BURYING THE MYTH OF APPEASEMENT: ARMS CAUSE WARS NOT PREVENT THEM.
How industrial militarism got underway – the pioneers.
A world dominant political ideology grows like a river flowing. Tributaries join. but they start small. After the great Napoleonic Wars there was a lull in arms production, as nations recovered from twenty five years of horrific European War. But nothing stands still. The streams start flowing again. Industrialisation was underway, and some manufacturers had already worked at semi-industrial weapons. Now iron began to be mass produced and some steel was made in Sheffield and elsewhere. Becoming a militarized world did not happen by accident. As industrialization took place, it was planned by those who wanted to sell manufactured weapons. The early figures like Krupp and Armstrong were pioneer entrepreneurs from the 1830s onwards who set out to forge a business. Profits came with economies of scale, and they set out to increase scale. They sold arms, initially at home, and then soon throughout the world. From Japan to Paraguay, states were persuaded by political vanity, bribery and scares to purchase arms. If one ruler bought, their neighbours could be persuaded to buy as well. Gradually, politicians were taught that force was the name of the game, force against national force. The great national rivalries of the 19th century were weaponized. Autocratic leaders had long surrounded themselves with soldiers, and the European imperial powers were set to fight across the globe, so there were open doors, but these pressures were not allowed to melt away with more democracy. People did not normally want war; it killed them. But by pushing people towards nationalism and patriotism, the politicians could be persuaded to back militarism and the arms companies made their pitch in season and out of season. Arms were the rationale of the empires developed by the Belgians, the Dutch, the British, the French and the Russians and of national rivalry. States built up their armed forces, went looking for countries to control as colonies like Alexander the Great or Caesar, and then probably went to war, and also did not trust their neighbours.
Weapons
went to a series of wars in China in the early 19th century. Between
1939-42 there was the first Opium War, fought by the British for their right to
make the Chinese into opium addicts from supplies grown in India. The British
won and took over Hong Kong and imposed reparations of 21 million dollars. The
internal weakness of China led eight years later to the Taiping Rebellion, one
of the most ignored wars in history. It killed perhaps 30 million Chinese and
lasted from 1850-64. The rebellion was led by a fanatic with weird western and
Christian ideas. It led to the Second Opium War of 1856-60 and the western
powers, especially Britain and France, used cannon on land and ships, rifles,
guns and swords to defeat the Chinese who then began to use western weapons.
China, Egypt, South America, India, Turkey – all over the world – markets
opened up for cannon, rifles, swords and guns feeding an international trade
system. The Crimean War of 1853-6 bumped up weapons sales yet more and the US
Civil War got arms and naval sales moving on further. Glasgow’s naval provision
for the South extended the war, and Birmingham-made guns went to both sides,
while the US gunmakers, already practicing on Indians, expanded further. So,
one way and another industrial arms had arrived as a permanent industry
involved in international trade by the mid 19th century. Factories
developed. Designs improved. Weapons strengthened. Firing speeded up.
Penetration was improved. Weapons were steel. Engines powered new ships. Armour
was stronger, and explosions were bigger. The question was, how much could this
industry expand?
There
was an ideological conflict around weapons. Christianity was fairly
systematically against killing and war and strong peace movements grew after
1815 to close down weapons and war in Europe and the United States. Christian
missionaries had a record of nonviolent engagement with different national
cultures around the world learning local languages and working at schools and
hospitals. On the other hand, the British elite learned Latin and looked to
Rome in their public schools to understand how to run a similar empire with British
made weapons. The arms companies fitted this model. They talked national
rivalry, provided the wherewithal to fight “and win” with industrial scale arms
production, and saw their profits grow. Gradually, some politicians adopted
this view too. For example, there was a tension in Britain between Gladstone’s
Christian anti-imperialism and the commitment to empire of Palmerston and
Disraeli. The empires grew and with them the escalation of industrial arms
sales, for the Maxim gun ensured that the natives could be mown down and the
Empire rule. More and more weapons found their way around the world.
The Great War was about weapons, not territory.
The
pace of militarization quickened. Arms companies had strong links into
government. Bribery was practiced to open up markets in Japan and elsewhere.
Companies like Krupp, Armstrong, Vickers, Schneider, Mauser, Skoda, BSA, Nobel,
Du Pont and Remington became among the biggest industrial companies on the
planet. They conversed with Prime Ministers and Emperors, and promoting arms to
big and small nations. Basil Zacharoff, who became the richest man in Europe,
collected contracts in armfuls for Vickers, and others, was given a knighthood
and consorted with kings. Arms “races” and wars became normal, and by 1914 there
were four great arms races pushing Europe to the edge. Each state was watching
the others, and their military build-up, for a decade or so. The British like
to see themselves as the good guy, but around this time we were seen in Europe
as an unprincipled imperial aggressor; we had side-stepped the Hague Peace
Conference in 1899 to fight the Boer War for gold and diamonds. That War saw
the first Concentration Camp with thousands of deaths. British arms companies
had sold weapons to Japan, Russia, the Ottoman Empire, Serbia and many other
countries priming them for conflict. We led the arms business, especially in
warship production around the world. The arms companies and warship
manufacturers stoked fear to up their sales; the Germans became the Huns and the
popular newspapers scared the public with silly talk of invasions. The military
lobby defeated and controlled politicians from Gladstone onwards to expand
sales, especially in the great “Dreadnought Scare” of 1908-10. Even Churchill,
the great Navy Man, acknowledged that this was a false scare. The militarists
developed the first propaganda machines, pushed their agenda in newspapers, Parliament,
through pressure groups, and using tame politicians. This contribution of
Britain and its militarists towards the Great War has never been properly
acknowledged. WW1 was about weapons, not about invasion, territory, trade or
ideology. That so few acknowledge this shows how successful the arms companies
have been in their business. They sell the stuff that generates wars in the
name of defence and peace, and few question them, certainly far fewer than did
then.
The
military competition finally pushed over the edge, into the greatest war of
all. The trigger was weapons-inspired. Austro-Hungary‘s Skoda had tried to sell
arms to Serbia, but failed. It was miffed, but Serbia would not buy Skoda arms
because Austro-Hungary was her most likely enemy. Then the so-called Pig War
ensued between 1906-08, and, with the assassination of Archduke Ferdinand, the
Austrian Empire was ready to issue an ultimatum and then invade Serbia partly
because it had not played game on the arms trade. This was the starting gun for
all those other arms races which existed – France-Germany, Germany-Russia,
England-Germany and Russia/Serbia-Austro Hungary – and these spread into the
Great War. When the Kaiser decided for war, Krupp was at his side, and the
French were sure their field gun was a winner. The production of arms then
exploded in the greatest output of weapons the world had ever seen, many times
over. Perhaps ten millions tons of shells were used. After the Great War with
four years of maximum production and growth, these companies controlled the
biggest industry in the world. People focus on the events of the Great War, and
even on the weapons – gas, shells, rifles, bayonets, early tanks and planes but
they have been taught to ignore the companies that produced them, even though
they were really the only ones profiting from the War. Militarism became the
world lead industry, with vast profits, and these vast companies would not
disappear.
The Buried History of Disarmament.
There
were many thoughtful leaders before the Great War who understood the danger of
the arms industry and militarism. They included Gladstone, Leo Tolstoy, Bernard
Shaw, Keir Hardie, President Wilson, Pope Benedict XV, Bertha von Suttner,
Frédéric Passy, Jeanette Rankin, Ramsey McDonald, Charles Trevelyan, Arthur
Ponsonby, Bertrand Russell, Maude Roydon, Mahatma Gandhi, Alfred Fried, Jane
Addams and many more, an awesome list. They had waged a widespread and
articulate war against war, militarism and the arms trade. A shaped, principled
understanding of Christian peace and disarmament spread through Europe and
North America.
During
the early years of the century the pacifists identified the escalation of arms
and pointing out the stupidity of teaching mass murder as some kind of
patriotic good. They warned about the destructiveness of war and the arrogance
of rulers and the armaments industrialists. But these powerful arguments did
not win. Jingoism, a quick stirring up of popular warlike patriotism, won the
day in 1914 in Britain, Germany, France and Russia. It was the time when
propaganda entered the modern world. The disarming people also faced aggressive
opposition. In France Jean Jaures was shot to get rid of his stand against war
in 1914. Keir Hardie, the Labour Leader, became a hate figure because he
opposed the war, while everybody went off to fight in a euphoria of presumed
success. When the War actually came, its horrors mounted month on month. The
militarists promised it would be over by Christmas, but they were nearly four
years out. The Pope said the war was a failure of civilization. He
suggested a Christmas Truce which even looked like holding with the troops, who
quickly worked out they preferred football in no man’s land to killing one
another. But the generals broke the truce and the carnage went on and on with
millions of shells, and then gas, as soldiers crossed the front to kill and be
killed. It ground on in the trenches and mud in a series of battles which
achieved little and were for little. Millions now understood the arguments of
the pacifists that war was dumb and nationalist jingoism was false. The world
saw the reality of mass murder and the common sense of disarmament. This was a
vast, articulate, world-wide recognition, and it had the militarists with the
bitter fruits of their labour out in the open.
The Reality of the Great War.
Let us
dwell with that War. Superficially, it was about who won, and the patriotic
nationalism was present on all sides. But soon no-one had won. Everyone was
bogged down in the trenches with young soldiers dying at about six thousand a
day. The War Poets said it in verse, but everybody knew it in doggerel. “Oh
what a lovely War! Up to your waist in
water, Up to your eyes in slush, Using the kind of language, That makes the
sergeant blush.” And it was worse than
that. Russia imploded with about three million deaths, bodies lying
about everywhere. Germany eventually ran out of equipment and the people and
its fighting collapsed in 1918 into internal horror; look at the paintings of
Georg Grotz. The United States had moved from supplying weapons and explosives
to engagement. It had it relatively easy, because it only had 117,497 deaths
and 204,002 injured, a light burden compared to other countries. Overall, some
twenty million died, a further twenty million were injured and another twenty
million traumatized. The United States entered the War partly because Britain
and France (and Russia, who defaulted) owed so much through buying weapons that
the US had to make sure they would win and therefore repay their debts. In turn
Germany needed to pay reparations to Britain and France in order to pay the
Americans. These debts and destruction crippled the economy of the world
through to the Thirties and helped create the next World War. The historic
scale of the tragedy cannot be exaggerated.
Yet it
was the personal reality of it which bit. People had seen for themselves state
murder and being murdered. The reality of War was horrific with bodies in mud
and craters across the horizon. There was gas with soldiers drowning in mucus.
There were screaming men with missing limbs and throbbing open arteries. Murder
destroys far more than the person who dies, and destroyed people lived on in
their millions. Really, everyone knew
that this was the travesty of civilization. The sacred language of patriotic
sacrifice did not cover the reality of bodies as fodder to war. This must never
happen again. Yet, it was worse still. The returning soldiers carried “Spanish”
flu around the world and fifty to a hundred million more people,
weakened by the war, died all across the globe. Loved bodies in coffins
stretched to the horizon. Cemeteries were like fields of white dot mourning.
Two great tidal waves of grief traversed the globe touching all those mourning
far more than a hundred million dead and injured. We now call the war pain,
then called shell shock, PTSD – full of
rage, silent, sleepless, raw at the inhumanity they had seen, driving to suicide.
Often, the men took it out on their women – another brutal undercurrent to the
War. The scale of the trauma tragedy is summed up in the fact that Hitler was
merely one of them. Then, there were frozen winters without food or resources,
or strong, young people, or fuel and shelter in Russia and Eastern Europe. The
suffering cannot be imagined. So, millions just tried to cope, but underneath
most of them knew War must be addressed and ended. The statesmen of the era
were chastened. War had no-where to go. Those who had bought into chauvinism and
the arms trade knew Weapons Kill, because their beloved son was dead. As Lord
Grey, British Foreign Secretary in the decade before the War, the best placed
authority, said afterwards, “The moral is obvious; it is that great armaments
lead inevitably to war.” There was widespread repentance at this false trust in
militarism.
Beware
the late-coming historians. They say, the phrase – “The War to End All Wars”
was idealistic, not really believed. It was not. Millions, and most of the
statesmen involved, were deadly serious about it. Yet, this clear understanding
was defeated in a mere twenty-five years; and few grasped how it had been
defeated because the militarists learned how to hide and disappear from public
view. We are taught that the Second World War was caused by Hitler, and we must
arm to be strong, but this involves speeding through twenty years and
misrepresenting the history of the era drastically. For the Second World War to
occur the international arms manufacturers had to be back in the driving seat,
as they were just before Hitler came to power. They were determined that the
Great War would not be the War to End All Wars and they were successful in
Britain, the United States, France, the USSR, Japan and Italy, not just in
Germany. Their strategy during the interwar period was crucial and is largely
unexamined. It is the real reason for the Second World War.
The Inter-War Disarmament Movement.
The
arms companies faced a formidable foe. Another generation had emerged after
1918 who knew war was wrong because they were in it. In Britain they included
Vera Brittain, Lord Robert Cecil, Clem Attlee, Arthur Henderson, George
Lansbury, Lord Edward Grey, R.H.Tawney, Charles Raven, George Bernard Shaw,
Emily Hobhouse, Charles Buxton, Philip
Noel-Baker, Wilfred Owen, Robert Graves, Evelyn Underhill, Siegfried Sassoon,
Field-Marshall Sir William Robertson and
even the main architect of Britain’s War effort, Lloyd George – a formidable list. Earlier
Pacifists including Gandhi, Bertrand Russell, Sylvia Pankhurst, the Anglican
Pacifist Fellowship and other groups who added further weight to the cause. In
the United States, Jane Addams was joined by others including the later
President Hoover, Frank B. Kellogg, Dorothy Detzer, Mary Dingman, Mary Woolley,
Helen Keller and a list of other women pacifists who have been ignored in much
subsequent history. They gave a critical perspective on male militarism which
rocked American politics. The Quaker, Mennonite, Catholic Workers and other
Christian groups were resolutely for peace. The Carnegie Endowment for
International Peace was a potent organization for peace principles.
So,
this was no fringe movement. These groups had support in excess of ten million
through the twenties into the thirties.
They had seen the problem of militarism in the raw and were determined
to do something about it. They were not
just “for peace”, but had an articulate understanding that arms cause wars and
the arms manufacturers and militarists had a vested, and stupid, interest in
war. In France, Italy and elsewhere similar movements were strong. In France
the ex-servicemen, the Anciens Combattants, shared pacifism with primary school
children, so that children understood how militarism was wrong. They attacked
the idiocy of planning to murder millions of people with new technology. World
renowned figures like the explorer Nansen were up for the challenge. In Germany
the murder of Rosa Luxemburg and Karl Liebnecht was a setback, but peace and
disarmament were strong. The No More War movement among veterans numbered
30,000.[i] among Catholics and some Protestants and a
range of radical journalists, artists and writers. Ernst Barlach, Carl von
Ossietzki, Kurt Tucholski, Erich Remarque, who wrote “All Quiet on the Western
Front” (1928), Bertha von Suttner, Etape Gent and Heinrich Wandt were attacked
by the militarist right, because of their success in presenting pacifism.
Overall, there was a massive world-wide popular movement which involved tens of
millions of people, still perhaps the biggest in human history. The movement
grew. Key was the Catholic Church which under Benedict XV had opposed WW1
throughout. He described it as a “useless massacre” which did not endear him to
the fighting statesmen, but he was now understood, because it had proved to be
so. This stand of the Catholic Church has never been honoured and was later
trashed into complicity with Hitler, but it was formidable. It mobilized
millions for peace; there were rallies of many thousands well before Hitler
thought of mass rallies.
The
Anglican Church also woke up. People saw the problem was arms and wanted to end
the power of the Merchants of Death, as they came to be known. Cosmo Lang,
Archbishop of Canterbury from December, 1928, backed disarmament throughout the
period as did the Archbishop of York, William Temple. Many other Anglicans and Nonconformists
took a principled stand against the idea of arms for profit and the
proliferation of arms. George V did, so this was an establishment view, not a
fringe protest. The arms traders had
pushed munitions, naval confrontation and military rivalry, but millions lay
dead while the arms manufacturers made their profits. Their weapons were
undeniably evil and they were not popular. Statesmen and millions of ordinary
people sought and worked for world disarmament to make the Great War the War to
end all Wars. The arms companies were going to have to fight hard to get round
disarmament, and they had lost the democratic battle.
The Communist and Socialist Critique.
There
was another level of critique which war and militarism faced. The USSR, vastly
populous, had ended the Great War early. They had declared it a
capitalist-imperialist war, and identified the munitions industry and the
imperial economic expansion as the cause of war in which the workers were
merely treated as cannon fodder – the phrase summed up the hurt of millions of
mothers whose sons had gone to the slaughter. Lenin’s argument against war
spread, and the workers of the world were asked to follow Marx’s cry to unite
against their oppressors. The real war said Lenin was the class war and not
this imperial war. Both sides in the imperial war were out for the same thing,
profits, the advance of capital and the suppression of the workers by force.
Eugene Debs, who won 6% of the Presidential vote in the 1912 election, was
saying the same thing in the States. Keir Hardie, Bernard Shaw and other
Socialists had said it in Britain and Ramsey MacDonald and Philip Snowden
continued to say it. Jaures had said it in France until he was murdered. They repudiated capitalist war and sought to
address the needs of the proletariat.
The
elites of the West were scared – both the old landed aristocracies and the new
capitalists. The Tsar and his family had lost their lives; now aristocratic Russians
were fleeing to the rest of Europe and North America. There was a Red Scare in
the States which was partly a false scare. Churchill as Minister of War after
the War linked up with the White Russians and fought his own personal vendetta
against the Bolsheviks to “murder the baby in the cradle” as he put it. When
the Communists withdrew from the World War, Lenin hoped for an uprising of the
German soldiers against fighting. When Germany was defeated, Rosa Luxemburg and
Karl Liebknecht stood for this emphasis, but they were murdered. Suddenly the
rich and the militarists woke up to the Marxist Leninist and Democratic
Socialist critique of war and weapons, and were scared. In Germany they funded
Hitler and others to beat up the socialists. Yet, millions of workers agreed
with this analysis, especially those who were used to being ordered about in
the same way in the factories and the trenches and could see the link. Many of
the aristocracy feared a socialist attack. Ordinary foot-soldiers had worked
out that the poor sods in the German trenches on the other side were suffering
and ordered about just like them. Was there really a difference between German
nationalism and British nationalism? Was one nation right and the other wrong?
Or were all upholding a corrupt system? The army was class war by another name
and the ordinary soldiers knew domination when they saw it. The Generals gave
orders well behind the Front line, and they were often bad orders and left the
plebs to carry them out and die. They felt no camaraderie with their commanders.
When this bloody war is over, no more soldiering for
me,
When I get my civvy clothes on, oh how happy I shall be.
No more sergeants bawling, ‘Pick it up’ and ‘Put it down’
If I meet the ugly bastard, I’ll kick his arse all over town..
So,
militarism and war were under attack. The Representation of the People Act of
1918 gave all men in Britain over 21 and all women over 30 the vote, and
suddenly most of the workers had arrived in the political system and fuller
democracy was shaping politics. Socialism could not but grow, and with it the
full critique and defeat of militarism was likely. Or perhaps not.
In 1918 the Arms Companies are rich, but out of business and popular political power.
At the
end of the Great War arms companies in several countries were rich with profits
from the War. In Germany, Krupp and Thyssen (who made the steel for the
weapons), Mauser, Bayer (chemical weapons), Rheinmetall and others made big
profits, which were hidden in the Netherlands and elsewhere, but they were
forbidden producing any arms at the end of the War by the Treaty of Versailles.
In France, Schneider and the other companies had been profitable as the State
had backed them to rearm against Germany and had helped finance their exports
to Russia. But it was not clear where they would go after the War. In Italy,
Ansaldo were rich with making arms. They had used Mussolini as their
propagandist and then in 1922 he came to power as leader of the first Fascist
Regime, when militarism was linked with state-supported capitalism. Skoda
emerged from the war quite powerful and linked up with Schneider in
Austro-Hungary to pick up contracts which had previously gone to Germany. But
the real weight was in the United States, which had become the industrial arms
supplier of the Allies during the War, usually through American loans by J.P.
Morgan the great financier of World War One. Du Pont had supplied a vast
quantity of explosives. Remington, Winchester, Browning, Colt, Singer, Naval
Yards and other firms had emerged producing guns and more in an exponentially
expanding market, until the Armistice in November, 1918 and they were now rich
and the main players in Wall Street in the 1920s. During the War these
companies had had a vast, usually conscripted, workforce of men and women
producing weapons allowing big profits; in Britain there were three million
munitions workers and millions more elsewhere, but Lloyd George to his credit
kept arms production profits under control. Overall, though, the arms companies
had loads of money, absolutely no demand and a drastically cut workforce and
industry. How could they recover? It was no easy task. The era of Sir Basil
Zacharoff, the king of the arms trade, was over.
The
arms people were suddenly personae non grata, outside much of the political
system. Wilson and the Versailles Treaty people were serious about disarmament.
The arms manufacturers were not popular. The era of “The Merchants of Death”
had arrived, though the epithet did not appear until 1932. Yet still the fat
arms traders and manufacturers were hated. A contemporary joke sees a child
asking an arms’ manufacturer, “Daddy, what did you do in the War? And the
answer comes, back, “My child, I did everybody.” The conventional political
wisdom was that another major war was not likely for ten or more years. There
would long be a massive surplus of weapons, though many were destroyed in
Beaufort’s Dyke between Scotland and Northern Ireland and elsewhere. Sales
were, and were likely to be for a while, stagnant. Business was nearly dead.
What do you do?
They
slowly developed a strategy. First, they needed allies inside the establishment
– politicians, industrialists and public figures – and they kept those links
well-oiled with money. Then they bought or influenced newspapers, so that they
would present a better image; the air and military links of Lords Rothermere
and Beaverbrook in Britain were obvious. Second, they lay low; they disappeared.
This is why the theme of this study has been so unexamined. The strategy has
now successfully lasted a hundred years; they hid from view. Their marketing
was quiet, their contacts unseen; they operated through proxies and behind the
scenes, they cultivated spokesmen who created a culture where weapons rule benignly
and are good for us. We need to have arms, sell arms, buy more arms, but the
sellers are invisible. When you are disliked and people want to abolish you,
you evaporate, avoid publicity and dampen any moves against you. You wait for
people to forget, even if it takes fifteen years. Even then, the issue really
blew up in 1933-34 with the publication of “The Merchants of Death” and the Nye
Commission in the States, but by that time, they had already won and were back
in charge, though the masses did not know it because it was hidden. The arms
companies had two other strategies. They began planning for the next war and a
changed military strategy gave them new sources of demand. Warships were less
strategic. Planes – bombers and fighters – were obviously coming. Submarines
could develop. So, you worked on these new weapons. This had the added
advantage that it made old weapons, the vast post war stock, semi-obsolete.
Then, fourth, you looked for areas in the world where new tensions might erupt
into war and arms races so that business would pick up. There were two big ones
– China/Japan and the USSR, and arms began flowing again in a small way at
first, but with increases as Fascist-sympathizing and military-dictator small
powers emerged. The fourfold strategy quietly went into operation in most of
the states around the world. The arms
companies competed a bit, but, really, they were on the same side. If one did
well, all did. The new democratic voters did not understand the way power
operated behind the scenes and the rich controlled the newspapers. So, the
military arms complexes in Britain, the United States, Germany, France and the
USSR went quietly about their work.
Conservative Control delayed the Disarmament Conference.
For a
while we focus on Britain, still superficially the main world power. The
British Conservative Party was key at this stage for the militarists. Let us
look back a bit. After the Great War the Liberals fell apart between Lloyd
George and Asquith, and the Tories had to work out how to stay in charge in the
face of the new socialist tranche of voters who could potentially dominate
elections. Labour was coming and winning votes. The Election of 1918 was easy.
By using Lloyd George, the political hero of the War, they got a vast majority
of MPs and split the Liberals. Churchill, still a Liberal at this stage,
strongly supported the army and navy as Secretary of State for War, and there
was plenty for the military to worry about with conflicts in the USSR, Ireland,
Afghanistan, Iran, Turkey and some colonies, but they did not need any more
arms.
The key
was keeping Labour out of power. They learned to prevaricate on disarmament
until December 1923, when they lost to Labour, who formed their first
Government though with no overall majority. The Tories did not easily relinquish
control. They were used to being default Government, the establishment and
intended to stay that way. When the October, 1924 election came, they fixed it
with an astonishing piece of dishonesty – the fake Zinoviev telegram. A fake
telegram, purporting to come from the USSR Minister, Zinoviev, was “acquired”
by the Conservative Party and published in the Daily Mail four days before the
election telling Socialists to “rise up and have a revolution”. The Mail’s
headlines were: CIVIL WAR PLOT BY SOCIALISTS’ MASTERS. MOSCOW ORDERS TO OUR
REDS. GREAT PLOT DISCLOSED YESTERDAY. “PARALYSE THE ARMY AND NAVY” AND MR.
MACDONALD WOULD LEND RUSSIA OUR MONEY! DOCUMENT ISSUED BY FOREIGN OFFICE.
Actually, it was not from Zinoviev. He was on holiday at the time and out of
communication. It got several official labels on the letter wrong. It would
have been mad to send it. It was barking absurd that a Labour Government already
in power democratically a week before an election would receive or welcome a
letter plotting “Civil War”, or that Zinoviev would remotely think of sending
it. It was a forgery and the Foreign Office and Secret Service people, and of
course the Daily Mail were in cahoots with the Tories to fix the election.
Labour was actually resolutely democratic, and distrusted the Soviets, but the
mud stuck, and they lost enough seats to face a new Conservative Government who
resolutely denied it was a fake knowing they were lying. That kept them in
control for five crucial years until 1929, really against the democratic weight
of the electorate. During those years they stalled on disarmament and pushed
the Great Disarmament Conference down the road into the future.
In the
election on the 30th May, 1929 Labour came to power again, though in
a minority government. It geared up the disarmament process, but within a few
months faced the Wall Street Crash and the Great Depression. This massive
failure of capitalism and the subsequent unemployment then dominated much of
politics in the next two years. Nevertheless, The Great Geneva Disarmament
Conference was set up for the end of January, 1932 and tens of millions of
people looked for its success.
Meanwhile,
the Tory establishment struck again in 1931. This was even more extraordinary.
MacDonald, old and quite weary faced a problem. Labour, who obviously had not
caused the Wall Street Crash, were told by the establishment, against the
advice of the world’s best economist – John Maynard Keynes – that they could
neither devalue or provide benefit support to keep the economy from depression.
MacDonald who had been courted by Conservative ladies like Edith
Vane-Tempest-Stewart, Marchioness of Londonderry of Park Lane, had drifted away
from his earlier principles. He was persuaded by the King to be a figurehead
Prime Minister for a “National” Government and desert his own party. It was the
same trick as the Party had used in 1919 with Lloyd-George as figurehead. MacDonald
drifted from fifty years of socialist politics, and really the Conservatives
led by Baldwin were in charge. This was brutally true after the election when
the number of Labour MPs was cut by over two hundred and the Conservatives
gained over two hundred under the National Government banner. Suddenly, the
political support in Government for Geneva was gone. Lord Cecil had resigned
from the Conservative Government in 1926 and was not going to get much backing
now. Though no politician could oppose disarmament because it was so popular,
behind the scenes the militarists were back in control of the Government. The
timing was excruciating. The election was on the 27th October, 1931,
less than ten weeks before the Geneva Disarmament Conference was due to start.
When the new Cabinet was formed, the Marquess of Londonderry, the husband of
Edith Vane-Tempest-Stewart of Park Lane who befriended MacDonald, was in the
Cabinet as Minister for Air. Sir Bolton Eyres-Monsell was First Lord of the
Admiralty. The Viscount Hailsham was
Secretary of State for War and Sir Phillip Cunliffe-Lister was Colonial
Secretary. They were hostile to disarmament and well able to stall its progress.
So, the Cabinet was a coalition consisting of a few Labour people, in
uninfluential jobs, some Liberals, including Sir John Simon as Foreign
Secretary and the quietly dominant Conservative group.
The Arms Companies Get Back to Business in the late 20s.
The
arms companies did not have it all their own way but they had been rebuilding
their businesses. The Germans had been forbidden arms’ manufacture. Much has
been made of their cheating, setting up factories in Russia and elsewhere
through undercover agreements. They allowed research and technical development,
but not too much actual output and their whole wartime production system was
destroyed which was a fundamental blow to the industry. Krupp and other firms’
arms production was closed down quite fully throughout the 1920s, although they
were ready to expand given the opportunity. The Skoda factory took a lot of the
German business in central Europe after an agreement with Schneider-Le Creusot
and began to expand; it would be crucial to Hitler after Munich when he moved
into Czechoslovakia allowing him ready made arms, expanding his munitions
production and technical expertise. In Britain the warship business was in the
doldrums; WW1 battleships would last and seemed less strategic after the Great
War than before. Lots of aircraft manufacturers sprung up, but it was not clear
how civilian and military aircraft might develop; they also developed nearer
London and moved the main arms manufacturing emphasis away from the Northern
shipyards. Many people wanted the bomber banned. Some treaties put a firm
ceiling on warship and other military building, and an understanding of the
“ten-year rule” that no major war could be expected for ten years after 1918
kept military spending down, a principle extended by Churchill in 1928 when he
was Chancellor of the Exchequer. Expenditure was quite constrained. Nobody was
expecting new wars to arrive.
Yet,
the arms companies were working behind the scenes. Tensions between China and
Japan opened up some contracts to supply both sides. Britain, France and the US
still dominated the arms market, and the US was relatively unrestricted. Later
it began to sell not just arms, but arms factories and technologies to
both the USSR and Germany. In the 1920s, apart from a range of colonial revolts
and small conflicts, there were no major wars. The Chinese Civil War began in
1927 and started another source of demand met initially on the Nationalist side
by American arms. But slowly overall the arms companies were getting back to
business.
The
level of strategic organization grew among them. In 1927 three arms companies
paid William Shearer $20,000 for six weeks work to disrupt the Coolidge Naval
Conference on reducing warships. He and others were successful both in creating
national rivalries, especially between the US and Britain, and using them to
prize open new contracts. Lord Cecil, the leader of the disarmers, resigned from
the Government over its failure to agree naval reductions at this conference;
for parity Britain should have reduced its warships from seventy to forty, but
the Conservative Government refused. Churchill and others wanted Britain to
retain the biggest navy, and to be bigger especially that the United States.
They focused on rivalry with the United States and the naval lobby was now well
organized and backed them up, and the Conference collapsed. Armstrong and
Vickers had merged, with big warship yards at Barrow in Furness and on the
Tyne, but even now orders were still slow. When Cecil resigned, he received a
lot of public support among the many voters who were looking for substantial
disarmament. The conflict between the arms companies and the world disarmament
groups moved up a notch. At the same time the post-war surplus of weapons began
to come to an end and demand for military kit was beginning to pick up. The arms companies were also more in control
behind the scenes in several states. Yet, in Britain, the public was strongly
for the League of Nations and against the Conservatives. Some historians
downplay the public commitment and concern for disarmament, but it was the
biggest issue in British politics.
The Peace People Carry on to Geneva.
So,
again, in 1929 the momentum for the Disarmament Conference speeded up. Arthur
Henderson was the Foreign Secretary and he meant business. Planning for the
Great Geneva Disarmament Conference was underway and gathered momentum. The
British Geneva team of Henderson, Lord Cecil and Philip Noel-Baker had massive
popular support. The peace people were determined. They did petitions, rallies,
worked through popular League of Nations Societies and a whole range of other
initiatives. The Women’s International League for Peace and Freedom had grown
from WW1 and in 1932 presented 9 million signatures at Geneva. They quite
reasonably insisted that they were not rearing children to shoot and be shot by
other children as cannon fodder, and of course they were irrefutably right.
Other organisations mobilised for disarmament and peace with big petitions of
several millions. There was a strong Catholic reconciliation movement between
France and Germany. In Britain Baptists, Pentecostals, Anglicans and other
denominations were against militarism and for peace and reconciliation.
Socialists understood that wars were capitalist wars – for the merchants of
death, for imperial conquest and for controlling power. There was a two-tier
dynamic. Lower class women and men were exercising the vote and participating
in politics as never before, but the old guard patriarchal establishments were
still running governments; there was a gulf between the two. The Labour Party
in Britain partly represented this new political force, but it was also a wider
democratic one with Liberal and Conservative voters too opposed to the old
guard, male, political establishment de-populated of talent by World War One.
Cecil and others had deep and wide popular support for disarmament. The old
guard were for the democratic chop, as they were to discover in 1945, but not
yet.
So,
this now-ignored disarmament movement came to a head in the great Geneva
Disarmament Conference of 1932. As it began Noel-Baker describes the support. “The
speakers were impressive personalities, and together their organisations had a
total of more than a thousand million regularly subscribing members – a constituency
in 1932 of almost half the individuals who then made up the human race, and a
good deal more than half the adults.” It had been planned since 1925 and was a
long time coming, but come it did, backed in Britain by the King, archbishops,
church leaders, prime ministers, military leaders and most of the population
and similarly in the States, Latin America and around the world. The wave had
gathered strength and was breaking. The Conference gathered in January, 1932.
Sadly, before it started Nansen, the explorer and humanitarian, died and
Stresemann, the key German politician, was also dead of a stroke – two great
disarmament people. It faced every difficulty.
The Geneva Disarmament Conference – How to do nothing.
When it
came, Geneva was one of the most peculiar political events ever. It began with these
millions of petition signatures, urgent speeches, support from around the world
and then, mainly because of the British, the main Conference stalled into
pointless, detailed, private discussions. As we have noted MacDonald, the British
Prime Minister was the figurehead of a coalition dominated by the Old Tories
and they were really in control just before the Conference. You have to read a
year’s Hansard to really get the flavour. The public and MPs were constantly
asking for information about how the Disarmament Conference was going, and the
Government said almost nothing time after time in a prolonged blah de blah
cover-up of what was happening. It did not want disarmament. Behind the scenes
ministers were agreeing to selling weapons to both Japan and China at the same time;
so they were really backing the arms trade. The key Civil Servants, Hankey and
Vansittart, worked hard to prevent agreement. The armed forces and Churchill
did the same, and the Cabinet papers show they were looking to drift though
without being blamed for the failure they were causing. Sadly, MacDonald as
Prime Minister was an isolated man, dependent on Conservatives and in failing
health. Even worse, Sir John Simon, previously Liberal, was indecisive and
wanting to please his new Conservative colleagues and therefore did nothing,
even though he saw this policy was opening the way for Hitler. He was
preoccupied by the Manchuria crisis and approached Geneva like the games of
chess he so enjoyed playing. The British Government prevaricated, and Sir John
Simon stalled on the next move. As time went on agreement became more
difficult. It was a lamentable tragedy.
Then most energy was expended on moving the blame for failure around to the
French, the Germans and other states. The British were morally in charge, but
the Government froze progress.
Then
President Hoover stepped in with a bold and decisive move in June, proposing
cutting all arms by a third and getting rid of ALL aggressive weapons – all
bombers, submarines, heavy guns and big tanks. Suddenly, there was action, from
the President of the new world superpower. There was enthusiastic acceptance
around the world of his proposals. Is that overstating it? You judge. Russia
welcomed the plan and said the Conference needed to speed up, Germany did,
“with special satisfaction” Italy accepted the Hoover plan “entirely”, as did
Spain. There was a gap of fifteen days and then on July 7th and 8th,
Canada, Belgium, Brazil, Turkey, Cuba, Austria, Norway, the Dominican Republic,
Finland, Hungary, Denmark, Mexico, China, Sweden, Estonia, Switzerland, New
Zealand, Roumania, Persia, Venezuela, Argentine, the Netherlands, Lithuania,
Afghanistan, Colombia, Latvia, Portugal, Bolivia, Bulgaria, Yugoslavia gave it
a warm welcome. Much of the rest of the world was still colonies. The main
absentee was Japan. This was overwhelming support. But Sir John Simon, though
he favoured disarmament, prevaricated. The 500 Tories in the House of Commons
were on the whole hostile to the League and Disarmament and he wanted to keep
on their side. Baldwin made a statement in the Commons with reservations to
hold the line. Superficially, the British Government “accepted” the Hoover Plan
to avoid losing face with the British public, but said they would put counter
proposals. Actually, the Cabinet spent their time discussing how they could
stall them without taking the blame. They were obviously jealous of the United
States emerging as the dominant world power and wanted to protect the Navy at its
present strength to police the Empire. Notice the timing. The German elections
were on the 31st July, three weeks later. Hitler was fulminating
about Germany being treated unfairly. A breakthrough a couple of weeks earlier
would have seen his support plummet. His support dropped in the November
election anyway. The Nazis became the largest party in July mainly because
Britain, France and the other countries had not also disarmed as the Treaty of
Versailles required them to do. It gave him the ammunition which the Hoover Plan
would have eradicated. All Britain needed to do was to say, “Yes”. But the
Hoover Plan for substantial world disarmament was stymied by Britain, and
Hitler made his biggest electoral advance.
The
Disarmament Conference meandered through the rest of the year in a long drawn
out charade of buck-passing. In January 1933 Hitler came to power. After a year
of meeting, the Disarmament Conference was effectively dead. Although the
public around the world still did not realize it, the move to world disarmament
had been defeated by British Tory and military opposition and the arms
companies were off the leash.
Airbrushing Disarmament out of History.
Hardly
anybody now knows about the Geneva World Disarmament Conference, because it has
largely been expunged from our history. It was covered up by the Conservative
Government to mask their failure. They had killed it by sitting on their hands.
They were decisively indecisive. In November 1932 after ten months of dithering
Baldwin made his “The bomber will always get through” speech which was part
despair at failing to implement world disarmament, part asking for a new big
initiative and partly trying to hand over responsibility to the next generation
so that he could avoid it himself. But, in reality, the old generation had stayed
in charge and opened the door again to the arms manufacturers. They believed
Britain needed the biggest Navy so that we could control the Empire when the
natives revolted. It was that pathetic. The whole world was waiting on the
acceptance of President Hoover’s plan, and we Brits were jealous of the United
States usurping our dominant role and so killed world peace. The Tories put the
negotiations into treacle; they kicked it into the long grass so that no-one
would find the ball. When President Hoover found the ball, they kicked it back
into the long grass again while looking the other way. They endlessly discussed delaying in Cabinet.
Sir John Simon funked it and did not know what to do. Lloyd George said that
“Sir John Simon sat on the fence so long that the iron entered his soul” Eden
expressed his contempt for him, and Harold Nicholson, an ally of Churchill,
just called him “a toad and a worm”. It was an appalling event in British
history which opened the way to the Second World War before Hitler came
to power. The Tories just pretended it did not happen and blamed the French..
Then,
later, militarists wanted World Disarmament forgotten as an idea which could
work, because it was the complete danger to their business. Behind the scenes
they had undermined it. They say that disarmament failed but omit the fact that
it “failed” because their guys made sure it failed. In reality, Disarmament did
not fail; it was not tried. It was the failure to disarm which opened the way
to the Second World War, as to the First. The Government was patronizing;
Parliament, the nation and the rest of the world were treated as not capable of
understanding these complex issues. Actually, most people understood that the
world had to escape from nationalist arms races, war and false patriotism, but
the Tories succumbed to it yet again. Because the electorate backed disarmament
so fully, the Conservatives talked peace and disarmament right through to 1938,
but dishonestly. The weight of public support is shown by the Peace Ballot of
1934-5, mounted by Lord Cecil and others. It was a full national referendum
with over 11 million voting. Over 90%, over 10 million, more than actually
voted Conservative in the 1935 election, said they “were in favour of an
all-round reduction of armaments by international agreement” and a similar
number were in favour of “prohibiting by international agreement the manufacture
and sale of armament for private profit”. It was a massive popular vote for
disarmament and curbing the arms trade. The Tories just pretended they were for
peace and disarmament in November 1935 election to keep their vote up. Even
then though Hitler was in power, he did not really have military might until
after Munich in 1938. But by now the arms business people were expanding trade,
selling in Spain, Italy, Japan, China, Germany and the Soviet Union The
military people in Japan, Germany, France and Britain had won the day, when we
could have opened the way to disarmament and peace. So, disarmament was trashed
by the arms people.
The
biggest reason why we do not know about this event is the gloss which has been
put on this interwar history by the militarists. Their version is: there was
World War One caused by the Kaiser and the assassination of Archduke Ferdinand.
Then Hitler came along when the Allies had not properly rearmed, and so World
War Two happened. Actually, both wars were not caused by Germany alone, but by
the militarism and pressure of the arms companies in Britain, the US and
throughout Europe. So, the conclusion, always stay armed so that another Hitler
can’t do the same, is the opposite of the conclusion that should follow. It is
disarmament that ends wars, promotes trust, opens economic opportunities, creates
Budget surpluses, keeps the young alive and opens up world trade. Later, we will see how multilateral world disarmament
was transmuted into “appeasement” to discredit the obvious clear direction that
world politics should have taken. This fake history has dominated western political
ideology, with a few further twists, up to the present. It ignores the facts of
history – Hitler was armed, mainly through American money and arms AFTER
disarmament had been defeated, when disarmament would have prevented him coming
to power and Germany or anyone else rearming. Instead, the arms trade resumed
dominance supplying the Japan-Chinese War from 1932, the Chaco War of 1932-5,
the Italian Invasion of Ethiopia in 1935, the Spanish Civil War of 1936-9 as
well as Germany’s growing militarism after 1933. Arms cause wars, and the
growth of the arms trade transitioned into the Second World War as it gave
Germany the capacity to fulfil Hitler’s ambitions. Even then, he needed considerable
help to have viable armed forces from western banks and arms companies. The Appeasers
then gave him even more help. Hitler, as we shall see in more detail was
funded to re-arm, provided with arms factories, technologies and vast stocks of
actual weapons by the powers who would be fighting him in the Second World War.
It was wider western militarism and arms which empowered Hitler. Proper
disarmament ends wars, but it remained untried and again arms won
through into the worst war of all. Soon the arms companies got their Second
World War in a bonanza of arms deals.
The
Conference was also weakened by other factors. The Japanese military-dominated regime
had invaded Manchuria, breaking the basic rule of the League of Nations. Yet, Britain was selling arms to both the
Japanese and Chinese and so hypocritically voicing their concern at the war and
moderating criticism of the Japanese. Another factor was that the Arms
Companies had agents and allies to prevent agreements, and the various military
people at the Conference worked against disarmament. Hankey and Vansittart, the
main Civil Servants involved, did all they could to undermine it. But mainly it
was the Cabinet members linked to the armed forces and arms companies. If Sir
John Simon had worked with Hoover and the United States, disarmament would have
happened. All aggressive weapons – bombers, howitzers, tanks and submarines –
would have been prohibited, and the rest cut by a third immediately. Hitler
storming about the unfairness of the Versailles outcome, would have had nothing
to rant about and would have to show his armpits to the doctor. Even without
disarmament his support was down by two and a quarter million votes and thirty
four seats in the November election. The German delegation at the Conference
were gleeful that a successful outcome would see Hitler off. But it did not
happen. When in January 1933 the Oxford Union voted overwhelmingly that “This
House would not fight for King and Country” it was voting its contempt at the
handling of the Geneva Disarmament Conference. Ordinary people in the world did
not understand what had happened, because the Conference just stalled. They
continued to believe disarmament must take place, when it was being blocked in
secret by politicians committed to doing nothing. The arms companies had won
and soon they would be quietly back in business. When World War Two came,
disarmament was off the agenda, as it turned out more or less permanently, but
nobody understood how it had happened.
Hitler, the product of the Arms Traders.
Also
ignored is the fact that Hitler moved to a position of strength through the
arms industry. The key early figure was Fritz Thyssen, head of the United Steel
Works, the biggest company in Germany. It was responsible for much of the steel
production of World War One and had links into various arms manufacturing
businesses. He and they wanted German military production opened up again,
against the disarmament requirements of the Versailles Treaty. He linked with
Hitler in 1923 when Thyssen had opposed the French invasion of the Ruhr and
Hitler mounted the Kapp Putsch in Munich. Thyssen fed Hitler funds which kept
the Nazi Movement going through the lean years of the twenties. After 1929 when
the Nazis were growing, he backed them further and persuaded other
business/armaments people, now including Krupp, to support the Nazis through
into power. He probably gave them somewhere between 650,000 and a million
marks. A key meeting was in November 1932, when the Geneva Disarmament
Conference was failing, when he, as a senior businessman, and Hjalmar Schacht,
the banker, and other businessmen wrote to the German President, Paul von
Hindenburg, asking him to appoint Hitler as Chancellor, which in due time he
did. Thyssen regretted his support of the Nazis and broke with them later to
his cost, for he spent time in a concentration camp but the damage created by
his donations was done. Hitler looked the best way forward for the suppressed
German arms industry and they backed him. Arms made the man into the Fuhrer.
The Arms Traders are back in Business.
People
do not seem to ask the obvious question of how Hitler in seven short years was
able to move from the position where Germany was in acute depression with
millions of unemployed and relatively little arms production to overrunning
Europe. It was not that he was brilliant. The case is even more difficult to
make when the scale of the problem is addressed. So, if the British/French
share of the worldwide tank market between 1930-9 was 54% and the German under
5%, you would not expect the Nazis to blitz through France in 1939. The Germans
had clandestine production systems and the Reichswehr was planning on
expansion, but its military spending was very low. As Churchill notes, “Up till
1934 at least German rearmament could have been prevented without the loss of a
single life.”[ii]
The
answer is one we do not like. After the failure of Geneva and after Hitler came
to power in January 1933 when military spending was very low, the Nazis were able to import arms from the Netherlands,
Belgium, Sweden, France, the US and even Britain. More than this, the funding
for these arms was supplied mainly by the United States through the Harriman
Bank and also with help from the Governor of the Bank of England, Montague
Norman. A French firm sold 400 tanks to Hitler even when the French Government
was contesting the German right to rearm; they were shipped through Holland to
avoid suspicion. British Armstrong-Siddeley aero engines were exported to
Germany in April 1934, giving the Germans fifteen years of British Government
air research.[iii]
Often arms trading was disguised or undeclared so that the industry became a
law unto itself, despite attempts to contain it. American companies flocked to
Berlin to sell Hitler arms and factories; there were more than a hundred US
companies prepared to manufacture and sell military hardware, even on the terms
that they did not repatriate profits but reinvested in Germany. Ford, who had
funded Hitler in the 1920s, now provided factories for military vehicles.
Others, like Du Pont, were investing in arms related businesses which would
allow profitable expansion while the US was in recession and they were
sidelined by Roosevelt’s New Deal. German preparedness for war depended on this
investment, arms imports and American factories – three levels of military
support. People focus on the fact that Ford, Harriman, the Dulles brothers and
Prescott Bush were linked with Hitler, but ignore why they were linked. The
banking/arms industry in Germany at this time seemed lucrative and worth big
investment and, as a consequence, German military power surged through US funds
seeking profits. While arms factories in Germany were forbidden, Germany had
also set up factories in the USSR and Sweden linked to Krupp and other German
companies; the arms business was a stronger link than ideology. Then the invasion
of Czechoslovakia in October, 1938 also gave them the Skoda works and its large
munitions output to complete the military package. The military expansion based
on American loans gave the domestic economy the boost to take it out of
recession. We look at it more thoroughly shortly.
No, Appeasement is Different.
You are
now entering a historical black hole. The history of disarmament has been
covered up and papered over by those who want it to disappear. Mainly, one word
has done it – “Appeasement”. Churchill was against Appeasement and Disarmament
is Appeasement – End of Discussion. This is a travesty of history and of
Churchill, who had to fight appeasement in his own party and even his own
family. “Appeasement” was right-wing British leaders running the Conservative
Government in 1938-9 who were pro-Nazi and soft on the military in Germany even
when war was likely, because they were worried about socialism. Britain was
rearming fast at the time, so it was not really the arming issue but about
shared right wing sympathies and going along with the expansion of the arms
trade, including to Germany.
Churchill
saw Hitler coming, but so, too, did everyone at the Disarmament Conference.
Even Sir John Simon knew disarmament would sideline the Nazis for ever, but he
did not do it. Churchill was, of course, against disarmament and was one of the
British politicians undermining the Conference, though he was outside the
Cabinet. In his view we needed a strong
Navy and Air Force to police the Empire and disarmament was unthinkable.
Churchill was a militarist. He had bombed the Kurds in 1919 and was the most
imperialist of the Tories. This pro military and navy view also held within the
Cabinet. So, the Empire won in 1932. But this was not against appeasement. In
1932 the problem was not German aggression and armament; in fact, Lord
Londonderry argued in Cabinet in July 1932 that the danger was the French
could attack with superior air-power.
Five years later, Germany had come through, was aggressive, bullying and
arming. Yet the “Big Four” running the Conservative Government – Chamberlain,
Sir John Simon, Hoare and Halifax, as well as Londonderry and, of course,
Moseley, thought we should still ally with Hitler, and so Chamberlain returned
from Munich waving the piece of paper and looking an idiot. That was appeasement, and Appeasement was not
Disarmament. In fact, the events descended into farce. “Appeasement” was worse
than that; Chamberlain opened the door to Hitler’s military success. The arms
Hitler gained from Czechoslovakia, especially from the Skoda works, were
sufficient to arm half the Wehrmacht. They included 2000 field guns and cannon, 469
tanks, 500 anti0aircraft guns, 43,000 machine guns, 1,090,000 military rifles,
114,000 pistols, about a billion rounds of small-arms ammunition, and 3 million
rounds of anti-aircraft ammunition. Appeasement armed Hitler magnificently And disarmed
nobody. Those weapons made the Nazis a military machine, and now they could
make more. Arms trade militarism had won again and the Second
World War was arriving. Of course, Churchill was right in the late 30s, but by
then proliferating arms in the hands of Fascists in Germany, Italy, Japan and
elsewhere made conflicts inevitable. Appeasement grew out of the cameraderie of
the capitalist, militarist, pro-Fascist classes across Europe. It was topped by
the Governor of the Bank of England, Montagu Norman. He was friendly with Hitler’s
banker, Hjalmar Schacht, and in March 1939 when Hitler had invaded Czechoslovakia
against the Munich agreement, he transferred £5.6 million (at 1939 prices) from
the Czech to the German account, and tried to move over more in June. The same
kinds of links were also present in the States.
An American Political Slant – Corporatist Capitalism.
If
Britain was an unsuccessful home for peaceful democracy, what of the States?
Let us go back and look at its history through the period. Really, it had
emerged as the dominant world power. By 1918 the American economy was several
times bigger than Britain’s and the fastest growing economy in the world as
immigrants poured in at about a million a year. Resources were opening up, oil
became abundant, and the Midwest prairies produced their vast crops. But American
capitalism had been turned by the Great War in two respects. First, the arms
companies had grown faster than the others and were quite dominant among the
New York Capitalist elite. They were used to running the show and running
Washington politics. In the twenties they controlled both political parties,
dominated the world economy and knew only expansion, even while Europe still
struggled. They knew their companies could rule the world and Wall Street ran
Washington.
The
States withdrew from the Treaty of Versailles and the League of Nations when
President Wilson had been its chief author. Wilson was very ill, and Cabot
Lodge mounted a strong attack on him. Overall, the US seems to have withdrawn
so that it would not have constraints on its national policies. The Republican
opposition to Wilson, however, represented a group of East Coast business
leaders and bankers, many of whom had made a lot of money from the War. They wanted
nothing to do with Wilson’s emphasis on Disarmament and were shaping policy in
their terms. The two biggest companies were J P Morgan, the banker of the First
World War and Du Pont who provided 40% of the total wartime explosives. In 1919
the Du Ponts bought up General Motors. There was a “Red Scare” confrontation
with the unions to try to see off the threat of the workers organizing against
employers. The bosses would demonize Communism for a lifetime. The big arms
companies like Du Pont and Remington now had lots of profits, but for the next
fifteen years little demand for weapons. Remington were also annoyed that the
new USSR did not pay for all the weapons the Tsar had bought. The USA wanted
the vast debts for the arms it had supplied paying back; J.P. Morgan insisted
on it. The German money had to go from Germany to Britain and France to be
passed on to the US bankers to receive their repaid debts. As a result, they
had more funds than they knew what to do with and lent it back to Germany,
especially around the Dawes Plan. Really J P Morgan and Wall Street were
running the European economic agenda in the 1920s..
Then in
1929 American capitalism faced the crisis of the Wall Street Crash. Often the
big capitalists like Du Pont had got out in time and had vast amounts of
capital. They bought up other businesses, but much of their capital could not
easily be used in the domestic US economy in recession and they looked abroad
again. They were already deeply engaged in financing the German economy and had
Fascist sympathies, so money flowed to Germany and its rearmament, and also
interestingly to the USSR; politics was no barrier to business and Stalin paid
in gold.. They were still running the show internationally Meanwhile, the money
flowed again into Germany.
Pro-Nazi American Business.
Being
linked with Hitler is normally presented in conspiracy terms; because by 1945
he was so toxic, the links were buried fast and the charges obscured, but it
was not really like that. Through the 1920s American investment poured into
Germany though the Dawes Plan, and banks and industrial links, so that the big
American companies like Morgan, Du Pont, Rockefeller and Ford, and as a result
German industry in 1929 had bounced back from the great recession after World War
One including the collapse of the Mark partly through American help, and of
course the US companies and banks received their profits. The 1929 Wall Street
Crash froze things for a while, and as the conspiracists rightly point out,
Fritz Thyssen and Vereinigte Stahlwerke funded Hitler and the Nazis having received
big loans from the Harriman Bank, and helped Hitler to power in late 1932. So,
the US capitalist elite were “naturally” linked with the German business
community and their business was making money and they would support right wing
politics which would keep socialism suppressed.
The
Dulles brothers, Avril Harriman and Prescott Bush were part of this pattern.
Moreover, in January 1933, as Hitler came to power, so too did Franklin Delano
Roosevelt who was implementing a business-hostile New Deal. As he noted in his
inauguration speech, Jesus chased the money changers out of the Temple, and he
implied that he would follow Jesus’ example, and so the business people looked
to Germany, as Hitler came to power. They had no constraints on their
international business and they were already heavily invested in Germany. When
Hitler asked for financial support, especially through Hjalmar Schacht, who had
links to American bankers (and Montague Norman, the Governor of the Bank of
England) the bankers moved to support Hitler with further loans. Through these
links some $3 billion was transferred to the Nazi Government. Meanwhile the big
American firms looked to expand their investment in Germany and that included a
whole load of military applications in chemicals, military vehicles, weapons
and fuels. They were American soft Fascists, the leaders of the large companies
who were against socialism, communism and labour power.
For
them 1933 was just carrying on their investments worldwide. The US-German
population provided links, and there were explicit Nazi supporters, like the
German-American Bund, but they were not important. The Business people were
used to running the show and thought they could control Hitler. They found
Mussolini interesting and provided the financial links for those who were
investing in Nazi Germany and Fascist Italy. Hitler, initially, would seem
benign to them, a pro-business right-wing politician who would do what business
told him to. In one of the most suppressed bits of American history, they
actually tried a US Fascist coup attempt in 1934, sometimes called “the
business plot”, against the “Socialist” Roosevelt, but it failed thanks to the
whistle blowing of General Smedley Butler. So Fascism was part of the US business
culture and the links with Germany natural.
As
Hitler’s political agenda unfolded, they had a problem. They were already in,
though banks, companies, The Harriman Bank was the main channel to Germany. It
had long been lending funds to Thyssen, Hitler’s patron, and as Hitler moved to
power, it became the conduit for heavy US loans funding Nazi economic
development. The German economy, now heavily geared to militarism was given a
massive impetus by this American money, especially through the Harriman Bank. Its
key representative was Prescott Bush, father and grandfather of the later
Presidents. His dealings have been erased from the archives. Hitler knew he
would rely on loans, and he dd not care about repaying them. Indeed, the Nazis
stipulated that profits would not be withdrawn from Germany, tying the
Americans in. So American, and British, capitalists heavily funded the Nazi
push towards the Second World War. They “merely” continued the agenda they had
set up in the 1920s of tapping into the well advanced German industrial development
and co-operating with their own kind in Germany.
Sadly,
their own kind were Hitler, Thyssen, Schacht, I.G. Farben and the corrupt Nazi
military system and rearmament right up to and into the Second World War. Since
this part of American history is so covered up, it is worth quoting a letter
from the American Ambassador, William Dodd in Berlin to Roosevelt, describing
the problem in October, 1936 when Hitler was rearming fast, attacking the Jews,
holding the Nuremburg rallies, occupying the Rhineland, fighting the Spanish
Civil War in support of another Fascist and had an election when 99% of the
people voted Nazi. You could hardly mistake what was going on. Dodd said, “At
the present moment more than a hundred American corporations have subsidiaries
here or cooperative understandings. The DuPonts have three allies in Germany
that are aiding in the armament business. Their chief ally is the I. G . Farben
Company, a part of the Government which gives 200,000 marks a year to one
propaganda organization operating on American opinion. Standard Oil Company
(New York subcompany) sent $2m here in December 1933 and has made $500,000 a
year helping Germans make Ersatz gas for war purposes; but Standard Oil cannot
take any of its earnings out of the company, except in good. They do little of
this, report their earnings at home, and do not explain the facts. The
International Harvester Company President told me their business here rose 33%
a year (arms manufacture, I believe), but they could take nothing out. Even our
airplanes people have secret arrangements with Krupps. General Motor Company
and Ford do enormous businesses here through their subsidiaries and take no
profits out…” The scale on which US capitalists funded and armed Hitler in his
preparations for war is obvious, but now hidden by those who want to push more
arms at us. The obvious conclusion is that US was the main facilitator of
Hitler and the Nazis in constructing their military infrastructure and fighting
the Second World War.
We even
have to go a stage further. Though Roosevelt sympathized with Churchill and
Britain, those he was surrounded by and the powerful American capitalists of
Wall Street were so closely tied to Germany by loans and business links that America
not only did not enter the War on the side of Britain and France, but probably would
not have entered without Pearl Harbour. The gloss on this period is that the
United States was “isolationist”, but it was probably more true that the German
links made siding in the War impossible. Roosevelt did not have the power or
the mandate to act against Germany as he and Churchill knew. Pearl Harbour and
the German declaration of War against the US allowed Roosevelt to enter the
War, otherwise the US would have stayed out for a lot longer and certainly did
not see itself as Britain’s ally. The German industrial and banking links to
Wall Street were powerful pressures the other way and the Harriman conduit continued
lending money to the Nazis and contributing to the Nazi War effort through
1939, 1940 and right up to, and even beyond, Pearl Harbour in December 1941.
The Full Picture – Fascism was a world problem.
There
were other bits to the picture of Militarism and Fascism we have not painted.
In Italy Mussolini was employed by and worked for the arms company Alsaldo who
supported him in his rise to power and he stayed linked to the arms business,
especially in the Abyssinia War. In Japan arms production and militarism were linked
in to the Zaibatsu, the dominant capitalist companies, after Britain and others
had armed Japan before WW1 and this link defeated democracy and dominated
Japanese policy in its invasion of China through to Pearl Harbour. In France Le
Croix de Feu, formed by WW1 veterans which had a million members in the mid-30s,
and L’Action Française, together with a load of anti-democratic leagues had a
riot on the 6th February, 1934, which at least seemed intent on
overthrowing the Government. The Vichy regime in France after the invasion was
partly Hitler’s recognition of this Fascist tradition. In Spain after the Civil
War, in which General Franco was backed by European arms companies and right-wing
regimes, his Fascist control stayed for decades more, backed by the army.
Obviously, these groups were in sympathy with the arms industries. In Britain
Moseley’s Fascists, whom we have not yet mentioned, were a strong presence and
had sympathizers among Conservative politicians and the aristocracy. Moseley
was Lord Curzon’s son in law and committed adultery with his mother-in-law – a nice
guy. Churchill had deep problems with Tory Fascists right through to Hess’s intercepted
flight to the Duke of Hamilton. There were Fascist Movements in power, or
attempting to be, in Argentina, Austria, Bulgaria, Chile, Greece, Hungary,
Peru, Portugal, Poland and many more.
All of
these movements partly had their origins with the fighting people of World War
One, often soldiers with PTSD and perhaps no jobs. Millions had learned to
fight and it did not suddenly stop with the armistice. But they were also often
funded and encourage by the arms industry and fuelled by exaggerating distrust
of the workers, often with vigilante groups to stir up trouble. Alongside the
long struggle of the big arms companies to reassert their business against the
possibility of disarmament, this widespread remilitarization in the 1930s
shaped the formation of the Second World War. Chamberlain and the other
appeasers at the end of September 1938 thought that he could do a deal with
Hitler because they were held together with right wing sympathies. Fascism was
not just a problem in Germany, but world-wide. All of these groups were
militarists and allowed the arms companies to be dominant by 1939 as they were
1914. The cause of both World Wars was the same – militarism and Fascist regimes
which trusted in militarism. In 1939 Hitler was an especially vicious version
of this militarism.
CONCLUSION: ARMS, NOT APPEASEMENT, GENERATED WORLD WAR TWO.
We are
therefore required to conclude that the banking, industrial and military
companies of the West and their political representatives colluded in the
build-up to the Second World War by pushing the industry of war. They were the
Merchants of Death, and gradually they were allowed back in business. More than
this, we see the full tragedy of the events leading up to World War Two. The
Tories postponed the Geneva Disarmament Conference between 1924 and 1929 when
the arms companies were weak. The Conference occurred when the Tories were
dominant in the National Government and could undermine the Hoover Plan. A
Disarmament Agreement would have prevented Hitler coming to power. The heavy US
support for the Nazi militarization through loans and armaments, including factories
for arms further generated the coming Holocaust. The effects of these loans and
exports were world-changing. We ask how Germany moved from an economy on its
knees in 1932/3 to one able to defeat and subdue Europe in 1939, the answer is
mainly that the Nazis were enabled by finance and munitions from the United
States. The help of banks and munition companies, often with Fascist
sympathies, made the Nazis able to fight the Second World War. The munitions
companies also encouraged and funded Fascism in many other countries, helping
create the chaos that supposedly required arms to sort them out. Thus, the
process of funding and promoting arms sales defeated the great peace and
disarmament movement of the early 1930s in Britain and the US, as well as
Japan, Germany, Spain and elsewhere.
Both
World Wars had the same main cause – those who pushed munitions and made money
out of them and profited from war. The Second World War was formed against
large populations in most major countries avid for peace and disarmament. Few
people actually understood how capital and the arms companies had undermined
disarmament and opened the door to World War Two. American funding of the Nazis
carried on right up to Pearl Harbour. The Fascist sympathizers including the
Dulles brothers became part of the US wartime Government and gradually eased
out Henry Wallace, the Vice President, and ran the US government at the end of
the War after FDR died. Truman was a suitable small-town sympathizer brought in
to close down Roosevelt’s attack on American capitalism and the power of the
military-industrial complex and people were taught to forget the arms traders
and Fascist sympathizers and focus on the Communist threat. Even though the Second
World war was against Fascism, the Western pro-Fascist, capitalist,
pro-military power bloc stayed in charge in the United States.
The World’s Biggest Ever Industrial Complex.
The
War was an awesome confrontation. The
Allies eventually won the Second World War in the greatest military drama in
human history. The West conveniently forgets that the USSR undertook the bulk
of the fight against the Nazis on the eastern front, but “we” won the War. The
actual victory over Hitler and Fascism was such a dominant story that we ignore
another reality as the normal consequence of war. Munitions became the biggest
industry in the world, winning the War, and dominating more than a decade of
industrial development, really from 1933 to the end of 1945. At the end of this
period the munitions industry was vast in all major states. The military
machine amounted to perhaps more than a quarter of the entire world economy,
the biggest industrial complex the world had ever seen. The Second World War
created a militarized world with mega arms companies, enormous armies, bases
throughout the world and a generation whose business was fighting. Of course,
it was going to shrink, but it is the elephant in the room of modern history
and we ignore it. A massive
organizational change took place in the ten years of the War and its
preparation. During this period arms companies, defence departments, scientific
research, technological direction, the military establishments, transport,
information gathering and many other areas of life were all integrated into the
military machine. Such a vast establishment was not going to disappear,
especially in the victorious nations, without serious planning to oppose its
power. It was to drive for its place in the continuing post-war world, and it
won. But that is another story.
B Zieman German Pacifism in the 19th and 20th
centuries [Neue Politisch Literature: 2015 415-37] http://eprints.whiterose.ac.uk/112987/1/Pazifismus_NPL.pdf p16
[ii] Churchill Winston The Second
World War Vol 1 (London: Cassell, 1948) 40
[iii] Noel-Baker Philip The Private Manufacture of
Armaments (London:Gollancz, 1936) 195
There are other
points not footnoted here, but they are covered in my book Alan Storkey War or
Peace? (Cambridge: Christian Studies Press, 2015) £12