Category Archives: Fascism

Soviet Democracy and Bourgeois Democracy

This pamphlet is a translation of an essay published in the symposium Soviet Socialist Society prepared by the Institute of Philosophy of the Academy of Sciences of the U.S.S.R. and published by the Gospolitizdat, Moscow 1949.

The question of democracy, of how it is to be correctly understood, of the fundamental distinction between Soviet socialist democracy and bourgeois democracy is a highly important question of our time.

Since the Great October Socialist Revolution there have been revealed to the full the great advantages possessed by Soviet socialist democracy, and the decay, crisis and utter decline of bourgeois democracy.

The Great Patriotic War of the Soviet Union against Hitler Germany showed the invincible strength of the Soviet social and state system. The war showed that “…the Soviet social system is a better form of organization of society than any non-Soviet social system.”[*] The war showed that the Soviet system of state is the best state system ever known to history.

The Soviet State, Soviet socialist democracy emerged from the war stronger than ever. And now, after the close of the war, Soviet democracy is blossoming forth anew, is achieving new successes.

In a number of European countries – Bulgaria, Czechoslovakia, Poland, Albania, Rumania, and Hungary – the system of People’s Democracy has been established. The peoples of these countries displayed self-sacrifice and heroism in the struggle against the fascist oppressors. Having, with the aid of the Soviet Army, secured their liberation from the Nazi yoke, they set about building a democratic order in their countries, but in a new fashion, in a way that rejected the old models of bourgeois-parliamentary democracy. The democracy that arose in these countries assumed new forms, of a higher type than those of the old bourgeois-parliamentary democracy. In these countries democracy is being extended and developed on a scale that indicates that the workers and peasants are really being involved in the administration of the State and that is making the blessings of democracy actually available to the wide masses of the people. New forms of organization of the State have thus arisen which constitute a big advance on the bourgeois democratic states and are opening up the possibility for further progress by these countries on the road to Socialism.

The war also revealed tremendous defects in the old bourgeois-parliamentary forms of democracy. The course of historical development had proved irrefutably that the bourgeois-democratic states, as a result of their flirting with fascism, and their concessions to fascism during the period that preceded the second world war, were in fact – at the beginning of the war – helpless to meet the danger that threatened all the achievements of civilization and democracy, and the free national existence of these countries. The war showed that it was only thanks to the Soviet Union and to the decisive part it played in routing the Nazi aggressors that European civilization was saved from destruction.

* * *

The basic feature of bourgeois democracy, as has been repeatedly noted in the works of the classics of Marxism-Leninism is the fact that it is democracy for the exploiting minority and is directed against the majority. Speaking of bourgeois democracy, Lenin and Stalin pointed out that it undoubtedly constituted progress as compared with feudalism and mediaevalism. The working class has used and endeavours to use the framework of bourgeois democracy so as to develop the class struggle, to set up and consolidate its class organizations. But while Lenin and Stalin pointed to this significance of bourgeois democracy for the working class, they also constantly indicated that bourgeois democracy, based as it is on the dominance of private ownership of the means of production, is formal, false and truncated democracy. “Bourgeois democracy,” wrote Lenin, “although a great historical advance in comparison with mediaevalism, always remains – and under capitalism cannot but remain – restricted, truncated, false and hypocritical, a paradise for the rich and a snare and a delusion for the exploited, for the poor.”[†]

Those who uphold bourgeois democracy use fine phrases about “equality,” “liberty” and “fraternity” in an endeavour to hide the actual domination of the exploiters over the exploited, which is based on the private ownership of the means of production.

Lenin pointed out that general phrases about liberty, equality, democracy are in fact nothing more than the blind repetition of concepts copied from the relations of commodity production. “From the point of view of the proletariat,” wrote Lenin, “the question can be put only in the following way: freedom from being oppressed by which class? equality between which classes? democracy based on private property, or on the struggle for the abolition of private property? – and so forth.”[‡]

Employing all the rigour of Marxist analysis, Lenin and Stalin unmasked bourgeois democracy and placed the issue on the only correct and scientific basis.

Comrade Stalin, in his report on the Draft Constitution of the U.S-S.R. said the following: “They speak of the equality of citizens, but forget that there cannot be real equality between employer and workman, between landlord and peasant, if the former possess wealth and political weight in society while the latter are deprived of both – if the former are exploiters while the latter are exploited. Or again: they speak of freedom of speech, assembly, and the press, but forget that all these liberties may be merely a hollow sound for the working class, if the latter cannot have access to suitable premises for meetings, good printing shops, a sufficient quantity of printing paper, etc.”[§]

When elucidating the specific features of the history and traditions of bourgeois democracy in each country, the classics of Marxism-Leninism pointed out at the same time that “… the most democratic bourgeois republic is a machine for the oppression of the proletariat by the bourgeoisie.”[**]

What distinguishes the epoch of imperialism from the preceding period, the epoch of free competition, is the fact that under imperialism state activity is marked by a turn, all along the line, to political reaction. In both foreign and home policy imperialism strives to violate democracy and establish reaction. These reactionary strivings of imperialism are being displayed more and more glaringly in the political life of present-day England and the U.S.A. This, however, does not prevent those who defend imperialism from talking without end about all the different “freedoms” that are supposed to be part of bourgeois democracy.

Let us, for example, take the question of the so-called “freedom of the press” in bourgeois countries. The fact that a multitude of newspapers of various trends is published in foreign countries, that arguments ensue among these papers on various secondary problems, that different viewpoints are expressed, that criticism is occasionally levelled in these newspapers at those who captain the bourgeois ship of state – all this is lauded to the skies by the advocates of bourgeois democracy. They bring these points forward as evidence of the freedom of the press that is supposed to exist in the bourgeois countries.

Actually, however, the so-called “freedom of the press” in bourgeois society means nothing more than freedom for the capitalists to control the press and to “shape” public opinion to suit their own interests. “Freedom of the press in capitalist society,” said Lenin, “means freedom to trade in the press and in influencing the masses of the people. Freedom of the press means maintaining the press, a most powerful instrument for influencing the masses of the people, at the expense of capital.”[††] Such is the real worth of bourgeois freedom of the press.

The false character of the so-called freedoms, particularly freedom of the press, has even had to be admitted by many publicists and sociologists who defend bourgeois democracy.

Or let us take the so-called “freedom of elections” which is lauded in every way by the apologists of present-day bourgeois democracy. The fact that different parties participate in elections, that a struggle takes place among them, and that these parties advance different programs is extolled by the apologists of bourgeois democracy as evidence of the existence of a supposedly genuine democratic system in these countries. Yet if we delve into the essence of bourgeois “freedom of elections,” so-called, we will see that this boasted “freedom of elections” is as much a fraud as is “freedom of the press.”

Marx, in his work The Eighteenth Brumaire of Louis Bonaparte, already characterized bourgeois constitutions as follows: “…each paragraph of the Constitution contains its own antithesis, its own Upper and Lower House, namely, liberty in the general phrase, abrogation of liberty in the marginal note.”[‡‡]

Basing himself on later historical experience, Lenin continued this characterization of bourgeois liberties as follows: “… under bourgeois democracy the capitalists, by a thousand and one tricks – which are the more artful and effective the more “pure” democracy is developed – – debar the masses from a share in the work of administration, from freedom of the press, the right of assembly, etc… . For the toiling masses, participation in bourgeois parliaments (which never decide important questions under bourgeois democracy; they are decided by the stock exchange and the banks) is hindered by a thousand and one obstacles, and the workers know and feel, see and realize perfectly well that the bourgeois parliaments are institutions alien to them, instruments for the oppression of the proletarians by the bourgeoisie, institutions of a hostile class, of an exploiting minority.”[§§]

Numerous restrictions exist, both in Great Britain and the United States, that prevent the suffrage being universal. There are restrictions of various kinds on the suffrage, in the shape of literacy qualifications, a poll tax and so on and so forth. In the U.S.A. Negroes possess the formal right to vote and be elected, but in actual practice on only one occasion in fifty years was a Negro elected to Congress. When elections are about to take place in the U.S.A., Negroes have to undergo quite a meticulous examination to establish their ability to read and write, and frequently their “political knowledge.” This is done so as to deprive the overwhelming majority of the Negro population of the suffrage.

Facts of this kind – proof that the freedom of elections is in fact restricted – are quite well known. A wealth of material exposing the sham of “freedom of elections” in bourgeois countries is to be found in the publications and statements of many, even loyal, upholders of bourgeois democracy.

In 1944, a book appeared in the U.S.A. entitled Democracy Begins at Home by Jennings Perry. The author, editor of the newspaper Tennessean, devotes this work to the problem of the poll tax in the State of Tennessee and in the Southern States in general. The book discloses a highly interesting picture of the morals characteristic of present-day American democracy. It turns out that in the U.S.A. the years 1889 to 1908 saw the gradual introduction in all the states of something in the nature of a tax on the right to vote. It became the rule that citizens could not participate in the elections unless they paid this tax.

What effect did this tax have on the elections? In 1936 there took place the election of the Governor of the State of Tennessee. Of a total of 1,200,000 electors only 352,000 voted. A certain adventurer and racketeer by the name of Crump controlled a solid block of between 60,000 and 70,000 votes and so had the entire State of Tennessee in his grip. Here is an eloquent description of him, given in 1939 by the United Press correspondent, John Parris: “Edward Hull Crump can lift the telephone in his insurance and real estate company office and with one command send 60,000 sovereign Democrats to the secret polls to do his bidding.”

The author of the above-mentioned book cites facts to show how democracy has gradually disappeared in Tennessee. “We,” he writes, “have retrogressed toward government by a chosen few at a rapid rate,” democracy has turned into oligarchy.

An idea of the system and character of general elections in Great Britain is given in the book of the Liberal Party leader, Ramsay Muir, entitled How Britain Is Governed. In this book the British election system is called outright “in the highest degree unjust, unsatisfactory and dangerous.” This system, wrote Muir, “actually disfranchises a large majority of the electors. If we could estimate the total of those whose votes are of no avail because they have voted for unsuccessful candidates; of those who have refused to use their votes because there was no candidate with whom they agreed; and of those who have voted reluctantly for somebody who did not represent their views merely because he was less objectionable than the available alternatives: we should probably find that something like 70 per cent of the total (electorate had either been unable to exercise any influence upon the course of events by the use of their votes, or had been compelled to give their support to some doctrine or policy with which they disagreed.”[***]

In the British General Election of 1945, over 8 million electors, or 25 per cent of the total, did not vote. In the 1946 Congressional elections in the U.S.A., only 39 per cent of the electors voted, a fact that was considered by the entire American press to be indicative of very great activity on the part of the electors.

That is how matters stand as regards the so- called “General Elections” in Great Britain and the U.S.A. All these data provide the clearest and most convincing proof that the elections in bourgeois-democratic countries are not general at all and that bourgeois democracy is a hypocritical, truncated, and false affair.

What bourgeois democracy really is and how the bourgeoisie of today understand political liberty was shown by the elections to the legislature held in Italy in April 1948. In order to ensure that the forces of bourgeois reaction should achieve victory over the People’s Front parties in Italy, international imperialist reaction, headed by the U.S.A., openly threatened to resort to armed intervention, should the People’s Front parties be the victors.

The U.S. State Department declared that if the People’s Front were victorious all aid to Italy in the shape of food and manufactured products would be stopped. Atom bombs, wrote the American press, would be dropped on those towns where People’s Front candidates were elected. American warships carrying troops were anchored in Italian ports. French troops were brought up to the Italian frontier. In violation of the peace treaty with Italy, the De Gasperi government set up powerful police forces, equipped with American tanks, armoured cars, and artillery. Terror was employed openly and on a mass scale against people, against the progressive forces; so too were intimidation, threats, blackmail and plain deception, in a word, all possible means were brought into action in order to ensure victory for Italian reaction. The Vatican, too, with its black army of a million and a half priests, monks and nuns – in violation of all the laws forbidding the Vatican to interfere in political life – joined in the election campaign on the side of Italian reaction.

Reaction, lay and spiritual, threatened to withhold absolution, to bring down all the torments of Hades on the heads of those who refused to vote for the parties of bourgeois reaction. But, neither open terror, violence, deception, increased ideological pressure, nor the blatant and impudent intervention of the American Government in Italy’s internal affairs succeeded in bringing victory to reaction. Whereupon the De Gasperi government and its minister Scelba proceeded to falsify the election results by every possible means.

The Italian elections of April 1948 will go down in the history of bourgeois democracy as a most abominable and disgusting mockery of democracy and freedom.

* * *

The war of 1914-18, Lenin pointed out, made clear even to backward workers the real character of bourgeois democracy as being the dictatorship of the imperialist bourgeoisie. The war tore the false trimmings from bourgeois democracy, and showed that it was the thirst of the imperialist powers for conquest that was responsible for millions of people being killed. During the post-war period the real countenance of bourgeois democracy was still more clearly revealed. In a number of European countries, and first and foremost in Germany and Italy, bourgeois democracy actually paved the way there for the victory of fascism. The fascists began to kindle a new world war. As to the ruling circles of the “‘democratic” countries, particularly the ruling Conservative circles of Great Britain, they pursued a policy of “appeasing” the fascists, of pleading with the fascist “führers,” a policy of concessions to the fascists, of inciting the fascist aggressors to attack the U.S.S.R. The ruling circles of the U.S.A., on their part, financed the re-armament and further armament of imperialist Germany. As a result, the fascist aggressors let loose a new world war, which cost tens of millions of lives and threatened the freedom and independence of the nations of Europe and the whole world, and the democratic gains of the working people.

However, even the second world war taught little to the ruling circles of the present- day bourgeois-“democratic” countries, who still continue to connive with fascist elements. The reactionary groups in the U.S.A. are conducting an anti-popular domestic policy, one directed against the workers’ organizations, against progressive social ideas and progressive public figures. The governments of the imperialist states are pursuing a policy of supporting the reactionary elements all over the world, a policy of suppressing the movement for national liberation in the colonial countries. Militarization on an enormous scale is taking place in the countries of old, bourgeois democracy which at one time, in the epoch of pre-monopolist capitalism, were distinguished, among other things, by the fact that militarism and military cliques were little developed there.

In January 1947, the American liberal weekly The New Republic published an article by Henry Wallace, former Vice-President of the U.S.A. This article, in which he disclosed the growth of militarist tendencies in the U.S.A., caused a tremendous uproar in that country. Army and militarist circles, declared Wallace, dominate in the sphere of scientific research, and control scientists. The military buy science and scientists. Many American universities derive more funds from the War Department than from all other sources put together.

Wallace wrote that prior to the war the U.S.A. expended almost 50 million dollars annually on research work. In 1946 they expended almost one billion dollars, 90 per cent of which was for war purposes. Science – he said – was degenerating to the brute level of Nazism, when it expended the greater part of its time working out methods of destroying human life.

The military outlook, continued Wallace, must not be permitted to dominate over science in peacetime. If we permitted the present situation to continue, things would finally reach a point where a semi-military police state would be established in the U.S.A.

Similar reproaches were levelled at bourgeois democracy by Stafford Cripps, in a book published in England comparatively recently and entitled Democracy Up-to-Date. The author speaks of the decline of democracy in Great Britain. Proof of this, he states, is to be found in the apathy of the electors, in the lack of interest in the House of Commons and its work. Cripps admits that the system of British democracy suffers from grave defects “arising out of the advantages which wealth can give to one or other side in an electoral contest.”

Now that Cripps has become one of the leading figures in the British Labour Government, he is exerting no little effort to ensure that the profits of the capitalists go up, and that the standard of living of the workers goes down.

Such are the fundamental defects of present-day bourgeois democracy, as admitted even by supporters and upholders of the bourgeois system.

The real rulers of American “democracy” are the oil, chemical, steel and other magnates, the bosses of the huge monopolies and trusts; they include Herbert Hoover, ex-president of the U.S.A., Du Pont, member of the board of the chemicals and explosives company that is playing a leading part in the production of atom bombs, the Rockefeller-Morgan group, the banker Eugene Meyer, the owners of the majority of the shares of General Motors and General Electric, the Fords and Whitneys, the Mellons, Harknesses and others.

In 1946 there was republished in the U.S.A. Lundherg’s America’s 60 Families, a book that describes the financial oligarchy of present-day America which is made up of approximately 60 of the wealthiest families and is the unofficial, invisible, behind-the-scenes but actual government, the “money government.” “The outstanding American proprietors of today,” writes Lundberg, “tower historically over the proud aristocracy that surrounded Louis XIV, Czar Nicholas, Kaiser Wilhelm, and the Emperor Franz Joseph, and wield vastly greater power. The might of cardinal Richelieu, Metternich, Bismarck, or Disraeli was no greater than that of private citizens, undistinguished by titles, like J. P. Morgan, Andrew W. Mellon, John D. Rockefeller, Henry Ford and the Du Ponts.” They it is who are the uncrowned kings of America. They it is who exert enormous influence over the line of government policy, they it is who pursue the policy of fighting the workers and the trade unions within the country. They, the uncrowned kings, are the power behind the scenes, and the official organs of government pay careful heed to their instructions, to their desires.

Present-day American democracy is in fact “democracy” for suppressing the working-class movement within the country, “democracy” for supporting the most reactionary elements throughout the world, “democracy” for unbridled imperialist expansion. The anti-labour Truman- Case and Taft-Hartley Acts, the effort of reaction to destroy the workers’ organizations and deprive the workers of their rights, the campaigns of mass terror directed against the Negroes, the incitement of anti-Semitism, and the persecution of Communists – all these are glaring illustrations of the organic defects of present-day American “democracy.”

With ever growing frequency the demand is being raised in the columns of the reactionary press and on the floor of Congress that the activities of the Communist Party be banned. Thus, at the Congress session of January 23, 1947, the Republican Dirksen raised the demand that the government take measures against Communist Party activity in the U.S.A.; McCormack went still further and demanded not only that the Communist Party be banned but also that a crusade be conducted against Communism in Europe. He called on the U.S. Government to render more energetic and active support to the reactionary elements in France, Italy, Spain and other countries. In March 1947, the Secretary of Labour of the United States, Schwellenbach, speaking before the House Committee on Labour and Education, declared in favour of the Communist Party being outlawed. Schwellenbach demanded that Communists be dismissed from public bodies of every kind, and that they be deprived of the right to hold office in the trade unions. The whole of this campaign was crowned by the arch-reactionary Mundt Bill, directed against the elementary civil rights of the industrial workers and working people in general.

The ultra-reactionaries in the U.S.A. are openly driving the country to fascism. Numerous government bodies resort to unconstitutional practices in conducting an organized ideological and political campaign against the Communists and the entire labour movement. Many reactionary newspapers call for the summary liquidation “here and now,” of the Communist Party, trade union and other progressive organizations; they demand that active members of the labour movement be ruthlessly dealt with. This “crusade” of the reactionary press in the U.S.A. brings back to mind the “famous” campaigns conducted by the German fascists in the years preceding their advent to power.

Thomas, then chairman of the notorious Committee to Investigate Un-American Activities made the statement in Congress that: “Our job for the next two years shall be to rout them [the Communists] out.” (The New York Times, Nov. 27, 1946.)

On the insistence of Thomas and Hoover a special committee was appointed at the end of November 1946 to investigate “officials under suspicion” and to purge government institutions of the “reds.”

The New York P. M. in an item dealing with the commencement of the operations of this Committee wrote that the attempt to replace the Civil Service Commission by the Federal Bureau of Investigation constituted a great danger. Should such a replacement take place it would be one more step, and a very disastrous one, towards transforming the Federal Bureau of Investigation into a political police force, and the United States into a police state. This would be a “disruptive” act of far greater dimensions than anything any official could commit.

In March 1947 Truman issued an order, that went into immediate effect, for all civil servants to undergo investigation and for the dismissal of all “subversive” persons, i.e., of those suspected of adherence to or sympathy with the Communist and other democratic organizations. With a view to covering up the fact that the drive was aimed at democratic organizations, Truman’s order placed the Communist and other democratic organizations on a level with fascist organizations. The order required 2,300,000 U.S.A. civil servants to undergo examination by the Federal Bureau of Investigation.

Needless to say, this order will least of all affect the fascist and semi-fascist elements, who often occupy quite important posts in the U.S.A. It will be directed and wholly operated against the progressive and democratic elements in the country.

Such are the facts that supply us with a picture of the state of present-day American “dollar democracy.” Formally the democratic freedoms are exalted and propagated. Actually they exist merely for those who have the dollars. Formally the praises are sung, in a hundred and one different ways, of “freedom of speech,” “freedom of the press,” and “freedom of assembly.” Actually these freedoms are enjoyed, and enjoyed without limit, by the reactionary circles and organizations that are supported by the magnates of finance capital. As to the progressive organizations, personalities, and press, every possible obstacle is raised to prevent them developing their activity.

And what can be said of the reactionary and expansionist policy that is being conducted by American imperialism behind a smoke screen of talk about democracy? The American imperialists are giving every possible support to the reactionary elements in Japan; the imperialists of the U.S.A. and Great Britain are lending their aid to all the reactionary elements in Europe, the Near and Middle East, Greece and Turkey. The American imperialists are actively assisting Chiang Kai-shek’s fascist clique in their war on the Chinese people. The troops of “democratic” Holland, supported by the British and Americans, are suppressing the struggle for national liberation in Indonesia.

In November 1918, Lenin pointed out, in an article entitled “Valuable Admissions of Pitirim Sorokin,” that “… Anglo-American imperialism, which is reinstating reaction all over the world and has perfectly learned how to use the form of the democratic republic”[†††] is stifling the small and weak nations.

This characterization, as given by Lenin, is fully applicable today to the policy of the reactionary circles of the U.S.A. and Great Britain.

With the connivance of the Labour Government the fascist organizations in England are freely extending their disruptive activities. Mosley, one of the leaders of British fascism, has his own publishing establishment. In 1946 he published his book My Answer, which even the Conservative Lord Elibank compared to Hitler’s Mein Kampf. A number of fascist organizations, like the Duchess of Atholl’s British League for European Freedom, have been established and are operating in England. This latter organization gathers together the fascist and Whiteguard dregs from the People’s Democracies. Other fascist organizations, like the British People’s Party, the League of Christian Reformers, and the Imperial Fascist League openly and systematically propagate racial theories of the wildest type. All these organizations have combined in a fascist “congress.” At a meeting held in London on December 10, 1946, and convened by the fascist “congress,” John Beckett cynically and brazenly extolled the Nazi Party and its bandit policy.

And such statements are being made openly now, after all freedom-loving mankind has seen that fascism means the enslavement and extermination of nations, the destruction of the world’s culture!

The fascist elements are openly renewing their activity in South Africa, where the machinery of state is being fascised, racial discrimination is practised, raids are made on workers’ organizations, and their leaders are arrested. All these things are being done by the South African Government, which is headed by fascist, racialist politicians.

The fascist party has been legalized in Canada. The leader of this party, Adrien Arcand, recently declared that fascism in Canada was stronger now than ever before. He maintains contact with the fascists in Great Britain, the Union of South Africa, New Zealand, and elsewhere.

The historical experience of the bourgeois-democratic countries teaches us that to give the fascists a free hand means to doom the working people to oppression of the worst kind, to threaten the very existence of the peoples. To give the enemies of democracy a free hand is not democracy but the negation of it. To give a free hand to the enemies of democracy is to create favourable conditions for the growth of fascism.

The time has passed when the doors of Great Britain were open to revolutionary refugees from various countries, when such men as Marx, Engels, Herzen, Kossuth, and Mazzini could conduct their activities relatively unhindered. On the contrary, England – the very England where the Labour Party, which considers itself to be a veritable buttress of democracy, is in power – gives sanctuary to the most reactionary fascist and pro-fascist elements, who have been flung out of their countries by the regimes of People’s Democracy.

The Chetniks of Yugoslavia, and the Rumanian, Polish and Bulgarian Whiteguards have found a haven and a “pleasant reception” in Great Britain. This fascist scum, these worst enemies of the people are given facilities in England to hold meetings, to publish their filthy newssheets, to engage in provocative machinations, to stir up trouble and to conduct disruptive work. And all this is done supposedly in pursuance of the principles of democracy, in the name of “freedom of speech,” “freedom of the press,” etc. Is any more obvious proof required of the deep deficiencies and cankers of present-day bourgeois democracy?

The defeat of the Conservatives and the advent to power of the Labour Government were a reflection of the fact that the working masses of England had moved considerably to the left. In voting down the policy of Churchill and the Tories, the British working class hoped that with the Labour Party in power a considerable change in government policy would result. Such change, however, did not ensue. The actual fact is that Great Britain, where the Labour Party is in power, is engaged in suppressing the movements for national liberation in India, Egypt, Indonesia, Palestine and other countries, in supporting the forces of reaction in Europe – in Greece, Spain, the western zone of Germany, Austria and other countries.

The Labour Party leaders consider theirs to be a socialist government, but they have kept intact the old, bourgeois machinery of state which is unable to conduct anything other than an imperialist policy. They have kept intact the economic system of capitalism. The nationalization of the mining and certain other industries in England does not abolish the domination of British monopoly capital, while the imperialist policy of the British Government is a sufficiently clear indication of the character of present-day bourgeois democracy in Great Britain.

* * *

Soviet democracy differs fundamentally from bourgeois democracy.

Born in October 1917, Soviet socialist democracy has proved to be a great, vital and transforming force. The victory of the Great October Socialist Revolution meant that the epoch of the parliamentarism of the capitalists had been replaced by an epoch of Soviet institutions of state.

What are the specific features of Soviet democracy?

Firstly, its economic basis is the predominance of the social ownership of the means of production. The victory of Socialism in our country, the absence of exploiting classes – such is the basis on which socialist democracy is flourishing. It is a democracy that differs in principle from bourgeois democracy. Socialist democracy is democracy of a higher type.

For the first time in history there has grown up and acquired strength a Socialist State in which the entire population has been drawn into active participation in the country’s political life; for the first time a political system has developed and become firmly established under which the widest masses of the people really, and not in words alone, take part in administering the State.

Secondly, Soviet democracy is not ordinary democracy, but socialist democracy. The specific feature of the Constitution of the U.S.S.R. is that it does not limit itself to registering the formal rights of citizens, but places the main emphasis on the question of guaranteeing these rights. In the U.S.S.R. not only is the equality of the rights of citizens proclaimed – this equality of rights is guaranteed by the fact of the abolition of the exploitation of man by man. In the U.S.S.R. not only has the right to work been proclaimed – this right is guaranteed in fact. Socialist democracy has put an end, once and for all, to formal bourgeois democracy.

Thirdly, Soviet democracy is now based on the complete moral and political unity that has been achieved in Soviet society. The moral and political unity of the Soviet people – the result of the elimination of the exploiting classes in our country and of the enormous amount of educational work done by the Bolshevik Party – is a supreme achievement of our time. Under capitalism, where society is split into warring classes, the unity of society is unthinkable. The moral and political unity of the people, which came into being as a result of the victory of Socialism in our country, is a motive force of the development of Soviet society, an expression of genuine socialist democracy and a condition of its further vigorous growth.

Fourthly, a specific feature of Soviet socialist democracy is that the leading force in our country, the vanguard of the people, is the Bolshevik Party, the Party of Lenin and Stalin. The fact that a single, united Party exists which is leading forward the peoples of the Soviet Union and giving best expression to their interests is a subject of countless attacks on Soviet democracy by bourgeois publicists. In the view of the apologists of bourgeois democracy, the existence in a given country of a number of parties and the struggle that goes on between them constitute one of the fundamental features of democracy, whereas the absence of such a struggle in the Soviet Union and the existence of only one party prove, so they aver, that our democracy is defective. But these upholders of bourgeois democracy deliberately gloss over the fact that in bourgeois society, split, as it is, into classes with their antagonistic class interests, and torn by the struggle between various social groups, the existence of a number of warring parties is inevitable. These individuals, moreover, maintain silence about the fact that there is no difference in principle between the Republican and the Democratic parties in the U.S.A. They are actually one party. They are two factions of the bourgeoisie, which take turns in oppressing the people.

In Soviet society, which is free of class antagonisms, there is no basis for a number of ‘ parties; there is one party and it best reflects the interests of the people. The Bolshevik Party is a party that deservedly enjoys the undivided confidence of the people, for it has proved in practice its self-sacrificing devotion to the people and its ability to lead them in their great historical enterprise.

As far back as the year 1936, Comrade Stalin said: “As to freedom for various political parties, we adhere to somewhat different views. A party is a part of a class, its most advanced part. Several parties, and, consequently, freedom for parties, can exist only in a society in which there are antagonistic classes whose interests are mutually hostile and irreconcilable – in which there are, say, capitalists and workers, landlords and peasants, kulaks and poor peasants, etc. But in the U.S.S.R. there are no longer such classes as the capitalists, the landlords, the kulaks, etc. In the U.S.S.R. there are only two classes, workers and peasants, whose interests – far from being mutually hostile – are, on the contrary, friendly. Hence, there is no ground in the U.S.S.R. for the existence of several parties and, consequently, for freedom for these parties. In the U.S.S.R. there is ground only for one Party, the Communist Party. In the U.S.S.R. only one party can exist, the Communist Party, which courageously defends the interests of the workers and peasants to the very end. And that it defends the interests of these classes not at all badly, of that there can hardly be any doubt.”[‡‡‡]

In the shape of the Soviet State we have a political organization of society that is millions of times more democratic than the most democratic bourgeois republic. “Only Soviet Russia” – wrote Lenin – “has given the proletariat, and all working folk – the overwhelming majority of the people of Russia – a freedom and democracy unparalleled, impossible and unthinkable in any bourgeois-democratic republic; it has done so by, for example, depriving the bourgeoisie of palaces and mansions (without this, freedom of assembly is hypocrisy), by depriving the capitalists of the printing presses and newsprint (without this freedom of the press for the working majority of the nation is a fraud) and by replacing bourgeois parliamentarism by the democratic organization of the Soviets, which are a thousand times closer to the ‘people,’ more ‘democratic’ than the most democratic bourgeois parliament.”[§§§]

Already on the eve of the October Revolution, when elaborating the theoretical principles of the Soviet State, Lenin pointed out that the Soviets, as the state form of the dictatorship of the proletariat, constitute a new type of state machinery, an apparatus providing an indissoluble, close, easily tested and renewed link with the popular masses such as the former state apparatus never possessed in the remotest degree. “Compared with bourgeois parliamentarism,” said Lenin, “this represents an advance in the development of democracy which is of historical and world-wide significance.”[****]

The Soviet state system best serves to defend and guarantee the interests of the peoples of the U.S.S.R. That is why the masses of the people have so great a love for the Soviet system, why they are so devoted to their Socialist Motherland, which inspires them to perform deeds of heroism. Soviet patriotism is one of the great motive forces of the development of Soviet society. During the Great Patriotic War, the patriotism of the workers, peasants and intelligentsia was displayed in all its titanic might.

In his report on the occasion of the 27th anniversary of the Great October Socialist Revolution, Comrade Stalin gave the following classic definition of the essence and the strength of Soviet patriotism:

“The strength of Soviet patriotism lies in the fact that it is based not on racial or nationalistic prejudices, but upon the profound devotion and loyalty of the people to their Soviet Motherland, on the fraternal cooperation of the working people of all the nations inhabiting our country. Soviet patriotism is a harmonious blend of the national traditions of the peoples and the common vital interests of all the working people of the Soviet Union.”[††††]

The proposition advanced here by Comrade Stalin, which generalizes the very rich experience of the friendly cooperation among the nations of the Soviet Union, and of the development of their statehood and culture, is one of the outstanding discoveries made in the development of Leninist theory and is of the greatest importance as regards the political education of the people, as regards their education in the spirit of Soviet patriotism.

Soviet patriotism has grown and blossomed forth under Soviet democracy. Just as Soviet socialist democracy is a higher type of democracy differing fundamentally from the old forms of bourgeois democracy, so Soviet patriotism is a new and higher type of patriotism. Its source is the victory of the Great October Socialist Revolution, the construction of Socialism in our country. Soviet patriotism develops on a new social and economic foundation, on the basis of new social relations.

The Soviet State has shown, and continues to show, itself to be a tremendous transforming force. The transformations that have been effected in the U.S.S.R. and that have, in a brief historical period, turned our native land into a mighty industrial and kolkhoz power, show how great are the forces that Soviet socialist democracy can rouse, mobilize and direct for creative endeavour. Soviet democracy showed itself to be a great force in the building of socialist society, in the defence of the Socialist Homeland against the fascist invaders, and is a powerful factor facilitating the further onward march of Soviet society, towards Communism.

The entire system of organization of the Soviet State is adapted to raising the creative energy of the popular masses to the maximum degree for the solution of the tasks of socialist construction. In the U.S.S.R., for the first time in human history, millions upon millions of the common people have been drawn into conscious political activity, into the building of the new, Communist society, and the mighty energy of the people has been aroused. “The living creative work of the masses,” Lenin said, “is what constitutes the main factor of the new social order.”[‡‡‡‡]

Gorky, in his novel Mother, makes one of his characters say the following words: “Russia will be the finest democracy in the world.” This dream of the great proletarian writer has found its living embodiment in our country.

One of the basic illustrations of the genuinely popular character of Soviet democracy is the fact that the masses of the people play a real part in administering the State, that no barrier exists in our country between the machinery of state and the people. The creative initiative of the masses, the pulsating activity of public organizations, the ever new forms of participation by the working people in economic and cultural development, the political activity of the people – all these are remarkable indexes of the great Soviet democracy existing in the U.S.S.R. It is the popular masses – those who in the most democratic bourgeois republics formally possess equal rights but actually are prevented from participating in the administration of the State – who under the Soviet system are drawn “unfailingly into constant and, moreover, decisive participation in the democratic administration of the state.”[§§§§] The main process taking place in our country in the upbuilding of the Soviet State is that of the constantly growing political activity of the popular masses, of the continuous promotion from the very midst of the people of new individuals possessed of organizing capacity, new men of talent, outstanding statesmen.

Since the adoption in 1936 of the Stalin Constitution, elections in the U.S.S.R. to the organs of supreme power have taken place on four occasions, viz.: twice to the Supreme Soviet of the U.S.S.R., and twice to the Supreme Soviets of the Union Republics.

In 1937, in the elections to the Supreme Soviet of the U.S.S.R., 96.8 per cent of the electors recorded their votes, and the candidates put forward by the bloc of Communists and non-Party people received 98.6 per cent of the total votes cast. Almost 90 million people voted solidly at that time for the bloc of Communists and non-Party people.

In 1938, in the elections to the Supreme Soviets of the Union Republics, the bloc of Communists and non-Party people received the votes of 99.4 per cent of electors who voted.

In 1946, in the elections to the Supreme Soviet of the U.S.S.R., 99.7 per cent of the electors recorded their votes, and the candidates put forward by the bloc of Communists and non-party people received 99.18 per cent of the total votes cast. Over 100 million electors voted as one man for the Bolshevik Party, and for the further consolidation of the Soviet State.

In the early part of 1947 there took place the elections to the Supreme Soviets of the Union Republics. The results constitute a further splendid victory for Soviet democracy, as the following figures will show:

What do these figures show?

Firstly, that in the Soviet Union practically all the electors, with absolutely insignificant exceptions, exercise their voting rights. This is testimony to the high level of civic consciousness, to the tremendous political activity of the masses of the people. The working folk of the Soviet Union take part in the elections as in some great festive event. Such a state of affairs is absolutely unthinkable in bourgeois society; it is the product of the victory of Socialism, and of that alone.

The entire system of organization of the elections – from the consistent, thoroughly democratic method by which our public organizations nominate candidates, and the method by which candidatures are discussed, to the provision of all the conditions necessary to enable each elector to fulfil his civic duty, wherever he may be when the elections take place – this entire system of organization of the elections is marked from beginning to end by genuine Stalinist love for the working people, by concern for their interests and requirements, by the striving to ensure that the masses are drawn to the maximum degree into the actual administration of the State.

Secondly, that with absolutely insignificant exceptions, all the electors who record their votes cast them for the bloc of Communists and non-Party people. This complete unanimity displayed in the voting is an expression of the complete moral and political unity of the people, a unity of the people such as is created and consolidated by the socialist system of society. The people stand forth as a single whole, in the real sense of the term.

In the Stalin constituency of Moscow where on February 9, 1947, the candidate in the election of the Deputy to the Supreme Soviet of the Russian Soviet Socialist Republic was J. V. Stalin, 100 per cent of the electors recorded their votes. Not a single one of the ballot papers was invalid, neither did a single one of them register rejection of the candidate. J. V. Stalin was unanimously elected Deputy. The working people of all the Union and Autonomous Republics unanimously nominated Comrade Stalin as their No. 1 candidate in the elections of Deputies to their Supreme Soviets. Comrade Stalin is the elected representative of the entire Soviet people, a fact that splendidly reflects the unity of will and purpose of the Soviet people.

The name of Comrade Stalin is the symbol and banner of this unity. All our victories are bound up indissolubly with the name of Comrade Stalin. It is characteristic that as Soviet electors voted for Comrade Stalin, they wrote on the ballot papers messages full of ardent love for their leader and teacher. They voted for the man who is leading the Soviet people on to Communism, who is the embodiment of the hopes and strivings of all the nations of the U.S.S.R.

During the elections the Soviet people showed with renewed vigour that they stand solid behind the Party of Lenin and Stalin, that they are supremely devoted to the interests of the Socialist Motherland.

Only in the Land of Socialism, where socialist democracy prevails, where the gains we have achieved are inscribed in letters of gold in the Stalin Constitution is there such a manifestation of civic consciousness and patriotism. Such unity in voting, such a manifestation of organization and unanimity in the election of candidates are possible only in Soviet society, where the people are free from all forms of exploitation whatsoever. Only the complete moral and political unity of the people renders possible such unanimity as is displayed in the voting during the elections to the supreme organs of the Soviet Union.

The Communist Party – the force that inspires, guides and directs the Soviet State – comes to the masses with a clear program for the development of the country, and in clear-cut terms defines the tasks facing the people. This program best expresses the interests of the people, their hopes and strivings. The Communist Party does all it can to ensure that every elector acquires a better and more profound understanding of its policy, which is the living basis of the Soviet system, that every elector takes an active part in discussing problems of State, and votes with full understanding for the bloc of Communists and non-Party people. As Lenin said: “In our view a state is strong in so far as the masses are conscious. It is strong when the masses know everything, can form an opinion of everything, and do everything consciously.”[*****]

In his historic speech delivered on February 9, 1946, Comrade Stalin said: “I regard the election campaign as the voters’ judgment of the Communist Party as the ruling party. The result of the election will be the voters’ verdict.”[†††††] The elections in the Soviet Union are a repeated indication of the love felt by the masses for the Bolshevik Party. The masses of the people in the Soviet Union, to whom the Bolshevik Party is near and dear, voluntarily entrust their destinies to it, for practical experience has convinced them that the Party of Lenin and Stalin has no interests other than those of the people, and has no tasks other than those of leading the people onward, towards an ever better life, to Communism. The Bolshevik Party gives scientific expression to the fundamental, vital interests of the masses of the people, and this is the necessary condition that ensures it the leading role it plays in the Soviet State. Comrade Stalin has spoken of the “subtle moral threads” that bind the Party to those outside its ranks, of the profound trust in the Party and its leadership felt by the popular masses of the Soviet Union. This, it is, that finds expression in the bloc of Communists and non-Party people at the elections to the organs of the Soviet State. Comrade Stalin has said: “There is not, nor has there ever been in the world such a powerful and authoritative government as our Soviet government. There is not, nor has there ever been in the world such a powerful and authoritative Party as our Communist Party.”[‡‡‡‡‡]

The elections in the Soviet Union are a great schooling in political activity, a manifestation of supreme political activity on the part of the people. Hundreds of thousands of active workers, agitators and propagandists, many tens of thousands of members of Ward and Constituency Electoral Commissions, and of electors’ representatives take part in the election campaigns. The elections are the occasion for a countrywide review by the people of achievements and successes and also for a criticism of the defects of the work of the various parts of the machinery of state. Countless meetings take place at which affairs of state, and candidatures, are discussed. In the political work it conducts in preparation for the elections the Communist Party reaches every single elector. As a result we can say that there has developed a new form of political life, unthinkable in bourgeois countries, a form of participation by the entire people in the discussion of affairs of state, in the solution of most important problems of state. Socialism has elaborated such forms as enable all the working people easily to be drawn into the administration of the State.

Such facts as the solid vote of over 99 per cent of the electors for the candidates of the bloc of Communists and non-Party people, for the policy of the Party of Lenin and Stalin, are events of the greatest historical importance. In events and facts such as these we see the remarkable results of the work done by the Bolshevik Party.

Much energy has been expended by bourgeois students of law and statecraft to prove the thesis that “real government by the people” is altogether impossible, that it is inevitable for representative bodies to lose touch with the people, that even the very best representative bodies in the last analysis degenerate. It has been asserted that it is impossible to give effect to democracy in a large country. Rousseau, as is well known, upheld in his Contrat Social the thesis that real democracy is only possible in a small country where all citizens can take a personal part in discussing affairs of state.

Under the bourgeois system, where a struggle takes place between antagonistic classes, real government by the people is impossible. But that which is unthinkable and impossible under capitalism, is thinkable, possible and actually effected under Socialism.

In his works preliminary to The State and Revolution Lenin, even before the victory of the Great October Socialist Revolution, wrote that under Socialism there would be complete, universal and unlimited democracy. This, he said, would be “the sort of new type of ‘direct popular legislation’ that Engels rejected under capitalism.”[§§§§§]

These views of Lenin about a new type of democracy based on the predominance of the social ownership of the means of production, have been fully implemented in the actual life of our country.

One of the striking indexes of the majesty of Soviet democracy is the complete equality of rights exercised by women in the Soviet State. Lenin said that woman’s position in society shows particularly clearly the difference between bourgeois and socialist democracy.

There is not a single bourgeois-democratic country in the world where women enjoy full equality of rights. In bourgeois countries women either play no part at all, or participate to a limited degree, in public and political life; female labour there is exploited and counted as the very cheapest. The proportion of female labour employed in the more important branches of industry, in the leading professions and in the different branches of culture, is negligible. Not a single bourgeois republic has given women equality with man, either formally or in fact.

The picture is absolutely different in the U.S.S.R. In the Soviet State women enjoy all rights to the full, on a par with men. They take a most active part in the economic, political and cultural life of the country, and fully and comprehensively display their creative abilities in the most diverse spheres of socialist construction. The history of the development of the Soviet State has shown what an enormous number of talented people, and of individuals with a capacity for organization are to be found among the masses of working women. Women occupy a place of honour everywhere in our country – in the kolkhozes and in industry, in all spheres of culture and science, in political and public organizations – and side by side with the menfolk are fulfilling the tasks facing the Soviet Land. “The unprecedented labour heroism,” said Comrade Stalin on November 6, 1944, in characterizing the part played by the women during the war, “displayed by our Soviet women and our valiant youth, who have borne the brunt of the burden in our factories and mills and in our collective and state farms, will go down in history for ever.”[******]

An index of the genuinely socialist character of our democracy is the fact that the national question has been successfully solved in the U.S.S.R. For the first time in the history of multinational states, the national question and the problem of cooperation among nations have been solved in the Soviet Union – the Land of Socialism. As is well known, the national question is an exceptionally complicated one. Under capitalism it is impossible to solve the national question. The existence of capitalism without the suppression of nationalities, without national oppression is just as impossible as is the existence of Socialism without the abolition of national oppression, without national freedom. The experience of Austria-Hungary, and of Turkey, and the instability of the present British Empire are the most palpable evidence of how unstable are bourgeois multinational states.

The solution of the national question in the U.S.S.R. is one of the supreme achievements of our age. The results of the October Socialist Revolution have shown themselves not only in the abolition of national oppression in our country, but also in the fact that there have been elaborated the forms of state which solve the national question, forms which unite the various nationalities into a single multinational Soviet State, distinguished by its stability and invincibility.

The beneficent influence of the October Socialist Revolution and of Soviet democracy has also been expressed in the fact that they have awakened to life and brought into the historical arena a number of formerly backward nations and nationalities, given them new life and new development. Formerly nations arose and became consolidated under the supremacy of the bourgeoisie. This resulted in two national cultures existing within each nation, and lent the dominant national culture an exploiting, nationalistic character.

The inexhaustible strength of the Soviet system and of Soviet democracy is expressed in the fact that many nationalities in our country are being consolidated as nations not under the aegis of the bourgeois order, as was formerly the case, but under the aegis of Soviet rule. Comrade Stalin has described this as a fact unexampled in history, but a fact nonetheless. It is a new process, never known before to history, and one that it could not know. It is a new phenomenon, one that has developed under the Soviet order, on the basis of the Soviet system, in the new social and political conditions where there is no exploitation or oppression. These are nations that have been revived by the conditions of the Soviet system. The culture being developed by these nations is – as is the case with all the nations of the Soviet Union – a culture national in form and socialist in content.

The experience of the construction of Soviet socialist society shows, therefore, that Socialism does not at all imply the immediate dying-off of nations, as many vulgarizers of Marxism would have had us believe, but the development to the full of the inner potentialities of nations on a basis quite different from that of the conditions of the bourgeois system.

The majesty of Soviet democracy is mirrored in the fact that previously-backward nationalities are being raised economically and culturally to the level of the more advanced ones. For the first time in the history of multinational states the central authority has resolutely and consistently carried through a system of measures aimed at achieving real equality among nations, thereby doing away with the previous economic, political and cultural backwardness of the formerly oppressed nations and nationalities, and raising them to the level of the advanced nations. In this regard, too, is there manifested the fundamental difference between Soviet democracy and bourgeois democracy.

Under capitalism the line is systematically pursued of keeping the oppressed nations backward, of artificially holding up their industrial and cultural development, of ruthlessly exploiting them. Under Soviet democracy a planned system of measures is operated, aimed at raising the formerly oppressed and backward peoples to the level of the advanced ones. It is hard to appraise fully the world-historic significance of this fact. The formerly oppressed nationalities have seen the practical application of the great emancipatory principles of Bolshevik policy in the sphere of the national question. Soviet democracy means that the national oppression that has existed for centuries has been replaced by the great amity among the peoples of the U.S.S.R., an amity that marks a new era in the development of inter-national relations.

The Russian people, said Comrade Stalin, “is the most outstanding of all the nations that constitute the Soviet Union.” As a consequence of the great part played by the Russian people in October 1917, and then during the war against the foreign interventionists and Whiteguards, and during the years of peaceful construction; as a consequence of the epoch-making role played by the Russian nation during the Great Patriotic War of 1941-1945, it earned general recognition among all the other nations of our country as the leading force of the Soviet Union.

Characterizing the bourgeois federations and diverse states that exist under capitalism, Comrade Stalin has pointed out that in the main they took shape as a result of violence and oppression, that the course of their development was marked by repeated acts of violence and oppression. Even the revolutionary French bourgeoisie of the end of the XVIII century, who in their Declaration of Rights of Man and of the Citizen proclaimed that all men are born equal and hence should enjoy equal rights – even they considered it necessary to record the point in the Constitution of 1791 that “the present Constitution does not apply to French colonies and possessions in Asia, Africa, and America, although they constitute part of the French Empire.” And such a federal state as the United States of America, which boasts of the freedom possessed by its states, took final shape not as a result of voluntary union at all, but of the application of numerous measures for the forcible consolidation of the Union, for the forcible incorporation of many states.

In 1803 the United States of America purchased Louisiana from France, in 1819 it purchased Florida from Spain, and in 1845, as a result of war with Mexico, forcibly incorporated Texas, and so on. All this has little in common with the voluntary union of states to which such loud references are made by the apologists of American democracy. James Bryce, the well-known authority on the American republic, once wrote that while the victory won by the North in the war of 1861-1865 was progressive in the sense that it did away with slavery, it was at the same time a warning against any attempt by the states to secede from the Union, so that it was not even considered necessary to introduce in the U.S.A. constitution clauses denying the right of the states to secede from the Union.

A fundamentally different principle on which a federal state is based – that of genuinely voluntary federation – is expressed in the Stalin Constitution. To enable the reader to understand the essence of socialist democracy, the great importance of the principles followed by the Bolshevik Party in the building of our multinational Soviet State, it is important to indicate the thesis developed by Comrade Stalin concerning the reservation of the right of the Union Republics freely to secede from the U.S.S.R. In his speech on the Constitution, where he rejected amendments the purpose of which was to delete from the Constitution the article dealing with this point, Comrade Stalin stated: “The U.S.S.R. is a voluntary union of Union Republics with equal rights. To delete from the Constitution the article providing for the right of free secession from the U.S.S.R. would be to violate the voluntary character of this union.”[††††††] As Comrade Stalin pointed out, there is not a single republic in our country that would want to secede from the U.S.S.R., but inasmuch as the U.S.S.R. is based on a voluntary union of the peoples, a clause is recorded in the Constitution stressing this voluntary character of the Union of Soviet Socialist Republics.

Comrade Stalin pointed out further that not only should formal proclamation be made of the right to secede from the Union, but matters should be so arranged that this right is not turned into an empty, meaningless scrap of paper. That is why one of the three qualifications for an Autonomous Republic to be transferred to the category of Union Republic is that it is situated along the country’s borders. Comrade Stalin said that “…the Republic concerned must be a border republic, not surrounded on all sides by U.S.S.R. territory. Why? Because since the Union Republics have the right to secede from the U.S.S.R., a republic, on becoming a Union Republic, must be in a position logically and actually to raise the question of secession from the U.S.S.R. And this question can be raised only by a republic which, say, borders on some foreign state, and, consequently, is not surrounded on all sides by U.S.S.R. territory.”[‡‡‡‡‡‡]

There is no republic in our country desirous of seceding from the U.S.S.R. Only as component parts of the U.S.S.R. have our national republics secured the conditions requisite for their development on an unparalleled scale. Only with the aid of the entire Union have the different republics risen to enormous heights and secured the most extensive facilities for their prosperous growth. The principles proclaimed in the Constitution regarding the voluntary character of the union and the equality of the rights possessed by the Union Republics are guaranteed by the conditions that actually exist for this voluntary union and enjoyment of equal rights.

Is a clearer expression required of the principles of socialist democracy embodied in the Stalin Constitution?

Only socialist democracy fully and thoroughly solves the problem of fraternal collaboration among nations in a single multinational Soviet State. It is only such a solution of the problem that has created the stability and steadfastness, the firmness and might which distinguish the Soviet multinational State.

The Tenth Session of the Supreme Soviet of the U.S.S.R., which took place from January 28 to February 1, 1944 – when the Patriotic War was at its height – adopted decisions of exceptionally great importance, which constituted a new advance in the development of our multinational Soviet Socialist State. The Session adopted laws for the establishment of military formations of the Union Republics, and in this connection for the transformation of the People’s Commissariat of Defence from an all-Union into a Union-Republican People’s Commissariat (now Ministry); and for the endowment of the Union Republics with the right to enter into direct relations with foreign powers and to conclude treaties with them; and in this connection for the transformation of the People’s Commissariat of Foreign Affairs from an all-Union into a Union-Republican People’s Commissariat (now Ministry). All this became possible and necessary as a result of the political, economic and cultural development of the Union Republics. These new achievements in the development of the Soviet State were, by decision of the Third Session of the Second Convocation of the Supreme Soviet of the U.S.S.R. held in 1947, embodied in the Stalin Constitution.

* * *

Such are the most important and characteristic features of Soviet socialist democracy. The strength and vitality of Soviet democracy have been tested by experience. A great and leading role has been played by Soviet democracy in the struggle against fascism. Now, in the post-war period, Soviet socialist democracy is in the van of all the progressive forces in the world waging the struggle against the reactionary elements, against the new warmongers, against those who wish to maintain and revive fascism. That is why Soviet socialist democracy meets with such sympathy, endorsement and admiration among all the progressive forces of the world.

Having emerged with honour from all the difficulties and trials of the Great Patriotic War, the Soviet people are now engaged in a self-sacrificing struggle to rehabilitate and further develop the economy of the U.S.S.R., to fulfill and overfulfill the new Stalin Five-Year Plan. One of the clearest indexes of the strength and vitality of Soviet socialist democracy is the fact that Soviet people, led by the Bolshevik Party, are making a reality of the task set by Stalin, namely, that of bringing about a rapid rise of the national economy.

PUBLISHER’S NOTE

This pamphlet is a translation of an essay published in the symposium Soviet Socialist Society prepared by the Institute of Philosophy of the Academy of Sciences of the U.S.S.R. and published by the Gospolitizdat, Moscow 1949.

 

[*] J. V. Stalin, Speech Delivered at an Election Meeting in the Stalin Election District, Moscow, February 9, 1946. Moscow 1946, p. 10.

[†] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXIII, p. 346.

[‡] V. I. Lenin, Selected Works, Two-Vol. ed., Vol. II, Moscow 1947, p. 535.

[§] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 551.

[**] V. I. Lenin, Collected Works, 3rd Russ. od., Vol. XXIII, p. 220.

[††] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXVI, p. 423.

[‡‡] K. Marx, The Eighteenth Brumaire of Louis Bonaparte, Moscow 1948, p. 34.

[§§] V. I. Lenin, Selected Works, Two-Vol. ed., Vol. II, Moscow 1947, p. 374.

[***] Ramsay Muir, How Britain Is Governed, p. 168.

[†††] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXIII, p. 293.

[‡‡‡] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 557.

[§§§] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXIII, p. 221.

[****] V. I. Lenin, Selected Works, Twelve-Vol. ed., Vol. VI, Moscow-Leningrad, p. 264.

[††††] J. V. Stalin, On the Great Patriotic War of the Soviet Union, Moscow 1940, p. 165.

[‡‡‡‡] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXII, p. 45.

[§§§§] V. I. Lenin, Selected Works, Twelve-Vol. ed., Vol. VII, Moscow-Leningrad, p. 231.

[*****] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXII, pp. 18-19.

[†††††] J. V. Stalin, Speech Delivered at an Election Meeting in the Stalin Election District, Moscow, February 9, 1946.Moscow 1946, p. 10.

[‡‡‡‡‡] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 438.

[§§§§§] V. I. Lenin, Marxism About the State, Russ. ed., Moscow 1934, p. 77.

[******] J. V. Stalin, On the Great Patriotic War of the Soviet Union, Moscow 1946, pp. 164-65.

[††††††] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 561.

[‡‡‡‡‡‡] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 562.

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Georgi Dimitrov to Stalin on the Question of “Social-Fascism”

Dimitrov to Stalin, 1 July 1934. Original in Russian. Type-written, with handwritten comments by Stalin.

1.7.34

From C. Dimitrov

Dear Com. Stalin!

The enclosed draft outline of [my] speech shows how I see the essence of the speech regarding the 2nd point of the agenda of the congress. In addition, I would like to raise in our forthcoming conversation the following questions:

I. On Social Democracy [1]

1. Whether it is correct to refer to social democracy indiscriminately as social-fascism. By taking such a position, we have frequently blocked our way to social democratic workers. [2]

2. Whether it is correct to consider social democracy everywhere and at all times the main social base of the bourgeoisie. [3]

3. Whether it is correct to consider all leftist s[ocial] d[emocratic] groups as a major threat under any conditions. [4]

4. Whether it is correct to treat all the leading cadres of s[ocial] d[emocratic] parties and of the reformist trade unions indiscriminately [5] as conscious traitors of the working class. One can expect, after all, that in the course of struggle quite a few [6] of today’s leading functionaries of the s[ocial] d[emocratic] parties and of the reformist trade unions will choose the path of revolution along with the s[ocial] d[emocratic] workers. It is in our interest to facilitate this transition for them and thus accelerate the transition of the s[ocial] d[emocratic] workers to our side.

5. Whether it is time to abandon useless discussion about the possibility or the impossibility of winning over the reformist trade unions instead of clearly formulating the task for its members to transform these trade unions into an instrument of the proletarian class struggle. [7]

6. The question of unifying the revolutionary and reformist trade unions without making the recognition of the hegemony of the Communist Party a necessary condition. [8]

II. On the United Front

1. The necessity to modify our united-front tactics in response to the changed conditions. Rather than using them exclusively [9] as a maneuver to expose social democracy without seriously attempting to forge a real workers’ unity through struggle, we must turn them into an effective factor in developing the mass struggle against the offensive of fascism. [10]

2. The necessity to reject the idea that the united front can only be built from below, and to stop regarding any simultaneous appeal to the leadership of a s[ocial] d[emocratic] party as opportunism. [11]

3. The necessity to launch the active initiative by the masses without petty tutelage of the Communist parties in their relations with the organs of the united front. Not to declare the hegemony of the Communist Party but to assure the actual leadership by the Communist Party. [12]

4. The necessity to radically alter our attitude toward s[ocial] d[emocracy] and non-party workers in all our mass work, agitation, and propaganda. It is essential to go beyond the general statements about the treason of social democracy, and to explain to the workers, concretely and patiently, what the social democratic policy of cooperation with the bourgeoisie is leading to and has already led to. [13] [It is essential] not to dump everything on the s[ocial] d[emocratic] leaders but to point out the responsibility of the s[ocial] d[emocratic] workers themselves, to make then think about their own responsibility and to look for the right way of struggle, etc. [14]

III. Regarding the Comintern Leadership

It is essential to change the methods of work and leadership in the Comintern, taking into account that it is impossible effectively to oversee from Moscow every detail of life of all 65 sections of the Comintern, which find themselves in very different conditions (parties in the metropolis and parties in the colonies, parties in highly developed industrial countries and in the predominantly peasant countries, legal and illegal parties, etc).

It is necessary to concentrate on the general political guidance of the Communist movement, on assistance to the parties in basic political and tactical questions, on creating a solid Bolshevik leadership in the local Communist parties, and on strengthening the Communist parties with workers while reducing the heavy bureaucratic apparatus of the ECCI.

It is essential to further promote Bolshevik self-criticism. Fear of this [self-criticism] has at times led to failure to clarify important political problems (questions of the current stage of the crisis and of the so-called military-inflationary juncture, the assessment and lessons of the Austrian events, etc.).

It is impossible to change the methods of leadership and work in the Comintern without partially renewing the cadres of the Comintern workers.

It is especially essential to secure close ties between the Comintern leadership and the Politburo of the VKP(b).

 

Footnotes

[1] This subhead is also underlined by hand.

[2] In the margin, handwritten by Stalin: “As to the leadership – yes; but not ‘indiscriminate.’”

[3] In the margin, handwritten by Stalin: “Of course not, in Persia.”

[4] In the margin, handwritten by Stalin: “in the major cap[italist] countries – yes.”

[5] In the margin, handwritten by Stalin: “Objectively – yes; consciously – some [of them].”

[6] In the margin, handwritten by Stalin: “‘Quite a few’ – not; some – yes.”

[7] In the margin, handwritten by Stalin: “It is time.”

[8] In the margin, handwritten by Stalin: “Conditions are necessary.”

[9] In the margin, handwritten by Stalin: “Against whom is this thesis [directed]?”

[10] In the margin, handwritten by Stalin: “[We] must.”

[11] In the margin, handwritten by Stalin: “Nevertheless, the United Front from below is the foundation.”

[12] In the margin, handwritten by Stalin: “No doubt, but against whom is this thesis [directed]?”

[13] In the margin, handwritten by Stalin: “Correct.”

[14] In the margin, handwritten by Stalin: “Yes!”

From “Dimitrov and Stalin, 1934-1943: Letters from the Soviet Archives” by Alexander Dallin and F.I. Firsov, pp. 13-16.

Communist Party of the Workers of France (PCOF): Our Position for the Second Round of the Presidential Elections

(Machine Translation from French)

The long campaign for the first round of the presidential elections ended with the qualification of E Macron and M Le Pen. Despite the strong injunction to go vote, abstention is 20%. In this figure, there are those who wanted to express their refusal of the system. This is the position that we have defended and implemented.

The gaps between the top four candidates are reduced: they get between 19.5 percent and 24 percent of the vote. This shows the narrowness of the electoral base of the two candidates that remain in the running.

The mass rejection of the representatives of the two parties that have governed for more than forty years, Fillon for the right and Hall for the PS, is one of the highlights of these results. The slap is particularly severe for the PS that has already exploded.

The media favorite, receiving supports for the oligarchy, E Macron, arrived at the top of the first round, in front of M Le Pen, who has the highest electoral score of the far right.

A significant number of voters wanted to translate, through voting for the candidate of France L’insoumise, JL Mélenchon, their opposition to neo-liberal politics and the PS.

This potential of resistance, such as expressed through the vote in favour of P. Poutou or N Artaud, as one who spoke for some in the ‘white’ vote or abstention, must engage in social struggles that have not ceased. Because the class struggle, at the national and international level, does not bend and doesn’t come to the calendar and election dates.

The second round promises to be a repetition of the call in 2002 to vote Chirac to block Le Pen: today, ‘it’s all behind Macron

The far right is a map of the oligarchy: map of the division of the labour movement and popular, of racism, of neoliberalism camouflaged under a speech of demagoguery social and nationalist, the politics of war.

Macron, the candidate displayed the oligarchy, the supporter of neoliberalism, of the uberisation of the society of European defence, NATO… is not a rampart on the far-right.

That is why, we refuse to bend to the injunction to the trailer of the Macron candidate and we call for abstention in the second round of the presidential elections.

These presidential elections, based on a customization with excess of political combat, will lead to the designation of the one who will manage the interests of french imperialism.

The urgency is to organize and to fight, to confront, to defend the interests of workers and popular, to combat the neoliberal policy, against the police state and the policy of war that Macron will amplify. To develop solidarity with the peoples struggling for their national and social emancipation.

That’s what our party will put forward, this first of may, through its watchword:

Against the reaction and the war, for a revolutionary break!

Paris, April 24, 2017

Ludo Martens: Trotsky’s role on the eve of the Second World War

by Ludo Martens
 
During the thirties, Trotsky literally became the world’s expert on anti-Communism. Even today, right-wing ideologues peruse Trotsky’s works in search of weapons against the Soviet Union under Stalin.

In 1982, when Reagan was again preaching the anti-Communist crusade, Henri Bernard, Professor Emeritus at the Royal Military School of Belgium, published a book to spread the following urgent message:

`The Communists of 1982 are the Nazis of 1939. We are weaker in front of Moscow than we were in August 1939 in front of Hitler.’

Bernard, op. cit. , p. 9.

All of the standard clichés of Le Pen , the fascist French Front National leader, are there:

`Terrorism is not the act of a few crazies. The basis of everything is the Soviet Union and the clandestine network of international terrorism.’

Ibid. , p. 121.

`Christian leftism is a Western wound.
`The synchronicity of `pacifist’ demonstrations shows how they were inspired by Moscow.’

Ibid. , p. 123.

`The British commandos who went to die in the Falklands showed that there still exist moral values in the West.’

Ibid. , p. 11.

But the tactics used by such an avowed anti-Communist as Bernard are very interesting. Here is how a man who,despite despising a `leftist Christian’, will ally himself with Trotsky.

`The private Lenin was, like Trotsky, a human being …. His personal life was full of nuance ….`Trotsky should normally have succeeded Lenin … he was the main architect of the October Revolution, the victor of the Civil War, the creator of the Red Army ….

`Lenin had much respect for Trotsky. He thought of him as successor. He thought Stalin was too brutal ….

`Within the Soviet Union, Trotsky rose up against the imposing bureaucracy that was paralysing the Communist machine ….

`Artist, educated, non-conformist and often prophet, he could not get along with the main dogmatists in the Party ….

`Stalin was nationalist, a sentiment that did not exist either in Lenin or Trotsky …. With Trotsky, the foreign Communist Parties could consider themselves as a force whose sole purpose was to impose a social order. With Stalin, they worked for the Kremlin and to further its imperialist politics.’

Ibid. , pp. 48–50.

We present here a few of the main theses that Trotsky put forward during the years 1937–1940, and that illustrate the nature of his absolute anti-Communist struggle. They allow one to understand why people in the Western security services, such as Henri Bernard, use Trotsky to fight Communists. They also shed some light on the class struggle between Bolsheviks and opportunists and on some aspects of the Purge of 1937–1938.

The enemy is the new aristocracy, the new Bolshevik bourgeoisie

For Trotsky, the main enemy was at the head of the Soviet State: it was the `new Bolshevik aristocracy’, the most anti-Socialist and anti-democratic layer of the society, a social layer that lived like `the well-to-do bourgeois of the United States’! Here is how he phrased it.

`The privileged bureaucracy … now represents the most antisocialist and the most antidemocratic sector of Soviet society.’

Trotsky, Thermidor et l’antisémitisme (22 February 1937). La lutte, pp. 143–144.

`We accuse the ruling clique of having transformed itself into a new aristocracy, oppressing and robbing the masses …. The higher layer of the bureaucracy lives approximately the same kind of life as the well-to-do bourgeois of the United States and other capitalist countries.’

Trotsky, The World Situation and Perspectives (14 February 1940). Writings, vol. 12, pp. 148–149.

This language makes Trotsky indistinguishable from the Menshevik leaders when they were leading the counter-revolutionary armed struggle, alongside the White and interventionist armies. Also indistinguishable from the language of the classical Right of the imperialist countries.

Compare Trotsky with the main anti-Communist ideologue in the International Confederation of Christian Unions (CISC), P. J. S. Serrarens, writing in 1948:

`There are thanks to Stalin, once again `classes’ and rich people …. Just like in a capitalist society, the élite is rewarded with money and power. There is what `Force Ouvrière’ (France) calls a `Soviet aristocracy’. This weekly compares it to the aristocracy created by Napoleon.’

P. J. S. Serrarens, La Russie et l’Occident (Utrecht: Confédération Internationale des Syndicats Chrétiens, n.d.), pp. 33, 37.

After World War II, the French union Force Ouvrière to which Serrarens was referring was directly created and financed by the CIA. The `Lambertist’ Trotskyist group worked, and still works, inside it. At that time, the CISC, be it in Italy or Belgium, worked directly for the CIA for the defence of the capitalist system in Europe. To mobilize the workers against Communism, it used a revolting `anti-capitalist’ demagoguery that it borrowed from the social-democrats and the Trotskyists: in the Soviet Union, there was a `new class of rich people’, a `Soviet aristocracy’.

Confronting this `new aristocracy, oppressing and robbing the masses’,

Trotsky, The World Situation, p. 148.

there were, in Trotsky’s eyes, `one hundred and sixty millions who are profoundly discontented’.

Ibid. , p. 149.

These `people’ were protecting the collectivization of the means of production and the planned economy against the `ignorant and despotic Stalinist thieves’. In other words, apart from the `Stalinists’, the rest of the society was clean and led just struggles! Listen to Trotsky:

`Twelve to fifteen millions of the privileged — there are the “people” who organize the parades, demonstrations, and ovations …. But apart from this “pays légal” as was once said in France, there exist one hundred and sixty millions who are profoundly discontented ….

`Antagonism between the bureaucracy and the people is measured by the increasing severity of the totalitarian rule ….
`The bureaucracy can be crushed only by a new political revolution.’

Ibid. , p. 149.

`(T)he economy is planned on the basis of nationalization and collectivization of the means of production. This state economy has its own laws that are less and less tolerant of the despotism, ignorance and banditry of the Stalinist bureaucracy.’

Trotsky, La capitulation de Staline (11 March 1939). La lutte, p. 216.

Since the re-establishment of capitalism was impossible in Trotsky’s eyes, any opposition, be it social-democratic, revisionist, bourgeois or counter-revolutionary, became legitimate. It was the voice of `one hundred and sixty millions who were profoundly discontented’ and aimed to `protect’ the collectivization of the means of production against the `new aristocracy’. Trotsky became the spokesperson for all the retrograde forces, anti-socialist and fascist.

Bolshevism and fascism

Trotsky was one of the first to put forward the line that Bolshevism and fascism were twins. This thesis was quite popular, during the thirties, in the reactionary Catholic parties. The Communist Party was their sworn enemy, the fascist party their most important bourgeois opponent. Once again, here is Trotsky:

`Fascism is winning victory after victory and its best ally, the one that is clearing its path throughout the world, is Stalinism.’

Trotsky, Caïn Dugachvili va jusqu’au bout (April 1938). L’appareil, p. 238.

`In fact, nothing distinguishes Stalin’s political methods from Hitler’s. But the difference in results on the international scale is remarkable.’

Trotsky, La capitulation de Staline, p. 216.

`An important part, which becomes more and more important, of the Soviet apparatus is formed of fascists who have yet to recognize themselves as such. To equate the Soviet régime with fascism is a gross historic error …. But the symmetry of the political superstructures and the similarity of totalitarian methods and of psychological profiles are striking ….
`(T)he agony of Stalinism is the most horrible and most odious spectacle on Earth.’

Trotsky, Nouvelles défections (17 March 1938). La lutte, pp. 161–162.

Trotsky here presented one of the first versions of the essential theme of CIA and fascist propaganda during the fifties, that of `red fascism’. By using the word `fascism’, Trotsky tried to redirect the hatred that the masses felt towards the terrorist dictatorship of big capital, against socialism. After 1944–1945, all the German, Hungarian, Croatian and Ukrainian fascist leaders that fled to the West put on their `democratic’ mask; they praised U.S. `democracy’, the new hegemonic force and the main source of support for retrograde and fascist forces in the world. These `old’ fascists, faithful to their criminal past, all developed the same theme: `Bolshevism is fascism, but even worse’.

Note further that at the time that European fascism had already started its war (wars in Ethiopia and Spain, annexation of Austria and Czechoslovakia), Trotsky was affirming that the `most horrible and most odious spectable’ on Earth was the `agony of socialism’!

Defeatism and capitulation in front of Nazi Germany

Trotsky became the main propagandist for defeatism and capitulationism in the Soviet Union. His demagogic `world revolution’ served to better stifle the Soviet revolution. Trotsky spread the idea that in case of fascist aggression against the Soviet Union, Stalin and the Bolsheviks would `betray’ and that under their leadership, the defeat of the Soviet Union was inevitable. Here are his ideas on this subject:

`The military … status of Soviet Russia, is contradictory. On one side we have a population of 170,000,000 awakened by the greatest revolution in history … with a more or less developed war industry. On the other side we have a political regime paralyzing all of the forces of the new society …. One thing I am sure: the political regime will not survive the war. The social regime, which is the nationalized property of production, is incomparably more powerful than the political regime, which has a despotic character …. The representatives of the political regime, or the bureaucracy, are afraid of the prospect of a war, because they know better than we that they will not survive the war as a regime.’

Trotsky, On the Eve of World War II (23 July 1939). Writings, vol. 12, p. 18.

Once again, there were, on one side, `the 170 million’, the `good’ citizens who were awoken by the Revolution. One might wonder by whom, if it was not by the Bolshevik Party and Stalin: the great peasant masses were certainly not `awoken’ during the years 1921–1928. These `170 million’ had a `developed war industry’. As if it was not Stalin’s collectivization and industrialization policies, implemented thanks to his strong will, that allowed the creation of an arms industry in record time! Thanks to his correct line, to his will, to his capacity to organize, the Bolshevik régime awoke the popular forces that had been kept in ignorance, superstition and primitive individual work. According to the provocateur Trotsky’s rantings, the Bolshevik régime paralyzed that society’s forces! And Trotsky made all sorts of absurd predictions: it was certain that the Bolshevik régime would not survive the war! Hence, two propaganda themes dear to the Nazis can be found in Trotsky’s writings: anti-Bolshevism and defeatism.

`Berlin knows to what extent the Kremlin clique has demoralized the country’s army and population through its struggle for self-preservation ….
`Stalin continues to sap the moral force and the general level of resistance of the country. Careerists with no honor, nor conscience, upon whom Stalin is forced to rely, will betray the country in difficult times.’

Trotsky, Staline et Hitler (12 March 1938). L’appareil, p. 234.

In his hatred of Communism, Trotsky incited the Nazis to wage war against the Soviet Union. He, the `eminent expert’ on the affairs of the Soviet Union, told the Nazis that they had every chance of winning the war against Stalin: the army and the population were demoralized (false!), Stalin was destroying the resistance (false!) and the Stalinists would capitulate at the beginning of the war (false!).

In the Soviet Union, this Trotskyist propaganda had two effects. It encouraged defeatism and capitulationism, through the idea that fascism was assured victory given that the USSR had such a rotten and incompetent leadership. It also encouraged `insurrections’ and assassination attempts to eliminate Bolshevik leaders `who would betray in difficult times’. A leadership that was categorically destined to fall during the war might well fall at the beginning of the war. Anti-Soviet and opportunistic groups could therefore make their attempts.

In both cases, Trotsky’s provocations directly helped the Nazis.

Dimitrov to Stalin on the Dissolution of the Polish Communist Party

Polrewkom_1920

Dimitrov to Stalin, 28 November 1937, with enclosed draft resolution of the ECCI. Original in Russian. Typewritten with handwritten comments by Stalin.

Top secret, [1]

Dear Comrade Stalin!

We are thinking of passing the attached resolution on the dissolution of the Polish Communist Party in the ECCI Presidium, and then publishing it.

After publishing this resolution, we would send an open letter to the Polish Communists that would reveal in greater detail the enemy’s decomposing activities within the ranks of the Communist Party and the Polish workers’ movement.

In reestablishing the CP of Poland, it has been suggested that a special organizational commission be formed. We plan to select some of the members of this commission for the most distinguished and tested fighters from the International Brigades in Spain.

We beg you, Comrade Stalin, to give your advice and directives:

  1. Regarding this issue, whether this announcement will be expedient before the investigation of the former Polish party leaders under arrest is completed, or should we wait longer?
  2. Regarding the contents and the character of the resolution on the dissolution of the CP of Poland itself.

With fraternal greetings.

Dimitrov

 

No. 132/Id

28 November 1937

T[op] Secret,

RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE COMMUNIST INTERNATIONAL

Polish fascism, unable to cope with the growing mass revolutionary movement by means of overt terror alone, has made espionage, sabotage, and provocation the major tool of its struggle against the workers’ movement, against all anti-fascist, democratic forces, [having] poisoned the entire political and social life in Poland with this foul system. For many years, it has been planting its spies and agents among all the workers’ and peasants’ democratic organizations. However, the Pilsudchiks [2] made a special effort to infiltrate the Communist movement, which represents the greatest threat for Polish fascism.

The Executive Committee of the Communist International has established, on the basis of irrefutable documentary evidence, That for a number of years enemies, agents of Polish fascism, have been operating within the leadership structures of the Polish Communist Party. By organizing splits, often fictitious, within the workers’, national-democratic, and petty-bourgeois organizations, the Pilsudchiks poured their spies and provocateurs into the Communist Party, disguised as oppositional elements coming over to the ranks of the Communist movement (the PPS group headed by Sochacki-Bratowski, the Poalei-Zion group headed by Henrykowski and Lampe, the Ukrainian s[ocial] d[emocratic] group, the UVO group of Wasylkiw-Turianski, Korczyk’s group of Belorussian SRs, the “Wyzwolenie” group of Wojewodzki). [3] By arranging the arrests so as to remove the most loyal elements from the Communist ranks. the Polish defenziwa [counterintelligence] gradually advanced its agents into leading positions in the Communist Party. At the same time, in order to give its agents provocateurs and spies authority among the workers [and] members of the Communist Party after staging mock trials, the fascists would often subject their own agents to imprisonment so that later they could be liberated, at the earliest convenience, by organizing “escapes” or by “exchanges” for spies and saboteurs caught red-handed in the USSR. With the help of their agents in the leading organs of the party, the Pilsudchiks promoted their people [for example Zarski, Sochacki, Dombal] to the Communist faction of the Sejm [parliament] during the elections to the Sejm, instructed them to deliver provocative speeches, which the fascists used to attack the Soviet Union and for the bloody repression of the workers’ and peasants’ movement.

The gang of spies and provocateurs entrenched in the leadership of the Polish Communist Party, having planted, in turn, agents in the periphery of the party organization, systematically betrayed the best sons of the working class to the class enemy. By organizing failures, [they were] destroying, year after year, party organizations in the Polish heartland, as well as in Western Belorussia and Western Ukraine. [This gang] systematically perverted the party’s political line so as to weaken the influence of communism among the masses, to make the party increasingly alien and hostile to the Communist International. For its work of disintegration, Polish fascism widely used a Trotskyist-Bukharinist reprobates, [who] either were already, or were willingly becoming, agents of Polish defenwiza, by virtue of having a common outlook with fascism. The Polish defenwiza kindled the factional struggle in the party, through its agents both in the Kostrzewa-Warski group and in the Lenski-Henrykowski group, and used both factions to disorganize the party and its work among the masses, and to separate the workers from the Communist Party.

However, the most ignoble role that this espionage agency played was following the directives of the fascist intelligence in relation to the USSR. Playing on the nationalist prejudices of the most backward masses among the Polish people, it sought to create obstacles to the rapprochement of the peoples of Poland and the peoples of the USSR, and in the interests of the fascist warmongers, to wreck the cause of peace that is selflessly defended by the great country of the Soviets. At the same time, this network of class enemies, disguised as political emigres, was transferred by Polish fascism to the USSR so as to conduct espionage, sabotage, and wrecking activities.

All attempts to purge the agents of Polish fascism from the ranks of the Communist movement, while retaining the current organization of the Polish Communist Party, prove futile, since the central party organs were in the hands of spies and provocateurs who used the difficult situation of the underground party to remain in its leadership.

Based on all this and in order to give honest Polish Communists a chance to rebuild a party, once it is purged of all agents of Polish fascism, the Executive Committee of the Communist International, in accordance with the statutes and the decisions of the Congresses of the Communist International, resolves:

1. To dissolve the Polish Communist Party because of its saturation with spies and provocateurs.

2. To recommend that all honest Communists, until the re-creation of the Polish Communist Party, shift the emphasis of their work to those mass organizations where there are workers and toilers, while fighting to establish the unity of the workers’ movement and to create in Poland a popular antifascist front.

At the same time, the ECCI warns the Communists and the Polish workers against any attempt by Polish fascism and its Trotskyist-Bukharinist espionage network to create a new organization of espionage and provocation, under the guise of a pseudo-Communist Party of Poland, to corrupt the Communist movement.

The Communist International knows that thousands of Polish workers sacrifice themselves and their lives to serving and protecting the vital interests of the toiling masses; it knows that the heroic Polish proletariat had, in its glorious revolutionary past, many remarkable moments of struggle against the tsarist and Austro-Hungarian monarchies, against Polish fascism. It knows about the heroic deeds of the Dombrowski battalions sent by the Polish proletariat to defend the Spanish people. It is convinced that the Polish proletariat will have [again] a Communist party, purged of the foul agents of the class enemy, which will indeed lead the struggle of the Polish toiling masses for their liberation.

 

Footnotes

[1] Handwritten in the margin: “N1433/2 XII 37.” Across the letter, Stalin wrote: “The dissolution is about two years two late. It is necessary to dissolve [the party], but in my opinion, [this] should not be published in the press.” This resolution was first published in Voprosy istorii KPSS, 1988, no. 12, p. 52,

[2] Pilsudchiks: a derisive name used to describe the Polish government under Marshal Pilsudski, and a generic term for his followers. Jozef Pilsudski was a leader of the right-wing of the Polish Socialist Party. In 1918 he was war minister, and between 1918 and 1922 head of state. After May 1926 he was again war minister, then prime minister, and later inspector general of Poland’s armed forces – Trans.

[3] Various Polish, Jewish, Ukrainian, and Belorussian groups.

From “Dimitrov and Stalin, 1934-1943: Letters from the Soviet Archives” by Alexander Dallin and F.I. Firsov, pp. 28-31.

Grover Furr: Trotsky’s Lies – What They Are, and What They Mean

The personality and the writings of Leon Trotsky have long been a rallying point for anticommunists throughout the world. But during the 1930s Trotsky deliberately lied in his writings about Joseph Stalin and the Soviet Union. My new book, Trotsky’s ‘Amalgams’, discusses some of Trotsky’s lies that have fooled people, and demoralized honest communists, for decades. 

 

In January 1980 the Trotsky Archive at Harvard University was opened to researchers. Within a few days Pierre Broué, the foremost Trotskyist historian of his time, discovered that Trotsky had lied. Trotsky had always denied that any clandestine “bloc of oppositionists” including Trotskyists, existed in the Soviet Union. Trotsky called this an “amalgam,” meaning a fabrication by Stalin. This “bloc” was the main focus of the second and third Moscow Trials of January 1937 and March 1938. Broué showed, from letters in the Trotsky Archive by Trotsky and by his son Leon Sedov, that the bloc did exist.

 

In 1985 American historian Arch Getty discovered that the Harvard Trotsky Archive had been purged of incriminating materials, but purged imperfectly. Getty also found evidence that Trotsky had indeed remained in contact with some of his former supporters inside the Soviet Union. Trotsky always strenuously denied this, claiming that he cut off all ties to those who “capitulated” to Stalin and publicly renounced their Trotskyist views. Again, Trotsky was lying. In 2010 Swedish researcher Sven-Eric Holmström published an article on the “Hotel Bristol” question in the First Moscow Trial of August 1936. In it Holmström proves that Trotsky was lying here too. 

 

In 2005 I began to systematically study all the accusations against Stalin and Beria that Nikita Khrushchev made in his infamous “Secret Speech.” I discovered that not a single one of Khrushchev’s so-called “revelations” can be supported from the evidence. But during the 1930s Trotsky had made the same kind of accusations against Stalin that Khrushchev later did. The fact that Khrushchev did nothing but lie suggested that Trotsky might have lied as well. Thanks to Broué and Getty I already knew that Trotsky had lied about some very important matters. Any detective, in any mystery story, knows that if a suspect has lied about some important matters, he should ask himself: What else is this person lying about?

 

I set about studying his writings in order to determine which of Trotsky’s statements could be tested. Wherever I had independent evidence to check the veracity of any accusation that Trotsky levelled against Stalin, I found that Trotsky was lying — again. Today I have so much evidence that even a whole book does not come close to holding it all. So there will be two more volumes concerning Trotsky’s lies. The second volume will be published in early 2017.

Between September 2010 and January 2013 I researched and wrote a book on the assassination on December 1, 1934 of Sergei Mironovich Kirov, First Secretary of the Leningrad Party. That book, The Murder of Sergei Kirov, was published in June 2013. The Kirov murder is the key to the Soviet high politics of the rest of the 1930s: the three public Moscow Trials of August 1936, January 1937, and March 1938, often called “Show Trials;” the Military Purge or “Tukhachevsky Affair” of May and June 1937; and the Ezhovshchina of July 1937 to October 1938, which anticommunist scholars call the “Great Terror,” after a dishonest book by Robert Conquest. 

 

Trotsky too wrote about the Kirov murder investigation. He identified the articles in the French communist and Soviet press that he read. I discovered that Trotsky lied about what these articles on the Kirov murder investigation said. Trotsky fabricated a story that Stalin and his men were responsible for Kirov’s death. Once again, Trotsky lied about what the articles he read in the French communist newspaper Humanité and in Russian-language Soviet papers, to which Trotsky had access within only a couple of days of their publication in Moscow. 

 

Trotsky’s lies would have been immediately apparent to anybody who set Trotsky’s articles side by side with the French and Russian newspaper articles that he had read and which he claimed he was closely studying and analyzing. It appears that no one ever did that – until now. The result was that Trotsky’s falsified version of the Kirov assassination – that Stalin and the NKVD had killed Kirov – was taken up not only by Trotsky’s followers, but by Nikita Khrushchev. 

 

In his completely fraudulent “Secret Speech” Khrushchev gave additional credibility to the “Stalin killed Kirov” story. Khrushchev and his speechwriters probably took this directly from Trotsky. Trotsky’s tale that “Stalin had Kirov killed” passed from Khrushchev to the professional anticommunist scholar-propagandists like Robert Conquest and many others. In the late 1980s Mikhail Gorbachev’s men tried and failed to find evidence in the Soviet archives to support this story. 

 

Aleksandr Iakovlev, Gorbachev’s chief man for ideology, sent them back to the archives to try again. Once again, the Politburo research team filed to find any evidence to even suggest that Stalin had had Kirov killed. The history of the “Stalin had Kirov killed” fabrication is a good example of how a number of Trotsky’s deliberate lies were taken up by Soviet anticommunists like Khrushchev and Gorbachev, and by pro-capitalist anticommunists in the West. In my new book Trotsky’s “Amalgams” I uncover and discuss a number of other deliberate lies by Trotsky about Stalin and the USSR. All of them have been adopted by anticommunists and by Trotskyists. In the second and third volumes of this work I will discuss Trotsky’s conspiracies with saboteurs and fascists inside the USSR, and with the Nazis and the Japanese militarists. 

 

In early 1937 Trotsky succeeded in persuading John Dewey, the famous educator, and a number of others, to hold hearings, supposedly to determine whether the charges leveled against Trotsky in the August 1936 and January 1937 Moscow Show Trials were true. The Commission duly concluded that Trotsky was innocent and the Moscow Trials were all a frame-up. I carefully studied the 1,000 pages of the Dewey Commission materials. I discovered that the Commission was dishonest and shockingly incompetent. It made error after error in logical reasoning. Of most interest is the fact that Trotsky lied to the Dewey Commission many times. The Dewey Commission could not possibly have declared Trotsky “Not Guilty” if the Commission members had known that Trotsky was lying to them. I wish to briefly mention two more sections of my book. They are: my project to verify – that is, to check — the Moscow Trials testimony; and my examination of the errors that most readers of Soviet history make, errors which make them unable to understand the significance of the evidence we now have. 

 

The testimony of the defendants in the three public Moscow Trials is universally declared to be false, forced from innocent men by the prosecution, the NKVD, “Stalin.” There has never been a shred of evidence to support this notion. Nevertheless, it is staunchly affirmed by ALL specialists in Soviet history, as well as by all Trotskyists. Thanks to years of identifying, searching for, locating, obtaining, and studying primary sources, I realized that there now exists enough evidence to test many of the statements made by the Moscow Trials defendants. I devote the first twelve chapters of Trotsky’s ‘Amalgams’ to a careful verification of many of the statements by the Moscow Trials defendants. I found that, whenever we can double-check a fact-claim made by a Moscow Trials defendant against independent evidence now available, it turns out that the Moscow Trials defendant was telling the truth. Trotsky, Khrushchev and his men, Cold-War Soviet “experts,” 

 

Gorbachev and his men, and today’s academic scholars in Soviet studies, all claimed or claim that the Trials are frame-ups. I prove from the evidence that they are wrong. The Moscow Trials testimony is what it claims to be: statements that the defendants chose to make. I verify this with a great deal of evidence from outside the Trials themselves and even outside the Soviet Union. This is an important conclusion. This result in itself disproves the “anti-Stalin paradigm” of Soviet history. It also contributes to disproving Trotsky’s version of Soviet history, a version that the Trotskyist movement worldwide continues to believe and to propagate today. Those of us — researchers, activists, and others — who wish to find the truth about Soviet history of the Stalin period, and not merely attempt to confirm our preconceived ideas about it – we are in possession of a number of results that completely overturn the convention anti-Stalin paradigm of Soviet history. These include the following: 

 

* the fact that Nikita Khrushchev lied about every accusation he made against Stalin (and Lavrentii Beria) in his world-shaking “Secret Speech” to the XX Party Congress of the CPSU in February 1956. This clearly means that Khrushchev’s researchers could not find any true “crimes” that Stalin – or Beria – had committed, and so were reduced to fabrication. 

 

* the fact that, despite a very thorough and time-consuming search of the archives in 1962-1964, Khrushchev’s “Shvernik Commission” could find no evidence at all to suggest that either the Moscow Trials defendants or the “Tukhachevsky Affair” defendants were victims of a “frame-up” or had lied in their confessions in any way. 

 

* the fact that neither Gorbachev’s and Eltsin’s researchers, nor the anticommunist researchers since that time, who have had wide access to the former Soviet archives, have been able to find any evidence at all to challenge the conclusions in the Kirov Assassination, the Moscow Trials, or the Military Purges. 

 

* the fact that the testimony at the Moscow Trials was, in the main, truthful. 

 

* the fact that Ezhov and Ezhov alone, not Stalin and his supporters in the Soviet leadership, were responsible for the mass murders of July 1938 to November 1939 known to scholars as the “Ezhovshchina” and to anticommunist propagandists as “the Great Terror.” 

 

* the fact that, in his writings about the USSR during the period after the Kirov murder, Trotsky lied repeatedly in order to cover up his conspiracies. 

 

* the fact that most of today’s scholars of the Stalin period in the USSR lie in order to deceive their readers. But they do so in a way that can only be discovered by a very close, detailed study of their sources. 

 

Trotskyist scholarship is consistently parasitical on mainstream anticommunist scholarship. Here is one example. In a recent review on the Trotskyist, and ferociously anti-Stalin World Socialist Web Site (wsws.org) of Princeton University historian Stephen Kotkin’s book Stalin, a Trotskyist reviewer refers approvingly to the anti-Stalin statements of Oleg Khlevniuk, who is called the respected Russian historian Oleg Khlevniuk. – https://www.wsws.org/en/articles/2015/06/04/kot4-j04.html 

 

Khlevniuk is a fanatical anticommunist and also a very blatant liar, in all his writings. Khlevniuk is anti-Stalin; WSWS.ORG, the Trotskyist publication, is anti-Stalin; therefore the Trotskyists “trust” the foremost anticommunist liar in the world today! Meanwhile, mainstream anticommunist scholarship has been drawing upon the writings of Trotsky himself for decades. Trotsky, of course, knew that he was lying: 

 

* about the “bloc of Rights, Trotskyists, Zinovievites, and other Oppositionists;” 

 

* about his own involvement in the assassination of Sergei Kirov in December 1934; 

 

* about his conspiring with the “Tukhachevsky Affair” military conspirators for a coup d’état against the Stalin government and to stab the Red Army in the back during an invasion by Germany or Japan; 

 

* about his conspiring with the Nazis and the Japanese militarists; 

 

* about conspiring with fascists and his own followers within the USSR to sabotage industry, transportation, and mines. 

 

* about the charges against, and the confessions by, the defendants in the Moscow trials, which Trotsky knew were true. 

 

Trotsky knew that he lied, repeatedly, over and over again, in his Bulletin of the Opposition. Trotsky knew that he repeated these lies to the Dewey Commission. 

 

The Spanish Civil War 

 

And Trotsky knew that he lied to his own followers, including his closest followers like Andres Nin, Erwin Wolf, and Kurt Landau. Nin had been one of Trotsky’s closest political assistants. Nin is supposed to have broken with Trotsky in 1931. But in 1930 Nin wrote, in a Trotskyist journal, that Trotsky’s Soviet-based followers who had retracted their Trotskyist views and pledged loyalty to the Communist Party’s line, had done so dishonestly. They had done so in order to remain within the Party so they could continue to recruit others to their secret conspiracies. Therefore, though Nin openly broke with the Trotskyist movement in an organizational sense, his actions in Spain suggest that this was a cover for maintaining a secret connection with Trotsky. 

 

The Spanish communists and the Soviet NKVD in Spain suspected this too. Nin became one of the leaders of the POUM, an anti-Soviet and antiStalin party that was very friendly to Trotsky. Erwin Wolf went to Spain as Trotsky’s political representative. He did so in order to lead a “revolution” against the Spanish Republic – right in the middle of a war with the Spanish fascists, who were aided by Hitler and Mussolini. Nin and Wolf ran these risks because they believed that Trotsky was innocent of the charges that were made against him in the Moscow Trials. They thought that Trotsky, not Stalin, was the true communist and true revolutionary. Consequently, they thought that they were going to Spain to do what Lenin would have wanted done. 

 

In May 1937 a revolt against the Spanish Republican government broke out in Barcelona. POUM and the Spanish Trotskyists enthusiastically participated in this revolt. It appears that Nin, Wolf, and Landau thought this might be the beginning of a Bolshevik-style revolution, with themselves as Lenin, the POUM as the Bolsheviks, the Republican government as the capitalists, and the Spanish and Soviet communists as the phony socialists like Alexander Kerensky! The “Barcelona May Days Revolt,” was a vicious stab in the back against the Republic during wartime. It was suppressed in less than a week. After that, the Spanish police and Soviet NKVD hunted down the Trotskyists and the POUM leadership. Andres Nin was certainly kidnapped, interrogated, and then murdered by the Soviets and Spanish police. The same thing probably happened to Landau and Wolf. 

 

The Soviets knew then what we know today: that Trotsky was conspiring with the Germans, the Japanese, and the “Tukhachevsky Affair’ military men. But Nin and Wolf certainly did not know this. They believed Trotsky’s professions of innocence. If Andres Nin, Erwin Wolf, and Kurt Landau had known what Trotsky knew, and what we now know, would they have gone to Spain to try to carry out Trotsky’s instructions? Impossible! Therefore, Trotsky sent these men into an extremely dangerous situation by means of lying to them about his own activities and aims, and about what Stalin was doing. And it cost them their lives. The same is true for all the Trotskyists who were executed in the Soviet Union itself. Evidently, there were hundreds of them. They all supported Trotsky because they believed his version of Soviet history, and had been convinced by Trotsky’s writings that Stalin was lying, that the Moscow Trials were a frame-up, and that the Stalin regime had abandoned the goal of worldwide socialist revolution. These men and women would not have followed Trotsky if he had not lied to them. 

 

In the first chapter of Trotsky’s “Amalgams” I examine the errors that most students of Soviet history, including academic professionals, make when faced with primary source evidence. The truth is that very few people, including professional historians, know how to examine historical evidence. Very few Marxists know what a materialist examination of evidence looks like, or are capable of recognizing or critiquing an idealist argument when they are confronted with one. These errors are not only errors of “denial” by persons who do not wish to have their proTrotsky or anti-Stalin preconceptions disproven. Most or all of these same errors are made by pro-Stalin, anti-revisionist people. Anticommunist arguments have been so overwhelming, not only in Cold War pro-capitalist form but especially in supposedly procommunist but in reality anticommunist Khrushchev- and Gorbachev-era writings, that it has degraded the thinking of all of us. 

 

The lies of Trotsky’s that Pierre Broué and Arch Getty discovered 30 years ago have been ignored. This fact itself deserves explanation. Throughout the 1980s and 1990s Broué continued to find, and write about, more lies by Trotsky. But all the while he continued to deny that these lies were of any importance. Broué also ignored Getty’s two discoveries. First, that the Trotsky Archive had been “purged” of incriminating materials. Second, that Trotsky had indeed remained in contact with oppositionists like Radek with whom he swore he had broken all ties. Vadim Rogovin, the leading Trotskyist historian of the Stalin-era Soviet Union, went along with Broué’s cover-up and also introduced some lies of his own. Trotskyists and Cold Warriors continue either to ignore Broué’s discoveries altogether or to echo Broué’s claim that these lies were of little significance. We can understand why they do this. 

 

The fact that Trotsky lied dismantles what I call the “anti-Stalin paradigm”: the Trotskyist and the Cold War anticommunist versions of Soviet history. Trotsky, of course, had to lie. He was running a serious conspiracy to get rid of Stalin, in conjunction with many supporters inside the Soviet Union and the Bolshevik Party and in collusion with Nazi Germany, militarist Japan, England and France. A conspiracy requires secrecy and lying. But who, above all, was Trotsky fooling? Not Stalin and the Soviet government. They knew he was lying. The conclusion is inescapable: Trotsky was lying in order to fool his own supporters! They were the only people who believed whatever Trotsky wrote. 

 

They believed Trotsky was the true, principled Leninist that he claimed to be, and that Stalin was the liar. This cost the lives of most of his supporters inside the Soviet Union, when Trotskyism was outlawed as treason to the Soviet state because of Trotsky’s conspiracy with Germany and Japan. It has led Trotsky’s followers outside the Soviet Union to spend their lives in cult-like devotion to a man who was, in fact, doing just what the Soviet prosecutor and the Moscow Trials defendants claimed he was doing. 

 

The figure of Leon Trotsky casts a giant shadow over the history of the Soviet Union, and therefore over the history of the world in the 20th century. Trotsky was the most significant – in fact, the only outstanding – Opposition figure in the factional disputes that shook the Bolshevik Party during the 1920s. It was during the 20s that Trotsky attracted to himself the group of persons who formed the United Opposition and whose conspiracies did so much irreparable harm to the Party, the Comintern, and the world communist movement. 

 

Conclusions 

 

What does the fact that Trotsky lied, that Khrushchev lied, and that these facts were ignored for so long, mean? 

 

What does it mean for the main question that faces us, and billions of working people in the world, today? I mean the question of why the wonderful international communist movement of the 20th century collapsed, the movement that 70 years ago, triumphant in World War 2, in the Chinese communist revolution, in the anti-colonial movements around the world, seemed to be poised to bring about an end to capitalism and the victory of world socialism? 

 

How do we convince workers, students, and others that we know why the old communist movement failed and that we have learned what we have to do differently to avoid repeating those failures in the future? We must study this question. We also need to discuss it – to entertain and debate different, informed viewpoints. 

 

Therefore we have to defend the legacy of the international communist movement during Lenin’s and, especially, during Stalin’s time. At the same time we must be fearlessly critical of it, so we discover what errors they made and so not make the same errors again. In my judgment – and I hope that it is yours as well – discovering the reasons for the collapse of the magnificent international communist movement of the 20th century is the most important historical and theoretical question for all exploited people today, the vast majority of humankind. To have any hope of solving it, we must think boldly, “go where no one has gone before.” If we pretend that “Marx and Engels had all the answers,” or “Lenin had all the answers” (many Trotskyists, of course, believe that “Trotsky had all the answers”) — if we believe that, then we are guaranteed, AT BEST, to fall far short of what they achieved. Marx said that great historical events occur twice “the first time as tragedy, the second time as farce.” 

 

The tragedy of the international communist movement of the 20th century was that, ultimately, it failed. Unless we figure out where they went wrong then we are doomed to be the “farce.” And that would be a political crime — OUR crime. So we have to look with a critical eye at ALL of our legacy. Marx’s favorite saying was: “De omnibus dubitandum” — “Question everything.” Marx would be the last person in the world to exclude himself from this questioning. 

 

History can’t teach lessons directly. And history isn’t political theory. But if we ask the right questions, history can help us answer them. Meanwhile, we should all publicize everywhere and in every way we can that, like Khrushchev and Gorbachev, Trotsky lied – provably, demonstrably lied – and, what’s more, that all the anti-Stalin, anticommunist “experts” anointed by capitalist universities and research institutes are lying too. 

 

We need to point out that the only way forward is to build a new communist movement to get rid of capitalism. And that to do that, we need to learn from the heroic successes, as well as from the tragic errors, of the Bolsheviks during the period when the Soviet Union was led by Joseph Stalin. My hope and my goal is to contribute, through my research, to this project which is so vital for the future of working people everywhere. Thank you.

 

* Professor, Montclair State University, Montclair, NJ 07043 USA. The above is a Presentation at the 7th World Socialism Forum, World Socialism Research Center, Chinese Academy of Social Sciences (CASS), October 22, 2016.

The First May Day Under Nazi Rule

“In 1933 Adolf Hitler, with the full support and assistance of powerful monopoly capitalists, seized power in Germany. On April 24, Dr. Paul Joseph Goebbels, Nazi Minister of Propaganda and Popular Enlightenment, issued a May Day Manifesto which was carried on the front page of every newspaper in Germany. Addressed ‘to the whole German people,’ it announced that May 1st had been made ‘the festival day of national labor’ and called for a celebration in which ‘Germans of all classes’ would ‘clasp hands’ and ‘in solid formation march into the new future.’ Class was a thing of the past, ‘since Marxism is smashed.’…

The London Times praised Hitler and the Nazis for having ended ‘the glorification of class-warfare and made May Day an occasion for the abolition of class differences and for the unification of workers and employers in the Fascist model.’ What it did not tell its readers was that despite the Nazi terror, the illegal Communist Party of Germany (KPD) held demonstrations on May 1, 1933, at which the red flag was displayed in Berlin, Chemnitz, Dresden, Halle, Hamburg, Leipzig, Sachsen, Thüringen, and Wittenberg. In Berlin workers raised the cry ‘Freedom for Thaelmann’ (the Communist leader who was facing death in a Nazi concentration camp), ‘The KPD lives,’ . . .

On the very next day after May Day, Hitler signed legislation outlawing the free trade unions in Germany with their membership of 4,000,000, and seized their assets of over 180,000,000 marks. All union leaders who could be seized were taken into custody. Dr. Herbert Ley, president of the Prussian State Council, gave the following reason for the action against the free trade unions: ‘Marxism today is playing dead, but is not yet altogether abolished. It is therefore necessary to deprive it of its last strength.’ The New York Times noted that the action came one day after ‘the May Day wooing of German labor.’”

 – Philip S. Foner, “May Day: A Short History of the International Workers’ Holiday”

Quick Analysis of the Trump Cabinet

Jeff Sessions (Attorney General) – close association of white nationalists and opponent of birthright citizenship, denounced by Coretta Scott King for being racist, lover of the CIA and mass surveillance.

Wilbur Ross (Secretary of Commerce) – billionaire monopolist Trump donor who drew criticism for safety failures after an explosion killed 12 workers at a coal mine owned by his company.

Ben Carson (Secretary of Housing and Urban Development) – retired creationist surgeon who admits himself he isn’t qualified to be in the Cabinet.

James Mattis (Secretary of Defense) – an extreme warhawk removed from command in 2013 for his hardline behavior.

Ryan Zinke (Secretary of the Interior) – freshman Congressman with an anti-environment record who doesn’t believe in climate change.

Betsy DeVos (Secretary of Education) – billionaire heiress anti-public school crusader who favors unregulated charter schools.

Rex Tillerson (Secretary of State) – ExxonMobil executive with no experience in the public sector.

Steve Mnuchin (Treasury Secretary) – a hedge-fund manager and one of the chief architects of the financial crisis, became infamous for his bank’s cruel foreclosure practices.

Elaine Chao (Secretary of Transportation) – former head of the Bush Administration Labor Department that was investigated and found to regularly fail to protect the rights of low-wage workers.

Andy Puzder (Secretary of Labor) – a fast-food CEO who opposes minimum wage increases and worker protections; one remarked that machines don’t need days off, sick days, or maternity leave and don’t file lawsuits.

John Kelly (Secretary of Homeland Security) – retired general and immigration hardliner who favors mass deportations and ICE raids.

Tom Price (Secretary of Health and Human Services) – staunch opponent of women’s rights and access to contraception who supports cuts to Medicare and Medicaid and has already tried to overturn the Affordable Care Act.

Rick Perry (Secretary of Energy) – former Governor of Texas and climate change denier who wants to eliminate his own department completely.

Scott Pruitt (EPA Administrator) – former Oklahoma Attorney General and climate change denier who sued the EPA to roll back its efforts for clean water and clean air and tackle climate change.

Stephen Bannon (Chief Strategist) – alt-right former banker and self-proclaimed white supremacist, former chief executive editor of the far-right Breitbart News.

Labour Party (EMEP): Step by Step; Moving Towards a Dictatorship

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Labour Party (EMEP), Turkey
emep.org

The failed attempted military coup of 15 July, orchestrated by the so called ‘Gülen Movement’ – the pro-American Islamic organisation that shared power with the AKP government for 10 years – was called “a gift from God” by the Turkish President Tayyip Erdoğan.

The crushing of the coup was quickly followed by the declaration of a state of emergency (OHAL). OHAL enabled the government to take administrative and political decisions and to introduce regulatory legislation without the need for judicial and/or parliamentary approval.

Under the leadership of President Erdoğan, the AKP government issued emergency decrees (KHKs) one after another; leading to suspension and dismissal of tens of thousands of military and police officers, judges, prosecutors and civil servants. Almost 40,000 people, including academics and teachers were also arrested. The number of jailed journalists rose to a record high of 140. Meanwhile, 37 thousand petty criminals were released on the account that there was not enough space in prisons. Whereas the government initially claimed that dismissals and arrests were carried out only against coup plotters of the Gülen movement; soon it became clear that democrats and socialists were also targeted. Through only one decree, more than 10 thousand teachers, all members of Eğitim-Sen (Education and Science Workers Union), were laid-off. A great majority of them were democrats, socialists and supporters of Kurdish national movement.

Following the attempted coup, overriding of rights and freedoms – traditionally deficient in Turkish political democracy – have increased; bourgeois law is at a standstill and has been replaced by arbitrary treatments of the executive/government. Replacing legislation with the state of emergency and rule by emergency decrees, and subordinating the judiciary to the executive through special courts and appointment of new judges and prosecutors; Erdoğan and AKP are trying to establish a fascist dictatorship regime of one-man, one-party.

The government issued unconstitutional and illicit decrees, while by law it only could issue ones that are constitutional and related to the events that lead to declaration of state of emergency. With the help of these decrees targeting the critics of AKP, demonstrations are banned, dissident newspapers, journals, radio stations and TV channels are shut down; their property and equipment are confiscated.

The municipalities led by HDP, third biggest party in the parliament with 40 MPs and representing the Kurdish democratic movement, were raided by the police and more than 20 mayors arrested. Trustees were appointed to their posts without a public vote.

Finally, a total of ten HDP MPs – including the party co-chairs – were jailed. At the same time, 10 executives of the Cumhuriyet newspaper – founded 93 years ago with the establishment of Turkish Republic and politically aligned in recent years with social democracy – were also arrested.

Publications defending the revolutionary line of the working class­ such as Hayatın Sesi TV, Evrensel Kültür (a culture and art magazine), Özgürlük Dünyası (a journal of political theory), Tiroj (bilingual Kurdish-Turkish cultural magazine) were among the television stations and publications closed down by the government.

Unconstitutionally, without breaking his association with AKP for nearly two years and consolidating all executive power in his hands, the de-facto president Erdoğan is trying to change the constitution in line with the aforementioned situation and pushing for a presidential system.

Furthermore, while insisting on a foreign policy based on expansionism and sectarian war, intimate with Islamist terrorist groups, the Erdoğan-led government is taking further steps. Over the last five years, it has supported radical Islamist gangs in Syria and their organisation, to overthrow the Esad regime. In a new attempt, Turkey launched a military operation in Northern Syria at the end of the summer, to back a few thousand Islamist terrorist militants it put forward initially. The intervention was under the pretext of fighting against ISIS, but its main target was Syrian Kurds. Turkey, along with Islamist gangs, controls/invades an area of almost 2000 km2, stretching from the banks of the Euphrates river to the Kurdish canton of Afrin, including cities and towns such as Jarablus. Nowadays, the government pursues the propaganda of conquering al-Bab. However, a spike was put in Turkey’s wheel due to US support for Syrian Democratic Forces – the backbone of whom is YPG – in the operation to liberate the “capital” of ISIS, Raqqa; and the support of Russia for the Esad regime, trying to capture al-Bab because of its strategic importance as a gate to Aleppo.

The AKP government, while fighting the PYD-YPG in Syria, is also in conflict with the Iraqi government due to its military presence in the Iraqi town of Bashiqa; Iraq is demanding the withdrawal of the Turkish forces. The Turkish Airforce is regularly bombing Northern Iraq, claiming to attack PKK camps.

In the last year, Syria and Iraq policies of Turkey have increasingly changed; as well as relations with the Us and the EU cooling, due to the Turkish belief that they supported the attempted coup of 15 July.

Following the agreement for Turkey to stop the migration from Syria, Iraq and Afghanistan and the EU to pay Turkey three billion Euros, as well as give Turkish citizens visa-free travel rights within the EU, both sides failed to keep their promises and the relationships between Turkey and the EU are strained. The AKP government is claiming that they’ll wait two more months before cancelling the agreement and that they’ll go to a referendum on EU membership due to its criticism of Turkey; EU, citing the imprisonment of journalists and the like, have started talking about halting discussions on Turkish membership.

Since its establishment, Turkey had close economical, trade and financial ties with the West and very strong military ties with the USA; as such it is undoubtedly very hard for Turkey as a NATO member to change its ‘axis’ or ‘boss’. Nevertheless, President Erdoğan, having visited Pakistan recently, has stated “…why not? It will help Turkey feel at ease” on the issue of membership to the Shanghai Cooperation Organisation.

Besides the policies and steps taken by the AKP government, the Turkish economy is not going in the right direction either. The rate of growth has been falling for the last four years, the deficit and unemployment increasing. According to official figures unemployment is at 11% but the real figure is higher. The dollar has risen 10% against the Turkish Lira in the recent days; as if the Turkish lira has devaluated and lost 10% of its value. The government is cutting the interest rate and increasing available credit in an attempt to stimulate the economy but stagnation has set in all sectors – primarily building and textile sectors. A capitalist crisis that is not limited to, and not necessarily starting in the financial sector is raising its “head” and this is the soft underbelly of the AKP.

Despite all bans and police oppression, strikes at workplaces level continue. The powers of the executive are ever increasing; students are demonstrating against the decision that university rectors will be appointed by the President. Solicitors and intellectuals are demonstrating to condemn the imprisonment of their peers. Opponents of AKP are trying to create new alliances. Unity for Democracy with its components of democratic, socialist, social-democrat and Kurdish national movements, including our party, is taking further steps to organise following a series of meetings.

New magazines are published in place of others.

Is the future of Turkey going to be a fascist dictatorship run by one man? Or the struggle for democracy and freedom will widen and strengthen to achieve new successes; the dimensions of the struggle and the level of organisation will determine this. Of course the international support and solidarity will have a great contribution to the outcome.

Labour Party (EMEP) Turkey
International Bureau

ICMLPO: Communique

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The International Conference of Marxist-Leninist Parties and Organisations (ICMLPO) has successfully concluded its 22rdPlenary, held in Denmark in October 2016. It was characterized by a strong political and ideological unity and a revolutionary and optimistic spirit, recording many advances in the work of the parties and organisations in spite of the relentless anti-communist attacks from the ruling classes, their lackeys and their media.

The Conference finalized and adopted the political Platform, one of its basic documents alongside the original Quito declaration and the Rules of the Conference. The Platform will serve to give direction to the formation and strengthening of the Marxist-Leninist Parties and Organisations in all continents.

The Conference made an extensive and careful study of the present international situation and the sharpening and intensification of all the contradictions of the capitalist and imperialist system, noticing , the continuation of the global economic stagnation, the intensification of the rivalry  between the big capitalist and imperialist powers, such as the US, the European Union, Russia and China, the continuation of the militarization and the war policies, and the increase of the neoliberal attacks on the rights, real wages and living conditions of the workers and the working masses. This is a period of great social and political unrest, of instability of the existing order, and also of a mounting political and economic struggle of the workers and popular strata.

In various countries reactionary and police state measures are applied against the popular struggles under the pretext of combatting terrorism, such as is the case in Turkey after the attempted military coup, in France with the prolonged state of emergency and the new reactionary labor law or in Ecuador with the prohibition of the teachers’ union. In Brazil by means of a parliamentary manoeuvre the right established a government that attacks all the social gains of the workers, working masses and students, won through their struggles. The reactionary Hindu party regime in India has passed anti-worker laws that made more than 150 million workers wage  a two day general strike. All these and more developments are analysed in the resolution of the Conference of the present international situation.

All the Marxist-Leninist Parties and Organisations are preparing the national celebrations of the centenary of the Great October Socialist Revolution (1917-2017) in a context that places not only democratic, but also proletarian and socialist revolutions on the order of the day. Revolutionary situations will develop, and the study and knowledge of the achievements of the October Revolution for the workers, peasants and broad popular masses acquires a new significance. The CIPOML will issue a special edition of Unity & Struggle and publish other material, organize regional seminars, conferences, meetings and celebrations on this occasion.

We reaffirm our obligation to work even harder for the creation of Marxist-Leninist parties and organisations, where they do not yet exist, and to strengthen the existing ones. Wé will intensify our participation in the class and mass struggles, on the basis of working class unity and the creation of popular fronts to confront the neoliberal attacks, wars, militarization, fascistisation and the creation  of police states. We will strengthen our regional and international cooperation, based on proletarian internationalism.

Long live the International Conference of Marxist-Leninist Parties and Organisations!

Source

The Greek Debt Crisis: A Misnomer for the European Imperialist Crisis

Anti-austerity demonstration before the Greek Parliament, July 3, 2015

Anti-austerity demonstration before the Greek Parliament, July 3, 2015

August 2015
Hari Kumar

1. An Introduction to Greece
2. The Truman Doctrine – Greece becomes dependent upon the USA after the Second World War
3. The Greek Junta – Greece by now fully a client state of the USA
4. Capitalist Class of Greece Moves to “Democracy” and Europe
5. The USA Makes Its Move to Become the World Imperialist Leader – The Character of the European Union – from pro-USA states to anti-USA coalition
6. The Greek Economic Crisis 2009-2015
7. The Marxist View of “National Debt” under capitalism
8. The Debt Crisis leads to increasing struggle of the growing Greek working class and gives rise to The United Front of Syriza – the political parties of the left
9. What was the elected programme of Syriza?
10. Elections of 2015 and Negotiations with the Troika
11. Conclusion
APPENDIX: Select Chronology 1975 to 2015

Synopsis:
After the Second World War, Greece was a client state in the Mediterranean of the USA. The revisionist collapse of the Yugoslav communists in the neighbouring state of Yugoslavia was key in this development. Tito’s degeneration into revisionism deprived the minority of the Marxist-Leninist forces in the Communist Party of Greece (KKE) of crucial support. We describe this in a subsequent more detailed article.

This article is restricted to the post Second World War development of Greece, up to the present-day debt crisis. It argues that the entire post-war history of Greece was effectively that of a neo-colonial state serving initially the interests of USA imperialism and British imperialism. The Greek people did not have a non-revisionist proletarian leadership that could develop an independent democratic path. The Junta and the imperialist machinations in Cyprus of the island further retarded the people of Greece. Both Greece and Cyprus – endured military oligarchic dictatorships sponsored by the USA.

The later history of Greece became inextricably entwined with the slow but sure evolution of the European imperialist bloc. This bloc took multiple only slowly coalesced, and eventually it later became the European Community. However during its coming into being, it took several class forms. The post-Marshall Plan in Europe had ushered in a dominant USA which fostered the first steps towards a federal Europe. In its hopes to control the European content as a market, the USA was at first successful. During this period the elements of a united Europe adopted a pro-USA comprador position.

This is also characterised the initial European Economic Union (EEC). But the Euronationlists finally, and haltingly, moved to release Europe to some extent, from the USA embrace. Following the fall of the former Comecon countries, Germany was able to move into a new market itself. This began a new phase. Now the rising German imperialists used their industrial superiority and new market share to re-vitalise their hegemonic ambitions.

Such events were milestones on the road to today’s debacle in Greece. They were the pre-history of the chronic indebtedness of the Greek state.

After the Junta “democratised” itself, Greece swopped the USA master for that of the EU. The EU progressed to be firmly dominated by the unified single unitary state of Germany, where German capitalists became the dominant faction. German capital exported both capital and industrial exports, including… to Greece. Over-riding the total market share of Greece accruing to Germany, are the huge debts of Italy and France to Germany – both at risk of potential default. This underlies the harshness of the German ruling class towards the Greek capitalist representatives in Greece today. Finally, current differences between the International Monetary Fund leader Christine Lagard (representing the USA interests) and the German leaders Angela Merkel and Schauble, show the continuing inter-imperial contradictions. This has engulfed Greece today.

1. An Introduction to Greece

Greece is set in the Eastern corner of the Mediterranean Sea and surrounded by the Aegean Sea:

“Greece has more than 2,000 islands, of which about 170 are inhabited; some of the easternmost Aegean islands lie just a few miles off the Turkish coast. The country’s capital is Athens, which expanded rapidly in the second half of the 20th century. Attikí (ancient Greek: Attica), the area around the capital, is now home to about one-third of the country’s entire population.

(http://www.britannica.com/place/Greece)”

In the modern era industrialisation has been slow, leaving Greece dependent upon agriculture, fishing and tourism. The only segment of industry that could be considered substantial is shipbuilding and related industries:

“The manufacturing sector in Greece is weak. …. In the 1960s and ’70s Greek shipowners took advantage of an investment regime that benefited from foreign capital by investing in such sectors as oil refining and shipbuilding. Shipping continues to be a key industrial sector—the merchant fleet being one of the largest in the world—(but) are extremely vulnerable to downturns in international economic activity, as they are principally engaged in carrying cargoes between developing countries.”

(http://www.britannica.com/place/Greece/Demographic-trends#toc26455)

As far as agriculture is concerned, produce is hampered by small peasant holdings, resulting from an early restriction on large land holdings:

“large landowners appeared relatively late (with the annexation of Thessaly in 1881) and only lasted till the agrarian reforms of 1917, which abolished big landed property in Greece irreversibly.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

In addition dry conditions and poor soil make agriculture at times tenuous.
In recent years the European Community has helped with various grant subsidies. Overfishing has hampered that other resource:

“Greece’s agricultural potential is hampered by poor soil, inadequate levels of “precipitation, a landholding system that has served to increase the number of unproductive smallholdings, and population migration from the countryside to cities and towns. Less than one-third of the land area is cultivable, with the remainder consisting of pasture, scrub, and forest. Only in the plains of Thessalía, Makedonía, and Thráki is cultivation possible on a reasonably large scale. There corn (maize), wheat, barley, sugar beets, peaches, tomatoes, cotton (of which Greece is the only EU producer), and tobacco are grown. Other crops grown in considerable quantities are olives (for olive oil), grapes, melons, potatoes, and oranges, all of which are exported to other EU countries. … Although inefficient, Greek agriculture has benefited substantially from EU subsidies… In general, however, the importance of the agricultural sector to the economy is diminishing…
Greece’s extensive coastline and numerous islands have always supported intensive fishing activity. However, overfishing and the failure to conserve fish stocks properly, a problem throughout the Mediterranean, have reduced the contribution of fishing to the economy.
Greece has few natural resources. Its only substantial mineral deposits are of nonferrous metals, notably bauxite.”

(http://www.britannica.com/place/Greece/Demographic-trends#toc26455) (http://www.britannica.com/place/Greece/Agriculture-forestry-and-fishing)

The early development of modern-day Greek capitalism was that of a merchant capital that weaved itself into the matrix of the Ottoman Empire. Both these traders and arising shipping magnates, were based outside of Greece. Being non-resident they could not transfer easily all their capital resources for later industrialisation needed to keep pace with the rest of the European economies:

“The development of the Greek bourgeoisie must be traced back to the sixteenth century when Greece was under Ottoman rule…. Greek merchants… accumulated vast fortunes and control (over) Balkan trade and most of the Ottoman empire’s commercial transactions with the industrialising West. …..
With the decline of the Ottoman empire in the eighteenth and nineteenth centuries, the Greek bourgeoisie….contributed to the development of Balkan nationalism. It thus played a crucial role in the Greek war of independence against the Turks (1821). For while the Greek peasantry constituted the main revolutionary force in the war, the bourgeoisie and the intellectuals managed to direct this force towards nationalist goals. ….
The first Greek constitutions, for instance, were inspired by the French experience; and although Capo d’Istria and later King Otto tried to implement an absolutist model of government, their efforts were ultimately frustrated.
Of course, it is true that in the nineteenth century the autochthonous merchant class was rather weak. But its counterpart living abroad, the Greek diaspora merchants and ship-owners, with their formidable financial power, greatly influenced the shaping of most institutions in nineteenth-century Greece itself… .. these (Greek) merchant communities.. were flourishing both in colonial centres (Alexandria, Cairo, Khartoum, etc.), in the major capitals of ninteenth- century Europe and in Constantinople and Asia Minor.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

This large overseas Greek bourgeoisie was already prone to comprador positions. Although it helped transfer some capital to Greece itself, this was largely in the mercantile and finance sectors:

“Although relatively small by international standards, the Greek diaspora bourgeoisie, by exploiting inter-imperialist rivalries and playing the role of intermediary between metropolitan and colonial centres, managed to master formidable financial resources, some of which were channelled into mainland Greece. However, given its cosmopolitan and mercantile character, as well as the weakness of the indigenous bourgeoisie, these resources contributed to the development of a top-heavy state and a parasitic tertiary sector, geared to support a mercantile and finance capital, rather than to the development of industry and agriculture.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

By the end of the Second World War, the population of Greece can be characterised in the following break-down:

  • A very small working class, of whom the most militant were in the tobacco industry; also some in shipping (often overseas for long periods) and fishing;
  • A substantial number of small to medium petit-bourgeoisie in the urban areas (artisans, small businesses) and an even larger number of small peasants in the rural areas
  • A small but dominant comprador bourgeoisie with significant financial overseas capital – based in the shipping industry and in bank capital – with many connections to foreign traders
  • A much smaller but ambitious section of industrial capital anxious to develop their ‘home’ base of Greek production.

The first two sections of society in particular, had suffered enormous losses and hardships under the Italian-German fascist occupation; and then in the ravages of the Civil War. A good summary of the position of the Greek people following the Second World War can be taken from Enver Hoxha:

“When our people are rebuilding their country which was devastated during the war, when our country is working with all its might to strengthen the people’s democracy and advance on its peaceful and progressive course, Greek monarcho-fascism is employing a thousand and one of the basest methods to inflict harm on our people. You know what a terrible tragedy is occurring in Greece. The unfortunate but heroic Greek people are fighting against monarcho- fascists and the foreign intervention. The progressive and democratic world is profoundly indignant when it sees the great tragedy of that people who deserve to live free and sovereign, but who, unfortunately, are being mercilessly oppressed and killed by collaborators of Italo-German fascism who are now under the direct orders of Anglo-American reaction.”

(Hoxha, Enver; “We Sympathize With the Efforts of the Greek People for Freedom and Democracy.” Speech 3 October 1947; In: “Two Friendly Peoples
Excerpts from the political diary and other documents on Albanian—Greek relations
1941 — 1984”. Marx, Engels, Lenin, Stalin Institute Toronto, 1985; pp. 47-48. http://www.enverhoxha.ru/Archive_of_books/English/enver_hoxha_two_friendly_peoples_eng.pdf

2. The Truman Doctrine – Greece becomes dependent upon the USA after the Second World War

The USA implemented an overall strategy known as ‘The Truman Doctrine’ – to counter the ideological threat of the USSR after the victories led by the Marxist-Leninists had inspired the world proletariat. In the Aegean the Truman Doctrine aimed to:

“Prevent Greece and Turkey from passing under Soviet Control.”

(Woodhouse C.M. “Modern Greece, A Short History”; London 3rd Edition
1984; p. 258).

Both the USA Marshall Plan and the creation of NATO, were tactical instruments of the Truman Doctrine. They were used in Greece to build and develop a modern capitalist state structure. But before they were deployed, first the potential proletarian victory of the Greek Civil War had to be stopped.

While the British General Scopus and his forces had defeated the combined forces of the Greek Communist Party (KKE) and their military wing (ELAS), significant distrust remained in the population against British imperialism. So, after the battle of Athens (Dec 3rd 1949) was won by the British, a democratic façade was placed onto the imperialist proceedings. By this stage all leftist opposition had been essentially neutralized and no longer posed any threat to the Greek capitalist class.

When the British imperial chief Winston Churchill understood the degree of Greek popular distrust – he reversed his prior opposition to a plebiscite. The plebiscite following the defeat of left forces enabled the return. The ensuing Plebiscite supported the return of King George II to Greece. (Woodhouse C.M. “Modern Greece” Ibid; p. 254).

The Americans also dropped their previous support of the King, and become “ostentatiously neutral” (Woodhouse C.M Ibid; p. 254) – they tacitly supported the British crushing of the communist forces. Archibishop Damaskinos was appointed a Regent in the King’s stead and General Plasitiras (head of EDS) was appointed Prime Minister and head of government in lieu of George Papandreuou. Papandreuou had previously “approved” the British suppression of the mutiny of 1944 (Woodhouse C.M Ibid; p. 252).

Both the American covert support, and the British repudiation of the King’s intent – enabled the predominantly capitulationist ELAS some pretext to accede to British overlordship. Accordingly ELAS now agreed to the infamous Varizka Agreement of February 1945. Only Aris Veloukhiotis and the Political Committee of National Liberation (PEEA) had resisted Varizka – and these forces were simply hunted down and eliminated.

A succession of shaky governments was capped by the first post-war General Election of March 1946. The Communist Party of Greece (KKE) abstained and the Populist party of Constantine Taldaris, formed a government. This election:

“Marked a watershed in Greece’s foreign relations. For the first time the Government of the USA was directly involved in Greek affairs alongside Britain, though occupation in the Allied Mission for observing the Greek elections. It was a first step towards the Truman Doctrine”. (Woodhouse C.M Ibid; p. 257).

The defeat of left and communist forces at Athens had decimated left resistance.
Behind both the King and the Parliament lay the Army, and the most right-wing section of the army – the group known as IDEA (Sacred Bond of Greek Officers):

“After 1949, the ruling class was no longer threatened. … their enemies had been effectively destroyed for a generation.…..
After its victory, the Right imposed a quasi-parliamentary régime on the country: a régime with ‘open’ franchise, but systematic class exclusions. The Communist Party was outlawed and an intricate set of legal and illegal mechanisms of repression institutionalized to exclude left-wing forces from political activity. The job of guaranteeing this régime fell to the agency which created it: the army. The state was nominally headed by the monarchy and political power was supposedly vested in parliament. In reality, however, the army, and more specifically a powerful group of anti-communist officers within it, played the key role in maintaining the whole structurally repressive apparatus… in particular IDEA (Sacred Bond of Greek Officers), which was to play a key role in post-war politics.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

The Tsildardis government gave way to the more right wing Demetrios Maiximos with General Zervas (Formerly of EEDS) as Minister of Public Order. Brutal repressions of left forces continued despite both international protests and the presence of a United Nations observership. We will examine the Civil war and the Varzika Agreement in detail in a subsequent article.

By October 1948, martial law was imposed. Under this direct attack by the right-wing forces, and the simultaneous Yugoslav revisionist turn and exposure by the Marxist-Leninist Cominform of 1948:

“The rebel leaders admitted defeat by proclaiming a ‘temporary cessation of hostilities’… a caretaker government.. lifting of martial law, .. withdrawal of the British service missions and the renewal of friendly relations with Yugoslavia.”

(Woodhouse C.M Ibid p. 260)

The Greek government joined NATO in 1951, as well as the Council of Europe; and the Security Council of the UN.

Although throughout this period numerous governments based on varying participation of right-wing forces were only able to hold power for brief periods. The National Progressive Union of the Center (EPEK) – led by General Plastiras and Emmanuel Tsouderous held power until displaced by the virulently anti-communist General Papagos leading the Greek Rally:

“The days of Plastiras’ government were clearly numbered when not only the Greek public but also the US authorities became impatient … Under pressure from the US Embassy the government resigned in 1952… (leading) to electoral overwhelming victory for the Greek Rally.”

(Woodhouse C.M Ibid pp.261-263).

Army vicious actions purged all state structures – which was key to the state through the immediate post-War period:

“Military reaction established firm control over the whole of Greek territory and consolidated a system of ‘repressive parliamentarism’ or ‘guided democracy’. This was controlled by a triarchy of throne, army and bourgeois parliament. Within this power bloc it was the army, the victor of the civil war, which played the dominant role.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976)

Industrial Policy of the Greek Capitalists in this Period

For the next 11 years, both the Army (Marshall Papagos) representatives, or parliamentary figures (George Papandreou before the coup and later Constantine Karamanlis) wanted to consolidate the neo-colonial status to the USA. This started with an economy based on agriculture, tourism and a small manufacturing base.

“the country was far from self-sufficient. .. the chief market for tobacco was revived (West Germany).. expenditure of tourists which came to take second place only to agricultural products as a source of foreign exchange. The development of manufacturing industry and mining with indigenous capital, in place of foreign concessions, (was) a healthy trend. But the lack of home produced source of energy was a severe handicap. It remained true that Greece was still dependent upon foreign aid and there was no end to this condition in sight.”

(Woodhouse C.M Ibid p. 267)

Five special features of the Greek state’s path to modernisation, can be seen:

1. The political and organisational strength of the working class and peasantry was weak, having been decimated during the second world war and after by the brutality of the state. The KKE was almost devoid of leadership, with key leaders in exile.
2. The small native capitalist class was out-numbered by the many Greek capitalist who were based overseas (shipping) – and did not have the necessary local capital to invest. Hence the small resident Greek capitalists used the State machinery to develop. This state machinery swelled the size of the bureaucracy who became a large state dependent stratum. They aspired to ‘middle-class’ status but were objectively privileged sections of a growing working class.
3. The state still needed the heavy investment of the overseas imperialists. They first aligned themselves to the USA, and then by the 1970s to Europe.
4. These strategies effectively left Greece a dependent state with the beginnings of large overseas debt.
5. An immiseration – poverty and desperation – of the working peoples, led to increasing emigrations to both the USA, Canada and Europe

After the devastation of the Second World War there had been an impressive return to Greek per-war levels of production:

“The Second World War and the civil war had devastating effects on the Greek economy. For instance, at the end of the Second World War, 9,000 villages and 23 per cent of all buildings had been destroyed. It was partially a sign of the vitality of Greek capitalism that by the middle fifties, pre-war levels of output had been reached again and the economy was growing at a fast rate (the average rate of growth in the fifties was 6 per cent).”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

However, despite this growth, manufacturing industry remained undeveloped. Nor did the rise of the shipping industry enable Greek capitalists to retain revenues within Greece to more easily enable a home manufacturing base to be built up:

“the Greek economy of the fifties did not manage to overcome a major feature of its underdevelopment: its weak manufacturing sector. Greek capital, whether in its mercantile, industrial or finance form, was unable to orient itself towards the manufacturing sector—especially in those key branches (chemicals, metallurgy) which, through their multiplying effects and their great transformative powers, can contribute most to a rapid growth of the industrial sector”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“shipping… assumed colossal proportions in the post-war period. …..Greek seamen helped the economy by reducing unemployment and by providing valuable foreign currency through their remittances home. On the other hand, since shipping capital lies outside the effective control of the Greek state (it can always move elsewhere if the state bothers it with heavy taxes or other restrictions), it becomes increasingly an avenue of escape for Greek merchant capital. In this way, if migration robs Greece of its most valuable human resources, shipping plays a similar role with respect to the country’s financial resources..”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“Greece’s age-old specialization within the inter- national economy had gradually given rise to a spectacular concentration of capital among a handful of shipping magnates, mainly based in London or New York, whose aggregate holdings are widely reckoned to exceed the GNP of Greece.”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

In conclusion, Greece did not break out of the strait-jacket of a dependent economy. Despite large state structure support, Greek capitalists did not establish an effective manufacturing base:

“from a ‘under-developed’ economy: i.e. a fast-growing, highly parasitic tertiary sector, a weak and more or less stagnant manufacturing sector with a low labour absorption capacity, and a large but inefficient agricultural sector……Whereas in 1938 manufacturing output amounted to 85·6 per cent of all industrial output, it declined to 79·7 per cent in 1948–9 and to 73 per cent during the 1959–60 period.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“Thus in the late fifties more than half the labour force was still employed in agriculture, whereas the contribution of the industrial sector to the GNP was only around 25 per cent.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Correspondingly foreign investors ensured that favourable legislation was passed in 1953, and by the 1960s a large scale influx of foreign capital flowed in. This was concentrated in the heaviest key sectors, and by the mid 60’s the industrial development had qualitatively changed with heavy industry capital making goods predominating:

TABLE 1 Flow of Foreign Capital into Greece (Dollars)

1960 11,683,700
1961 13,509,809
1962 16,764,758
1963 50,026,290
1964 59,716,887
1965 111,596,368
1966 157,606,242
1967 32,265,000
1969 64,000,000
1970 70,000,000

By the end of 1973, foreign capital invested in Greece had risen to a total of approximately $725 million…. not very impressive if one takes into account that in a single year (1969) $2,504 million went to the gross formation of fixed capital in the Greek economy.

Nevertheless, as foreign capital was mainly directed to-wards the key manufacturing sectors, its impact on the economy was much greater than its relatively small size would suggest. In fact, especially during and after the years 1962–3, when the metallurgical, chemical and metal construction industries experienced a great boost due to foreign investments, one can speak of a qualitative break in the growth of Greek industry. Not only did the industrial sector start expanding at a much faster rate, but there was an important shift in investment from light consumer goods to capital goods and durables.

Whereas in the period 1948–50 light industry represented 77·5 per cent of total manufacturing output, its share went down to 60·9 per cent in 1963–70.31 This important shift is clearly reflected in the changing structure of the Greek export trade.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Correspondingly, there was shift away from agriculture in the economy. And by the 1970s the economy had become qualitatively industrialised:

“In 1960 agricultural products constituted 80 per cent of the country’s exports, but this figure went down to 54 per cent in 1966 and to 42 per cent in 1971, as Greece was more able to export industrial goods. … Despite the dramatic decrease of the agricultural population during the fifties and sixties, the agrarian structure does not show any signs of basic change: there is no marked tendency towards land concentration or the emergence of large-scale capitalist enterprises in agriculture.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

There was a major qualitative change by the 60s, towards industrial development. But it did not eliminate ‘under-development’:

“Thus the sixties saw a qualitative advance in the industrialization of modern Greece. There can be little doubt that the ability of the Greek economy to reap the benefits from concentrated foreign investment in manufacturing was due to its own pre-existing capitalist development. This was not able to generate a significant industrial sector autonomously, but it could adapt itself to, and consolidate one with exceptional rapidity. Yet this type of capitalist development not only failed to eliminate some fundamental aspects of Greek under-development, but on the contrary accentuated them, creating disruptions and dislocations which are directly relevant to an understanding of developments in the political superstructure.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

There ensued an enormous state monopoly centralized economy in the industrial sector:

“The intrusion of foreign capital, in close collaboration with Greek capital and the Greek state, reinforced the already impressive degree of capital concentration in the economy. A first rough intimation of this is conveyed by the enormous size (in terms of assets) of such giants as ESSO-Pappas or Pechiney, or the fact that out of the 200 largest companies in terms of fixed capital, seventeen were fully foreign-owned and in another thirty-nine foreign capital had a degree of participation varying from 10 to 90 per cent. As the share of foreign capital in the GNP steadily increased (from 2·15 per cent in 1962 to 8·15 per cent in 1972), the monopolistic tendencies of the Greek economy were markedly accentuated. If in the fifties monopoly or oligopoly were due mainly to indiscriminate and nepotistic state protectionism, in the sixties they were due rather to the capital intensive nature of the new industries and the small size of the Greek market.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

But the working class was still small. This is reflected in the predominance of small artisanal or petit-bourgeois production:

“This impressive concentration of industrial capital did not eliminate the plethora of small industrial units, which for the most part have a family-oriented, artisanal character. Indeed, one of the most striking characteristics of Greek industry is the persistence, especially in the more traditional sectors of the economy (footwear, clothing, leather, wood products), of small, low-productivity units side by side with large firms that exercise a quasi-monopolistic control of the market. The extent to which small firms persisted in the Greek manufacturing sector can be seen by the fact that whereas in 1930 93·2 per cent of manufacturing establishments were employing fewer than five persons, by 1958 this percentage had only gone down to 84·9 per cent. In 1958 the percentage of firms employing more than twenty persons was 2·1 per cent.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

The working class and peasantry of Greece became progressively more squeezed:

“Gross per capita in- come, approximately $500 at the beginning of the sixties, had reached the $1,000 level by the end of the decade.38 But the few rough calculations which have been made in the absence of complete data leave us in no doubt as to the inequities which disfigure this spectacular gain. For instance, according to a relatively recent estimate, 40
per cent of the lowest income groups receive 9·5 per cent of the national income (after deduction of taxes and social security benefits), whereas the 17 per cent in the top income brackets receive 58 per cent. From 1954 to 1966, when the national income approximately doubled, profits tripled (banking profits between 1966 and 1971 quadrupled).
Obviously, as the relative share of big capital increases, the relative share of all other income decreases. Those engaged in agriculture are, as usual, the worst off. Thus in 1951 agricultural income amounted to 83·3 per cent of the average national income; the proportion dropped to 60·3 per cent in 1962 and 51·1 per cent in 1971… in 1950 independent cultivators and their working family-members constituted 92·39 per cent of the agricultural labour force.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

In summary, there was an unusual dual character to the industrial landscape in Greece. It was one of a state sponsored heavy industry tied into foreign capital, while the petit-bourgeois remained very active:

“the capitalist mode of production, dominant in the Greek social formation, is linked to the mode of simple commodity production (agriculture, artisanal industry) in such a way as to keep growing continuously at the expense of the latter—neither destroying it completely, nor helping it to develop. And it is precisely here that the most crucial difference lies between the western European and the Greek models of industrialization. The former involved either the destruction of simple commodity production in agriculture and industry, or its articulated incorporation into the capitalist mode of production through a specialization which established a positive complementarity with big industry. As a result, the effects of technical progress, which originated in the dynamic sectors, spread fairly quickly to the rest of the economy, with beneficial consequences for income distribution, the expansion of internal markets and so on. In the Greek social formation, by contrast, capital intensive industrial production has taken an ‘enclave’ form. Despite its rapid growth in the sixties, it has not succeeded in expanding or even transferring its dynamism and high productivity to the backward sectors of the economy. Thus simple commodity production looms large within the Greek economy. It gives a lot (directly and indirectly) to the capitalist mode of production, but takes very little in return—just enough to reproduce itself. As a consequence, inequalities in Greece are much greater than those found in the West. For in addition to the usual inequalities between labour and capital in the sectors where the capitalist mode is dominant, Greece has inequalities resulting from the persistence of vast productivity differentials between ‘modern’ and ‘backward’ sectors of the economy.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

As the Greek countryside was becoming depopulated, many peasants emigrated. This deprived the Right wing forces in the countryside of support. The on-going immiseration-depression of the living standards of the working people led to a resurgence of left support. After some electoral gains of the left, the RIght wing army faction decided to set aside the triarchy of Army, parliamentary forces and Monarchy – and to become the sole power base.

How Cyprus Became the Focus of Imperialism and Heated Up Greek Battles

During this time, the relations between the Greek and Turkish pro-USA client states became strained with the Cyprus crisis. The Cyprus struggle had initially started as a war of liberation against the Ottoman Empire and Turkish oppression. It now pitched a small weak Cypriot national bourgeoisie against both the pro-Greek compradors and the pro-Turk compradors.

“The movement for liberation began under Turkish rule among the Greek Cypriots, who suffered particular oppression, and its main demand was for “Hellenic unity”, for “enosis” (that is, union with Greece). The movement continued to develop under British rule, and with the development of a weak Cypriot national bourgeoisie this class came to lead the liberation struggle. The effective leader of the movement was the Ethnarch of the Greek Orthodox Church, Mihail Mouskos — Archbishop Makarios — and embraced two organization
1) the National Organisation for Cypriot Struggle (EOKA), a right-wing body sponsored by the Greek government and led for many years by Greek General Georgios Grivas; and by

2) the Progressive Party of the Working People of Cyprus (AKEL) a body representing more directly the interests of the Cypriot national bourgeoisie, and presenting a left-wing image to appeal to the workers, peasants and urban petty bourgeoisie; it was led by Ezekias Papaioannou.”

(Marxist Leninist Organisation of Britain (MLOB) “THE CARVE-UP OF CYPRUS” “Class Against Class”; No.7, 1974. (http://ml-review.ca/aml/MLOB/CYPRUS_Fin.htm)

The fortunes of the Cyprus liberation movement were inextricably tied to the turn of events in Greece. Here the US imperialists held dominant sway:

“By 1966 Greece had become a semi-colony of US imperialism, and this position of dependence was reinforced by the military coup of 1967 which established a military dictatorship in Greece subservient to US imperialism. From now on the demand of the Cypriot national bourgeoisie (represented by the Makarios government) for national independence had the overwhelming 
support of the mass of the Greek Cypriots, while enosis became the demand only of the pro-imperialist Greek Cypriot comprador bourgeoisie.“

(MLOB, “The carve-up of Cyprus” Ibid)

What was the character of the ‘Independent’ state of Cyrus? In reality it was a neo-colony of Britain:

“In December 1959, prior to the granting of “independence”, elections were held for a Provisional President of Cyprus, Makarios stood on a platform of acceptance, with reservations, of the British imperialists’ plan and was elected by a large majority.
Despite the fact that Makarios represented the interests of the Cypriot national bourgeoisie, the British imperialists felt it safe to hand over “power” to a government headed by him by reason of the antagonisms artificially built up between the Greek Cypriot and Turkish Cypriot communities on the island, believing that these antagonisms and other “safeguards” could be effective in preventing the Makarios government from taking any steps to end the neo-colonial status of the island.
The “independent” Republic of Cyprus which came into being on August l6th, 1960 was, in reality a neo-colony of British imperialism.”

(MLOB “The carve-up of Cyprus” Ibid)

While Archbishop Makarios was a representative of the Cypriot national bourgeois, he was unwilling to launch a struggle that unleashed the power of the working class and peasantry. Thus he was left to resort to intrigue and maneuvers aimed at “seeking advantage of the contradictions between various powers” (MLOB). However this was ineffective as the USA blocked shipped arms from the USSR.

3. The Greek Junta – Greece by now fully a client state of the USA

As noted, the 1967 Greek military dictatorship was established by a coup backed by the USA. It was precipitated by the increasing working class struggles against the poor economic situation of the neo-colonial state of Greece, whereby:

“US civil aid came to an end in 1962; Greece was admitted as an Associate to the European Economic Community; and partial settlement was reached of Greece’s long-standing indebtedness to creditors in the USA and to private creditors in Britain. In each case the result was to add to the strain on the balance of payments..…. nearly one third of the budget was still devoted to defence… The stringency of the economic state of the country led to a number of ugly demonstrations. Strikes became increasingly frequent..”

Woodhouse C.M Ibid p. 282-283.

The then King, Constantine II was the Commander-in-chief of the army.
That the right wing forces were loosing support became clear from the 1958 electoral gains by left wing party EDA. The right wing section of the army – IDEA – launched the “Pericles” Plan:

“devised for the purpose of neutralizing the communists in case of war, this was used instead by the Right to achieve victory in the 1961 elections.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

This move by the extreme right-wing of the army, prompted George Papandreou
to start “Anendotos” — a “fight against the repressive policies of the Right.” His party was the “Center Union.”

“In the 1964 elections, Papandreou’s Centre Union successfully challenged the electoral dominance of reaction. In the elections of the following year, it further consolidated its position by gaining an unprecedented 53 per cent majority. Meanwhile, a strong left wing emerged within the Centre Union, under the leadership of Papandreou’s son Andreas.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Although George Papandreou tried to move against IDEA. He also tried to improve some aspects of working peoples lives. Together this prompted the Army and the Monarchy to plot against Center Union by slandering his son Andreas, as a traitor who shared state secrets. An interim coalition government of centrists was formed but fell quickly. Panagiotis Kanellopoulos formed a ‘Service Government’, prior to an election. However, the Army remained determined to sweep away any opposition:

“In 1967, the Greek military seized power in a coup d’état, overthrew the centre right government of Panagiotis Kanellopoulos. It established the Greek military junta of 1967-1974 which became known as the Régime of the Colonels.”
https://en.wikipedia.org/wiki/History_of_Greece

The Colonels did not change the economic direction of Greece, they made it simpler – they suppressed both workers, peasants and small petit-bourgeoisie – in support of the capitalists:

“The colonels, by following the logic of the economic model they had inherited, gave their unlimited support to big capital, foreign and indigenous. They made sure through repression that the ensuing growing inequalities would be accepted unconditionally, without protests or strikes to frighten capital away. After a short period of hesitation… private investment rose again and foreign capital continued its penetration of the Greek economy. The rate of growth soon surpassed pre-dictatorial levels and sustained an impressive acceleration. This achievement was a clear indication of the ‘fit’ between rapid capital accumulation and the dictatorship. Moreover… despite growing inequalities, the standard of living grew steadily during the period of the dictatorship. The colonels brought to fruition a process of dependent industrialization that had started before them. They did not initiate it, they merely pursued it with vigour and consistency.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Although Mouzelis is sceptical that the USA supported the coup, it most likely they did. Much later on, USA President Clinton – admitted that the USA had backed the Junta:

“When US President Clinton visited Greece in 1999, he obliquely offered what sounded like an apology when talking about a “painful” aspect of their recent history.
“When the junta took over in 1967 here, the United States allowed its interests in prosecuting the Cold War to prevail over its interests — I should say, its obligation — to support democracy, which was, after all, the cause for which we fought the Cold War.” Clinton said in his conciliatory remark,
“It’s important that we acknowledge that.”

Remarks By President Bill Clinton and Prime Minister Simitis of Greece to the Government of Greece, Business and Community leaders. Inter-Continental Hotel Athens, Greece – November 20, 1999.
Anti-Revisionism in Greece ‘The Rule of the Colonels’
– the military Junta 1967-1974 https://www.marxists.org/history//erol/greece/junta-note.pdf

But there was never any serious threat to the Parliamentary section of the Triarchy. The working class had simply been resisting the economic pressures.

They had not been organised into a meaningful communist resistance.

The Junta soon became led by George Papadopoulos, who instituted a reign of terror against leftists and communists. The King tried in 1967 to establish himself as a sole dictator, but was rebuffed and fled to exile.

As Prime Minister, Papadopoulos continued a brutal dictatorship overseen by the dreaded Military Service Police (ESA) of Ioannides. The crude overthrow of any democratic norms even led the Council of Europe to demand Greece’s resignation. But:

“The Western Alliance as a whole continued to tolerate the dictatorship, on the grounds that Greece formed an essential part of NATO….. The US went still further.. American policy became one of active support. American and Soviet strategists were engaged in a duel in the eastern Mediterranean. It became even more intense after the ‘Six-Day War’ of June 1967 between Israel and the Arab states… In September 1972, an agreement was signed by which the US Sixth Fleet would enjoy home-port facilities at Piraeus.”

(Woodhouse C.M Ibid pp.298-99)

Repressions continued and provoked even a Mutiny in the Navy in 1973. In an infamous incident, the students at Athens Polytechnic were brutally assaulted in November 1973. Using tanks to suppress a sit-in, more than 20 students died. This allowed Brigadier Ioannidis to seize power for himself, behind a puppet General Grivkas (Woodhouse Ibid p. 305). Formal martial law was again installed.

Ioannidis now also moved to oust Archbishop Makarios from Cyprus in a coup d’etat. Moreover this was coordinated with the imperialists in order to ensure the partition of Cyprus into a ‘Greek” area and a “Turkish” area. Events unfolded as follows:

“The pretext for action was a note from Makarios to Greek President Phaedon Gizikis on July 2nd., demanding the recall of the Greek officers of the National Guard on the grounds that they had been collaborating with EOKA-B (the terrorist Organisation formed by Grivas following his return to Cyprus in 1979 and continuing in existence after Grivas’s death in January 1974) in attempts to assassinate him and overthrow the government. The note set the deadline of July 20th. for compliance with the demand.

So, on July 16th, on the orders of their Greek officers, units of the (Greek Cypriot)–National Guard, in full collaboration with EOKA-B and with the Greek troops stationed on the island, staged a military coup and established a military dictatorship over the part of the island outside the enclaves under the control of the Turkish Cypriot comprador bourgeoisie’s “Transitional Administration”. A new puppet “President” was installed, one Nicos Sampson, a curfew imposed and thousands of supporters of the Makarios government arrested.

The Greek government recognised its puppet regime almost immediately. while the Turkish government threatened that unless the situation in Cyprus were reversed it would order its troops to invade Cyprus under the Treaty of Guarantee.

For four days the US imperialists and their allies in London, not only took no action, they deliberately obstructed the calling of the Security Council of the United Nations which could have taken some action. As Lord Caradon put it bluntly in a letter to the press:

“Due to the deliberate delay of the United States and the United Kingdom, it was not until after the invasion (i.e. of Cyprus by Turkish troops — Ed.) that the Security Council passed any resolution at all.”

(Lord Caradon: Letter to “The Guardian” 11 July 31st, 1974; p. 12).

Meanwhile, Makarios had managed to escape from Cyprus. He was received by the British government with formal, but non-committal, protocol, but the United States government talked with him only in his ecclesiastical capacity”:

“The President (i.e., Makarios — Ed.) had been given the chilly US reception of — in Dr. Kissinger’s terms — ‘a loser’, without hope of a comeback”.
(“The Observer”, July 28th.9 1974; p. 9).

On July 20th., therefore, some thousands of Turkish troops invaded northern Cyprus according to plan, occupying the principal area inhabited by Turkish Cypriots from the port of Kyrenia to the outskirts of the capital, Nicosia.

Later the same day, the US and British imperialists brought the Security Council into action, and it passed a resolution calling for an immediate cease-fire on Cyprus. And Greece and Turkey — despite being, according to the world press “on the verge of war” – dutifully obeyed.”

(MLOB; Ibid).

As Woodhouse rightly comments:

“The US was legitimately suspected of having backed Ioannidis”

(Woodhouse Ibid p.305)

4. Capitalist Class of Greece Moves to “democracy” and Europe

The work of the overt and now discredited dictatorship of the generals was done, they had suppressed any internal left opposition. The stage was set for the partition of Cyprus. Now under an international odium, the Colonels “took off their uniforms” – again under pressure again from the USA imperialists. As the MLOB put it:

“The Colonels Take Off Their Uniforms

On July 23rd 1967. The military junta that had exercised a military dictatorship suddenly stepped into the background over the people of Greece since 1967, and announced that they had invited civilian politician Konstantinos Karamanlis to form a civilian Cabinet.

Karamanlis is mainly remembered for his role as Prime Minister in arranging the murder (and its subsequent cover-up) of rival politician Gregori Lambrakis (portrayed in the film “Z“). While in exile in Paris, he was in June 1965 voted into Karamanlis’ party ‘New Democracy’. He was committed for trial by an investigating committee of the Greek Parliament for “bribery, dereliction of duty and maladministration”.

Due to an unfortunate error, the “democratic revolution” in Athens was announced by US Secretary of State Henry Kissinger the day before it actually happened. Even the capitalist press was compelled to treat the “revolution” with some cynicism:

“Dr. Kissinger and his emissary Mr. Joseph Sisco have played a key role in promoting governmental change in Gioecell.”

(“The Guardian”, July 24th., 1974; p. 2).

And in fact, little fundamental in Athens seemed to be changed. True, a considerable number of political prisoners were released (a necessary step in order to obtain enough politicians to form a government). But Brigadier-General Dimtrios Ioannides remained in office as head of the hated military police, martial law continued and in his Message to the Nation Karamanlis was careful not to mention the word “democratisation.”

(Marxist Leninist Organisation of Britain (MLOB) “THE CARVE-UP OF CYPRUS” “Class Against Class”; No.7, 1974. (http://ml-review.ca/aml/MLOB/CYPRUS_Fin.htm)

Nonetheless Karamanlis did restore the Constitution of 1952 (making it again a monarchy) and released all political prisoners and “legalised the CP for the first time since 1947”. (Woodhouse; Ibid; p. 305). In actual fact he had no real choice as the prior alliance that had formed the Triarchy (Army, right-wing parliamentarians, and Monarchy) had been totally discredited.

“When Constantinos Karamanlis, the grand old man of the Greek Right, stepped into the breech and formed the first post-junta government in 1974, it was immediately apparent that there could be no simple reversion to the old model of repressive parliamentarism… (But) his freshly formed New Democracy party retained and expanded the electoral support that had previously gone to the parties of the Right. But the political discrediting of both the army and the throne—which had, in any case, regarded with suspicion Karamanlis’s sixties project of modernizing the monarchy—left him with little choice but to seek the consolidation of right-wing hegemony through a populist inflection of internal and external policy… Within months of coming to power, the National Unity Government headed by Karamanlis had withdrawn from NATO’s military command structures, legalized the Communist Party for the first time since the civil war, organized relatively free general elections, and called a referendum that produced a 69 per cent majority in favour of the republic. Subsequent trials of junta leaders—in some cases leading to sentences of life imprisonment—underlined the subordination of the officer caste in ‘normal’ political activity…”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

By November 1974, elections had elected Karamanlis’ ‘New Democracy’ party. A further plebiscite confirmed a popular rejection of the monarchy. Karamanlis tellingly revealed his government’s objective nature:

“Karamanlis once remarked that he was himself the Americans’ only friend in Greece, and he dared not admit it.”

(Woodhouse Ibid p. 308).

Where was the economic development of Greece by now?
The hopes of the Greek capitalists had in fact not been fulfilled:

“In Greece… the early seventies already witnessed a rise in the specific weight of food, clothing and construction industries, and in the latter half of the decade manufacturing as a whole was contributing less than fifteen per cent of the annual increase in GDP, while fully three-quarters of GNP growth came from the inflated services sector. Manufacturing exports, given the small size of the internal market, had originally been conceived as one of the principal keys to success, and at first a number of important openings were found in this area. However, the recessionary tides of the seventies, together with the intense competition of low-wage economies precisely in textiles and other such goods, led to a loss of Greece’s market share everywhere except in the Middle East. By 1980, when PASOK was preparing to take over the reins of government, it was possible to talk of an actual tendency of deindustrialization, as the import/export ratio of manufacturing goods had risen to 3.2:1 from 2.5:1 in 1974.”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

While Karamanlis was not anti-American, he was moving Greece towards Europe. Relations with Europe, in order to join the European Economic Community (EEC), became the focus. Karamanlis had spent 15 years as an exile in France, and the French government had sent him back to Greece on a government plane.

On 1 January 1981, Greece joined the EEC becoming its tenth member.
But Karamanlis was struggling to withstand the growing resistance as inflation drove a left shift. The by now openly revisionist Communist party of Greece (KKE) had begun to capture a portion of the electorate:

“At the left end of the spectrum, the Communist Party of Greece (KKE) rapidly consolidated a strong position in industry and a ten-per-cent bloc of the electorate”;

(Petras Ibid New Left Review 1987)

A new façade to divert the masses was urgently needed. The prior ‘centrist’ party of George Papandreou had been the ‘Centre Union’. After the Junta dissolved itself, this won 20% in the first elections, and supported Karamanlis in government. Consequently it soon disintegrated. George’s son, Andreas Papandreou had been trained as an economist in the USA. He had been instrumental in the pre-Junta parliamentary government, in attempting to curb the most right-wing elements of the Army (IDEA). He had fled into exile after the coup, and from there organised a resistance grouping – Pan-Hellenic Liberation Movement (PAK).

After the Karamanlis return to parliamentary rule, Papandreou organised the
Pan-Hellenic Socialist Movement (PASOK). Within 7 years it had won the in the Greek elections of 1981. It was an explicitly social-democratic formation proposing:

“full-scale nationalization and ‘an end to the exploitation of man by man’. …. And an all-round modernization of Greece’s productive system that would bring to the fore hi-tech industries employing local and expatriate skilled labour and producing for internal consumption and export. In foreign policy, Papandreou retained his reputation as an intransigent opponent of NATO and of any Greek involvement in the EEC .. All these themes came together in skillful and insistent propaganda centred on the need for comprehensive change or allaghi.”

(Petras Ibid New Left Review 1987)

By October, Andreas Papandreou was elected into power for the PASOK party.
It is true that early progressive moves were made during its government including early secularisation and improvements in the role of women:

“The more general secularization of Greek society, and the introduction of divorce by consent, civil marriage and equal rights for children born out of wedlock.. the Greek parliament has abolished various repressive laws from the fifties as well as some of the extreme powers given to the police, and although the military has largely remained a world apart, subject to no fundamental restructuring or parliamentary scrutiny, it has been deprived of the means of direct intervention that used to be provided by its own radio station. .. the EAM/ELAS Resistance was officially rehabilitated.”

(Petras Ibid New Left Review 1987)

However PASOK retreated quickly upon attempts to tax urban real estate, and did not try seriously to ever move on this front again. Industry remained at a comparatively low level against other countries of Europe. PASOK did not base itself on the working class, and thus never proposed any resolve to deal with either the Greek capitalists, or the petit-bourgeois small business. Corruption was a real problem and Petras proposes the term ‘kleptocrats’ to describe a stratum of especially corrupt business:

“Most of the ‘industrialists’ continued to accumulate wealth by borrowing huge amounts of capital from the state banks, investing a fraction and diverting the rest to overseas bank accounts. The debt/ capital-investment ratio remained one of the highest in the world because industry was directed not by the usual kind of entrepreneur but by a highly distinctive stratum of kleptocrats. Agriculture too suffered from underinvestment, irrational and costly marketing systems, with a multiplicity of small farms divorced from organized credits or from productive systems capable of providing cheap inputs or processing outputs.”

(Petras Ibid New Left Review 1987)

The preponderance of petit-bourgeois ownership of small businesses had bred its brand of tax evasion and corruption:

“In Greece, …the pervasiveness of petty-bourgeois ideology and the ability of the non-productive classes to evade taxes and acquire multiple sources of income. Until Greek society recognizes the working class as its most valuable asset in the drive for industrialization, it will be doomed to stagnation and crisis.”

(Petras Ibid New Left Review 1987)

PASOK would not move against the capitalist class. Instead it resorted to short term loans to head off worker and petit bourgeois discontent. PASOK rule led to inflation and the start of the debt. At the same time debt increased. Meanwhile
The financial sectors were bolstered whilst manufacturing was neglected:

“PASOK’s early spending spree… increase(d) the consumption of nearly all sections of the population without creating any new industrial capacity to meet that demand. The government raised wage income, partially offsetting the inflationary erosion in Karamanlis’s final two years; private capital responded by slowing investment to the merest trickle. Exports stagnated, while imports mushroomed and invisible earnings (the mainstay of the external sector) began a sharp decline. To secure the populist compromise the regime had turned to foreign loans, fiscal deficits and EEC subsidies; ….

Public sector borrowing soared from 12–1 per cent of GDP in 1983 to 17–1 per cent in 1985, without having any effect on domestic output; and particularly in the run-up to the June 1985 elections it was increasingly used to finance current expenditures, which rose from 39 per cent of GDP in 1984 to 41 percent in 1985. As one study has noted:

‘The fastest-growing category was employment in services, almost exclusively led by continuing substantial increases at around 3 per cent per annum in employment in the public sector and in banks . . . In the three years to 1985 employment in manufacturing declined by around 2–1 per cent.’ Table Two (below) sets out the still sharper fall in output during
the first PASOK term.

Table 2: Greek Industry, 1981–1984: 1970 =100

                                         1981 1982 1983 1984
Consumer goods 195     191      188      192
Capital goods        180     163      167      172
Source: OECD Report on Greece, 1985/86.”

(Petras Ibid New Left Review 1987)

Agriculture also saw falling production:

“Agricultural growth for its first term was as follows:
_1.6, 1981; _2.4, 1982; _6.8, 1983; _6.4, 1984; _0.5, 1985.
The reason for these meagre results was that only a small part of the funds were actually used in agriculture. The remainder were employed to ‘finance consumption, to be redeposited with banks at much higher rates, and to be used for the acquisition of real estate in urban areas.’”

(Petras Ibid New Left Review 1987)

In fact, while the now infamous external Debt of Greece, became a ballooning problem under PASOK. Petras cites figures from the OECD:

“PASOK has also increased Greece’s role as a subordinate debtor nation beyond the worst period of the old Right… (See Table 3 Below.) The foreign debt stands at 45 per cent of GDP and payments account for close to a quarter of export earnings. Given the phasing- out of EEC balance of payments assistance, commercial borrowing will soon have to increase more than twofold, on terms dictated by the foreign banks: namely, the closure of unprofitable public enterprises; greater freedom for employers to hire and fire workers; tough anti- strike legislation, relaxation of price controls, an expansion of public– private ventures, and an open door to foreign investment.

Table 3:

Greece’s External Debt (in billions of $)
                       1981 1982 1983 1984 1985 1986
Total Debt         7.9      9.5      10.6   12.3    14.8    17.0”

(Petras Ibid New Left Review 1987)”

In fact – all this is very similar to today, and the same demands for ‘austerity’ were raised then by the European banks.

This social-democratic party, now more openly objectively played the role of a pro-European comprador:

“Papandreou .. freely engaged in anti-American rhetoric… contending that the American imperialism was the most serious threat to humanity, Papandreou unnecessarily antagonised Washington.”

(Kofas JV; “Under the Eagle’s Claw – Exceptionalism in Postwar US-Greek Relations”; Westport 2003; p.184)

Meanwhile Papandreou was moving Greece firmly into dependency to the EEC:

“Dependency results from the growing EEC domination of the Greek economy. While the EEC has increased the transfer of loans and grants to Greece, this has been more than offset by the takeover of internal markets and the displacement of Greek manufacturers and farmers. To quote again from the OECD report: ‘Whereas Greek manufacturing output has remained broadly stagnant in the three years to 1985, import volume of manufactures may have risen by roughly one fourth in the same period.”

(Petras Ibid New Left Review 1987)”

Neither PASOK nor the party New Democracy (Led by Kostas Karamanlis, the nephew of the former President) – differed substantially in their political orientation towards Europe. Both were realigning from the USA to Europe:

“Greece evolved from a client-patron relationship with the US to being an EU member, subordinating its national sovereignty to the community….
With increased competition of the regional economic blocs.. after the Cold War Greece drifted further from the US, because Europe was drifting as it strengthened and expanded its own sphere economically financially, politically, and militarily…”

(Kofas JV; “Under the Eagle’s Claw – Exceptionalism in Postwar US-Greek Relations”; Westport 2003; p.248)

Greece’s leaders also did not appreciate the USA more overtly favouring Turkey as its vassal state of choice in the Aegean and Mediterranean. But in fact, Papandreou was posturing – and perhaps to the populist base that PASOK had bult, that he was ant-USA. After all, Papanadreous signaled to the USA that were better terms given to Greece, that this re-orientation could be re-visited. Correspondingly during the 1984-1985 year, the total US military aid to Greece actually went up (Kofas, p.200 Ibid). Moreover he renewed Greece’s allegiance to NATO, and enabled the US fleet continued facilities.

This hesitation of Greece’s capitalist leader to completely cut the USA off as their pay-master, reflects that of the European powers themselves (see below). The determination of the EEC to sharply diverge, reject its subordinate status and openly challenge the USA, was still to come.

By 1985, PASOK reversed all its earlier progressive steps for workers wages and trade unions. It increased unemployment to doubled its rate (it was now above 10%). It enabled employers to revert to arbitrary practices of hiring and firing, and empowered them to break strikes.

Greece’s path was set by the refusal to tackle the core problem: Refusing an independent path and adopting a pro-European comprador path – just as before it had been a pro-USA comprador path. What did this mean? Essentially it mean chronic indebtedness with no possible release. Warnings that were later to be echoed in 2014 – began to sound:

“Interest payments on the external debt have been undergoing a geometric progression (up from $466 million in 1980 to $1.1 billion in 1984), while exports have fallen from $4.7 billion in 1981 to $4.4 billion in 1984. … Capital flight has increased significantly in the 1980s, as it has done in other indebted rentier states. ….. a positive $15 million balance of payments in 1980 became a negative $312 million in 1984. For these reasons—together with the overwhelming predominance of speculative over entrepreneurial capital—it is clear that the financing of further growth is virtually excluded. Far from inducing the inflow of new resources for development, Greece’s ‘opening to the outside’ or ‘liberalization of the economy’ will facilitate the outflow of resources, thereby deepening underdevelopment. Nor will the device of lowering wages make Greek capital competitive, so long as industrial capital acts principally as a financial intermediary and fails to innovate and invent.”

(Petras Ibid New Left Review 1987)

The details of individual governmental changes up to the 2010 financial crisis in Greece, are beyond the scope of this article. In fact, they do not substantially alter the analysis. The trajectory of Greece was now set. While the political leaders were acting in the interests of the dependent capitalists (in essence all of Greek capital) – the compact with foreign imperialism would ensure the Greece crisis became a financial chain-reaction.

We must briefly examine the politics of the European coalition at this point.

The Appendix carries a detailed chronology describing the history of Greece from 1981 up to 2010.

5. The USA Moves to Become the World Imperialist Leader – The Character of the European Union – from pro-USA states to anti-USA coalition

Moving to a meaningful trans-national coalition of European capitalist states – took several steps and forms. The coalition morphed from a post-war Europe wish to re-build, through to the European Economic Community (EEC) and then to the European Union (EU):

“The Community’s initial aim was to bring about economic integration, including a common market and customs union, among its six founding members: Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. It gained a common set of institutions along with the European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM) as one of the European Communities under the 1965 Merger Treaty (Treaty of Brussels). In 1993, a complete single market was achieved allowing for the free movement of goods, capital, services, and people within the EEC…

Upon the entry into force of the Maastricht Treaty in 1993, the EEC was renamed the European Community to reflect that it covered a wider range than economic policy. This was also when the three European Communities, including the EC, were collectively made to constitute the first of the three pillars of the European Union, which the treaty also founded. The EC existed in this form until it was abolished by the 2009 Treaty of Lisbon, which incorporated the EC’s institutions into the EU’s wider framework and provided that the EU would “replace and succeed the European Community.”

(Wikipedia: https://en.wikipedia.org/wiki/European_Economic_Community)

Through these steps, the class alliances of the countries of the European alliance changed in its essential character.

Immediately post-Second World War, the European countries, were formed into a pro-USA formation. However over time they became anxious to attain autonomy from the USA. This fight-back reached a climax after the USA launched its financial attack in launching the Dollar Hegemony in the Plaza Agreement of Richard Nixon in August 1971. This act finally precipitated the formation of the Eurozone. This section traces the course of the changing class character of Europe in the post-Second World War decades.

At the end of the Second World War, the USA planned to rebuild European capitalism through the USA Marshall Plan for its own ends. This was facilitated by the fact that the Second World War had physically devastated Europe, and that many countries were in debt to the USA. Britain, for example was now completely beholden to its major competitor – the USA:

“When sales of foreign investments and of gold and dollars are added in, the net change on capital account between the outbreak of war and the end of 1945 amounted to no less than Pounds Sterling 4,700 million. The United Kingdom ended the war with the largest debt in history.”

(A.Cairncross. Years of Recovery, British Economic Policy. 1945-51. London, 1985. p.7). 

American imperialists recognised that Europe needed to be re-built as a bulwark against further socialist upheavals. Especially as the USSR successful battles, had become an inspiration across the world. The USA imperialists – as personified by James Warburg (part owner of the House of Morgan, a controller of USA international finance and industrial and utility trusts) – remarked:

“Germany was the hub of the weak German economy ‘the largest single compact mass of skilled labour on the Continent’, it should be transformed from ‘the present poor-house and plague-center’.. ‘into a powerhouse for a rapid reconstruction of Europe, without letting the powerhouse acquire too broad a permanent franchise and – above all – without letting the powerhouse ever again become an arsenal’…. ‘The Westward thrusting of communism will not be stopped by an physical frontier. It can be only stopped only a planned, US-Aided reconstruction so liberal and even revolutionary as to meet the challenge on its own grounds, and to strike the meaning from the accusation of American “dollar diplomacy.”

(Van Der Pijl, K. ‘The making of an Atlantic ruling class”; pp. 42-43,146; London 2012).

As time would show, once Europe had been rebuilt as a bulwark, the USA could not restrain European capitalists wanting their own dominance.

In postwar Europe – the Marshall Plan was one of the three trade and economic tactical instruments by which the USA imperialists wished to take advantage of the post-Second World War crippling of the European powers. The other two were the creation of the International Monetary Fund (IMF) and the creation of the General Agreement of Trades and Tariffs (GATT). The military instrument to back these up was of course the North Atlantic Treaty Organization (NATO). The Marshall Plan was conceived as an anti-communist and anti-nationalist weapon and a means to erode European independence:

“The establishment of American hegemony in the North Atlantic area was directed simultaneously against the spread of planned economy and social revolution beyond the Soviet-controlled area in Europe and against the national, self-contained reconstruction programs pursued by most West European states in the immediate post-war period. These programs in which local Communists parties participated, were judged unsuited for maintaining capitalist rule in the long run. ‘Europe would have been Communistic if it had not been for the Marshall Plan, Marshall Aid administrator Paul Hoffman claimed in February 1950.”

(Van Der Pijl, K. Ibid; p.148-9)

Van Pijil summarises that:

“Through the Marshall offensive, the Pax American was imposed on the economic ruins of the defunct Pax Britannica in Europe.”

(van Pijl Ibid p. 167) .

But the formation of the IMF was another key strand of the USA design.

“Bretton Woods.. Shorthand for the system, designed by the US and Britain, that governed international monetary and economic relations in the decades following the Second World War. … (It was) the launch of the post-war phase of super-dominance of the US and the dollar. .. All member countries pledged themselves to play by an internationally agreed set of rules…these rules were quite strict, and enforced by a new world economic policeman, the International Monetary Fund (IMF). Countries had to declare a ‘par value’ – an exchange rate – of their currency in terms of the American dollar and/or gold, and change it only in consultation with the IMF. Various forms of currency manipulation were named … to prevent a return to the competitive devaluations and currency chaos of the 1930s. While countries could keep some controls on movements of capital, they basically undertook gradually to dismantle the wartime systems of exchange and trade controls and to move towards the free convertibility of their currencies… they also pledged themselves to adhere to the rules of the multilateral trades and payments scheme”;

(Dean, Marjorie & Pringle, Robert “The Central Banks”; London 1994 p.75).

In return for this agreement, the USA agreed to take over the position as “lender of last resort” – whereby it would honour those creditors who wished to remove gold in exchange for dollar. It would:

“Submit to discipline by its agreement to convert into gold any dollar balances presented to it by overseas central banks at the fixed price of $35 an ounce. The US was the only country to accept such a gold convertibility obligation and the only one in a position to do so, having ended the war owning about two-fifths of the world’s stock of monetary gold”;

Dean and Pringle; Ibid p. 76.

This in effect took over the dominant position of lender of last resort that the British government had previously held from 1924 to September 1931 (Dean and Pringle Ibid p. 63). The US was anxious to see this agreement effected as it would enable the USA to control international monetary policy:

“In these countries (Ed -ie. those agreeing to join the IMF) national central banks of countries other than the US had little influence on policy decisions. Domestic and economic policy came to be dominated by one objective – the maintenance of the fixed exchange rate against the dollar – and exchange rate policy, was of course entirely a matter for government…. For the most part, a government would respond to an impending payments deficit by tightening fiscal policy (Ed-i.e. dropping the printing of money) or putting up interest rates; and a country with a surplus would ease fiscal policy or lower interest rates. Of the major countries only France resorted regularly to devaluation as way of maintaining its export competitiveness and growth.”

(Dean and Pringle; Ibid p. 76).

This meant that the USA did not need to try to maintain its currency value. All countries had to acquire the dollar; there was no need for the dollar to be defended at any particular rate of exchange. By 1949 the US had acquired 72 % of the world’s gold. The Bretton Woods Proposal had been resisted by Lord Maynard Keynes of Britain, but to no avail. This Agreement eased the post war period for the USA, because all other Central Banks had to have a dollar reserve:

“Making the dollar a reserve currency meant that central bankers round the world had to have dollars. They had to buy dollars in the marketplace which pushed up the price of the dollar up, threatening the parity of the currency with the dollar. Thus they could only buy when the dollar was weak… This suited the US and the US Federal Reserve which could follow a very lax monetary policy to make sure that there were always dollars to go around. It worked wonders for post-war US domestic policy, helping promote the wartime dream of full employment.”

(Bose, Mihir “The Crash” London, 1988. p.135).

The USA was in an unusual position of dominance. It had funded the war for the Western capitalist allies, detonated the Atom bomb thereby showing its military dominance, and had a home base that was unaffected to a large extent by the war. It proceeded to further dictate terms, to ensure its vote in the IMF on decisions, was a veto:

“In order to finance European and other foreign purchases from America, that is to ensure adequate financial resources to sustain US exports, (“world trade”) the US Government had taken the lead in 1944 at Bretton Woods to establish the International Monetary Fund (IMF) and the World Bank. Loans were provided by the U.S. Government and US credit markets via the World Bank to European governments, which used them mainly to pay for goods supplied by American exporters. The source of the original loan funds provided by the IMF came from foreign currency and gold subscriptions by the participating nations. America’s subscription amounted to almost $3 billion and entitled it to nearly 30% of the voting power. The member nations agreed that an 80% majority vote would be required for most rulings, thus conceding unique veto power to the US… Europe was fully aware that it was ceding to America the option of determining its own currency values and tariffs. The US was the only nation with sufficient foreign exchange to finance a program of overseas investments, long term financing and foreign aid…”

(Hudson, Michael. Global Fracture, the new international Economic Order. New York, 1977. p.11-12).

Such a ceding of power to the USA was self-evident as any debts to the USA were only made payable in dollars or gold. The Bretton Woods Agreement had after all made the dollar “as good as gold.” The USA actively hoarded gold. Until 1958 and the Korean war the gold stocks of the USA remained exceedingly high, in correspondence with the USA stipulations on repayment). The USA also ensured that the major European powers joined the Gold Pool. This served:

“To ensure that the gold parity of the dollar would be supported by the central banks, the European ones mainly, who would thus have to sell central bank’s stocks of gold as the occasion demanded. The price of gold was kept artificially low at a time when the price of goods was rising. The dollar thus stayed as good as gold and the US was freed from the threat of having to support the gold parity of the dollar by itself, or of seeing gold overtake the dollar as an international reserve instrument which remained a theoretical possibility in the framework of the Bretton Woods Agreement. The US spared no efforts in its campaign to impose and maintain the Gold Standard.”

(Fiit,Yann, Faire, Alexandre, and Vigier, Jean-Pierre; (“The World Economic Crisis, US imperialism at Bay”; London, 1980; p.76.;p.83).

Britain was being firmly eclipsed by the USA as the foremost imperialist. The pivotal point forcing even the most stubborn British imperialists to recognise this, came in the Suez disaster of 1956 (these events were described in “The Gulf war – the USA Imperialists Bid To Recapture World Supremacy” at
http://ml-review.ca/aml/allianceissues/alliance2-gulfwar.htm)

Meanwhile the other European capitalists searched for ways to move into more independence. This was a slow process. The USA continued to exert major obstruction to real independence for some time. Within each of the major European states, some elements were more inclined towards the USA (i.e. compradors – the so-called pro-‘Atlantic’ bourgeoisie), some were more interested in maintaining an independent sovereignty (the so-called ’Euro-nationalists’). These tensions played out over decades, spanning three “waves” of USA offensives:

“Three successive strategies of Atlantic unity .. corresponded to the different offensives periods of American capitalism. The first was Roosevelt’s concept of Atlantic universalism, which derived its specific Atlantic dimension from the American focus of World War Two and the key position of the British Empire in the world America wanted to expand into. The second version of Atlantic unity was the Atlantic Union idea, which surfaced at the time of the Marshall Plan and combined a status quo approach to control of the periphery with a high-pitched Cold War unity against the Soviet Union. The third Atlantic strategy was the Atlantic partnership scheme promulgated by President Kennedy in an attempt to restore unity of purpose to an Atlantic world in which the establishment of a restrictive EEC demonstrated the degree to which Western European capital had emancipated itself from American tutelage and was intent on carving out a sphere-of-interest of its own.”

(Van Der Pijl, K; Ibid; p.xxxiv; London 2012).

The so-called Atlanticists (the comprador bourgeoisie for the USA – a term usually reserved for countries of colonial or semi-colonial status) were largely representatives of finance capital. These were interested in the freedom of shipping capital reserves freely across international boundaries. They are also termed “liberal internationalists” by van der Pijil.

In contrast the “Euro-nationalists” represented industrial capital – and were interested in ensuring reinvestment in and redeveloping a European heavy industrial base. They supported single ‘sovereign’ or independent, state funding of heavy industry and can be termed state monopolists .

As an internal intra-European battle between these two segments of capital occurred, the USA imperialists initially favoured steps to a pan-European supra-national state. Of course this single supra-national state, has still not been achieved. However between 1945-1998 – there were periods where the European Euronationalist capitalist powers waxed and waned, as USA imperialism counter attacked.

Regardless of whose interests it served, the overall tendency was towards a move for unity of the smaller European countries. Only later was directed against the USA hegemony. The class character of the European coalescing would shift form a pro-USA vassal coalition to an anti-USA coalition. Ultimately this would end up being dominated by the German bourgeoisie.

Through this period, the fading British imperialists continued to rely and favour USA imperialism. In fact it was actually Ernest Bevin, British Foreign Secretary who first proposed the NATO alliance:

“The actual initiative to found a North Atlantic military alliance was taken by Ernest Bevin in 1948 following a series of defence treaties between Western European states… Bevin .. in early 1948, urged … formal Atlantic cohesion of a political nature.. to USA Ambassador Lew Douglas.. the treaty establishing the NATO was concluded in April 1949”

(Van Pijl Ibid p. 157).

Early on French imperialism, as represented by General De Gaulle, wished to utilise USA strength to stand against the USA. The early events were summarised as below:

“The war encouraged a proliferation of new schemes for European regional organisation. De Gaulle for instance repeatedly voiced the idea that European unity might be a bulwark against both the Soviet Union and the United States, and comparable arguments were heard in various segments of the German, Italian, and Dutch bourgeoisie Resistances….

Churchill’s proposal for a Council of Europe provides probably the best example of the (Atlanticist) concept of European unity… coupled to Britain’s desire to maintain its special link with the Commonwealth and the United States.. “

(Van Der Pijl, K. Ibid; p26; London 2012).

In contrast:

“The Euronational concept combined a number of state-monopolisitic attributes like a strong emphasis on a “European” economic policy with a distinct rejection of Atlantic unity” ;

(Van Der Pijl, K. Ibid; p26; London 2012).

The first USA steps to infiltrate Europe were actually before the Second World War. In most accounts, Jean Monnet the post-war Finance Minster of France figures prominently:

“Jean Monnet… was perhaps one of the foremost in the European postwar leaders to see the necessity of a coalition of European countries…. As early as 1921 Monnet had advised Eduard Benes: To address the problem of the weakness of Central European economic by establishing a “federation because of the region formed a “natural economic unit.”

(James Laxer. “Inventing Europe”; Toronto, 1991.p. 27).

Later in the Second World War: 


“Writing on behalf of the French Committee of National Liberation, Monnet for the first time advocated the formation of a federation of European states to be established following the conflict..”

(Laxer, Ibid, p. 27).

But Jean Monnet was in reality, a pro-USA comprador. He had spent many years working in banking in the USA and had married a scion of the US ruling classes. Ultimately he saw not a rivalry between the USA and pan-Europe, but a partnership, which later USA President Kennedy was also to espouse (van Pijl p. 29):

“The most important representative of the Atlantic Partnership, or Euramerican concept in France was Jean Monnet. 1962 was Monnet’s year of triumph, in which he thought the partnership of equals between the US and the EEC, by which the Soviet union could be effectively checked, was actually materializing. In Monnet’s view this would entail European military autonomy as well. ‘Equal partnership must also apply to the responsibilities of common defense, it requires amongst other things, the organisation of a European atomic force including Britain and in partnership with the US.”

(Van der Pijl: Ibid; P. 225).

Monnet’s relationship with the USA ruling class representatives of capital was close at even a personal level:

“There is no doubt.. Monnet’s initiatives .. owed much to American encouragement. His decisive advantage was the closeness of his association with the USA political elite.. the Dulles brothers, Acheson, Harriman, McCloy, Ball and Brice and others.. he was to become widely distrusted in his own country because of it..”

(Anderson, Perry. “The New Old World”; London 2009 p.15)

“Monnet’s strength as an architect of integration (i.e. of Europe – ed) did not lie in any particular leverage with European cabinets… but in his direct line to Washington.”

(Anderson, Perry. Ibid; p. 17)

By May 1949, the first concrete post-war steps for uniting Europe into a pro-Atlantic (i.e. pro-USA) bloc led to the Statute of the Council of Europe.

On 9 May 1950, the French Foreign Minister Robert Schuman proposed to integrate the coal and steel industries of Europe. The Schumann Proposal for the European Iron and Steel Community, was designed to form a competitive market in iron and steel, using substantial public sector capital. Britain refused to join at that stage. By 1958, trade in the ECSC in steel had increased by 157% and steel output by 65% (Laxer, p. 38).

In “Alliance Marxist-Leninist” of October 1992, the Schumann Plan was portrayed as an anti-American move; and Jean Monnet as a Euronationalist. Alliance was incorrect in this analysis. (Alliance Marxist-Leninist ALLIANCE (MARXIST-LENINIST (Number 3, October 1992) “Crisis In Capital And Their Solution – Free Trade And Protectionism In Developed Countries” http://ml-review.ca/aml/AllianceIssues/ALLIANCE3ECONOMICS.html

The reality was far more complex. In fact the USA had argued that the Schumann Plan was of use since:

“Secretary of State Acheson in 1951 estimated that the Schumann Plan was useful.. since it would “pull Germany, certainly Western Germany into economic relationship with Europe. It will tie it in and lay a foundation which will ally fears the Germany might come loose and go off on an independent or pro-Russian policy.”

(van Pijl Ibid p. 157) .

The USA imperialists with their European stooges – and even with the Euro-nationalists – at this stage all continued to agree that Europe needed to unite. The vision of many planners of USA strategy, was akin to that of Paul Hoffman – leading member of the Committee headed by Averell Harriman secretary of Commerce – speaking to the Senate Foreign Relations Committee in 1950:

“We know that there is no possibility of Europe becoming the kind of an economy that will make it a great force of strength in the Atlantic community unless we break down the barriers between those 17 political subdivisions with which we are working… so that you have a single market, or something close to it, in which you will have large-scale manufacturing because you have a large market in which to sell it.”

(Van Pijl Ibid p. 197)

Britain and France after Suez, had to accept that in the immediate future, their only role on the world stage would be as a junior partner to USA imperialism. They threw their lot in with the Americans. The USA used their influence with the British to disrupt attempts at a defence force independent of the US.

But as the USA became ever more hegemonic in Europe, De Gaulle and others turned to resist USA incursion. This was forseen by J.V.Stalin:

“Britain and France .. are imperialist countries.. Can it be assumed that they will endlessly tolerate the present situation in which.. Americans are penetrating into the economies of Britain and France and trying to convert them into adjuncts of the USA economy?

…Would it not be truer to say that capitalist Britain and France will be 
compelled in the end to break from the embrace of the USA and enter into conflict with it in order to secure an independent position and of course high profits?”

(J.V. Stalin, “Economic problems of the Socialism in the USSR”; Moscow, 1952. p. 38).

The loosening of the dependency chains on European nations formed by the credit of the USA Marshall Plan would take several interim steps.

By 1957, the Treaty of Rome was signed which established the European Economic Community (EEC). Consistent with its overall European strategy, the formation of the EEC was supported by the USA. In fact:

Eisenhower (said) .. that the Treaty of Rome would be one of the finest days in the history of the free world, perhaps even more so than winning the war”;

(Anderson; Ibid; p. 18).

There was now a dramatic opening of the European market for financial penetration – to take over European industries, as well as their markets:

“The shift from commercial to financial penetration (ie of Europe – by the USA -ed) was confirmed by the formation of the EEC. The Common Market dramatically changed American prospects for expansion in this respect.“

(Van der Pijil; Ibid, p.193)

In reply to De Gaulle, the USA attempted to weaken the development of the future European Union, by using its stooge the weak British imperialists. Thereupon French General De Gaulle later on vetoed the entry of Great Britain into the EEC for precisely this reason.

By the time of Nixon and Kissinger, the situation had shifted. Now the USA perceived the threat in the now built up European Community:

“(they) started to perceive the potential for a rival great power in Western Europe”;

(Anderson Ibid p. 21).

How had things changed so dramatically? The balance of power between the Euronationalists and the pro-US Atlanticists had changed after the rise of the dollar hegemony. To recap, the Bretton Woods Agreement of 1944 to stay on a gold convertibility was simply put aside by the USA. By the 1960s, under USA President Johnson, inflation was created by printing more dollars. This enabled the USA to fund the Vietnam War and its limited social reforms of the so-called ‘Great Society” (Dean & Pringle Ibid p.80; Palmer Ibid p.61). This had dire consequences:

“The net result in the succeeding decades was a scale of Federal domestic budget deficit and increasingly, balance of payments deficit without precedent in US history. At first the deficits and consequential outflow of dollars into the world economy had been regarded as benign.. The deficits initially helped to finance the mutual economic recovery of Americans’ allied (and client) economies. But as the outflow of dollars turned into a might flood, American control over banks grew by leaps and bounds, Between 1970 and 1975 the assets of overseas branches of US banks grew from $47 billion to $166 billion. The over-valued US dollar came to be seen as the means by which European industry was being acquired cheaply by US interests… fears were expressed that Western Europe was being turned into a fiefdom of US multinationals.. By the late 1960s the gap between the US dollar’s internal purchasing power and its international value had widened alarmingly. The Europeans were faced with the choice of either accepting these depreciating dollars (and thus, in effect, of subsidizing the American economy and worldwide military and political commitments) or exploiting America’s Bretton Woods commitment to swap dollars for gold at the fixed prices.”

(Palmer Ibid p. 62).

De Gaulle remarked early on, that this was a USA attack using dollarization of the world economy, and warned that:

“The Americans only used the atom device twice on Asia. … but they use the dollar on Europe every day”

(Cited Palmer, John: “Europe without America? The crisis in Atlantic Relations”; Oxford; 1988; p.62)

Essentially the USA was pursuing a policy of financial export to drive acquisition of European industrial and financial companies. Simultaneously it unwittingly began the financialization driving world inflation – from ‘hot money’. European nationalist leaders of many countries objected. As well as De Gaulle, French President Giscard d’Estaing objected:

“It is rather remarkable that the war in Vietnam, a localized conflict of a very special nature involving a great power and a small power could have such a far reaching effects on world economic equilibrium.. Any other country that was faced with a balance-of-payment deficit of this magnitude would have been obliged to take steps to restore balance whereas the US was not obliged to do so; the method of financing its deficit exempted it from having to restore equilibrium and it was therefore a system which caused considerable inequality in the interplay of monetary power…”

(Hudson, Michael, Global Fracture, the new international Economic Order. New York, 1977; p.31).

In another more serious threat to USA hegemony, the German state had become more pro-independent. Earlier leaders (Konrad Ardenauer Chancellor [1949-1962] and Ludwig Erhard [Chancellor 1963-1965]) of post-war West Germany had been resolutely pro-USA. The attitude of later German leaders can be gauged from a remark made by Chancellor Helmut Schmidt (Chancellor 1974-1982) when he decried:

“The misuse of the dollar as an instrument of US foreign policy.”

(Cited Palmer John: “Europe without America? The crisis in Atlantic Relations”; Oxford; 1988; p. 10)

This reaction against the USA had its counterpart in Britain in the Westland Helicopter crisis, where Defence Minister Michael Hesletine revolted against Mrs Thatcher. He was soon despatched by the stalwart pro-USA Mrs Thatcher. This was pointed out by the Communist League at the time.

The salient point is that the USA fiscal policies prompted the Euronationalists to move towards the European Monetary System (EMS) and before that the Snake. This then became the European Monetary Union (EMU):

“European Community alarm at the misuse of the dollar’s privileged position in the world currency system encouraged the EEC states to distance themselves in monetary policy from the US in the late 1970’s. President Valery Giscard D’Estaing of France led – despite British opposition – to the creation of … the EMS.. the breakup of the dollar-dominated monetary system also marked the end of the earlier Atlantic consensus enshrined in the Bretton Woods Agreement of 1944”;

(Palmer J ibid p. 11).

In Alliance Marxist-Leninist Number 3, 1992, we traced the rise of the European Union and the emerging hegemonic role of the unified single German State – after the disintegration of the Comecon states including former East Germany.

We concluded Alliance 3 by characterising the then inter-imperial rivalries as follows:

The current crisis of capital forces formation of blocs.

The current epoch is one of a disintegration of the power of the USA imperialists and an increase in power of the German and thereby European imperialists and the Japanese imperialists. Each of these competitors strive to create a super trading bloc; within whose borders free trade (or ‘ freer trade’) occurs. Outside of the bloc, protectionism is the policy.

These policies result from the major crisis of over-production that the world is experiencing. The final rupture of the Comecon capitalist block offers the only untapped market; and so the Blocs are trying to extend themselves into the ex-Comecon markets.

In the case of the USA Free Trade Bloc being set up between Mexico, the USA and Canada; the Block is clearly under the domination of the USA. Here there is no effective balance between opposing international imperialism. The differences between the European imperialists do allow for a certain balance; this is not achievable between the USA and Canada; and less so between USA and Mexico.

….. The European Economic Community is more delicately balanced between the competing imperialists. Of the nations within the fold, only Britain (now a junior partner) has significant allegiance to the USA. The others are far more committed to the EEC; even risking domination by Germany.

In the Far East, it is likely that a massive trading bloc between Japan and China is going to make it impossible for many of the Pacific basin nations not to enter an alliance dominated by the Japanese imperialists.

These maneuvers are the first salvoes of the next World War.”

(Alliance 3: Ibid: http://ml-review.ca/aml/AllianceIssues/ALLIANCE3ECONOMICS.html)

We believe that these assessments – overall – remain correct. They are also, consistent with Stalin’s famous prediction that under capitalism competitive wars for markets were inevitable, and that sooner or later – Europe would chafe under USA domination:

“Inevitability of Wars between Capitalist Countries”; Some comrades think that owing to the development of new international conditions since the Second World War, wars between capitalist countries have ceased to be inevitable. These comrades are mistaken. Outwardly everything would seem to be going well; the USA has put Western Europe, Japan, and other capitalist countries on rations; Germany (Western), Britain, France, Italy & Japan have fallen into the clutches of the USA and are meekly obeying its commands. But it would be mistaken to think that things can continue to “go well” for ” all eternity”, that these countries will tolerate the domination and oppression of the United States endlessly, that they will not endeavor to tear loose from American bondage and take the part of independent development.”

(Stalin; ‘Economic Problems of the USSR”: Peking; p.33).

Now in 2015, as we update the picture in 2015, the basic rhythm of inter-imperialist struggle has not changed dramatically but become even more intense. The final crumbling of the ex-Comecon countries postponed the ‘final reckoning’ of the European and USA rivalries. And yet rivalries have sharpened with the entry of China into the leading echelons of imperialist rivalry. In this period:

i) Germany has benefited the most and now become the leading (if not yet quite hegemonic) partner of the imperialist coalition of the EU.

ii) The EU has expanded enormously to now include the so-called Southern fringe (including Greece, Portugal, Spain, with continuing discussion with Turkey); and the ex-Comecon countries.

iii) There has been a renewed attempt of the Russian bourgeoisie led by Putin to recreate its own imperial zone.

iv) China has dramatically enhanced its imperial might and come to near logger-heads with the neighboring Pacific Oceanic states – in particular those nations most tied to the USA (Japan, Philippines).

v) The most advanced of the former under-developed colonised world (Brazil, India) have been organized by the renewed Chinese imperialists into conglomerates that pose increasing challenges to both the USA and EU hegemony. Namely BRIC (Brazil, Russia, India, China) and the newly created International Bank.

The still unresolved contradiction at the heart of the European Community

Of course the EU has a major problem: Even now, it is not a unitary state with unitary fiscal policies. Although the leaders of the EU wish to concentrate power against the USA, they are unwilling to cede complete national autonomy to a Supra-European force – (namely the European Union based at Brussels). However while EU leaders can attempt to combine the monetary resources, unless there is a complete political unity – there are centrifugal forces they cannot control. For this would require to be overcome, a single unitary Bank.

This is far from a new realisation. The insoluble contradiction was pointed out by astute economists long ago such as Lord Nicholas Kaldor (1908-1986). Kaldor was a Keynesian, who polemicized against both Milton Friedman and Mrs. Thatcher’s worship of monetarism. He cited Keynes to say:

“Keynes (a pamphlet far ahead of the times and ahead of much of his own future writing on the subject), in which he branded monetary policy as ‘simply a campaign against the standard of life of the working classes’, operating through the ‘deliberate intensification of unemployment . . . by using the weapon of economic necessity against individuals and against particular industries — a policy which the country would never permit if it knew what was being done’.

(J. M. Keynes, The Economic Consequences of Mr. Churchill (London, 1925), reprinted in the Collected Writings of John Maynard Keynes Vol. IX (London, 1972), pp. 207-30; Cited Foreword Second edition; Kaldor, N: The Scourge of Monetarism”; Oxford 1986. https://www.questia.com/read/13674203/the-scourge-of-monetarism

In 1971, Kaldor pointed out that in the proposed Eurozone, there would be a tendency for some countries “to acquire increasing (and unwanted surpluses) in their trade with other members, whilst others face increasing deficits”. This could only be overcome he foresaw, by fuller political union:

“The events of the last few years … have demonstrated that the Community is not viable with its present degree of economic integration. The system presupposes full currency convertibility and fixed exchange rates among the members, whilst leaving monetary and fiscal policy to the discretion of the individual member countries. Under this system, as events have shown, some countries will tend to acquire increasing (and unwanted surpluses) in their trade with other members, whist others face increasing deficits. This has two unwelcome effects. It transmits inflationary pressures emanating from some members to other members; and it causes the surplus countries to provide automatic finance on an increasing scale to the deficit countries.

Since exchange-rate adjustments or “floating rates” between members are held to be incompatible with the basic aim of economic integration (and are incompatible also with the present system of common agricultural prices fixed in international units) the governments of the Six, at their Summit meeting in The Hague in December 1969, agreed in principle to the creation of a full economic and monetary union, and appointed a high-level committee (the so-called “Werner Committee”) to work out a concrete programme of action..”

(Nicholas Kaldor On European Political Union Cited by Ramanan, 6 November 2012; in The Case For Concerted Action Post-Keynesian Ideas For A Crisis That Conventional Remedies Cannot Resolve; at http://www.concertedaction.com/2012/11/06/nicholas-kaldor-on-european-political-union/)

Those planning a momentary union explicitly recognised that in the ultimate “third phase” the “individual central beings (being) would be abolished altogether, or reduced to the state of the old colonial “Currency Boards”:

“The realisation of economic and monetary union, as recommended in the Werner Report, involves three kinds of measures, each introduced in stages: monetary union, tax harmonisation, and central community control over national budgets.  It envisages a three-stage programme, with each stage lasting about three years, so that the whole plan is designed to be brought into operation by 1978-80.

In the monetary field in the first stage the interest and credit policy of each central bank is increasingly brought under common Community surveillance and permitted margins of variations between exchange rates are reduced or eliminated. In the second stage exchange rates are made immutable and “autonomous parity adjustments” are totally excluded. In the third stage the individual central banks are abolished altogether, or reduced to the status of the old colonial “Currency Boards” without any credit creating power.”

(Nicholas Kaldor Ibid)

Other political issues would also pose problems including the harmonisation of tax differences and differing budget polices requiring “fiscal standardisation” between countries:

“In the field of tax harmonisation it is envisaged that each country’s system should be increasingly aligned to that of other countries, and that there should be “fiscal standardisation” to permit the complete abolition of fiscal frontiers, which means not only identical forms but also identical rates of taxation, particularly in regard to the value added tax and excise duties.

In the field of budgetary control the Werner Report says “the essential elements of the whole of the public budgets, and in particular variations in their volume, the size of balances and the methods of financing or utilizing them, will be decided at the Community level.”

(Nicholas Kaldor Ibid)

However, ominously for the proponents of a single currency – responsibilities to have individual country Budgets and tax polices set centrally – were not envisaged as necessary. This was according to Kaldor, “the basic contradiction”:

“What is not envisaged is that the main responsibility for public expenditure and taxation should be transferred from the national Governments to the Community. Each member will continue to be responsible for raising the revenue for its own expenditure (apart from the special taxes which are paid to finance the Community’s own budget but which will remain a relatively small proportion of total public expenditure and mainly serve the purposes of the Agriculture Fund and other development aid).

And herein lies the basic contradiction of the whole plan.”

(Nicholas Kaldor Ibid)

Kaldor argued this had to have harsh implications for inequity in the well-being of the peoples of different countries. It was clear that unless “harmonisation” of country provision of benefits paid through by taxation – was ensured, there would be rising inequity:

“For the Community also envisages that the scale of provision of public services (such as the social services) should be “harmonised” – i.e., that each country should provide such benefits on the same scale as the others and be responsible for financing them by taxation raised from its own citizens. This clearly cannot be done with equal rates of taxation unless all Community members are equally prosperous and increase their prosperity at the same rate as the other members. Otherwise the taxation of the less prosperous and/or the slower-growing countries is bound to be higher (or rise faster) than that of the more prosperous (or faster-growing) areas.”

(Nicholas Kaldor Ibid)

In turn, this rising inequity in the poorer countries would likely need to be countered by spiraling taxes, in order to maintain a “fiscal balance” with the remained of “the Community.” But this would then become the source of “vicious circle” as these higher taxes would lead to a further compromise of the less “competitive” countries. Worsening of the inter-country inequity would need for distributing relief funds from the center:

“The Community will control each member country’s fiscal balance – i.e., it will ensure that each country will raise enough in taxation to prevent it from getting into imbalance with other members on account of its fiscal deficit. To ensure this the taxes in the slow growing areas are bound to be increased faster; this in itself will generate a vicious circle, since with rising taxation they become less competitive and fall behind even more, thereby necessitating higher social expenditures (on unemployment benefits, etc.) and more restrictive fiscal policies. A system on these lines would create rapidly growing inequalities between the different countries, and is bound to break down in a relatively short time. …

This is only another way of saying that the objective of a full monetary and economic union is unattainable without a political union; and the latter pre-supposes fiscal integration, and not just fiscal harmonisation. It requires the creation of a Community Government and Parliament which takes over the responsibility for at least the major part of the expenditure now provided by national governments and finances it by taxes raised at uniform rates throughout the Community. With an integrated system of this kind, the prosperous areas automatically subside the poorer areas; and the areas whose exports are declining obtain automatic relief by paying in less, and receiving more, from the central Exchequer. The cumulative tendencies to progress and decline are thus held in check by a “built-in” fiscal stabiliser which makes the “surplus” areas provide automatic fiscal aid to the “deficit” areas.

(Kaldor, Nicholas “On European Political Union Ibid)

Kaldor concluded that the Community’s present plan was like the house which “divided against itself cannot stand” and that “it was “dangerous error: to have a “full economic and monetary union” preceding a political union”:

“The Community’s present plan on the other hand is like the house which “divided against itself cannot stand.” Monetary union and Community control over budgets will prevent a member country from pursuing full employment policies on its own – from taking steps to offset any sharp decline in the level of its production and employment, but without the benefit of a strong Community government which would shield its inhabitants from its worst consequences.

Some day the nations of Europe may be ready to merge their national identities and create a new European Union – the United States of Europe. If and when they do, a European Government will take over all the functions which the Federal government now provides in the U.S., or in Canada or Australia. This will involve the creation of a “full economic and monetary union”. But it is a dangerous error to believe that monetary and economic union can precede a political union or that it will act (in the words of the Werner report) “as a leaven for the evolvement of a political union which in the long run it will in any case be unable to do without”. For if the creation of a monetary union and Community control over national budgets generates pressures which lead to a breakdown of the whole system it will prevent the development of a political union, not promote it.”

(Nicholas Kaldor Ibid)

We believe that the current crisis in Greece, fully confirms these warning. However Kaldor being a representative of the ruling capitalist class in Britain, could hardly envisage a political solution of benefit to the goals of achieving a socialist Europe. It is in this backdrop, that the Greek Crisis plays out.

6. The Greek Economic Crisis 2009-2015 – How did it get to this stage?

Throughout the turn towards Europe, the ruling class of Greece faced the hostility of the Greek working class and the rural small peasants. Nonetheless the ruling class allied itself firmly to the European imperialist bloc of the European Union (Previously the EEC). To recap: the Greek state opened the doors to foreign debt. From the viewpoint of a small capitalist class, who were not about to enter a left policy – there was no alternative. In doing so they also built a bureaucratic state machine, packed with protégés of the states. In addition the overwhelming strength of petit-bourgeois production – combined to allow a nepotistic and corrupt state. In this period, the Greek capitalist economy did not do very well.

In reality profits for the leading elite of the Greek capitalist class were immense. While the international financial capitalists are a giant leech on the back of the people, the main enemy of working people, remains the Greek capitalist class.

A common complaint from European bankers is that the Greek people are lazy and inherently corrupt. This propaganda has found resonance in otherwise progressive and people – who are themselves hard-pressed by capital. It is therefore important to refute the slander on “the lazy Greek people” – and attach the charge of laziness and parasitism to where it belongs – to the ruling capitalist class of Greece. The propaganda often cites the “lax tax laws” and the ‘pampered pension clauses’. Let us examine these aspects first.

i) Tax and Pensions in Greece

The capitalist class structured the tax system to its advantage, and also enabled the petit-bourgeois:

“Greek taxation is a mess (there are six different bands and the wealthiest band of shipping is often referred to as a “tax-free zone”) and over 133 separate pension funds.” Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html

“Data from one of Greece’s ten largest banks, (allowed) economists Nikolaos Artavanis, Adair Morse and Margarita Tsoutsoura..to (estimate lost tax revenue)…. The economists’ conservatively estimate that in 2009 some €28 billion in income went unreported. Taxed at 40%, that equates to €11.2 billion — nearly a third of Greece’s budget deficit.
Why hasn’t Greece done more to stop tax evasion? The economists were also able to identify the top tax-evading occupations — doctors and engineers ranked highest — and found they were heavily represented in Parliament”.

“Greeks Hide Tens of Billions From Tax Man”; Wall St Journal 9 July 2012.

http://blogs.wsj.com/economics/2012/07/09/greeks-hide-tens-of-billions-from-tax-man/?mod=WSJBlog&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Feconomics%2Ffeed+%28WSJ.com%3A+Real+Time+Economics+Blog%29

The scandal of refusal to take action on the “Lagarde List”, makes the responsibility of the Greek ruling class for the “tax imbroglio” even more clear:

“The Greek government has not completed an investigation of a list of 1,991 persons purported to hold accounts with Swiss bank HSBC that it received in 2010 from former French finance minister Christine Lagarde. Initially, officials claimed at various times to have lost or misplaced the information. On 29 October 2012 the government changed its position saying it would not use stolen information to prosecute suspected offenders. Instead, Greek authorities arrested Kostas Vaxevanis, journalist and editor of the weekly magazine Hot Doc, who published the “Lagarde list.”

The list includes an advisor to former Greek prime minister Antonis Samaras, as well as a former minister and a member of Samaras’ New Democracy political party. The list also contains the names of officials in the finance ministry.
Mr. Vaxevanis said he thought the government had not acted on the list because it included friends of ministers, businessmen and powerful publishers.

(https://en.wikipedia.org/wiki/Tax_evasion_and_corruption_in_Greece)

ii) Pensions

First if examined by unadjusted numbers it does appear that the Greek pension system is the most expensive in the OECD countries. We follow the Wall Street Journal analysis of February 2015 (Dalton, Matthew: “Greece’s Pension System Isn’t That Generous After All”; February 27 2015; http://blogs.wsj.com/brussels/2015/02/27/greeces-pension-system-isnt-that-generous-after-all/):

Graphs 1-3 on Pensions In Greece
“First, how much does Greece spend as percentage of GDP on pensions? The data from Eurostat looks like this as of 2012, with Greece expenditure easily highest in the eurozone as a percentage of GDP:

Greece2

However – the Wall Street Journal goes on to break this down, first as a percent of GDP and then by the proportion of pensioners over the age of 65 years:

“But part of that is due to the collapse in GDP suffered by Greece during the crisis… look at pension expenditure as a percentage of potential GDP, the level of economic output were eurozone economies running at full capacity:

Greece3

“Greece is still near the top, though it’s not so far from the eurozone average. Moreover, Greece’s high spending is largely the result of bad demographics: 20% of Greeks are over age 65, one of the highest percentages in the eurozone. What if instead you attempt to adjust for that by looking at pension spending per person over 65 (graph below). Adjusting for the fact that Greece has a lot of older people, its pension spending is below the eurozone average.”

Greece4

And finally a large proportion of the population are pensioners over 65 and many households depend on the pension:

“First, demographics. About 20.5% of Greeks are over 65 – behind only Italy and Germany in the EU when it comes to an ageing population. And with the country’s youth unemployment rate still above 50%, its young people are not going to be able to pay for their grandparents pensions any time soon.

Second, Greek society has a dependency on pensioners. One in two households rely on pensions to make ends meet and the country has an old-age dependancy ratio above 30%, which means that for every 100 people of working age in Greece there are 30 people aged 65 or over.

Third, Greek pensions aren’t so generous. About 45% of pensioners receive pensions below what is considered the poverty limit of €665 per month.
Looking at the actual expenditure on beneficiaries, Greece’s figures don’t stand out as exceptional and are instead on par with the EU average.”

(Nardelli, Alberto: “ Unsustainable futures? The Greek pensions dilemma explained“; Guardian, 15 June 2015; at http://www.theguardian.com/business/2015/jun/15/unsustainable-futures-greece-pensions-dilemma-explained-financial-crisis-default-eurozone)

There is no doubt a large financial burden form the pension schemes – but they provide at an individual level a very modest income:

“What makes the country’s pension system unsustainable is not the specific size of each individual pension, but the overall cost of a grossly inefficient and badly funded system (yes, mainly due to of decades of endemic tax evasion that means as much tax revenue slips through Athens’ fingers as it collects). According to analysis by Macropolis, the average pension in Greece is roughly €700 per month, while the supplementary one is €169.
The same analysis also shows that nearly 90% (€2.07bn) of the total monthly expenditure (€2.35bn) on pensions in March went towards the main pension.
It also reveals that only 0.6% of supplementary pensions were above €500 a month.
For 60% of pensioners the total gross monthly intake is below €800. In addition, many retirees in Greece have already seen their pensions cut. Some by a third, others by nearly 50%.

(Nardelli,; Guardian, 15 June 2015; Ibid)

Moreover, although cutting them might shave off some debt – not only is this unable to repair the basic financial problem of a dependent economy:

“In 2012, pension funds, which were obliged under a law introduced in 1950 by the then king of Greece, Paul I, to keep a minimum of 77% of their assets in government bonds, took an €8.3bn hit following the restructuring of sovereign debt.
Nearly a third of what pension funds have lost since then is due to a fall in contributions on the back of surging unemployment. The unemployment rate is still painfully high (26.6%, while in 2009 it was 9.5%), and nearly eight out of 10 of the country’s jobless have been out of work for 12 months or more.
Any saving brought about by simply purging early retirees’ benefits, cutting supplementary pensions horizontally across the board, or revenue raised by squeezing a drastically depleted pool of taxpayers, would in the short-term allow Greece to unlock the €7bn tranche of bailout funds it needs to carry on servicing its debt (and not default).
However, it would do little to solve the underlying challenges in the longer term.”

(Nardelli,; Guardian, 15 June 2015; Ibid)

Debt and printing money drive Greek Inflation

As discussed in prior sections, the ruling class used inflationary funding to enable it to fool and quieten the working classes. The scale of this is shown below.

“Greece has had a tricky time with its finances. In the 1990s it consistently ran significant budget deficits while using the Drachma. As a result of this economic mismanagement it joined the Euro in 2001, rather than 1999 like many other EU nations.” (Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html)

The following Graph 4, from the ‘Michael Roberts Blog,” tracks the inflation to the deflation tipping point, after the debt crisis became evident:

Greece5

(Roberts M; ‘Greece Cannot Escape”; 2nd Nov 2014: https://thenextrecession.wordpress.com/2014/02/11/greece-cannot-escape/)

However, once it was in the Eurozone, Greece’s government could no longer so easily use inflationary economics to easily boost living standards, as it was bound by the Eurozone and the single currency.

The alternative of devaluing its currency to boost its exports was also not possible. This left only loans. Since it was now the era of financial ‘hot money’ and rampant money-speculation had become standard, this was easy at first, and the inflation graph shows that even the loan-injection money fueled a degree of inflation. But the spigot was soon to be turned off with the Wall Street crash:

“Shortly after joining the single currency, Greece enjoyed a period of growth (2001-2007). However, economist and analysts have retrospectively labeled this boom as “unsustainable,” pointing out that Greece (very broadly speaking) profited off the cheap loans available from the EU. This house of cards came tumbling down with the financial crash of 2008. Like many other countries in the EU Greece was seriously affected, but it was unable to climb out of the hole as it had in the past by printing more currency (thus boosting the economy) as the Euro was controlled by the European Central Bank (ECB). Unemployment spiraled to 28 per cent.”

(Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html)

Greece’s relationship to the EU was as a dependent colony to the leading capitalist countries of the EU. These were of course Germany and also France.
International agencies progressively lent Greek governments large amounts of money. Consequently, Greece progressively developed an external debt of gigantic proportions as seen below in the brown/dark red line (Graph 5):

Greece6

What is the nature of these debt burdens that the Greek government faces?
The German locomotive pushing the EU economy – needed markets. The “under-developed” Southern perimeter of the EU was one of the natural “new” markets:

“Economist Paul Krugman wrote in February 2012:

“What we’re basically looking at…is a balance of payments problem, in which capital flooded south after the creation of the euro, leading to overvaluation in southern Europe.”

He continued in June 2015:

“In truth, this has never been a fiscal crisis at its root; it has always been a balance of payments crisis that manifests itself in part in budget problems, which have then been pushed onto the center of the stage by ideology.”

The translation of trade deficits to budget deficits works through sectoral balances. Greece ran current account (trade) deficits averaging 9.1% GDP from 2000–2011. By definition, a trade deficit requires capital inflow (mainly borrowing) to fund; this is referred to as a capital surplus or foreign financial surplus. This can drive higher levels of government budget deficits, if the private sector maintains relatively even amounts of savings and investment, as the three financial sectors (foreign, government, and private) by definition must balance to zero.
While Greece was running a large foreign financial surplus, it funded this by running a large budget deficit. As the inflow of money stopped during the crisis, reducing the foreign financial surplus, Greece was forced to reduce its budget deficit substantially. Countries facing such a sudden reversal in capital flows typically devalue their currencies to resume the inflow of capital; however, Greece cannot do this, and has suffered significant income (GDP) reduction, another form of devaluation.”

(https://en.wikipedia.org/wiki/Greek_government-debt_crisis#/media/File:HellenicOeconomy(inCurrentEuros).png)

Lord Kaldor’s warnings about this developing were discussed above.

Who owns this debt?

Graph 6: Current account imbalances in the European Union (1997–2014)

The graph below (from Wikipedia at: https://en.wikipedia.org/wiki/File:Current_account_imbalances_EN_(3D).svg)
shows that one of the major owners is Germany. In more detail, the ‘Economist Online” of October 2011 described the major ownership of the Greek debt. The main institutions owning the Greek debt are the IMF, the European Central Bank (ECB) and various European governments:

“Greece has total debts of €346.4bn. About a third of this debt is in public hands (34.8% is attributable to the IMF, ECB and European governments), roughly another third is in Greek hands (28.8%, essentially for banks) with the remainder (36.4%) held by non-Greek private investors.
(http://economistonline.muogao.com/2011/10/who-owns-greek-debt.html)

Greece7

And the New York Times Business news cites similar data:

“Almost two-thirds of Greece’s debt, about 200 billion euros, is owed to the eurozone bailout fund or other eurozone countries. Greece does not have to make any payments on that debt until 2023”. (Editor: Graph 7: below graphically displays the ownership of the debt.)

Greece8

Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

During this period, Greece’s finances were monitored by external agencies, largely those who had loaned monies to Greece. These were the International Monetary Fund (IMF), the European Community (EU) and the European Central Bank (ECB). These formed the so-called Troika. The Troika was to become hated by the Greek peoples as they plunged Greece into major social chaos and forced the living standards of the Greek people down.

As the New York Times comments, in many ways the “crisis” can be considered as a manufactured one as only a portion of debt is coming due in the short term:

“The International Monetary Fund has proposed extending the grace period until mid-century. So while Greece’s total debt is big—as much as double the country’s annual economic output—it might not matter much if the government did not need to make payments for decades to come. By the time the money came due, the Greek economy could have grown enough that the sum no longer seemed daunting.
In the short term, though, Greece has a problem making payments due on loans from the International Monetary Fund and on bonds held by the European Central Bank. Those obligations amount to more than 24 billion euros through the middle of 2018, and it is unlikely that either institution would agree to long delays in repayment.”
Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Two additional problems have conspired to make the “original sin” of debt – of even more enormous consequence.
Firstly, quite early on during this crisis, it was clear to the Troika lenders that the Greek government was in trouble in repaying any significant fraction of this debt. However this was ignored. In fact the IMF – despite its own rules and despite the worries about “default” – continued to fuel the fire of debt by giving more loans.

Then secondly, to worsen matters, the Greek government falsified data about the extent of its debt, and was helped by the greed of USA banking capital.

As early as 2004, in its negotiations with the EU, the ruling class of Greece falsified the degree of its debt. Goldman Sachs – the giant stockbroker and trader bank of Wall Street, aided the Greek government in doing this:

“In 2001, Greece was looking for ways to disguise its mounting financial troubles. The Maastricht Treaty required all Eurozone member states to show improvement in their public finances, but Greece was heading in the wrong direction. Then Goldman Sachs came to the rescue, arranging a secret loan of 2.8 billion euros for Greece, disguised as an off-the-books “cross-currency swap”—a complicated transaction in which Greece’s foreign-currency debt was converted into a domestic-currency obligation using a fictitious market exchange rate.

As a result, about 2 percent of Greece’s debt magically disappeared from its national accounts. Christoforos Sardelis, then head of Greece’s Public Debt Management Agency, later described the deal to Bloomberg Business as “a very sexy story between two sinners.” For its services, Goldman received a whopping 600 million euros ($793 million), according to Spyros Papanicolaou, who took over from Sardelis in 2005. That came to about 12 percent of Goldman’s revenue from its giant trading and principal-investments unit in 2001—which posted record sales that year. The unit was run by Blankfein.

Then the deal turned sour. After the 9/11 attacks, bond yields plunged, resulting in a big loss for Greece because of the formula Goldman had used to compute the country’s debt repayments under the swap. By 2005, Greece owed almost double what it had put into the deal, pushing its off-the-books debt from 2.8 billion euros to 5.1 billion. In 2005, the deal was restructured and that 5.1 billion euros in debt locked in. Perhaps not incidentally, Mario Draghi, now head of the European Central Bank and a major player in the current Greek drama, was then managing director of Goldman’s international division.”

(Robert B. Reich ‘How Goldman Sachs Profited From the Greek Debt Crisis”; The Nation16th July 2015; http://www.thenation.com/article/goldmans-greek-gambit/)

Such was the pervasive greed, that of course such ‘creative’ financing’ was standard, as explained by Robert Reich:

“Greece wasn’t the only sinner. Until 2008, European Union accounting rules allowed member nations to manage their debt with so-called off-market rates in swaps, pushed by Goldman and other Wall Street banks. In the late 1990s, J.P.Morgan enabled Italy to hide its debt by swapping currency at a favorable exchange rate, thereby committing Italy to future payments that didn’t appear on its national accounts as future liabilities. But Greece was in the worst shape, and Goldman was the biggest enabler. Undoubtedly, Greece suffers from years of corruption and tax avoidance by its wealthy. But Goldman wasn’t an innocent bystander: It padded its profits by leveraging Greece to the hilt—along with much of the rest of the global economy. Other Wall Street banks did the same. When the bubble burst, all that leveraging pulled the world economy to its knees.”

(Robert B. Reich ‘How Goldman Sachs Profited From the Greek Debt Crisis”; The Nation16th July 2015; http://www.thenation.com/article/goldmans-greek-gambit/)

Of course such greed driven lying enabled the Greek Government to gain more loans. This was of itself a problem since the country was developing intractable recession.

The Crisis heats up and the infamous Troika Memorandum

By 2009, significant fears that Greece would default on its loans prompted alarm. The Troika made moves to yet another loan – this time of $110 billion – but only if there were significant “austerity measures.” Of course this was intended to be an “austerity” for the working classes and not for the ruling classes:

“From late 2009, fears of a sovereign debt crisis developed among investors concerning Greece’s ability to meet its debt obligations due to strong increase in government debt levels. This led to a crisis of confidence, indicated by a widening of bond yield spreads and risk insurance on credit default swaps compared to other countries, most importantly Germany. Downgrading of Greek government debt to junk bonds created alarm in financial markets.

“On 2 May 2010, the Eurozone countries and the International Monetary Fund agreed on a €110 billion loan for Greece, conditional on the implementation of harsh austerity measures. In October 2011, Eurozone leaders also agreed on a proposal to write off 50% of Greek debt owed to private creditors, increasing the EFSF to about €1 trillion and requiring European banks to achieve 9% capitalization to reduce the risk of contagion to other countries. These austerity measures have proved extremely unpopular with the Greek public, precipitating demonstrations and civil unrest.”

(https://en.wikipedia.org/wiki/Greek_government-debt_crisis#/media/File:HellenicOeconomy(inCurrentEuros).png)

It was the collapse of the international financial and banking industries from the USA sub-prime crisis which rapidly became an international financial crisis, that mushroomed the Greek situation into a crisis. Greece had no choice but to reveal a truer picture of its deficit financing to the world’s creditors to seek more credit:

“Greece became the epicenter of Europe’s debt crisis after Wall Street imploded in 2008. With global financial markets still reeling, Greece announced in October 2009 that it had been understating its deficit figures for years, raising alarms about the soundness of Greek finances. Suddenly, Greece was shut out from borrowing in the financial markets. By the spring of 2010, it was veering toward bankruptcy, which threatened to set off a new financial crisis.”

“Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Up to around 2011, the loan monies in Greece continued to drive an inflation.
But then a sharp deflation began, as the Troika turned the screw on Greece. The Troika insisted on marked cuts in the living standards of the Greek people the working lass and peasantry. Not the standard of the ruling class of course who has moved its savings out of reach of the Greek state or the Troika. The Troika’s conditions are noted here:

“The so-called troika — the International Monetary Fund, the European Central Bank and the European Commission — issued the first of two international bailouts for Greece, which would eventually total more than 240 billion euros, or about $264 billion at today’s exchange rates. The bailouts came with conditions. Lenders imposed harsh austerity terms, requiring deep budget cuts and steep tax increases. They also required Greece to overhaul its economy by streamlining the government, ending tax evasion and making Greece an easier place to do business.”

“Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Of course the Greek capitalists complied, and drove down and depressed the wage rates of the Greek people:

“It’s true that the crushing of the living standards and wage earnings of Greek households is making Greek industry more ‘competitive’ – labour costs per unit of (falling) production have dropped 30% since 2010 (See Graph 8 below).

Greece9

((Roberts M; ‘Greece Cannot Escape”; 2nd Nov 2014: https://thenextrecession.wordpress.com/2014/02/11/greece-cannot-escape/)

Again – the burden of ‘austerity’ – was laid only on the working class of Greece:

“When Greece did cut some of its spending, the EU and ECB asked for a reduction in wages rather than a cut in spending. So – for example – while the military budget remains intact, soldiers have seen their wages fall by 40 per cent. Their experience is replicated across other public sector fields – notably in nurses and doctors”. Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html

An external – German – research agency found that indeed, it was the poor that had suffered disproportionate cuts as compared to the rich:

“The poorest households in the debt-ridden country lost nearly 86% of their income, while the richest lost only 17-20%.  The tax burden on the poor increased by 337% while the burden on upper-income classes increased by only 9% This is the result of a study that has analyzed 260.000 tax and income data from the years 2008 – 2012.
– The nominal gross income of Greek households decreased by almost a quarter in only four years.
– The wages cuts caused nearly half of the decline.
– The net income fell further by almost 9 percent, because the tax burden was significantly increased
–  While all social classes suffered income losses due to cuts, tax increases and the economic crisis, particularly strongly affected were households of low- and middle-income. This was due to sharp increase in unemployment and tax increases, that were partially regressive.
– The total number of employees in the private sector suffered significantly greater loss of income, and they were more likely to be unemployed than those employed in the public sector.
-From 2009 to 2013 wages and salaries in the private sector declined in several stages at around 19 percent. Among other things, because the minimum wage was lowered and collective bargaining structures were weakened. Employees in the public sector lost around a quarter of their income.

Unemployment & Early Retirement
Unemployment surged from 7.3% in the Q2 2008 to 26.6% in the Q2 2014. among youth aged 15-24, unemployment had an average of 44%.
Early retirement in the Private Sector increased by 14%.
Early retirement in the Public Sector* increased by 48%
The researchers see here a clear link to the austerity policy, that’s is the Greek government managed to fulfill the Troika requirements for smaller public sector. However, this trend caused a burden to the social security funds.
* Much to KTG’s knowledge public servants with 25 years in the public administration rushed to early retirement in 2010 out of fear of further cuts in their wages and consequently to their pension rights.

Taxes
Taxes were greatly increased, but they had a regressive effect.
Since beginning of the austerity, direct taxes increased by nearly 53%, while indirect taxes increased by 22 percent.
The taxation policy has indeed contributed significantly to the consolidation of the public budget, but by doing so the social imbalance was magnified.

Little has been done against tax avoidance and tax evasion, however, the tax base was actually extended “downwards” with the effect that households with low-income and assets were strongly burdened.
Particularly poorer households paid disproportionately more in taxes and the tax burden to lower-income rose by 337%. In comparison, the tax burden to upper-income households rose by only 9%.
In absolute euro amounts, the annual tax burden of many poorer households increased “only” by a few hundred euros. However, with regards to the rapidly declining of incomes and rampant unemployment, this social class was over-burdened with taxes.

The Poor suffered more
On average, the annual income of Greek households before taxes fell from €23,100 euros in 2008 to just below €17,900 euros in 2012. This represents a loss of nearly 23 percent.
The losses were significantly different to each income class with the poorest households to have suffered the biggest losses.
Almost one in three Greek household had to make it through 2012 with an annual income below €7,000”.
(Research of the “German Institute for Macroeconomic Research (IMK) affiliated with the Hans Böckler Foundation”; given blog ‘Keep Talking Greece’; by 20 March 2015; at http://www.keeptalkinggreece.com/2015/03/20/shocking-austerity-greeces-poor-lost-86-of-income-but-rich-only-17-20/

Both the Greek ruling class and the Troika saw that this squeeze on the poor and working class, was creating such a social upheaval, as to be potentially pre-revolutionary. Yet they were caught, since the alternatives were dismal for the international capitalist. Even the IMF’s own rules were flouted. In 2010 the situation was as follows in Michael Roberts telling:

“The irony is that while austerity in Greece continues to be applied mercilessly, the IMF recently issued a report that concluded that the Troika’s approach was mistaken in imposing severe fiscal retrenchment back in May 2010 when Greece could no longer finance its spending through borrowing in bond markets (http://www.imf.org/external/pubs/ft/scr/2013/cr13156.pdf).

Back then, the Troika had three options. First, it could have provided a massive fiscal transfer to the Greek government to tide it over without demanding massive cuts in public spending that eventually led to a fall in Greek real GDP of nearly 20%, unemployment of over 25% and government debt to GDP of 170%, with economic depression likely to continue out to the end of the decade.  Or it could have allowed the Greek government to ‘default’ on its debts to the banks, pension funds and hedge funds and negotiate an ‘orderly haircut’ on those debts.  But the Troika did neither and opted instead for a third way.  It insisted that in return for bailout funds the Greek government meet its obligations in full to all its creditors by switching all its available revenues to paying its debts at the expense of jobs, health, education and other public services.

The Troika insisted on this because it reckoned 1) that austerity would be shortlived and economic growth would quickly return and 2) if the banks and others took a huge hit on their balance sheets from a Greek default it would put European banks in danger of going bust (Greek banks first).  There could be ‘contagion’ if other distressed Eurozone governments also opted not to pay their debts, using Greece as the precedent.  Of course, economic growth has not returned and despite huge efforts on the part of Greek governments to meet fiscal targets through unprecedented austerity, government debt has increased rather than fallen and the economy has nosedived.

Eventually, the Troika had to agree that the private sector took a ‘haircut’ after all, massaged as it was with cash sweeteners and new bonds with high yields.  Now the IMF in its report admits that austerity was too severe and debt ‘restructuring’ should have happened from the beginning.  The IMF, now in its semi-Keynesian mode, tries to put the blame for the failure to do this on the EU leaders and the ECB, which has not made the latter too happy, especially as the current IMF chief, Lagarde was strongly in favour of the austerity plan when she was French finance minister in 2010.

“If Greeks had defaulted back in 2010, that could have led to other defaults and Europe’s banks were in no state to absorb such losses.  As a recent study shows http://www.voxeu.org/article/ez-banking-union-sovereign-virus), German banks were heavily overleveraged back in 2010 and they are not much better even now.  There was no way the German government was going to put German banks in jeopardy and allow the ‘profligate’ Greeks to get a huge handout of German taxpayers money to boot.  No, the Greeks had to pay their debts, just as the Germans had to pay their reparations to the French after 1918, even if it meant Germany was plunged into permanent depression.  Ironically, the Germans did not and have not paid promised billions in reparations to the Greeks after 1945 – something the Greeks are pursuing in negotiations!”

(Michael Roberts Blog: “Greece, the IMF and debt default; 16th June 2013;“https://thenextrecession.wordpress.com/2013/06/16/greece-the-imf-and-debt-default/)

As noted before, this fueling of the debt by new loans, was against even the principles of the International Monetary Fund (IMF), and senior strategists in the IMF warned that the polices of the IMF in regards to Greece were seriously in error, from the year 2010.

As stated above, one underlying reason on insisting that the Greek Government paid its debt fully, was simply the usurer’s wish to ensure that debts owed by Greece to both France and Germany would be honoured. German and French banks had become vulnerable by over-leveraging themselves. (i.e they had loaned so much money that their actual capital holdings were unable to support them if there was a “run” on their deposits). The Eurozone banks had become very vulnerable:

“The Table below shows the degree of ‘domestic leverage’ of the systemically important banks in major Eurozone countries .. in most countries the domestic banking system would not survive a Greek-style ‘haircut’ on public debt. (In March 2012, holders of Greek bonds had to accept a nominal haircut of over 50%, and on a mark-to-market basis the haircut was over 80%. It is apparent that no bank that has a sovereign exposure worth over 100% of its capital would survive such a loss).

Table 4: Domestic sovereign debt leverage (sovereign exposure/capital)

Greece Table

Source: CEPS database. (From Roberts 16 June 2013; “Greece, the IMF and debt default ibid) Michael Roberts Blog: “Greece, the IMF and debt default; 16th June 2013; https://thenextrecession.wordpress.com/2013/06/16/greece-the-imf-and-debt-default/)

Amazingly, the IMF policy remained unchanged – new loans were issued to Greece – at least up till May 2015:

“Greece’s onerous obligations to the IMF, the European Central Bank and European governments can be traced back to April 2010, when they made a fateful mistake. Instead of allowing Greece to default on its insurmountable debts to private creditors, they chose to lend it the money to pay in full.
At the time, many called for immediately restructuring privately held debt, thus imposing losses on the banks and investors who had lent money to Greece. Among them were several members of the IMF’s board and Karl Otto Pohl, a former president of the Bundesbank and a key architect of the euro. The IMF and European authorities responded that restructuring would cause global financial mayhem. As Pohl candidly noted, that was merely a cover for bailing out German and French banks, which had been among the largest enablers of Greek profligacy.

Ultimately, the authorities’ approach merely replaced one problem with another: IMF and official European loans were used to repay private creditors. Thus, despite a belated restructuring in 2012, Greece’s obligations remain unbearable — only now they are owed almost entirely to official creditors.

Five years after the crisis started, government debt has jumped from 130 percent of gross domestic product to almost 180 percent. Meanwhile, a deep economic slump and deflation have severely impaired the government’s ability to repay.
Almost everyone now agrees that pushing Greece to pay its private creditors was a bad idea. The required fiscal austerity was simply too great, causing the economy to collapse. The IMF acknowledged the error in a 2013 report on Greece. In a recent staff paper, the fund said that when a crisis threatens to spread, it should seek a collective global solution rather than forcing the distressed economy to bear the entire burden. The IMF’s chief economist, Olivier Blanchard, has warned that more austerity will crush growth.

Oddly, the IMF’s proposed way forward for Greece remains unchanged: Borrow more money (this time from the European authorities) to repay one group of creditors (the IMF) and stay focused on austerity. The fund’s latest projections assume that the government’s budget surplus (other than interest payments) will reach 4.5 percent of GDP, a level of belt-tightening that few governments have ever sustained for any significant period of time.

Following Germany’s lead, IMF officials have placed their faith in so-called structural reforms — changes in labor and other markets that are supposed to improve the Greek economy’s longer-term growth potential. They should know better. The fund’s latest World Economic Outlook throws cold water on the notion that such reforms will address the Greek debt problem in a reliable and timely manner. The most valuable measures encourage research and development and help spur high-technology sectors. All this is to the good, but such gains are irrelevant for the next five years. The priority must be to prevent Greece from sinking deeper into a debt-deflation spiral. Unfortunately, some reforms will actually accelerate the spiral by weakening demand.

On April 9, Greece repaid 450 million euros ($480 million) to the IMF, and must pay another 2 billion in May and June. The IMF’s managing director, Christine Lagarde, has made clear that delays in repayments will not be tolerated.

“I would, certainly for myself, not support it,” she told Bloomberg Television.”

Ashoka Mody; Bloomberg 81 April 21 2015; The IMF’s Big Greek Mistake; http://www.bloombergview.com/articles/2015-04-21/imf-needs-to-correct-its-big-greek-bailout-mistake

Recall – Lagarde was once the Minister of Finance for France:

Graph number 5 (see above) displays that it is not only Greece in
hock” to Germany, but there are several leading Eurozone states in debt to Germany. In especial note the deficits of France and of Italy.

This is the second reason – at least for German imperialism – on insisting that the Greek Government paid its debt fully.
If the Greeks are allowed to default, what happens to the other loans that are outstanding? It has long been recognised that Germany has been running a huge trade surplus, and it has been under pressure to alleviate this for some time:

“For years, Germany has been running a large current account surplus, meaning that it sells a lot more than it buys. The gap has only grown since the start of the crisis, reaching a new record of 215.3 billion euros ($244 billion) in 2014. Such insufficient German demand weakens world growth, which is why the U.S. Treasury and the International Monetary Fund have long prodded the country to buy more. Even the European Commission has concluded that Germany’s current-account imbalance is “excessive.”

(Ashoka Mody, Bloomberg188 July 17, 2015, ‘Germany, Not Greece, Should Exit the Euro’)

Any lifting of the restrictions upon Greece will lead to repercussions as to what happens to the debts of these other leading countries. It is no doubt, for this reason, that both Italy and France have been trying to ease pressures from Germany, arguing that there must be a debt restructuring.

This fits with the later 2015 U-Turn of Cristine Lagarde and the IMF (Discussed in section 9 below) – who are now at the last moment – urging the German government to reduce the obligations of the Greek government of Tsipras. We believe also, that this U-Turn supports the USA wish to attack the German government’s current rising economic strength.

Moreover, the USA government itself – suffers from an astronomical debt.

7. The Marxist View of ‘National Debt’ under capitalism

What do Marxists and other informed economists make of the notion of a national Debt? Falling into debt of a country – or large institutions – has been a historical feature of the growth of capital. Karl Marx pointed this out in ‘Capital’, saying that the “only part of the so-called national wealth that actually enters the possession of modern people is their national debt.” In full:

“The system of public credit, i.e., of national debts, whose origin we discover in Genoa and Venice as early as the Middle Ages, took possession of Europe generally during the manufacturing period. The colonial system with its maritime trade and commercial wars served as a forcing-house for it. … National debts, i.e., the alienation of the state – whether despotic, constitutional or republican – marked with its stamp the capitalistic era. The only part of the so-called national wealth that actually enters into the collective possessions of modern peoples is their national debt. Hence, as a necessary consequence, the modern doctrine that a nation becomes the richer the more deeply it is in debt. Public credit becomes the credo of capital. And with the rise of national debt-making, want of faith in the national debt takes the place of the blasphemy against the Holy Ghost, which may not be forgiven.

The public debt becomes one of the most powerful levers of primitive accumulation. As with the stroke of an enchanter’s wand, it endows barren money with the power of breeding and thus turns it into capital, without the necessity of its exposing itself to the troubles and risks inseparable from its employment in industry or even in usury. The state creditors actually give nothing away, for the sum lent is transformed into public bonds, easily negotiable, which go on functioning in their hands just as so much hard cash would. But further, apart from the class of lazy annuitants thus created, and from the improvised wealth of the financiers, middlemen between the government and the nation – as also apart from the tax-farmers, merchants, private manufacturers, to whom a good part of every national loan renders the service of a capital fallen from heaven – the national debt has given rise to joint-stock companies, to dealings in negotiable effects of all kinds, and to agiotage, in a word to stock-exchange gambling and the modern bankocracy.

At their birth the great banks, decorated with national titles, were only associations of private speculators, who placed themselves by the side of governments, and, thanks to the privileges they received, were in a position to advance money to the State. Hence the accumulation of the national debt has no more infallible measure than the successive rise in the stock of these banks, whose full development dates from the founding of the Bank of England in 1694. The Bank of England began with lending its money to the Government at 8%; at the same time it was empowered by Parliament to coin money out of the same capital, by lending it again to the public in the form of banknotes. It was allowed to use these notes for discounting bills, making advances on commodities, and for buying the precious metals. It was not long ere this credit-money, made by the bank itself, became. The coin in which the Bank of England made its loans to the State, and paid, on account of the State, the interest on the public debt. It was not enough that the bank gave with one hand and took back more with the other; it remained, even whilst receiving, the eternal creditor of the nation down to the last shilling advanced. Gradually it became inevitably the receptacle of the metallic hoard of the country, and the centre of gravity of all commercial credit. What effect was produced on their contemporaries by the sudden uprising of this brood of bankocrats, financiers, rentiers, brokers, stock-jobbers, &c., is proved by the writings of that time, e.g., by Bolingbroke’s”

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

Not only is “National Debt” crucial for the capitalist, but it was coincident with the ‘credit system’, and this in turn was associated with an international trade of capital (i.e. money) and systems of “modern taxation”:

“With the national debt arose an international credit system, which often conceals one of the sources of primitive accumulation in this or that people. Thus the villainies of the Venetian thieving system formed one of the secret bases of the capital-wealth of Holland to whom Venice in her decadence lent large sums of money. So also was it with Holland and England. By the beginning of the 18th century the Dutch manufactures were far outstripped. Holland had ceased to be the nation preponderant in commerce and industry. One of its main lines of business, therefore, from 1701-1776, is the lending out of enormous amounts of capital, especially to its great rival England. The same thing is going on today between England and the United States. A great deal of capital, which appears today in the United States without any certificate of birth, was yesterday, in England, the capitalised blood of children.”

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

Moreover, Marx points out that governments want loans for “extraordinary expenses”. This is because they do not want to tax the people too heavily lest it anger them. But eventually these loans will need an increase in taxes to pay the loan off. Then a vicious circle begins, where even more loans are needed to off-set the higher taxation burden:

“As the national debt finds its support in the public revenue, which must cover the yearly payments for interest, &c., the modern system of taxation was the necessary complement of the system of national loans. The loans enable the government to meet extraordinary expenses, without the tax-payers feeling it immediately, but they necessitate, as a consequence, increased taxes. On the other hand, the raising of taxation caused by the accumulation of debts contracted one after another, compels the government always to have recourse to new loans for new extraordinary expenses. Modern fiscality, whose pivot is formed by taxes on the most necessary means of subsistence (thereby increasing their price), thus contains within itself the germ of automatic progression. Overtaxation is not an incident, but rather a principle. In Holland, therefore, where this system was first inaugurated, the great patriot, DeWitt, has in his “Maxims” extolled it as the best system for making the wage labourer submissive, frugal, industrious, and overburdened with labour. The destructive influence that it exercises on the condition of the wage labourer concerns us less however, here, than the forcible expropriation, resulting from it, of peasants, artisans, and in a word, all elements of the lower middle class. On this there are not two opinions, even among the bourgeois economists. Its expropriating efficacy is still further heightened by the system of protection, which forms one of its integral parts.

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

What were these “extraordinary expenditures” the state wished to fund? Even bourgeois economists recognise that wars were one key such expenditures:

“The Bank of England was created… explicitly,, to finance wars, in its case the Nine Years War with France which started in 1688……The Bank of France .. having been started with that name in 1800 specifically to satisfy Napoleon’s wartime financial needs”. (Dean and Pringle Ibid; ‘Central banks”; pp38; p. 42).

Modern bourgeois economists have of course long supported the principle of national debts. Maynard Keynes recognised the utility of deficit financing for the capitalist control of the state, as he stated:

“’Loan expenditure.. may .. enrich the community on balance”; ref 31: (Cited Van Der Pijl, K. ‘The making of an Atlantic ruling class”; p.17; London 2012).

While we cannot dwell further on the subject in this article, the amount of the USA current debt is astonishingly large. So there is nothing reprehensible about the Greek Debt per se. What is at issue is an international lack of confidence that the Greek state would be able to pay it back. There is no underlying manufacturing or trading base to support the debt, and will not be. Unless – a complete break with the past – is offered. However thus far, a meaningful solution has never been on offer by the Greek or international merchants of capital, to the Greek working people.

8. The Debt Crisis leads to an increasing struggle of the growing Greek working class and gives rise to the United Front of Syriza – the political parties of the left

By the time of the current era in 2000-2015, the Greek social and class structure had changed dramatically. Despite the absence of a major manufacturing sector, unemployment was rising, and the urban-rural divide was widening – even before the austerity moves of the Troika:

“Greece is still low on competitiveness and this undermines self-sustaining growth, with low employment rates, low R&D, high levels of poverty, especially in rural and remote areas. The Greek economy grew by 0.7 per cent in the 1980s, compared with 2.4 per cent in other EU states. Demographically, the number of over 65-year-olds, set to increase by 30 per cent between 2010 and 2050, with fewer people in employment, will create a massive dependency on social security and health care. Greece has the largest agricultural population in the EU, with a low capacity to attract foreign direct investment (FDI). The collapse of the Soviet Union and opening of markets in the Balkans means that many investors have relocated their activities in neighbouring countries.

Since 2004 there has been a drop in most manufacturing output (textiles, leather goods, paper, office equipment, furniture), steadily constant production of food, beverages, oil, with the only growth in tobacco, chemicals and plastic goods. Therefore, long-term stagnation in manufacturing has led the state to adopt ‘rescue’ interventions or public loans. Shipping and tourism contributes 17 per cent to gross domestic product (GDP) and employs 18 per cent of the working population. The uneven rural/urban divide is particularly acute as some areas, notably the islands and the farming communities, benefited more from Euro-funds for tourism or agridevelopment than others. Athens, in particular has had massive infrastructure developed.”

(Liddle, Joyce. “Regeneration and Economic Development in Greece:
De-industrialisation and Uneven Development “p.340; Local Government Studies; Vol. 35, No. 3, 335–354, June 2009)

Nonetheless, the weight of the working class had risen between 1991 and 2011, as had a class polarisation:

“Based on the Greek Statistic Service data for the fourth trimester of 2011 in comparison to those of 1991 consists in
1. an increase of the bourgeois class (3.4% from 1.4%) and of the rich rural strata (0.6% from 0.3%),
2. a huge decline of the traditional petit-bourgeois class (15.2% from 13.2%), and of the middle rural strata (2.2% from 3%),
3. a small increase of the new petit-bourgeois class (15.2% from 13.2%), due to the increasing demand of their abilities for the achievement of capital profitability, in parallel to an effort of their submission to the most direct capital exploitation and domination,
4. An important increase of the working class (62.2% from 47.5%), and
an important decrease of the poor rural strata (6% from 47.5%).
*In any case, what is clear is the tendency of intensification of class polarisation, which leads to the adoption of a social structure akin to that of other European countries (small number of farmers and of the traditional petit-bourgeois class, stable presence of the new petit-bourgeois class as the executive organizer of the productive process, broader bourgeoisie and heterogeneous uneven but
numerous working class”.

(Eirini Gaitanou. An examination of class structure in Greece, its tendencies of transformation amid the crisis, and its impacts on the organisational forms and structures of the social movement. At: http://www.academia.edu/9400998/An_examination_of_class_structure_in_Greece_its_tendencies_of_transformation_amid_the_crisis_and_its_impacts_on_the_organisational_forms_and_structures_of_the_social_movement).

Under these enormous burdens, the now sizeable working classes of Greece mounted serious struggles to resist “austerity.” The ruling classes struggled to implement their commitments to the EU and the IMF. Consequently a series of short lived coalition governments took power.

“Following the May 2012 legislative election where the New Democracy party became the largest party in the Hellenic Parliament, Samaras, leader of ND, was asked by Greek President Karolos Papoulias to try to form a government. However, after a day of hard negotiations with the other parties in Parliament, Samaras officially announced he was giving up the mandate to form a government. The task passed to Alexis Tsipras, leader of the SYRIZA (the second largest party) who was also unable to form a government. After PASOK also failed to negotiate a successful agreement to form a government, emergency talks with the President ended with a new election being called while Panagiotis Pikrammenos was appointed as Prime Minister in a caretaker government.
Voters once again took to the polls in the widely-watched June 2012 election. New Democracy came out on top in a stronger position with 129 seats, compared to 108 in the May election. On 20 June 2012, Samaras successfully formed a coalition with PASOK (now lead by former Finance Minister Evangelos Venizelos) and DIMAR. The new government would have a majority of 58, with SYRIZA, Independent Greeks (ANEL), Golden Dawn (XA) and the Communist Party (KKE) comprising the opposition. PASOK and DIMAR chose to take a limited role in Samaras’ Cabinet, being represented by party officials and independent technocrats instead of MPs.”

(https://en.wikipedia.org/wiki/Antonis_Samaras)

We discuss these parties below. The coalition government led by Samaras, proved to be another short lived and contentious government, as it toed the line of Troika conditions. As such it was unable to disguise its nature from the increasingly militant and impoverished working class of Greece.

By the time of the January 2015 elections, the situation had become even more parlous for Greece’s working people:

“Greece saw official unemployment rising up to 27% – and youth unemployment up to 50% – suffered a cumulative contraction of almost 25%, saw a massive reduction in wages and pensions, and witnessed the passage of massive legislation oriented towards privatizations, labor market liberalization, and neoliberal university reform.”

(Panagiotis Sotiris; https://viewpointmag.com/2015/01/28/a-strategy-of-ruptures-ten-theses-on-the-greek-future/)

A more credible “left” bulwark against the masses was necessary for the Greek ruling class. This coincided with a reformation of the Greek left. At this point we must discuss Syriza in more detail.

As seen, PASOK had fallen into rank opportunism and open betrayal of the working class. After ensuing scandals of corruption implicated the leader, Andreas Papandreou, its appeal to the workers and poor of Greece was falling fast:

“The socialist Prime Minister Andreas Papandreou and his key associates were under accusation of scandal, which involved party funding from illicit sources and revealed the extensive clientelistic linkages between business interests and politics which had been built up under PASOK’s eight-year rule.”

(Tsakatika, Myrto and Eleftheriou, Costas: “The Radical Left’s Turn towards Civil Society in Greece: One Strategy, Two Paths”; South European Society and Politics, 2013; p.3; http://dx.doi.org/10.1080/13608746.2012.757455)

The space on the left had opened up again. Who was there to fill it?
We reprise the main outlines of events, focusing on analyses by Syriza, the revisionist KKE, and the pro-Hoxha Anasintaxi.

After the destruction of many of its cadre after the Battle of Athens in 1949, the KKE slowly reformed, after having adopted some mistaken sectarian paths during the Second World War. The KKE went through several splits, summarized below:

“There have been a series of splits throughout the party’s history, the earliest one being the Trotskyist Organisation of Internationalist Communists of Greece.
In 1956, after the 20th Congress of the Communist Party of the USSR….
a faction created the Group of Marxist-Leninists of Greece (OMLE), which split from party in 1964, becoming the Organisation of Marxists-Leninists of Greece. In 1968, amidst the Greek military junta of 1967–1974 and the Soviet invasion of Czechoslovakia, a relatively big group split from KKE, forming KKE Interior, a Greek Nationalist Communist Party claiming to be directed from within Greece rather than from the Soviet Union.
In 1988 KKE and Greek Left (the former KKE Interior), along with other left parties and organisations, formed the Coalition of the Left and Progress.
Also in 1988, the vast majority of members and officials from Communist Youth of Greece (KNE), the KKE’s youth wing, split to form the New Left Current (NAR), drawing mainly youth in major cities, especially in Thessaloniki.
In the early 2000s, a small group of major party officials such as Mitsos Kostopoulos left the party and formed the Movement for the United in Action Left (KEDA), which in the 2007 legislative election participated in the Coalition of the Radical Left, which was to win the 2015 national elections with a plurality.”

(https://en.wikipedia.org/wiki/Communist_Party_of_Greece) and also see Tsakatika, Myrto and Eleftheriou, Costas: “The Radical Left’s Turn towards Civil Society in Greece: One Strategy, Two Paths”; South European Society and Politics, 2013; p.3; http://dx.doi.org/10.1080/13608746.2012.757455)

The Marxist Leninist party supporting Hoxha in Greece is ‘Αναρτήθηκε από’ or ‘Anasintaxi Organization’ (reorganization). They are also known as “The Movement for the Reorganization of the Communist Party of Greece 1918–55” – or KKE 1918-55. They characterize the KKE disintegration post-war as follows:

“The old revolutionary KKE, under the leadership of the then General Sceretary Nikos Zachariadis, was the only communist party from a capitalist not to have accepted Krushchevian revisionism. For this reason, it was eliminated by the brutal intervention of the soviet Krushchevian revisionists in 1955-1956 and replaced by the Greek Krushchevian revisionist party (“K”KE), a bourgeois, party of social-democratic type. More than 90% of the party members led by Nikos Zachariadis opposed and fiercely resisted Krushchevian revisionism and many tens of cadres were sent to exile in Siberia including Nikos Zachariadis himself who has murdered by the social-fascist clique of Brezhnev (CPSU) – Florakis (“K”KE) in August of 1973, in Sorgut, Siberia after of 17 years of exile. In 1968, “K”KE was split into two parties: the euro-communist part known as “K”KE (interior) and the Krushchevian-Brezhnevite part known as “K”KE. SYRIZA originates from the first part and, consequently, is a social-democratic and reformist party guided by a right opportunist general line and characterized by petty bourgeois class features”

Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015; at http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

The revisionist KKE’s attitude to the European Union is characterised as follows:

“It is important to clarify that, despite its verbal attacks against EU and the Eurozone, “K”KE does not put forward (not even for the sake of demagogy) the question of Greece’s immediate exit neither from the EU nor the Eurozone. In relation to Euro, the leadership of “K”KE has stated: “A solution outside the euro and return to the drachma in the present circumstances would be catastrophic” (30/5/2011), i.e. a position that is similar to the one expressed by the president of the Union of Greek Industrialists (20/3/2012)…: “Europe or chaos” This is also evident in the party’s program that was approved by its last congress). Since some time now, “K”KE has expressed the view that “the term “national dependence” is not applicable in contemporary conditions” (1/2/2005). After the 19th Congress, it has openly adopted Trotskyite positions that mention “imperialist Greece”, “imperialist Second World War” etc and are evident in the “Program” approved in the last party Congress: “the capitalism in Greece is in the imperialist stage of development” (“K”KE Program, p. 12, Athens 2013). Concerning the character of the Second World War it is claimed that: “the problem was not only with KKE but the overall strategy of the international communist movement before and during the Second World War. In 1941, another negative point was added when the correct assessment of the war as imperialist – with respect to both sides of capitalist states – was replaced by the position that it was only anti-fascist” (“Rizospastis,” 21/12/2104)”

Αναρτήθηκε από Anasintaxi OrganizationSome questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015; at http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

As PASOK had been fully exposed, a general disillusion enabled the formation of Synaspismo (Coalition of the Left and Progress) in 1991:

“Synaspismos emerged initially as an electoral coalition at the late 1980s, with the pro-Soviet Communist Party of Greece (KKE) and the Greek Left, one of the successors of the eurocommunist KKE Interior, as its largest constituents. The Party of Democratic Socialism, a splinter from the Union of the Democratic Centre which occupied a similar position to PASOK, was the largest non-Communist member party.”

(https://en.wikipedia.org/wiki/Synaspismos).

The many parties of the left are displayed in the diagram below, which helps to show the umbrella nature of the Syriza United front. Beneath the figure itself (at the site “Lenin’s Tomb”) is a potted history of these factions. (Seymour, R. ‘Map of the Greek Radical Left’ February 9, 2015; http://www.leninology.co.uk/2015/02/map-of-greek-radical-left.html). However the figure does not explain include the currents of the Marxist-Leninist left. The OMLE was a pro-Maoist party. We further discuss at points, the positions of Αναρτήθηκε από Anasintaxi Organization, the pro-Hoxha Marxist-Leninists. Here we continue to trace the currents of Syriza.

The revisionist KKE joined Synaspismo, which contested three national elections (June 1989, November 1989, 1990). For a period they joined in Government alliances with mainstream centre-right New Democracy, ND under the premiership of Tzannis Tzannetakis. This collaboration was not viewed kindly by the increasingly politicised Greek working class and petit-bourgeois:

“The government’s official purpose was to send the former prime minister to trial and impose a clean-up of the corrupt clientelistic politics of the time… (But) leftist voters did not appreciate the decision of the left parties’ leaderships to engage in government cooperation with the centre-right; moreover, the stated aim of the Tzannetakis government was not achieved: after a long judicial process there was ultimately very little ‘cleaning up’.. the KKE pulled out of the coalition and lost 40 per cent of its cadres after a major party split in the party’s 13th Congress (February 1991). The former coalition was re-established as a unified party… In the first part of the 1990s, the Greek left as a whole was thus delegitimised in the eyes of its traditional electorate, bruised by participation in government with the centre-right and experienced internal strife and extensive demobilisation of party members, while the collapse of the Soviet Union (USSR) added an identity crisis to its woes”. (Tsakatika, and Eleftheriou, Ibid; 2013).

Greece10

The United Front of Synapsimos – or Syn as it is known – tried to appeal to a broad front, and one that explicitly crossed class lines:

“SYN.. in 2001… established a political and electoral alliance with a host of smaller parties, groups and networks of the extra-parliamentary left in the context of the Synaspismo Pizospastikh Aristra (Coalition of the Radical Left [SYRIZA])… SYN was and remained (until 2012) the largest party in the SYRIZA coalition, representing at least 80 per cent of its cadres, activists and voters. SYRIZA was one of the core choices of the party’s new leadership after 2000.. ”
(Tsakatika, and Eleftheriou, Ibid; 2013).

“SYN.. defined itself as a pluralist left party of democratic socialism, neither orthodox communist nor social democratic, supporting a mixed economy and placing a fresh emphasis on ‘new issues’, particularly feminism, democratic rights and the environment. SYN’s original core consisted of cadres whose political origins lay in the party of the Ellhnikh Aristra ́ (Greek Left [EAR]) founded in 1987 (in turn established after the KKE-es leadership’s decision to dissolve the party and contribute to the foundation of a non-communist left party) and a large group of dissidents who broke ranks with the KKE in 1991. It also incorporated a number of individuals and small groups coming from left social democracy, ecologism and the extra-parliamentary left, as well as independents.

The party’s founding document appealed to ‘the men and women of work and culture, the young and the excluded’. This was explicitly not a class appeal, since SYN effectively presented itself as a catch-all party throughout the 1990s, one that aimed to be present in ‘every nook and cranny of Greek society’. There was also an explicit trans-class appeal to groups affected by gender inequality and environmental degradation. In practice, most of its vote share, membership and cadres have mainly been from among the ranks of highly educated employees in the public sector, professionals and small employers. However, as a result of changes in internal factional dynamics, with the radical, protest-oriented

moderate (and sympathetic to government cooperation with PASOK) Anan vtikh ryga (Renewal Wing) in the party leadership after 2000, SYN shifted to a broadly defined class appeal aimed at targeting, primarily, younger cohorts and, secondarily, precariously employed workers in the services sector, social categories that were politically under-represented”
(Tsakatika, and Eleftheriou, Ibid; 2013).

The later creation of Syriza, was also a United Front. The word commonly means “coalition of the radical left”; or originally “coming from the roots” (Wikipedia):

“The Coalition of the Radical Left (Greek: Synaspismós Rizospastikís Aristerás), mostly known by its acronym, Syriza which signifies a Greek adjective meaning “from the roots”, is a left-wing political party in Greece, originally founded in 2004 as a coalition of left-wing and radical left parties. It is the largest party in the Hellenic Parliament…
The coalition originally comprised a broad array of groups (thirteen in total) and independent politicians, including social democrats, democratic socialists, left-wing patriots, feminists and green leftist groups, as well as Maoist, Trotskyist, Eurocommunist but also Eurosceptic components. Additionally, despite its secular ideology, many members are Christians who, like their atheistic fellow members, are opposed to the privileges of the state-sponsored Orthodox Church of Greece. From 2013 the coalition became a unitary party, although it retained its name with the addition of “United Social Front.”
http://en.wikipedia.org/wiki/Syriza

Syriza between 2004-8 was led by Alekos Alavanos. They created a vigorous youth movement in the driving force of the Ellhniko ́ Koinvniko ́ Foroym (Greek Social Forum [EKF]) which later organised the 4th European Social Forum (ESF) that took place in Athens in 2006. The Syriza United Front did undergo some splinters:

“In March 2009, some 10 small groups and parties formed another coalition, Antarsya (literally, the Anti-Capitalist Left Cooperation for the Overthrow). Composed primarily of university student activists in various communist organizations of orthodox Marxist, Trotskyist and Maoist backgrounds, as well of members of the relatively new rank-and-file unions outside the established bureaucracies of the official union structure of the country, it proved effective for activism in a broad range of mobilizations, but it never managed to achieve anything more than 1.8 per cent in the regional or general elections.

(Spourdalakis, Michalis; “Left strategy in the Greek cauldron: explaining syriza’s success. Socialist Register 2013; p. 105)

By 2010, Alex Tspiras was leading the Syriza party, after a section (The Renewal Wing’) split to form DIMAR (‘Renewal Wing’):

“The exit of the ‘Renewal Wing’ faction from SYN (which evolved into DIMAR) in the summer of 2010 curtailed political disagreement and factional infighting within SYN and resulted in the effective dominance of Alexis Tsipras’s leadership in both SYN and SYRIZA.”
(Tsakatika, and Eleftheriou, Ibid; 2013).

“The “social democratic” wing of Synaspismos definitely lost control of the party in 2006 when Alekos Alavanos was elected its president. This right wing, led by Fotis Kouvelis, almost exclusively originating in the Eurocommunist right group coming from EAR, ultimately left Synaspismos and set up another party called Democratic Left (Dimar): a formation that claims to be a sort of halfway house between Pasok and the radical left.”

(Stathis Kouvelakis interview with Sebastien Budgen: Greece: Phase One https://www.jacobinmag.com/2015/01/phase-one/)

But the revisionist KKE left Syn early on, and adopted a sectarian approach. Later on the KKE did not join the Greek Social Forum (EKF). Much of the KKE’s broad front work was instead performed through a Trade Union organisation – “Panrgatiko Agvnistiko Mtvpo (All Workers’ Militant Front, PAME) formed in the late 1990s. Insisting on this tactic, the KKE lost ground amongst much of the youth. For example those joining the ‘Indignants’ movement – who rejected all parties.

“Also indicative of the qualitative new dimension of the Greek people’s resistance were the now famous mobilizations of the ‘aganaktismeni’, i.e. the ‘frustrated or indignant in the squares’. These movements, which appeared in almost every major city nationwide, used new means of political mobilization (including the internet) and developed a political language which was clearly hostile to the previously existing patronizing practices of the party system. In fact this hostility was frequently displayed by spontaneous verbal and even physical attacks on politicians of the governmental parties, which at times extended to representatives of the established trade unions and the KKE.”

(Spourdalakis, Michalis;“Left strategy in the Greek cauldron: explaining syriza’s success. Socialist Register 2013; p. 108)

Stathis Kouvelakis, is a member of the central committee of Syriza and a leading member of its Left Platform. Kouvelakis pointed to the post-1968 divisions of the Greek left as “two poles.” Supposedly bridged by Syriza: the first bridge to factions of the KKE:

“Since 1968, the radical Left had been divided into two poles. The first was the Greek Communist Party (KKE), which (after splits)… (had) a rightist wing (that) constituted the Greek Left (EAR) and joined Synaspismos from the outset, and the leftist one reforming as the AKOA. The KKE that remained after these two splits was peculiarly traditionalist… It managed to win a relatively significant activist base among working-class and popular layers, as well as among the youth, particularly in the universities.” (Stathis Kouvelakis interview with Sebastien Budgen: Greece: Phase One https://www.jacobinmag.com/2015/01/phase-one/)

Kouvelakis describes Synaspsimos, as a second ‘pole’, seeding the later Syriza:

“The other pole, Synaspismos, opened out in 2004 with the creation of Syriza, which itself came from the joining together of the two previous splits from the KKE. Synaspismos has changed considerably over time. At the beginning of the 1990s, it was the kind of party that could vote for the Maastricht Treaty, and it was mainly of a moderate left coloration.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Actually the Marxist-Leninist pro-Hoxha party – (Αναρτήθηκε από Anasintaxi Organization) – is more emphatic. It places Syriza as directly deriving from the revisionist KKE, and as having taken over the KKE “social-democratic and reformist” character. Although Syriza is “socially” anti-fascist, it has “contradictions” – that impede it:

“In 1968, “K”KE was split into two parties: the euro-communist part known as “K”KE (interior) and the Krushchevian-Brezhnevite part known as “K”KE. Syriza originates from the first part and, consequently, is a social-democratic and reformist party guided by a right opportunist general line and characterized by petty bourgeois class features.

Syriza has pledged to implement a kind of neo-Keynesian economic program with the aim, at best, of relieving the burden of the consequences coming from the economic crisis of over-production and extreme neo-liberal economic policy without, however, touching the capitalist system and the imperialist dependence of Greece. Nevertheless, the implementation of this program has met negative reactions from the representatives of the imperialist organizations Commission – ECB – IMF that continue to interfere in the internal affairs of the country provocatively and without any pretext. This attitude amounts to the annulment of the recent (editor: January 2105) elections in our country.

In the sphere of social questions, Syriza is an anti-fascist party suffering from inconsistencies and contradictions as it is evident from the fact that it formed an alliance with the bourgeois nationalist party of ANEL and the nomination of Prokopis Pavlopoulos for President of the Republic, a right-wing politician from Nea Demokratia who was responsible, as Minister of Public Order in the Karamanlis government, for the bloody police violence unleashed on the country’s school youth after the murder of Alexis Grigoropoulos in December of 2008.”

(Αναρτήθηκε από Anasintaxi OrganizationSome questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

Syriza was always an electoral alliance:

“Syriza was set up by several different organizations in 2004, as an electoral alliance. Its biggest component was Alexis Tsipras’s party Synaspismos — initially the Coalition of the Left and Progress, and eventually renamed the Coalition of the Left and of the Movements …. It emerged from a series of splits in the Communist movement. Some (smaller parties also – Editor) came out of the old Greek far left. In particular, the Communist Organization of Greece (KOE), one of the country’s main Maoist groups. This organization had three members of parliament (MPs) elected in May 2012. That’s also true of the Internationalist Workers’ Left (DEA), which is from a Trotskyist tradition, as well as other groups mostly of a Communist background. For example, the Renewing Communist Ecological Left (AKOA), which came out of the old Communist Party (Interior).” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

The United Front of Syriza, had almost electoral immediate success:

“It managed to get into parliament, overcoming the 3 percent minimum threshold.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Syriza went on to replace PASOK as increasingly, Syriza candidates won in the ballot boxes. By this stage a number of other new parties had emerged, including a fascist party – Golden Dawn:

“After three years of political instability, the system collapsed in the dual elections of May and June 2012. New Democracy’s strength was halved and PASOK’s vote share diminished by 75 per cent. Three new political actors emerged, each winning around seven per cent of the vote, namely the party of the Dhmokratikh Aristra (Democratic Left, DIMAR), a recent split from SYN, Anya rthtoi Ellhn(Independent Greeks), a recent split from ND, and the extreme-right Xrysh Aygh (Golden Dawn). (Tsakatika, and Eleftheriou, Ibid; 2013).

A short lived coalition government in 2012 was formed by ND, PASOK and DIMAR in June 2012

What does Syriza represent? According to its own leaders it is an “anti-capitalist coalition” – as “class-struggle parties – but both emphasising “electoral alliances”:

“Syriza is an anti-capitalist coalition that addresses the question of power by emphasizing the dialectic of electoral alliances and success at the ballot box with struggle and mobilizations from below. That is, Syriza and Synaspismos see themselves as class-struggle parties, as formations that represent specific class interests.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In another description, it is a “hybrid party”:

“That is, it is a political front, and even within Syriza there is a practical approach allowing the coexistence of different political cultures. I would say that Syriza is a hybrid party, a synthesis party, with one foot in the tradition of the Greek Communist movement and its other foot in the novel forms of radicalism that have emerged in this new period.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In 2012 there were about 16,000 members in Synaspismos, and the Maoist KOE had about 1-1500 members. But in the ensuring period of a year, Syriza grew rapidly further – to 35,000–36,000. By May 2012, it became the second party in Greece with 16.7 percent of the vote, beating Pasok. It relied largely on a trade union base, and pulled its voters away from the KKE. There were 3 reasons why strategists feel they did so well in the 2012 elections:

“First, The violence of the social and economic crisis in Greece and the way it developed from 2010 onward, with the austere-ian purge .. inflicted under the infamous memorandums of understanding (the agreements the Greek government signed with the troika in order to secure the country’s ability to pay off its debts). The second factor resides in the fact that Greece — and now also Spain — are the only countries where this social and economic crisis has transformed into a political crisis. .. The third factor is popular mobilization.… The real breakthrough came when Tsipras focused his discourse on the theme of constituting an “anti-austerity government of the Left” now, which he presented as an alliance proposal reaching out to the KKE, the far left, the parliamentary left, and the small dissident elements of Pasok. “ (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Within the United Front of Syriza itself, there are two main wings (See Diagram above): The Left Platform and the majority. The Left Platform is also a United Front – of the “Left Current” mainly influenced by the KKE and a Trotskyist component:

“The Left Platform has two components, the Left Current, which is a kind of traditional communist current — essentially constituted by trade unionists and controlling most of the trade union sector of Syriza. These people in their vast majority come from the KKE, so they are those who broke with the KKE in the last split of the party in 1991. And then there is the Trotskyist component (DEA and KOKKOINO, recently fused).” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In turn, this Left wing has formed a sub-group – the “Platform of the 53”:

“The left of the majority has coalesced around the “Platform of the Fifty-Three,” signed by fifty-three members of the central committee and some MPs in June 2014, immediately after the European elections. They strongly criticized Tsipras’s attempts to attract establishment politicians, and for leading a campaign that didn’t give a big enough role to social mobilizations and movements”. (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

From quite early on, Tsipras had been criticised from his Left – on charges along the lines of opportunism. What Programme did Syriza put forth?

9. What was the elected programme of Syriza?

The Thessalonika Conference is accepted as being the progaramme of the United Front of Syriza. (Syriza – The Thessalonika Programme” at http://www.syriza.gr/article/id/59907/SYRIZA—THE-THESSALONIKI-PROGRAMME.html#.VQSgEChOTdl

In broadest terms the Programme calls for cessation of “the Nazi Occupation forced loan from the Bank of Greece” – and lifting of the Greek Public Debt: A slogan “No sacrifice of the Euro” was often heard:

  • “Write-off the greater part of public debt’s nominal value so that it becomes sustainable in the context of a «European Debt Conference». It happened for Germany in 1953. It can also happen for the South of Europe and Greece.
  • Include a «growth clause» in the repayment of the remaining part so that it is growth-financed and not budget-financed.
  • Include a significant grace period («moratorium») in debt servicing to save funds for growth.
  • Exclude public investment from the restrictions of the Stability and Growth Pact.
  • A «European New Deal» of public investment financed by the European Investment Bank.
  • Quantitative easing by the European Central Bank with direct purchases of sovereign bonds.
  • Finally, we declare once again that the issue of the Nazi Occupation forced loan from the Bank of Greece is open for us. Our partners know it. It will become the country’s official position from our first days in power.
    On the basis of this plan, we will fight and secure a socially viable solution to Greece’s debt problem so that our country is able to pay off the remaining debt from the creation of new wealth and not from primary surpluses, which deprive society of income.
    With that plan, we will lead with security the country to recovery and productive reconstruction by:
  • Immediately increasing public investment by at least €4 billion.
  • Gradually reversing all the Memorandum injustices.
  • Gradually restoring salaries and pensions so as to increase consumption and demand.
  • Providing small and medium-sized enterprises with incentives for employment, and subsidizing the energy cost of industry in exchange for an employment and environmental clause.
  • Investing in knowledge, research, and new technology in order to have young scientists, who have been massively emigrating over the last years, back home.
  • Rebuilding the welfare state, restoring the rule of law and creating a meritocratic state.
    We are ready to negotiate and we are working towards building the broadest possible alliances in Europe.”

In this document it further says that “within our first days in power,” after “negotiations end” with the Troika (And on its Memorandum)– they will begin enacting the following “National Reconstruction Plan” What does this embody? There are Four Pillars to this, which we recap briefly.

The 1st Pillar is “Confronting the humanitarian crisis at an estimated Total estimated cost of €1,882 billion

“Our program…. amounts to a comprehensive grid of emergency interventions, so as to raise a shield of protection for the most vulnerable social strata. Free electricity (Total cost: €59,4 million).

  • Programme of meal subsidies to 300.000 families without income. Total cost: €756 million.
  • Programme of housing guarantee. The target is the provision of initially 30.000 apartments (30, 50, and 70 m²), by subsidizing rent at €3 per m². Total cost: €54 million.
  • Restitution of the Christmas bonus, as 13th pension, to 1.262.920 pensioners with a pension up to €700. Total cost: €543,06 million.
  • Free medical and pharmaceutical care for the uninsured unemployed. Total cost: €350 million.
  • Special public transport card for the long-term unemployed and those who are under the poverty line. Total cost: €120 million.
  • Repeal of the leveling of the special consumption tax on heating and automotive diesel. Bringing the starting price of heating fuel for households back to €0,90 per lt, instead of the current €1,20 per lt. Benefit is expected.”

The 2nd Pillar is “Restarting the economy and promoting tax justice” Total estimated cost: €6,5 billion; Total estimated benefit: €3,0 billion

“This second pillar is centered on measures to restart the economy. Priority is given to alleviating tax suppression on the real economy, relieving citizens of financial burdens, injecting liquidity and enhancing demand.

Excessive taxation on the middle class as well as on those who do not tax-evade has entrapped a great part of citizens in a situation which directly threatens their employment status, their private property, no matter how small, and even their physical existence, as proved by the unprecedented number in suicides.

  • Settlement of financial obligations to the state and social security funds in 84 installments. Estimated benefit: €3 billion

The revenue which we expect to collect on an annual basis (between 5% and 15% of the total owed) will be facilitated by the following measures:

  • The immediate cease of prosecution as well as of confiscation of bank accounts, primary residence, salaries, etc, and the issuance of tax clearance certificate to all those included in the settlement process.
  • A twelve-month suspension of prosecution and enforcement measures against debtors with an established zero income, included in the settlement process.
  • Repeal of the anti-constitutional treatment of outstanding financial obligations to the state as offence in the act (in flagrante delicto).
  • Abolition of the mandatory 50% down payment of the outstanding debt as a prerequisite to seek a court hearing. The down payment will be decided by a judge. It will be around 10%-20%, according to the financial circumstances of the debtor.
  • Immediate abolition of the current unified property tax (ENFIA). Introduction of a tax on large property. Immediate downward adjustment of property zone rates per m². Estimated cost: €2 billion.

That tax will be progressive with a high tax-free threshold. With the exception of luxurious homes, it will not apply on primary residence. In addition, it will not concern small and medium property.

  • Restitution of the €12000 annual income tax threshold. Increase in the number of tax brackets to ensure progressive taxation. Estimated cost: €1.5 billion.
  • Personal debt relief by restructuring non-performing loans («red loans») by individuals and enterprises.

This new relief legislation will include: the case-by-case partial write-off of debt incurred by people who now are under the poverty line, as well as the general principle of readjusting outstanding debt so that its total servicing to banks, the state, and the social security funds does not exceed ⅓ of a debtor’s income.

  • Establishment of a public development bank as well as of special-purpose banks: Starting capital at €1 billion.
  • Restoration of the minimum wage to €751. Zero cost.

The 3rd Pillar is “Regaining employment” Estimated cost: €3 billion

A net increase in jobs by 300,000 in all sectors of the economy – private, public, social – is expected to be the effect of our two-year plan to regain employment. …Restitution of the institutional framework to protect employment rights that was demolished by the Memoranda governments…. Restitution of the so-called «after-effect» of collective agreements; of the collective agreements themselves as well as of arbitration….. Abolition of all regulations allowing for massive and unjustifiable layoffs as well as for renting employees.

Zero cost: Employment programme for 300000 new jobs. Estimated first-year cost: €3 billion

The 4th Pillar is: “Transforming the political system to deepen democracy”

Total estimated cost: €0

From the first year of SYRIZA government, we set in motion the process for the institutional and democratic reconstruction of the state. We empower the institutions of representative democracy and we introduce new institutions of direct democracy.

Regional organization of the state. Enhancement of transparency, of the economic autonomy and the effective operation of municipalities and regions. We empower the institutions of direct democracy and introduce new ones.

Empowerment of citizens’ democratic participation. Introduction of new institutions, such as people’s legislative initiative, people’s veto and people’s initiative to call a referendum.

Empowerment of the Parliament, curtailment of parliamentary immunity, and repeal of the peculiar legal regime of MPs’ non-prosecution.

Regulation of the radio/television landscape by observing all legal preconditions and adhering to strict financial, tax, and social-security criteria. Re-establishment of ERT (Public Radio and Television) on a zero basis.”

(Thessalalonkia Programme; Ibid)

This is viewed by significant leaders of the Syriza as a “transitional programme,” as explained in an interview with Efklidis Tsakalotos, a member of Parliament with SYRIZA and responsible for the economic policy of Syriza. (An Interview With Syriza’s Efklidis Tsakalotos Syriza’s Moment; by E. AHMET TONAK” JANUARY 23-25, 2015; http://www.counterpunch.org/2015/01/23/syrizas-moment/) :

“Syriza’s programme is a transitional one. It wants to start the process of not only reversing the policies of austerity but also dismantling some of the central pillars of the neo-liberal order. As with all transitional programmes the goal is to open up fissures for more radical polices. Whether we in Europe can achieve this depends on the extent that social movements are inspired to make use of the opportunities that arise to broaden the agenda in favour of a more participatory, institutionally-diverse, and socially just economy. Left-wing governments can do only so much. Social transformations, especially in the modern era, need the active engagement of millions. Parties and governments of the Left must see their role as catalysts of these wider developments. What is certain is that we are living in interesting times!”

(Interview with Tsakalotos Ibid).

In truth, the programme that was put forward by Syriza entirely stays within the confines of the EU. Instead of breaking that mould, it attempts to lay a negotiating position to lessen the burdens that are being demanded of the Greek peoples. It is correct that Syriza has never claimed to be a Leninist type party. Nonetheless, this perspective put above, is the antithesis of Leninism. As explained by Lenin in ‘State and Revolution” “trasnational forms” are needed. Both Marx and Lenin certainly agreed that a “special stage” – or a stage of transition from capitalism to communism was needed:

“The first fact that has been established most accurately by the whole theory of development, by science as a whole–a fact that was ignored by the utopians, and is ignored by the present-day opportunists, who are afraid of the socialist revolution–is that, historically, there must undoubtedly be a special stage, or a special phase, of transition from capitalism to communism.” https://www.marxists.org/archive/lenin/works/1917/staterev/ch05.htm

However, crucially, this transition needed to be a revolutionary transition:

“Between capitalist and communist society lies the period of the revolutionary transformation of the one into the other. Corresponding to this is also a political transition period in which the state can be nothing but the revolutionary dictatorship of the proletariat.”

Previously the question was put as follows: to achieve its emancipation, the proletariat must overthrow the bourgeoisie, win political power and establish its revolutionary dictatorship.

Now the question is put somewhat differently: the transition from capitalist society–which is developing towards communism–to communist society is impossible without a “political transition period”, and the state in this period can only be the revolutionary dictatorship of the proletariat. What, then, is the relation of this dictatorship to democracy? We have seen that the Communist Manifesto simply places side by side the two concepts: “to raise the proletariat to the position of the ruling class” and “to win the battle of democracy”. On the basis of all that has been said above, it is possible to determine more precisely how democracy changes in the transition from capitalism to communism. In capitalist society, providing it develops under the most favourable conditions, we have a more or less complete democracy in the democratic republic. But this democracy is always hemmed in by the narrow limits set by capitalist exploitation, and consequently always remains, in effect, a democracy for the minority, only for the propertied classes, only for the rich. Freedom in capitalist society always remains about the same as it was in the ancient Greek republics: freedom for the slave-owners. Owing to the conditions of capitalist exploitation, the modern wage slaves are so crushed by want and poverty that “they cannot be bothered with democracy,” “cannot be bothered with politics”; in the ordinary, peaceful course of events, the majority of the population is debarred from participation in public and political life.”

Lenin State & Revolution: Experience of the Paris Commune of 1871. Marx’s Analysis (https://www.marxists.org/archive/lenin/works/1917/staterev/ch03.htm)

Lenin points out that there is a “hemming in by narrow limits” of democracy. How much “narrower” is it when not only the single state “hems it in” – but the imperialists of the EU also “hem it in?” The next period, following the January elections of 2015, would answer this question.

10. Elections of 2015 and Negotiations with the Troika

The short-lived governments could not maintain credibility, as they were always accomodating to the new Troika demands. The mass movement shifted to the left, as shown by the huge demonstrations in the central Square. The elections of January 25 2015, sealed the rise to power of Syriza:

“After the Hellenic Parliament failed to elect a new President of State by 29 December 2014, the parliament was dissolved and a snap 2015 legislative election was scheduled for 25 January 2015. Syriza had a lead in opinion polls, but its anti-austerity position worried investors and eurozone supporters. The party’s chief economic advisor, John Milios, has downplayed fears that Greece under a Syriza government would exit the eurozone, while shadow development minister George Stathakis disclosed the party’s intention to crack down on Greek oligarchs if it wins the election. In the election, Syriza defeated the incumbent New Democracy and went on to become the largest party in the Hellenic Parliament, receiving 36.3% of the vote and 149 out of 300 seats.”

http://en.wikipedia.org/wiki/Syriza

“January 25th marks a historic turning point in recent Greek history. After five years of devastating austerity, a social crisis without precedent in Europe, and a series of struggles that at some points, especially in 2010-2012, took an almost insurrectionary form, there has been a major political break. The parties that were responsible for putting Greek society under the disciplinary supervision of the so-called Troika (EU-ECB-IMF) suffered a humiliating defeat. PASOK, which in 2009 won almost 44% of the vote, now received only 4.68%; and the splinter party of Giorgos Papandreou, the PASOK Prime Minister who initiated the austerity programs, got 2.46%. New Democracy came in at 27.81%, almost 9% below SYRIZA. The electoral rise of the fascists of Golden Dawn has been halted, although they still maintain a worrying 6% of the vote. Another pro-austerity party, the RIVER, representing the neoliberal agenda (although nominally coming from the center-left) took only 6.05%, despite intensive media hype.”

(Panagiotis Sotiris; https://viewpointmag.com/2015/01/28/a-strategy-of-ruptures-ten-theses-on-the-greek-future/)

Rapidly, by 26 January 2015, Tsipras and Independent Greeks (ANEL) leader Panos Kammenos agreed on a coalition government between Syriza and ANEL. Tsipras would be the Prime Minister of Greece, with the academic economist Yanis Varoufakis as his Minister of Finance.

Yet, in a graphic display of its intended response to the rebuke that the Troika and especially the German imperialists had received, the official line was hard:

“German government official Hans-Peter Friedrich however said: “The Greeks have the right to vote for whom they want. We have the right to no longer finance Greek debt.” http://en.wikipedia.org/wiki/Syriza

The Greek pro-Hoxha Marxist-Leninist view is that the Greek people took a stand against both the Troika and the Greek capitalists:

“By voting for SYRIZA, the majority of the Greek people rejected and condemned the cruel economic measures that were imposed, the neoliberal economic policy, in general, and the great-bourgeois parties of ND and PASOK that implemented these measures with the outmost servility. The victory of SYRIZA is also explained by the people’s resentment towards the fascist re-modeling of social life promoted by the government of the fascist scoundrel Samaras”. (January 24, 2015; “BOYCOTT the elections–The elections do not solve the problem of imperialist DEPENDANCE (economic-political-military, NATO bases etc.), nor repel-cancel ongoing EU politics against the people http://anasintaxi-en.blogspot.ca/2015/01/boycott-electionsthe-elections-do-not_24.html)

However Anasintaxi also had called for abstention from the elections of 2015, arguing that:

“In contrary ALL the bourgeois parties are in favor of Greece’s STAY in imperialist European Union, and in EURO-EMU and propagate consciously, serve the interests of the EU imperialists with misleading MYTH-fantasies about “equal participation” (!) of the country in the “pit of lions” of the powerful European monopolies. At the same time they propagate that Greece leaving the Euro-EMU-EU will be a “major disaster” (!).

ALL the reformist social democratic parties (“K” KE-SYRIZA, etc.) and the extra-parliamentary organizations follow the same strategic choice of the EU monopolies and the local capital.

It is not only SYRIZA which supports the country STAY (in) EURO-EMU-EU, but also the “K” KE: “A solution outside the euro and return to the drachma in the present circumstances would be catastrophic” (A. Papariga, “Rizospastis” 31/5/2011, p.6) Moreover: the leaders of the “K” KE definitively renounced the anti-imperialist struggle for the overthrow of dependence”

(January 24, 2015; “BOYCOTT the elections–The elections do not solve the problem of imperialist DEPENDANCE (economic-political-military, NATO bases etc.), nor repel-cancel ongoing EU politics against the people http://anasintaxi-en.blogspot.ca/2015/01/boycott-electionsthe-elections-do-not_24.html)

After the election, Anasintaxi warned that Syriza had entered into coalition with right-wing ANEL. However early on, the government had taken some progressive steps:

“During the first three weeks following the elections, the SYRIZA government has taken a series of actions in order to implement its program that has won the support of wide popular strata, an attitude that is unfortunately accompanied by certain illusions. At the same time, the government’s actions have met a very negative reception from Commission – ECB – IMF whose pressure and constant interference in the country’s internal affairs is condemned by the Greek people. We think that, up to a certain extent, SYRIZA’s victory creates favorable conditions for the strengthening of class struggles. Whether this possibility becomes a reality depends, of course on many factors the most important of which is the organization of the majority of the working masses in independent and united trade unions and the influence exerted on these and, the society in general, by the consistent left-wing, anti-imperialist and revolutionary communists.”

(Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

At this early point, both Tsipras and Varoufakis were apparently determined to negotiate hard, with the threat to leave the EU if the Troika did not back down:

“Greece’s finance minister Yanis Varoufakis has spelled out the negotiating strategy of the Syriza government with crystal clarity.
“Exit from the euro does not even enter into our plans, quite simply because the euro is fragile. It is like a house of cards. If you pull away the Greek card, they all come down,” he said.
“Do we really want Europe to break apart? Anybody who is tempted to think it possible to amputate Greece strategically from Europe should be careful. It is very dangerous. Who would be hit after us? Portugal? What would happen to Italy when it discovers that it is impossible to stay within the austerity straight-jacket?”
“There are Italian officials – I won’t say from which institution – who have approached me to say they support us, but they can’t say the truth because Italy is at risk of bankruptcy and they fear the consequence from Germany. A cloud of fear has been hanging over Europe over recent years. We are becoming worse than the Soviet Union,” he told the Italian TV station RAI.
This earned a stiff rebuke from the Italian finance minister, Pier Carlo Padoan. “These comments are out of place. Italy’s debt is solid and sustainable,” he said.
Yet the point remains. Deflationary conditions are causing interest costs to rise faster than nominal GDP in Italy, Spain, and Portugal, automatically pushing public debt ratios ever higher.
Berkeley economist Barry Eichengreen warns that Grexit would be “Lehman squared”, setting off a calamitous chain reaction with worldwide consequences. Syriza’s gamble is that the EU authorities know this, whatever officials may claim in public.
Premier Alexis Tsipras is pushing this to the wire. Rightly or wrongly, he calculates that Greece holds the trump card – the detonation of mutual assured destruction, to borrow from Cold War parlance – and that all the threats from EMU power centres are mere bluster.
His cool nerve has caught Brussels, Frankfurt, Berlin, and the markets off guard. They assumed that this 40-year neophyte would back away from exorbitant demands in his landmark policy speech to the Greek parliament on Sunday night. Instead they heard a declaration of war.
He vowed to implement every measure in Syriza’s pre-electoral Thessaloniki Programme “in their entirety” with no ifs and buts. This even includes a legal demand for €11bn of war reparations from Germany, a full 71 years after the last Wehrmacht soldier left Greek soil.
There is no possible extension of Greece’s bail-out programme with the EU-IMF Troika, for that would be an “extension of mistakes and disaster”, a perpetuation of the debt-deflation trap. “The People have abolished the Memorandum. We will not negotiate our sovereignty,” he said.
Macropolis said every item was in there: a pension rise for the poorest; no further rises in the retirement age; an increase in the minimum wage to €751 a month by 2016; a return to collective bargaining; an end to privatisation of utilities; cancellation of a new property tax (ENFIA); a rise in tax-free thresholds from €5,000 to €12,000; and a rehiring of 10,000 public workers fired “illegally.”

(Ambrose Evans-Pritchard. “Greece’s leaders stun Europe with escalating defiance”. ‘The Telegraph’; 09 Feb 2015; http://www.telegraph.co.uk/finance/economics/11400778/Greeces-leaders-stun-Europe-with-escalating-defiance.html)

However in a foretaste of the future intransigence of the German imperialists, led by Wolfang Schauble the German Finance Minister – Greece’s first counter-offer was rejected out of hand:

“Schauble continues to insist that Greece sticks to the bailout conditions agreed with previous governments under which financial support will be given only in exchange for substantial structural reforms.
The finance ministry’s position risks deepening splits within Europe over how to deal with Greece as an end of February deadline nears at which the previous bailout agreement with its creditors and the European Central Bank runs out, leaving Greece facing bankruptcy.
In contrast to Berlin, the EU commission president Jean-Claude Juncker welcomed the Greek application, saying in his opinion it could pave the way for a “sensible compromise in the interest of financial stability in the Eurozone as a whole”.
But experts said Greece was merely playing for time, and that its application had indeed contained no new commitments. “The Greeks have simply tried to pass the buck back to the middle,” Matthias Kullas from the Centre for European Politics in Freiburg told The Guardian.
He stressed the German reaction was not a rejection over reaching a compromise with Greece, but did mean that expectations of an agreement on Friday when finance ministers from the eurogroup meet again, were now “slim”.
“If an agreement is reached, it will be at the last minute,” he said. “It’s in the interest of both sides to stick to their guns. The earlier one of them diverts from his course, the weaker his position becomes and the more elbow room he leaves for the other.”

(Kate Connolly. “Germany rejects Greek bailout plan – as it happened”. The Guardian 19 February 2015; http://www.theguardian.com/business/blog/live/2015/feb/19/greece-to-seek-bailout-extension-after-33bn-lifeline)

A furious cycle of media reports and counter reports paralleled a back and forth between the European Union and the Greek negotiating team of Tsipras and Varoufakis. In essence no counter-offer by the Greek team was deemed acceptable. It is true that the initial efforts of the Greek team to counter the demands were insubstantial. However even when substantial retreats had been offered, they were humiliatingly rejected. While the European team was overall untied, strains emerged. It was apparent that the Germans were the most stout in the rejections. However both the French and the Italians were wavering. Nonetheless even the IMF initially firmly supported the German position:

“Last week Greece received a four-month extension of its $277 billion bailout program. The parliaments of Finland, Estonia and, most importantly, Germany, as well as Greece’s other EU partners, approved the bailout program that was agreed to Feb. 20, provided that Greece submit a list of planned reforms. Greece submitted six pages of reforms last Monday, but not all of Greece’s creditors think they are sufficient.

Christine Lagarde, managing director of the International Monetary Fund (IMF), wrote a letter to Dutch Finance Minster Jeroen Dijsselbloem, who is also president of the Eurogroup of eurozone finance ministers, expressing her concern that Greece’s proposed reforms were not specific enough, nor did they contain sufficient assurances on their design and implementation. The letter is the most recent, and public, indication of the IMF’s hesitancy toward Greece and its bailout program.

(Maria Savel. “IMF Stands Firm, Forcing Greece and Syriza to Accept Hard Concessions” Politics Review, March 3, 2015, http://www.worldpoliticsreview.com/trend-lines/15210/imf-stands-firm-forcing-greece-and-syriza-to-accept-hard-concessions)

By March, Tsipras was still assuming the EU would not want to have a member leave:

“SPIEGEL: Many experts now fear a “Graccident” — Greece’s accidental exit from the euro. If the ECB doesn’t agree to your T-Bills, that’s exactly what might happen.
Tspiras: I cannot imagine that. People won’t risk Europe’s disintegration over a T-Bill of almost €1.6 billion. There is a saying for this in Greece: A wet man does not fear the rain.”

(Der Spiegel Interview Conducted By Manfred Ertel, Katrin Kuntz and Mathieu von Rohr: Greek Prime Minister Tsipras: ‘We Don’t Want to Go on Borrowing Forever’; March 7 2015; at http://www.spiegel.de/international/europe/spiegel-interview-with-greek-prime-minister-tsipras-a-1022156.html)

As time went on, the Greek banks were forced to put restrictions on withdrawals. The EU allowed some further liquidity in Greece by allowing Greece to print more T-Bills, but purely for internal use. This was violated by Greece. More and more comments were heard that Greece might have to exit the EU – a so called Grexit or Greccident:

“The current money-go-round is unsustainable. Euro-region taxpayers fund their governments, which in turn bankroll the European Central Bank. Cash from the ECB’s Emergency Liquidity Scheme flows to the Greek banks; they buy treasury bills from their government, which uses the proceeds to … repay its International Monetary Fund debts! …
There’s blame on both sides for the current impasse. Euro-area leaders should be giving Greece breathing space to get its economic act together. But the Greek leadership has been cavalier in its treatment of its creditors. It’s been amateurish in expecting that a vague promise to collect more taxes would win over Germany and its allies. And it’s been unrealistic in expecting the ECB to plug a funding gap in the absence of a political agreement for getting back to solvency. ……Greece’s three-year bond yield is back above 20 percent, double what it was just before Alexis Tsipras was elected prime minister on an anti-austerity platform in January. At that level, there’s no way Greece can end its reliance on its bailout partners anytime soon.
German Finance Minister Wolfgang Schaeuble was scathing yesterday about Greece’s efforts to balance its election promises with its bailout obligations, and about its standing with international investors:
“None of my colleagues, or anyone in the international institutions, can tell me how this is supposed to work. Greece was able to sell those treasury bills only in Greece, with no foreign investor ready to invest. That means that all of the confidence was destroyed again.”
Every day’s delay in cutting a deal pushes Greece a little closer to leaving the common currency. That would be a shame, since it’s an outcome no one — apart from Schaeuble — seems to desire. The mutability of euro membership could also unleash contagion and a domino effect. But it looks increasingly inevitable.”

(Mark Gilbert; “Greece’s Euro Exit Seems Inevitable”: 17 March 2015; http://www.bloombergview.com/articles/2015-03-17/greece-s-euro-exit-seems-inevitable)

By April 2015, reports circulated that secret plans were being drawn up to revive the Drachma and go into default (Evans-Pritchard A, 2 April 2015; Telegraph at http://www.telegraph.co.uk/finance/economics/11513341/Greece-draws-up-drachma-plans-prepares-to-miss-IMF-payment.html).

On May 4th the BBC reported that Greek banks were not allowing pensioners to withdraw more than a small amount, and that public sector workers were nto being paid regularly (http://www.bbc.com/news/world-europe-32580919). However on May 6th however Greece paid back $200 million to the IMF and avoided insolvency. At that time the European Central Bank (ECB) granted further liquidity to Greece. (Phillip Inman and Helena Smith; 6 May, The Guardian; at http://www.theguardian.com/world/2015/may/06/greek-debt-default-avoided-after-200m-payment-to-imf)

By June the situation was still not resolved, and Greece’s peoples were in an even more precarious position. By this time, Syriza had retreated substantially more. Michael Roberts summarises to June:

“The IMF representative in the negotiations, Poul Thomsen, has “pushed the austerity agenda with a curious passion that shocks even officials in the European Commission, pussy cats by comparison” (here are the latest demands of the Troika Greece – Policy Commitments Demanded By EU etc Jun 2015). The IMF is demanding further sweeping measures of austerity at a time when the Greek government debt burden stands at 180% of GDP, when the Greeks have already applied the biggest swing in budget deficit to surplus by any government since the 1930s and when further austerity would only drive the Greek capitalist economy even deeper into its depression. As the Daily Telegraph summed it up: “six years of depression, a deflationary spiral, a 26pc fall GDP, 60pc youth unemployment, mass exodus of the young and the brightest, chronic hysteresis that will blight Greece’s prospects for a decade to come.”

The Syriza government has already made many and significant retreats from its election promises and wishes.  Many ‘red lines’ have been crossed already. It has dropped the demand for the cancellation of all or part of the government debt; it has agreed to carry through most of the privatisations imposed under the agreement reached with the previous conservative New Democracy government; it has agreed to increased taxation in various areas; it is willing to introduce ‘labour reforms’ and it has postponed the implementation of a higher minimum wage and the re-employment of thousands of sacked staff.

But the IMF and Eurogroup wanted even more. The Troika has agreed that the original targets for a budget surplus (before interest payments on debt) could be reduced from 3-4% of GDP a year up to 2020 to 1% this year, rising to 2% next etc. But this is no real concession because government tax revenues have collapsed during the negotiation period. At the end of 2014, the New Democracy government said that it would end the bailout package and take no more money because it could repay its debt obligations from then on as the government was running a primary surplus sufficient to do so. But that surplus has now disappeared as rich Greeks continue to hide their money and avoid tax payments and small businesses and employees hold back on paying in the uncertainty of what is going to happen. The general government primary cash surplus has narrowed by more than 59 percent to 651 million euros in the 4-month period of 2015 from 1.6 billion in the corresponding period last year
The Syriza government has only been able to pay its government employees their wages and meet state pension outgoings by stopping all payments of bills to suppliers in the health service, schools and other public services. The result is that the government has managed to scrape together just enough funds to meet IMF and ECB repayments in the last few months, while hospitals have no medicines and equipment and schools have no books and materials; and doctors and teachers leave the country.

Even Ashoka Mody, former chief of the IMF’s bail-out in Ireland, has criticised the attitude of his successor in the Greek negotiations: “Everything that we have learned over the last five years is that it is stunningly bad economics to enforce austerity on a country when it is in a deflationary cycle. Trauma patients have to heal their wounds before they can train for the 10K.”

The final red lines have been reached. What the Syriza leaders finally balked at was the demand by the IMF and the Eurogroup that the government raise VAT on electricity by 10 percentage points, directly hitting the fuel payments of the poorest; and also that the poorest state pensioners should have their pensions cuts so that the social security system could balance its books. Further down the road, the Troika wants major cuts in the pensions system by raising the retirement ages and increasing contributions. The Syriza leaders were even prepared to agree to some VAT rises and pension ‘reforms’, but the two specific demands of the Troika appear to have been just too much.”

(Roberts, Michael Blog; June 15, 2015;: “Ten minutes past midnight”; https://thenextrecession.wordpress.com/2015/06/06/ten-minutes-past-midnight/)

Increasingly leading economists including Nobel Laureates Joseph Stiglitz and Paul Krugman, Amartya Sen and others – warned about a new “Versailles moment”, and insisted that German stubbornness was actually bad for Europe as a whole, and that a “hair-cut” to the debt was necessary – i.e. a dramatic waiver-cut of the debt (Simon Wren-Lewis. “Why Amartya Sen Is Right About What Is Being Done To Greece”; 12 June 2015; in ‘Social Europe’ at http://www.socialeurope.eu/2015/06/why-amartya-sen-is-right-about-what-is-being-done-to-greece/). President Obama of the USA had already agreed that:

“”You cannot keep on squeezing countries that are in the midst of depression.”
“At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits,” (Aurelia End; Obama joins ally list on Greek austerity relief http://news.yahoo.com/obama-joins-ally-list-greek-austerity-relief-033040983.html )

As the Left inside Syriza resisted Tsipras’s slippery slope of acceptance of new demands, they increasingly pointed to the example of Iceland who had defaulted on international debts in a similar situation. They got substantial agreement from even the ANSEL coalition party members also. (Ambrose Pritchard-Evans. “Syriza Left demands ‘Icelandic’ default as Greek defiance stiffens”.14 June ‘Daily Telegraph’; http://www.telegraph.co.uk/finance/11673989/Syriza-Left-demands-Icelandic-default-as-Greek-defiance-stiffens.html ).

In a twist to the pre-July series of negotiations, as even more demands were made of the package being offered by Tsipras and Varoufakis, Tsipras called a snap referendum, saying he needed to have a further mandate form the Greek people, in order to agree to the latest demands and obtain the new tranche of bail-out funds. Bizarrely however, he then wrote to the Imperialists saying he would accept – only to find that the imperialists had withdrawn their offer. Tsipras had to go on to the snap Referendum:

“Tsipras infuriated eurozone finance ministers by calling a snap referendum on proposals to agree a deal to release the €7.2bn in bailout funds it needed to meet an IMF repayment. His argument was that the concessions still being demanded by creditors, including VAT rises and rapid reform of the unaffordable pension system, and the lack of any serious prospect of debt relief, meant he could not sign up without a fresh public mandate – and, indeed, he and Varoufakis immediately urged their countrymen to vote “No”.

Yet it emerged that while publicly lambasting the troika, the very same Tsipras had dispatched a two-page letter to Brussels that caved into many of the demands he had angrily rejected a few days earlier – and continued to insist on putting to the public vote. It was too late: his exasperated creditors, and Germany in particular, in the person of Berlin’s implacable finance minister, Wolfgang Schäuble, decided enough was enough and the offer was no longer on the table. Amid the storm of political recriminations, the European Central Bank capped financial support to the Greek banking sector, forcing the government to impose capital controls, to stem the relentless slow-motion bank run that has been leaching the life out of the country’s financial system for months. And last Tuesday, as it warned it would, Athens defaulted on its payment to the IMF. To all intents and purposes, the country is bust.

So Greek voters now face trudging to the polls today, either to vote Yes to a set of proposals that are no longer on the table – presumably ushering in a new, more emollient government that would get straight back to the negotiating table – or to send a defiant no to further austerity. Tsipras and Varoufakis insist that “No” would not mean plunging out of the eurozone, let alone the EU. Instead, they say they would re-enter talks as if brandishing a petition. Yet last time they were handed a stock of political capital by the Greek public, in January’s general election, they quickly squandered it. Both Tsipras and Varoufakis have forged their political reputations by rejecting consensus and overturning the received wisdom. But international diplomacy means understanding that everyone at the table, whatever your grievances against them, has their own mandate and their own domestic audience to placate.

Instead of opening up ways for the troika to save face, Tsipras and Varoufakis have used every means available – from provocative tweets to spiky speeches in Syntagma Square – to heighten the divisions between Greece and its eurozone partners, accusing them of trying to blackmail and humiliate the Greek people into submission.”

(Observer Editorial. “The Observer view on Greece’s referendum “5 July 2015; http://www.theguardian.com/commentisfree/2015/jul/05/greece-let-down-by-partners-and-leaders).

In the midst of this circus, before the Referendum – the USA and the IMF (in the person of Christine Lagarde) exerted further pressure on the Germans to bend. Already calls had been made by many economists, that Germany had been granted a waiver on the demands at the end of the First Word war (the Versailles treaty). These had been firmly ignored by the German imperialists. Now the IMF threw a spanner into the erst-while United Front of the imperialists:

“The International Monetary Fund has electrified the referendum debate in Greece after it conceded that the crisis-ridden country needs up to €60bn (£42bn) of extra funds over the next three years and large-scale debt relief to create “a breathing space” and stabilise the economy.
With days to go before Sunday’s knife-edge referendum that the country’s creditors have cast as a vote on whether it wants to keep the euro, the IMF revealed a deep split with Europe as it warned that Greece’s debts were “unsustainable”.
Fund officials said they would not be prepared to put a proposal for a third Greek bailout to the Washington-based organisation’s board unless it included both a commitment to economic reform and debt relief.
According to the IMF, Greece should have a 20-year grace period before making any debt repayments and final payments should not take place until 2055. It would need €10bn to get through the next few months and a further €50bn after that.
The Greek prime minister Alexis Tsipras welcomed the IMF’s intervention saying in a TV interview that what the IMF said was never put to him during negotiations.”

(Philipp Inman, Larry Elliot, Alberto Nardelli; IMF says Greece needs extra €60bn in funds and debt relief”; The Guardian 2 July 2015; at http://www.theguardian.com/business/2015/jul/02/imf-greece-needs-extra-50bn-euro).

The Referendum was held on 5th July 2015. The result was a defiant “NO!” to the European imperialists:

“The final result in the referendum, published by the interior ministry, was 61.3% “No”, against 38.7% who voted “Yes.”
Greece’s governing Syriza party had campaigned for a “No”, saying the bailout terms were humiliating.
Their opponents warned that this could see Greece ejected from the eurozone, and a summit of eurozone heads of state has now been called for Tuesday.
Greek Prime Minister Alexis Tsipras said late on Sunday that Greeks had voted for a “Europe of solidarity and democracy”.
“As of tomorrow, Greece will go back to the negotiating table and our primary priority is to reinstate the financial stability of the country,” he said in a televised address.
“This time, the debt will be on the negotiating table,” he added, saying that an International Monetary Fund assessment published this week “confirms Greek views that restructuring the debt is necessary.”

(Mark Lowen; “Greece debt crisis: Greek voters reject bailout offer”; 6th July; BBC http://www.bbc.com/news/world-europe-33403665).

Strangely – Tsipras appeared not too happy. It became clear that he had been expecting a ‘Yes’ vote, which would enable him to cave in to the EU demands. He had relied on the often remarked on “wish of the Greek peoples to see themselves as European” and thus not to risk leaving the EU. But the Greek people had seen the callous manipulations of the EU leaders.

On the same day the results were announced, Yanis Varoufakis resigned – saying that this would help the negotiations going forward, but that this resignation had been essentially, at the request of Tsipras.

Proponents of the logical outcome of the “No” Vote – such as Yanis Varoufakis – were simply told to drop alternative plans. Varoufakis had been drawing up “Plan B” – whereby if the Troika did not retreat to any key extent – Greece would resurrect the pre-Euro currency of the Drachma.

Astonishingly, given this pledge by the Greek people to stand fast, in the final run of negotiations with the EU, Tsipras – then completely capitulated to Eurozone, primarily German imperialists. Unsurprisingly, in the renewed negotiations – the European leaders and most sections of banking capital – had simply turned their backs on the Greek populations views and demanded even harsher terms:

“The Greek government capitulated on Thursday to demands from its creditors for severe austerity measures in return for a modest debt write-off, raising hopes that a rescue deal could be signed at an emergency meeting of EU leaders on Sunday….Athens has put forward a 13-page document detailing reforms and public spending cuts worth €13bn with the aim of securing a third bailout from creditors that would raise €53.5bn and allow it to stay inside the currency union.
A cabinet meeting signed off the reform package after ministers agreed that the dire state of the economy and the debilitating closure of the country’s banks meant it had no option but to agree to almost all the creditors terms.”

(Phillip Inman, Graeme Wearden and Helena Smith: ”; 9 July 2015 Greece debt crisis: Athens accepts harsh austerity as bailout deal nears “Greek cabinet backs a 13-page package of reforms and spending cuts worth €13bn to secure third bailout and modest debt writeoff http://www.theguardian.com/business/2015/jul/09/greece-debt-crisis-athens-accepts-harsh-austerity-as-bailout-deal-nears)

As even the Guardian concluded: “Generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone:

“Greece and the rest of the eurozone have finally reached an agreement that could lead to a third bailout and keep the country in the eurozone.
Greek PM Alexis Tsipras conceded to a further swathe of austerity measures and economic reforms after more than 16 hours of negotiations in Brussels. He has agreed to immediately pass laws to further reform the tax and pension system, liberalise the labour market, and open up closed professions. Sunday trading laws will be relaxed, and even milk producers and bakers will be deregulated.
The Financial Times has dubbed it:
‘The most intrusive economic supervision programme ever mounted in the EU’.
Greece was forced to accept these measures after Germany piled intense pressure, as a price for a new deal. EU officials told us that Tsipras was subjected to “mental waterboarding” in closed-door meetings with Angela Merkel, Donald Tusk and Francois Hollande.
The plan must now be approved by the Athens parliament by Wednesday, and then voted through various national parliaments. If agreement is reached, talks can then begin towards a a new three-year bailout worth up to €86bn (£61bn), accompanied by further monitoring by Greece’s creditors.
The deal appears to end Greece’s five-month battle with its creditors, which has gripped the eurozone, dominated the political agenda and alarmed the markets.
Emerging from the summit, Tsipras admitted it had been tough – but insisted he had won concessions on debt relief (sometime in the future) as well as the medium-term funding plan.
He also managed to persuade the eurozone that a new investment fund, that will manage and sell off €50bn Greek assets, would be based in Athens not Luxembourg.
But generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone.”

(Graeme Wearden and Helen Davidson. “Greek debt crisis: deal reached after marathon all-night summit – as it happened”. The Guardian 13 July 2015;
http://www.theguardian.com/business/live/2015/jul/12/greek-debt-crisis-eu-leaders-meeting-cancelled-no-deal-live)

Yanis Varoufakis summed the story up to that point as a “coup”:

“The recent Euro Summit is indeed nothing short of the culmination of a coup. In 1967 it was the tanks that foreign powers used to end Greek democracy. In my interview with Philip Adams, on ABC Radio National’s LNL, I claimed that in 2015 another coup was staged by foreign powers using, instead of tanks, Greece’s banks. Perhaps the main economic difference is that, whereas in 1967 Greece’s public property was not targeted, in 2015 the powers behind the coup demanded the handing over of all remaining public assets, so that they would be put into the servicing of our un-payble, unsustainable debt.”

(Varoufakis, Y. “On the Euro Summit’s Statement on Greece: First thoughts”; 14 July 2015. http://yanisvaroufakis.eu/2015/07/14/on-the-euro-summits-statement-on-greece-first-thoughts/)

While the Referendum gave a clear signal that the Greek people had rejected the spirit of compromise being forced by the Western Banks – the questions had been framed deliberately imprecisely. It did not ask the Greek people to consider the option of leaving the Eurozone as such. This allowed the Tsipras government to posture it did “not have a mandate” to reject the harsh terms of the Troika and move Greece to leave the Eurozone.

Inevitably this will lead to a rupture of the Syriza United Front:

“…. Syriza, which is in coalition with the rightwing populist Independent party, is expected to meet huge opposition from within its own ranks and from trade unions and youth groups that viewed the referendum as a vote against any austerity.

Panagiotis Lafazanis, the energy minister and influential hard-leftist, who on Wednesday welcomed a deal for a new €2bn gas pipeline from Russia, has ruled out a new tough austerity package. Lafazanis represents around 70 Syriza MPs who have previously taken a hard line against further austerity measures and could yet wreck any top-level agreement.”

(Phillip Inman, Graeme Wearden and Helena Smith: Guardian Ibid; 9 July 2015)

The concession made by Greece in accepting the further round of “austerity” measures is huge:

“The new proposals include sweeping reforms to VAT to raise 1% of GDP and moving more items to the 23% top rate of tax, including restaurants – a key battleground before. Greece has also dropped its opposition to abolishing the lower VAT rate on its islands, starting with the most popular tourist attractions. Athens also appears to have made significant concessions on pensions, agreeing to phase out solidarity payments for the poorest pensioners by December 2019, a year earlier than planned. It would also raise the retirement age to 67 by 2022. And it has agreed to raise corporation tax to 28%, as the IMF wanted, not 29%, as previously targeted.
Greece is also proposing to cut military spending by €100m in 2015 and by €200m in 2016, and implement changes to reform and improve tax collection and fight tax evasion. It will also press on with privatisation of state assets including regional airports and ports. Some government MPs had vowed to reverse this.
In return, Greece appears to be seeking a three-year loan deal worth €53.5bn…….
Several EU leaders said the troika of creditors – the European commission, the International Monetary Fund and the European Central Bank – must also make concessions to secure Greece’s future inside the eurozone.
Donald Tusk, who chairs the EU summits, said European officials would make an effort to address Greece’s key request for a debt write-off. …
On Thursday, the German finance minister, Wolfgang Schäuble said the possibility of some kind of debt relief would be discussed over coming days, although he cautioned it may not provide much help.
“The room for manoeuvre through debt reprofiling or restructuring is very small,” he said.
Greece has long argued its debt is too high to be paid back and that the country requires some form of debt relief. The IMF agrees, but key European states such as Germany have resisted the idea…..
German ECB governing council member Jens Weidmann argued Greek banks should not get more emergency credit from the central bank unless a bailout deal is struck.
 He said it was up to eurozone governments and Greek leaders themselves to rescue Greece.
The central bank “has no mandate to safeguard the solvency of banks and governments,” he said in a speech.
The ECB capped emergency credit to Greek banks amid doubt over whether the country will win further rescue loans from other countries. The banks closed and limited cash withdrawals because they had no other way to replace deposits.
Weidmann said he welcomed the fact that central bank credit “is no longer being used to finance capital flight caused by the Greek government.”
http://www.theguardian.com/business/2015/jul/09/greece-debt-crisis-athens-accepts-harsh-austerity-as-bailout-deal-nears

11. CONCLUSION

At the time of writing the final scenes in the disintegrating Syriza “United Front’ parliament have yet to be played out.

However the shrewdest elements of the non-Marxist-Leninist left recognize that the time is long due, for Greece to exit the European Union to regain its own measure of independence. Many on the left agree that this will be hard.

The leading proponent of this has been Costas Lapavitas – a MP in the Greek Parliament but not a member of Syriza – and radical economist. His view has been put in several books and articles for example these cited here: ([1], Lapvitas, C. Interview with Sebastien Budgen: ‘Greece: Phase Two”; in Jacobin. At https://www.jacobinmag.com/2015/03/lapavitsas-varoufakis-grexit-syriza/ [2] Costas Lapavitsas: The Syriza strategy has come to an end’. Interview with Press Project and Der Spiegel; http://www.thepressproject.gr/details_en.php?aid=74530. [3[ The crisis of the Eurozone”, July 10, 2010 ; Greek Left Review. At https://greekleftreview.wordpress.com/2010/07/10/the-crisis-of-the-eurozone/)

Although this view has certainly been challenged (Bach, Paula. “Exit the Euro? Polemic with Greek Economist Costas Lapavitsas.” Left Voice News Project, at: http://leftvoice.org/Exit-the-Euro-Polemic-with-Greek-Economist-Costas-Lapavitsas).

Marxist-Leninists argue that leaving the imperialist bloc of the EU – would be the correct policy for the working class, peasantry and poor sections of Greece.

When asked on how the Anasintaxi Organization sees the future events, they replied:

“Both reformist parties (“K”KE and SYRIZA) have accepted the Greek capital’s present strategic choice to maintain the country in the EU and the Eurozone… In order to contribute to the growth of the working class struggles and the rise of the revolutionary movement, the Movement for Reorganization of KKE (1918-1955) is striving, under very unfavorable conditions, to achieve the following:

A) Together with the reorganization, the re-birth of KKE (1918-1955) and the ideological-political-organizational unity of the Greek communists on basis of Marxism-Leninism-Stalinism and the dissemination of the Marxist conception of socialism-communism;
it actively supports and participates in the struggle of the working class and all the toilers against the reduction of salaries and pensions, against the deterioration of their position in general and supports all demands that aim to defend their (economic, trade-union, social and political) class interests in opposition to the foreign and Greek capital and in particular, the EU monopolies which impose directly the current austerity measures.

B) The formation of united, massive and truly independent trade unions whose aim will be the resistance to the extreme neo-liberal policy of austerity and the further development of the workers’ and people’s struggles combined with the struggle against nationalism-racism-fascism-Nazism (all very dangerous enemies of the working class and the people) as well as “anti-Germanism” and “anti-Hellenism” (the two sides of the bourgeois nationalism) incited, during this period, by the nationalist circles of the two countries. At the same time, these new trade unions will put forward the demand for the exit of the country from the imperialist EU not only because of the increasing dependence and the deterioration of the Greece-EU relations at the expense of our country but also because of the fact that the economic policy and the hard, anti-popular measures are directly imposed by Brussels.

C) The cooperation between the consistent left-wing, anti-imperialist and anti-fascist forces that will aim at the formation of a massive, anti-fascist, popular, front that will fight against the dependence on imperialism, in general, and the exit of Greece from the EU, the Eurozone and NATO.”

(Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html

APPENDIX: Select Chronology 1975 to 2015:
Amended from BBC version at: http://www.bbc.com/news/world-europe-17373216

1975 – New constitution declares Greece a parliamentary republic with some executive powers vested in a president.
1980 – Conservative Constantine Karamanlis elected president.
1981 – Greece joins EU. Andreas Papandreou’s Socialist Party (Pasok) wins elections.
1985 – President Karamanlis resigns in protest at government plans to reduce powers of president. Christos Sartzetakis becomes head of state.
1990 – Centre-right New Democracy party forms government under party leader Constantine Mitsotakis
1993 – Election returns Papandreou to power for PASOK.
2004 March – Conservative New Democracy party led by Costas Karamanlis wins general election, ending over a decade of Pasok government.
2005 April – Parliament ratifies EU constitution.
2005 December – Amid protest strikes by transport workers, parliament approves changes to labour laws, including an end to jobs for life in the public sector. The plans sparked industrial action in June.
2006 March – Public sector workers strike over pay and in protest at government plans to scrap job security laws and intensify privatisation.
2007 September – Minister Karamanlis wins a narrow majority in the poll. He says he now has a mandate for more reforms but also pledges to make national unity a priority.
2008 March – Parliament narrowly passes government’s controversial pension reform bill in face of general public sector strike and mass protests.
2008 December – Students and young people take to city streets in nationwide protests and riots over the police killing of a 15-year-old boy in Athens. Major public-sector strikes coincide to increase pressure on the government over its economic policies.

Economic meltdown
2002 January – Euro replaces drachma.
2004 December – European Commission issues formal warning after Greece found to have falsified budget deficit data in run-up to joining eurozone.
2009 October – Opposition Pasok socialist party wins snap election called by PM Karamanlis. George Papandreou takes over as new prime minister.

Debt crisis
2009 December – Greece’s credit rating is downgraded by one of world’s three leading rating agencies amid fears the government could default on its ballooning debt. PM Papandreou announces programme of tough public spending cuts.
2010 January- March – Government announces two more rounds of tough austerity measures, and faces mass protests and strikes.
2010 April/May – Fears of a possible default on Greece’s debts prompt eurozone countries to approve a $145bn (110bn euros; £91bn) rescue package for the country, in return for a round of even more stringent austerity measures. Trade unions call a general strike.
2011 June – 24-hour general strike. Tens of thousands of protesters march on parliament to oppose government efforts to pass new austerity laws.

Crisis deepens
2011 July – European Union leaders agree a major bailout for Greece over its debt crisis by channelling 109bn euros through the European Financial Stability Facility.
All three main credit ratings agencies cut Greece’s rating to a level associated with a substantial risk of default.
2011 October – Eurozone leaders agree a 50% debt write-off for Greece in return for further austerity measures. PM George Papandreou casts the deal into doubt by announcing a referendum on the rescue package.
2011 November – Faced with a storm of criticism over his referendum plan, Mr Papandreou withdraws it and then announces his resignation.
Lucas Papademos, a former head of the Bank of Greece, becomes interim prime minister of a New Democracy/Pasok coalition with the task of getting the country back on track in time for elections scheduled provisionally for the spring of 2012.

New bailout plan
2012 February – Against a background of violent protests on the streets of Athens, the Greek parliament approves a new package of tough austerity measures agreed with the EU as the price of a 130bn euro bailout.
2012 March – Greece reaches a “debt swap” deal with its private-sector lenders, enabling it to halve its massive debt load.
2012 May – Early parliamentary elections see support for coalition parties New Democracy and Pasok slump, with a increase in support for anti-austerity parties of the far left and right. The three top-ranking parties fail to form a working coalition and President Papoulias calls fresh elections for 17 June. The far-right Golden Dawn party based its 2012 election campaign on hostility towards immigrants
2012 June – Further parliamentary elections boost New Democracy, albeit leaving it without a majority. Leader Antonis Samaras assembles a coalition with third-placed Pasok and smaller groups to pursue the austerity programme.

Anti-austerity protests
2012 September – Trade unions stage 24-hour general strike against government austerity measures. Police fire tear gas to disperse anarchist rally outside parliament.
2012 October – Parliament passes a 13.5bn-euro austerity plan aimed at securing the next round of EU and IMF bailout loans; the package – the fourth in three years – includes tax rises and pension cuts.
2013 January – Unemployment rises to 26.8% – the highest rate in the EU.
2013 April – Youth unemployment climbs to almost 60%.
Public broadcaster closed
2013 June – The government announces without warning that it is suspending the state broadcaster ERT in a bid to save money. The decision gives rise to mass protests and a 24-hour strike.
2013 August – New state broadcaster EDT is launched.
2013 September – Government launches crackdown on far-right Golden Dawn party. Party leader Nikolaos Michaloliakos and five other Golden Dawn MPs are arrested on charges including assault, money laundering and belonging to a criminal organisation.
2013 December – Parliament passes 2014 budget, which is predicated on a return to growth after six years of recession. Prime Minister Samaras hails this as the first decisive step towards exiting the bailout.
2014 February – Greek unemployment reaches a record high of 28%.
2014 March – Parliament narrowly approves a big reform package that will open more retail sectors to competition, part of a deal between Greece and its international lenders.
2014 April – Eurozone finance ministers say they’ll release more than 8bn euros of further bailout funds to Greece.
Greece raises nearly four billion dollars from world financial markets in its first sale of long-term government bonds for four years, in a move seen as an important step in the country’s economic recovery.

Left in power
2014 May – Anti-austerity, radical leftist Syriza coalition wins European election with 26.6% of the vote.
2014 December – Parliament’s failure to elect a new president sparks a political crisis and prompts early elections.
2015 January – Alexis Tsipras of Syriza becomes prime minister after winning parliamentary elections, and forms a coalition with the nationalist Independent Greeks party.
2015 February – The government negotiates a four-month extension to Greece’s bailout in return for dropping key anti-austerity measures and undertaking a eurozone-approved reform programme.
2015 June – European Central Bank ends emergency funding. Greece closes banks, imposes capital controls and schedules referendum on European Union bailout terms for 5 July.Government reinstates former state broadcaster ERT as promised in Syriza manifesto.
2015 July – Greece becomes first developed country to miss a payment to the International Monetary Fund, having already delayed it

Anasintaxi (KKE 1918-55): The New Bailout Agreement

 

20150617-antiee

  • Crude, barbarous trampling on the national sovereignty of the country by the EU imperialists
  • Violent enslavement of the Greek people with the support of the subservient bourgeois class and its parties (great-bourgeois, reformist, fascist)

The new bailout agreement constitutes a complete surrender to the fascist extortion of the EU representatives (primarily of Germany and its satellite states) and is in total opposition to the will of the Greek people expressed with the NO vote in the recent referendum; in the name of the detrimental membership of the country in the Eurozone.

It cannot be left unnoticed that there were and there still are plans made by the EU imperialists to remove the elected government and replace it with another one without elections as it was the case with the government led by the former banker Papadimos in 2011.

The only path for the working class and the people is the one of class struggle against the imperialist intervention in the internal affairs of the country and the new harsh, barbarous, anti-popular measures.  At the same time, the plans of forming a government without elections, clearly a fascist constitutional violation, should be disrupted.  The central slogan of this struggle cannot be any other than the immediate exit from EU-EMU-Eurozone.

Movement for the Reorganisation of KKE 1918-55

Source

Compilation of Interviews and Correspondence with J.V. Stalin

joseph-stalin-1949

TABLE OF CONTENTS

Reply to the Letter of Mr. Richardson, Representative of the Associated Press News Agency
The Importance and Tasks of the Complaints-Bureaus
Marxism versus Liberalism: An Interview with H.G. Wells
Interview Between J. Stalin and Roy Howard
Replies to the Questions of Ralph V. Barnes
Talk With the German Author Emil Ludwig
Mr. Campbell Stretches the Truth
Talk With Colonel Robins
Greetings to the Red Army on its Fifteenth Anniversary
Reply to A Letter From Mr. Barnes

Reply to the Letter of Mr. Richardson, Representative of the Associated Press News Agency

To Mr. Richardson,

This is not the first time that false rumours that I am ill are circulating in the bourgeois press. Obviously, there are people to whose interest it is that I should fall ill seriously and for a long time; if not worse. Perhaps it is not very tactful of me, but unfortunately I have no data capable of gratifying these gentlemen.

Sad though it may be, nothing will avail against facts, viz., that I am in perfect health. As for Mr. Zondeck, he can attend to the health of other comrades, which is why he has been invited to come to the U.S.S.R.

J. Stalin

* In a letter dated March 25, 1932, addressed to J.V.Stalin, Mr Richardson , representative of Associated Press news agency asked if about the truth of the rumors in the foreign press that the Berlin physician m Zondeck, had been invited to Moscow to treat J.V.Stalin

The Importance and Tasks of the Complaints-Bureaus

The work of the Complaints Bureaus (1) is of tremendous importance in the struggle to remove shortcomings in our Party, Soviet, economic, trade-union and Komsomol apparatuses, in improving our administrative apparatus.

Lenin said that without an apparatus we should have perished long ago, and that without a systematic, stubborn struggle to improve the apparatus we should certainly perish. This means that resolute and systematic struggle against conservatism, bureaucracy and red tape in our apparatus is an essential task of the Party, the working class and all the working people of our country.

The tremendous importance of the Complaints Bureaus consists in their being a serious means of carrying out Lenin’s behest concerning the struggle to improve the apparatus.

It is indisputable that the Complaints Bureaus have considerable achievements to their credit in this field.

The task is to consolidate the results attained and to achieve decisive successes in this matter. There can be no doubt that if the Complaints Bureaus rally around them all the more active sections of the workers and collective farmers, drawing them into the work of administering the state and attentively heeding the voice of the working people both within and without the Party, these decisive successes will be won.

Let us hope that the five-day review of the work of the Complaints Bureaus will serve as a stimulus for further expansion of their work along the line indicated by our teacher Lenin.

Notes

(1) The Complaints Bureau was set up in April 1919 under the People’s Commissariat of State Control, which in 1920 was changed to the Peoples’ Commissariat of Workers’ And peasant’ Inspection. The tasks and scoop of the work of the Central Bureau of Complaints & Applications were defined by a regulation dated May 4, 1919, and those of the local departments the Central Bureau by a regulation dated May 24th, 1919, published over the signature of Stalin, People’s Commissar of State Control. From the day they were formed the Central and local bureaus did much work in investigating and checking complaints and statements of working people, enlisting in this work an extensive active of workers and peasants. From February 1934 the Bureau of Complaints and Applications was included in the system of the Soviet Control Commission under the Council of People’s Commissariats, and from September 1940 it has formed a department of the Peoples Commissariat (subsequently Ministry) of State Control of the USSR.

Stalin’s article, “The Importance of the USSR Complaints Bureaus” was written in connection with the all-Union five-day review and checking of the work of the bureaus carried out on April 9-14th, 1932, by a decision of the Presidium of the Central Control Commission of the CPSU(B), and the Collegium of the People’s Commissariat of the USSR.

Marxism versus Liberalism: An Interview with H.G. Wells

23 July 1934

Wells: I am very much obliged to you, Mr. Stalin, for agreeing to see me. I was in the United States recently. I had a long conversation with President Roosevelt and tried to ascertain what his leading ideas were. Now I have come to ask you what you are doing to change the world. . .

Stalin: Not so very much.

Wells: I wander around the world as a common man and, as a common man, observe what is going on around me.

Stalin: Important public men like yourself are not “common men”. Of course, history alone can show how important this or that public man has been; at all events, you do not look at the world as a “common man.”

Wells: I am not pretending humility. What I mean is that I try to see the world through the eyes of the common man, and not as a party politician or a responsible administrator. My visit to the United States excited my mind. The old financial world is collapsing; the economic life of the country is being reorganized on new lines. Lenin said : “We must learn to do business, learn this from the capitalists.”

Today the capitalists have to learn from you, to grasp the spirit of socialism. It seems to me that what is taking place in the United States is a profound reorganisation, the creation of planned, that is, socialist, economy. You and Roosevelt begin from two different starting points. But is there not a relation in ideas, a kinship of ideas, between Moscow and Washington? In Washington I was struck by the same thing I see going on here; they are building offices, they are creating a number of state regulation bodies, they are organising a long-needed Civil Service. Their need, like yours, is directive ability.

Stalin: The United States is pursuing a different aim from that which we are pursuing in the U.S.S.R.

The aim which the Americans are pursuing, arose out of the economic troubles, out of the economic crisis. The Americans want to rid themselves of the crisis on the basis of private capitalist activity, without changing the economic basis. They are trying to reduce to a minimum the ruin, the losses caused by the existing economic system. Here, however, as you know, in place of the old, destroyed economic basis, an entirely different, a new economic basis has been created. Even if the Americans you mention partly achieve their aim, i.e., reduce these losses to a minimum, they will not destroy the roots of the anarchy which is inherent in the existing capitalist system. They are preserving the economic system which must inevitably lead, and cannot but lead, to anarchy in production. Thus, at best, it will be a matter, not of the reorganisation of society, not of abolishing the old social system which gives rise to anarchy and crises, but of restricting certain of its excesses. Subjectively, perhaps, these Americans think they are reorganising society; objectively, however, they are preserving the present basis of society.

That is why, objectively, there will be no reorganisation of society.

Nor will there be planned economy. What is planned economy? What are some of its attributes? Planned economy tries to abolish unemployment. Let us suppose it is possible, while preserving the capitalist system, to reduce unemployment to a certain minimum.

But surely, no capitalist would ever agree to the complete abolition of unemployment, to the abolition of the reserve army of unemployed, the purpose of which is to bring pressure on the labour market, to ensure a supply of cheap labour. Here you have one of the rents in the “planned economy” of bourgeois society. Furthermore, planned economy presupposes increased output in those branches of industry which produce goods that the masses of the people need particularly. But you know that the expansion of production under capitalism takes place for entirely different motives, that capital flows into those branches of economy in which the rate of profit is highest. You will never compel a capitalist to incur loss to himself and agree to a lower rate of profit for the sake of satisfying the needs of the people. Without getting rid of the capitalists, without abolishing the principle of private property in the means of production, it is impossible to create planned economy.

Wells: I agree with much of what you have said.

But I would like to stress the point that if a country as a whole adopts the principle of planned economy, if the government, gradually, step by step, begins consistently to apply this principle, the financial oligarchy will at last be abolished and socialism, in the Anglo-Saxon meaning of the word, will be brought about. The effect of the ideas of Roosevelt’s “New Deal” is most powerful, and in my opinion they are socialist ideas. It seems to me that instead of stressing the antagonism between the two worlds, we should, in the present circumstances, strive to establish a common tongue for all the constructive forces.

Stalin: In speaking of the impossibility of realising the principles of planned economy while preserving the economic basis of capitalism, I do not in the least desire to belittle the outstanding personal qualities of Roosevelt, his initiative, courage and determination. Undoubtedly, Roosevelt stands out as one of the strongest figures among all the captains of the contemporary capitalist world. That is why I would like, once again, to emphasize the point that my conviction that planned economy is impossible under the conditions of capitalism, does not mean that I have any doubts about the personal abilities, talent and courage of President Roosevelt. But if the circumstances are unfavourable, the most talented captain cannot reach the goal you refer to. .

Theoretically, of course, the possibility of marching gradually, step by step, under the conditions of capitalism, towards the goal which you call socialism in the Anglo-Saxon meaning of the word, is not precluded. .

But what will this “socialism” be? At best, bridling to some extent, the most unbridled of individual representatives of capitalist profit, some increase in the application of the principle of regulation in national economy. That is all very well. But as soon as Roosevelt, or any other captain in the contemporary bourgeois world, proceeds to undertake something serious against the foundation of capitalism, he will inevitably suffer utter defeat. The banks, the industries, the large enterprises, the large farms are not in Roosevelt’s hands. All these are private property. The railroads, the mercantile fleet, all these belong to private owners. And, finally, the army of skilled workers, the engineers, the technicians, these too are not at Roosevelt’s command, they are at the command of the private owners; they all work for the private owners. We must not forget the functions of the State in the bourgeois world.

The State is an institution that organises the defence of the country, organises the maintenance of “order”; it is an apparatus for collecting taxes. The capitalist State does not deal much with economy in the strict sense of the word; the latter is not in the hands of the State. On the contrary, the State is in the hands of capitalist economy. That is why I fear that in spite of all his energies and abilities, Roosevelt will not achieve the goal you mention, if indeed that is his goal. Perhaps, in the course of several generations it will be possible to approach this goal somewhat; but I personally think that even this is not very probable. .

Wells: Perhaps, I believe more strongly in the economic interpretation of politics than you do. Huge forces driving towards better organisation, for the better functioning of the community, that is, for socialism, have been brought into action by invention and modern science. Organisation, and the regulation of individual action, have become mechanical necessities, irrespective of social theories. If we begin with the State control of the banks and then follow with the control of transport, of the heavy industries of industry in general, of commerce, etc., such an all-embracing control will be equivalent to the State ownership of all branches of national economy. This will be the process of socialisation. Socialism and individualism are not opposites like black and white. .

There are many intermediate stages between them. .

There is individualism that borders on brigandage, and there is discipline and organisation that are the equivalent of socialism. The introduction of planned economy depends, to a large degree, upon the organisers of economy, upon the skilled technical intelligentsia, who, step by step, can be converted to the socialist principles of organisation. And this is the most important thing. Because organisation comes before socialism. It is the more important fact. .

Without organisation the socialist idea is a mere idea. .

Stalin: There is no, nor should there be, irreconcilable contrast between the individual and the collective, between the interests of the individual person and the interests of the collective. There should be no such contrast, because collectivism, socialism, does not deny, but combines individual interests with the interests of the collective. Socialism cannot abstract itself from individual interests. Socialist society alone can most fully satisfy these personal interests. More than that; socialist society alone can firmly safeguard the interests of the individual. In this sense there is no irreconcilable contrast between “individualism” and socialism. But can we deny the contrast between classes, between the propertied class, the capitalist class, and the toiling class, the proletarian class?

On the one hand we have the propertied class which owns the banks, the factories, the mines, transport, the plantations in colonies. These people see nothing but their own interests, their striving after profits.

They do not submit to the will of the collective; they strive to subordinate every collective to their will. On the other hand we have the class of the poor, the exploited class, which owns neither factories nor works, nor banks, which is compelled to live by selling its labour power to the capitalists which lacks the opportunity to satisfy its most elementary requirements. How can such opposite interests and strivings be reconciled? As far as I know, Roosevelt has not succeeded in finding the path of conciliation between these interests. And it is impossible, as experience has shown. Incidentally, you know the situation in the United States better than I do as I have never been there and I watch American affairs mainly from literature. But I have some experience in fighting for socialism, and this experience tells me that if Roosevelt makes a real attempt to satisfy the interests of the proletarian class at the expense of the capitalist class, the latter will put another president in his place. The capitalists will say : Presidents come and presidents go, but we go on forever; if this or that president does not protect our interests, we shall find another. What can the president oppose to the will of the capitalist class?

Wells: I object to this simplified classification of mankind into poor and rich. Of course there is a category of people which strive only for profit. But are not these people regarded as nuisances in the West just as much as here? Are there not plenty of people in the West for whom profit is not an end, who own a certain amount of wealth, who want to invest and obtain a profit from this investment, but who do not regard this as the main object? They regard investment as an inconvenient necessity. Are there not plenty of capable and devoted engineers, organisers of economy, whose activities are stimulated by something other than profit? In my opinion there is a numerous class of capable people who admit that the present system is unsatisfactory and who are destined to play a great role in future socialist society. During the past few years I have been much engaged in and have thought of the need for conducting propaganda in favour of socialism and cosmopolitanism among wide circles of engineers, airmen, military technical people, etc. It is useless to approach these circles with two-track class war propaganda. These people understand the condition of the world. They understand that it is a bloody muddle, but they regard your simple class-war antagonism as nonsense.

Stalin: You object to the simplified classification of mankind into rich and poor. Of course there is a middle stratum, there is the technical intelligentsia that you have mentioned and among which there are very good and very honest people. Among them there are also dishonest and wicked people, there are all sorts of people among them, But first of all mankind is divided into rich and poor, into property owners and exploited; and to abstract oneself from this fundamental division and from the antagonism between poor and rich means abstracting oneself from the fundamental fact. I do not deny the existence of intermediate middle strata, which either take the side of one or the other of these two conflicting classes, or else take up a neutral or semi-neutral position in this struggle. But, I repeat, to abstract oneself from this fundamental division in society and from the fundamental struggle between the two main classes means ignoring facts. The struggle is going on and will continue. The outcome will be determined by the proletarian class, the working class.

Wells: But are there not many people who are not poor, but who work and work productively?

Stalin: Of course, there are small landowners, artisans, small traders, but it is not these people who decide the fate of a country, but the toiling masses, who produce all the things society requires.

Wells: But there are very different kinds of capitalists. There are capitalists who only think about profit, about getting rich; but there are also those who are prepared to make sacrifices. Take old Morgan for example. He only thought about profit; he was a parasite on society, simply, he merely accumulated wealth. But take Rockefeller. He is a brilliant organiser; he has set an example of how to organise the delivery of oil that is worthy of emulation. Or take Ford. Of course Ford is selfish. But is he not a passionate organiser of rationalised production from whom you take lessons? I would like to emphasise the fact that recently an important change in opinion towards the U.S.S.R. has taken place in English speaking countries. The reason for this, first of all, is the position of Japan and the events in Germany. But there are other reasons besides those arising from international politics. There is a more profound reason namely, the recognition by many people of the fact that the system based on private profit is breaking down. Under these circumstances, it seems to me, we must not bring to the forefront the antagonism between the two worlds, but should strive to combine all the constructive movements, all the constructive forces in one line as much as possible. It seems to me that I am more to the Left than you, Mr. Stalin; I think the old system is nearer to its end than you think.

Stalin: In speaking of the capitalists who strive only for profit, only to get rich, I do not want to say that these are the most worthless people, capable of nothing else. Many of them undoubtedly possess great organising talent, which I do not dream of denying. We Soviet people learn a great deal from the capitalists. And Morgan, whom you characterise so unfavourably, was undoubtedly a good, capable organiser. But if you mean people who are prepared to reconstruct the world, of course, you will not be able to find them in the ranks of those who faithfully serve the cause of profit. We and they stand at opposite poles. You mentioned Ford. Of course, he is a capable organiser of production. But don’t you know his attitude to the working class?

Don’t you know how many workers he throws on the street? The capitalist is riveted to profit; and no power on earth can tear him away from it. Capitalism will be abolished, not by “organisers” of production not by the technical intelligentsia, but by the working class, because the aforementioned strata do not play an independent role. The engineer, the organiser of production does not work as he would like to, but as he is ordered, in such a way as to serve the interests of his employers. There are exceptions of course; there are people in this stratum who have awakened from the intoxication of capitalism. The technical intelligentsia can, under certain conditions, perform miracles and greatly benefit mankind. But it can also cause great harm. We Soviet people have not a little experience of the technical intelligentsia.

After the October Revolution, a certain section of the technical intelligentsia refused to take part in the work of constructing the new society; they opposed this work of construction and sabotaged it.

We did all we possibly could to bring the technical intelligentsia into this work of construction; we tried this way and that. Not a little time passed before our technical intelligentsia agreed actively to assist the new system. Today the best section of this technical intelligentsia are in the front rank of the builders of socialist society. Having this experience we are far from underestimating the good and the bad sides of the technical intelligentsia and we know that on the one hand it can do harm, and on the other hand, it can perform “miracles.” Of course, things would be different if it were possible, at one stroke, spiritually to tear the technical intelligentsia away from the capitalist world. But that is utopia.

Are there many of the technical intelligentsia who would dare break away from the bourgeois world and set to work reconstructing society? Do you think there are many people of this kind, say, in England or in France? No, there are few who would be willing to break away from their employers and begin reconstructing the world.

Besides, can we lose sight of the fact that in order to transform the world it is necessary to have political power? It seems to me, Mr. Wells, that you greatly underestimate the question of political power, that it entirely drops out of your conception.

What can those, even with the best intentions in the world, do if they are unable to raise the question of seizing power, and do not possess power? At best they can help the class which takes power, but they cannot change the world themselves. This can only be done by a great class which will take the place of the capitalist class and become the sovereign master as the latter was before. This class is the working class. Of course, the assistance of the technical intelligentsia must be accepted; and the latter in turn, must be assisted. But it must not be thought that the technical intelligentsia can play an independent historical role. The transformation of the world is a great, complicated and painful process. For this task a great class is required. Big ships go on long voyages.

Wells: Yes, but for long voyages a captain and navigator are required.

Stalin: That is true; but what is first required for a long voyage is a big ship. What is a navigator without a ship? An idle man, Wells : The big ship is humanity, not a class.

Stalin: You, Mr. Wells, evidently start out with the assumption that all men are good. I, however, do not forget that there are many wicked men. I do not believe in the goodness of the bourgeoisie.

Wells: I remember the situation with regard to the technical intelligentsia several decades ago. At that time the technical intelligentsia was numerically small, but there was much to do and every engineer, technician and intellectual found his opportunity. That is why the technical intelligentsia was the least revolutionary class. Now, however, there is a superabundance of technical intellectuals, and their mentality has changed very sharply. The skilled man, who would formerly never listen to revolutionary talk, is now greatly interested in it. Recently I was dining with the Royal Society, our great English scientific society. The President’s speech was a speech for social planning and scientific control. Thirty years ago, they would not have listened to what I say to them now. Today, the man at the head of the Royal Society holds revolutionary views and insists on the scientific reorganisation of human society. Mentality changes. Your class-war propaganda has not kept pace with these facts.

Stalin: Yes, I know this, and this is to be explained by the fact that capitalist society is now in a cul-de sac. The capitalists are seeking, but cannot find a way out of this cul-de-sac that would be compatible with the dignity of this class, compatible with the interests of this class. They could, to some extent, crawl out of the crisis on their hands and knees, but they cannot find an exit that would enable them to walk out of it with head raised high, a way out that would not fundamentally disturb the interests of capitalism. This, of course, is realised by wide circles of the technical intelligentsia. A large section of it is beginning to realise the community of its interests with those of the class which is capable of pointing the way out of the cul-de-sac.

Wells: You of all people know something about revolutions, Mr. Stalin, from the practical side. Do the masses ever rise? Is it not an established truth that all revolutions are made by a minority?

Stalin: To bring about a revolution a leading revolutionary minority is required; but the most talented, devoted and energetic minority would be helpless if it did not rely upon the at least passive support of millions.

Wells: At least passive? Perhaps sub-conscious?

Stalin: Partly also the semi-instinctive and semiconscious, but without the support of millions, the best minority is impotent.

Wells: I watch communist propaganda in the West and it seems to me that in modern conditions this propaganda sounds very old-fashioned, because it is insurrectionary propaganda. Propaganda in favour of the violent overthrow of the social system was all very well when it was directed against tyranny. But under modern conditions, when the system is collapsing anyhow, stress should be laid on efficiency, on competence, on productiveness, and not on insurrection.

It seems to me that the insurrectionary note is obsolete. The communist propaganda in the West is a nuisance to constructive-minded people.

Stalin: Of course the old system is breaking down and decaying. That is true. But it is also true that new efforts are being made by other methods, by every means, to protect, to save this dying system.

You draw a wrong conclusion from a correct postulate.

You rightly state that the old world is breaking down.

But you are wrong in thinking that it is breaking down of its own accord. No, the substitution of one social system for another is a complicated and long revolutionary process. It is not simply a spontaneous process, but a struggle, it is a process connected with the clash of classes. Capitalism is decaying, but it must not be compared simply with a tree which has decayed to such an extent that it must fall to the ground of its own accord. No, revolution, the substitution of one social system for another, has always been a struggle, a painful and a cruel struggle, a life and death struggle. And every time the people of the new world came into power they had to defend themselves against the attempts of the old world to restore the old power by force; these people of the new world always had to be on the alert, always had to be ready to repel the attacks of the old world upon the new system.

Yes, you are right when you say that the old social system is breaking down; but it is not breaking down of its own accord. Take Fascism for example.

Fascism is a reactionary force which is trying to preserve the old system by means of violence. What will you do with the fascists? Argue with them? Try to convince them? But this will have no effect upon them at all. Communists do not in the least idealise the methods of violence. But they, the Communists, do not want to be taken by surprise, they cannot count on the old world voluntarily departing from the stage, they see that the old system is violently defending itself, and that is why the Communists say to the working class : Answer violence with violence; do all you can to prevent the old dying order from crushing you, do not permit it to put manacles on your hands, on the hands with which you will overthrow the old system. As you see, the Communists regard the substitution of one social system for another, not simply as a spontaneous and peaceful process, but as a complicated, long and violent process. Communists cannot ignore facts.

Wells: But look at what is now going on in the capitalist world. The collapse is not a simple one; it is the outbreak of reactionary violence which is degenerating to gangsterism. And it seems to me that when it comes to a conflict with reactionary and unintelligent violence, socialists can appeal to the law, and instead of regarding the police as the enemy they should support them in the fight against the reactionaries. I think that it is useless operating with the methods of the old insurrectionary socialism.

Stalin: The Communists base themselves on rich historical experience which teaches that obsolete classes do not voluntarily abandon the stage of history.

Recall the history of England in the seventeenth century. Did not many say that the old social system had decayed? But did it not, nevertheless, require a Cromwell to crush it by force?

Wells: Cromwell acted on the basis of the constitution and in the name of constitutional order.

Stalin: In the name of the constitution he resorted to violence, beheaded the king, dispersed Parliament, arrested some and beheaded others!

Or take an example from our history. Was it not clear for a long time that the tsarist system was decaying, was breaking down? But how much blood had to be shed in order to overthrow it?

And what about the October Revolution? Were there not plenty of people who knew that we alone, the Bolsheviks, were indicating the only correct way out?

Was it not clear that Russian capitalism had decayed?

But you know how great was the resistance, how much blood had to be shed in order to defend the October Revolution from all its enemies, internal and external.

Or take France at the end of the eighteenth century.

Long before 1789 it was clear to many how rotten the royal power, the feudal system was. But a popular insurrection, a clash of classes was not, could not be avoided. Why? Because the classes which must abandon the stage of history are the last to become convinced that their role is ended. It is impossible to convince them of this. They think that the fissures in the decaying edifice of the old order can be repaired and saved. That is why dying classes take to arms and resort to every means to save their existence as a ruling class.

Wells: But there were not a few lawyers at the head of the Great French Revolution.

Stalin: Do you deny the role of the intelligentsia in revolutionary movements? Was the Great French Revolution a lawyers’ revolution and not a popular revolution, which achieved victory by rousing vast masses of the people against feudalism and championed the interests of the Third Estate? And did the lawyers among the leaders of the Great French Revolution act in accordance with the laws of the old order? Did they not introduce new, bourgeois revolutionary laws?

The rich experience of history teaches that up to now not a single class has voluntarily made way for another class. There is no such precedent in world history. The Communists have learned this lesson of history. Communists would welcome the voluntary departure of the bourgeoisie. But such a turn of affairs is improbable; that is what experience teaches. That is why the Communists want to be prepared for the worst and call upon the working class to be vigilant, to be prepared for battle. Who wants a captain who lulls the vigilance of his army, a captain who does not understand that the enemy will not surrender, that he must be crushed? To be such a captain means deceiving, betraying the working class. That is why I think that what seems to you to be old-fashioned is in fact a measure of revolutionary expediency for the working class.

Wells: I do not deny that force has to be used, but I think the forms of the struggle should fit as closely as possible to the opportunities presented by the existing laws, which must be defended against reactionary attacks. There is no need to disorganise the old system because it is disorganising itself enough as it is. That is why it seems to me insurrection against the old order, against the law, is obsolete; old-fashioned. Incidentally, I deliberately exaggerate in order to bring the truth out more clearly. I can formulate my point of view in the following way :

first, I am for order; second, I attack the present system in so far as it cannot assure order; third, I think that class war propaganda may detach from socialism just those educated people whom socialism needs.

Stalin: In order to achieve a great object, an important social object, there must be a main force, a bulwark, a revolutionary class. Next it is necessary to organise the assistance of an auxiliary force for this main force; in this case this auxiliary force is the Party, to which the best forces of the intelligentsia belong. Just now you spoke about “educated people.” But what educated people did you have in mind? Were there not plenty of educated people on the side of the old order in England in the seventeenth century, in France at the end of the eighteenth century, and in Russia in the epoch of the October Revolution? The old order had in its service many highly educated people who defended the old order, who opposed the new order. Education is a weapon the effect of which is determined by the hands which wield it, by who is to be struck down.

Of course, the proletariat, socialism, needs highly educated people. Clearly, simpletons cannot help the proletariat to fight for socialism, to build a new society. I do not underestimate the role of the intelligentsia; on the contrary, I emphasize it. The question is, however, which intelligentsia are we discussing?

Because there are different kinds of intelligentsia.

Wells: There can be no revolution without a radical change in the educational system. It is sufficient to quote two examples: The example of the German Republic, which did not touch the old educational system, and therefore never became a republic; and the example of the British Labour Party, which lacks the determination to insist on a radical change in the educational system.

Stalin: That is a correct observation.

Permit me now to reply to your three points.

First, the main thing for the revolution is the existence of a social bulwark. This bulwark of the revolution is the working class.

Second, an auxiliary force is required, that which the Communists call a Party. To the Party belong the intelligent workers and those elements of the technical intelligentsia which are closely connected with the working class. The intelligentsia can be strong only if it combines with the working class.

If it opposes the working class it becomes a cipher.

Third, political power is required as a lever for change. The new political power creates the new laws, the new order, which is revolutionary order.

I do not stand for any kind of order. I stand for order that corresponds to the interests of the working class. If, however, any of the laws of the old order can be utilised in the interests of the struggle for the new order, the old laws should be utilised.

I cannot object to your postulate that the present system should be attacked in so far as it does not ensure the necessary order for the people.

And, finally, you are wrong if you think that the Communists are enamoured of violence. They would be very pleased to drop violent methods if the ruling class agreed to give way to the working class. But the experience of history speaks against such an assumption.

Wells: There was a case in the history of England, however, of a class voluntarily handing over power to another class. In the period between 1830 and 1870, the aristocracy, whose influence was still very considerable at the end of the eighteenth century, voluntarily, without a severe struggle, surrendered power to the bourgeoisie, which serves as a sentimental support of the monarchy. Subsequently, this transference of power led to the establishment of the rule of the financial oligarchy.

Stalin: But you have imperceptibly passed from questions of revolution to questions of reform. This is not the same thing. Don’t you think that the Chartist movement played a great role in the Reforms in England in the nineteenth century?

Wells: The Chartists did little and disappeared without leaving a trace.

Stalin: I do not agree with you. The Chartists, and the strike movement which they organised, played a great role; they compelled the ruling class to make a number of concessions in regard to the franchise, in regard to abolishing the so-called “rotten boroughs,” and in regard to some of the points of the “Charter.”

Chartism played a not unimportant historical role and compelled a section of the ruling classes to make certain concessions, reforms, in order to avert great shocks. Generally speaking, it must be said that of all the ruling classes, the ruling classes of England, both the aristocracy and the bourgeoisie, proved to be the cleverest, most flexible from the point of view of their class interests, from the point of view of maintaining their power. Take as an example, say, from modern history, the general strike in England in 1926. The first thing any other bourgeoisie would have done in the face of such an event, when the General Council of Trade Unions called for a strike, would have been to arrest the trade union leaders.

The British bourgeoisie did not do that, and it acted cleverly from the point of view of its own interests.

I cannot conceive of such a flexible strategy being employed by the bourgeoisie in the United States, Germany or France. In order to maintain their rule, the ruling classes of Great Britain have never foresworn small concessions, reforms. But it would be a mistake to think that these reforms were revolutionary.

Wells: You have a higher opinion of the ruling classes of my country than I have. But is there a great difference between a small revolution and a great reform? Is not a reform a small revolution?

Stalin: Owing to pressure from below, the pressure of the masses, the bourgeoisie may sometimes concede certain partial reforms while remaining on the basis of the existing social-economic system.

Acting in this way, it calculates that these concessions are necessary in order to preserve its class rule. This is the essence of reform. Revolution, however, means the transference of power from one class to another. That is why it is impossible to describe any reform as revolution. That is why we cannot count on the change of social systems taking place as an imperceptible transition from one system to another by means of reforms, by the ruling class making concessions.

Wells: I am very grateful to you for this talk which has meant a great deal to me. In explaining things to me you probably called to mind how you had to explain the fundamentals of socialism in the illegal circles before the revolution. At the present time there are only two persons to whose opinion, to whose every word, millions are listening : you, and Roosevelt. Others may preach as much as they like; what they say will never be printed or heeded.

I cannot yet appreciate what has been done in your country; I only arrived yesterday. But I have already seen the happy faces of healthy men and women and I know that something very considerable is being done here. The contrast with 1920 is astounding.

Stalin: Much more could have been done had we Bolsheviks been cleverer.

Wells: No, if human beings were cleverer. It would be a good thing to invent a five-year plan for the reconstruction of the human brain which obviously lacks many things needed for a perfect social order.

(Laughter.)

Stalin: Don’t you intend to stay for the Congress of the Soviet Writers’ Union?

Wells: Unfortunately, I have various engagements to fulfil and I can stay in the USSR only for a week.

I came to see you and I am very satisfied by our talk. But I intend to discuss with such Soviet writers as I can meet the possibility of their affiliating to the PEN club. This is an international organisation of writers founded by Galsworthy; after his death I became president. The organisation is still weak, but it has branches in many countries, and what is more important, the speeches of the members are widely reported in the press. It insists upon this free expression of opinion – even of opposition opinion.

I hope to discuss this point with Gorky. I do not know if you are prepared yet for that much freedom here.

Stalin: We Bolsheviks call it “self-criticism.” It is widely used in the USSR. If there is anything I can do to help you I shall be glad to do so.

Wells: (Expresses thanks.)

Stalin: (Expresses thanks for the visit.)

Interview Between J. Stalin and Roy Howard

(On March 1, 1936, Comrade Stalin granted an interview to
Roy Howard, President of Scripps-Howard Newspapers.)

Howard: What, in your opinion, would be the consequences of the recent events in Japan for the situation in the Far East?

Stalin: So far it is difficult to say. Too little material is available to do so. The picture is not sufficiently clear.

Howard: What will be the Soviet attitude should Japan launch the long predicted military drive against Outer Mongolia?

Stalin: If Japan should venture to attack the Mongolian People’s Republic and encroach upon its independence, we will have to help the Mongolian People’s Republic. Stomonyakov, Litvinov’s assistant, recently informed the Japanese ambassador in Moscow of this, and pointed to the immutable friendly relations which the U.S.S.R. has been maintaining with the Mongolian People’s Republic since 1921. We will help the Mongolian People’s Republic just as we helped it in 1921.

Howard: Would a Japanese attempt to seize Ulan- Bator make positive action by the U.S.S.R. a necessity?

Stalin: Yes.

Howard: Have recent events developed any new Japanese activities in this region which are construed by the Soviets as of an aggressive nature?

Stalin: The Japanese, I think, are continuing to concentrate troops on the frontiers of the Mongolian People’s Republic, but no new attempts at frontier conflicts are so far observed.

Howard: The Soviet Union appears to believe that Germany and Poland have aggressive designs against the Soviet Union, and are planning military cooperation.

Poland, however, protested her unwillingness to permit any foreign troops using her territory as a basis for operations against a third nation. How does the Soviet Union envisage such aggression by Germany? From what position, in what direction would the German forces operate?

Stalin: History shows that when any state intends to make war against another state, even not adjacent, it begins to seek for frontiers across which it can reach the frontiers of the state it wants to attack, Usually, the aggressive state finds such frontiers.

It either finds them with the aid of force, as was the case in 1914 when Germany invaded Belgium in order to strike at France, or it “borrows” such a frontier, as Germany, for example, did from Latvia in 1918, in her drive to Leningrad. I do not know precisely what frontiers Germany may adapt to her aims, but I think she will find people willing to “lend” her a frontier.

Howard: Seemingly, the entire world today is predicting another great war. If war proves inevitable, when, Mr. Stalin, do you think it will come?

Stalin: It is impossible to predict that. War may break out unexpectedly. Wars are not declared, nowadays. They simply start. On the other hand, however, I think the positions of the friends of peace are becoming stronger. The friends of peace can work openly. They rely on the power of public opinion. They have at their command instruments like the League of Nations, for example. This is where the friends of peace have the advantage. Their strength lies in the fact that their activities against war are backed by the will of the broad masses of the people. There is not a people in the world that wants war. As for the enemies of peace, they are compelled to work secretly. That is where the enemies of peace are at a disadvantage. Incidentally, it is not precluded that precisely because of this they may decide upon a military adventure as an act of desperation.

One of the latest successes the friends of peace have achieved is the ratification of the Franco-Soviet Pact of Mutual Assistance by the French Chamber of Deputies. To a certain extent, this pact is an obstacle to the enemies of peace.

Howard: Should war come, Mr. Stalin, where is it most likely to break out? Where are the war clouds the most menacing, in the East or in the West?

Stalin: In my opinion there are two seats of war danger. The first is in the Far East, in the zone of Japan. I have in mind the numerous statements made by Japanese military men containing threats against other powers. The second seat is in the zone of Germany. It is hard to say which is the most menacing, but both exist and are active. Compared with these two principal seats of war danger, the Italian-Abyssinian war is an episode. At present, the Far Eastern seat of danger reveals the greatest activity. However, the centre of this danger may shift to Europe. This is indicated, for example, by the interview which Herr Hitler recently gave to a French newspaper. In this interview Hitler seems to have tried to say peaceful things, but he sprinkled his “peacefulness” so plentifully with threats against both France and the Soviet Union that nothing remained of his “peacefulness.” You see, even when Herr Hitler wants to speak of peace he cannot avoid uttering threats. This is symptomatic.

Howard: What situation or condition, in your opinion, furnishes the chief war menace today?

Stalin: Capitalism.

Howard: In which specific manifestation of capitalism?

Stalin: Its imperialist, usurpatory manifestation.

You remember how the first World War arose. It arose out of the desire to re-divide the world. Today we have the same background. There are capitalist states which consider that they were cheated in the previous redistribution of spheres of influence, territories, sources of raw materials, markets, etc., and which would want another redivision that would be in their favour. Capitalism, in its imperialist phase, is a system which considers war to be a legitimate instrument for settling international disputes, a legal method in fact, if not in law.

Howard: May there not be an element of danger in the genuine fear existent in what you term capitalistic countries of an intent on the part of the Soviet Union to force its political theories on other nations?

Stalin: There is no justification whatever for such fears. If you think that Soviet people want to change the face of surrounding states, and by forcible means at that, you are entirely mistaken. Of course, Soviet people would like to see the face of surrounding states changed, but that is the business of the surrounding states. I fail to see what danger the surrounding states can perceive in the ideas of the Soviet people if these states are really sitting firmly in the saddle.

Howard: Does this, your statement, mean that the Soviet Union has to any degree abandoned its plans and intentions for bringing about world revolution?

Stalin: We never had such plans and intentions.

Howard: You appreciate, no doubt, Mr. Stalin, that much of the world has long entertained a different impression.

Stalin: This is the product of a misunderstanding.

Howard: A tragic misunderstanding?

Stalin: No, a comical one. Or, perhaps, tragicomic.

You see, we Marxists believe that a revolution will also take place in other countries. But it will take place only when the revolutionaries in those countries think it possible, or necessary. The export of revolution is nonsense. Every country will make its own revolution if it wants to, and if it does not want to, there will be no revolution. For example, our country wanted to make a revolution and made it, and now we are building a new, classless society.

But to assert that we want to make a revolution in other countries, to interfere in their lives, means saying what is untrue, and what we have never advocated.

Howard: At the time of the establishment of diplomatic relations between the U.S.S.R. and the U.S.A., President Roosevelt and Litvinov exchanged identical notes concerning the question of propaganda.

Paragraph four of Litvinov’s letter to President Roosevelt said that the Soviet government undertakes “not to permit the formation or residence on its territory of any organisation or group – and to prevent the activity on its territory of any organisation or group, or of representatives or officials of any organisation or group – which has as its aim, the overthrow, or preparation for the overthrow of, or the bringing about by force of a change in the political or social order of the whole or any part of its territories or possessions.” Why, Mr. Stalin, did Litvinov sign this letter if compliance with the terms of paragraph four is incompatible with the interests of the Soviet Union or beyond its control?

Stalin: The fulfilment of the obligations contained in the paragraph you have quoted is within our control; we have fulfilled, and will continue to fulfil, these obligations.

According to our constitution, political emigrants have the right to reside on our territory. We provide them with the right of asylum just as the United States gives right of asylum to political emigrants.

It is quite obvious that when Litvinov signed that letter he assumed that the obligations contained in it were mutual. Do you think, Mr. Howard, that the fact that there are on the territory of the U.S.A., Russian white guard emigrants who are carrying on propaganda against the Soviets, and in favour of capitalism, who enjoy the material support of American citizens, and who, in some cases, represent groups of terrorists, is contrary to the terms of the Roosevelt-Litvinov agreement? Evidently these emigrants enjoy the right of asylum, which also exists in the United States. As far as we are concerned, we would never tolerate on our territory a single terrorist, no matter against whom his criminal designs were directed. Evidently the right of asylum is given a wider interpretation in the U.S.A. than in our country. But we are not complaining.

Perhaps you will say that we sympathize with the political emigrants who come on to our territory.

But are there no American citizens who sympathize with the white guard emigrants who carry on propaganda in favour of capitalism and against the Soviets? So what is the point? The point is not to assist these people, not to finance their activities. The point is that official persons in either country must refrain from interfering in the internal life of the other country. Our officials are honestly fulfilling this obligation. If any of them has failed in his duty, let us be informed about it.

If we were to go too far and to demand that all the white guard emigrants be deported from the United States, that would be encroaching on the right of asylum proclaimed both in the U.S.A. and in the U.S.S.R. A reasonable limit to claims and counterclaims must be recognised. Litvinov signed his letter to President Roosevelt, not in a private capacity, but in the capacity of representative of a state, just as President Roosevelt did. Their agreement is an agreement between two states. In signing that agreement both Litvinov and President Roosevelt, as representatives of two states, had in mind the activities of the agents of their states who must not and will not interfere in the internal affairs of the other side. The right of asylum proclaimed in both countries could not be affected by this agreement.

The Roosevelt – Litvinov agreement, as an agreement between the representatives of two states, should be interpreted within these limits.

Howard: Did not Browder and Darcy, the American Communists, appearing before the Seventh Congress of the Communist International last summer, appeal for the overthrow by force of the American government?

Stalin: I confess I do not remember the speeches of Comrades Browder and Darcy; I do not even remember what they spoke about. Perhaps they did say something of the kind. But it was not Soviet people who formed the American Communist Party.

It was formed by Americans. It exists in the U.S.A. legally. It puts up its candidates at elections, including presidential elections. If Comrades Browder and Darcy made speeches in Moscow once, they made hundreds of similar, and certainly stronger speeches at home, in the U.S.A. The American Communists are permitted to advocate their ideas freely, are they not? It would be quite wrong to hold the Soviet government responsible for the activities of American Communists.

Howard: But in this instance, is it not a fact that their activities took place on Soviet soil, contrary to the terms of paragraph four of the agreement between Roosevelt and Litvinov?

Stalin: What are the activities of the Communist Party; in what way can they manifest themselves?

Usually their activities consist in organising the masses of the workers, in organising meetings, demonstrations, strikes, etc. It goes without saying that the American Communists cannot do all this on Soviet territory. We have no American workers in the U.S.S.R.

Howard: I take it that the gist of your thought then is that an interpretation can be made which will safeguard and continue good relations between our countries?

Stalin: Yes, absolutely.

Howard: Admittedly communism has not been achieved in Russia. State socialism has been built.

Have not fascism in Italy and National-Socialism in Germany claimed that they have attained similar results? Have not both been achieved at the price of privation and personal liberty, sacrificed for the good of the state?

Stalin: The term “state socialism” is inexact.

Many people take this term to mean the system under which a certain part of wealth, sometimes a fairly considerable part, passes into the hands of the state, or under its control, while in the overwhelming majority of cases the works, factories and the land remain the property of private persons. This is what many people take “state socialism” to mean. Sometimes this term covers a system under which the capitalist state, in order to prepare for, or wage war, runs a certain number of private enterprises at its own expense. The society which we have built cannot possibly be called “state socialism.” Our Soviet society is socialist society, because the private ownership of the factories, works, the land, the banks and the transport system has been abolished and public ownership put in its place. The social organisation which we have created may be called a Soviet socialist organisation, not entirely completed, but fundamentally, a socialist organisation of society.

The foundation of this society is public property : state, i.e., national, and also co-operative, collective farm property. Neither Italian fascism nor German National-“Socialism” has anything in common with such a society. Primarily, this is because the private ownership of the factories and works, of the land, the banks, transport, etc., has remained intact, and, therefore, capitalism remains in full force in Germany and in Italy.

Yes , you are right, we have not yet built communist society. It is not so easy to build such a society. You are probably aware of the difference between socialist society and communist society. In socialist society certain inequalities in property still exist. But in socialist society there is no longer unemployment, no exploitation, no oppression of nationalities. In socialist society everyone is obliged to work, although he does not, in return for his labour receive according to his requirements, but according to the quantity and quality of the work he has performed. That is why wages, and, moreover, unequal, differentiated wages, still exist. Only when we have succeeded in creating a system under which, in return for their labour, people will receive from society, not according to the quantity and quality of the labour they perform, but according to their requirements, will it be possible to say that we have built communist society.

You say that in order t o build our socialist society we sacrificed personal liberty and suffered privation.

Your question suggests that socialist society denies personal liberty. That is not true. Of course, in order to build something new one must economize, accumulate resources, reduce one’s consumption for a time and borrow from others. If one wants to build a house one saves up money, cuts down consumption for a time, otherwise the house would never be built.

How much more true is this when it is a matter of building a new human society? We had to cut down consumption somewhat for a time, collect the necessary resources and exert great effort. This is exactly what we did and we built a socialist society.

But we did not build this society in order to restrict personal liberty but in order that the human individual may feel really free. We built it for the sake of real personal liberty, liberty without quotation marks. It is difficult for me to imagine what “personal liberty” is enjoyed by an unemployed person, who goes about hungry, and cannot find employment.

Real liberty can exist only where exploitation has been abolished, where there is no oppression of some by others, where there is no unemployment and poverty, where a man is not haunted by the fear of being tomorrow deprived of work, of home and of bread. Only in such a society is real, and not paper, personal and every other liberty possible.

Howard: Do you view as compatible the coincidental development of American democracy and the Soviet system?

Stalin: American democracy and the Soviet system may peacefully exist side by side and compete with each other. But one cannot evolve into the other.

The Soviet system will not evolve into American democracy, or vice versa. We can peacefully exist side by side if we do not find fault with each other over every trifling matter.

Howard: A new constitution is being elaborated in the U.S.S.R. providing for a new system of elections. To what degree can this new system alter the situation in the U.S.S.R. since, as formerly, only one party will come forward at elections?

Stalin: We shall probably adopt our new constitution at the end of this year. The commission appointed to draw up the constitution is working and should finish its labours soon. As has been announced already, according to the new constitution, the suffrage will be universal, equal, direct and secret.

You are puzzled by the fact that only one party will come forward at elections. You cannot see how election contests can take place under these conditions. Evidently candidates will be put forward not only by the Communist Party, but by all sorts of public, non-Party organisations. And we have hundreds of these. We have no contending parties any more than we have a capitalist class contending against a working class which is exploited by the capitalists.

Our society consists exclusively of free toilers of town and country – workers, peasants, intellectuals.

Each of these strata may have its special interests and express them by means of the numerous public organisations that exist. But since there are no classes, since the dividing lines between classes have been obliterated, since only a slight, but not a fundamental, difference between various strata in socialist society has remained, there can be no soil for the creation of contending parties. Where there are not several classes there cannot be several parties, for a party is part of a class.

Under National-“Socialism” there is also only one party. But nothing will come of this fascist one party system. The point is that in Germany, capitalism and classes have remained, the class struggle has remained and will force itself to the surface in spite of everything, even in the struggle between parties which represent antagonistic classes, just as it did in Spain, for example. In Italy there is also only one party, the Fascist Party. But nothing will come of it there for the same reasons.

Why will our suffrage be universal? Because all citizens, except those deprived of the franchise by the courts, will have the right to elect and be elected.

Why will our suffrage be equal? Because neither differences in property (which still exist to some extent) nor racial or national affiliation will entail either privilege or disability. Women will enjoy the same rights to elect and be elected as men. Our suffrage will be really equal.

Why secret? Because we want to give Soviet people complete freedom to vote for those they want to elect, for those whom they trust to safeguard their interests.

Why direct? Because direct elections to all representative institutions, right up to the supreme bodies, will best of all safeguard the interests of the toilers of our boundless country. You think that there will be no election contests.

But there will be, and I foresee very lively election campaigns. There are not a few institutions in our country which work badly. Cases occur when this or that local government body fails to satisfy certain of the multifarious and growing requirements of the toilers of town and country. Have you built a good school or not? Have you improved housing conditions?

Are you a bureaucrat? Have you helped to make our labour more effective and our lives more cultured?

Such will be the criteria with which millions of electors will measure the fitness of candidates, reject the unsuitable, expunge their names from candidates’ lists, and promote and nominate the best.

Yes, election campaigns will be very lively, they will be conducted around numerous, very acute problems, principally of a practical nature, of first class importance for the people. Our new electoral system will tighten up all institutions and organisations and compel them to improve their work. Universal, direct and secret suffrage in the U.S.S.R. will be a whip in the hands of the population against the organs of government which work badly. In my opinion our new Soviet constitution will be the most democratic constitution in the world.

Pravda
5 March 1936

Replies to the Questions of Ralph V. Barnes

1st Question: Certain circles in America are intensely discussing at the present time the possibility of Bending to Moscow an unofficial American trade representative, accompanied by a staff of specialists, for promoting the establishment of closer trade connections between the United States and the USSR What would be the attitude of the Soviet Government to such a proposal?

Stalin: In general, the USSR gladly receives trade representatives and specialists of countries which maintain normal relations with it. As regards the USA, I believe the Soviet Government would look favorably upon such an undertaking.

2nd Question: If certain of the obstacles existing on the other side of the Atlantic Ocean to an expansion of Soviet-American trade were removed, what would be the approximate volume of orders that the USSR would be in a position to place in the United States?

Stalin: It is difficult to name a figure in advance without the risk of making a mistake. In any event the growing requirements of the USSR and the vast possibilities of the industry of the USA fully warrant the belief that the volume of orders would increase several times over.

3rd Question: Certain responsible circles in the USA are under the quite definite impression that obvious similarity has been revealed in the reaction of the Soviet and the American Governments to events in the Far East during the last seven months, and that in general as a consequence of this the divergence in policy between the Soviets and America has become less than hitherto. What is your opinion in this regard?

Stalin: It is impossible to say anything definite, since unfortunately it is very difficult to grasp the essentials of the Far Eastern policy of the USA As far as the Soviet Union is concerned, it has adhered, and will continue to adhere, to a firm policy of maintaining peace both with Japan and with Manchuria and China as a whole.

4th Question: There is a great difference between your country and mine, but there is also obvious similarity. Each occupies a vast territory in which there are no such obstacles to trade as tariff barriers. Stupid traditions, of course, interfere less with economic activity in the USSR and the United States than in other first-rate powers. The process of industrialization in the USSR is more like the same process in the United States than that in other West-European Powers. In my preceding question I already indicated that in some cases policy in Moscow and Washington is not so much at variance as might have been expected. Lastly, there is undoubtedly a deep friendly feeling between the American and Soviet peoples despite all the obvious difference between them. In view of these facts, would it not be possible to inspire the conviction in the minds of both peoples that no armed clash between the two countries should ever under any circumstances be allowed to occur?

Stalin: There can be nothing easier than to convince the peoples of both countries of the harm and criminal character of mutual extermination. But, unfortunately, questions of war and peace are not always decided by the peoples. I have no doubt that the masses of the people of the USA did not want war with the peoples of the USSR in 1918-19. This, however, did not prevent the USA Government from attacking the USSR in 1918 (in conjunction with Japan, Britain and France) and from continuing its military intervention against the USSR right up to 1919. As for the USSR, proof is hardly required to show that what its peoples as well as its government want is that “no armed clash between the two countries should ever under any circumstances” be able to occur.

5th Question: Contradictory reports have been spread in America concerning the real nature of the Second Five-Year Plan. Is it true that between January 1, 1933, and the end of 1937 the daily needs of the Soviet population will be satisfied to a greater extent than hitherto? In other words, will light industry really develop to a greater extent than before?

Stalin: Yes, light industry will develop to a much greater extent than before.

Talk With the German Author Emil Ludwig

Ludwig: I am extremely obliged to you for having found it possible to receive me. For over twenty years I have been studying the lives and deeds of outstanding historical personages. I believe I am a good judge of people, but on the other hand I know nothing about social-economic conditions.

Stalin: You are being modest.

Ludwig: No, that is really so, and for that very reason I shall put questions that may seem strange to you. Today, here in the Kremlin, I saw some relies of Peter the Great and the first question I should like to ask you is this: Do you think a parallel can be drawn between yourself and Peter the Great? Do you consider yourself a continuer of the work of Peter the Great?

Stalin: In no way whatever. Historical parallels are always risky. There is no sense in this one.

Ludwig: But after all, Peter the Great did a great deal to develop his country, to bring western culture to Russia.

Stalin: Yes, of course, Peter the Great did much to elevate the landlord class and develop the nascent merchant class. He did very much indeed to create and consolidate the national state of the landlords and merchants. It must he said also that the elevation of the landlord class, the assistance to the nascent merchant Class and the consolidation of the national state of these classes took place at the cost of the peasant serfs, who were bled white.

As for myself, I am just a pupil of Lenin’s, and the aim of my life is to be a worthy pupil of his. The task to which I have devoted my life is the elevation of a different class-the working class. That task is not the consolidation of some “national” state, but of a socialist state, and that means an international state; and everything that strengthens that state helps to strengthen the entire international working class. If every step I take in my endeavor to elevate the working class and strengthen the socialist state of this class were not directed towards strengthening and improving the position of the working class, I should consider my life purposeless.

So you see your parallel does not fit.

As regards Lenin and Peter the Great, the latter was hut a drop in the sea, whereas Lenin was a whole ocean.

Ludwig: Marxism denies that the individual plays an outstanding role in history. Do you not see a contradiction between the materialist conception of history and the fact that, after all, you admit the outstanding role played by historical personages?

Stalin: No, there is no contradiction here. Marxism does not at all deny the role played by outstanding individuals or that history is made by people. In Marx’s The Poverty of Philosophy and in other works of his you will find it stated that it is people who make history. But, of course, people do not make history according to the promptings of their imagination pr as some fancy strikes them. Every new generation encounters definite conditions already existing, ready-made when that generation was born. And great people are worth anything at all only to the extent that they are able correctly to understand these conditions, to understand how to change them. If they fail to understand these conditions and want to alter them according to the promptings of their imagination, they will land themselves in the situation of Don Quixote. Thus it is precisely Marx’s view that people must not be counterposed to conditions. It is people who make history, but they do so only to the extent that they correctly understand the conditions that they have found ready-made, and only to the extent that they understand how to change those conditions. That, at least, is how we Russian Bolsheviks understand Marx. And we have been studying Marx for a good many years.

Ludwig: Some thirty years ago, when I was at the university, many German professors who considered themselves adherents of the materialist conception of history taught us that Marxism denies the role of heroes, the role of heroic personalities in history.

Stalin: They were vulgarizers of Marxism. Marxism has never denied the role of heroes. On the contrary, it admits that they play a considerable role, hut with the reservations I have just made.

Ludwig: Sixteen chairs are placed around the table at which we are seated. Abroad people know, on the one hand, that the USSR is a country in which everything must he decided collectively, but they know, on the other hand, that everything is decided by individual persons. Who really does decide?

Stalin: No, individual persons cannot decide. Decisions of individuals are always, or nearly always, one-sided decisions. In every collegium, in every collective body, there are people whose opinion must be reckoned with. In every collegium, in every collective body, there are people who may express wrong opinions. From the experience of three revolutions we know that out of every 100 decisions taken by individual persons without being tested and corrected collectively, approximately 90 are one-sided. In our leading body, the Central Committee of our Party, which directs all our Soviet and Party organizations, there are about 70 members. Among these 70 members of the Central Committee are our best industrial leaders, our best co-operative leaders, our best managers of supplies, our best military men, our best propagandists and agitators, our best experts on state farms, on collective farms, on individual peasant farms, our best experts on the nations constituting the Soviet Union and on national policy. In this areopagus is concentrated the wisdom of our Party. Each has an opportunity of correcting anyone’s individual opinion or proposal. Each has an opportunity of contributing his experience. If this were not the case, if decisions were taken by individual persons, there would he very serious mistakes in our work. But since each has an opportunity of correcting the mistakes of individual persons, and since we pay heed to such corrections, we arrive at decisions that are more or less correct.

Ludwig: You have had decades of experience of illegal work. You have had to transport illegally arms, literature, and so forth. Do you not think that the enemies of the Soviet regime might learn from your experience and fight the Soviet regime with the same methods?

Stalin: That, of course, is quite possible.

Ludwig: Is that not the reason for the severity and ruthlessness of your government in fighting its enemies?

Stalin: No, that is not the chief reason. One could quote certain examples from history. When the Bolsheviks came to power they at first treated their enemies mildly. The Mensheviks continued to exist legally and publish their newspaper. The Socialist Revolutionaries also continued to exist legally and had their newspaper. Even the Cadets continued to publish their newspaper. When General Krasnov organized his counter-revolutionary campaign against Leningrad and fell into our hands, we could at least have kept him prisoner, according to the rules of war. Indeed, we ought to have shot him. But we released him on his “word of honor.” And what happened? It soon became clear that such mildness only helped to undermine the strength of the Soviet Government. We made a mistake in displaying such mildness towards enemies of the working class. To have persisted in that mistake would have been a crime against the working class and a betrayal of its interests. That soon became guile apparent. Very soon it became evident that the milder our attitude towards our enemies, the greater their resistance. Before long the Right Socialist-Revolutionaries—Golz and others—and the Right Mensheviks were organizing in Leningrad a counter-revolutionary action of the military cadets, as a result of which many of our revolutionary sailors perished.

This very Krasnov, whom we had released on his “word of honor,” organized the whiteguard Cossacks. He joined forces with Mamontov and for two years waged an armed struggle against the Soviet Government. Very soon it turned out that behind the whiteguard generals stood the agents of the western capitalist states—France, Britain, America—and also Japan. We became convinced that we had made a mistake in displaying mildness.

We learnt from experience that the only way to deal with such enemies is to apply the most ruthless policy of suppression to them.

Ludwig: It seems to me that a considerable part of the population of the Soviet Union stands in fear and trepidation of the Soviet power, and that the stability of the latter rests to a certain extent on that sense of fear. I should like to know what state of mind is produced in you personally by the realization that it is necessary to inspire fear in the interests of strengthening the regime. After all, when you associate with your comrades, your friends, you adopt quite different methods than those of inspiring fear. Yet the population is being inspired with fear.

Stalin: You are mistaken. Incidentally, your mistake is that of many people. Do you really believe that we could have retained power and have had the backing of the vast masses for 14 years by methods of intimidation and terrorization? No, that is impossible. The tsarist government excelled all others in knowing how to intimidate. It had long and vast experience in that sphere. The European bourgeoisie, particularly the French, gave tsarism every assistance in this matter and taught it to terrorize the people. Yet, in spite of that experience and in spite of the help of the European bourgeoisie, the policy of intimidation led to the downfall of Tsarism.

Ludwig: But the Romanovs held on for 300 years.

Stalin: Yes, hut how many revolts and uprisings there were during those 300 years! There was the uprising of Stepan Razin, the uprising of Yemelyan Pugachov, the uprising of the Decemberists, the revolution of 1905, the revolution of February 1917, and the October Revolution. That is apart from the fact that the present-day conditions of political and cultural life in the country are radically different from those of the old regime, when the ignorance, lack of culture, submissiveness and political downtroddenness of the masses enabled the “rulers” of that time to remain in power for a more or less prolonged period.

As regards the people, the workers and peasants of the USSR, they are not at all so tame, so submissive and intimidated as you imagine. There are many people in Europe whose ideas about the people of the USSR are old-fashioned: they think that the people living in Russia are, firstly, submissive and, secondly, lazy.

That is an antiquated and radically wrong notion. It arose in Europe in those days when the Russian landlords began to flock to Paris, where they squandered the loot they had amassed and spent their days in idleness. These were indeed spineless and worthless people. That gave rise to conclusions about “Russian laziness.” But this cannot in the least apply to the Russian workers and peasants, who earned and still earn their living by their own labor. It is indeed strange to consider the Russian peasants and workers submissive arid lazy when in a brief period of time they made three revolutions, smashed tsarism and the bourgeoisie, and are now triumphantly building socialism.

Just now you asked me whether everything in our Country was decided by one person.

Never under any circumstances would our workers now tolerate power in the hands of one person. With us personages of the greatest authority are reduced to nonentities, become mere ciphers, as soon as the masses of the workers lose confidence in them, as soon as they lose contact with the masses of the workers. Plekhanov used to enjoy exceptionally great prestige. And what happened? As soon as he began to stumble politically the workers forgot him. They forsook him and forgot him. Another instance: Trotsky. His prestige too was great, although, of course, it was nothing like Plekhanov’s. What happened? As soon as he drifted away from the workers they forgot him.

Ludwig: Entirely forgot him?

Stalin: They remember him sometimes—but with bitterness.

Ludwig: All of them with bitterness?

Stalin: As far as our workers are concerned, they remember Trotsky with bitterness, with exasperation, with hatred.

There is, of course, a certain small section of the population that really does stand in fear of the Soviet power, and fights against it. I have in mind the remnants of the moribund classes, which are being eliminated, and primarily that insignificant part of the peasantry, the kulaks. But here it is a matter not merely of a policy of intimidating these groups, a policy that really does exist. Everybody knows that in this ease we Bolsheviks do not confine ourselves to intimidation but go further, aiming at the elimination of this bourgeois stratum.

But if you take the laboring population of the USSR, the workers and the laboring peasants, who represent not less than 40 per cent of the population, you will find that they are in favor of Soviet power and that the vast majority of them actively support the Soviet regime. They support the Soviet system because that system serves the fundamental interests of the workers and peasants.

That, and not a policy of so-called intimidation, is the basis of the Soviet Government’s stability.

Ludwig: I am very grateful to you for that answer. I beg you to forgive me if I ask you a question that may appear to you a strange one. Your biography contains instances of what may be called acts of “highway robbery. Were you over interested in the personality of Stepan Razin? What is your attitude towards him as an “ideological highwayman”?

Stalin: We Bolsheviks have always taken an interest in such historical personalities as Bolotnikov, Razin, Pugachov, and so on. We regard the deeds of these individuals as a reflection of the spontaneous indignation of the oppressed classes, of the spontaneous rebellion of the peasantry against feudal oppression. The study of the history of these first attempts at such revolt on the part of the peasantry has always been of interest to us. But, of course, no analogy can be drawn here between them and the Bolsheviks. Sporadic peasant uprisings, even when not of the “highway robber” and unorganized type, as in the case of Stepan Razin, cannot lead to anything of importance. Peasant uprisings can be successful only if they are combined with uprisings of the workers and if they are led by the workers. Only a combined uprising headed by the working class can achieve its aim.

Moreover, it must never be forgotten that Razin and Pugachov were tsarists: they came out against the landlords, hut were in favor of a “good tsar.” That indeed was their slogan.

As you see, it is impossible to draw an analogy here with the Bolsheviks.

Ludwig: Allow me to put a few questions to you concerning your biography. When I went to see Masaryk he told me he was conscious of being a Socialist when only six years old. What made you a Socialist and when was that?

Stalin: I cannot assert that I was already drawn to socialism at the age of six. Not even at the age of ten or twelve. I joined the revolutionary movement when fifteen years old, when I became connected with underground groups of Russian Marxists then living in Transcaucasia. These groups exerted great influence on me and instilled in me a taste for underground Marxist literature.

Ludwig: What impelled you to become an oppositionist? Was it, perhaps, bad treatment by your parents?

Stalin: No. My parents were uneducated, but they did not treat me badly by any means. But it was a different matter at the Orthodox theological seminary which I was then attending. In protest against the outrageous regime and the Jesuitical methods prevalent at the seminary, I was ready to become, and actually did become, a revolutionary, a believer in Marxism as a really revolutionary teaching.

Ludwig: But do you not admit that the Jesuits have good points?

Stalin: Yes, they are systematic and persevering in working to achieve sordid ends. Hut their principal method is spying, prying, worming their way into people’s souls and outraging their feelings. What good can there be in that? For instance, the spying in the hostel. At nine o’clock the bell rings for morning tea, we go to the dining-room, and when we return to our rooms we find that meantime a search has been made and all our chests have been ransacked…. What good point can there be in that?

Ludwig: I notice that in the Soviet Union everything American is held in very high esteem, I might even speak of a worship of everything American, that is, of the Land of the Dollar, the most out-and-out capitalist country. This sentiment exists also in your working class, and applies not only to tractors and automobiles, but also to Americans in general. How do you explain that?

Stalin: You exaggerate. We have no especially high esteem for everything American, nut we do respect the efficiency that the Americans display in everythingÑin industry, in technology, in literature and in life. We never forget that the U.S.A. is a capitalist country. But among the Americans there are many people who are mentally and physically healthy who are healthy in their whole approach to work, to the job on hand. That efficiency, that simplicity, strikes a responsive chord in our hearts. Despite the fact that America is a highly developed capitalist country, the habits prevailing in its industry, the practices existing in productive processes, have an element of democracy about them, which cannot be said of the old European capitalist countries, where the haughty spirit of the feudal aristocracy is still alive.

Ludwig: You do not even suspect how right you are.

Stalin: Maybe I do; who can tell?

In spite of the fact that feudalism as a social order was demolished long ago in Europe, considerable relies survive in manner of life and customs. There are still technicians, specialists, scientists and writers who have sprung from the feudal environment and who carry aristocratic habits into industry, technology, science and literature. Feudal traditions have not been entirely demolished.

That cannot be said of America, which is a country of “free colonists,” without landlords and without aristocrats. Hence the sound and comparatively simple habits in American productive life. Our business executives of working-class origin who have visited America at once noted this trait. They relate, not without a certain agreeable surprise, that on a production job in America it is difficult to distinguish an engineer from a worker by outward appearance. That pleases them, of course.

But matters are quite different in Europe.

But if we are going to speak of our liking for a particular nation, or rather, for the majority of its citizens, then of course we must not fail to mention our liking for the Germans. Our liking for the Americans cannot he compared to that!

Ludwig: Why precisely the German nation?

Stalin: If only for the reason that it gave the world such men as Marx and Engels. It suffices to state the fact as such.

Ludwig: It has recently been noticed that certain German politicians are seriously afraid that the traditional policy of friendship between the USSR and Germany will be pushed into the background. These fears have arisen in connection with the negotiations between the USSR and Poland. Should the recognition of Poland’s present frontiers by the USSR become a fact as a result of these negotiations it would spell bitter disappointment for the entire German people, who have hitherto believed that the USSR is fighting the Versailles system and has no intention of recognizing it.

Ludwig: I know that a certain dissatisfaction and alarm may he noticed among some German statesmen on the grounds that the Soviet Union, in its negotiations or in some treaty with Poland, may take some step that would imply on the part of the Soviet Union a sanction, a guarantee, for Poland’s possessions and frontiers.

In my opinion such fears are mistaken. We have al- ways declared our readiness to conclude a non-aggression pact with any state. We have already concluded such pacts with a number of countries. We have openly declared our readiness to sign such a pact with Poland, too. When we declare that we are ready to sign a pact of non-aggression with Poland, this is not mere rhetoric. It means that we really want to sign such a pact.

We are politicians of a special brand if you like. There are politicians who make a promise or statement one day, and on the next either forget all about it or deny what they stated, and do so without even blushing. We cannot act in that way. Whatever we do abroad inevitably becomes known inside our country, becomes known to all the workers and peasants. If we said one thing and did another, we should forfeit our prestige among the masses of the people. As soon as the Poles declared that they were ready to negotiate a non-aggression pact with us, we naturally agreed and opened negotiations.

What, from the Germans’ point of view, is the most dangerous thing that could happen? A change for the worse in our relations with them. But there is no basis whatever for that. We, exactly like the Poles, must declare in the pact that we will not use force or resort to aggression in order to change the frontiers of Poland or the USSR, or violate their independence. Just as we make such a promise to the Poles, so they make the same promise to us. Without such a clause, namely, that we do not intend to go to war for the purpose of violating the independence or integrity of the frontiers of our respective states, no pact can he concluded. Without that a pact is out of the question. That is the most that we can do.

Is this recognition of the Versailles system? No. Or is it, perhaps, a guaranteeing of frontiers? No. We never have been guarantors of Poland and never shall become such, just as Poland has not been and will not be a guarantor of our frontiers. Our friendly relations with Germany will continue as hitherto. That is my firm conviction.

Therefore, the fears you speak of are wholly without foundation, They have arisen on the basis of rumors spread by some Poles and Frenchmen. They will disappear when we publish the pact, if Poland signs it. Everyone will then see that it contains nothing against Germany.

Ludwig: I am very thankful to you for that statement. Allow me to ask you the following question: You speak of “wage equalization,” giving the term a distinctly ironical shade of meaning in relation to general equalization. But, surely, general equalization is a socialist ideal.

Stalin: The kind of socialism under which everybody would get the same pay, an equal quantity of meat and an equal quantity of bread, would wear the same clothes and receive the same goods in the same quantities—such a socialism is unknown to Marxism.

All that Marxism says is that until classes have been finally abolished and until labor has been transformed from a means of subsistence into the prime want of man, into voluntary labor for society, people will be paid for their labor according to the work performed. “From each according to his ability, to each according to his work.” Such is the Marxist formula of socialism, i.e., the formula of the first stage of communism, the first stage of communist society.

Only at the higher stage of communism, only in its higher phase, will each one, working according to his ability, be recompensed for his work according to his needs. “From each according to his ability, to each according to his needs.”

It is quite clear that people’s needs vary and will continue to vary under socialism. Socialism has never denied that people differ in their tastes, and in the quantity and quality of their needs. Read how Marx criticized Stirner for his leaning towards equalitarianism; read Marx’s criticism of the Gotha Programme of 1875; read the subsequent works of Marx, Engels and Lenin, and you will see how sharply they attack equalitarianism. Equalitarianism owes its origin to the individual peasant type of mentality, the psychology of share and share alike, the psychology of primitive peasant “communism.” Equalitarianism has nothing in common with Marxist socialism. Only people who are unacquainted with Marxism can have the primitive notion that the Russian Bolsheviks want to pool all wealth and then share it out equally. That is the notion of people who have nothing in common with Marxism. That is how such people as the primitive “Communists” of the time of Cromwell and the French Revolution pictured communism to themselves. But Marxism and the Russian Bolsheviks have nothing in common with such equalitarian “Communists. “

Ludwig: You are smoking a cigarette. Where is your legendary pipe, Mr. Stalin? You once said that words and legends pass, but deeds remain. Now believe me, there are millions of people abroad who do not know about some of your words and deeds, but who do know about your legendary pipe.

Stalin: I left my pipe at home.

Ludwig: I shall now ask you a question that may astonish you greatly.

Stalin: We Russian Bolsheviks have long ceased to be astonished at anything.

Ludwig: Yes, and we in Germany too.

Stalin: Yes, you in Germany will soon stop being astonished.

Ludwig: My question is the following: You have often incurred risks and dangers. You have been persecuted. You have taken part in battles. A number of your close friends have perished. You have survived. How do you explain that? And do you believe in fate?

Stalin: No, I do not. Bolsheviks, Marxists, do not believe in “fate.” The very concept of fate, of “Schieksal,” is a prejudice, an absurdity, a relic of mythology, like the mythology of the ancient Greeks, for whom a goddess of fate controlled the destinies of men.

Ludwig: That is to say that the fact that you did not perish is an accident?

Stalin: There are internal and external causes, the combined effect of which was that I did not perish. But entirely independent of that, somebody else could have been in my place, for somebody had to occupy it. “Fate” is something not governed by natural law, something mystical. I do not believe in mysticism. Of course, there were reasons why danger left me unscathed. But there could have been a number of other fortuitous circumstances, of other causes, which could have led to a directly opposite result. So-called fate has nothing to do with it.

Ludwig: Lenin passed many years in exile abroad. You had occasion to be abroad for only a very short time. Do you consider that this has handicapped you? Who do you believe were of greater benefit to the revolution—those revolutionaries who lived in exile abroad and thus had the opportunity of making a thorough study of Europe, but on the other hand were cut off from direct contact with the people; or those revolutionaries who carried on their work here, knew the moods of the people, but on the other hand knew little of Europe?

Stalin: Lenin must be excluded from this comparison. Very few of those who remained in Russia were as intimately connected with the actual state of affairs there and with the labor movement within the country as Lenin was, although he was a long time abroad. Whenever I went to see him abroad—in 1906, 1907, 1912 and 1913—I saw piles of letters he had received from practical Party workers in Russia, and he was al- ways better informed than those who stayed in Russia. He always considered his stay abroad to be a burden to him. There are many more comrades in our Party and its leadership who remained in Russia, who did not go abroad, than there are former exiles, and they, of course, were able to be of greater benefit to the revolution than those who were in exile abroad. Actually few former exiles are left in our Party. They may add up to about one or two hundred out of the two million members of the Party. Of the seventy members of the Central Committee scarcely more than three or four lived in exile abroad.

As far as knowledge of Europe, a study of Europe, is concerned, those who wished to make such a study had, of course, more opportunities of doing so while living there. In that respect those of us who did not live long abroad lost something. But living abroad is not at all a decisive factor in making a study of European economies, technique, the cadres of the labor movement and literature of every description, whether belies letters or scientific. Other things being equal, it is of course easier to study Europe on the spot. But the disadvantage of those who have not lived in Europe is not of much importance. On the contrary, I know many comrades who were abroad twenty years, lived somewhere in Charlottenburg or in the Latin Quarter, spent years in cafes drinking beer, and who yet did not manage to acquire a knowledge of Europe and failed to understand it.

Ludwig: Do you not think that among the Germans as a nation love of order is more highly developed than love of freedom?

Stalin: There was a time when people in Germany did indeed show great respect for the law. In 1907, when I happened to spend two or three months in Berlin, we Russian Bolsheviks often used to laugh at some of our German friends on account of their respect for the law. There was, for example, a story in circulation about an occasion when the Berlin Social-Democratic Executive fixed a definite day and hour for a demonstration that was to be attended by the members of all the suburban organizations. A group of about 200 from one of the suburbs arrived in the city punctually at the hour appointed, but failed to appear at the demonstration, the reason being that they had waited two hours on the station platform because the ticket collector at the exit had failed to make his appearance and there had been nobody to give their tickets to. It used to be said in jest that it took a Russian comrade to show the Germans a simple way out of their fix: to leave the platform without giving up their tickets…. But is there anything like that in Germany now? Is there respect for the law in Germany today? What about the National Socialists, who one would think ought to be the first to stand guard over bourgeois legality? Do they not break the law, wreck workers’ clubs and assassinate workers with impunity? I make no mention of the workers, who, it seems to me, long ago lost all respect for bourgeois legality. Yes, the Germans have changed quite a bit lately.

Ludwig: Under what conditions is it possible to unite the working Glass finally and completely under the leadership of one party? Why is such a uniting of the working class possible only after the proletarian revolution, as the Communists maintain?

Stalin: Such a uniting of the working Class around the Communist Party is most easily accomplished as the result of a victorious proletarian revolution. But it will undoubtedly be achieved in the main even before the revolution.

Ludwig: Does ambition stimulate or hinder a great historical figure in his activities?

Stalin: The part played by ambition differs under different conditions. Ambition may he a stimulus or a hindrance to the activities of a great historical figure. It all depends on circumstances. More often than not it is a hindrance.

Ludwig: Is the October Revolution in any sense the continuation and culmination of the Great French Revolution?

Stalin: The October Revolution is neither the continuation nor the culmination of the Great French Revolution. The purpose of the French Revolution was to abolish feudalism in order to establish capitalism. The purpose of the October Revolution, however, is to abolish capitalism in order to establish socialism.

Mr. Campbell Stretches the Truth

A book in English entitled Russia — Market or Menace? written by Mr. Campbell, a well-known figure in the agricultural world, who had visited the USSR, recently made its appearance in America. In this book Mr. Campbell, among other things, gives an account of what he calls an “interview” with Stalin that took place in Moscow in January 1929. This “interview” is remarkable for the fact that its every sentence is either pure fiction or a sensational piece of trickery with the aim of gaining publicity for the book and its author.

It will not be amiss, in my opinion, to say a few words in order to expose these fictitious statements.

Mr. Campbell is obviously drawing on his imagination when he says that his talk with Stalin, which began at 1 p.m., “lasted until well after dark, in fact, until dawn.” Actually, the talk did not last more than two hours. Mr. Campbell’s imagination is truly American.

Mr. Campbell is stretching the truth when he asserts that Stalin “took my hand in both of his and said: ‘we can be friends.'” As a matter of fact, nothing of the kind happened or could have happened.

Mr. Campbell cannot but know that Stalin has no need of “friends” of the Campbell type.

Mr. Campbell again stretches the truth when he says that on sending him a record of the talk, I added the postscript: “Keep this record, it may be a very historical document some day… As a matter of fact the record was sent to Mr. Campbell by the translator Yarotsky without any postscript at all. Mr. Campbell’s desire to make capital out of Stalin obviously betrays him.

Mr. Campbell still further stretches the truth when he puts such words into the mouth of Stalin as that “under Trotsky there had been an attempt to spread communism throughout the world; that this was the primary cause of the break between hirnself [i.e., Stalin] and Trotsky; that Trotsky believed in universal communism, while he [Stalin] worked to confine his efforts to his own country.” Only people who have deserted to the camp of the Kautskys and the Welses can believe such stuff and nonsense, in which the facts are turned upside-down. As a matter of fact, the talk with Campbell had no bearing on the Trotsky question and Trotsky’s name was not mentioned at all in the course of it.

And so on in the same strain.

Mr. Campbell mentioned in his book the record of his talk with Stalin but he did not find it necessary to publish it in his book. Why? Was it not because publication of the record would have upset Mr. Campbell’s plan to utilize the sensational fables about the “interview” with Stalin in order to gain publicity for Campbell’s book among the American philistines?

I think the best punishment for the lying Mr. Campbell would he to publish the record of the talk between Mr. Campbell and Stalin. This would be the surest means of exposing his lies and establishing the facts.

J . Stalin

November 23, 1932

Record of the Talk with Mr. Campbell

January 28, 1929

After an exchange of preliminary phrases Mr. Campbell explained his desire to pay a visit to Stalin. He pointed out that although he was in the USSR in a private capacity, he had, before leaving the United States, seen Coolidge and also Hoover, the newly elected President, and received their full approval of his trip to Russia. His stay here showed him the amazing activity of the nation that has remained an enigma to the whole world. He particularly liked the projects for the development of agriculture. He knew of the existence of many wrong notions about Russia, but had himself been in the Kremlin, for instance, and had seen the work being done to preserve memorials of art and in general to raise the level of cultural life. He was particularly struck by the solicitude for working men and working women. It seemed to him an interesting coincidence that before his departure from the United States he was invited by the President, and saw Coolidge’s son and wife, while yesterday he was the guest of Mikhail Kalinin, President of the USSR, who impressed him tremendously.

Stalin: With regard to our plans of agricultural and industrial development, as well as our concern for the development of cultural life, we are still at the very beginning of our work. In the building up of industry we have done very little as yet. Still less has been done in carrying out the plans for agricultural re-construction. We must not forget that our country was exceedingly backward and that this backwardness is still a great handicap.

The difference between the former and the new leading figures in Russia consists, among other things, in the fact that the old ones considered the country’s backwardness one of its good points, regarding it as a “national characteristic,” a matter for “national pride,” whereas the new people, the Soviet people, combat it as an evil that must be rooted out. Herein lies the guarantee of our success.

We know that we are not free from mistakes. But we do not fear criticism, are not afraid to face the difficulties and admit our mistakes. We shall accept correct criticism and welcome it. We watch developments in the USA, for that country ranks high in science and technology. We would like scientific and technical people in America to be our teachers in the sphere of technique, and we their pupils.

Every period in the development of a nation is marked by a passion of its own. In Russia we now witness a passion for construction. This is her preponderating feature today. This explains the construction fever that we are. experiencing at present. It is reminiscent of the period that the USA went through after the Civil War. (1) This affords a basis and an opportunity for technical industrial and commercial cooperation with the USA I do not know what still needs to be done to secure contact with American industry. Could you not explain what now prevents such a rapprochement from being realized, if it is established that such contact would be advantageous to both the USSR and the USA?

Mr. Campbell: I am certain that there is a striking similarity between the USA and Russia in point of size, resources and independence. Mr. Stalin’s reference to the Civil War period is correct. After the Civil War extraordinary expansion was witnessed. The people in the USA are interested in Russia. I am sure that Russia is too big a country not to be a big factor in world relations. The people at the head of the Russian Government have grand opportunities to accomplish great things. All that is needed for this is clarity of judgment and the ability to be fair at all times.

I see the advantage of proper business contact and I am maintaining close connection with the government, although I am a private citizen. I am carrying on this conversation as a private person. Once I have been asked what hinders contact between the USA and Russia I want to answer with the utmost frankness and courage, with due respect for Mr. Stalin and without giving offence. He is very objective-minded and this allows me to converse with him as man to man for the benefit of both countries and absolutely confidentially. If we could have official recognition everybody would be anxious to get here to do business on a credit or other basis, as is being done everywhere. A reason why American firms hesitate to do business and grant long-term credits is the fact that our Washington Government does not recognize your Government.

The main reason for this, however, is not simply failure in the matter of recognition. The main reason, we assume (and this may be taken as certain), is that representatives of your Government in our country are trying all the time to sow discontent and spread the ideas of Soviet power.

We have in our country what is called the “Monroe Doctrine,” which signifies that we do not want to interfere in the affairs of any other country in the world, that we confine ourselves strictly to our own affairs. For that reason we do not want any country whatever – Britain, France, Germany, Russia or any other – to interfere in our private affairs.

Russia is so vast a country that she can by herself fulfill everything that her whole people decide to do. Russia has resources of her own of every kind, and although it will take more time the Russians in the long run will be able to develop their resources independently.

It gives us pleasure to feel that in many respects we are an ideal for the Russian people, and I believe we can be very useful to that people, particularly in economizing time. Since we have solved many economic problems and our methods are copied by many countries besides Russia, such enterprises as the building of state farms imply a strengthening of trade connections, and In the final analysis trade connections will be followed by diplomatic recognition on some equitable basis. The only way for nations, as for individuals, is to speak out frankly without discourtesy, and then the time will soon come for some kind of agreement. The better our upbringing the greater our conviction that more can be achieved by reason than by any other means. Great nations can differ in opinion without straining relations and great men can come to an arrangement on major problems. They usually wind up their negotiations with a definite agreement in which they meet each other halfway, no matter how far apart their initial positions were.

Stalin: I realize that diplomatic recognition involves difficulties for the USA at the present moment. Soviet Government representatives have been subjected to abuse by the American press so much and so often that an abrupt change is difficult. Personally I do not consider diplomatic recognition decisive at the moment. What is important is a development of trade connections on the basis of mutual advantage. Trade relations need to be normalized and if this matter is put on some legal footing it would be a first and very important step towards diplomatic recognition. The question of diplomatic recognition will find its own solution when both sides realize that diplomatic relations are advantageous. The chief basis is trade relations and their normalization, which will lead to the establishment of definite legal norms.

The natural resources of our country are, of course, rich and varied. They are richer and more varied than is officially known, and our research expeditions are constantly finding new resources in our extensive country. But this is only one aspect of our potentialities. The other aspect is the fact that our peasants and workers are now rid of their former burden, the landlords and capitalists. Formerly the landlords and capitalists used to squander unproductively what today remains within the country and increases its internal purchasing power. The increase in demand is such that our industry, in spite of its rapid expansion, cannot catch up with it. The demand is prodigious, both for personal and productive consumption. This is the second aspect of our unlimited potentialities.

Both the one and the other give rise to an important basis for commercial and industrial contact with the USA as well as other developed countries.

The question as to which state is to apply its forces to these resources and potentialities of our country is the object of a complicated struggle among them. Unfortunately the USA still stands quite aloof from this struggle.

On all sides the Germans are shouting that the position of the Soviet Government is unstable and that therefore one ought not to grant any considerable credits to Soviet economic organizations. At the same time they try to monopolize trade relations with the USSR by granting it credits.

As you know, one group of British businessmen is also carrying on a fierce anti-Soviet campaign. At the same time this very group and also the McKenna group are endeavoring to organize credits for the USSR The press has already reported that in February a delegation of British industrialists and bankers will come to the USSR They intend to submit to the Soviet Government an extensive plan for trade relations and a loan.

How are we to explain this duplicity of the German and British businessmen? It is to be explained by their desire to monopolize trade relations with the USSR, frightening the USA away and pushing it aside.

At the same time, it is clear to me that the USA has better grounds for extensive business connections with the USSR than any other country. And this is not only because the USA is rich both in technical equipment and capital, but also because in no other country are our business people given such a cordial and hospitable welcome as in the USA.

As regards propaganda, I must state most emphatically that no representative of the Soviet Government has the right to interfere, either directly or indirectly, in the internal affairs of the country in which he happens to be. In this respect the most strict and definite instructions have been given to all our personnel employed in Soviet institutions in the USA I am certain that Bron and the members of his staff do not have the slightest connection with propaganda in any form whatsoever. Should any of our employees violate these strict directives as regards non-interference he would immediately be recalled and punished. Naturally we cannot answer for the actions of persons not known and not subordinate to us. But we can assume responsibility as regards interference by persons employed in our institutions abroad, and we can give the maximum guarantees on that score.

Mr. Campbell: May I tell that to Mr. Hoover?

Stalin: Of course.

Mr. Campbell: We do not know who those people are that sow discontent. But there are such people. The police find them and their literature. I know Bron and am convinced that he is an honest, straightforward gentleman, who does business honestly. But there is somebody.

Stalin: It is possible that propaganda in favor of Soviets is being carried on in the USA by members of the American Communist Party. But that party is legal in the USA, it legally participates in Presidential elections and nominates its candidates for President, and it is quite clear that we cannot be interfering in your internal affairs in this case either.

Mr. Campbell: I have no further questions. But yes, I have. When I return to the United States businessmen will ask me whether it is safe to do business with the USSR Engineering concerns in particular will be interested in the possibility of granting long-term credits. Can I answer in the affirmative? Can I obtain information on the measures now being taken by the Soviet Government to guarantee credit transactions; is there any special tax or other specific source of revenue set aside for this purpose?

Stalin: I would prefer not to sing the praises of my country. But now that the question has been put I must reply as follows: There has not been a single instance of the Soviet Government or a Soviet economic institution failing to make payment correctly and on tune on credits, whether short-term or long-term. Inquiries could be made in Germany on how we meet payments to the Germans on their credit of three hundred millions. Where do we get the means to effect payment? Mr. Campbell knows that money does not drop from the sky. Our agriculture, industry, trade, timber, oil, gold, platinum, etc. — such is the source of our payments. Therein lies the guarantee of our payments. I do not want Mr. Campbell to take my word for it. He can check my statements in Germany, for example. He will find that not once was payment postponed, although at times we actually had to pay such unheard-of interest rates as 15-20%.

As far as special guarantees are concerned, I believe there is no need to speak of this seriously in the case of the USSR

Mr. Campbell: Of course not.

Stalin: Perhaps it would not be amiss to tell you, strictly confidentially, about the loan, not credit but loan, offered by a group of British bankers – that of Balfour and Kingsley.

Mr. Campbell: May I tell Hoover about this?

Stalin: Of course, but don’t give it to the press. This group of bankers are making the following proposal:

They calculate that our debts to Britain amount approximately to £400,000,000. It is proposed that they be consolidated at 25%. That means £100,000,000 instead of £400,000,000.

Simultaneously a loan of £100,000,000 is proposed.

Thus our indebtedness will amount to £200,000,000 to be paid in installments over a period of several decades.

In return we are to give preference to the British engineering industry. This does not mean that we shall have to place our orders in Britain alone, but the British must be given preference.

Mr. Campbell, in expressing his thanks for the interview, says that Stalin has impressed him as a fair, well-informed and straightforward man. He is very glad to have had the opportunity of speaking with Stalin and considers the interview historic.

Stalin thanks Mr. Campbell for the talk.

Notes

(1) This refers to the Civil War between the northern and the Southern states of America in 1861-65.

Talk With Colonel Robins

Stalin: What can I do for you?

Robin: I consider it a great honor to have an opportunity of paying you a visit.

Stalin: There is nothing particular in that. You are exaggerating.

Robins (smiles) : What is most interesting to me is that throughout Russia I have found the names Lenin-Stalin, Lenin-Stalin, Lenin-Stalin, linked together.

Stalin: That, too, is an exaggeration. How can I be compared to Lenin?

Robin: (smiles) : Would it also be an exaggeration to say that all this time the oldest government in the world has been the government of Soviet Russia — the Council of People’s Commissars?

Stalin: That, to be sure, is not exaggerated.

Robin: The interesting and important point is that this government has not taken a reactionary direction in its work and that it is the government set up by Lenin that has proved strong. It resists all hostile lines.

Stalin: That is true.

Robins: At the May Day demonstration Russia’s development during the past fifteen years impressed itself upon me with particular clarity and sharpness, for I witnessed the May Day demonstration in 1918, and now in 1933.

Stalin: We have managed to do a few things in recent years. But fifteen years is a long period of time.

Robins: Still, in the life of a country it is a short period for such great progress as Soviet Russia has achieved during this time.

Stalin: We might have done more, but we did not manage to.

Robins: It is interesting to compare the underlying motives, the basic lines followed in the two demonstrations. The 1918 demonstration was addressed to the outside world, to the proletariat of the whole world, to the international proletariat, and was a call to revolution. Now the motive was different. Now men, women and the youth went to the demonstration to proclaim: This is the country we are building, this is the land we shall defend with all our strength!

Stalin: At that time the demonstration was agitational, but now it is a summing up.

Robins: You probably know that during these fifteen years I have interested myself in establishing rational relations between our two countries, and have endeavored to dispel the existing hostile attitude of the ruling circles in America.

Stalin: I knew of this in 1918 from what Lenin had said, and afterwards on the basis of facts. Yes, I know it.

Robins: I have come here in the capacity of a purely private citizen and speak only for myself. The chief aim of my visit is to ascertain the prospects of establishing relations, to ascertain the actual facts concerning the ability to work and the creative, inventive capacity of the Russian workers. Anti-Soviet propaganda has it that the Russian worker is lazy, does not know how to work, and ruins the machines he handles; that such a country has no future. I want to counteract this propaganda not merely with words, but armed with the facts.

The second question of interest to me in this connection is the situation in agriculture. It is being asserted that industrialization has played havoc with agriculture, that the peasants have stopped sowing, have stopped gathering in the grain. Every year it is asserted that this year Russia is sure to die of famine. I should like to learn the facts about agriculture in order to refute these assertions. I expect to see the areas where new kinds of crops have been sown this year for the first time. What interests me in particular is the development of the principal grain crops of the Soviet Union.

The third question that interests me is public education, the development of children and the youth, their upbringing; how far public education has developed in the fields of art and literature, as regards what is called creative genius, inventive capacity. In America two types of creativeness are recognized — one is the creativeness of the study and the other is broad, life-inspired creativeness, manifestations of the creative spirit in life. I am interested in knowing how children and young people are developing. I hope to see in real life how they study, how they are brought up and how they develop.

On the first and third questions I have already obtained some valuable information and count on getting additional data. On the second question, concerning the development of agriculture, I expect to be able to discover the real facts during my trip to Magnitogorsk and from there to Rostov, Kharkov and back. I expect to have a look at collective farms and see how the archaic strip system of cultivation is being eliminated and large-scale agriculture developed.

Stalin: Do you want my opinion?

Robins: Yes, I would like to have it.

Stalin: The notion that the Soviet worker is by nature incapable of coping with machines and breaks them is quite wrong.

On this score I must say that no such thing is happening here as occurred in Western Europe and America, where workers deliberately smashed machines because these deprived them of their crust of bread. Our workers have no such attitude to machinery, because in our country machines are being introduced on a mass scale in conditions where there is no unemployment, because the machines do not deprive the workers of their livelihood, as with you, but make their work easier.

As far as inability to work, the lack of culture of our workers is concerned, it is true that we have few trained workers and they do not cope with machinery as well as workers in Europe or America do. But with us this is a temporary phenomenon. If, for example, one were to investigate where throughout history the workers learned to master new technical equipment quickest – in Europe, America, or Russia during the last five years – I think it will be found that the workers learned quicker in Russia, in spite of the low level of culture. The mastery of the production of wheeled tractors in the West took several years, although, of course, technology was well developed there. Mastery of this matter in our country was quicker. For example, in Stalingrad and Kharkov the production of tractors was mastered in some 12-14 months. At the present time, the Stalingrad Tractor Works is not only working to estimated capacity, not only turns out 144 tractors per day, but sometimes even 160, that is, it works above its planned capacity. I am taking this as an example. Our tractor industry is new, it did not exist before. The same thing is true of our aircraft industry – a new, delicate business, also swiftly mastered. The automobile industry is in a similar position from the viewpoint of rapidity of mastery. The same applies to machine tool building

In my opinion, this rapid mastery of the production of machines is to be explained not by the special ability of the Russian workers but by the fact that in our country the production of, say, aircraft and engines for them, of tractors, automobiles and machine tools is considered not the private affair of individuals, but an affair of the state. In the West the workers produce to get wages, and are not concerned about anything else. With us production is regarded as a public matter, a state matter, it is regarded as a matter of honor. That is why new technique is mastered so quickly in our country.

In general, I consider it impossible to assume that the workers of any particular nation are incapable of mastering new technique. If we look at the matter from the racial point of view, then in the United States, for instance, the Negroes are considered “bottom category men,” yet they master technique no worse than the whites. The question of the mastery of technique by the workers of a particular nation is not a biological question, not a question of heredity, but a question of time: today they have not mastered it, tomorrow they will learn and master it. Everyone, including the Bushman, can master technique, provided he is helped.

Robins: The ambition, the desire to master, is also required.

Stalin: Of course. The Russian workers have more than enough desire and ambition. They consider the mastery of new technique a matter of honor.

Robins: I have already sensed this in your factories where I have seen that socialist emulation has resulted in the creation of a new kind of ardour, a new sort of ambition that money could never buy, because the workers expect to get for their work something better and greater than money can procure.

Stalin: That is true. It is a matter of honor.

Robins: I shall take with me to America diagrams showing the development of the workers’ inventiveness and their creative proposals, which improve production and effect considerable savings in production. I have seen the portraits of quite a few such worker-inventors who have done very much for the Soviet Union in the way of improving production and achieving economies.

Stalin: Our country has produced a comparatively large number of such workers. They are very capable people.

Robins: I have been in all your big Moscow factories-the AMO Automobile Works, the Ball Bearing Works, the Freser Works and others – and everywhere I came across organizations for promoting workers’ inventive-ness. The tool room in a number of these factories impressed me particularly. As these tool rooms provide their factories with highly valuable tools the workers there exert all their faculties to the utmost, give full play to their creative initiative and achieve striking results.

Stalin: In spite of that, we have many shortcomings as well. We have few skilled workers, while a great many are required. Our technical personnel is also small. Each year their number grows, and still there are fewer of them than we need. The Americans have been of great help to us. That must be admitted. They have helped more effectively than others and more boldly than others. Our thanks to them for that.

Robins: I have witnessed an internationalism in your enterprises which produced a very strong impression on me. Your factory managements are ready to adopt the technical achievements of any country – France, America, Britain or Germany – without any prejudice against these countries. And it seems to me that it is just this internationalism that will make it possible to combine in one machine all the advantages possessed by the machines of other countries and thus create more perfect machines.

Stalin: That will happen.

On the second question, about industrialization allegedly ruining agriculture, that notion is also wrong. Far from ruining agriculture in our country, industrialization is saving it, and saving our peasants. A few years ago we had a greatly disunited, small and very small, peasant economy. With the increasing division of the land, the peasant allotments shrank so much that there was no room to keep a hen. Add to this the primitive farming equipment, such as wooden ploughs and emaciated horses, which were incapable of turning up not only virgin soil, but even the ordinary, rather hard, soil, and you will have a picture of the deterioration of agriculture. Three or four years ago there were about 7,000,000 wooden ploughs in the USSR The only choice left for the peasants was this: either to lie down and die or to adopt a new form of land tenure and cultivate the land with machines. This indeed explains why the Soviet Government’s call to the peasants issued about that time – to unite their tiny plots of land into large tracts and accept from the government tractors, harvesters and threshers for working these tracts, for gathering and threshing the harvest-found a very lively response among the peasants. They naturally seized on the proposal of the Soviet Government, began to unite their plots of land into large fields, accepted the tractors and other machines and thus emerged on the broad high-way of making agriculture large scale, the new road of the radical improvement of agriculture.

It follows that industrialization, as a result of which the peasants receive tractors and other machines, has saved the peasants, has saved agriculture.

The process of uniting small peasant farms by whole villages into large farms we call collectivization, and the united large farms themselves – collective farms. The absence in our country of private property in land, the nationalization of the land, makes collectivization much easier. The land is transferred to the collective farms for their use in perpetuity and, owing to the absence of private property in land, no land can be bought or sold here. All this considerably facilitates the formation and development of collective farms.

I do not mean to say that all this, i.e., collectivization and the rest, is proceeding smoothly with us. There are difficulties, of course, and they are not small ones.

Collectivization, like every great new undertaking, has not only friends, but also enemies. Nevertheless, the overwhelming majority of the peasants are in favor of collectivization, and the number of its opponents is becoming smaller and smaller.

Robins: Every advance involves certain outlays, and this we take into account and include in our calculations.

Stalin: In spite of these difficulties, however, one thing is clear – and I have not the slightest doubt on this score: nineteen-twentieths of the peasantry have recognized, and most of the peasants accept the fact with great joy, that the collectivization of agriculture has become an irreversible fact. So then this has already been achieved. The predominant form of agriculture in our country now is the collective farm. Take the grain sowing or harvesting figures, the figures for grain production, and you will see that at the present time the individual peasants provide something like 10-15 per cent of the total gross output of grain. The rest comes from the collective farms.

Robins: I am interested in the question whether it is true that last year’s crop was gathered in unsatisfactorily, that at the present time the sowing campaign is proceeding satisfactorily, while last year the harvesting proceeded unsatisfactorily.

Stalin: Last year the harvesting was less satisfactory than the year before.

Robins: I have read your statements, and I believe they warrant the conclusion that this year the harvesting will be more successful.

Stalin: It will most probably proceed much better.

Robins: I think you appreciate no less than I do the tremendous achievement embodied in your successful industrialization of agriculture, a thing which no other country has been able to do. In all capitalist countries agriculture is undergoing a deep crisis and is in need of industrialization. The capitalist countries manage somehow or other to cope with industrial production, but not one of them can cope with agriculture. The great achievement of the Soviet Union is that it has set about the solution of this problem and is successfully coping with it.

Stalin: Yes, that is a fact.

Such are our achievements and shortcomings in the sphere of agriculture.

Now the third question — about the education of children and of the youth as a whole. Ours is a fine youth, full of the joy of life. Our state differs from all others in that it does not stint the means for providing proper care of children and for giving the youth a good upbringing.

Robins: In America it is believed that in your country the child is restricted in its development within definite, rigid bounds and that these bounds leave no freedom for the development of the creative spirit and freedom of the mind. Do you not think that freedom for the development of the creative spirit, freedom to express what is in one, is of extremely great importance?

Stalin: First, concerning restrictions — this is not true. The second is true. Undoubtedly a child cannot develop its faculties under a regime of isolation and strict regimentation, without the necessary freedom and encouragement of initiative. As regards the youth, all roads are open to it in our country and it can freely perfect itself.

In our country children are not beaten and are very seldom punished. They are given the opportunity of choosing what they like, of pursuing a path of their own choice. I believe that nowhere is there such care for the child, for its upbringing and development, as among us in the Soviet Union.

Robins: Can one consider that, as a result of the new generation being emancipated from the burden of want, being emancipated from the terror of economic conditions, this emancipation is bound to lead to a new flourishing of creative energy, to the blossoming of a new art, to a new advance of culture and art, which was formerly hampered by all these shackles?

Stalin: That is undoubtedly true.

Robins: I am not a Communist and do not understand very much about communism, but I should like America to participate in, to have the opportunity of associating itself with, the development that is taking place here in Soviet Russia, and I should like Americans to get this opportunity by means of recognition, by granting credits, by means of establishing normal relations between the two countries, for example, in the Far East, so as to safeguard the great and daring undertaking which is in process in your country, so that it may be brought to a successful conclusion.

Stalin (with a smile) : I thank you for your good wishes.

Robins: One of my closest friends is Senator Borab, who has been the staunchest friend of the Soviet Union and has been fighting for its recognition among the leaders of the American Government.

Stalin: That is so; he is doing much to promote the establishment of normal relations between our two countries. But so far, unfortunately, he has not met with success.

Robins: I am convinced that the true facts are now having a much greater effect than at any time during the past fifteen years in favor of establishing normal relations between our two countries.

Stalin: Quite true. But there is one circumstance that hinders it. Britain, I believe, hinders it (smiles) .

Robins: That is undoubtedly so. Still, the situation forces us to act above all in our own interests, and the conflict between our own interests and the course towards which other countries are driving us is impelling America, at the present time more than at any other, to establish such reciprocal relations. We are interested in the development of American exports. The only big market with great possibilities that have not been adequately utilized hitherto by anybody is the Russian market. American businessmen, if they wanted to, could grant long-term credits. They are interested in tranquillity in the Far East, and nothing could promote this more than the establishment of normal relations with the Soviet Union. In this respect, Mr. Litvinov’s Geneva declaration on the definition of an aggressor country follows entirely the line of the Briand-Kellogg Pact, which has played an important role in the matter of peace. Stabilization of reciprocal economic relations throughout the world is in the interest of America, and we fully realize that normal reciprocal economic relations cannot be attained while the Soviet Union is outside the general economic system.

Stalin: All that is true.

Robins: I was and I remain an incorrigible optimist. I believed in the leaders of the Bolshevik revolution as long as fifteen years ago. They were then depicted as agents of German imperialism; Lenin, in particular, was considered a German agent. But I considered and still consider Lenin a very great man, one of the greatest leaders in all world history.

I hope that the information I have received at first hand may help towards carrying out the plan of rapprochement and cooperation between our two countries about which I have spoken.

Stalin (smiling) : I hope it will!

Robins (smiles) : If you had expressed yourself in the American manner you would have said: “More power to your elbow.” He is not sure of having much strength left in his elbow.

Stalin: May be.

Robins: I think there is nothing greater and more magnificent than to participate in the making of a new world, to participate in what we are now engaged in. Participation in the creation and building of a new world is something of paramount significance not only now, but thousands of years hence.

Stalin: All the same this matter presents great difficulties (smiles).

Robins (smiles) : I am very grateful to you for the attention you have given me.

Stalin: And I thank you for having remembered the Soviet Union after an absence of fifteen years and for paying it another visit. (Both smile. Robins bows.)

Greetings to the Red Army on its Fifteenth Anniversary

To the Revolutionary Military Council of the U.S.S.R.

Greetings to the men, commanders and political personnel of the Workers’ and Peasants’ Red Army!

Created under the leadership of Lenin, the Red Army covered itself with undying glory in the great battles of the Civil War, in which it drove out the interventionists from the U.S.S.R. and upheld the cause of socialism in our country.

The Red Army is today a bulwark of peace and the peaceful labour of the workers and peasants, the vigilant guardian of the frontiers of the Soviet Union.

The workers of our country, who have victoriously completed the five-year plan in four years, are equipping the Red Army with new instruments of defence. Your job, comrades, is to learn to handle those instruments to perfection and to do your duty to your country, should our enemies try to attack it.

Hold high the banner of Lenin, the banner of struggle for communism!

Long live the heroic Red Army, its leaders, its Revolutionary Military Council!

J. Stalin

Reply to A Letter From Mr. Barnes

Dear Mr. Barnes,

Your fears as to the safety of American citizens in the U.S.S.R. are quite groundless.

The U.S.S.R. is one of the few countries in the world where a display of national hatred or an unfriendly attitude towards foreigners as such is punishable by law. There has never been, nor could there be, a case of any one becoming an object of persecution in the U.S.S.R. on account of his national origin. That is particularly true with regard to foreign specialists in the U.S.S.R., including American specialists, whose work in my opinion deserves our thanks.

As for the few British employees of Metro-Vickers, (1) legal action was taken against them not as Britishers but as persons who, our investigating authorities assert, have violated laws of the U.S.S.R. Was not legal action taken similarly against Russians? I do not know what bearing this case can have on American citizens.

Ready to be of service to you,

J. Stalin

Notes

(1) Metro-Vickers—a British electrical-engineering firm which had contracted with the U.S.S.R. to render technical aid to enterprises of the Soviet electrical industry. In March 1933, criminal proceedings were instituted against six Britishers, employees of the Moscow office of Metro-Vickers, on the charge of engaging in wrecking at large Soviet electric power stations.

The investigation and the trial, which took place on April 12-19, 1933, established that the arrested Metro-Vickers employees had carried on espionage in the U.S.S.R. and, with the assistance of a gang of criminal elements, had organised damage to equipment, accidents and acts of sabotage at large U.S.S.R. electric power-stations for the purpose of undermining the strength of Soviet industry and of weakening the Soviet state.

ICMLPO (Unity & Struggle): The regional meeting of the Marxist-Leninist parties and organizations of Europe was held in Paris

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In June, our party had the joy and the honor of hosting the regional meeting of the Parties and Organizations of Europe, members of the International Conference of Marxist-Leninist Parties and Organizations.

Intense exchanges and discussion allowed us to draw up and adopt a political resolution on the situation in Europe and on the tasks and mobilizations that our parties intend to develop.

An important part of the discussion focused on the attacks of the liberal and social-liberal governments against the working class and the popular masses and on the development of the resistance. Particular attention was paid to developing solidarity with the working class and the people of Greece in order to break the blackmail of the troika (IMF, EU and ECB) and of the governments of the EU states, which are united against the Greek people.

We also addressed the issue of the criminal policy being carried out by the States and the EU against refugees and immigrants.

We analyzed the tensions, the armed conflicts, the militarization of the economies of several EU States, particularly the imperialist powers, linked to the greater involvement of NATO.

On these different issues, plans were discussed in order to develop joint work among our parties and organizations, with the objective of taking part in existing mobilizations with our analysis and proposals, or of creating them with the aim of winning other forces.

Here are the various texts adopted by the Regional Conference.

Communique

In June 2015, the regional meeting of the Marxist-Leninist parties and organizations, members of the International Conference of Marxist-Leninist Parties and Organizations (ICMLPO), was successfully held in France in a fraternal atmosphere of internationalist solidarity.

At the beginning of the meeting, the participants paid tribute to the memory of recently deceased comrades, Frede Klitgard, of the Workers’ Communist Party of Denmark (APK) and Juan Marte, of the Communist Party of Labor (PCT) of the Dominican Republic. The meeting was dedicated to these two resolute Marxist-Leninists, and pledged to follow their example.

The parties and organizations congratulated the Party of Labor (EMEP) of Turkey for their success in the electoral battle through the alliance with the party HDP [People’s Democratic Party].

The participants exchanged views on the situation and experiences of work developed in their countries. They discussed the capitalist crisis in Europe, the rise of the rejection of neoliberal policies and austerity policies of the EU, the threats of imperialist war and their consequences.

After a long debate, an important political declaration was adopted unanimously, in which we express our solidarity with the struggle of the Greek workers and people against the blackmail of the EU, the IMF and the liberal and social-liberal governments of the EU States. We call on everyone in all countries to take part in the initiatives of solidarity with the workers and people of Greece, and to take part in the demonstrations of June 20.

We also approved a motion of solidarity with the Norwegian dockers.

We call on the workers and peoples of Europe to develop and implement the orientations contained in this political declaration.

The participants established common tasks and political activities for the coming months, to advance in the struggle for the revolutionary transformation of society and the development of proletarian internationalism.

France, June 2015

Workers’ Communist Party of Denmark – APK
Communist Party of the Workers of France – PCOF
Organization for the Construction of the Communist Party of the Workers of Germany
Movement for the Reorganization of the Communist Party of Greece (1918-1955)
Communist Platform for the Communist Party of the Proletariat of Italy
Marxist-Leninist Organization Revolusjon of Norway
Communist Party of Spain (Marxist-Leninist) – PCE (ML)
Party of Labor of Turkey – EMEP

POLITICAL RESOLUTION

Let us mobilize against policies of austerity and war
Long live international solidarity!

For years, the EU and the governments of various countries have imposed austerity policies on the workers and the popular masses. The result of the crisis of the capitalist system, aggravated by these austerity policies, have been more than 25 million unemployed in the EU, a massive unemployment that primarily affects young people, who are condemned to insecurity, but also older workers, who are threatened with sinking into poverty. The poverty extends everywhere, in the cities and the countryside. With these austerity policies, “growth” destroys more and more jobs and further enriches the rich and large shareholders. It means more insecurity, lower wages, drastic cuts in social spending: health care, education, public transport, etc.

These neoliberal policies are being implemented by the governments that are applying the “road map” of big business, of the financial oligarchy, who want to reverse the social and political gains that the working class, toilers and peoples have won through years of struggle and who today are resisting and fighting to maintain them. The various European treaties and directives, particularly since the Maastricht Treaty (and its “convergence criteria” that established the euro), have continued and deepened this anti-worker and anti-people policy, in the name of the dogma of “free and undistorted competition,” which means the organized competition of all against all, social dumping, “liberalization of the labor market,” which means freedom for the bosses to fire, the super-exploitation of the workers and instability. Whether they are called the “mobility law” of Rajoy [Prime Minister of Spain], the “Jobs Act” de Renzi [Prime Minister of Italy], the “Hartz Law” in Germany, the “Macron Law” in France, etc. these counter-reforms are all aimed at lowering the price of labor power, facilitating dismissals, developing even more flexibility and challenging the collective rights of the workers.

In recent years, it is the “debt crisis” that serves to justify the policies of privatization, of drastic cuts in social budgets, the liquidation of measures of social protection, while they are more necessary than ever for the large impoverished masses. These include particularly women of the popular strata, working women, who are the first victims of the elimination of public services.

It is not the popular masses who are responsible for these debts. These debts were contracted the billions in public money were used to bail out the banks and help the big monopolies to become ever bigger, to finance the policies of armaments, “major projects” that are useless for the people but very profitable for the monopolies who build and manage them.

The rejection of these national and European austerity policies is general. This is shown in the workers’ and popular resistance, in the demonstrations, the strikes, etc. that are the results of these policies. It is also shown in the elections, particularly through the very high rate of abstention among the popular strata and the disavowal of the governing parties, whether of the right or of the social-democrats.

The right-wing populist parties, the parties of the extreme right are able to use their electoral capital on a sector of this protest movement to highjack it into “solutions” that avoid attacking the capitalist system and that are promoting nationalism, division and xenophobia. While some do not hide their fascistic and even fascist references, others hide them behind an increasingly “social” discourse.

But this rejection is also expressed in a progressive way, particularly through the support given to the forces that take a stand against the austerity policies, against the payment of the debt for life, against the orders of the IMF, the ECB, the EU and the imperialist powers in Europe.

We are in solidarity with the struggle of the Greek people and denounce the blackmail of the leaders of the EU

This is what happened in Greece, with the victory of Syriza in the January elections.

Simply calling for “renegotiating” the debt, for having announced the end of the policy of mega-austerity imposed by the troika, has unleashed an intense campaign of pressure, blackmail, etc. by the leaders of all the EU countries, the officials of the IMF and the European institutions, in order to impose the continuation of the austerity policy.

The hatred of these leaders is explained by the fact that in no case do they want a people to refuse to continue to suffer the austerity policies that they themselves are imposing on “their” people. They do not want the fight of the people, the workers, the youth of Greece, etc. to serve as an example to other peoples. They want to avoid the “contagious effect” that this resistance can cause. Therefore, they want to make the Greek government capitulate.

It is not possible to resist these pressures without the mobilization of the Greek workers and people. This is what must be developed.

But we also need the solidarity of the workers and peoples, especially in Europe, to develop. That is why we are working with all political, union and social forces that share this goal.

We must denounce and put pressure on the governments of the EU countries, particularly those of the imperialist powers such as Germany and France, to stop this policy of blackmail towards Greece.

We must demand the cancellation of the Greek debts.

We must develop the fight against the same austerity policies in all countries.

Down with “Fortress Europe”

Every day boats of refugee from Africa and the Middle East capsize, causing dozens of deaths. If they manage to enter the EU, which is continuing to build walls, police and military barriers, etc., they find themselves chased and harassed by the police of all the EU countries. They are forced to hide and to live in inhuman conditions. They are also the target of parties and organizations of the far-right and fascists who are carrying out racist and xenophobic campaigns on the theme of the dangers of the “invasion” of refugees.

These refugees, men, women and children, are fleeing poverty and wars. They come from Syria, from the Horn of Africa, from the countries of the Sahel, etc., in short, from countries where the great imperialist powers are waging wars. Under the pretext of the “fight against terrorism,” there is the war for control of mineral and oil resources, the control of strategic zones, the rivalries among the great powers and their local allies.

In other words, the warmongers are the main ones responsible for this immigration.

While the peoples are showing their solidarity, as in Italy, in welcoming the refugees, the governments are putting in place increasingly reactionary policies aimed at “preventing immigration” and criminalizing the migrants and all those in solidarity with them.

No to the policy of tension and war

Several EU States are taking part in imperialist wars in Africa and the Middle East.

The decision of the leaders of the European imperialist powers to integrate Ukraine into the economic and political sphere of influence of the EU, the direct interference of US imperialism through the growth in power of NATO at the borders of Russia and the support given to the reactionary government of Kiev and to the reactionary and fascist forces in Ukraine, have resulted in a situation of great tension at the very frontiers of the EU.

We are currently witnessing a “re-engagement” of NATO in Europe, strongly supported by the leaders of several countries of Eastern Europe, particularly Poland and the Baltic countries. This is accompanied by an increase in their military budgets.

For several years US imperialism has put pressure on its allies to “share the burden of defense.”

The danger of war in Europe is real.

We demand the cancellation of the treaty linking Ukraine to the EU, a treaty that subjects the workers and the peoples of Ukraine to the economic and political orders of the EU.

We denounce the policy of confrontation with Russia and we demand the withdrawal of the arms deployed by NATO in this region.

We call for mobilization for the withdrawal from NATO, the armed wing of US imperialism and its allies, as an important step towards its dissolution.

We call on all people to develop the mobilization against the rising war budgets.

We denounce the increasing establishment of police States

The involvement of several European imperialist powers in the “war against terrorism” in the Middle East and the Sahel is accompanied by the establishment of mechanisms of surveillance and mass control and the closer coordination between the police, civil and military intelligence services, linked with the US intelligence services, particularly through NATO.

In all countries, one can see the strengthening of the criminalization of “social protest,” the questioning of democratic freedoms, particularly in the area of the right to strike, the right to organize and demonstrate. These attacks are concentrated against the militant organizations and unionists who denounce the class collaboration of the leaders who are “negotiating” with the employers and the government the implementation of austerity policies.

We call on the people to denounce and combat the rise of fascism in the States that is currently developing.

The myth of a Europe of peace and shared prosperity is collapsing

The crisis in Europe is sharpening the contradictions within it, among the States, and within each country and, more generally, between the social classes. Inequality is deepening and tensions are becoming exacerbated.

The economic mechanisms put in place by the EU and the euro zone are increasing the unequal development and are posing the question, repeatedly and publicly, of maintaining the euro zone as it exists.

In the countries where the people have spoken out against joining the euro zone or against joining the EU, this opposition is continuing to grow.

Certain countries applied to join the EU, and then withdrew their application, such as Iceland.

Everywhere opposition to the EU, to its policies, its anti-democratic way of functioning is growing and, in the increasingly important sectors, this challenge also affects its decision to establish itself as an imperialist bloc in ever stronger competition with the other great powers, and its even greater aggressiveness on the economic and political level towards the dominated countries of Africa, Asia, Latin America, etc.

Everywhere the consciousness is also growing that it is not possible to change the EU from within into a supposedly progressive institution at the service of peoples.

Therefore, we unconditionally defend the right of the peoples to break with the EU, the euro and all its political and economic mechanisms.

Paris, June 2015

Workers’ Communist Party of Denmark – APK
Communist Party of the Workers of France – PCOF
Organization for the Construction of the Communist Party of the Workers of Germany
Movement for the Reorganization of the Communist Party of Greece (1918-1955)
Communist Platform – for the Communist Party of the Proletariat of Italy
Marxist-Leninist Organization Revolusjon of Norway
Communist Party of Spain (Marxist-Leninist) – PCE (ML)
Party of Labor of Turkey – EMEP

Members of the International Conference of Marxist-Leninist Parties and Organizations

MOTION OF SOLIDARITY WITH THE DOCKERS OF NORWAY

Call for support for the Norwegian dockers

The dockers are known worldwide for their internationalism and their solidarity with the workers and seamen who are fighting for their rights. Now the dockers themselves are in urgent need of international support and solidarity.

The dockers of Norway have been in conflict since November 2013, that is, for almost 12 months. They have been repressed and arrested by the police. Their only demand is that the employers ratify the collective agreement and abide by the Convention 137 of the ILO which grants the unionized dockers the prerogative to load and unload the cargo ships. But this right is being denied them, including in the port of Oslo.

In the port of Oslo, this fight has another international aspect, because the Turkish company Yilport obtained the “exclusive right” to operate in the port for the next twenty years. But Yilport not only refuses to negotiate a collective agreement, but even refuses any discussion with the dockers’ union. Yilport is also hiring unskilled workers from temporary employment agencies, which results in dismissing the dockers from their work. This attempt to eliminate the dockers’ union and to undermine the collective agreements is totally unacceptable. In reality this is an attack against the workers in all countries and in all sectors.

The Marxist-Leninist parties and organizations of Europe call on the workers, unions and democratic forces to show their solidarity and boycott Yilport until it rehires the union dockers in the port of Oslo and signs a collective agreement with them.

Workers of the world, unite!

Resolution adopted by the regional conference of Marxist-Leninist parties and organizations, held in France in June 2015

Source

The Girondes of Working Class

CPIM-21st-Party-Congress-Logo-Full

Written by Damodar on The Other Aspect blog.

The 21st party congress of CPI (M) recently concluded at Visakhapatnam with the usual ritualistic flavour that has become the hallmark of such events for the parties of Left Front particularly the CPI and the CPI (M). The party congress would be known for selecting or rather electing “unanimously” its new General Secretary Sitaram Yechury. Though the outgoing general secretary, Prakash Karat wanted the post to go to Ramachandran Pillai. The ongoing factional struggle between Karat and Yechury was somehow saved from being open in public when the Karat faction backtracked on the voting for new General Secretary. While Yechury was backed by West Bengal delegates, Pillai a Karat man enjoyed the support of the Pinarayi Vijayan faction from Kerala, but the Bengal lobby wanted a more pragmatic (read one who can hob nob with Congress and other parties) man at helm.

The party Congress of CPI (M), no longer evinces the same interest particularly among the Left movement as it did few years ago. No communist group/party or left journal devoted any analysis or criticism to the policy/issues raised in the congress. A major reason might have been that for CPI-M, like its counterpart bourgeoisie parties there has been a wide gap between its political-organisational reports and its politics on ground level. Further the dwindling base of the party and its almost moribund energy was enough to deter the bourgeoisie media. For the revolutionary Left, it has stopped taking cognizance of this party’s activities since long. Revisionist parties — as the CPI (M) has become–, adopts something in their party congresses while doing the opposite when it comes to the realm of day to day politics. This is an important characteristic of revisionism that differentiates it from a genuine revolutionary Marxist-Leninist Party.

Yet, nationally and internationally there are several comrades who still consider CPI and CPI (M) a still Marxist-Leninist formation, hence we would like to take this opportunity to analyse the resolutions particularly the new Political Tactical Line (PTL) adopted in the congress. At the same time it is our duty as a Marxist Leninist to wage a struggle to expose the real intention of reformist-revisionists so that their real intention comes to the fore.

21st Congress: The identity Crisis.

The Congress took place at a time when the party finds itself at the lowest. It has secured the lowest number of seat in Lok Sabha since its formation, its rule in the states is at lowest with only tiny Tripura saving the grace, the confidence of the leadership is at lowest so is the enthusiasm of the cadres. The set back of Bengal has still not gone so is the factional crisis in Kerala. In other parts of the country it was hardly any force to reckon with but there also it has lost its confidence to lead mass movement. The net result is the party is grappling with severe identity crisis. The spaces being vacated by it are being grabbed by new entities like Aam Admi Party (AAP) in Delhi and even by NGOs in several places. It has squarely failed to cash on the anti-establishment feeling of the common masses and in its once strong hold the party is seen as equally corrupt with rank opportunists, and self-seekers found it highly rewarding to join the party and to ditch it as well. So it is not a surprise when a senior party leader admitted that around 40,000 members have quit the CPM in West Bengal since 2011 and major section of it joining the BJP. The decimation and decline shows no sign of abetment, if the recently concluded bye-elections and the civic elections are any sign, where the Trinmool Congress resoundingly trampled the party and Left front’s candidates. Bengal unit is no longer able to mobilise masses on the scale as when it was in power.

Left front government in its eagerness to hug the capitalists nudged the peasant & proletariats, who in turn dumped him in the elections. The people have thoroughly rejected the conversion of CPI (M) from a social democratic party to that of agent of national and international finance capital. It’s policy of embracing industrialisation-at-any-cost by appeasing international and national capital and inviting predatory multinationals like Wal-Mart in the naïve belief of advancing the “productive forces”. It forcibly acquired land, deeply antagonising peasants and the working class as well. But only the revolutionary force and its organisation can help in advancement of productive force. After three decades of stagnant rule based on terror, intimidation and sycophancy CPM neither commanded a revolutionary force nor was it ever a revolutionary organisation.

The Singur-Nandigram occurrences weren’t causes but effects/symptoms of a deeper malaise: pursuit of neoliberalism, which the party’s central leadership assails. The CPM, with a strongly upper-caste sophisticated, westernised, middle and upper middle class leadership, failed to combat caste, gender and anti-Muslim discrimination not is it able to understand the changing dynamics of the Indian polity. It became a party of careerists bereft of imagination, yet complacent and arrogant first towards its smaller partners and then to the people at large. Tales of party leaders threatening masses and silencing every voice of dissent using most heinous ways that only a bourgeoisie party is capable of undertaking that too against fellow communist showed the rot that had engulfed it.

In name of industrialisation the CPM government was happy to give away with hundreds of acres of fertile land perhaps best quality agrarian land of the country at throw away price to Tata. When the people protested they even did not blink an eye to shoot the poor peasants and rural proletariats their support base for decades and terming them as reactionaries.

Prakash Karat has been lecturing and writing long articles on the exploitation in SEZs across the country but same Karat had no qualm in declaring SEZs in Bengal as ‘progressive’.

Similarly in Kerala it has suffered setbacks because of the CPM-instigated murder of political rivals like T.P. Chandrasekharan, neglect of social and gender issues, and outright opposition to Western Ghats conservation and support for encroachers. The party today is seen to be no different than Congress of RSS. Gone are the days of mass mobilisation today it relies on mob mobilisation to silence its critique. Several top leadership of Kerala have been implicated in various scams. In Lavalin scam the party’s State Secretary and the former Politburo member Pinarayi Vijayan is directly involved.

The leadership both at national and state levels seems to have lost the capacity to lead independent mass actions. Years of tailism and being propped on the crutches of this or that bourgeoisie party has done away with the capability of agitation, a fact that has been accepted in the Congress as well.

 The Congress apart from adopting regular resolutions and reports adopted a new PTL. The previous PTL was adopted at the 13th congress held at Thiruvananthapuram from December 27 1988 to 1st January 1999.

The Political Tactical Line: Nothing new!

Suddenly a realisation has dawned in the party that there is something wrong with their strategy and the organisation. From where did this sudden fountain of realisation erupt? It did not emanate as a result of any genuine desire to resist the onslaught of capital but the new PTL itself answers it. It says:

 “The 2014 Lok Sabha election review conducted by the Central Committee in June 2014 had concluded that the Party has been unable to advance for sometime and this was reflected in the poor performance of the Party in the election.…The election review report adopted by the Central Committee stated that:

 “In successive Party Congresses we have been emphasizing the need for enhancing the independent strength of the Party. Some of the states have attributed the erosion of our independent strength to the tactics of aligning with the bourgeois parties. The failure to advance the independent strength of the Party necessitates a reexamination of the political-tactical line that we have been pursuing”.

So the necessity of reviewing the PTL came from the massive drubbing that it got in the elections. Since 1989-90 it may be remembered CPI (M) with its politics of alliance along with manipulations what may be termed as Harikishen Surjeet’s line was instrumental in playing a major role in power-play/ power broker role. Though the party never had any significant pan India presence, yet the Machiavellian politics of Surjeet kept CPI(M) at centre of Delhi’s power gallery.

Today things are very different, The party’s sudden deemphasizing of electoral politics and rhetorical calls for “mobilizing the masses” are due to its marginalization in bourgeois parliamentary politics. So to be relevant it has to raise the bogey of mass mobilization as recently we saw AAP doing in Delhi. In fact CPI (M) has been highly mesmerised with the polity and tactics of AAP. Its mouthpiece even eulogised the Kejriwal’s team and indirectly pleading for an alliance, but unfortunately it got no feeler from the later for having any kind of alliance.

The PTL further says:

“The P-TL is the tactics we adopt from time to time in a specific situation in order to advance towards our strategic goal which is the People’s Democratic Revolution. The tactical goal we have set out in the P-TL is the forging of a Left and democratic Front in order to present the Left and democratic alternative to the bourgeois-landlord order. The struggle to forge the Left and democratic alternative is part of our effort to change the correlation of class forces so that we can advance towards our strategic goal.”

So much for that coveted goal of Peoples’ Democratic Revolution, which this party wants to achieve by forging a Left and democratic Front. Interestingly the mention of revolution starts and ends here. The entire document then is about forging or not forging alliance with the other parties! It does not mention any substantial tactics to be adopted vis-à-vis the working class nor with the peasantry.

One is bound to ask, who are the “democratic” parties? While the PTL has left us to speculate, but those who have been following the Indian polity even cursorily would have no hesitation in answering the question. For the CPM leadership the democratic forces among others today are the siblings of the so-called Janata Parivar like the Samajwadi Party, Janata Dal, Rashtirya Janata Dal and similar parties. Now everyone knows the character of these parties and what harm they have done in stalling the progress of the working class and peasant movement. These rank casteist outfits are no better than the rightist or the Bourgeoisie outfits. In fact when there will a call for decisive struggle against the forces of fascism and capitalism, these outfits instead of being with the working class and toiling masses would ally with the capitalist and fascist forces.

The Political Resolution of the 10th Congress explained the Left and democratic Front as follows: “The struggle to build this front is part of our endeavour to bring about a change in the correlation of class forces, to end a situation in which the people can choose only between two bourgeois-landlord parties, and get imprisoned within the framework of the present system. By gathering all Left and democratic forces together for further advance, the Party makes a beginning to consolidate these forces which, in future, will participate in shaping the alliance for People’s Democracy under the leadership of the working class. The left and democratic Front is not to be understood as only an alliance for elections or Ministry, but a fighting alliance of the forces for immediate advance – economic and political – and for isolating the reactionary classes that hold the economy in their grip.”

This point needs to be elaborated. The Party has elucidated its intention of gathering the Left and democratic forces for future advance of the party, to shape the alliance for People’s Democracy (emphasis ours) so much so for the caricature of Peoples’ Democracy! Peoples’ Democracy as propounded by Stalin and further elaborated by Dimitrov is a special form of dictatorship of the proletariat, where there is a class alliance with other progressive forces under the general leadership of the Communist or workers’ party. This model of Peoples’ Democracy was implemented immediately after the Second World War in Eastern Europe and China.

The characteristic feature of Peoples’ Democracy is:

The rise and development of people’s democracy should be examined concretely and historically, since people’s democracy is passing through various stages and its class content changes, depending on the stage.

The first stage is the stage of agrarian, anti-feudal, anti-imperialist revolution, in the course of which people’s democracy arises as the organ of revolutionary power, representing in its content something in the nature of dictatorship of the working class and peasantry, the working class having the leading role. A characteristic feature of this power is that it directs its sharp edge against imperialism, against fascism.

The second stage is the establishment of the dictatorship of the working class in the form of people’s democracy and the building of Socialism. (A. Sobolev, Peoples’ Democracy as a Form of Political Organisation of Society)

So we leave it to the good sense of our comrade readers to decide which politics of CPM confirms to their working towards the course of achieving the Peoples’ Democratic Revolution. What has been the role of CPM in fight against imperialism or against Fascism? When they were in power, the policies adapted by them were no different from that of any other bourgeoisie party.

Before proceeding further we would like to state another related issue, which gets mentioned prominently. The PTL in point 14 further states about the adoption of Left Democratic Secular Front:

For this we have to look for the reasons within the P-TL itself. From the 13th Congress (1988) we started talking of the unity of the Left and secular forces. We made a distinction between the immediate  task of forging a non-Congress secular alternative to meet the current situation and the task of building the Left and democratic Front. By the 15th Congress we had set out the slogan of the unity of the Left, democratic and secular forces. By that time we had more or less concluded that the Left and democratic Front is a distant goal and is not a realizable slogan as reiterated in the 11th Congress of the Party. By and by we relegated the Left and democratic Front to a propaganda slogan. The Left, democratic and secular alliance became the new interim slogan. While this began as a slogan against the Rajiv Gandhi Congress government to rally the non-Congress secular bourgeois parties while demarcating from the BJP, later it became the slogan directed against the BJP. It is on that basis that we joined the United Front, without participating in the government in 1996.

Now in terms of secular, the most important secular formation for our “Marxist” friends apart from the so-called democratic parties are parties like AIADMK, DMK, TDP etc. who share the crumbs with our revolutionary “Marxists” thus helping them win a seat here a seat there. Though, it never has crossed the mind of our comrades to check about the secular credentials of these parties. The less said the better. All such “secular” and “democratic” parties have no qualm of hobnobbing with the BJP or Congress as the compulsion of the parliamentary polity demands.

The Entire PTL is full of such jingoism and pseudo revolutionary phrase mongering, but we will not go into the detail in interest of space and time of our dear comrade readers.

How different were CPM from the other bourgeoisie parties when in power? After the 2004 elections Ashok Mitra wrote an article commenting on the capitulation of the CPI M leaders to the camp of neo liberalism, he wrote:

The main poll issue in West Bengal was the state government’s policy of capitalist industrial growth; events in Singur and Nandigram were offshoots of that policy. Many sections, including staunch long-time supporters of the Left cause, had been shocked by the cynical nonchalance initially exhibited by the state government on police firing on women and children in Nandigram. A series of other faux pas was committed in its wake, including the messy affair of the Tata small car project. The electorate reached its conclusion on the government’s putting all its eggs in the Nano basket. Once the Tatas departed, the state administration was dubbed not only insensitive, but incompetent as well. Questions have continued to be raised one after another: was it really necessary to take over fertile land at Singur, why could not the Tatas be prevailed upon to choose an alternative site, why did not the state government apply adequate pressure on the United Progressive Alliance regime in New Delhi — which was assumed to depend upon Left support for survival — to pass the necessary legislation so that land belonging to closed factories could be taken over to locate new industries? And why the state government was reluctant to lobby earnestly in the national capital for adequate resources from centrally controlled public financial institutions to the state exchequer, which could have ensured industrial expansion in the public domain itself — whether this reluctance was merely due to lack of resources or because of a deeper ideological reason such as a loss of faith in socialistic precepts and practices.

A number of other unsavoury facts also need to be laid bare. A state government does not have too much of funds or other spoils to distribute. But in a milieu where feudal elements co-inhabit with the petit bourgeoisie, persons in a position to dispense only little favours can also attract fair-weather friends and gather sycophants around them. Concentric circles of favour-rendering develop fast. Merit necessarily takes a backseat in official decisions. Corruption, never mind how small-scale, creeps in. Nepotism, sprouting at the top, gradually infects descending rungs of administration, including the panchayats. Much of all this has taken place of late within the precincts of the Left regime. The net effect is a steep decline in the quality of governance. The fall in efficiency is illustrated by the inept handling of programmes like the rural employment guarantee scheme. To make things worse, all this has been accompanied by a kind of hauteur which goes ill with radical commitment.

As we have mentioned umpteen times revisionist parties use revolutionary phrase mongering to hide their revisionist character. Same goes with our great defenders of Socialism and Peoples’ Democracy, while degeneration and double-talks reach their nadir while lending credence to abject surrender to the lap of the World Bank, the IMF, the MNCs and the World Bank’s trusted men like Manmohan Singh or even the regional allies of capitalism like Mulaym Singh and Chandrababu Naidu. Did not Tito or Khruschev continued to hang the Communist, Marxist and other revolutionary sign boards, while doing the exact opposite of what the tenants of Marxism Leninism teaches.

 But we must commend the CPM leadership for they are always not dishonest. In point number 17, they have been ultra-honest (if there is any such word in English):

As the realization of a third alternative became more unattainable, in the 18th Congress Political Resolution another distinction was made between the electoral understanding for specific elections by drawing the non-Congress bourgeois parties and the building of a third alternative. Thus the Left and democratic Front was relegated to the third phase of our task. The first phase being the immediate current task of electoral understanding for a specific election by drawing in the non-Congress bourgeois secular parties. The second phase being the formation of a third alternative based on a common programme which would be forged by building joint movements and struggles. The third phase was the building of the Left and democratic Front.

Reading this point in conjunction with point 16 and above, clearly demonstrates the real intention and politics of the party. The aim of the party three layers down is elections and nothing but elections. First they want or wanted to build an electoral understanding of non -Congress (or now non BJP) parties followed by a common front like the discredited United Front and followed by the so called Left Democratic Front. So the party will work for elections and nothing but elections. We all know that the limitations of bourgeoisie elections, and neither are we for boycotting it like some of the adventurist groups claims, but basing the entire politics around parliament, did not Lenin sharply criticised this tendency terming it as parliamentary cretinism? What can one gain but few reforms for the working class even if one has a commanding position in such institution? A quote from Lenin will not be out of place here. Lenin in his article titled “Marxism and Reformism” wrote:

Unlike the anarchists, the Marxists recognise struggle for reforms, i.e., for measures that improve the conditions of the working people without destroying the power of the ruling class. At the same time, however, the Marxists wage a most resolute struggle against the reformists, who, directly or indirectly, restrict the aims and activities of the working class to the winning of reforms. Reformism is bourgeois deception of the workers, who, despite individual improvements, will always remain wage-slaves, as long as there is the domination of capital.

The liberal bourgeoisie grant reforms with one hand, and with the other always take them back, reduce them to nought, use them to enslave the workers, to divide them into separate groups and perpetuate wage-slavery. For that reason reformism, even when quite sincere, in practice becomes a weapon by means of which the bourgeoisie corrupt and weaken the workers. The experience of all countries shows that the workers who put their trust in the reformists are always fooled. (emphasis ours)

Now this is what CPM aims for, some reforms!

The PTL goes on to summarise the experience of various fronts and alliances that the party had undertook in the past and not so distant past in a tone that resembles a chronological reading of the government formation since the National Front days. While the party has accepted its mistakes there has been no self-criticism or mention of its wrongdoing in Bengal and Kerala. So much for honesty of a revolutionary communist party! It has though in passing mentioned,:

“What has to be recognised is that the processes underway during the globalisation-neo-liberal regime have posed new problems for the Left and has created adverse conditions for developing the movements of the working class, agrarian, students, youth and women. It is imperative that we understand the processes at work and work out new and suitable tactics and organisational methods.”

But as much CPM may gloss over its mistakes the proletariats have not. In Bengal the toiling class has not forgotten the tyranny and high handedness of the party nomenklatura who adopted all kinds of legitimate and illegitimate means to bring success to their rule and satisfy the mandarins or babus (from Jyoti babu to Buddhadeb babu) at the Muzaffar Ahmed Bhawan (the West Bengal state HQ) rather than the toiling masses and even to silence the enemies. The coal field of Bengal still reverberates from the atrocities and the terror of the CITUs leadership. The people have not forgotten the several bloody attacks perpetrated by the hooligans at the behest of the party. The cowardly assassination of the fire brand trade union and highly respected communist leader comrade Sunil Pal on 29-12-2009 by the hired goons and marauders of CPI (M) is still fresh in the minds of people of coalfields. His only fault being that he was a dedicated Marxist-Leninist whose sole aim being to bring justice and safeguard the workers interest against the capitals offensive.

The CPM de-radicalised the trade unions and lost its prime working class cadres, reducing Trade Union to being a dovetail of the government and a means for money collection and keeping in check the working class. At every juncture CITU was found capitulating to the whims of capital. Apart from one day ritualistic strike and dharna, whose outcome is known to all and sundry beforehand it has only compromised the interest of the working class at an all India level. During the Maruti struggle CITU instead of giving a militant leadership to the struggle was seen siding with the management and on the pretext of maintainingindustrial peace was seen chiding the belligerent workers. When the workers were put in jail it did nothing to bring them out but at every crucial juncture sided with the management.

Similarly in the struggle against Coal ordinance in January 2015, the CITU leadership since beginning of the strike had adopted a defeatist position and was only seen praying and pleading to the government for some reforms. We are once again reminded of the words said by Lenin for the reformists, “Fight to improve your condition as a slave, but regard the thought of overthrowing slavery as a harmful utopia”! does it not fit CPM today?

Another glaring point that finds no mention in either the PTL of the Pol-Org Report is the  support the CPI-M extended to Pranab Mukherjee in the last presidential election. The CPI Congress document on the past developments noted this and informed its members of the division suffered by the Left on this issue when the CPI and other Left parties refused to follow the CPI-M and back Pranab due to his role in carrying out neoliberal reforms. The CPI-M’s backing of Pranab is not so simple as it may seem—for behind it was the largesse by a Big Business house (with which Pranab is deeply associated) to the CPI-M.

 With all the tall promises and phrase of mass mobilization the PTL amply gives the direction that party will take on ground. Consider point 30, it says:

There can be swift changes in the political situation. New contradictions may merge amongst the bourgeois parties and within them. Political parties may undergo changes through splits or coming together to form a new party. Flexible tactics should be evolved to deal with the situation. In our pursuit of united actions, joint platforms may have to be formed with various social movements, people’s mobilizations and issue-based movements.

So, in event of an alliance this clause will be invoked to hoodwink the cadres, in guise of “contradiction” opportunist alliance will be forged, neo-liberalism will be supported and the bourgeoisie will be given free hand to rule. Same intention is reflected in point 46.

Given the danger posed by the communal forces reinforced by the BJP in power with an absolute majority in the Lok Sabha, we should strive for the broader unity of the secular and democratic forces. Such joint platforms are necessary for a wider mobilization against communalism. Such platforms, however, should not be seen as the basis for electoral alliances.

Given the nature and ambition of these democratic and secular parties whom our friends had just termed as agent of capitalist and supporter of capital, there is again a yearning for an alliance. Old love never dies! By the time the PTL came for conclusion, the authors of this document could not suppress their desire for alliance.

So after all the epithets and brickbats the point 61 mentions:

Electoral tactics should be dovetailed to the primacy of building the Left and democratic front. In the present stage, given the role of the regional parties, there is no basis for forging an alliance with them at the national level. Instead, we can have electoral adjustments with non-Left secular parties in states wherever required in the Party’s interests and which can help rally the Left and democratic forces in the state. (Emphasis ours)

Voila here we are back to square one, the party will continue to do what it has done, and it will just not change. Years of tailism cannot be shed in one day or rather one congress. So, the party will enter in alliance with the non-Left secular parties in states and not at national level, but then comrades of CPM you yourself do not contest elections on national level if we compare your seats with the national parties! Since its formation CPM has failed to develop even the trade union consciousness, not to speak of revolutionary consciousness. Rather it has developed mafia consciousness and factional fights. Politics and ideology were never in command because they lost their credibility, as communist, the line pursued by it under the banner of Marxism-Leninism stands exposed through its ideological line and practice at all levels. Then how is it possible for the CPM to practise anything for the oppressed classes?

Conclusion

As Lenin wrote, “Reformism is bourgeois deception of the workers, who, despite individual improvements, will always remain wage-slaves, as long as there is the domination of capital.” The CPM is no different.

Sitaram Yechury is known to follow the Surjeet line and there is already a campaign that the party is preparing to cosy up its relationship with Congress. As mentioned in a news magazine known to be close to both CPI and CPM “Yechury is eager to join hands with the Congress in combating the Sangh Parivar. It betrays a pathological antipathy for the Congress and a flawed understanding of the present situation. the Congress does not mean only Sonia Gandhi, Rahul Gandhi or Manmohan Singh. The Congress means the hundreds of thousands of Congress-supporting masses spread all over the country whose participation is essential in any move-ment against communalism and in defence of secularism. The Left can deny this reality and cling to the old slogan of ‘Left-Democratic Unity’ only at its own peril and at the cost of weakening the movement.”

The party today has not learnt from its past mistakes nor is it in its agenda to counter and challenge the onslaught of neo-liberalism and imperialism. At best it will continue to give the knee jerked reaction in form of out dated token strikes and rallies to LPG (Liberalisation, Privatisation and Globalisation). Today the task of the revolutionary communist has to be to expose this farce and unleash an in-depth political and theoretical offensive against it to expose its opportunist line and practice.

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Gironde: One of the two political groups of the bourgeoisie during the French bourgeois revolution at the close of the eighteenth century. The Girondists, as distinct from Jacobins, vacillated between revolution and counter-revolution, and their policy was one of compromise with the monarchy. Lenin frequently stressed that the Mensheviks represented the Girondist trend in the working-class movement.

Readers may also like to read our analysis on Left Front 

https://otheraspect.wordpress.com/2009/06/15/left-out-of-the-great-indian-tamasha/