-Caveat Lector- "Deterring Democracy" by Noam Chomsky Chapter 11 <cont'd> The United States was determined to prevent expropriation of Nazi industrialists and was firmly opposed to allowing worker-based organizations to exercise managerial authority. Such developments would pose a serious threat of democracy in one sense of the term, while violating it in the approved sense. The U.S. authorities therefore turned to sympathetic right-wing socialists, as in Japan, while using such means as control of CARE packages, food and other supplies to overcome the opposition of rank-and-file workers. It was finally necessary to "wall off" the Western zone by partition, to veto the major union constitutions, to forcefully terminate social experiments, vetoing state ("Laender") legislation, co-determination efforts, and so on. Major Nazi war criminals were recruited for U.S. intelligence and anti-resistance activities, Klaus Barbie being perhaps the best known. A still worse Nazi gangster, Franz Six, was pressed into service after his sentence as a war criminal was commuted by U.S. High Commissioner John J. McCloy. He was put to work for Reinhard Gehlen, with special responsibility for developing a "secret army" under U.S. auspices, along with former Waffen-SS and Wehrmacht specialists, to assist military forces established by Hitler in Eastern Europe and the Soviet Union in operations that continued into the 1950s. Gehlen himself had headed Nazi military intelligence on the Eastern front, and was reinstated as head of the espionage and counter-espionage service of the new West German state, under close CIA supervision. Meanwhile, as in Japan, the burden of reconstruction was placed upon German workers, in part by fiscal measures that wiped out the savings of the poor and union treasuries. "So thoroughgoing was the U.S. assault on German labor that even the AFL complained," Eisenberg comments, though the AFL had helped lay the basis for these consequences by its anti-union activities. Union activists were purged and strikes were blocked by force. By 1949, the State Department expressed its pleasure that "industrial peace had been attained," with a now docile and tractable labor force and an end to the vision of a unified popular movement that might challenge the authority of owners and managers**. As Tom Bower describes the outcome in a study of the rehabilitation of Nazi war criminals, "Four years after the war, those responsible for the day-to-day management of post-war Germany were remarkably similar to the management during the days of Hitler," including bankers and industrialists convicted of war crimes who were released and restored to their former roles, renewing their collaboration with U.S. corporations. In short, the treatment of the two "great workshops" was basically similar. In later years, as we have seen, the U.S. was distinctly wary of apparent Soviet initiatives for a unified demilitarized Germany and steps towards dismantling the pact system. Western European elites have been no less concerned, for the decline of East-West confrontation might "let politics loose among those people," with all of the dire effects. That has been one of the undercurrents beneath the debate of the 1980s over arms control, security issues, and the political prospects for a united Europe. ______________________ **For more on these matters, see "Turning the Tide," 197ff., and sources cited; Christopher Simpson, "Blowback" (Weidenfeld and Nicolson, 1988). On the recruitment of Nazi scientists, see Tom Bower, "The Paperclip Conspiracy" (Michael Joseph, 1987), 310; John Gimbel, "Science, Technology, and Reparations" (Stanford, 1990). A review of the latter in "Science" notes that Gimbel's research "demonstrates the dubiousness of subsequent U.S. claims of commercial disinterestedness in the occupation of Germany; just like the Russians, and to a lesser degree the British and the French, the Americans seized enormous quantities of reparations from the defeated country," giving "some credence to the Russian claim that Anglo-American seizures amounted to about $10 billion," the amount demanded (but not received) by the Russians as reparations for the Nazi devastation of the USSR. Raymond Stokes, "Science," June 8, 1990. _______________________ 5. The Smaller Workshops In France and Italy, U.S. authorities pursued similar tasks. In both countries, Marshall Plan aid was strictly contingent on exclusion of Communists -- including major elements of the anti-fascist resistance and labor -- from the government; "democracy," in the usual sense. U.S. aid was critically important in early years for suffering people in Europe and was therefore a powerful lever of control, a matter of much significance for U.S. business interests and longer term planning. "If Europe did not receive massive financial assistance and adopt a coherent recovery program, American officials were fearful that the Communist left would triumph, perhaps even through free elections," Melvyn Leffler observes. On the eve of the announcement of the Marshall Plan, Ambassador to France Jefferson Caffery warned Secretary of State Marshall of grim consequences if the Communists won the elections in France: "Soviet penetration of Western Europe, Africa, the Mediterranean, and the Middle East would be greatly facilitated" (May 12, 1947). The dominoes were ready to fall. During May, the U.S. pressured political leaders in France and Italy to form coalition governments excluding the Communists. It was made clear and explicit that aid was contingent on preventing an open political competition, in which left and labor might dominate. Through 1948, Secretary of State Marshall and others publicly emphasized that if Communists were voted into power, U.S. aid would be terminated; no small threat, given the state of Europe at the time. In France, the postwar destitution was exploited to undermine the French labor movement, along with direct violence. Desperately needed food supplies were withheld to coerce obedience, and gangsters were organized to provide goon squads and strike breakers, a matter that is described with some pride in semi-official U.S. labor histories, which praise the AFL for its achievements in helping to save Europe by splitting and weakening the labor movement (thus frustrating alleged Soviet designs) and safeguarding the flow of arms to Indochina for the French war of reconquest, another prime goal of the U.S. labor bureaucracy. The CIA reconstituted the mafia for these purposes, in one of its early operations. The QUID PRO QUO was restoration of the heroin trade. The U.S. government connection to the drug boom continues until today. U.S. policies towards Italy basically picked up where they had been broken off by World War II. The United States had supported Mussolini's Fascism from the 1922 takeover through the 1930s. Mussolini's wartime alliance with Hitler terminated these friendly relations, but they were reconstituted as U.S. forces liberated southern Italy in 1943, establishing the rule of Field-Marshall Badoglio and the royal family that had collaborated with the Fascist government. As Allied forces drove towards the north, they dispersed the anti-fascist resistance along with local governing bodies it had formed in its attempt "to create the foundations for a new, democratic, and republican state in the various zones it succeeded in liberating from the Germans" (Gianfranco Pasquino). A center-right government was established with neo-fascist participation and the left excluded. Here too, the plan was for the working classes and the poor to bear the burden of reconstruction, with lowered wages and extensive firing. Aid was contingent on removing Communists and left socialists from office, because they defended workers interests and thus posed a barrier to the intended style of recovery, in the view of the State Department. The Communist Party was collaborationist; its position "fundamentally meant the subordination of all reforms to the liberation of Italy and effectively discouraged any attempt in northern areas to introduce irreversible political changes as well as changes in the ownership of the industrial companies,...disavowing and discouraging those workers' groups that wanted to expropriate some factories" (Pasquino). But the Party did try to defend jobs, wages, and living standards for the poor and thus "constituted a political and psychological barrier to a potential European recovery program," historian John Harper comments, reviewing the insistence of Kennan and others that Communists be excluded from government though agreeing that it would be "desirable" to include representatives of what Harper calls "the democratic working class." The recovery, it was understood, was to be at the expense of the working class and the poor. Because of its responsiveness to the needs of these social sectors, the Communist Party was labelled "extremist" and "undemocratic" by U.S. propaganda, which also skillfully manipulated the alleged Soviet threat. Under U.S. pressure, the Christian Democrats abandoned wartime promises about workplace democracy and the police, sometimes under the control of ex-fascists, were encouraged to suppress labor activities. The Vatican announced that anyone who voted for the Communists in the 1948 election would be denied sacraments, and backed the conservative Christian Democrats under the slogan: "O con Cristo o contro Cristo" ("Either with Christ or against Christ"). A year later, Pope Pius excommunicated all Italian Communists. A combination of violence, manipulation of aid and other threats, and a huge propaganda campaign sufficed to determine the outcome of the critical 1948 election, essentially bought by U.S. intervention and pressures. U.S. policies in preparation for the election were designed so that "even the dumbest wop would sense the drift," as the Italian desk officer at the State Department put it with characteristic ruling class elegance. As 30 years earlier, "the Italians are like children [who] must be led and assisted" (see p. 38). The policies included police violence and threats to withhold food, to bar entry to the U.S. to anyone who voted the wrong way, to deport Italian-Americans who supported the Communists, to bar Italy from Marshall Plan aid, and so on. State Department historian James Miller observes that subsequent economic development was carried out "at the expense of the working class" as the left and the labor movement were "fragmented with U.S. support," and that U.S. efforts undercut a "democratic alternative" to the preferred center-right rule, which proved corrupt and inept. The basic policy premise was that "as a key strategic entity, Italy's fate remained too important for Italians alone to decide" (Harper) -- particularly, the wrong Italians, with their misunderstanding of democracy. Meanwhile, the U.S. planned military intervention in the event of a legal Communist political victory in 1948, and this was broadly hinted in public propaganda. Kennan secretly suggested that the Communist Party be outlawed to forestall its electoral victory, recognizing that this would probably lead to civil war, U.S. military intervention, and "a military division of Italy." But he was overruled, on the assumption that other means of coercion would suffice. The National Security Council, however, secretly called for military support for underground operations in Italy along with national mobilization in the United States, "in the event the Communists obtain domination of the Italian government by legal means." The subversion of effective democracy in Italy was taken very seriously. ... Washington's intention to resort to violence if free elections come out the wrong way is not very easy to deal with, so it has been generally suppressed, even in the scholarly literature. One of the two major scholarly monographs on this period discusses the NSC memoranda, but with no mention of the actual content of the crucial section; the second passes it by in a phrase. In the general literature, the whole matter is unknown. The CIA operations to control the Italian elections, authorized by the National Security Council in December 1947, were the first major clandestine operation of the newly formed Agency. As noted earlier, CIA operations to subvert Italian democracy continued into the 1970s at a substantial scale. In Italy too, U.S. labor leaders, primarily from the AFL, played an active role in splitting and weakening the labor movement, and inducing workers to accept austerity measures while employers reaped rich profits. In France, the AFL had broken dock strikes by importing Italian scab labor paid by U.S. businesses. The State Department called on the Federation's leadership to exercise their talents in union busting in Italy as well, and they were happy to oblige. The business sector, formerly discredited by its association with Italian Fascism, undertook a vigorous class war with renewed confidence. The end result was the subordination of the working class and the poor to the traditional rulers. In the major academic study of U.S. labor in Italy, Ronald Filippelli observes that American aid "had largely been used to rebuild Italy on the old basis of a conservative society" in a "rampant capitalist restoration" on the backs of the poor, "with low consumption and low wages," "enormous profits," and no interference with the prerogatives of management. Meanwhile AFL President George Meany angrily rejected criticism of his anti-labor programs on the grounds that freedom in Italy was not the exclusive concern of its own people; the AFL would therefore pursue its higher goal of "strengthening the forces of liberty and social progress all over the world" -- by ensuring that U.S. business interests remain in the ascendant, class collaboration with a vengeance. The result was "a restoration to power of the same ruling class that had been responsible for, and benefited from, fascism," with the working class removed from politics, subordinated to the needs of investors, and forced to bear the burden of the "Miracolo italiano," Filippelli concludes. The policies of the late 1940s "hit the poorer regions and politically impotent social strata hardest," Harper observes, but they did succeed in breaking "rigid labor markets" and facilitating the export-led growth of the 1950s, which relied on "the continuing weakness and remarkable mobility of the Italian working class." These "happy circumstances," he goes on, brought economic development of a certain kind, while the CIA mounted new multimillion dollar covert funding and propaganda campaigns to ensure that the "felicitous arrangements" would persist. Later commentators tend to see the U.S. subversion of democracy in France and Italy as a defense of democracy. In a highly-regarded study of the CIA and American democracy, Rhodri Jeffreys-Jones describes "the CIA's Italian venture," along with its similar efforts in France, as "a democracy-propping operation," though he concedes that "the selection of Italy for special attention...was by no means a matter of democratic principle alone"; our passion for democracy was reinforced by the strategic importance of the country. But it was a commitment to "democratic principle" that inspired the U.S. government to impose the social and political regimes of its choice, using the enormous power at its command and exploiting the privation and distress of the victims of the war, who must be taught not to raise their heads if we are to have true democracy. A more nuanced position is taken by James Miller in his monograph on U.S. policies towards Italy. Summarizing the record, he concludes that "In retrospect, American involvement in the stabilization of Italy was a significant, if troubling, achievement. American power assured Italians the right to choose their future form of government and also was employed to ensure that they chose democracy. In defense of that democracy against real but probably overestimated foreign and domestic threats, the United States used undemocratic tactics that tended to undermine the legitimacy of the Italian state." The "foreign threats," as he had already discussed, were hardly real; the Soviet Union watched from a distance as the U.S. subverted the 1948 election and restored the traditional conservative order, keeping to its wartime agreement with Churchill that left Italy in the Western zone. The "domestic threat" was the threat of democracy. The idea that U.S. intervention provided Italians with freedom of choice while ensuring that they chose "democracy" (in our special sense of the term) is reminiscent of the attitude of the extreme doves towards Latin America: that its people should choose freely and independently, "EXCEPT when doing so would affect U.S. interests adversely," and that the U.S. had no interest in controlling them, unless developments "get out of control" The democratic ideal, at home and abroad, is simple and straightforward: You are free to do what you want, as long as it is what we want you to do. 6. Some Broader Effects Apart from the rearmament of Germany within a Western military alliance, which no Russian government could easily accept for obvious reasons, Stalin observed all of this with relative calm, apparently regarding it as a counterpart to his own harsh repression in Eastern Europe. Nevertheless, these parallel developments were bound to lead to conflict. In his review of the reverse course in Japan, John Roberts argues that "the American rehabilitation of the monopolistic economies of Western Germany and Japan (largely under prewar leadership) was a CAUSE, not a result, of the cold war. Their rehabilitation was, undoubtedly, a vital part of American capitalism's strategy in its all-out vendetta against communism" -- meaning, primarily, an attack against the participation of the "popular classes" in some significant range of decision-making. Focusing on Europe, Melvyn Leffler comments that the approach to European recovery led American officials to act "to safeguard markets, raw materials, and investment earnings in the Third World. Revolutionary nationalism had to be thwarted outside Europe, just as the fight against indigenous communism had to be sustained inside Europe. In this inter- connected attempt to grapple with the forces of the left and the potential power of the Kremlin resides much of the international history, strategy, and geopolitics of the Cold War era." These are critical undercurrents through the modern era, and remain so. Throughout the reconstruction of the industrial societies, the prime concern was to establish a state capitalist order under the traditional conservative elites, within the global framework of U.S. power, which would guarantee the ability to exploit the various regions that were to fulfill their functions as markets and sources of raw materials. If these goals could be achieved, then the system would be stable and resistant to feared social change, which would naturally be disruptive once the system is operating in a relatively orderly fashion. In the wealthy industrial centers, large segments of the population would be accommodated, and would be led to abandon any more radical vision under a rational cost-benefit analysis. Once its institutional structure is in place, capitalist democracy will function only if all subordinate their interests to the needs of those who control investment decisions, from the country club to the soup kitchen. It is only a matter of time before an independent working class culture erodes, along with the institutions and organizations that sustain it, given the distribution of resources and power. And with popular organizations weakened or eliminated, isolated individuals are unable to participate in the political system in a meaningful way. It will, over time, become largely a symbolic pageant or, at most, a device whereby the public can select among competing elite groups, and ratify their decisions, playing the role assigned them by progressive democratic theorists of the Walter Lippmann variety. That was a plausible assumption in the early postwar period and has proven largely accurate so far, despite many rifts, tensions and conflicts. European elites have a stake in the preservation of this system, and fear their domestic populations no less than the U.S. authorities did. Hence their commitment to Cold War confrontation, which came to serve as an effective technique of domestic social management, and their willingness, with occasional mutterings of discontent, to line up in U.S. global crusades. The system is oppressive, and often brutal, but that is no problem as long as others are the victims. It also raises constant threats of large-scale catastrophe, but these too do not enter into planning decisions shaped by the goal of maximization of short-term advantage, which remains the operative principle. DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance—not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. 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