-Caveat Lector- from alt.conspiracy ----- As always, Caveat Lector. Om K ----- TRAGEDY AND HOPE Chapters XII-XIII by Dr. Carroll Quigley ISBN 0913022-14-4 CONTENTS I. INTRODUCTION: WESTERN CIVILIZATION IN ITS WORLD SETTING II. WESTERN CIVILIZATION TO 1914 III. THE RUSSIAN EMPIRE TO 1917 IV. THE BUFFER FRINGE V. THE FIRST WORLD WAR VI. THE VERSAILLES SYSTEM AND RETURN TO NORMALCY 1919-1929 VII. FINANCE, COMMERCIAL POLICY AND BUSINESS ACTIVITY 1897-1947 VIII. INTERNATIONAL SOCIALISM AND THE SOVIET CHALLENGE IX. GERMANY FROM KAISER TO HITLER 1913-1945 X. BRITAIN: THE BACKGROUND TO APPEASEMENT 1900-1939 XI. CHANGING ECONOMIC PATTERNS XII. THE POLICY OF APPEASEMENT 1931-1936 XIII. THE DISRUPTION OF EUROPE XIV. WORLD WAR II: THE TIDE OF AGGRESSION 1939-1941 XV. WORLD WAR II: THE EBB OF AGGRESSION 1941-1945 XVI. THE NEW AGE XVII. NUCLEAR RIVALRY AND COLD WAR, AMERICAN NUCLEAR SUPERIORITY 1950-1957 XVIII. NUCLEAR RIVALRY AND COLD WAR, RACE FOR THE H-BOMB 1950-1957 XIX. THE NEW ERA XX. TRAGEDY AND HOPE: THE FUTURE IN PERSPECTIVE CHAPTER XII: THE POLICY OF APPEASEMENT 1931-1936 Page 559 The structure of collective security was destroyed completely under the assaults of Japan, Italy and Germany who were attacking the whole nineteenth century way of life and some of the most fundamental attributes of Western Civilization itself. They were in revolt against democracy, against the parliamentary system, against laissez-faire and the liberal outlook, against nationalism (although in the name of nationalism), against humanitarianism, against science and against all respect for human dignity and human decency. It was recruited from the dregs of society. Page 560 During the nineteenth century, goals were completely lost or were reduced to the most primitive level of obtaining more power and more wealth. But the constant acquisition of power or wealth, like a narcotic for which the need grows as its use increases without in any way satisfying the user, left man's "higher" nature unsatisfied. Page 561 Germany could have made no aggression without the acquiescence and even in some cases the actual encouragement of the "satisfied" Powers, especially Britain. THE JAPANESE ASSAULT, 1931-1941 The similarity between Germany and Japan was striking: each had a completely cartelized industry, a militaristic tradition, a hard- working population which respected authority and loved order, a facade of parliamentary constitutionalism which barely concealed the reality of power wielded by an alliance of army, landlords, and industry. Page 562 The steady rise in tariffs against Japanese manufactured goods after 1897 led by America served to increase the difficulties of Japan's position. The world depression and the financial crisis hit Japan a terrible blow. Under this impact, the reactionary and aggressive forces were able to solidify their control and embark on that adventure of aggression and destruction that ultimately led to the disasters of 1945. Page 563 Separate from the armed forces were the forces of monopoly capitalism, the eight great economic complexes controlled as family units knows as "zaibatsu" which controlled 75% of the nation's wealth. By 1930, the militarists and zaibatsu came together in their last fateful alliance. Page 569 Japan's unfavorable balance of trade was reflected in a heavy outflow of gold in 1937-1938. It was clear that Japan was losing its financial and commercial ability to buy necessary materials of foreign origin. The steps taken by America, Australia, and others to restrict export of strategic or military materials to Japan made this problem even more acute. The attack on China had been intended to remedy this situation by removing the Chinese boycott on Japanese goods. Page 570 Under the pressure of the growing reluctance of neutral countries to supply Japan with necessary strategic goods, the most vital being petroleum products and rubber, it seemed that the occupation of the Dutch Indies and Malaya could do much to alleviate these shortages but which would lead to an American war on Japan. They decided to attack the United States first. THE ITALIAN ASSAULT, 1934-1936 Page 571 In 1922, the Fascists came to power in a parliamentary system; in 1925 it was replaced by a political dictatorship while the economic system remained that of orthodox financial capitalism; in 1927 an orthodox and restrictive stabilization of the lira on the international gold standard led to such depressed economic conditions that Mussolini adopted a much more active foreign policy; in 1934 Italy replaced orthodox economic measures by a totalitarian economy functioning beneath a fraudulent corporate facade. Italy was dissatisfied over its lack of colonial gains at Versailles and the refusal of the League to accede to Tittoni's request for a redistribution of the world's resources in accordance with population needs made in 1920. In a series of agreements with Austria and Hungary known as the "Rome Protocols," the Austrian government under Engelbert Dollfuss destroyed the democratic institutions of Austria, wiped out all Socialist and working-class organizations, and established a one-party dictatorial corporate state at Mussolini's behest in 1934. Hitler took advantage of this to attempt a Nazi coup in Austria, murdering Dollfuss in July 1934 but he was prevented by the quick mobilization of Italian troops on the Brenner frontier and a stern warning from Mussolini. Page 572 Hitler's ascension to office in Germany in 1933 found French foreign policy paralyzed by British opposition to any efforts to support collective security or to enforce German observation of its treaty obligations by force. As a result, a suggestion from Poland in 1933 for joint armed intervention in Germany to remove Hitler from office was rejected by France. Poland at once made an non-aggression pact with Germany and extended a previous one with the Soviet Union. In 1934, France under Jean Louis Bathou, began to adopt a more active policy against Hitler seeking to encircle Germany by bringing the Soviet Union and Italy into a revived alignment of France, Poland, the Little Entente, Greece and Turkey. Page 573 France's Laval was convinced that Italy could be brought into the anti-German front only if its long-standing grievances and unfulfilled ambitions in Africa could be met. Accordingly, he gave Mussolini 7% of the stock in the Djibouti-Addis Ababa Railway, a stretch of desert 114,000 square miles in extent but containing only a few hundred persons (sixty-two according to Mussolini) on the border of Libya, a small wedge of territory between French Somaliland and Italian Eritrea, and the right to ask for concessions throughout Ethiopia. While Laval insisted that he had made no agreement which jeopardized Ethiopia's independence or territorial integrity, he made it equally clear that Italian support against Germany was more important than the integrity of Ethiopia in his eyes. France had been Ethiopia's only friend and had brought it into the League of Nations. Italy had been prevented from conquering Ethiopia in 1896 only by a decisive defeat of her invading forces at the hands of the Ethiopians themselves, while in 1925, Britain and Italy had cut her up into economic spheres by an agreement which was annulled by a French appeal to the League. Laval's renunciation of France's traditional support of Ethiopian independence brought Italy, Britain and France into agreement on this issue. Page 574 This point of view was not shared by public opinion in these three countries. Stanley Baldwin (party leader and prime minister) erected one of the most astonishing examples of British "dual" policy in the appeasement period. While publicly supporting collective security and sanctions against Italian aggression, the government privately negotiated to destroy the League and to yield Ethiopia to Italy. They were completely successful in this secret policy. The Italian invaders had no real fear of British military sanctions when they put a major part of their forces in the Red Sea separated from home by the British-controlled Suez canal. The British government's position was clearly stated in a secret report by Sir John Maffey which declared that Italian control of Ethiopia would be a "matter of indifference" to Britain. This opinion was shared by the French government too. Unfortunately, public opinion was insisting on collective sanctions against the aggressor. To meet this demand, both governments engaged in a public policy of unenforced or partially enforced sanctions at wide variance with their real intentions. Foreign Secretary Samuel Hoare delivered a smashing speech to support sanctions against Italy. The day previously he and Anthony Eden had secretly agreed with Pierre Laval to impose only partial economic sanctions avoiding all actions such as blockade of the Suez canal. Page 575 A number of governments including Belgium, Czechoslovakia, France and Britain had stopped all exports of munitions to Ethiopia as early as May 1935 although Ethiopia's appeal to the League for help had been made on March 17th while the Italian attack did not come until October. The net result was that Ethiopia was left defenceless and her appeal to the US for support was at once rejected. Hoare's speech evoked such applause from the British public that Baldwin decided to hold a general election on that issue. Accordingly, with ringing pledge to support collective security, the National government won an amazing victory and stayed in power until the next general election ten years later (1945). Although Article 16 of the League Covenant bound the signers to break off all trade with an aggressor, France and Britain combined to keep their economic sanctions partial and ineffective. The imposition of oil sanctions was put off again and again until the conquest of Ethiopia was complete. The refusal to establish this sanction resulted from a joint British-French refusal on the grounds that an oil sanction would be so effective that Italy would be compelled to break of its was with Ethiopia and would, in desperation, make war on Britain and France. This, at least, was the amazing logic offered by the British government later. Page 576 Hoare and Laval worked out a secret deal which would have given Italy outright about one-sixth of Ethiopia. When news of this deal was broken to the public, there was a roar of protest on the grounds that this violated the election pledge made but a month previously. To save his government, Baldwin had to sacrifice Hoare who resigned on December 19 but returned to Cabinet on June 5 as soon as Ethiopia was decently buried. Laval fell from office and was succeeded by Pierre Flandin who pursued the same policy. Ethiopia was conquered on May 2 1936. Sanctions were removed in the next two months just as they were beginning to take effect. The consequences of the Ethiopian fiasco were of the greatest importance. The Conservative Party in England was entrenched in office for a decade during which it carried out its policy of appeasement and waged the resulting war. The US passed a "Neutrality Act" which encouraged aggression, at the outbreak of war, by cutting off supplies to both sides, to the aggressor who had armed at his leisure and to the victim as yet unarmed. Above all, it destroyed French efforts to encircle Germany. CIRCLES AND COUNTERCIRCLES, 1935-1939 Page 577 The remilitarization of the Rhineland in violation of the Versailles Treaty was the most important result of the Ethiopian crisis. Page 578 In order to destroy the French and Soviet alliances with Czechoslovakia, Britain and Germany sought to encircle France and the Soviet Union in order to dissuade France from honoring its alliances with either Czechoslovakia or the Soviet Union and France, finding itself encircled, dishonored its alliance with Czechoslovakia when it came due in 1938. Page 579 The British attitude towards eastern Europe was made perfectly clear when Sir John Simon demanded arms equality for Germany. Adding to the encirclement of France was the Anglo-German Naval Agreement of June 1935. Page 580 Parallel with the encirclement of France went the encirclement of the Soviet Union known as the anti-Comintern Pact, the union of Germany and Japan against Communism. The last encirclement was that against Czechoslovakia. Hungary and Germany were both opposed to Czechoslovakia as an "artificial" creation of the Versailles Conference. The Polish-German agreement of 1934 opened a campaign until the Polish invasion in 1938. An analysis of the motivations of Britain in 1938-1939 is bound to be difficult because the motives of government were clearly not the same as the motives of the people and in no country has secrecy and anonymity been carried so has been been so well preserved as in Britain. In general, motives become vaguer and less secret as we move our attention from the innermost circles of the government outward. As if we were looking at the layers of an onion, we may discern four points of view: 1) the anti-Bolsheviks at the center; 2) the "three-bloc-world" supporters close to the center; 3) the supporters of "appeasement" and 4) the "peace at any price" group in peripheral position. Page 581 The chief figures in the anti-Bolshevik group were Lord Curzon, Lord D'Abernon and General Smuts. They did what they could to destroy reparations and permit German re-armament. This point of view was supported by the second group, the Round Table Group, and came later to be called the Clivenden Set which included Lord Milner, Lord Brand (managing director of Lazard Brothers, international bankers). This group wielded great influence because it controlled the Rhodes Trust and dominated the Royal Institute of International Affairs. They sought to contain the Soviet Union rather than destroy it as the anti-Bolsheviks wanted. They advocated a secret alliance of Britain with the German military leaders against the Soviet. Page 583 Abandoning Austria, Czechoslovakia and the Polish Corridor to Germany was the aim of both the anti-Bolsheviks and the "three-bloc" people. Page 584 From August 1935 to March 1939, the government built upon the fears of the "peace at any price" group by steadily exaggerating Germany's armed might and belittling their own, by calculated indiscretions like the statement that there were no real anti-aircraft guns in London, by constant hammering at the danger of air attack without warning, by building ostentatious and quite useless air-raid trenches in the streets and parks of London, and by insisting through daily warnings that everyone must be fitted with a gas mask immediately (although the danger of a gas attack was nil). In this way, the government put London into a panic in 1938 and by this panic, Chamberlain was able to get the people to accept the destruction of Czechoslovakia. Since he could not openly appeal on the anti- Bolshevik basis, he had to adopt the expedient of pretending to resist (in order to satisfy the British public) while really continuing to make every possible concession to Hitler which would bring Germany to a common frontier with the Soviet Union. Page 585 Chamberlain's motives were not really bad ones; he wanted peace so he could devote Britain's limited resources to social welfare; but he was narrow and totally ignorant of the realities of power, convinced that international politics could be conducted in terms of secret deals, as business was, and he was quite ruthless in carrying out his aims, especially in his readiness to sacrifice non-English persons who, in his eyes, did not count. THE SPANISH TRAGEDY, 1931-1939 Page 587 From the invasion of the Arabs in 711 to their final ejection in 1492, Spanish life has been dominated by the struggle against foreign intruders. As a result of more than a thousand years of such struggles, almost all elements of Spanish society have developed a fanatical intolerance, an uncompromising individualism, and a fatal belief that physical force is a solution to all problems, however spiritual. Page 588 The war of 1898, by depriving Spain of much of its empire, left its over-sized army with little to do and with a reduced area on which to batten. Like a vampire octopus, the Spanish Army settled down to drain the life-blood of Spain and, above all, Morocco. This brought the army officers into alignment with conservative forces consisting of the Church (upper clergy), the landlords, and the monarchists. The forces of the proletariat discontent consisted of the urban workers and the much larger mass of exploited peasants. Page 591 In 1923, while most of Spain was suffering from malnutrition, most of the land was untilled and the owners refused to use irrigation facilities which had built by government. As a result, agricultural yields were the poorest in western Europe. While 15 men owned about a million acres and 15,000 men owned about the of all taxed land, almost 2 million owned the other half, frequently in plots too small for subsistence. About 2 million more, who were completely landless, worked 10 to 14 hours a day for about 2.5 pesetas (35 cents) a day for only six months in the year and paid exorbitant rents without any security of tenure. In the Church, while the ordinary priests share the poverty and tribulations of the people, the upper clergy were closely allied with government and supported by an annual grant. They had seats in the upper chamber, control of education, censorship, marriage. In consequence of this alliance of the upper clergy with government and the forces of reaction, all animosities built against the latter came to be directed against the former also. Although the people remained universally and profoundly catholic, they also became incredibly anticlerical reflected in the proclivity for burning churches. All these groups, landlords, officers, upper clergy, and monarchists, were interest groups seeking to utilize Spain for their own power and profit. Page 592 Alfonso XIII ordered municipal elections but in 46 out of 50 provincial capitals, the anti-monarchial forces were victorious. Alfonso fled to France on April 14, 1931. The republicans at once began to organize their victory, electing a Constituent Assembly in June and establishing an ultramodern uni- cameral, parliamentary government with universal suffrage, separation of Church and State, secularization of education, local autonomy for separatist areas and power to socialize the great estates or the public utilities. The republic lasted only five years before Civil War began in 1936 after being challenged constantly from the Right and the extreme Left. Because of shifting governments, the liberal program which was enacted into law in 1931 was annulled or unenforced. Page 593 In an effort to reduce illiteracy (over 45% in 1930), the republic created thousands of new schools and new teachers, raised teachers' salaries, founded over a thousand libraries. Army officers were reduced with the surplus being retired on full pay. The republican officers tended to retire, the monarchists to stay on. To assist the peasants and workers, mixed juries were established to hear rural rent disputes, importation of labor for wage-breaking purposes was forbidden; and credit was provided for peasants to obtain land, seed, or fertilizers on favorable terms. Customarily uncultivated lands were expropriated with compensation to provide farms for a new class of peasant proprietors. Most of these reforms went into effect only partially. Few of the abandoned estates could be expropriated because of the lack of money for compensation. Page 594 The conservative groups reacted violently. Three plots began to be formed against the new republic, the one monarchist led by Sotelo in parliament and by Goicoechea behind the scenes; the second a parliamentary alliance of landlords and clericals under Robles; and the last a conspiracy of officers under Generals Barrera and Sanjurjo. In the meantime, the monarchist conspiracy was organized by former King Alfonso from abroad. Goicoechea performed his task with great skill under the eyes of a government which refused to take preventative action because of its own liberal and legalistic scruples. He organized an alliance of the officers, the Carlists, and his own Alfonsist party. Four men from these three groups then signed an agreement with Mussolini in 1934 who promised arms, money, diplomatic support and 1.5 million pesetas, 10,000 rifles,10,000 grenades, and 200 machine guns. In return, the signers promised to sign a joint export policy with Italy. Page 595 The Robles coalition of Right parties with the clerical party and agrarian party of landlords was able to replace the Left Republican Azana by the Right Republican Lerroux as prime minister. It then called new elections, won victory and revoked many of the 1931 reforms while allowing most of the rest to go unenforced and restored expropriated estates. This led to a violent agitation which burst into open revolt in the two separatist centers of the Basque country and Catalonia. The uprising in Asturias spearheaded by anarchist miners hurling dynamite from slings, lasted for nine days. The government used the Foreign Legion and Moors, brought to Morocco by sea, and crushed the rebels without mercy. The latter suffered at 5,000 casualties. After the uprising, 25,000 suspects were thrown into prison. The uprising of October 1934, although crushed, split the oligarchy. The demands of the army, monarchists and the biggest landlords for a ruthless dictatorship alarmed the leaders of the Church and president of the republic Zamora. Robles as minister of war encouraged reactionary control of the army and even put General Franco in as his undersecretary of war. Page 596 For the 1936 elections, the parties of the Left formed the Popular Front with a published program promising a full restoration of the constitution, amnesty for political crimes committed after 1933, civil liberties, an independent judiciary, minimum wages, protection for tenants, reform of taxation, credit, banking. It repudiated the Socialist program for nationalization of the land, the banks, and industry. While all the Popular Front parties would support the government, only the bourgeois parties would hold seats in the Cabinet while the workers parties such as the Socialists would remain outside. The Popular Front captured 266 of 473 seats while the Right had 153, the Center 54, CEDA 96, Socialists 87, Republic Left 81, Communists 14. The defeated forces of the Right refused to accept the election results and tried to persuade Valladeres to hand over the government to General Franco. That was rebuffed. On Feb. 20, the conspirators met and decided the time was not yet ripe. The new government heard of this meeting and transferred Franco to the Canary Islands. The day before he left Madrid, Franco met with the chief conspirators and they completed their plans for a military revolt but fixed no date. In the meantime, provocation, assassination, and retaliation grew steadily with the verbal encouragement of the Right. Property was seized or destroyed and churches were burned on all sides. The mob retaliated by assaults on monarchists and by burning churches. Page 597 Italian Air Force planes were painted over and went into action in support of the revolt which was a failure when the navy remained loyal because the crews overthrew their officers; the Air Force remained loyal; the army revolted with much of the police but were overcome. At the first news of the revolt, the people, led by labor unions, demanded arms. Because arms were lacking, orders were sent at once to France. The recognized government in Madrid had the right to buy arms abroad and was even bound to do so by treaty with France. As a result of the failure of the revolt, the generals found themselves isolated in several different parts of Spain with no mass popular support. Page 598 The rebels held the extreme northwest, the north and the south as well as Morocco and the islands. They had the unlimited support of Italy and Portugal and tentative support from Germany. The French suggested an agreement not to intervene in Spain since it was clear that if there was no intervention, the Spanish government could suppress the rebels. Britain accept the French offer at once but efforts to get Portugal, Italy, Germany and Russia into the agreement were difficult because Portugal and Italy were both helping the rebels. By August, all six Powers had agreed. Efforts to establish some kind of supervision were rejected by the rebels and by Portugal while Britain refused to permit any restrictions to be placed on war material going to Portugal at the very moment when it was putting all kinds of pressure on France to restrict any flow of supplies to the recognized government of Spain. Portugal had delayed joining the agreement until it would hurt the Loyalist forces more than the rebels. Even then, there was no intention of observing the agreements. Page 599 France did little to help the Madrid government while Britain was positively hostile to it. Both governments stopped all shipments of war material to Spain. By its insistence on enforcing non-intervention against the Loyalists, while ignoring the systematic and large-scale evasions of the agreement in behalf of the rebels, Britain was neither fair nor neutral, and had to engage in large-scale violations of international law. Britain refuse to permit any restrictions to be placed on war material going to Portugal (to the rebels). It refused to allow the Loyalist Spanish Navy to blockade the seaports held by the rebels, and took immediate action against efforts by the Madrid government to interfere with any kind of shipments to rebel areas, while wholesale assaults by the rebels on British and other neutral ships going to Loyalist areas drew little more than feeble protests from Britain. Britain was clearly seeking a rebel victory and instead of trying to enforce nonintervention, was actively supporting the rebel blockade of Loyalist Spain when the British Navy began, in 1937, to intercept British ships headed for Loyalist ports and on some pretext, or simply by force, made them go elsewhere. The rebel forces were fewer than the Loyalists but were eventually successful because of their great superiority in artillery, aviation, and tanks as a result of the one-sided enforcement of the non-intervention agreement. Page 600 The failure of Franco to capture Madrid led to a joint Italian- German meeting where it was decided to recognize the Franco government and withdraw their recognition from Madrid on Nov. 18, 1936. Japan recognized the Franco regime in December. As a result, Franco received the full support of the aggressor states while the Loyalist government was obstructed in every way by the "peace-loving" Powers. Italy sent 100,000 men and suffered 50,000 casualties, Germany sent 20,000 men. On the other side, the Loyalists were cut off from foreign supplies almost at once because of the embargoes of the Great Powers and obtained only limited amounts, chiefly from Mexico, Russia and the US until the Non-intervention agreement cut these off. On Jan. 18, 1937, the American Neutrality Act was revised to apply to civil as well as international wars and was invoked against Spain immediately but unofficial pressure from the American government prevented such exports to Spain even earlier. The Madrid government made violent protests against the Axis intervention both before the Non-intervention Committee in London and before the League of Nations. These were denied by the Axis Powers. An investigation of these charges was made under Soviet pressure but the Committee reported that these charges were unproved. Anthony Eden went so far to say that so far as non-intervention was concerned, "there were other governments more to blame tan either Germany or Italy." Page 601 Soviet intervention began Oct 7,1936, three and a half years after Italian intervention and almost three months after both Italian and German units were fighting with the rebels. The Third International recruited volunteers throughout the world to fight in Spain. This Soviet intervention in support of the Madrid government at a time when it could find support almost nowhere else served to increase Communist influence in the government very greatly. Page 602 The Italian submarine fleet was waiting for Russian shipping in the Mediterranean and did not hesitate to sink it in the last few months of 1936. Although the evidence for Axis intervention in Spain was overwhelming and was admitted by the Powers themselves early in 1937, the British refused to admit it and refused to modify the non- intervention policy. Britain's attitude was so devious that it can hardly be untangled although the results were clear enough. The real sympathy of the London government clearly favored the rebels although it had to conceal the fact from public opinion since this opinion favored the Loyalists over Franco by 57% to 7% according to a 1938 opinion poll. Page 603 On December 18, 1936, Eden admitted that the government had exaggerated the danger of war four months earlier to get the non- intervention agreement accepted, and when Britain wanted to use force to achieve its aims, as it did in the piracy of Italian submarines in 1937, it did so without risk of war. The non-intervention agreement, as practiced, was neither an aid to peace nor an example of neutrality, but was clearly enforced in such a way as to give aid to the rebels and place all possible obstacles in the way of the Loyalist government suppressing the rebellion. The attitude of the British government could not be admitted publicly and every effort was made to picture the actions of the Non- intervention Committee as one of even-handed neutrality. In fact, it was used to throw dust in the eyes of the world, especially the British public. For months, the meaningless debates of this committee were reported in detail to the world and charges, countercharges, proposals, counterproposals, investigations and inconclusive conclusions were offered to the a confused world, thus successfully increasing its confusion. While debating and quibbling on about issues like belligerence, patrols, volunteers, etc., before the Committee in London, the Franco forces, with their foreign contingents, slowly crushed the Loyalist forces. Page 604 The Loyalist forces surrendered on March 28th 1939. England and France had recognized the Franco government on February 17 and the Axis troops were evacuated from Spain after a triumphal march through Madrid in June. When the war ended, much of Spain was wrecked, at least 450,000 Spaniards had been killed and an unpopular military dictatorship had been imposed as a result of the actions of non-Spanish forces. At least 400,000 Spaniards were in prison and large numbers were hungry and destitute. Germany recognized this problem and tried to get France to follow a path of conciliation, humanitarian reform, and social, agricultural, and economic reform. This advice was rejected, with the result that Spain has remained weak, apathetic, war-weary, and discontented ever since. CHAPTER XIII: THE DISRUPTION OF EUROPE, 1937-1939 AUSTRIA INFELIX, 1933-1938 Page 607 The Austria which was left after the Treaty of St. Germain consisted of little more than the great city of Vienna surrounded by a huge but inadequate suburb whose population had been reduced from 52 to 6.6 million. Page 608 The Social Democrats were unable to reconcile their desire for union with Germany (called Anschluss) with the need for financial aid from the Entente Powers who opposed this. The Social Democrats embarked on an amazing program of social welfare by a system of direct taxes which bore heavily on the well-to- do. Page 609 Before 1914, the living conditions of the poor had been maintained by a very undemocratic political system under which only 83,000 persons, on a property basis, were allowed to vote and 5,500 of the richest were allowed to choose one-third of all seats on city council. By 1933, the Social Democrats had built almost 60,000 dwellings so efficiently that the average cost per apartment was only about $1,650 each with average rent of $2 per month. Thus the poor of Vienna had all kinds of free or cheap medical care, dental care, education, libraries, amusements, sports, school lunches and maternity care provided by the city. While this was going on in Vienna, the Christian Socialist-Pan- German federal government of Catholic priest Monsignor Ignaz Seipel was sinking deeper into corruption, The diversion of public funds to banks and industries controlled by Seipel's supporters was revealed by parliamentary investigations in spite of the government's efforts to conceal the facts. Seipel formed a "Unity List" of all the anti-Socialist parties he could muster but the election gave his party only 73 seats compared to 71 for the Social Democrats, 12 for the pan-Germans, 9 for the Agrarian League. He sought to change the Austrian constitution into a presidential dictatorship which required a two-thirds vote. It became necessary to use illegal methods. Page 610 The secret documents published since 1945 make it quite clear that Germany had no carefully laid plans to annex Austria and was not encouraging violence by the Nazis in Austria. Instead, every effort was made to restrict the Austrian Nazis to propaganda in order to win a gradual peaceful extension of Nazi influence. Page 611 The invasion of Austria in 1938 was a pleasant surprise even for the Nazi leaders and arose from several unexpected favorable circumstances. Secret documents now make it clear that in 1937 the German and British governments made secret decisions which sealed the fate of Austria and Czechoslovakia. It is evident from some of Hitler's statements that he had already received certain information about the secret decisions being made by Chamberlain on the British side. Page 612 The British government group controlling foreign policy had reached a seven point decision regarding Germany: 1. Hitler's Germany was the front-line bulwark against the spread of Communism in Europe. 2. The aim was a four power pact including Britain, France, Italy and Germany to exclude all Russian influence from Europe. 3. Britain had no objection to German acquisition of Austria, Czechoslovakia, and Danzig. 4. Germany must not use force to achieve its aims as this would precipitate a war in which Britain would have to intervene. Page 622 For years before June 1938, the government insisted that British rearming was progressing in a satisfactory fashion. Churchill questioned this and produced figures on German rearmament to prove that Britain's own progress in this field was inadequate. These figures (which were not correct) were denied by the government. As late as March 1938, Chamberlain said that British rearmament were such as to make Britain an "almost terrifying power." But as the year went on, the government adopted a quite different attitude. In order to persuade public opinion that it was necessary to yield to Germany, the government pretended that its armaments were quite inadequate. Page 623 We now know that this was a gross exaggeration. Britain produced almost 3000 "military" planes in 1938 and about 8,000 in 1939 compared to 3350 "combat" planes produced in Germany in 1938 and 4,733 in 1939. It is quite clear that Britain did not yield to superior force in 1938, as was stated at the time and has been stated since by many writers including Churchill. We have evidence that Chamberlain knew these facts but consistently gave a contrary impression and that Lord Halifax went so far as to call forth protests from the British military attaches in Prague and Paris. The British government made it clear to Germany both publicly and privately that they would not oppose Germany's projects. Dirksen wrote to Ribbentrop on June 3 1928 "Anything which could be got without firing a shot can count upon the agreement of the British." THE CZECHOSLOVAK CRISIS, 1937-1938 Page 626 The economic discontent became stronger after the onset of the world depression in 1929 and especially after Hitler demonstrated that his policies could bring prosperity to Germany. Page 627 Within two weeks of Hitler's annexation of Austria, Britain put pressure on the Czechs to make concessions to the Germans; to encourage France and Germany to do the same. All this was justified by the argument that Germany would be satisfied if it obtained the Sudetenland and the Polish Corridor. All these assumptions were dubious. Page 628 Czechoslovakia was eliminated with the help of German aggression, French indecision and war-weariness, and British public appeasement and merciless secret pressure. Page 629 Five days after Anschluss, the Soviet government call for collective actions to stop aggression and to eliminate the increased danger of a new world slaughter was rejected by Lord Halifax. Page 633 It was necessary to impose the plan for Czechoslovakia on public opinion of the world by means of the slowly mounting war scare which reached the level of absolute panic on September 28th. The mounting horror of the relentless German mobilization was built up day by day while Britain and France ordered the Czechs not to mobilize in order "not to provoke Germany." We now know that all these statements and rumors were not true and that the British government knew that they were not true at the time. Page 634 The Chamberlain government knew these facts but consistently gave a contrary impression. Lord Halifax particularly distorted the facts. Just as the crisis was reaching the boiling point in September 1938, the British ambassador in Paris reported to London that Colonel Lindbergh had just emerged from Germany with a report that Germany had 8,000 military planes and could manufacture 1,500 a month. We now know that Germany had about 1,500 planes, manufactured 280 a month. Page 635 Lindbergh repeated his tale of woe daily both in Paris and in London during the crisis. The British government began to fit the people of London with gas masks, the prime minister and the king called on the people to dig trenches in the parks, schoolchildren began to be evacuated. In general, every report or rumor which could add to the panic and defeatism was played up, and everything that might contribute to a strong or a united resistance to Germany was played down. Page 636 The Anglo-French decision was presented to the Czechoslovak government at 2a.m. on September 19 to be accepted at once. The Czechoslovak government accepted at 5p.m. on September 21st. Lord Halifax at once ordered the Czech police to be withdrawn from the Sudeten districts, and expressed the wish that the German troops move in at once. Page 638 At Munich, Hitler, Chamberlain, Mussolini and Daladier carved up Czechoslovakia without consulting anyone, least of all the Czechs. Germany was supreme in Europe. Since this was exactly what Chamberlain and his friends had wanted, they should have been satisfied. THE YEAR OF DUPES, 1939 Page 642 Concessions to Germany continued but now parallel with concessions went a real effort to build up a strong front against Hitler. Page 643 The anti-Bolshevik and "three-bloc-world" groups had expected Hitler would get the Sudetenland, Danzig, and perhaps the Polish Corridor and that he would then be stabilized between the "oceanic bloc" and the Soviet Union. As a result of these hidden and conflicting forces, the history of international relations from September 1938 and September 1939 or even later is neither simple nor consistent. In general, the key to everything was the position of Britain. As a result of Lord Halifax's "dyarchic" policy, there were not only two policies but two groups carrying them out. Lord Halifax tried to satisfy the public demand for an end to appeasement while Chamberlain, Wilson, Simon and Hoare sought to make secret concessions to Hitler in order to achieve a general Anglo-German settlement. The one policy was public; the other was secret. Since the Foreign Office knew of both, it tried to build up the "peace front" against Germany so that it would look sufficiently imposing to satisfy public opinion and to drive Hitler to seek his desires by negotiation rather than by force so that public opinion in England would not force the government to declare a war that they did not want in order to remain in office. This complex plan broke down because Hitler was determined to have a war merely for the personal emotional thrill of wielding great power, while the effort to make a "peace front" sufficiently collapsible so that it could be case aside if Hitler either obtained his goals by negotiation or made a general settlement with Chamberlain merely resulted in making a "peace front" which was so weak it could neither maintain peace by threat of force nor win a war when peace was lost. Page 644 On March 15th, Chamberlain told the Commons that he accepted the seizure of Czechoslovakia and refused to accuse Hitler of bad faith. But two days later, when the howls of rage from the British public showed that he had misjudged the electorate, he denounced the seizure. However, nothing was done other than to recall Henderson from Berlin for consultations and cancel a visit to Berlin by the president of the Board of Trade. The seizure was declared illegal but was recognized in fact at once. Moreover, #6 million in Czech gold reserves in London were turned over to Germany with the puny and untrue excuse that the British government could not give orders to the Bank of England. Page 647 Germany opened its negotiations with Poland in a fairly friendly way on October 24, 1938. It asked for Danzig and a strip a kilometer wide across the Polish Corridor to provide a highway and four-track railroad under German sovereignty. Poland's economic and harbor rights in Danzig were to be guaranteed and the "corridor across the Corridor" was to be isolated from Polish communications facilities by bridging or tunneling. Germany also wanted Poland to join an anti-Russian bloc. Germany was prepared to guarantee the country's existing frontiers, to extend the Non-aggression Pact of 1934 for 25 years, to guarantee the independence of Slovakia and to dispose of Ruthenia as Poland wished. These suggestions were rejected by Poland. About the same time, the Germans were using pressure on Romania to obtain an economic agreement which was signed on March 23rd. On March 17, London received a false report of a German ultimatum to Romania. Lord Halifax lost his head and, without checking his information, sent telegrams to Greece, Turkey, Poland, Bulgaria, Soviet Union asking what each country was prepared to do in the event of a German aggression against Romania. Four replied by asking London what it was prepared to do but Moscow suggested and immediate conference which Halifax rebuffed, wanting nothing more than an agreement to consult in a crisis. Poland was reluctant to sign any agreement involving Russia. However, when news reached London of Hitler's demands on Poland, Britain suddenly issued a unilateral guarantee of the latter state (March 31st). Page 648 "In the event of any action which clearly threatened Polish independence and which the Polish government accordingly considered it vital to resist with their national forces, His Majesty's Government would feel themselves bound at once to lend the Polish Government all support in their power." This was an extraordinary assurance. The British government since 1918 had resolutely refused any bilateral agreement guaranteeing any state in western Europe. Now they were making a "unilateral" declaration in "eastern" Europe and they were giving that state the responsibility of deciding when that guarantee would take effect, something quite unprecedented. If Germany used force in Poland, public opinion in Britain would force Britain to declare war whether there was a guarantee or not. If the chief purpose of the unilateral guarantee to Poland was to frighten Germany, it had precisely the opposite effect. Page 649 Hitler announced that the terms he had offered Poland had been rejected, negotiations broken off. The crisis was intensified by provocative acts on both sides. Page 650 In 1939, there was talk of a British loan to Poland of #100 million in May; On August 1 Poland finally got a credit for $8 million at a time when all London was buzzing about a secret loan of #1 billion from Britain to Germany. In 1936, Poland was given 2 billion francs as a rearmament long and on May 19, 1939, an agreement was signed by which France promised full air support to Poland on the first day of war, local skirmishing by the third day, and a full-scale offensive on the sixteenth day. On Aug. 23, General Gamelin informed his government that no military support could be given to Poland until the spring of 1940 and that a full-scale offensive could not be made before 1941-1942. Poland was never informed of this change and seems to have entered the war on September 1st in the belief that a full-scale offensive would be made against Germany during September. The failure to support Poland was probably deliberate in the hope that this would force Poland to negotiate with Hitler. If so, it was a complete failure. Poland was so encouraged by the British guarantee that it not only refused to make concessions but also prevented the reopening of negotiations by one excuse after another until the last day of peace. Page 651 In light of these facts, the British efforts to reach a settlement with Hitler and their reluctance to make an alliance with Russia, were very unrealistic. Nevertheless, they continued to exhort the Poles to reopen negotiations with Hitler, and continued to inform the German government that the justice of their claims to Danzig and the Corridor were recognized but that these claims must be fulfilled by peaceful means and that force would inevitably be met with force. The British continued to emphasize that the controversy was over Danzig when everyone else knew that Danzig was merely a detail, and an almost indefensible detail. Danzig was no issue on which to fight a world war, but it was an issue on which negotiation was almost mandatory. This may have been why Britain insisted that it was the chief issue. But because it was not the chief issue, Poland refused to negotiate because it feared it would lead to partition of Poland. Danzig was a free city under supervision of the League of Nations and while it was within the Polish customs and under Polish economic control, it was already controlled politically under a German Gauleiter and would at any moment vote to join Germany if Hitler consented. Page 654 Lord Halifax's report reads: "Herr Hitler asked whether England would be willing to accept an alliance with Germany. I said I did not exclude such a possibility provided the development of events justified it." The theory that Russia learned of these British approaches to Germany in July 1939 is supported by the fact that the obstacles and delays in the path of a British-Russian agreement were made by Britain from the middle of April to the second week of July but were made by Russia from the second week in July to the end on August 21st. The Russians probably regarded the first British suggestion that the Soviet Union should give unilateral guarantees to Poland similar to those of Britain as a trap to get them into a war with Germany in which Britain would do little or nothing or even give aid to Germany. That this last possibility was not completely beyond reality is clear from the fact that Britain did prepare an expeditionary force to attack Russia in March 1940 when Britain was technically at war with Germany but was doing nothing to fight her. Russia offered the guarantee if it were extended to all states on their western frontier including Finland, Estonia, Latvia, Lithuania, Poland and Romania. This offer meant that Russia was guaranteeing its renunciation of all the territory in these six states which it had lost to them since 1917. Instead of accepting the offer, the British began to quibble. They refused to guarantee the Baltic States on the ground that these states did not want to be guaranteed although they had guaranteed Poland on March 31st when Jozef Beck did not want it and had just asked the Soviet Union to guarantee Poland and Romania, neither of whom wanted a Soviet guarantee. When the Russians insisted, the British countered by insisting that Greece, Turkey, Holland, Belgium, and Switzerland must also be guaranteed. Page 655 France and Russia were both pushing Britain to form a Triple Alliance but Britain was reluctant and delayed the discussions to the great irritation of the Soviet leaders. To show its displeasure, the Soviet Union on May 3rd replaced Litvinov with Molotov as foreign minister. This would have been a warning, Litvinov knew the West and was favorable to democracy and to the Western Powers. As a Jew, he was anti-Hitler. Molotov was a contrast from every point of view. On May 19th, Chamberlain refused an alliance and pointed with satisfaction to "that great virile nation on the borders of Germany which under this agreement (of April 6th) is bound to give us all the aid and assistance it can." He was talking about Poland! Page 656 The members of the military mission took a slow ship (speed thirteen knots) and did not reach Moscow until August 11th. They were again negotiators of second rank. In London, according to rumor, neither side wanted an agreement. Considering Chamberlain's secret efforts to make a settlement with Germany, there is no reason to believe that he wanted an agreement with Russia. The Russians demanded an exact military commitment as to what forces would be used against Germany; they wanted guarantees whether the states concerned accepted or not; they wanted specific permission to fight across a territory such as Poland. These demands were flatly rejected by Poland on August 19th. On the same day, Russia signed a commercial treaty with Germany. Two days later, France ordered its negotiators to sign the right to cross Poland but Russia refused to accept this until Poland consented as well. Page 657 On Aug. 23, Ribbentrop and Molotov signed an agreement which provided that neither signer would take any aggressive action against the other signer or give any support to a third Power in such action. The secret protocol delimited spheres of interest in eastern Europe. The line followed the northern boundary of Lithuania and the Narew, Vistula, and San rivers in Poland and Germany gave Russia a free hand in Bessarabia. This agreement was greeted as a stunning surprise in the Entente countries. There was no reason why it should have been. The British begged the Poles and the Germans to negotiate; the Italians tried to arrange another four-Power conference; various outsiders issued public and private appeals for peace; secret emissaries flew back and forth between London and Germany. All this was in vain because Hitler was determined on war and his attention was devoted to manufacturing incidents to justify his approaching attack. Political prisoners were taken from concentration camps, dressed in German uniforms, and killed on the Polish frontier as "evidence" of Polish aggression. A fraudulent ultimatum with sixteen superficially reasonable demands on Poland was presented to the British ambassador when the time limit had elapsed. It was not presented to the Poles because the Polish ambassador in Berlin had been ordered by Beck not to accept any document from the Germans. Page 658 The German invasion of Poland at 4:45a.m. on September 1, 1939, did not end the negotiations to make peace, nor did the complete collapse of Polish resistance on September 16. Since these efforts were futile, little need be said of them except that France and Britain did not declare war on Germany until more than two days had elapsed. During this time, no ultimatums were sent to Germany. On September 3 at 9a.m., Britain presented an ultimatum which expired at 11a.m. In a similar fashion, France entered the war at 6p.m. on September 3. -- John C. "The Engineer" Turmel, Founder, Abolitionist Party of Canada 915-2045 Carling Ave., Ottawa, K2A 1G5, Tel/Fax: 613-728-2196 LETS Abolish Interest Rates http://www.cyberclass.net/turmel For TURMEL topic http://www.onelist.com/subscribe.cgi/lets ----- Aloha, He'Ping, Om, Shalom, Salaam. Em Hotep, Peace Be, Omnia Bona Bonis, All My Relations. Adieu, Adios, Aloha. Amen. 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