page fabrication, lying that the West German Nazi-terrorist Karl-Heinz Hoff- mann, who was jailed some years ago, had trained at least six Swedish ELP members! The chief difference between the "conservative" Svenska Dagbladet and the Social Democratic Aftonbladet is, that while the latter accused the ELP of being a CIA operation, Svenska Dagbladet, with a more conservative readership, blasted the ELP as KGB! Svenska Dagbladet journalist Willy Silberstein had based his "research" on the ELP primarily on the work of another journalist, Hans Lindquist, the political editor of a small liberal paper, Falu Kuriren, in the Dalarna province. Most of the slanderers of the ELP in the March 1986 KGB- campaign, whatever their angle ("CIA;' "KGB:' "Ku Klux Klan:' "political sect;" etc.), cite Lindquist as the "expert" on the ELP. Even police sources, and Holmer's task force spokesman Leif Hallberg, have described Lind- quist as a "very reliable source on the ELP?' Sune Olsson from Svenska Dagbladet referred to Lindquist. Leif Brannstrom, from Expressen, also referred to Lindquist. Who then is this Lindquist? A former member of the Soviet-controlled "Syndicalist" organization, together with Professor Joachim Israel, Lind- quist has spent more than a decade of his life attacking the ELP and EIR Special Report 27 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The ADL connection Chip Berlet and Dennis King LaRouche. Already in 1976, he published an article slandering the ELP as KGB. Interestingly enough, he has also written a manuscript, not yet published, entitled "The Brown Shirts of the Seventies;" the same title which was used for a pamphlet written against LaRouche in the U.S., by another so-called "LaRouche expert;" Dennis King. This use of the same title was not accidental, nor was it mere journalistic plagiarism. It reflects instead the common Soviet intelligence matrix for operations against LaRouche, both in the U.S. and in Sweden. Another person who referred to Lindquist was the head of the Anti- Defamation League (ADL) in Sweden, Gabriel Stein, who also recom- mended investigators to contact Aftonbladet for more information on LaRouche. This is not as strange a connection as it might appear. In 1975, the first banner-headline attack on the Swedish ELP, carried by Af- tonbladet, was written by communist activist and psychologist, Gun Zacharias, a member of a Jewish family that emigrated from the Soviet Union. Zacharias was one of the guiding figures in the formation of the post-1968 leftist movement, and has also given lectures for Swedish military circles. The material used by Lindquist against the ELP is the same mixture of slanders and lies collected by the ADL in New York City. The ADL, nominally a pro-Jewish lobby organization, is, in fact, an organized-crime connected organization, which maintains back-channel contacts with Soviet intelligence, primarily through the left-wing of the Socialist Interna- tional. In other locations, the EIR has published extensive documentation of the ADL's drug-lobby connections, and will refer to it here only cur- sorily. In 1977, LaRouche initiated an in-depth investigation of the interna- tional drug trade, leading to the publication of the best-selling book, "Dope, Inc." The organized-crime linked ADL decided to launch a major campaign to destroy LaRouche, who had dared to unveil the financial secrets behind the drug trade. Since drug trading also involves some criminal elements of Jewish origin, like the late infamous mobster Meyer Lansky, since that time the ADL has labelled LaRouche "antisemitic;' "Nazi;" "KKK-connected:' a "Fiihrer;" and so forth. The ADL case officer in charge of defaming LaRouche is the head of the ADL's so-called "Fact Finding Division:' Irwin Suall. Suall is an of- ficial member of the Socialist International, a close friend of Willy Brandt's personal assistant, Klaus-Henning Rosen, and of Pierre Schori, with contacts to the American League for Industrial Democracy. Among Suall's agents, one also finds terrorists like the Jewish Defense Organiza- tion's Mordechai Levi, who publicly threatened LaRouche with assassina- tion, in a press conference in Israel on August 23, 1986. The press slanders are primarily conduited through Chip Berlet from Chicago and Dennis King from New York City. Chip Berlet wrote one of his first articles against LaRouche in the official drug-lobby paper in the U.S., High Times, which paper openly advocates the legalization of drugs. Dennis King, a former Maoist of the Progressive Labor Party, who was convicted of fraud, wrote a series of articles against LaRouche for the New York City throwaway paper Our Town. The publisher of Our Town, Ed Kayatt, was convicted of extortion, while his chief sponsor, homosexual Roy Cohn, was one of the recent fatal victims of the AIDS epidemic. Cohn, an adviser to the infamous Senator Joe McCarthy in the 1950s, was also the legal counsel for the five major Italo- American Mafia families of New York. The ADL's documented involvement with organized crime can only be highlighted here: ? Kenneth Bialkin, the retiring national executive committee chairman of the ADL, is one of the two senior managing partners of the ADL's law firm, Wilkie, Farr and Gallagher. In January 1980, a jury in the U.S. EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Dennis King, a former Maoist convicted of fraud, cooperates with drug lobbyist Chip Berlet (below) in conduiting slanders against LaRouche for the Anti-Defamation League. Southern District Court of New York ruled that Wilkie, Farr, and Gallagher had to repay $35 million of investments, which had been looted from the Fund of Funds of fugitive financier, Robert Vesco. From 1968 until the exposure of Vesco's criminal activities in 1975, Wilkie, Farr, and Gallagher had represented Vesco's companies, in- cluding Investors Overseas Services, Fund of Funds, etc. Vesco is today safehoused in Havana, Cuba. ? On Janury 29, 1982 Italian authorities brought suit before the U.S. Southern District Court charging that Sterling National Bank, the ADL bank, together with former Nixon Administration Treasury Secretary David Kennedy, had aided Michele Sindona in robbing $27 million from the Banca Privata Italiana. Murdered this year in an Italian prison, Sin- dona was reputed to be one of the major bankers for the international Mafia. ? In 1983, the ADL gave its "Torch of Freedom" award to Morris Dalitz, one of the best-known American Mafia leaders and a founding member of the notorious, Cleveland-based "Purple Gang" These examples could be multiplied ad infinitum. For details, we refer the reader to the book, "Dope, Inc" Not only did the ADL issue its drug-lobby slanders against LaRouche and the ELP in Sweden. It was also directly involved in the illegal police witch-hunt investigation of the ELP. First, Irwin Suall appeared on NBC- TV's Nightly News on March 18, certifying that "it is not inconceivable" that a person connected to LaRouche might have killed Palme. Secondly, the ADL provided a liaison between the U.S. State Department, Israel's and Sweden's embassies in Washington, the Swedish foreign ministry and the Swedish police. In short, the same Kissinger-linked networks around Pierre Schori, which had been exposed, but not destroyed, as a result of the inter- rogation of Treholt. EIR's investigation showed that Jonas Hafstrom, a Moderate Party associate employed as the first secretary at the Swedish embassy in Washington, approached the Israeli embassy for assistance in the Palme murder investigation. The Israeli deputy chief of mission, Elyahim Rubenstein-Migdal, in turn directed the ADL to turn over its files on LaRouche to the Swedish authorities. Abe Foxman, International Affairs Director of the ADL, received these instructions before traveling to Israel. Foxman saw to it that members of the Swedish embassy were given access to the ADL's files, some of which material was reportedly "coded" for transmission to the Swedish foreign ministry, for distribution to Holmer's task force through Nils Rosenberg. Meanwhile the State Department's Swedish Desk, through a certain Richard Christensen, advised journalists to get in touch with Goran Rosenberg, a Swedish TV journalist in Washington, D.C. Christensen characterized Rosenberg as a person well-informed about the ELP. In 1982, Rosenberg, together with his colleague Larsolof Giertta, had produced a vicious TV program against the ELP, slandering the party as "Nazis" The TV program featured "experts" on LaRouche, such as Milton Ellerin from the American Jewish Committee and Michael Harrington of the Democratic Socialist Organizing Committee. Both these individuals have close connections to the ADL's Irwin Suall. Yet another significant link in this Swedish-American axis against the ELP and LaRouche, was the press attache at the Swedish Washington, D.C. embassy, Stig Hadenius. Along with Schori and others mentioned above, Hadenius was one of those singled out by Treholt in 1984 as belonging to the category of "Soviet agents of influence or sympathizers,' according to EIR's sources. Again and again, EIR's reconstruction turns up Soviet agents, Western representatives of the "Trust" and organized-crime con- nected figures - all deployed in the disinformation campaign against LaRouche. EIR Special Report 29 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Searchlight for the KGB Who runs Gerry Gable? A further piece in the puzzle, also connected to the ADL operation in Scan- dinavia, is represented by the London-based "investigative" and "anti- fascist" monthly journal, Searchlight. Here again, the tracks of the story lead back to Soviet and DDR intelligence networks. The January 1986 issue of Searchlight reported on an EIR seminar held in October 1985 in London. Concerned, as the journal claimed to be, "about the two hundred people who were at the meeting;" and about the high level of the audience, Searchlight mounted an attack on LaRouche - an attack which became significant for developments in Sweden two months later. Under the headline, "Far Right Spooks Move In;" and with the caption, "U.S. private intelligence agency at work in UK;" Searchlight wrote: "A former member of the organization that we spoke to warned us that the organization `kills' and a UK private security firm, which has strong links to British intelligence, has given a similar warning:' The article continued, quoting U.S. officials, that EIR is "one of the best private intelligence agencies in the world;" and stressed - as did Petrusenko in his book - that LaRouche's influence is particularly strong in Latin America, "where EIR operates a string of `bureaus' and maintains the highest-level links with a number of governments, especially those of Guatemala and Mexico!' The circulation of the line that LaRouche's organization "kills;" is not simply a wild accusation by some obscure British publication, but rather a multi-level, sophisticated feature of Russian-run propaganda in prepara- tion for a major disinformation operation. Searchlight was founded by Maurice Ludmer, an old communist agent, who died in 1981. His compa- nion, the current chief editor of the magazine, is one Gerry Gable. The Russian embassy in London obligingly provides inquirers with the memorized address and telephone number of Searchlight, in case of need: the liaison to the journal is maintained through the Soviet embassy's press attache, Gennadi Shabanikov. Gerry Gable was born in January 1937. A former member of the Young Communist League, Gable ran as a Communist Party candidate in the Northfield ward of Stanford Hill, north of London, in 1962. According to the British Sniper intelligence publication, Gable "was also linked to the Zionist `antifascist' 62 Group, formed by veterans of the anti-Mosley group. The 62 Group (mostly supporters of the Beginite Herut Organiza- tion, a political successor to the Irgun Zvai Leumi terrorist group) specializ- ed in direct action, infiltration, dirty tricks, and burglary." In fact, in January 1964, Gerry Gable and two of his companions were convicted at Highbury Magistrates Court for committing burglary in the apartment of right-wing historian, David Irving. According to Sniper, Gable's functioning as an agent is documented by the fact, "that Gable has been passing information to Special Branch [British political police], MI5 [British internal secret service] and foreign security services for twenty years; he has served as a conduit for misinformation and `black' propagan- da between MI5 and the media..'.' Sniper also quotes from a private letter by Gerry Gable, in which he claims to have connections to the "French and British security services... I may try somebody at the Israeli Foreign Office that I know.." The EIR can now shred some light on exactly who Gable's real controllers are. For years, he has worked with the Paris-based representative of the ADL, Shimon Stanley Samuels. Gable has admitted, that he and Samuels coordinate operations against the LaRouche organization in Scandinavia. In fact, the afore-mentioned Swedish "ELP watcher;' Hans Lindquist, has admitted, that he has worked for Samuels on anti-ELP operations in Scan- dinavia. What Gable does not admit is even more significant. His intelligence-gathering and "dirty-tricks" operation is ultimately under Soviet intelligence control, mainly through the mediation of VVN-related "Nazi-hunting" networks. EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Ernst Henry, aging KGB spy-master and disinformation specialist, was deployed in the campaign against LaRouche and the ELP - see Chapter //, Documentation. "Destroy the ELP!" VVN is spelled out, Vereinigung der Verfolgten des Naziregimes - Bund der Antifaschisten ("The Society of those Persecuted by the Nazi Regime - League of Antifascists"). The VVN was created in the Soviet-occupied zone of Germany in 1945, and works under the auspices of the Soviet world umbrella organization, the Coordinating Committee of International Veterans' Organization. Gathering survivors of Nazi concentration camps, like Gable's friend and collaborator at Searchlight, Maurice Ludmer, who was at Bergen-Belsen, the VVN has the official cover of gathering news on the revival of Nazi and neo-Nazi groups, antisemitism, etc. In reality, it is a tightly-run Soviet and DDR intelligence operation, with most of its personnel coming from the German Communist Party (DKP), and it currently serves as a covert plann- ing structure for the low-intensity warfare unleashed against the Federal Republic of Germany and its industries by terrorists, pacifists and ecologists. The key personnel in the VVN structure are: Max Oppenheimer, who collaborated with British intelligence during the war, Kurt Erlebach, Emil Karlebach, an official member of the DKP, Paul Grunewald, and others. As in the case of Searchlight, any Soviet or East Bloc "journalist" based in West Germany will refer to the VVN archives for anything concerning LaRouche and the ELP. Some VVN leaders admit personal acquaintance with the family of "master spy" Markus ("Misha") Wolff, the head of the infamous East Ger- man intelligence service, Staatssicherheitsdienst (STASI). Organizationally, the VVN "depends" on two East German agencies, the Institut fur Interna- tionale Politik and Wirtschaft (IPW - Institute for International Politics and Economy), based in West Berlin, and the Komitee der Widerstands- kampfer (Committee of Resistance Fighters), in East Berlin. In Moscow, this Soviet and DDR run "antifascist" operation has been controlled by two individuals mentioned above, in the context of the Pankin-Losev KGB disinformation apparatus: Ernst Henry and Julian Se- myonov. Semyonov, who has the rank of GRU Colonel, is a "correspondent" for Literaturnaya Gazeta in several countries, and has often been caught runn- ing operations against LaRouche. Spy-novel author Semyonov was the first to initiate the new vogue of the Russian-KGB "James Bond" aura, with popular films and TV series made of his books, as part of the current Stalinist revival in the Soviet Union. Ernst Henry, now over 80 years old, is also known to Western intelligence sources under his real name, Semyonov Rostovsky, and has been identified by British press as the "spy-master of the Philby circle" He began his "anti- fascist" capers in the 1930s, operating as "Anatolii Grimov;" primarily in Austria and Germany. In 1940, he was assigned to the Soviet embassy in London, and then moved to the U.S. to assume direct control of Soviet spy Donald Maclean. Returning to Moscow in 1951, the same year Maclean defected, Ernst Henry is still active today. One of his more recent opera- tions was to "expose;' in an article in Sovietskaya Rossiya in May 1981 - one week before the assassination attempt on John Paul II - how the CIA controls the Turkish Grey Wolves. The official VVN publication, Die Tat, is the same that KGB disinformer Vitalii Petrusenko quoted as his "independent Western source" for the claim that in 1976, "the CIA annually provided New Solidarity with $90,000 and that about 80 percent of its staff were CIA and FBI people" Thus another piece has been located in the puzzle of the KGB's disinfor- mation apparatus, deployed for years against LaRouche. Here the story of Svenska Dagbladet is resumed. As pointed out above, Richard Aschberg, the grandson of the Soviet's "Red banker;" together with police "leak" Sune Olsson, were the ones to fire the March 18 opening salvo against the ELP with a front-page article in Sven- ska Dagbladet. Repeated attacks on the ELP by Willy Silberstein, and Silberstein's connections to Hans Lindquist and the Swedish ADL, have EIR Special Report 31 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The case of Leo M. Muller been identified. It should be noted here that one of Silberstein's best friends is the communist journalist Folke Schemanski, from the radio pro- gram "OBS Kulturkvarten;" in which the ELP was attacked in the spring of 1984. Schemanski's sister Vera Oredsson leads the Swedish Nazi party, Nordiska Rikspartiet. On March 19, the day Gunnarsson was released, Svenska Dagbladet went on inventing lies that would make Goebbels blush, claiming that Gun- narsson was in the ELP already in the mid-1970s. Svenska Dagbladet also quoted the Soviet-contaminated U.S. Heritage Foundation saying that ELP supporters in the U.S. receive "terrorist training" Despite the fact, that the release of Gunnarsson deprived the media of their number-one card against the ELP, Svenska Dagbladet, the house organ of the Swedish oligarchy, continued its lying. On April 2, the paper carried an "insight" column, entitled "A Sect with Obscure Branches;" written by editorialist Fredrik Braconier, which is nothing short of a clarion call for banning the Swedish ELP organization. Braconier whined about "the ELP's sick and frightening campaigns against various people. Add to that the ELP's obviously rather intensive information-gathering on an international basis. In a number of instances, their information has been transmitted to intelligence services and govern- ment authorities'." "Can such activities be considered generally acceptable? The public ac- tivities of the ELP has long passed the limits of decency. They react menac- ingly toward those who investigate their activity. It is not reasonable that this sect, with its international branch and obscure aims, unchecked and undisturbed be able to gather data in Sweden about conditions in the coun- try and concerning private individuals" After the international press campaign targetting the ELP, with the Swedish press, and Svenska Dagbladet in particular, trying to outdo Goeb- bels in lies and forgery, complaints about the "unchecked" and "undisturb- ed" activity of the ELP reveals, indeed, an intense fear of the ELP - a fear verging on schizophrenic paranoia. As one might have expected, this oligarchical phobia of the ELP led Svenska Dagbladet to make some serious mistakes, which exposed the pawprints of the KGB Disinformation Department. And, by now, these pawprints should be quite familiar to the reader. On Aug. 5 and 6, 1986, Svenska Dagbladet gave prominent coverage to the lies of the New Jersey organized-crime-linked bank, First Fidelity, claiming that "organizations associated with Lyndon LaRouche" had "defrauded the bank of $750,000'." That same day, the same lies were refer- red to by Tageszeitung, the pro-terrorist Berlin-based paper. On Aug. 7, Svenska Dagbladet carried a large "scoop;" claiming to have discovered the "secret headquarters" of the European Labor Party in Germany, with a large photograph and a description of the home of the manager of EIR magazine's German bureau, Anno Hellenbroich. What was actually behind these new attacks by Svenska Dagbladet? The New Jersey First Fidelity bank had been denounced by EIR and exposed in a local court for its drug-related money laundering practices and organized-crime connections - including connections to leading ADL per- sonalities. A countersuit launched by the bank against "organizations associated with LaRouche" was a desperate attempt by First Fidelity's cor- rupt management to avert a prison term. Svenska Dagbladet had obviously decided to side with the mob bank against LaRouche! The Svenska Dagbladet article of Aug. 7 is even more interesting. The author, a Svenska Dagbladet correspondent in West Germany, Tomas Lun- din, writes that EIR knew "exactly who my informant is: name, address, profession, etc. Information that in fact should have been impossible to ob- tain" What was the real story? Lundin had approached and photographed Hellenbroich's home in late March 1986, in the midst of the KGB media barrage against the ELP and LaRouche. Lundin was accompanied by a cer- EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 During the KGB disinformation campaign, "conservative" Svenska Dagbtadet correspondent Tomas Lundin (above) appeared with extreme leftist journalist Leo M. Muller at the home of the EIR's German manager. Reality starts to surface tain Leo M. Muller, a Wiesbaden-based operative, for years a figure well- known to EIR. A "journalist" of the extreme left, Muller is a full-time LaRouche "wat- cher," both in the U.S. and in West Germany. He is closely connected to journalists at Tageszeitung. Muller also writes for the Vienna-based Moderne Zeiten (MOZ) publication, which is officially financed by the Li- byan regime of Muammar Qaddafi. Representatives of the Libyan Bureau (embassy) in Vienna are in the MOZ editorial board, together with representatives of the Nazi-Communist "Marxist Revolutionary League" of the Greek Michael "Pablo" Raptis, the same "Pablo" who, together with Andreas Papandreou, founded in 1934 the "Trotskyist International" in Greece, and who today plays the role of secret "adviser" to the Papan- dreou government. Pablo's organization has been attacking the EIR both in France and West Germany. In his "anti-LaRouche" project, Muller currently works with Tageszeitung collaborator Helmut Lorscheid, a journalist working for various left-wing radical publications. Lorscheid, an organizer of "anti- imperialist" meetings, has also been referred to by Ayatollah Khomeini's official press agency IRNA in Bonn. Muller maintains regular contacts with ADL operative Dennis King in the U.S., while Lorscheid maintains contacts with Klaus-Henning Rosen, Willy Brandt's personal assistant. Rosen maintains a continous exchange of information on LaRouche, and coordinates operations against LaRouche with the ADL's Irwin Suall. Rosen is also in close contact with the VVN group in Frankfurt. Looking closely into these attacks against the ELP by the "conservative" Svenska Dagbtadet, one finds - once again - the same old networks: the pro-terrorist Tageszeitung, the Iranian and Libyan regimes, the VVN and its Soviet and DDR intelligence controllers, the left wing of the Socialist International and the drug-related ADL. On March 4, 1986, LaRouche wrote a memorandum entitled "Journalists' procedures for investigating the killing of Prime Minister Olof Palme: in- vestigative hypotheses" [See page 9.]. In the memorandum, LaRouche for- mulated a methodological approach to the question of who killed Palme, as well as to the "international coverage of the killing, by news media, governmental agencies, and other relevant agencies!' While LaRouche iden- tified a broad spectrum of possibilities regarding the motivation of the assassination, he emphasized the connection between the Soviet KGB and certain Western finance-rentier interests as the most probable "agency" which carried out the murder. This memorandum was widely circulated by the EIR's offices among journalists and others concerned, both in Sweden and internationally. This EIR Special Report provides another, more extensive documentation of the policy and methodological outline issued in the memorandum of March 4 and, subsequently, in several press releases and articles. As a result of the hard-nosed fight put up by the Swedish ELP and by the EIR - against the KGB disinformation campaign which was aimed at destroying them - some pieces of reality have begun to surface in various Western governmental and intelligence circles, as well as in a few media outlets. According to reliable intelligence sources, some Swedish politicians and honest policemen have, since the time Palme was murdered, shared the EIR's suspicions concerning a KGB involvement. Such suspicions have also been strong among groups of patriotic officers in the Swedish Armed Forces. However, the general hysteria and the emotional manipulation of the murder by the KGB and its Western assets, put these forces on the defensive. One exception to this was the article published on June 8 in Dagens Nyheter, by Swedish Navy Commander Hans von Hofsten, who in a rather implicit, yet obvious manner made the connection between the Palme murder and Soviet pre-war operations [See Chapter II, Section 1.]. EIR Special Report 33 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The Polish art salesmen On Aug. 31, the British Sunday Express asked the relevant question concerning the Palme murder. On March 19, 1986, the French regional paper L'Est Eclair, carried a large article entitled, "But Who Killed Olof Palme?;" by author Jean Grand- mougin. Reflecting information from reliable intelligence sources, L'Est Eclair gave first a correct description of the KGB control over Mid East and Islamic terrorist networks, concluding with the following remarks: "The Swedish secret services picked up some tourists last year selling cheap paintings which, although made in Hong Kong, carried Polish labels. [The tourists] caught in the net, carried with them 66 maps with locations of airports, new roads, bridges, and appropriate places for parachute drops. The [Swedish] Defense Minister wanted to know more. He made a poll of all Swedish Air Force pilots to see if they were visited by these art salesmen. Some one hundred answered positively. In one region alone, over 60 percent of the pilots had been approached. These Polish people drove used cars with Swedish license plates. While they were presenting themselves as art students, it became clear that some of them were engineers, architects and nuclear experts. Were they on assign- ment to draw the maps of the military targets which were to be neutralized during, or immediately prior, to a military conflict? The hypothesis has been raised, that they were special com- mandos, of the Soviet `Spetsnaz' types. It is no longer a secret, that submarines have regularly violated Swedish territorial waters. Two years ago, something resembling mini-submarine tracks were discovered on the sea bed not far from Stockholm. Perhaps these are indications of the frame of the investigation into the murder of Olof Palme'.' At the end of March, the conservative French paper Present refuted the grand disinformation campaign, by stating that the ELP cannot be classified as "extreme right-wing;' and reporting, at the same time, that "Western intelligence circles" believe that the Soviets are likely to be behind the Palme murder. The May 1986 issue of the American Conservative Digest monthly ran extensive coverage of the Soviet Spetsnaz special com- mandos, in which author William P. Hoar stated that "heavy speculation has also arisen about Spetsnaz involvement in the recent murder of Swedish Prime Minister Olof Palme'" The same hypothesis was raised by the British Sunday Express of August 31, 1986, which ran a large article under the title: "Did the KGB Murder Olof Palme?" The Sunday Express stated that "intelligences sources say that Sweden has long been the playground of the KGB;" something which EIR documents extensively in this Special Report. Sunday Express also wrote, that some people in the Swedish police "say they are investigating the possibility of the killer being a KGB heavy sent to end Palme's interference" with Moscow's designs, a statement which ob- viously does not originate from the task force led by Holmer, who has done everything to promote the KGB disinformation campaign. The Sunday Ex- press article reflects, according to reliable sources, the thinking of certain NATO intelligence circles, who some weeks previously had noted the curious fact that Holmer's task force had come up with absolutely nothing after six months of investigation. While these are rare denunciations of the possible KGB role in the murder of Palme, they nonetheless break the overall conformity of the Soviet disinformation campaign in the West, and make the EIR's revela- tions less of an isolated and unique case. This Special Report hopes to ac- celerate the investigation into the Soviet involvement in the Palme assassination, providing a more detailed analysis and an in-depth historical overview, so that the courage might be found to track and punish the murderers of the Swedish prime minister. EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The Kurdish Workers' Party PKK: a branch of "Soviet Murder, Inc.?" Stn 19 ,,., 198t 1a to ttdlg.rl that, IOC-I.0?fen teat JC.LLM till S.erIN Oct tbtte Dolllltl iiyt :7, tytkt US ci,il lit r.. 9.- .tt 2nt tins nt[ nMne flak . Anil H, kung 11 nit nMne! p.. 1,u N ll.n -it Ott .I1i n ill to 0l pint S?9t> Ir I?an fbr rO.. 1rit.t.n t1 f51119N Dtgt ndq.r.rter till tir, 1 l ttl, tart is uktfr eede'uu~ln. itt d,, n'RMInGnl ii. vat( ..lots unktbr. let Ibrtu rteget I pl.... IYCkidet..uttnn tick tlllttlld it, t n nq D4.na .bN.O?t eeml l.n SCU1u . I S. MI... . nI,A c,n , SAAAII%lui'GCLLINIn~i91:1 'p119pref tit l.r at'S~"dg oc"ln/bnu lol 1Ster Al of 111eI. -11g, .n r 91 I f pal gpe`Inn Ifni Atli utgar Aimee M flat,' till Orggnlgltlone. Sit. ore. .0511. t.M.r rqY Int? tit n.i'de not ocn trbng fbr it Sul ni~wtpellslrQ-1; t eta peat plr[nr?w1i1 'IOn?r till )rau0. oDtl11 OM t0; unlnION ...kind frlnl Ala t o ,r Artlten0?iI'ffl. flYgd:d W. , t, raet a ?nd e?tbe.rmcci l ei` -1-t C.11 I tton". to .Art stuns Dinft e., ttgrpdes tall,,. b-b Itl.,,Mr.Nn, .tikl n0 .11d Ott .0tel Nr Stet till tug e? ?tal.a ol.an. ingrl Nrn? ..rn.a , sin, Iq.t 0fl Art an Or Gt. It n. dgt ee0 de Ibc ,ing.r Ott 907 n qt - In a secret memo of Sept. 17, 1984, the Swedish Security Police (SAPO) warned the government of PKK "plans of reprisals against Sweden and first of all against Prime Minister Olof Palmer' Among several possible instruments for carrying out the murder of Olof Palme, the international terrorist organization of the so-called Kurdish Workers' Party (PKK) represents a main track in any serious investigation. The PKK had a stated motive for killing Palme, the PKK had already carried out political assassinations in Sweden and elsewhere, and the PKK operates out of its secret headquarters in Damascus, Syria, a known hotbed of Soviet-intelligence-run ir- regular warfare against the West. Although the Swedish Security Police (SAPO) immediately pointed to the PKK as a possible suspect for the murder, the leaders of the investigation under Stockholm Police Chief Hans Holmer were so busy attempting to tie the 33-year-old suspect to the crime, that they had little interest in SAPO's leads. When a group finally was formed to investigate the PKK, it was drawn from police forces other than SAPO, disregarding the expertise accumulated during years of SAPO surveillance of the PKK. According to police sources, Holmer's group, rather than walking across the corridor to obtain SAPO's swelling PKK dossier, requested all information about the PKK from the West German Federal Criminal Police (BKA) - which, in turn, replied that all PKK information in the BKAs possession came from the SAPO! It was only after months had been wasted in fruitless efforts to pin the blame on Palme's domestic political opponents, that a more serious in- vestigation of the PKK's role got off the ground, now under the aegis of SAPO. The PKK has about 30 activists in Sweden, organized in the so-called Democratic National Association of Kurdistan and the Swedish-Kurdish Cultural Association, both of which front organizations since 1983 have been funded in part by Swedish tax payers. The PKK's book cafe is located three blocks away from the scene of the Palme murder, along the presumed flight route of the killer. One day after the murder, the Swedish daily Expressen received a phone call from a man who said, in broken Swedish, "Long live PKK! Long live Kurdistan! We have murdered Palme. Long live Kurdistan" Among the material seized dur- ing police raids of PKK homes and offices after the murder, a note was found mentioning a "wedding" and the name of Palme. "Wedding" is considered a code word often used for murders. The PKK has been subject to SAPO surveillance since at least the early 1980s, when the PKK was planning to set up its headquarters in Sweden. In a secret memorandum to the Swedish government, the SAPO warned of planned PKK "reprisals against Sweden and first of all against Prime Minister Olof Palmer' because the PKK's leader, Abdullah Ocalan, who is the Secretary General of the PKK's secret Central Committee in Damascus, was refused entry into Sweden. In the Sept. 17, 1984 memorandum, the SAPO stated: "On March 19, 1981, the PKK leader already mentioned, Kesire Ocalan [Abdullah's wife - edit.], arrived in Sweden and applied for political asylum. The idea seems to have been that by first sending her here, the PKK would also be able to get her husband Abdullah Ocalan here later, who, as already mentioned, is the leader of the PKK. The purpose may have been to transfer the PKK headquarters to Sweden. "Kesire Ocalan confirmed when interrogated by SAPO, that the PKK in Turkey has been in touch with ASALA [Armenian Secret Army for the Liberation of Armenia - edit.], but that these connections have been of a local nature. "The first phase of the plan succeeded. The wife obtained a resident permit. But Abdullah Ocalan was refused entry into Sweden. Because of the refused entry, Abdullah Ocalan reportedly has plans of reprisals against Sweden and first of all against Prime Minister Olof Palme. In PKK circles, Sweden is considered to be on a fascist leash, and therefore is an enemy of the organization" After Abdullah Ocalan was refused entry in March 1984, his wife Kesire left Sweden. On June 20, 1984, Enver Ata was shot in the back - just like Palme - EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 in Uppsala by Zulkuf Kilinc, and on Nov. 2, 1985 Cetin Gungor was shot in the back at a Kurdish meeting in Stockholm, by Nori Candemir. Both Ata and Gungor were former leading PKK members, who had dropped out. The PKK paper Serxwebun, the address of which is a Cologne post office box, took credit for the murders, writing that both were "traitors punished by the PKK's patriots" Other murders were carried out in Denmark and West Germany. The two killers were PKK agents deployed to Sweden for the job, but were caught by SAPO, tried, and given life-long prison sentences - in the case of Candemir on Feb. 26, 1986, two days before the Palme murder. In December 1984, the Swedish government declared eight Kurds to be PKK terrorists, who were not allowed to travel outside their home municipalities without special permission, and who had to report to police three times each week. In May 1985, Istanbul lawyer Huseyin Yildirim, public spokesman for the PKK in Sweden, was arrested by SAPO and interrogated for 11 days. His passport was seized and held until December 1985, after which he left the country. In August 1985, Yildirim told the Swedish daily Svenska Dagbladet: "I don't think the situation for the PKK in Sweden can be characterized simply as one where the SAPO is deceiving the government. We are begin- ning to believe that the Swedish government has decided to fight against the liberation of Kurdestan and PKK. It seems like Sweden has declared war against Kurdestan. (...) "Sweden has to remove the hallmark of terrorism from the PKK. We do not tolerate that Swedish authorities are fighting Kurdestan with lies. Our patience will last another two months. Then we will consider Sweden an enemy. (...) "The SAPO is preventing me from freely speaking and promoting my views in Europe. Thereby Sweden is running errands for the Turkish fascist military junta" The Swedish embassy in Ankara, Turkey, had obtained the statutes of the PKK and other documents seized by Turkish police in raids against the PKK. The documents show that the PKK indeed executes traitors and defectors, how the PKK is organized according to "Marxist-Leninist" principles, and who sits on the PKK's secret Central Committee in Damascus. In January 1985, a public announcement in Athens had received little publici- ty, as the "Turkish Liberation Front" was created. In fact, it should have been called the "Kurdish Liberation Front,' since the activities of the PKK were merg- ed with those of the so-called Patriotic Union of Kurdistan of Jalal Talabani. The new front joined forces with the Palestinian Front for the Liberation of Palestine (PFLP) of George Habash and with the ASALA. A Kurdo-Armenian alliance against the Turks is not the most obvious political development, as Kurds were in the vanguard of the World War I attacks against Armenian com- munities. What made it possible, was the joint so-called "Marxist-Leninist" ideology, as well as the common paymaster: the Soviet Union. Through the PKK headquarters in Damascus, a relationship with Habash and the ASALA had already been developing for years. As a result, these groups have been largely merged, and nobody can tell whether ASALA actions were not in fact perpetrated by Kurds, or vice versa. As documented in the case of the drug-running ASALA "Shoemaker ring" of George Makhlouf, which was blown in Sweden in 1981, old antagonisms can be easily overcome, when it comes to arms or drug smuggling operations where political ideology per se is overruled. Not accidentally, George Makhlouf's first cousin, Anita Makhlouf, is the wife of Syrian President Hafez al Assad. Kur- dish extremists, their Armenian counterparts, and many others, have one com- mon base: Damascus. 36 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The Swedish police vendetta against the ELP Stockholm Police Chief Hans Holmer. Computerizing a million pieces of "information" will not help tracking the authors of the murder, but may provide a cover under which to run dirty tricks against your political enemies. EIR Special Report An evaluation of the overall performance of Swedish security and police forces around and after the assassination of Olof Palme, and the successive creation of the mammoth task force under Stockholm Police Chief Hans Holmer, must begin with the question: why were Palme and his wife without protection, left exposed without even a discreet screening, that evening of Feb. 28, 1986? Several warnings of terrorist deployments in the Scandinavian countries had been received in the weeks before the murder. After the assassination, Italian Prime Minister Bettino Craxi stated, that the Italian secret services had received general information about a possible terrorist attack in Sweden, information which was passed on to Interpol. Furthermore, the beginning of 1986 was characterized by a massive escalation of terrorist deployments world-wide. So, the question remains: why was Palme left un- protected? The overall police reaction immediately following the murder was characterized by improvisation, mishaps, and sheer blunders [See Chapter II, Section 1.]. What developed afterward, generally, and particularly in regard to the Swedish ELP, can only be described as criminal behaviour by the leadership of Holmer's task force. According to reliable intelligence and police sources, both in Sweden and internationally, a secret faction fight developed among the investigators im- mediately after the murder on how to proceed: forces within military in- telligence, the counterespionage division of the Security Police (SAPO) and experienced police officers, all tended toward a broad investigative ap- proach, without excluding any possibility, including the highly probable in- volvement of the secret service of a hostile foreign power. Holmer's group, backed by the pro-Moscow Social Democratic Mafia- machine, instead imposed a strict, bureaucratic type of approach of collec- ting innumerable pieces of computerized information, rejecting any investigative hypothesis. This was combined with a total compartment- alization of the huge 300-person task force, with only a handful of people around Holmer centralizing the collection of information stored in the data base in Holmer's so-called "Palme Room" Traditionally in Sweden, the Stockholm police chief enjoys a significant national influence and power. With the creation of his task force, Holmer de facto usurped emergency powers of a kind heretofore unseen in parliamentary democracies, something that was soon to have catastrophic consequences. One of the results of Holmer's totalitarian control over the investigation was the capability of the task force to launch an illegal attempt aimed at politically destroying the Swedish European Labor Party (ELP). Since the beginning of the investigation, forces within Holmer's task force have systematically tried to facilitate a "character assassination" of the ELP, through a series of deliberate police leaks and conscious disinformation. Worse, this illegal campaign against the ELP endangered the lives of ELP members, as well as encroaching upon the party's constitutional right to conduct political campaigns. As already documented, immediately after the murder, persons within Holmer's task force prompted a network of trusted journalists to slander and defame the ELP as "implicated" in the murder of Palme. And like the KGB disinformation campaign against the ELP and Lyndon H. LaRouche, Jr., this continous attempt by Holmer's group to implicate the ELP cannot Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 be explained in terms of professional incompetence or a politically-biased investigation per se, but only in terms of a deliberate cover-up for the real murderers of Palme. The ELP, its leadership, candidates, and members have been known to Holmer and the police for years, given the high-profile political campaigns of the party in Sweden. Immediately after the arrest of Gunnarsson, the initial suspect, and the concoction of a "connection" to the ELP, task force spokesmen assured ELP representatives that the investigation was "not related to the ELP," and that there was no need for the ELP to cooperate in the police investigation in order to clarify the issue. A turning point for the KGB disinformation campaign came on March 19. That day, news began to circulate internationally that two LaRouche Democrats had won the Democratic Party primary election in the state of Illinois, for the important positions of Secretary of State and Lieutenant Governor. On that same day, Gunnarsson was released, as the circumstan- tial evidence put together by Holmer did not even suffice to keep Gun- narsson in custody. While the massive media campaign against the ELP and LaRouche by and large receded after March 19, the overall operation was continued by the Soviets, through isolated media outlets, and Holmer's task force. In fact, the task force's harassment of the ELP did not abate, as one would have expected, but accelerated. On March 19, the task force seized all the 1,800 membership registration forms deposited by the ELP at the National Tax Authority's Electoral Of- fice, forms which were filed for the ELP's registration as a national party before the September 1985 election. Again, the news about the seizure of the membership forms was leaked to the press, in support of the fraudulent theses that the ELP was "still under suspicion;" or even the variation that the police investigation "now begin to penetrate deeper into the examina- tion of the ELP?' From then until the month of August, task force officers began to ques- tion ELP leaders, members, candidates and political and financial sup- porters, as well as former members and business clients. As this informal type of questioning went on, it became clearer and clearer, that it had nothing to do with looking for the murderers of Palme, but was simply political harassment. Holmer was exploiting the opportunity of his emergency powers in the attempt to destroy a political opponent. When ELP spokesman Michael Ericson requested a meeting with the police leadership, in order to protest this illegal police behaviour, and to of- fer at the same time the ELP's full cooperation to clarify any real issue, the behaviour of the task force representatives began to resemble that of their colleagues in communist countries. In response to Ericson's remarks, and the request for security cooperation by the police, in view of the numerous threats the party was receiving at that time, Ericson was asked for his alibi on the night of Feb. 28, under the pretext that the police had "received anonymous hints" indicating that Ericson himself could be the murderer. Days later, when another ELP member was questioned, allegedly to "check Ericson's alibi;" that issue was not raised at all by the two inter- rogators. Concerning the security of the ELP office and members, high- level representatives of the task force told Ericson shamelessly, "Do you think, that if we did not succeed in protecting our prime minister, we are going to protect you?!" In a private conversation, made available to EIR, with the foremost "ELP watcher" in Sweden, Hans Lindquist [See previous section.], Lind- quist stated that he had talked to various leaders in the task force, and that Holmer was not particularly interested in Gunnarsson, but only in Gun- narsson's relation to the ELP. In another private conversation, the spokesman of the police task force, Leif Hallberg, referred journalists to Lindquist as a "very reliable" source on the ELP: "Yes, very reliable ... my personal opinon is that he is very reliable. He is a specialist on neo- Nazis(!)'" 38 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Who is Hans Holmer? While the police fishing expedition and slanders against ELP members and contacts continued, new political operations were launched against the ELP and its clients. Russian-connected interests blackmailed the printer of Ny Solidaritet, the Swedish weekly associated with the ELP, which led to the termination of the printing contract. Pressure was exercized on the house owner of the ELP's office, and financial pressure and extortion tac- tics were applied against party contributors. Inquisition-like levels were reached on May 23, when a classical concert with two renowned French musicians, organized for May 27 by the Academy of Humanist Studies, was cancelled by the Royal Armoury of the Stockholm Royal Palace, in which the concert was to take place. The Royal Armoury had been ordered by the Security Police that "the concert must not take place, because the Academy is politically connected to the ELP" A jurist by profession, Holmer's assignment by the Social Democratic Mafia apparatus has been to restructure and exert centralized control of the security and police forces in Sweden. He was the head of SAPO in 1970-76, during which period Swedish secret services where shattered by a "reorganization',' which became known as the "IB Affair" A scandal er- rupted when it was revealed that a secret intelligence service had been created, in parallel to the official intelligence services, called the "Informa- tion Bureau'." The ensuing, across-the-board transformation of this secret apparatus - ironically nicknamed SAPO, from the names of SAPO and the Social Democratic Party (SAP) - epitomized the political reorganization that swept the Swedish secret services as a whole, purging circles regarded too "right-wing:' "pro-Western:' or "anti-Soviet" [See also Chapter II, Section 3.]. Holmer's role as SAPO head was to streamline the secret services under top-down political control. In parallel to Holmer's efforts, Pierre Schori - whose career was outlined in the previous chapter - emerged into pro- minence within the SAPO. In 1976, Holmer was removed from SAPO, to become the Chief of Police of Stockholm. Repeatedly, Holmer devoted his time to studying the drug problem, authoring a booklet published in 1981 by the Social Democratic publishing house Tiden. In the booklet, Holmer wrote, "Nowhere is there any evidence of any mystical managers hiding in the bush or any unknown (sic!) mafia leaders'" In 1982-83, Holmer presided over a government-appointed narcotics commission, whose primary accomplishment was watering down previous proposals issued but not yet implemented. More recently, Holmer dismantled the famous narcotics police in the Stockholm suburb of Hud- dinge - which the media termed the "most successful narcotics in- vestigators in Northern Europe'." After breaking up a succession of notorious drug bands in 1977-81, culminating in the dismantling of George Makhlouf's ASALA "Shoemaker ring," the Huddinge narcotics in- vestigators were reassigned to Holmer's Stockholm Police Department, where their efforts were dispersed and ran up against a wall of bureaucracy and inefficiency. In two earlier cases, Holmer had manifested strong hostility directly toward the ELP and its ideas. The first case, in 1981, was when Holmer personally intervened to sabotage a visit to Stockholm by LaRouche, by denying him any security protection. Information available to Western European intelligence services - and, if he so wished, to Holmer - proved that LaRouche was on the hit list of the RAF terror band and other terrorists. LaRouche had also become a target of increasing public attacks by the Soviets. Despite this, and contrary to the stated evaluation of sources at the SAPO, Holmer said, that he did not consider LaRouche's life endangered. LaRouche had been invited to address business conferences in Stockholm and Gothenburg, but could only attend the latter one, where security cooperation was offered by Gothenburg police. EIR Special Report 39 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 National Police Chief Holger Romander backed Arlanda Airport Police Chief SmedjegArden, under attack for lax security. Then he denounced the SAPO for "leaking" about Czech spies who worked for the KGB in Sweden. The second case involved a scandal exposed by the ELP regarding Holmer's friend, Police Chief Sven Hugo Smedjegarden at the Arlanda In- ternational Airport outside Stockholm. On May 9, 1984, Smedjegarden ar- bitrarily banned the sales of Executive Intelligence Review magazine at the airport. According to Swedish law, the airport area is a "public place;" and anybody has the right to sell a publication. With the support of his party friend Holmer, Smedjegarden circumvented the law, claiming, that EIR distributors at the airport were creating obstacles for traffic in the area. Afterwards, this Social Democratic mafia succeeded in changing the "public place" status of the Arlanda Airport! This political move by Smedjegarden, supported by Holmer, did not restrict itself to preventing the sales of EIR. It also had broader security implications. In case of war or emergency, the administration of the Arlan- da Airport would fall under the jurisdiction of the police chief, i.e., Smed- jegarden. According to competent military evaluations, Arlanda Airport is considered a prime target in the Soviet war plan for Europe. Smedjegarden was appointed to his position in 1976, assisted since 1977 by his deputy, Stig Bergling. The latter since 1979 serves a life-long sentence in a Swedish maximum security prison for espionage on behalf of the Soviet military intelligence service, GRU. In the same period, the Stockholm criminal police were investigating a smuggling ring centered around the Scandinavian Airlines System (SAS) Catering Service at Arlanda. The smuggling ring was blown and 20 employees of SAS Catering arrested. When Criminal Inspector Gt ran Holmberg, in charge of investigating the ring, issued an official complaint about Arlanda's lax security measures, the airport administration pressed a counter-complaint against Holmberg with National Police Chief Holger Romander. Instead of investigating those responsible for the lax security, particularly Smedjegarden, Romander began a "corruption investigation;" denying Holmberg access to Arlanda. Furthermore, EIR discovered that Smedjegarden had received "favors" in the form of all-expenses-paid tours to East Bloc country airports, disguised as "study trips" to evaluate their "security measures" The Customs Service had also been invited to participate in such trips, but - in contrast to Smedjegarden - had persistently refused. In the same period, EIR was informed by police officers, who were upset over the behaviour of Romander, Holmer and Smedjegarden, that at the time the latter had a relationship with one Anita Berg, a Russian hostess working at the Arlanda office of the Russian airline Aeroflot. Such blatant, Mafia-style political interference in police investigations has surfaced, even more dramatically, in the investigation of the Palme murder. As documented in this Special Report [See Chapter II, Section 1.], Holmer's totalitarian-state practices led to the resignation, on May 16, of Chief Prosecutor K.G. Svensson, who was in charge of the investigation of the initial suspect, Gunnarsson. The Social Democratic government and party Mafia illegally interfered with the investigation, backing up Holmer against Svensson. Holmer's methods in trying to incriminate Gunnarsson and the ELP, as shown by the documentation made public by Svensson, were practices more familiar to the Soviet system than to any Western country. On May 11, the vice chair- man of the parliament's Constitutional Committee, Anders Bjorck, had announced that Justice Minister Sten Wickbom would be questioned by the committee regarding the government's interference with the murder in- vestigation. While the government used Soviet methods to back up the practices of Holmer, a related scandal emerged on April 30 concerning the expulsion of five Czech spies from Sweden. According to Western intelligence sources, the bust of the Czech spy ring was a joint operation by Western and Swedish counterespionage officers in order to counter the Soviet KGB disinformation campaign around the Palme investigation. Swedish papers were leaked the information that the Czech spy ring had been collecting information for the Soviets - which was obvious for two EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 reasons: first, the traditional hierarchical dependence of Czech intelligence on the Russian KGB; and, second, the ironical fact that the Czech spies were primarily concerned with naval secrets - of little direct concern for land-locked Czechoslovakia! In spite of this, Social Democratic police and government spokesmen, like Romander, Foreign Minister Sten Andersson and Undersecretary Schori denied that the Czech spies were working for a "third power,' i.e., the KGB. Both Andersson and Romander denounced the SAPO for the press leaks. Similar to an East Bloc satellite country, high-level government officials not only disregarded the truth in order not to offend the Soviet govern- ment, but had lost a minimal sense of irony. While no-one protested the police leaks aimed at destroying a registered national party during the Palme murder investigation, immediate protests were made to save the KGB from exposure of its involvement in espionage activity against Sweden. One cannot but wonder at Swedish political life, when Schori - as documented in the previous section - demands a police raid on the ELP's offices, in collaboration with Russian officials and with Henry Kissinger, and in the same breath protests SAPO leaks on the Czech-KGB spy ring. In the beginning of September, infighting among Sweden's police and security forces grew more intense. SAPO let it be known - as reported by Swedish press, the French news agency AFP, the German daily Die Welt, the Italian Corriere della Sera, and others - that they are still investigating "the possible motives of several individual policemen to take part in a plot against Palme" Interestingly, the investigation was initiated within SAPO by the head of its counterespionage division, Per-Goran Ndss, who led the investigation which put Smedjegarden's deputy, GRU spy Bergling behind bars. One question of dramatic portent is, why did the anti-terror division of SAPO not raise this issue, but rather the counterespionage division? Why was Palme unprotected? Olof Palme was shot in the back in the evening of Feb. 28, 1986, by a killer who could run away unscathed in central Stockholm. Palme had no bodyguards, ostensibly because he had sent them away, as he wanted to enjoy his privacy this evening. Since 1982, such laxity regarding vital security matters has been out of question even in Sweden concerning, e.g., the Commander-in-Chief of Sweden's Armed Forces, General Len- nart Ljung. In 1982, the Swedish Security Police (SAPO) met with the Defense Staff's Security Service (FST Siik) to reassess the growing danger to the lives of prominent Swedish figures. The threats evaluated by the two security services, according to the Swedish press, included everything from the mysterious Polish art salesmen, who were mapping the housing areas and habits of Swedish Air Force pilots, to the most recent and refined foreign intelligence activity conducted against Swedish targets. The evidence for consideration included so-called "hit lists" of leading politicians and military officers to be executed under conditions of aggravated crisis. One year later, more knowledge had accumulated about the Soviet diversionary units, "Spetsnaz;" and the Commander-in- Chief initiated a special investigation into the threat against Sweden. The submarine incursions formed part of the picture. One result of these deliberations was that Sweden's Commander-in- Chief - who in the late 1970s still took the subway to the Defense Staff's central Stockholm headquarters - does no longer stroll alone along the streets of Stockholm. Why was the prime minister still permit- ted to do so? EIR Special Report 41 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Boris Pankin, To Ethnos, and Control Data Andreas Papandreou, now Greek Premier, was brought to power in 1981 with the aid of To Ethnos, a KGB disinformation paper. The story of To Ethnos The Soviet penetration of Greece in the 1970s is an exemplary case of the KGB's disinformation operations, coordinated, in this case, by KGB Col- onel Vassily Sitnikov. Since 1973, Sitnikov's cover was that of deputy direc- tor of the Soviet Copyright Agency (VAAP), whose 1973-82 director was current ambassador to Sweden, Boris Pankin. In reality, both Pankin and Sitnikov were leading officers in the KGB Disinformation Department. Between April 1975 and October 1977, Sitnikov, on behalf of Pankin, at- tempted to establish an ambitious publishing partnership with Greek publishing tycoon, Christos Lambrakis. The effort ended in failure for reasons unknown. After this, Sitnikov moved to transform an obscure, minor Greek businessman, Georgios Bobolas, into Greece's most influen- tial newspaper publisher. In June 1978, Bobolas and an associate of his, Yannis Yannikos, arrived in Moscow on the invitation of Sitnikov, and agreed to launch a daily newspaper in Greece with Soviet financial backing. Alexander Philip- popoulos, a Greek-American journalist, was the personal choice of An- dreas Papandreou for becoming the chief editor of the new paper, named To Ethnos (The Nation). That paper was then to ensure the election of Papandreou as Greek prime minister in October 1981. Reporting on this Moscow meeting, the German daily Die Welt wrote on May 2, 1984: "In 1978, both (Yannikos and Bobolas) travelled to Moscow, and acquired the rights to print the Soviet Encyclopedia in Greece... In these first talks, which were led on the Soviet side by Boris Pankin, then head of the KGB Disinformation Department, and currently Soviet ambassador to Stockholm, Konstantin Chernenko, the current Soviet party chief, also took part" Pankin appears to have visited Greece only once, in March 1980, when both the publishing and other business projects were completed. He was received by and spent most of his time with Soviet military intelligence Col- onel Yevgenii Chistiakov, who, a few months later, was caught leading an espionage ring at the Greek naval base at Salamis and expelled. During 1980, Chistiakov was the immediate superior of one Sergei Bokham, and was responsible for Bokham's intelligence network at the Royal Air Force base at Akrotiri on Cyprus. Bokham apparently defected to the West in March 1985. To Ethnos was first published in June 1981 and quickly became the most widely read daily in Greece, its daily paid circulation surpassing the com- bined sales of all twelve other competing Greek dailies. The first tabloid in Greece, To Ethnos was filled with color photographs, sports, fashion, comic strips, women's and children's pages, scandals, sex, and movie-star gossip. In September 1981, after having cornered the market, To Ethnos began introducing themes like "peace" and "disarmament;" in a manner tailored to its primarily middle-class readership. By the middle of 1982, the editorial policy of To Ethnos evolved into a most virulent form of anti-Americanism. Later, it limited its somewhat sparse political coverage mainly to reprints from TASS and Novosti, the two official Soviet news agencies. To Ethnos remains today the unchallenged arbiter of Papandreou-era Greek jour- nalism. EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 How the KGB pays... A brief look at some of the editorial staff of To Ethnos suffices to characterize this Soviet operation. Some of the political and intelligence connections visible here are typical of the Soviet KGB disinformation operations against the ELP and EIR founder Lyndon H. LaRouche, Jr.: ? Carl Aldo Marzani, U.S. correspondent for To Ethnos. Marzani is cur- rently a member of Michael Harrington's Democratic Socialists of America, a nest of Socialist International operations against LaRouche in the U.S, and, for a short period during the 1930s, a member of the Com- munist Party of the USA (CPUSA). He is a veteran of the Spanish Civil War, having served in the Abraham Lincoln Brigade. During World War II, he joined the Office of Strategic Services (OSS), the wartime predecessor of the CIA, with contacts to Richard Helms and Walt Rostow. Later on, this connection to the Eastern Establishment brought him to the State Department. Later, Marzani spent three years in jail for lying about his membership in the CPUSA. ? Stanley Harrison, British correspondent for To Ethnos. Until 1981, Har- rison was the chief assistant-editor of London's Morning Star, the daily of the British Communist Party. ? Akis Fantis, editor of Haravoi, the daily of the Cypriot Communist Party (AKEL). His father Andreas is the alternate secretary general of AKEL. ? Dino Tsakotellis, worked from 1947 to 1949 for Telepress, a communist news agency in Czechoslovakia. ? Vassos Nikolau, whose real name is Vassos Georgiou, a Greek Stalinist admirer of the Albanian communist regime. He also writes for Rizopastis, the Greek Communist Party (KKE) publication. ? Maria Beikou, works as the chief assistant to the publisher of To Ethnos. She was hired at the insistence of KKE leader Harilos Florakis. After fleeing Greece at the end of the civil war, she went to work for Radio Moscow. Boris Pankin financed To Ethnos by means of a series of loans from a dum- my corporation in Luxemburg called Gesellschaft fur die Forderung des Presse- and Verlagswesens (GFPV). The GFPV was founded in 1977, with an initial capital of 100,000 Luxemburg Francs, consisting of 10 shares of 10,000 Francs each, with 5 shares belonging to the Switzerland-based Orvag AG and 5 shares to the Sweden-based Svenska Vastfisk AB. In 1983, the GFPV had no employees, nor any listed bank account - it was a pure post office box operation. The Orvag AG, located in Baar, Switzerland (Zug Canton), owns 90 percent of the Svenska Vastfisk AB, located in Gothenburg. Svenska Vastfisk owns the West Berlin property which houses the printing plant of the communist Socialist Unity Party of West Berlin (SEW). According to an article in Die Welt of Feb. 11, 1984, Svenska Vastfisk AB turned up in a 1982 Soviet espionage case in Sweden. According to Die Welt, the capital of Svenska Vastfisk AB is in the hands of three board members: Hans Gunnar Heyman, Allan Kullberg, and Friedrich Karl Kaul. Heyman and Kullberg are members of the two com- munist parties in Sweden - APK and VPK, respectively - and Kaul was a top East German operative who died in 1981. As Die Welt accurately noted: "A dead shareholder can not possess share capital. That is not the only curious thing involved" Furthermore, Orvag AG and Svenska Vastfisk AB each have a 50 percent share in the GFPV, again a pure bookkeeping operation, given that Orvag controls 90 percent of Svenska Vastfisk. Die Welt also stated that, as early as 1982, reports were circulating that the key figure behind the Luxemburg GFPV firm was none other than Karl Raab, a veteran and high-level operative of the old Communist Party of Germany (KPD) - later the East German Socialist Unity Party (SED). In the 1920s, Raab worked for the Dresdner Bank and, in 1927, joined the KPD. While working at the bank, he published the KPD's local office paper, Rote Bilanz (Red Balance). EIR Special Report 43 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Computer technology After the war, Raab went to Berlin as a core member of the so-called "Ulbricht group;" associated with the post-war communist dictator of East Germany, Walter Ulbricht. Raab became the SED's treasurer and, from 1950, he was in charge of the SED Central Committee Finance Depart- ment. He officially retired in 1977 but, as Die Welt noted, "after his retire- ment, his contacts in the West in no way diminished" One of Raab's key Western contacts, in Switzerland, was the "foxy businessman;" former Ma- jor Albert Rees, the head of the Orvag AG, who in 1983 was listed in con- nection with 26 corporations. The East Berlin-based Kaul, a key East German intelligence operative, was a close associate of current dictator Erich Honecker, and has been in charge of negotiations with Western powers in spy-swapping deals. Kaul has also been involved in disinformation activities through his work in the film industry, a position that put him in close contact with the brother of East Germany's intelligence czar, Markus Wolff. A legal apprentice to Kaul was the terrorist RAF lawyer, Hans Christian Strobele, until recently a member of the West German Parliament for the Green Party. In 1982, because of his involvement with terrorism, Strobele was sentenced to 10 months of jail on probation by a West German court. The kind of "legal" training Strobele received from Kaul was highlighted in a declaration he made on Sept. 3, 1985. Commenting on the treachery of top West German counterintelligence official, Hans-Joachim Tiedge, who defected to the DDR, Strobele told the pro-terrorist Berlin daily, Tageszeitung: "First of all, for the Greens a spy is a human being, who helps to bring out or to shed light on state secrets. Given the fact that we [the Greens] are fundamentally against a state having secrets, we have a certain sympathy for spies" Strobele was one of the founders of Tageszeitung. Both he and the paper have been involved in operations against LaRouche in West Germany. The Luxemburg-based GFPV owns or controls the following companies: 1. Cooperative Ouvriere de Presse et d'Editions. 2. Jean Molitor et Cie., Societe Fiduciaire de Revision et d'Enterprises. 3. Harney and Jones, Ltd. in London. 4. Impredit - Paese Sera, the communist daily in Rome. 5. Bobtrade Ltd. in Athens and London. 6. Control Data Worldtech, Inc. in Delaware, USA, jointly with Control Data Corporation. The Soviet and East German controlled dummy companies, Orvag AG and the GFPV, together with the U.S. company, Control Data Corporation (CDC) of Minneapolis, Minnesota, have controlling shares in Control Data Worldtech. This Soviet intelligence connection to Western companies reveals not only a startling capability for technology espionage (so-called "technology transfer"), but also very significant political connections. CDC of Minneapolis first became interested in the U.S.S.R. as a poten- tial market in the latter half of 1966. The firm's first contacts with the Soviet Union were in 1967. CDC installed its first computer in the Soviet Union at the Joint Institute of Nuclear Research, Dubna, in 1968. This was a 1604A computer system, which several additions were later made to. Control Data entered an initial "framework" agreement in October 1973, and signed a Protocol Cooperation Agreement in February 1974. The Cooperation Agreement was signed by Control Data and the State Com- mittee for Science and Technology of the U.S.S.R. Council of Ministers. This State Committee has been a direct liaison office for both the KGB Disinformation Department, and for Soviet military intelligence GRU. It has been headed for many years by Dzhermen Gvishiani, the son-in-law of former Soviet prime minister and Politburo member, Aleksei Kosygin. According to Western intelligence sources, Gvishiani is a high GRU of- ficer, whose assignment includes re-establishing the old "Trust" connection with oligarchical financial and political interests in the West [See Chapter III, Section 2.]. Gvishiani, in coordination with Aurelio Peccei and Alex- EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The Armand Hammer connection ander King's Club of Rome and the British Labour Party's Lord Solly Zuckerman, has been key in establishing the Soviet espionage and "Trust" center in Vienna known as the International Institute for Applied Systems Analysis (IIASA). President Ronald Reagan broke off U.S. collaboration with the IIASA institute in 1982, after discovering its role in Soviet es- pionage. Gvishiani's State Committee for Science and Technology wanted CDC to build four manufacturing plants, a high-speed printer, terminals and a printed-circuit operation. Around the same period, October 1973, the vice president of Control Data, Hugh Donaghue, arrived in Moscow and had lunch with Leonid Brezhnev. Hugh Donaghue played an active role in June 1983, in the international peace conference in Minneapolis, Minnesota, sponsored by Georgii Arbatov's U.S.-Canada Institute and the U.S. pro- terrorist Institute for Policy Studies (IPS). As the EIR has documented, this conference, which tried to launch a West German style ecology and peace movement in the United States, con- centrating its attacks on President Reagan's Strategic Defense Initiative (SDI), represented a gathering of Soviet intelligence officers and American Eastern Establishment stooges, attempting to coordinate a campaign against LaRouche. The final Cooperation Agreement between CDC and the U.S.S.R. Slate Committee for Science and Technology called for an agreement extending for ten years. It proposed the following: "To conduct joint development of a technically advanced computer; joint development and organization of the produc- tion of computer peripheral equipment; joint creation of infor- mation processing systems, based on the technical means of Soviet production and on the technical means developed by CDC, and development of software means for these systems; to conduct research in the area of (advanced) software im- provement; joint development of Analog to Digital Equipment for control systems of technological processes; "Joint development of computer components, technical equipment for their production and the organization of pro- duction of these components. Development of computer memories (based on large volume removable magnetic disc packs, and on integrated circuitry, and so on). Creation of equipment and systems for data communication. Application of computers in the fields of medicine, education, meteorology, physics, and so on:" In September 1980, it was announced that CDC Worldtech would start two computer-related companies in Lulea, Sweden, as a result of an agree- ment signed with the Swedish ministry of industry in Stockholm. Further- more, it was announced in 1983 - and this must be considered extraordinary for a firm connected to the Soviet and East German in- telligence agencies - that CDC Worldtech had landed an agreement to market the technologies developed at one of the most sensitive U.S. military-related research centers, the Los Alamos National Laboratories. Such extraordinary events can only be "explained" in the light of the high- level connections involved. Until two years ago, the executive vice president, and then vice chairman, of the board of the CDC Worldtech was a certain Robert Schmidt. An official of the U.S. National Security Agency (NSA) from 1953-54, Schmidt was introduced into East-West business by oil ty- coon Armand Hammer, one of the key figures in the "Trust" since the time of Lenin, of whom Hammer was a good friend. As one source told EIR, it was Hammer who "opened the door to the Soviet Union" for Schmidt. Schmidt has been involved in the U.S.-U.S.S.R. Trade Council, the Rockfeller-family joint project with the Soviet Union otherwise known as the Dartmouth Conference, and so forth. Schmidt has also admitted that the CDC initially worked with Cyrus Eaton, Sr., the leading funder of Bertrand Russell's Pugwash Conference. FIR Special Report 45 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The Pugwash Conference, as EIR has documented in other locations, was part of the Soviet project - authorized by Nikita Khrushchev after Stalin's death - to relaunch the old "Trust" intelligence cooperation between Russia and Western oligarchical finance-rentier interests. Russell's Pugwash Conference, which began in the mid-1950s, provided the Soviets with: (1) scientific espionage capabilities against the West; (2) the possibility of launching various anti-Western disarmament proposals (the "Ban the Bomb" movement created by Russell, etc.); and (3) a general undermining of Western culture by introducing a Malthusian, zero-growth and rock-sex counterculture, leading in the late 1960s to the creation of the Club of Rome and, then, to the founding of various "ecological" and "peace" movements. Worldtech is also affiliated with Worldtech Ventures, Ltd., in which it holds stock. Worldtech Ventures works closely with the British government in seeking technology transfer to areas of high unemployment. Lord North- cliffe remains the chairman of Worldtech Ventures, Ltd. 46 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 II. The unlikely sequels of a political murder What really happend: a chronology of events Feb. 28 - Swedish Prime Minister Olof Palme is shot dead from behind, at close range, at about 11.21 p.m. by a killer who disappears running from the scene of the crime: Sveavagen, a main street in downtown Stockholm, at its intersection with Tunnelgatan, a narrow alley with a stairway. Palme and wife Lisbet were walking home from a visit to the cinema, without bodyguards. The killer fired two shots, the first killing Palme instantaneously, the se- cond lightly wounding Palme's wife, who turned around upon hearing the first shot. Five cars were passing by the intersection, one of which a taxi whose driver instantly alarmed the police by radio. Another witness, standing nearby, pursued the killer up the Tunnelgatan stairway, and then lost track of him. March 1 - Palme is officially declared dead at the Sabbatsberg Hospital, at 00.06 a.m. Sweden's national news agency TT releases its first wire on the murder at 00.20 a.m. The government meets for a crisis session during the night, led by Vice Premier Ingvar Carlsson, who gives a first press conference at about 05.00 a.m. Later that day Carlsson is nominated Acting Chairman of the Social- Democratic Party. Several leading persons at Sweden's national radio monopoly are awakened at home by phone calls from relatives abroad, who have learned about the murder via international news media. Swedish national radio's first broadcast of the murder, at 01.10 a.m., reaches the Defense Staff's officer on duty, and only later, Commander-in- Chief Lennart Ljung is reached by the news, upon returning home from a private dinner. He promptly goes to the Defense Staff's Command Center, from there national military alertness is checked, and increased for key staffs and units. Only at 02.15 a.m., a national police alert is issued, and even Stockholm local police patrols are still hunting drunks and petty criminals hours after the murder, unaware of what is happening. Some police officers, who were to go off duty, volunteer to remain, but are sent home. The exit roads out from Stockholm are not blocked. At about 02.45 a.m., the phones ring at the homes of four Swedish diplomats in Bonn. Embassy Secretary Peter Tejler is told in German by a male voice: "This is the RAF. We have murdered your prime minister'." One of the diplomats called has been at the embassy for just two weeks, his name and phone number are in no phone books or lists of diplomats. Another phone call is received in Stockholm, and recorded by an automatic answering machine. A male German voice claims the murder on behalf of the RAF's "Kommando Christian Klaar." The phone number at EIR Special Report 47 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Criticism of police failures which the call is received is identical to that of the West German Stockholm embassy, but for one single digit. Sweden's state-owned TV monopoly reports the murder at 04.00 a.m. King Carl Gustaf is reached only late in the morning, in his weekend cot- tage 500 kilometers northwest of Stockholm, which had a new phone number unknown to the relevant authorities. In the morning, Soviet KGB Chief Viktor Chebrikov announces Palme's murder from the podium of the ongoing 27th Communist Party Congress in Moscow. Stockholm Police Chief Hans Holmer holds his first press conference, 14 hours after the murder, after having been reached in Borlange, a small town 200 kilometers northwest of Stockholm. A passer-by finds a bullet across the street, 40 meters from where the killer fired, reportedly an unusal type of Winchester 357 Magnum metal- piercing bullet, copper-tipped, and able to penetrate a bullet-proof vest. One persistent query finds no answer: Why wasn't Palme given better protection, despite numerous warnings of an impending terrorist hit? March 2 - An Indian journalist finds a second bullet, presumed to be the one that killed Palme. Police say such ammunition cannot be bought in Sweden, and is not included among the 500 to 600 bullet-types in the collec- tion of the police. Highway police patrols in the United States are said to be using such ammunition. Neighbors of Palme testify regarding mysterious men seen outside Palme's house. March 3 - More criticism emerges of the slow police response immediate- ly after the murder. Journalists report lax border controls, e.g., to Norway. The scene of the murder was inadequately cordoned off, etc. A Stockholm weapons specialist reveals that the ammunition used was on sale in Sweden in the early 1970s. Others say it can still be bought in several locations. Vice Premier Carlsson is elected Acting Chairman of the Social- Democratic Party by the Party Executive, to be confirmed by the 1987 Party Congress. Carlsson announces that he expects to pay an early, official visit to Moscow, already planned by Palme. March 4 - Holmer says the murderer was in all probability a professional killer. He rejects criticism of the police, and says they have now received 4,000 tips from the public and conducted 600 interrogations. March 5 - Holmer reshuffles the leadership group directing the police in- vestigation. His task force now includes 300 men, doubled from the day before. One witness reports having seen a man following Palme in the subway. A 60-year-old artist reports to the police, that he saw a man entering a bus at about 11.30 p.m. on Feb. 28, a few blocks away from the scene of the murder. The man was out of breath and carried a small parcel. A few days later, the artist discovers that the man is a policeman, and when he informs Holmer, he is impatiently put off. March 6 - A "phantom picture" of the killer is published, produced with the help of a female witness. Another picture, already drawn by the female witness, who is a trained portrait painter, is not released by Holmer. March 10 - A 32-year-old man is picked up by police for extensive inter- rogation, but released again the following morning. Sweden and the Soviet Union resume negotiations about the demarca- tion of the fishery and economic exploitation zones in the Baltic Sea, negotiations that were broken off in 1982. March 12 - The 32-year-old man, named Gunnarsson, is arrested in his Stockholm suburban apartment at 8.25 a.m. Twelve hours later, Stockholm Chief Prosecutor K.G. Svensson, on the basis of evidence presented to him by police, detains the man as a suspect in the Palme murder. According to Swedish law, a suspect can be held for five days by a prosecutor, after which he must be either released or brought before a judge to face charges. EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Gunnarsson released "No professional killer" Ingvar Carlsson is elected new prime minister by the parliament. March 15 - Palme's funeral becomes the occasion of high-level political meetings in Stockholm. Carlsson meets Soviet Premier Nikolai Ryzhkov and U.S. Secretary of State George Shultz, among others. March 17 - Gunnarsson is briefly brought before a judge to face charges. The court must rule within four days whether evidence is strong enough to keep him under arrest. A court hearing is scheduled for March 20. Palme's wife is unable to identify the suspect. March 19 - At his daily press conference 3.30 p.m., a grim faced Holmer announces Gunnarsson's release, saying that an important link in the chain of circumstantial evidence had collapsed. The surprise decision had been made shortly before the press conference by Svensson, who as prosecutor is in charge of that part of the investigation which concerns Gunnarsson. Finding the police evidence inadequate, Svensson overruled a furious Holmer, whose hostility to Svensson is now growing by the day. Svensson is not allowed into Holmer's "Palme Room;" from where the police in- vestigation is directed, and Holmer wants Svensson replaced. March 22 - Opinion poll shows Social-Democratic popularity peak. More witnesses report having seen Palme followed before the murder. March 24 - Holmer says the police computer now has 7,600 documents, including 5,000 persons, who are either informants or people of interest to the investigation. March 29 - Air Force reconnaissance Viggen jets shoot aerial photographs of central Stockholm, reportedly to find the murder weapon. April 8 - Holmer's wife is attacked and threatened a second time. Two masked men say, "Tell Holmer this is the last warning!" April 13 - Dagens Nyheter runs an article signed by "Yuri Denisov," on the eve of Prime Minister Carlsson's Moscow visit, provocatively stating, "We are not prepared to spend gold and hard currency to buy obsolete technologies from Sweden;" charging that Sweden has joined the U.S. technology embargo against the Soviet Union. This refers to the Swedish government's decision to abide by the COCOM rules restricting sensitive Western technology sales to the East Bloc, a decision officially publicized the day Palme was killed. "Yuri Denisov" was the signature put under an article in the January 1986 issue of the Soviet foreign ministry monthly International Affairs, complaining that "troubles in Soviet-Swedish relations also made themselves felt after the Olof Palme government came into office in 1982" April 14-17 - Carlsson visits Moscow. Unusually, the Soviet ambassador to Sweden, Boris Pankin, and TASS Director General Sergei Losev partake in the talks with Communist Party Secretary General Mikhail Gorbachov. On the last day of Carlsson's visit, a Soviet naval infantry brigade, simulating a wartime landing in Norway, lands in fjord terrain on the western Kola Peninsula, in what was pre-war Finnish territory, only 12 kilometers from the Soviet-Norwegian border. The amphibious surprise landing is the largest component of wide-ranging Soviet ground, air, and naval exercizes staged in the area during Carlsson's Moscow visit. April 18 - Holmer says the murderer is likely an experienced shooter, but no professional killer, as the second shot missed. This would indicate he got nervous, given the short distance to Palme's wife. Holmer's statement is widely interpreted to mean that no secret service did it, but rather a lone assassin. Holmer says the probability that the man on the official wanted poster is the actual killer is only 70 percent. April 25 - The Holmer-Svensson rift reaches a new peak, as Svensson refuses to permit police line-ups demanded by Holmer, in which about 70 witnesses were to face Gunnarsson. Svensson insists that most of the line- ups are meaningless. Justice Minister Sten Wickbom and Undersecretary Harald Faith are in- formed that Svensson is opposing Holmer. The messenger is Klas FIR Special Report 49 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Justice Minister Sten Wickbom (above) and his undersecretary were called in to have National Chief Prosecutor Sjoberg overrule Stockholm Chief Prosecutor K.G. Svensson in favor of Holmer. Bergenstrand, the Justice Ministry representative taking part as an observer in Holmer's leadership group. April 26 - Undersecretary Faith phones National Chief Prosecutor Magnus Sjoberg at home, "informing" him of the rift. April 27 - Sjoberg calls Faith back, after confirming that Svensson is not changing his mind. April 28 - Justice Minister Wickbom hosts a meeting in his office, to which three gentlemen are invited: Holmer, the government's favorite police official; Sjoberg, Wickbom's old colleague during many years as leading jurists in the Social-Democratic regime; and Svensson, an outsider with no political status, but with far superior professional expertise concer- ning large and complicated police investigations. Svensson still does not change his mind. April 28-29 - Gunnarsson is interrogated again and takes part in police line-ups with 22 witnesses, none of whom is able to identify him. These line-ups were already approved, though reluctantly, by Svensson. April 30 - Sjoberg issues a written order to Svensson, in which he is "call- ed upon to have the police line-ups referred to take place as far as possible" Five Czechs are expelled for espionage, after the Security Police (SAPO) provided the government top-secret documentation. The government decides to keep the incident secret. May I - Helgbladet, a tabloid published on holidays only, runs banner headline, "The 33-year-old in the Palme Murder Arrested by the KGB!" The article reports that Gunnarsson had visited the Soviet Union in the past, where he was arrested by the KGB for bible smuggling. May 2 - Police spokesman Leif Hallberg is cited by media as saying that more interrogations and line-ups with witnesses will be conducted next week, as Gunnarsson has not yet been cleared of suspicion. Expressen runs big expose of the Czech spy affair, including saying that How Holmer misled the investigation The following documentation of strong police discontent with Stockholm Police Chief Hans Holmer is excerpted from Expressen of May 9, 1986.? "The investigation into the Palme murder is not run the way a murder in- vestigation ought to be run. Holmer has organized the investigative task force into cells where everything converges upon him and the leadership group;" one police source said. Several of the most seasoned police officials accuse Holmer of directing the work like a dictator, saying that he is paralyzing initiatives because of his manner of leading the work and that he is more of a liability than an asset to the investigation. "With some officials in the Security Police (SAPO), there is a complete communications breakdown. They think that it is no longer possible to have a reasonable conversation with Holmer,' one source said. One SAPO official stated: "I cannot cooperate with an amateur. Therefore, there is no longer any reason for me to talk to the police chief" Some of the silent criticism con- cerns the previously arrested 33-year-old man. Among the police officers participating in that part of the investigation dealing with the 33-year-old, an increasing number have abandoned their previous view of the man's involvement in the murder and now regard him as a sidetrack in the investigation. "The more we dig into the case of the 33-year-old, the more our suspi- cions seem unfounded;" one investigator said. "But Holmer clings to the 33-year-old like a shipwrecked man to a life raft," another police source said. EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Foreign Minister Sten Andersson denied KGB involvement in the Czech spy affair, and denounced the Swedish SAPO for leaking that the Czechs spied on behalf of Moscow. the Soviets were behind it. Foreign Ministry Undersecretary Pierre Schori denies that the five Czech spies had been proven to have worked for "a third power" Both Foreign Minister Sten Andersson and National Police Chief Holger Romander during the coming days sharply denounce the SAPO for leaking that the spies worked for the KGB. May 7 - Press quote Gunnarsson's lawyer, Gunnar Falk, saying that 35 witnesses have now tried and failed to identify Gunnarsson, who is nearing psychological exhaustion resulting from the intensive interrogations and police line-ups. Gunnarsson is said to be willing to cooperate with the police, but only if it is meaningful. May 9 - Press cite police spokesman Hallberg saying that police have nar- rowed the investigation to 90 suspects. One suspect is the man formerly de- tained, Gunnarsson, who now risks being arrested again, unless he agrees to further police line-ups next week, Hallberg says. Sjoberg admits that his decision to overrule Svensson came after he was "informed" of the rift by Undersecretary Falth, a blatant case of govern- ment interference. The rift over the police line-ups is merely one aspect of a larger con- troversy centering on Holmer. Strong discontent with the police chief's behavior is brewing among experienced police investigators. [See box.] Navy divers this week combed the bottom of the waters off docks and bridges in central Stockholm, looking for the murder weapon. Unable to conduct the search earlier because of the weather conditions, all they found were some cars, handbags, and other objects. Expressen runs new details of how the SAPO documentation presented to the government singled out the KGB as being behind the Czech spies. May 10 - Aftonbladet's insider column attacks the SAPO for conspiring to politicize the Czech expulsion, suggesting that "Maybe time has come for a SAPO-SAPO, a security police to check the security police? ... Maybe Ever since March 12, the police have subjected the 33-year-old to an in- credibly harsh examination. His outspoken hate of Palme, his being near the scene of the murder when it took place, and a few other troublesome circumstances have been seen as speaking for the man's involvement in the murder. In the evening of March 12, when Chief Prosecutor K.G. Svensson took charge of the investigation regarding the 33-year-old, he detained him for complicity in the Palme murder. Later the prosecutor went to court and pressed charges against him for murder. But one day before the court hear- ing, Chief Prosecutor K.G. Svensson surprisingly withdrew his charges. Hans Holmer was furious with the Chief Prosecutor. "K.G. Svensson is one of Sweden's most experienced prosecutors. But Holmer has refused to accept his view,' one source said. What was it that made K.G. Svensson take the drastic measure of oppos- ing the police leadership and the prevalent notion that the arrested man was the murderer? "Svensson had simply examined the evidence which Holmer claimed tied the 33-year-old to the crime;" one well-informed source said. Chief Prosecutor K.G. Svensson found the evidence concerning the 33-year-old's involvement to be not only weak, but also containing a fun- damental error. The key police witness, who had identified the 33-year-old during a police line-up, had previously been shown a picture of the suspect by the police. Thus his identification of the suspect was prejudiced. Chief Prosecutor K.G. Svensson's decision to release the man became the starting signal for a bitter power struggle between the two. EIR Special Report 51 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Government interference challenged in this context, there is a retirement post for Holmer, after he has finally failed to solve the bloodiest SAPO blunder ever:` May 11 - The vice chairman of the parliament's Constitutional Commit- tee, Anders Bjorck of the Moderate Party, announces that Justice Minister Sten Wickbom will be summoned before the committee to explain himself, concerning the government's interference with the murder investigation. Bjorck also announces that both Foreign Minister Andersson and Undersecretary Schori will be called before the Constitutional Committee to explain their denial of Soviet involvement in the Czech spy affair, and why the government wanted to keep the affair secret: "If the government is worried about its newly-won high-level relations with the Soviet Union, it should not indulge in mystery-making." Justice Minister Wickbom an- nounces that the government will soon form a Commission of Inquiry to investigate the circumstances of the Palme murder, why Palme had no bodyguards, how various authorities reacted to the murder, the manner in which the police investigation was conducted, etc. Holmer emphatically opposes forming a Commission of Inquiry. He The prosecutor documents tampering with evidence On six counts, Stockholm Chief Prosecutor K.G. Svensson systematically shows in his May 16 press release how the evidence put together by Police Chief Holmer against Gunnarsson does not stand up to rigorous ex- amination: Police evidence No. 1 - The suspect had been seen, on two separate occa- sions behaving suspiciously, near the scene of the murder. Svensson shows how the witnesses, a taxi driver and two ladies, had all been shown photographs of Gunnarsson by the police before the police line-ups, thus prejudicing them to identify him. In the case of the taxi driver, the oral police briefing of Svensson, which led him to decide on March 17 to press charges against Gunnarsson, had been "incomplete and misleading, due to serious errors in the work of the police!' Contrary to the Court Rules, the police line-up viewed by the foreign-born taxi driver was organized without Svensson's knowledge, and, despite language problems, without employing an interpreter. The taxi driver was also asked leading questions. After discovering all this on March 19, Svensson withdrew the charges against Gunnarsson, and ordered him released. This interrupted the wave of international slanders trying to implicate the ELP in the Palme murder, based on Gunnarsson's alleged affiliation with the ELP. Police evidence No. 2 - Literature seized from Gunnarsson showed his hostility against Palme. Svensson points out that this represents no basis for prosecution. Police evidence No. 3 - Gunnarsson had made statements about Palme being on the "death list;" and that "blood will flow on the streets of Stockholm" The police told Svensson that one witness had heard Gunnarsson saying by phone that Palme was on a death list, and that blood would flow on the streets of Stockholm. The transcript of this testimony, once Svensson finally receives it, shows rather that in the phone call Gunnarsson is warn- ing that the Russians will kill Palme. The witness told the police: "Then the 33-year-old spoke of some men who apparently were Russian or communist, who had met someone whose name was AB and who is said to be a preacher. And the preacher had at- tacked the men, and therefore he was on the death list. And Palme was all too conservative in the eyes of the Russians so they will get rid of him first. 52 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Stockholm Chief Prosecutor K.G. Svensson documented six instances of police tampering with the "evidence" used to tie Gunnarsson to the murder. says the police have nothing to hide, but that the commission should be formed later, as it would now disturb the police work. May 12 - Gunnarsson takes part in ten police line-ups, the first round of 28 new line-ups since Sjoberg's overruling of Svensson. May 14 - Svenska Dagbladet, in an editorial on the tasks of the Commis- sion of Inquiry, admits that the activities of the mass media have played a role not only in determining the public view of the Palme murder, but "probably also in a lot of what actually happened." The paper demands that the role of the mass media be examined not by the commission, but only by the media themselves. The police computer now contains 23,272 documents concerning the Palme murder, a trippling of the March 24 figure. The initial 300 in- vestigators have been reduced to 200, with plans to reduce the force to 75. May 16 - Svensson, in a dramatic move, announces the end of the in- vestigation of Gunnarson, saying there is no indication he had anything to do with the crime. Svensson also announces that he is resigning from the investigation, and details in a six-page presse release how he was misled by the police into believing there was a case against the suspect. [See box.] And there will be a bloodbath. Blood will flow on the streets of Stockholm" Police evidence No. 4 - Particles from the detonator-cap of a bullet were found on Gunnarsson's jacket. Svensson notes, that of the two particles from a detonator-cap found on the jacket, one is certainly not from the kind of ammunition that is assumed to have been used in the murder, while the other particle possibly could be, but could just as well be from some other ammunition. The jacket is 6 to 7 years old, and has been used by other people. The particles found don't even prove that the suspect has ever fired a gun, much less the gun that killed Palme. Police evidence No. 5 - Police line-ups with Gunnarsson and various witnesses. Police line-ups have been conducted before no less than 55 "witnesses;" none of whom has been able to identify Gunnarsson. Palme's wife Lisbet has described the clothes of the killer in a way which doesn't agree with how Gunnarsson was dressed. Svensson also reveals that yet another witness was shown pictures of Gunnarsson before the police line-up. Police evidence No. 6 - Contradictory statements by Gunnarsson during his interrogation. Gunnarsson has described his own whereabouts the night of the murder, including a cafe and two cinemas. There is evidence from witnesses supporting his alibi - and it has in no way been proven false. "According to Swedish law,' Svensson writes sarcastically, "it is not up to a suspect to prove himself innocent by providing a 100 percent alibi, but it is up to the prosecutor to prove the suspect guilty" In a personal addendum to the release, Svensson wrote: "Finally, I want to state the following, about the role of the prosecutor in the investigation. The suspect could have been removed much earlier from the murder investigation, if the leadership group [under Holmer - edit.] in the Palme case, through interference with the preliminary in- vestigation's leadership [under Svensson - edit.], actions in various direc- tions and attempts to exert pressure on the prosecutor through various channels, had not disrupted and prevented rational work from the side of the prosecutor. In my view, the suspect has been subject to a grave viola- tion of his rights. It is not up to me to make any further statements here as to the question of responsibility" EIR Special Report 53 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Spetsnaz threatens Sweden Sources in the Office of the Public Prosecutor report that Svensson had learned of Holmer's intention to get him fired, just before he was to clear Gunnarsson of suspicion, which Svensson was going to announce officially during the week of May 20. This prompted Svensson to move preemptively to clear Gunnarsson, denounce Holmer's methods, and resign in protest from the case. Svensson is replaced as prosecutor in charge of the case by his immediate superior, Stockholm High Prosecutor Claes Zeime, who is the head of the Stockholm Office of the Public Prosecutor, and is considered "more reliable" by the government. Asked what makes him so sure he will not have the same "difficulties in cooperating" with Holmer as Svensson did, Zeime tells media: "I have been the head of this office for 7 years. During that time, I have been continously in touch with Hans Holmer. We know each other well and have so far never had a quarrel" Zeime admits that his taking charge of the case had been decided already on May 12, and an- nounces that Svensson's decision to clear Gunnarsson of suspicion is not unchangeable: "If new circumstances warrant it, nothing prevents me from ordering a new arrest." May 17 - Gunnar Falk, Gunnarsson's lawyer, calls, in Dagens Nyheter, for Holmer to resign. "Additionally, one can ask what responsibility Justice Minister Sten Wickbom has - the government has had an observer in the Palme Room;" Falk said, adding: "Now it appears completely clear that the police have attempted to 'improve' justice by manipulating testimonies and witnesses!' Justice Chancellor Bengt Hamdahl - Sweden's highest judicial official, empowered to impeach judges and other high public officials - says he will investigate Svensson's charges. Aftonbladet says the government is losing confidence in Holmer's leader- ship: "`The investigation doesn't look very competent,' one centrally-placed source said. `Holmer is a bureaucrat who never did normal field work'." Expressen writes: "Several police sources tonight characterized K.G. Svensson's decision to resign from the case as signifying a total collapse of the murder investiga- tion. `It is the wrong man who is leaving. Holmer instead ought to have left the leadership job,' a highly placed police source said. "As concerns Hans Holmer, there is strong discontent among the police officials participating in the investigation of the Palme murder. Several of the leading murder investigators have from the very start been strongly critical of Holmer's way of interfering with the work. `His way of interfer- ing with things has done incredible damage to the investigation: one police source said. "Several of Expressen's sources point to, among other things, the way in which they think that Holmer was personally committed to the view that the 33-year-old was the murderer. `He refused to accept the view of the in- vestigators that suspicion of the 33-year-old was becoming weaker,' one source said'." May 22 - Prime Minister Carlsson announces the formation of a Com- mission of Inquiry, composed of three top-level jurists, all of whom have made their career in the government. The justice minister is to appoint a group of experts and secretaries to assist the commission. Only much later, a parliamentary group will be added, primarily to issue recommendations for the future. The opposition charges that the government is trying to hide something, by keeping the parliamentary representatives out. Holmer's task force is now reduced to 145 men. A press law trial opens, in which the government is accusing Svenska Dagbladet of divulging state secrets, for publishing two articles in the sum- mer of 1985 detailing Soviet Spetsnaz preparations against Sweden. The real aim of the trial, which ends with acquittal, is to go after the sources of the paper within military intelligence. May 23 - U.S. columnist Jack Anderson, in an article appearing in several American newspapers, cites a secret Pentagon report warning of Soviet Spetsnaz plans to kidnap the Swedish king, in a pre-war situation, to EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Navy Commander Hans von Hofsten, spokesman of (he Swedish officers' revolt, listed the Palme murder as one event in a series of Soviet pre-war deployments. Hunting submarines and killers thwarth any ideas Swedish leaders may get of aligning Sweden with NATO. The May issue of the U.S. Conservative Digest magazine, in an article on Soviet Spetsnaz activity, notes that "heavy speculation has also arisen about Spetsnaz involvement in the recent murder of Swedish Prime Minister Olof Palme'" A May 27 classical music concert sponsored by the Academy of Humanist Studies, a non-partisan cultural association, is unilaterally cancelled by the manager of the concert hall, the Royal Ar- moury in the Stockholm Royal Palace. The Royal Armoury manager tells an Academy representative that the Armoury had been ordered to cancel the concert in a phone call from the SAPO, saying "the concert must not take place, because the Academy is politically connected to the ELP" May 25 - Svenska Dagbladet runs a report based on foreign ministry sources reflecting the results of Carlsson's Moscow visit, listing three points of Soviet complaints: (1) the defense budget is too big, (2) the new restric- tions on high-technology sales are unacceptable, and (3) certain "circles;" which influence other "responsible circles;" and which are anti-Soviet and are attempting to bring Sweden closer to NATO, must be stopped. May 28 - The police computer now includes 9,062 interrogations, 24,340 tips, 14,557 persons, and 2,484 weapons, after three months of in- vestigation. The 60-year-old artist who saw a suspicious policeman on Feb. 28 delivers a 28-page documentation of his observations to the Commission of Inquiry. The artist is convinced that the policeman is being protected by his colleagues. May 31 - Expressen reports divers have found tracks of mini-submarines near the summer residence of the king. Despite official denials, Navy divers were seen searching the coastal sea bed near the residence. June 1 - Sweden's Armed Forces announce the formation of special anti- Spetsnaz units, within the Army, the Navy, and the Air Force, with training to commence on June 9. June 6 - Swedish warships open fire on an intruding submarine in the ar- chipelago northeast of Stockholm, in the first actual submarine hunt since 1984. June 8 - The Observer of London runs an article saying that, according to a senior Swedish government source, the Chilean regime may be behind the Palme murder. A burglary is committed in the house of Sweden's ambassador in Paris, Carl Lidbom, who claims to have been drugged while asleep. The thief searched the apartment, ignored many valuable objects, but stole the am- bassador's pants with FF 800 in the pockets. "This sudden visit has nothing to do with Olof Palme's death, although it is of course the privileged hypothesis of the inquirers. Carl Lidbom was very close to the Swedish prime minister,' the French daily Le Matin comments in a remarkably long article. Navy Commander Hans von Hofsten, known as the spokesman of the Swedish officers' revolt, connects the Palme murder with the submarine in- cursions, in a Dagens Nyheter article. Polemicizing against the idea that the security political sky is clear, Hofsten lists the Palme murder as part of a series of Soviet pre-war operations: "Is it clear, when foreign naval forces operate year after year in Swedish territory? ... Is it clear, when the super power on the opposite shore retools its fighter formations to fighter bomber formations? ... Is it clear, when the prime minister is assassinated?" June 9 - "The situation of the submarine hunt can be compared to the hunt for Palme's murderer,' Svenska Dagbladet editorializes. "The unreserved, operative goal of the police is to catch the murderer and have him convicted. The unreserved, operative goal of the Swedish military is to catch red-handed those who are preparing a military assault on Sweden" June 13 - After a two-day meeting of the Social-Democratic Party Ex- ecutive, Prime Minister Carlsson admits he is "disappointed" that the police have not found the killer. EIR Special Report 55 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Another Soviet threat Carlsson's trip to Peru for the Socialist international meeting next week is cancelled, because of the continuing death threats against members of the Swedish government. June 17 - Two armed men are discovered on a wooded hillside about 100 meters away from the estate of Swedish financier Bo Ax:son Johnson, in whose garden U.S. Ambassador Gregory J. Newell and some 20 other guests were just being served drinks. The two men quickly fled as they were fired at by one of Newell's bodyguards from the Stockholm police, who discovered them as they were pointing their guns at him from a distance of about 30 meters. June 23 - "We will arrest a suspected murderer any time now,' says police spokesman Hallberg in Aftonbladet. July 1 - The Commission of Inquiry has its first meeting. July 3 - The public learns that all documents pertaining to an unresolved tax affair of Palme were erased from the tax authorities' computer, the same evening that Palme was killed. The tax affair involved Palme's fee for a lecture given at the Harvard University. July 6 - Holmer in a radio broadcast denounces Prime Minister Carlsson's June 13 "criticism" of the investigation. July 17 - Andrei Aleksandrov, an advisor of the Soviet foreign ministry, discreetly visits Prime Minister Carlsson's summer island, as a special em- missary from Gorbachov. The evidence against four Poles, who illegally entered Sweden's most secret naval base at Musko, is found insufficient, and the prosecutor withdraws the charges of espionage he had announced the same morning. A special Soviet intelligence team pays a July visit to their Stockholm embassy, reportedly to call embassy staff to account for several irritating scandals errupting lately, ranging from drunken diplomatic drivers and Russian call-girl rings to fake marriages, ikon smuggling, and outright es- pionage. July 24 - In a Ny Teknik interview, the deputy chief of the Western Trade Department of the Soviet Ministry of Foreign Trade, Piskolov Y. Vasil- yevich, threatens Sweden for its decision to adhere to COCOM rules con- cerning sensitive Western technologies: "We are against laws such as the one adopted by Sweden. Their adoption shows how forcefully the U.S. is acting to implement its policy. "We do not want to act more forcefully against Sweden, as there are so many troubled corners in our world already." Aug. 18 - The Commission of Inquiry meets. Hundreds of persons will be interrogated by the commission during the fall. Expressen, in a column by Ulf Nilson, calls for Holmer to resign. Titled "Too Much Double Talk, Holmer;' the column asserts that although Swedes are notorious for their "belief in authority',' a "creeping crisis of confidence" is now emerging over Holmer's incompetence: "If no concrete results are reported very soon, I believe that almost everybody agrees that one would have much greater confidence in the police if the leadership of the investigation were put in other hands'" Aug. 21 - Commission Chairman Per-Erik Nilsson, in an interview for Dagens Nyheter, criticizes the slow response to the Palme murder by Swedish authorities, which assumed the murder was a single event, whereas it could have been part of an enemy attack on Sweden. "A great uncertainty must have prevailed during the first hours. Nobody knew whether it was the work of a madman, or a Spetsnaz attack, or a well-organized terror ac- tion against several members of the Swedish government,' Nilsson said. Aug. 28 - Expressen cites police warnings of more political assassina- tions, and quotes one police source saying, "I do not want to call it a blood- bath, but there are likely several targetted victims!' "Sweden faces an immediate and severe crisis;" Aftonbladet writes the same day. "The highest police authorities expect an early murder attempt on a leading Social- Democratic politician, a policeman or somebody in the Royal House. The situation is so serious that National Police Chief Holger Romander, who EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Did the KGB kill Palme? EIR Special Report himself has received death threats, now openly admits to this paper: `There is a grave risk of more attempts"' Aug. 30 - Expressen reports of a rift between Holmer and the SAPO, and writes that "several SAPO sources assert that Holmer has chosen the wrong track in the investigation. The whole thing threatens to end up in a legal scandal." Aug. 31 - Sunday Express of London runs a banner headline asking "Did the KGB Murder Olof Palme?" The paper reports: "Police say they are in- vestigating the possibility of the killer being a KGB heavy sent to end Palme's interference" with "Moscow's multi-million pound diamond deals with the West." These diamonds are mined by Siberian slave laborers and "shipped to the West with the Swedish government acting as the 'mid- dleman' in the deals. Palme was said to be unhappy with the arrangements and Moscow is known to have been angry at his interference" Other possibilities mentioned are that Palme, "who was often rumoured to enjoy the company of women other than his wife;" was struck by a lover's revenge, or gunned down by a South American hit-man sent by Chilean dictator Augusto Pinochet, who "was said to have held a deep grudge against the Swedish premier:' "Police are reluctant to reveal which line of enquiry is proving most positive. But intelligence sources say that Sweden has long been the playground of the KGB, and to Russia the diamond trade represents a massive flow of hard currency;" the paper writes. Sept. 6 - Expressen cites EIR Editor-in-Chief Criton Zoakos saying that Holmer knows the KGB killed Palme, but tries to cover it up. Sept. 7 - Aftonbladet cites sources in the West German Federal Criminal Police saying Holmer's investigation has run up against the wall, and is now indulging in "occupational therapy" Dagens Nyheter writes that "six months after the murder of Olof Palme, a group within the SAPO division for counterespionage is investigating the possible motives of several in- dividual policemen to take part in a plot against Palme. The investigation has been conducted quietly and leading representatives of the police in- vestigation have not even known about its existence." The paper says the group was formed in an early phase of the investigation, under the leader- ship of SAPO's counterespionage chief, Per-Goran Nass, and that it is still active, contrary to previous statements by leaders of the police in- vestigation. Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 The disinformation campaign: how it unfolded Olof Palme, left without any protection, was shot in the back by a gunman who escaped running from the scene of the murder, in downtown Stockholm. Target: the ELP Feb. 28 - Swedish Prime Minister Olof Palme is gunned down in downtown Stockholm, at about 11.21 p.m., unprotected by his bodyguards, who had been sent home. March 1 - Soviet Central Committee member Georgii Arbatov, co- founder of the Palme Commission and head of Moscow's USA-Canada In- stitute, tells Swedish correspondents in Moscow: "I do not know who killed Palme, but I know all too well who hated him.... I saw demonstrations against him by fascist hooligans, inflammatory articles, and provocations. Reaction loathed Palme" Unusually, Moscow has an immediate, calculated political response, while other international leaders refrain from political exploitation of the murder, merely expressing their shock at the news. March 2 - Soviet Communist Party paper Pravda and government organ Izvestia assert "right-wing circles" and "Western circles:' respectively, were behind the hit. This line is now promptly picked up and faithfully reproduced during the following days by a chorus of Swedish "intellectuals" led by Palme intimate Harry Schein and Olof Lagercrantz in Dagens Nyheter, Hans Haste in Ex- pressen, Per-Olof Enquist and Karl Vennberg in Aftonbladet. March 3 - Arbatov tells the Soviet news agency Novosti that "It is the right-wing circles who are working against peace" who are responsible. March 3 - Ekstra Bladet, Denmark's largest-circulation tabloid, runs arti- cle by "star reporter" Paul Gazan, claiming that "Sources in the police leadership reveal they are looking intensely at right-wing extremist groups, such as the Swedish neo-nazis and the so-called `European Labor Party: which also has a branch in Denmark'." Datelined in Stockholm, this first article naming the ELP was based upon a manuscript shown by Expressen reporter Tommy Schonstedt, according to a statement by Gazan. March 3 - Tageszeitung, the Berlin-based pro-terrorist paper, runs article from Stockholm by Andreas Juhnke, saying that, "According to informa- tion of the Swedish paper Expressen, the Security Police is mainly focusing on right-wing extremist circles including the `European Labor Party'.." March 4 - Expressen, Sweden's largest-circulation daily, runs the story floated one day before in Ekstra Bladet and Tageszeitung. The article, by crime reporter Leif Brannstrom, mentions the ELP, "Known for hate pro- paganda against Olof Palme:" in a list of alleged suspects under investiga- tion by the Security Police (SAPO). Expressen the same day carries an article authored by Georgii Arbatov, titled "Palme Hated by Many'" Arbatov intones: "I don't know who murdered Olof Palme, but I know very well who hated him. He was hated, bestially hated, by those who cannot accept, by those who hate what he spent his life for - peace and disarmament ... As a member of the Palme Commission, ... I have seen demonstrations by neo-fascists, seen hooligans curse him and threaten him, read slander articles.." March 4 - Nordvastra Skdnes Tidningar, a local Southern Swedish paper, runs article by Lydia Capolicchio citing local tax police commissioner Ber- til Haggman, who has studied terrorism for more than ten years. "Palme's way of criticizing political adversaries is indeed controversial. Enemies - our prime minister certainly had many,' Haggman is quoted, followed by a list of alleged suspects, including: "The European Labor Party is the organization calling Olof Palme a `traitor'. The organization is known for its strong Palme hate, but has never conducted a policy of violence'' EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Suspect "linked to" the ELP EIR Special Report March 5 - Radio Moscow reiterates that the Palme murder "is an attempt by right-wing elements who want to deliver a blow to peace and disarma- ment movements" March 6 - Literaturnaya Gazeta, Soviet cultural journal known as a mouthpiece of KGB disinformation, runs article by Soviet Foreign Ministry spokesman Vladimir Lomeiko, asserting that "many things" Palme stood for are close to "the new approach by the leadership of our party on ques- tions of today's global problems;' including "organizing for a nuclear-free civilization;" etc. "For that reason, he was a target of the ideological adherents of violence. That is why they hated him.... At this moment we do not know the names of his assassins, but we know the handwriting of political assassination" March 8 - Ekstra Bladet prints a letter to the editor by Swedish ELP spokesman Michael Ericson, protesting the paper's claim on March 3 that the ELP is under police investigation regarding the murder of Palme: "We have contacted police inspector Anders Sigurdsson, Stockholm, who is in the leadership of the investigation. He makes it clear that the ELP is of no interest to the investigation. `The name has not even come up: he says" March 14 - TASS correspondent in Stockholm says that the ELP is "the same group" as the neo-Nazi "European National Socialist Union:' which had claimed the Palme murder in a letter received on March 13 by the Swedish news agency TT. The TASS spokesman names TT as his source, which agency categorically denies having issued such misinformation. March 14 - BT, the second-largest Danish paper, a noon tabloid of Berl- ingske Tidende, reports that a man was detained on March 12, who is con- nected to the ELP, and who was known previously as such by the SAPO: "According to sources in SAPO (sic), the 35-year-old has been a sym- phatizer of the EUP (sic!) and has worked on a freelance basis for the par- ty, among other things by authoring articles for party journals" In fact, the suspect never worked for the ELP, never wrote an article for ELP publica- tions, and never attended an ELP event, public or internal. He signed up for membership in 1984, and was removed from membership in 1985, as there was no basis for further cooperation. In a call to the SAPO on March 14, the ELP's Michael Ericson is told that no such accusations had originated with SAPO, which has no informa- tion linking the man to the ELP. March 15 - BT prints a statement by an ELP spokesman, titled "Not Our Man:' denying any links between the suspect and the ELP: "It is a lie which must have come from Soviet or Soviet-related circles" March 16 - The Observer of London in an article by Chris Mosey from Stockholm on the March 15 funeral of Palme writes, "Police hunting Palme's assassin are investigating a possible link between the killing and an extreme right-wing political group known as the European Workers' Party (sic!)" The paper claims that the "man under arrest in Stockholm on suspi- cion of complicity in the murder, is understood to have been a supporter of the party and to have held political meetings with up to 30 people crowd- ed into his one-room flat in a suburb south of Stockholm" March 18 - The storm breaks loose, a well coordinated wave of lies and innuendo appears throughout the entire Swedish and international news media, whether printed or broadcast. A few samples include: SWEDEN: Morgonekot, national radio morning news, broadcasts that the suspect was an ELP member, adding lurid details of "meetings of decently dressed peo- ple ... both Swedish and foreign guests" at the suspect's home. Svenska Dagbladet runs front page article titled "Suspect to Be Charged, Member of Political Sect;' which is cited widely as a source of other slanders. Echoing the Soviet-inspired slander guidelines, the self-professed conservative daily says, "In 1984, he was a member of the ELP. The ELP on several occasions has run campaigns against Olof Palmer" and the suspect "is known to be an outspoken anti-communist" Written by Richard Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Aschberg and Sune Olsson, the article reports that "At the National Tax Authority, the 32-year-old, along with 1,800 other persons, is registered as a member of the ELP" - giving away one of the coming operations against the ELP. Aftonbladet runs 16 pages on the Palme murder, 10 of which are devoted to the ELP. Half of the front page is a picture of the Social Democrats' 1976 election kick-off rally, showing an anti-Palme placard held by two men. A black square covers the face of the man to the right. "The one holding the placard to the right in the picture is the man who yesterday in Stockholm faced charges for the murder of Palmer' Aftonbladet asserts, as proof of the suspect's long history of work with the ELP. The same picture is blown up across the entire page 6, under a banner headline, "Here the 32-year-old Attacks:" In reality, the man singled out on the picture is a Social-Democratic activist, attempting to violently tear down the ELP's placard! Kvallsposten, like many other papers, carries the same picture as Af- tonbladet of the 1976 election rally, claiming that the Social Democrat at- tacking the ELP placard is the suspect, demonstrating with the ELP against Palme. The paper also retails the lie that the suspect visited the editorial offices of several Copenhagen newspapers on behalf of the ELP, in connection with Palme's 1983 visit to Copenhagen. DENMARK: Ekstra Bladet reports that the suspect was an ELP member, and equates the suspect's hate of Palme to that of the "right-wing extremist" ELP. BT claims that the suspect was "known to Danish papers since Sept. 1983;' when allegedly he visited the Copenhagen press, attempting to solicit ar- ticles against Palme, on behalf of "an extreme right-wing organization;" in connection to Palme's Denmark visit. No mention of the ELP, but other papers now claim this as "proof" that the suspect worked for the ELP in 1983. Danish TV reports the Svenska Dagbladet story that the suspect was an ELP member, cites Swedish police sources who do not think the suspect was an active ELP member, but repeats the story that the suspect visited the BT editorial offices as an ELP member lobbying against Palme in 1983. NORWAY: Aftenposten reports Svenska Dagbladets story that the suspect signed up for the ELP in 1984, and cites former ELP members describing the party as a small disciplined sect, "in which brainwashing of members and harass- ment of political adversaries was an important part of the activity'." GREAT BRITAIN: The Times runs front page article by Christopher Mosey from Stockholm with name and picture of suspect, asserting that police "are understood to be investigating his possible links with the right-wing European Workers' Party (sic!), which has its headquarters in Wiesbaden, West Germany,' and quoting the suspect saying, "Palme is on the death list. Blood will flow on Stockholm's streets'." Article ends with AP wire from Bern that Swiss authorities has offered SF 125,000 for clues to the Palme murder. Reuters wire says that the suspect was an ELP member, and quotes ELP spokesman Michael Ericson saying, "There have been clear attempts by Moscow to lay the murder at our door" The news agency retails the Af- tonbladet story with a 1976 picture allegedly showing the suspect among ELP members heckling Palme. FEDERAL REPUBLIC OF GERMANY: ARD and ZDF, both national TV channels, as well as all regional radio sta- tions broadcast the suspect's ELP links. 60 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Western news media promptly issued the Soviet disinformation line. Above, the spiritual home of the "free press;" Moscow's old Lyubyanka prison, today housing the KGB headquarters. In the foreground, Cheka founder Feliks Dzerzhinskii's statue. From storm to hurricane EIR Special Report FRANCE: AFP leads the barrage with a wire citing Svenska Dagbladet on the suspect's membership of the "extreme right-wing" ELP, quoting the party's intention to "put a stop to Palme's collaboration with the Soviet Union" Antenne-2 TV, France-Inter state-owned radio, and Europe-I commercial radio all broadcast variations on the theme of ELP links to the Palme murder, with invectives ranging from "fascist" through "hallucinatory" to "paid by the CIA" or "KGB'." Le Monde reports the suspect's alleged ELP membership, cautiously word- ed in the first edition, carrying the ELP's denial in the second edition. ITALY: Italian TV and radio report the ELP links of the suspect. UNITED STATES: The Washington Post runs an article by Chris Mosey saying that "literature attacking Palme was found in the suspect's suburban apartment, some of it printed by the extreme right-wing European Workers' Party (sic!), based in Wiesbaden, West Germany' The article cites police saying they are in- vestigating a possible link between the Palme murder and the party, which "carried out a virulent campaign against Palme in Sweden, producing a pamphlet purporting to be a `missing chapter' in his life, in which it accus- ed his family of having Nazi links" NBC-TV broadcasts a Nightly News item by Brian Ross, alleging a connec- tion of the suspect to Lyndon LaRouche, who is identified as head of a neo- Nazi cult. The Anti-Defamation League's Fact Finding Division head Irwin Suall was interviewed, saying it was conceivable that a person affiliated with LaRouche could commit an assassination. UPI wire reports that "a fanatic anti-communist arrested in the assassina- tion of Prime Minister Olof Palme was kicked out of an extreme right-wing political group;" quoting ELP spokesman Michael Ericson as saying, "We are not interested in people with cult ideas" March 19 - The storm grows to a veritable hurricane, with further creative elaboration of the fairy-tales of the days before: SOVIET UNION: Radio Moscow, once the KGB disinformation line is in place in the West, breaks almost two weeks of silence, playing back in both domestic and in- ternational broadcasts the Western media reports that the suspect was a member of "the fascist European Labor Party, with its headquarters in West Germany" Red Star, the Red Army daily, runs a TASS release citing Svenska Dagbladet, reporting the suspect's links to the ELP, "a `political sect' with strict discipline, which carries out persecutions of its political opponents. Some years ago the party started a `Save Sweden' campaign. Such a `rescue' would be carried out by Sweden's entry into NATO" SWEDEN: Svenska Dagbladet claims "The suspect was active in the ELP already in the mid-1970s;" citing an anonymous ex-reporter at the Malmo local radio, who says the ELP demanded at that time that he broadcast an interview with the man now under arrest. Several pictures are shown of police trying to find the suspect on old pictures of ELP events. The paper also cites the U.S. Heritage Foundation's Milton Copulos war- ning that ELP supporters in the U.S. get "terrorist training:' and complain- ing about a leaflet intervention against a Dec. 1984 press conference in Chicago of the Palme Commission, including commission member Georgii Arbatov, where one of Lyndon LaRouche's associates asked "a critical question" Dagens Nyheter claims that "a CIA man in the name of the [ELP] Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 organization gave a lecture in Stockholm in 1974;' and adds that LaRouche "is a millionaire in the computer business (sic)" Expressen runs 12 pages on the Palme murder, 6 of which are devoted to the ELP. Apart from rehashing more conventional lies about the ELP, a full page is reserved for a former TV reporter, Larsolof Giertta, who in 1982 produced a slander program on the ELP, and claims to have received a death threat from the party. Aftonbladet runs 8 pages on the Palme murder, 4 of which are devoted to the ELP. The Goebbels Prize is awarded to a two-page spread carrying three large pictures of the West German neo-Nazi Karl-Heinz Hoffmann in action, with paramilitary, neo-Nazi uniformed troops, dogs, and skull and cross-bones symbols. The title reads: "The Neo-Nazi Training Camp, Here Six Swedes Were Trained'" Citing an unnamed former ELP member, picture captions and article claim that several Swedish ELP members received weapons training at Hoffmann's training ground in Wiesbaden (sic!). Another half-page banner headline purports to quote an unnamed ELP spokesman, saying "It May Become Necessary to Shoot Palmer" a state- ment allegedly made to a Swedish journalist in Dec. 1984! In his 1984 arti- cle, the journalist didn't think the statement worth reporting, but after the Palme murder, he suddenly "recalled" it... In a tiny box at the bottom of the same page, the paper half-heartedly retracts its front-page lies of yesterday, about the 1976 election rally, but written cryptically in order to hide the implications. Meanwhile, other papers were already retailing the lie about the suspect's 10-year ELP membership. Smalands Folkblad runs the same fabrication as Aftonbladet that day, vary- ing its quote, "We Wouldn't Hesitate to Shoot Palme!" in a banner headline with name and large picture of the ELP spokesman alleged to have said it. Falu Kuriren runs a vitriolic editorial, rehashing the line that the ELP is an "extremist sect" running "hate propaganda" against Palme, but adding, "Yet the party can hardly be connected to the murder of the prime minister,' as "the organization as far as we know has never used violence" The paper also runs an article, signed by its political editor, "ELP expert" Hans Lindquist, who after retailing his repertoire of anti-ELP invec- tives - including pro-Sovietism, anti-semitism, and pro-American - warns that the suspect "in all likelihood has had no prominent function in the movement" Examination of all ballot documents and publications does not turn tip the suspect's name, and "Former Executive members who are now fighting their old party and thus have no reason to hide facts damaging to the ELP, say they do not at all know the man, neither by name nor his face" DENMARK: Berlingske Tidende runs article calling the ELP in West Germany neo-Nazi. Jyllands-Posten in article by Bonn correspondent Klaus Justsen calls the ELP "fascist;" and LaRouche a "Fiihrer" Aktuelt, the Social-Democratic daily, sets the tone in a large headline, "Danes on Hate-Party's Black List;" implying that after Palme, the ELP is now targetting several Danes, particularly Denmark's former Social- Democratic health minister, Ritt Bjerregaard. Ekstra Bladet joins in, running front page banner headline asserting that "Ritt (Bjerregaard) is Next on the List of Hate" Land og Folk, Danish Communist Party daily, varies the theme in its headline, "Anker J. on Same ELP `Enemy List' as Palmer' in reference to Denmark's former Social-Democratic prime minister, Anker Jorgensen. Information runs both article and editorial by Jorgen Dragsdahl, claiming that the ELP's philosophy promotes violence and terrorism. NORWAY: Dagbladet runs large picture of a hooded Ku Klux Klansman in white robe, claiming that it is Lyndon LaRouche - although the face, which is show- 62 EIR Special Report Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 ing, tells anybody who cares for the truth that it isn't LaRouche, whose real picture is printed on another of the 7 pages devoted to the Palme murder! The paper also retails the lies from Svenska Dagbladet that same day, that the suspect has been an active ELP member for ten years. Morgenbladet lies that West German ELP leader Helga Zepp-LaRouche is really born in East Germany, although "officially she is born in Trier, West Germany" Arbeiderbladet accuses the ELP of running a "crusade against drugs, AIDS, the International Monetary Fund, the Rockefeller family, Jews (!), communism, the social democracy and the peace movement'" GREAT BRITAIN: The Times repeats its lies from the day before, again in an article by Christopher Mosey from Stockholm, adding the "accusation" that the ELP "has for several years conducted a virulent campaign against Mr. Palme and advocates Sweden abandoning its policy of neutrality and join- ing NATO" FEDERAL REPUBLIC OF GERMANY: Frankfurter Rundschau writes that the ELP "has specialized in the worst kind of political propaganda and, in Scandinavia, Olof Palme was their dearest enemy ... The hate they're spreading can mislead a psychologically unstable person into committing actions, the consequences of which they cannot control!' Frankfurter Allgemeine Zeitung, Suddeutsche Zeitung, and Die Welt all run coverage based on Aftonbladet of the day before, including the fake picture of the "suspect" with the ELP. FRANCE: Le Matin de Paris uses the title, "ELP: One Sect, One Party, One Leader," alluding to an infamous Nazi slogan. ITALY: l'Unita, Communist Party daily, runs the headline, "Is Palme's Killer a Hard-Core Neo-Fascist?" adding, "He was an ELP activist" Il Resto del Carlino runs a story in which the author claims he personally attended "ELP meetings" where "Nazi songs were sung" and a "lot of beer and sausages were consumed'." SPAIN: National TV, Channel 1, carried news item on suspect's links to the ELP and LaRouche, who was identified as the leader of an international neo- Nazi organization. UNITED STATES: The Washington Post runs an article in its first edition, titled "Suspect in Palme Case had LaRouche Party Tie;" which is pulled from later editions. Chicago Sun-Times runs article titled "Palme Suspect Linked to LaRouche Extremists;" based on Svenska Dagbladet. CBS-TV in Illinois broadcasts a statement by dope lobby figure Chip Berlet, rehashing the suspect's alleged ELP and LaRouche links. MEXICO: Mexican TV gave extensive play to the LaRouche connection. PERU: Expreso, house organ of dope liberal Manuel Ulloa, was alone in retailing the slanders against LaRouche and the ELP. EIR Special Report 63 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Approved For Release 2010/08/05: CIA-RDP90-00806R000100640037-0 Suspect released Despite the release of Gunnarsson, and thus the collapse of Holmer's forged connection to the ELP, Swedish police and media attempt to escalate their witchhunt against the party. Above, Police Chief Hans Holmer. Soviet TV on LaRouche March 20 - After the suspect's sudden release in the afternoon of March 19, most of the media drumbeat regarding the ELP grinds to an abrupt halt, with either no further mention of the Palme case whatsoever, or "straight" news wires reporting the suspect's release, with no mention of the ELP. The most significant exceptions, some of which are sampled below, are in the Scandinavian press: SWEDEN: Arbetet runs the headline, "Criminal Police Fetched 1,800 Names of ELF Members:' over an article beginning, "The police are still interested in the ELP, in the hunt for Palme's murderer" The seizure of the registered ELP members' names from the National Tax Authorities' Electoral Office signals the next phase of harassment and intimidation efforts against the party, run with Swedish police complicity. Expressen, headlines an article by Leif Brannstrom, who helped launch the original March 3-4 campaign against the ELP, "All Members of the ELP Under Investigation" The article begins, "The investigators of the murder now begin to penetrate deeper into the examination of the ELP. The Na- tional Criminal Police have now seized the 1,800 membership registration forms that the right-wing extremist party had filed with the National Tax Authorities. `We are going to check the names in order to see whether any of them can be connected to the murder of Olof Palme,' one police source told Expressen" DENMARK: Ekstra Bladet reports continuing police investigation of the ELP, with the seizure of 1,800 membership forms. Berlingske Tidende claims that 3 ELP members harassed Palme already in 1970 at the Copenhagen airport - several years before the party was founded! GREAT BRITAIN: The Times, again in an article by Christopher Mosey, keeps regurgitating the old lie about the suspect's appearance at a 1976 ELP demonstration, which was retracted by Aftonbladet on March 19. FEDERAL REPUBLIC OF GERMANY: Kieler Nachrichten calls the ELP "terrorists" FRANCE: Le Quotidien de Paris, in anonymous article reporting the suspect's release, adds explanation of why the investigation focused on "terrorist organiza- tions;" such as the Croats, the RAF, and "the fascist sect" ELP! Le Monde runs article characterizing the ELP as more likely "left-wing Gaullist;" rather than extreme right-wing or "ultra conservative" Cites the ELP program extensively, and notes that the party was never accused of us- ing violence. Present, a conservative Christian daily, employs quotes to refute the notion of the ELP as an "extreme right-wing" party. The paper mentions the ELP's praise for the turn-of-the-century Colbertist figure of the French Socialist Party, Jean Jaures, the ELP's strong condemnation of the Nazi collaborator Vichy regime, and the ELP's multi-racial candidates slate in the just concluded French elections. Present also attacks the disinformation campaign run through the media, and cites "Western intelligence sources" saying that the Soviets are likely behind the Palme murder. March 21 - Vremya, the Soviet TV news program, airs an attack on the ELP, regretting that the man who was arrested in the Palme murder case is now being released for lack of evidence. This happened only because, deplorably, "the police and judicial organs operate within the framework of Swedish laws. 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