Category Archives: China

U.S. Hands Off North Korea!

No To The Imperialist War Drive!

Resistance Editorial

The so-called “America First” budget put forward by Trump includes a 10% increase in military spending. This increases what is already the world’s largest military budget by $56 billion. The cost of this increase will be balanced on the backs of the most vulnerable sections of U.S. society — children, seniors, and those suffering from illness — as the increases are offset with slashed social spending. Long-term vital programs like “Meals on Wheels” are in the crosshairs in favor of yet more spending on an already bloated military.

Trump has already engaged in military action from the failed raid in Yemen, which killed 30 civilians, to the drone strike on a Mosque in Aleppo, Syria, killing 46 worshipers. The administration claimed to have struck a meeting of al Qaida militants, an assertion that is contradicted by sources in Syria. U.S. troops are already on the ground acting as “advisers” in Syria — a program that was begun by Obama.

Trump rode to the White House on a wave of saber rattling, reaction, immigrant bashing, and racism. This war drive is coupled with an all out attack on democratic rights and programs for the relief of the poor at home — medicaid, school lunch programs, meals on wheels. More tax breaks to the rich guarantee that the cost will be borne by working class people, the poor and oppressed communities.

Tillerson’s threat toward North Korea

Secretary of State Rex Tillerson signaled the end of U.S. “strategic patience” with North Korea, stating that a “preemptive strike” against North Korea is possible. An attack on North Korea is a high-risk scenario that raises the very real danger of a regional conflict involving China and North Korean retaliatory attacks on both South Korea and Japan. North Korea has the capability to strike back with conventional and nuclear weapons. North Korea’s heavy artillery could flatten South Korea with disastrous results.

Millions would perish from such an ill-conceived U.S. adventure.  A war with North Korea would create a refugee crisis, starvation, and billions of dollars in property destruction. The effect on world financial markets could be devastating. Trump’s bellicose threats towards China during the campaign, and since taking office, increase the possibility of China’s involvement as an ally of the North Koreans. For the time being, Beijing has indicated their willingness to cooperate with the U.S. on the question of the North Korea’s nuclear weapons program. However, tensions have been high, with China pressing its claims on islands in the South China Sea, and Trump’s missteps on Taiwan and the US’s “One China Policy” all helping make the region a powder keg.

From 1950-1953, the U.S. fought a bloody war in Korea as the first violent engagement of the Cold War between the USSR and the West. More than 33,000 U.S troops perished in the war as well as more than a half million combined combat and civilian deaths of South Koreans. North Korea suffered more than 200,000 killed in action and an additional 300,000 wounded. Chinese military losses were also high with more than 130,000 dead and 340,000 wounded. The Korean War was fought to a stalemate and there was never a peace accord between the involved parties. The combat death toll for all sides is estimated by some experts at more than 1.2 million. During the war, the South Korean regime murdered tens of thousands of suspected communist sympathizers and their families.

Mass Antiwar Movement Needed

During the U.S. wars in Iraq and Afghanistan, sections of the antiwar movement consciously de-mobilized themselves in order to provide cover for the Democrats. It remains to be seen whether the scattered antiwar forces will find their voice in time to mount opposition to a U.S. attack on North Korea. While Trump and Tillerson’s rhetoric has turned the region into a powderkeg, prominent Democrats have remained silent.

To stop the drive towards war a  united front mass action oriented movement is needed. The test for the U.S. left and antiwar movement is to create the broadest possible mobilizations against Trump’s grotesque militarism and aggression around the world, while demanding the funding of human needs at home.  

Going forward, we need to build a non-exclusionary, democratic movement that is independent from ruling class political parties. This is independent of positions about the character of North Korea. The first priority, regardless of attitude toward the Kim regime, is to prevent another imperialist war. That means turning the anti-Trump struggle into a fight to oppose war and re-orient the US economy to serve human need.

U.S. Hands Off North Korea!

Money for jobs, education and healthcare, not for war! 

Feed children and seniors, not the Pentagon!

Source

CPGB: The People’s Republic of Mongolia

The Mongol question has suddenly become of first-rate world importance. The Mongols, an ancient but little-known people who once ruled the whole of Asia, are now divided between four states. Many of them live in the Soviet Union, citizens of the Buryat-Mongol republic in Siberia or of the Kalmyk Autonomous Region on the lower Volga. Others, more numerous, are Chinese subjects inhabiting the provinces outside the Great Wall, Jehol, Chahar, Kan-su, etc. Others again, living in so-called Inner Mongolia, are divided between China and the Japanese vassal state of Manchukuo. But over the traditional home lands of the Mongols, the steppes, mountains and rivers north of the Gobi and stretching almost to Lake Baikal, so-called Outer Mongolia, flies the red flag of the Independent People’s Republic of Mongolia.

It is Japanese policy to gather the Mongols living outside the People’s Republic, those in Inner Mongolia and Manchukuo, and launch them in an attack on the People’s Republic. In this way, the Japanese hope to turn the line of Soviet defences in Siberia under the cloak of a struggle for Mongol “freedom.”

Every worker has, therefore, good reason for wanting to know what is the People’s Republic. Though Outer Mongolia did not become a republic until 1924 it won its final independence in 1921, when the Russian White Guardists led by Ungern-Sternberg, and paid by the Japanese, were defeated and broken up by a national rising organized and led by the Mongolian People’s Party, now called the Mongolian People’s Revolutionary Party.

The revolution was a Mongolian one, its chief forces the Mongolian Red Army, only small Soviet Red Army forces giving help. As soon as the country was freed from invaders the Soviet forces withdrew and from that day to this have never crossed the Mongolian frontier.

A number of brilliant fighters and revolutionaries arose from the Mongols, mostly from the poorer Arats (nomad working people), though the first great Mongol leader, Sukhebatoz, who died in 1923, was from the former ruling classes.

From the heroes of those days, however, were formed the present leaders of the People’s Republic, Amer, the president; Gendun, the Prime Minister, a poor nomad by origin, whose name is already immortal among the Mongols; )cmid, the present commander-in-chief of the Red Army; rind Choibalsan, former heroic soldier, now Minister for Cattle-raising and Agriculture.

The Mongols are nomads, and before their revolution were under the domination of feudal chiefs, both lay and clerical. The revolution destroyed the power of the feudal nobility and Buddhist lamas, as well as driving out the Chinese and Russian merchants who were rapidly enslaving the people to foreign capital. A great democratic revolution placed power in the hands of the people (Arats), nationalized the land, minerals, forests and water, annulled debts, separated church and state, gave the people their own army, nationalized foreign trade, abolished all titles and introduced complete equality—national, religious, racial and sex—for all the working people.

The constitution adopted by the Republic in 1924 contained this important phrase: “In view of the fact that the real people all over the world aim at fundamentally destroying present capitalism and reaching socialism and communism, the foreign policy of our People’s Republic must correspond to the interests of the revolutionary masses and main tasks of the oppressed small nations and really revolutionary nations of the whole world.”

The People’s Republic, though not itself a socialist republic, has, therefore, always maintained the closest friendship with the peoples of the Soviet Union.

The path of the new Republic has not always been smooth, and many mistakes have been made. In 1927 the leadership in the Government and People’s Party had passed to the right wing, who held up the anti-feudal revolution and aimed at a capitalist development with Japanese and American help. Thanks to the energy of Gendun, then secretary of the People’s Party, and a small group of comrades, they were defeated and leadership passed to the left wing in the Party. The left also made mistakes, thinking it would be possible to bring the nomad Mongols directly to socialism, to destroy the power of the monasteries, and so on.

The clerical question in Mongolia is of great importance. Out of a population of just over 700,000, more than 90,000 live in the Buddhist monasteries, each of which is the centre of a so-called commune (djassa). The attempt to make the monks return to secular life by force, the mechanical formation of collective farms and ranches among people who could not understand them, led finally to the Government losing the confidence of many of the people.

Comrade Gendun again fought bitterly and almost alone for sanity. At the end of 1932 he was victorious and a new leadership in the Government and People’s Party was elected. The collective farms and compulsion in religious questions were abandoned, and the policy of gradually preparing the transition to a non-capitalist development replaced the attempt to emplant socialism by force.

Tremendous progress in education, health and general culture has now been made. Co-operation in marketing and distribution extends throughout the country and the Government has also a special commercial organization for dealing with private traders. The first factories have begun working at the capital, Ulan-Bator-Khoto, and there is now a small, well-organized Mongol working class, which may become a guarantee of the eventual triumph of non-capitalist development. There is an efficient motor transport system throughout the country, and much work has been done towards eliminating cattle disease.

The Red Army of the People’s Republic is now a highly disciplined, mechanized force, able to conduct extensive combined operations of motorized forces, cavalry, artillery and aeroplanes. Its leadership is excellent and should the Japanese either themselves invade the country or send in mercenaries led by the princes and monks of Inner Mongolia, they will find that no “walk-over” such as they experienced in Manchuria will be possible. They will be faced by a whole people ready and eager to fight for its national existence.

The Mongolian People’s Republic is a democratic state, a dictatorship of the people against the parasites and feudal hangers-on. It is creating prosperity for its people and is a fact of great significance in the history of Eastern peoples.

Source

ICMLPO: Stop the warmongers! – The beating of war drum is getting louder and louder

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The beating of war drum is getting louder and louder.

NATO and US allies on the one hand, and Russia and China on the other, are steadfastly heading toward war. The threats of war are being expressed quite blatantly. What used to be “buffer zones”, have become militarized. The armies and navies of the imperialist are confronting each other in many region of the world: in Syria, around the Arab peninsula; in the South China Sea; in the Baltic region and in the Ukraine; and last, but not least, in the vast Arctic.

For imperialism, war is the “final solution” to the crisis and stagnation in which its system find itself. Plundering of raw material and grabbing of new market is insufficient. New and huge profit can be obtained through destruction, and subsequently by reconstruction in the regions devastated by war.

There is an increasing risk that many regional wars instigated by the imperialist powers, in particularly by the USA, may escalate to world war. In Europe, the level of confrontation and military build-up has escalated to a very dangerous level, especially with the reinforcement of the links between NATO and EU. The peoples of Europe are held in a grip between the imperialist bloc of NATO and imperialist Russia.

Missile and troops from NATO are now deployed on the Russian borders in Poland and the Baltic countries, highly increasing the tension and risk of war. NATO generals have stated that even a nuclear attack on Russia is “an option”.

The ICMLPO appeals to the people to oppose the warmongering policy, to put forward the slogan “Out of NATO”, with the perspective of the dissolution of NATO, to oppose the activity and expansion of this aggressive alliance. It is the high time to unmask the illusion that NATO has something to do with the defence of sovereign States. It is not a pact for peace, but a pact with the devil. NATO is in fact the greatest threat to the sovereignty of the peoples in Europe.

The workers, the youth and the peoples of Europe must raise their voice against the militarization of States and economies. We denounce the dictate of the aggressors and of the military-industrial monopolies. We reject to fight our brother and sisters on the other side of the borders. We warn our governments that if they choose the path of war, we will consider them, and not our brother and sister across the borders, as our enemy.

The upcoming NATO summit in Bruxelles will inaugurate their new headquarter. This is in itself a provocation towards the peoples of Europe, and will be met with anti-war manifestation.

We say:

  • No to NATO and all imperialist aggressors!
  • End to arms race, cut military spending, use the money for the needs of the people!
  • Withdrawal of all the troops sent abroad!
  • No to militarisation of the States!
  • The youth doesn’t want to be cannon fodder!
  • International solidarity – our enemies are not other workers and peoples but the warmongering governments in our own countries!

October, 2016

International Conference of Marxist-Leninist Parties and Organisations

Mao Apologised to Yugoslavian Delegates, told Stalin Blocked our Revolution

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It has always been our understanding on Mao, that he was a revisionist and an Anti-Marxist Leninist. With new documents and papers coming out of various Archives, our view has been solidified in light of such information. Mao, had always adopted a vacillating position when it came to matter of international import that concerned the International Communist Movement. At one hand he went to China and asked Stalin of every possible help, including to get his works reviewed by Soviet experts to asking for help on industrialisation.

On numerous occasion he did not fail to eulogies Stalin and writing to him that Soviet Party being the headquarters and Stalin the captain, and immediately after the 20th CPSU Party Congress like Khrushchev turned all guns again same Stalin whom he had called in 1939 as “…Stalin is the leader of the world revolution. This is of paramount importance. It is a great event that mankind is blessed with Stalin. Since we have him, things can go well. As you all know, Marx is dead and so are Engels and Lenin. Had there been no Stalin, who would there be to give directions?

The below document titled “MINUTES, MAO’S CONVERSATION WITH A YUGOSLAVIAN COMMUNIST UNION DELEGATION, BEIJING” further exposes the sheer un-Marxist attitude of Mao when he shamelessly puts blame on Stalin even stating that Stalin blocked our revolution.

But, it was not the end in 1958 Mao again did a U turn and in October 25, 1966 said “The revisionist leading clique of the Soviet Union, the Tito clique of Yugoslavia, and all the other cliques of renegades and scabs of various shades are mere dust heaps in comparison, while you, a lofty mountain, tower to the skies.”

We leave it to the discretion of our dear comrades who still harbour respect and faith in Mao, and to what is said as Mao-Tse-Tung thought or Maoism.

[All emphasis and underline are ours.]

Other Aspect

“MINUTES, MAO’S CONVERSATION WITH A YUGOSLAVIAN COMMUNIST UNION DELEGATION, BEIJING

We welcome you to China.  We are very pleased at your visit.  We have been supported by you, as well as by other brotherly [Communist] parties.  We are invariably supporting you as much as all the other brotherly parties.  In today’s world, the Marxist and Communist front remains united, whether in places where success [of Communist revolution] is achieved or not yet achieved.  However, there were times when we were not so united; there were times when we let you down.  We listened to the opinions of the Information Bureau [2] in the past.  Although we did not take part in the Bureau’s [business], we found it difficult not to support it.  In 1949 the Bureau condemned you as butchers and Hitler-style fascists, and we kept silent on the resolution [condemning you], although we published articles to criticize you in 1948.  In retrospect, we should not have done that; we should have discussed [this issue] with you: if some of your viewpoints were incorrect, [we should have let] you conduct self-criticism, and there was no need to hurry [into the controversy] as [we] did.  The same thing is true to us: should you disagree with us, you should do the same thing, that is, the adoption of a method of persuasion and consultation.  There have not been that many successful cases in which one criticizes foreign parties in newspapers.  [Your] case offers a profound historical lesson for the international communist movement.  Although you have suffered from it, the international communist movement has learned a lesson from this mistake.  [The international communist movement] must fully understand [the seriousness of] this mistake.

When you offered to recognize new China, we did not respond, nor did we decline it.  Undoubtedly, we should not have rejected it, because there was no reason for us to do so.  When Britain recognized us, we did not say no to it.  How could we find any excuse to reject the recognition of a socialist country?

There was, however, another factor which prevented us from responding to you: the Soviet friends did not want us to form diplomatic relations with you.  If so, was China an independent state?  Of course, yes.  If an independent state, why, then, did we follow their instructions?  [My] comrades, when the Soviet Union requested us to follow their suit at that time, it was difficult for us to oppose it.  It was because at that time some people claimed that there were two Titos in the world: one in Yugoslavia, the other in China, even if no one passed a resolution that Mao Zedong was Tito.  I have once pointed out to the Soviet comrades that [they] suspected that I was a half-hearted Tito, but they refuse to recognize it.  When did they remove the tag of half-hearted Tito from my head?  The tag was removed after [China] decided to resist America [in Korea] and came to [North] Korea’s aid and when [we] dealt the US imperialists a blow.

The Wang Ming line[3] was in fact Stalin’s line.  It ended up destroying ninety percent of our strength in our bases, and one hundred percent of [our strength] in the white areas.[4] Comrade [Liu] Shaoqi[5] pointed this out in his report to the Eighth [Party] Congress.[6]  Why, then, did he not openly attribute [the losses] to the [impact of] Stalin’s line?  There is an explanation.  The Soviet Party itself could criticize Stalin; but it would be inappropriate for us to criticize him.  We should maintain a good relationship with the Soviet Union.  Maybe [we] could make our criticism public sometime in the future.  It has to be that way in today’s world, because facts are facts.  The Comintern made numerous mistakes in the past.  Its early and late stages were not so bad, but its middle stage was not so good: it was all right when Lenin was alive and when [Georgii] Dimitrov was in charge.[7]  The first Wang Ming line dominated [our party] for four years, and the Chinese revolution suffered the biggest losses.[8]Wang Ming is now in Moscow taking a sick leave, but still we are going to elect him to be a member of the party’s Central Committee.  He indeed is an instructor for our party; he is a professor, an invaluable one who could not be purchased by money.  He has taught the whole party, so that it would not follow his line.

That was the first time when we got the worst of Stalin.

The second time was during the anti-Japanese war.  Speaking Russian and good at flattering Stalin, Wang Ming could directly communicate with Stalin.  Sent back to China by Stalin, he tried to set [us] toward right deviation this time, instead of following the leftist line he had previously advocated.  Advocating [CCP] collaboration with the Guomindang [the Nationalist Party or GMD], he can be described as “decking himself out and self-inviting [to the GMD];” he wanted [us] to obey the GMD whole-heartedly.  The Six-Principle Program he put forward was to overturn our Party’s Ten-Principle Policy.  [His program] opposed establishing anti-Japanese bases, advocated giving up our Party’s own armed force, and preached that as long as Jiang Jieshi [Chiang Kai-shek] was in power, there would be peace [in China].  We redressed this deviation.  [Ironically,] Jiang Jieshi helped us correct this mistake: while Wang Ming “decked himself out and fawned on [Jiang],” Jiang Jieshi “slapped his face and kicked him out.”  Hence, Jiang Jieshi was China’s best instructor: he had educated the people of the whole nation as well as all of our Party members.  Jiang lectured with his machine guns whereas Wang Ming educated us with his own words.

The third time was after Japan’s surrender and the end of the Second World War.  Stalin met with [Winston] Churchill and [Franklin D.] Roosevelt and decided to give the whole of China to America and Jiang Jieshi.  In terms of material and moral support, especially moral support, Stalin hardly gave any to us, the Communist Party, but supported Jiang Jieshi.  This decision was made at the Yalta conference.  Stalin later told Tito [this decision] who mentioned his conversation [with Stalin on this decision] in his autobiography.

Only after the dissolution of the Comintern did we start to enjoy more freedom.  We had already begun to criticize opportunism and the Wang Ming line, and unfolded the rectification movement.  The rectification, in fact, was aimed at denouncing the mistakes that Stalin and the Comintern had committed in directing the Chinese revolution; however, we did not openly mention a word about Stalin and the Comintern.  Sometime in the near future, [we] may openly do so.  There are two explanations of why we did not openly criticize [Stalin and the Comintern]: first, as we followed their instructions, we have to take some responsibility ourselves.  Nobody compelled us to follow their instructions!  Nobody forced us to be wrongfully deviated to right and left directions!  There are two kinds of Chinese: one kind is a dogmatist who completely accepts Stalin’s line; the other opposes dogmatism, thus refusing to obey [Stalin’s] instructions.  Second, we do not want to displease [the Soviets], to disrupt our relations with the Soviet Union.  The Comintern has never made self-criticism on these mistakes; nor has the Soviet Union ever mentioned these mistakes.  We would have fallen out with them had we raised our criticism.

The fourth time was when [Moscow] regarded me as a half-hearted Tito or semi-Titoist.  Not only in the Soviet Union but also in other socialist countries and some non-socialist countries were there some people who had suspected whether China’s was a real revolution.

You might wonder why [we] still pay a tribute to Stalin in China by hanging his portrait on the wall.  Comrades from Moscow have informed us that they no longer hang Stalin’s portraits and only display Lenin’s and current leaders’ portraits in public parade.  They, however, did not ask us to follow their suit.  We find it very difficult to cope.  The four mistakes committed by Stalin are yet to be made known to the Chinese people as well as to our whole party.  Our situation is quite different from yours: your [suffering inflicted by Stalin] is known to the people and to the whole world.  Within our party, the mistakes of the two Wang Ming lines are well known; but our people do not know that these mistakes originated in Stalin.  Only our Central Committee was aware that Stalin blocked our revolution and regarded me as a half-hearted Tito.

We had no objection that the Soviet Union functions as a center [of the world revolution] because it benefits the socialist movement.  You may disagree [with us] on this point.  You wholeheartedly support Khrushchev’s campaign to criticize Stalin, but we cannot do the same because our people would dislike it.  In the previous parades [in China], we held up portraits of Marx, Engels, Lenin and Stalin, as well as those of a few Chinese [leaders]—Mao, Liu [Shaoqi], Zhou [Enlai], and Zhu [De][9] —and other brotherly parties’ leaders.  Now we adopt a measure of “overthrowing all”: no one’s portrait is handed out.  For this year’s “First of May” celebration, Ambassador Bobkoveshi[10] already saw in Beijing that no one’s portrait was held in parade.  However, the portraits of five dead persons—Marx, Engles, Lenin and Stalin and Sun [Yat-sen]—and a not yet dead person—Mao Zedong—are still hanging [on the wall].  Let them hang on the wall!  You Yugoslavians may comment that the Soviet Union no longer hangs Stalin’s portrait, but the Chinese still do.

As of this date some people remain suspicious of whether our socialism can be successfully constructed and stick to the assertion that our Communist Party is a phony one.  What can we do?  These people eat and sleep every day and then propagate that the Chinese Communist Party is not really a communist party, and that China’s socialist construction is bound to fail.  To them, it would be a bewildering thing if socialism could be built in China!  Look out, [they warn].  China might become an imperialist country—to follow America, Britain, and France to become the fourth imperialist country!  At present China has little industry, thus is in no position [to be an imperialist country]; but [China] will become formidable in one hundred years!  Chinggis Khan[11] might be brought to life; consequently Europe would suffer again, and Yugoslavia might be conquered!  The “Yellow Peril” must be prevented!

There is absolutely no ground for this to happen!  The CCP is a Marxist-Leninist Party.  The Chinese people are peace-loving people.  We believe that aggression is a crime, therefore, we will never seize an inch of territory or a piece of grass from others.  We love peace and we are Marxists.

We oppose great power politics in international relations.  Although our industry is small, all things considered, we can be regarded as a big power.  Hence some people [in China] begin to be cocky.  We then warn them: “Lower your heads and act with your tails tucked between your legs.”  When I was little, my mother often taught me to behave “with tails tucked between legs.”  This is a correct teaching and now I often mention it to my comrades.

Domestically, we oppose Pan-Hanism,[12] because this tendency is harmful to the unity of all ethnic groups.  Hegemonism and Pan-Hanism both are sectarianism.  Those who have hegemonious tendencies only care about their own interests but ignore others’, whereas those Pan-Hanists only care about the Han people and regard the Han people as superior to others, thus damaging [the interests of] all the minorities.

Some people have asserted in the past that China has no intention to be friends with other countries, but wants to split with the Soviet Union, thus becoming a troublemaker.  Now, however, this kind of people shrinks to only a handful in the socialist countries; their number has been reduced since the War to Resist America and Assist Korea.[13]  It is, however, a totally different thing for the imperialists:  the stronger China becomes, the more scared they will be.  They also understand that China is not that terrifying as long as China has no advanced industry, and as long as China continues to rely on human power.  The Soviet Union remains the most fearsome [for the imperialists] whereas China is merely the second.  What they are afraid of is our politics and that we may have an enormous impact in Asia.  That is why they keep spreading the words that China will be out of control and will invade others, so on and so forth.

We have been very cautious and modest, trying to overcome arrogance but adhering to the “Five Principles.”[14] We know we have been bullied in the past; we understand how it feels to be bullied.  You would have had the same feeling, wouldn’t you?

China’s future hinges upon socialism.  It will take fifty or even one hundred years to turn China into a wealthy and powerful country.  Now no [formidable] blocking force stands in China’s way.  China is a huge country with a population of one fourth of that of the world.  Nevertheless, her contribution to the world is yet to be compatible with her population size, and this situation will have to change, although my generation and even my son’s generation may not see the change taking place.  How it will change in the future depends on how [China] develops.  China may make mistakes or become corrupt; the current good situation may take a bad turn and, then, the bad situation may take a good turn.  There can be little doubt, though, that even if [China’s] situation takes a bad turn, it may not become as decadent a society as that of Jiang Jieshi’s.  This anticipation is based on dialectics.  Affirmation, negation, and, then, negation of negation.  The path in the future is bound to be tortuous.

Corruption, bureaucracy, hegemonism, and arrogance all may take effect in China.  However, the Chinese people are inclined to be modest and willing to learn from others.  One explanation is that we have little “capital” at our disposal: first, we did not invent Marxism which we learned from others; second, we did not experience the October Revolution and our revolution did not achieve victory until 1949, some thirty-two years after the October Revolution; third, we were only a branch army, not a main force, during the Second World War; fourth, with little modern industry, we merely have agriculture and some shabby, tattered handicrafts.  Although there are some people among us who appear to be cocky, they are in no position to be cocky; at most, [they can merely show] their tails one or two meters high.  But we must prevent this from happening in the future: it may become dangerous [for us] in ten to twenty years and even more dangerous in forty to fifty years.

My comrades, let me advise you that you should also watch out for this potential.  Your industry is much modernized and has experienced a more rapid growth; Stalin made you suffer and hence, justice is on your side.  All of this, though, may become your [mental] burden.

The above-mentioned four mistakes Stalin committed [concerning China] may also become our burden.  When China becomes industrialized in later years, it will be more likely that we get cocky.  Upon your return to your country, please tell your youngsters that, should China stick her tail up in the future, even if the tail becomes ten thousand meters high, still they must criticize China.  [You] must keep an eye on China, and the entire world must keep an eye on China.  At that time, I definitely will not be here: I will already be attending a conference together with Marx.

We are sorry that we hurt you before, thus owing you a good deal.  Killing must be compensated by life and debts must be paid in cash.  We have criticized you before, but why do we still keep quiet?  Before [Khrushchev’s] criticism of Stalin, we were not in a position to be as explicit about some issues as we are now.  In my previous conversations with [Ambassador] Bobkoveshi, I could only say that as long as the Soviet Union did not criticize Stalin, we would be in no position to do so; as long as the Soviet Union did not restore [diplomatic] relations with Yugoslavia, we could not establish relations with you.[15]  Now these issues can be openly discussed.  I have already talked to the Soviet comrades about the four mistakes that Stalin had committed [to China]; I talked to [Soviet Ambassador Pavel] Yudin[16] about it, and I shall talk to Khrushchev about it next time when we meet.  I talk to you about it because you are our comrades.  However, we still cannot publish this in the newspapers, because the imperialists should not be allowed to know about it.  We may openly talk about one or two mistakes of Stalin’s in the future.  Our situation is quite different from yours:  Tito’s autobiography mentions Stalin because you have already broken up with the Soviet Union.

Stalin advocated dialectical materialism, but sometimes he lacked materialism and, instead, practiced metaphysics; he wrote about historical materialism, but very often suffered from historical idealism.  Some of his behavior, such as going to extremes, fostering personal myth, and embarrassing others, are by no means [forms] of materialism.

Before I met with Stalin, I did not have much good feeling about him.  I disliked reading his works, and I have read only “On the Basis of Leninism,” a long article criticizing Trotsky, and “Be Carried Away by Success,” etc.  I disliked even more his articles on the Chinese revolution.  He was very different from Lenin: Lenin shared his heart with others and treated others as equals whereas Stalin liked to stand above every one else and order others around.  This style can be detected from his works.  After I met with him, I became even more disgusted:  I quarreled a lot with him in Moscow.  Stalin was excitable by temperament.  When he became agitated, he would spell out nasty things.

I have written altogether three pieces praising Stalin.  The first was written in Yanan to celebrate his sixtieth birthday [21 December 1939—ed.], the second was the congratulatory speech [I delivered] in Moscow [in December 1949—ed.], and the third was an article requested by Pravda after his death [March 1953—ed.].  I always dislike congratulating others as well as being congratulated by others.  When I was in Moscow to celebrate his birthday, what else could I have done if I had chosen not to congratulate him?  Could I have cursed him instead?  After his death the Soviet Union needed our support and we also wanted to support the Soviet Union.  Consequently, I wrote that piece to praise his virtues and achievements.  That piece was not for Stalin; it was for the Soviet Communist Party.  As for the piece I did in Yanan, I had to ignore my personal feelings and treat him as the leader of a socialist country.  Therefore, that piece was rather vigorous whereas the other two came out of [political] need, not my heart, nor at my will.  Human life is just as contradictory as this: your emotion tells you not to write these pieces, but your rationality compels you to do so.

Now that Moscow has criticized Stalin, we are free to talk about these issues.  Today I tell you about the four mistakes committed by Stalin, but, in order to maintain relations with the Soviet Union, [we] cannot publish them in our newspapers.  Since Khrushchev’s report only mentioned the conflict over the sugar plant while discussing Stalin’s mistakes concerning us, we feel it inappropriate to make them public.  There are other issues involving conflicts and controversies.

Generally speaking, the Soviet Union is good.  It is good because of four factors: Marxism-Leninism, the October Revolution, the main force [of the socialist camp], and industrialization.  They have their negative side, and have made some mistakes.  However, their achievements constitute the major part [of their past] while their shortcomings are of secondary significance.  Now that the enemy is taking advantage of the criticism of Stalin to take the offensive on a world-wide scale, we ought to support the Soviet Union.  They will certainly correct their mistakes.  Khrushchev already corrected the mistake concerning Yugoslavia.  They are already aware of Wang Ming’s mistakes, although in the past they were unhappy with our criticism of Wang Ming.  They have also removed the “half-hearted Tito” [label from me], thus, eliminating altogether [the labels on] one and a half Titos.  We are pleased to see that Tito’s tag was removed.

Some of our people are still unhappy with the criticism of Stalin.  However, such criticism has positive effects because it destroys mythologies, and opens [black] boxes.  This entails liberation, indeed, a “war of liberation.”  With it, people are becoming so courageous that they will speak their minds, as well as be able to think about issues.

Liberty, equality, and fraternity are slogans of the bourgeoisie, but now we have to fight for them.  Is [our relationship with Moscow] a father-and-son relationship or one between brothers?  It was between father and son in the past; now it more or less resembles a brotherly relationship, but the shadow of the father-and-son relationship is not completely removed.  This is understandable, because changes can never be completed in one day.  With certain openness, people are now able to think freely and independently.  Now there is, in a sense, the atmosphere of anti-feudalism: a father-and-son relationship is giving way to a brotherly relationship, and a patriarchal system is being toppled.  During [Stalin’s] time people’s minds were so tightly controlled that even the feudalist control had been surpassed.  While some enlightened feudal lords or emperors would accept criticism, [Stalin] would tolerate none.  Yugoslavia might also have such a ruler [in your history] who might take it well even when people cursed him right in his face.  The capitalist society has taken a step ahead of the feudalist society.  The Republican and Democratic Parties in the United States are allowed to quarrel with each other.

We socialist countries must find [better] solutions.  Certainly, we need concentration and unification; otherwise, uniformity cannot be maintained.  The uniformity of people’s minds is in our favor, enabling us to achieve industrialization in a short period and to deal with the imperialists.  It, however, embodies some shortcomings, that is, people are made afraid of speaking out.  Therefore, we must find some ways to encourage people to speak out.  Our Politburo’s comrades have recently been considering these issues.

Few people in China have ever openly criticized me.  The [Chinese] people are tolerant of my shortcomings and mistakes.  It is because we always want to serve the people and do good things for the people.  Although we sometimes also suffer from bossism and bureaucracy, the people believe that we have done more good things than bad ones and, as a result, they praise us more than criticize us.  Consequently, an idol is created: when some people criticize me, others would oppose them and accuse them of disrespecting the leader.  Everyday I and other comrades of the central leadership receive some three hundred letters, some of which are critical of us.  These letters, however, are either not signed or signed with a false name.  The authors are not afraid that we would suppress them, but they are afraid that others around them would make them suffer.

You mentioned “On Ten Relationships.”[17] This resulted from one-and-a-half-months of discussions between me and thirty-four ministers [of the government].  What opinions could I myself have put forward without them?  All I did was to put together their suggestions, and I did not create anything.  Any creation requires materials and factories.  However, I am no longer a good factory.  All my equipment is out-of-date, I need to be improved and re-equipped as much as do the factories in Britain.  I am getting old and can no longer play the major role but had to assume a minor part.  As you can see, I merely played a minor role during this Party’s National Congress whereas Liu Shaoqi, Zhou Enlai, Deng Xiaoping[18] and others assumed the primary functions.

[1] The content of this conversation suggests that it occurred between 15 and 28 September 1956, when the CCP’s Eighth National Congress was in session.

[2] This refers to the Information Bureau of Communist and Workers’ Parties (Cominform), which was established in September 1947 by the parties of the Soviet Union, Bulgaria, Romania, Hungary, Poland, France, Czechoslovakia, Italy, and Yugoslavia. The Bureau announced that it was ending its activities in April 1956.

[3] Wang Ming (1904-1974), also known as Chen Shaoyu, was a returnee from the Soviet Union and a leading member of the Chinese Communist Party in the 1930s. Official Chinese Communist view claims that Wang Ming committed “ultra-leftist” mistakes in the early 1930s and “ultra-rightist” mistakes in the late 1930s.

[4] The white areas were Guomindang-controlled areas.

[5] Liu Shaoqi was vice chairman of the CCP Central Committee and chairman of the Standing Committee of the People’s National Congress. He was China’s second most important leader.

[6] The Chinese Communist party’s eighth national congress was held in Beijing on 15-27 September 1956.

[7] Georgii Dimitrov (1882-1949), a Bulgarian communist, was the Comintern’s secretary general from 1935 to 1943.

[8] Mao here pointed to the period from 1931 to 1935, during which the “international section,” of which Wang Ming was a leading member, controlled the central leadership of the Chinese Communist Party.

[9] Zhu De was then vice chairman of the CCP Central Committee and vice chairman of the PRC.

[10] Bobkoveshi was Yugoslavia’s first ambassador to the PRC, with whom Mao Zedong met for the first time on 30 June 1955.

[11] Chinggis Khan, also spelled Genghis Jenghiz, was born about 1167, when the Mongolian-speaking tribes still lacked a common name.  He became their great organizer and unifier. Before his death in 1227, Chinggis established the basis for a far-flung Eurasian empire by conquering its inner zone across Central Asia. The Mongols are remembered for their wanton aggressiveness both in Europe and in Asia, and this trait was certainly present in Chinggis.

[12] The Han nationality is the majority nationality in China, which counts for over 95 percent of the Chinese population.

[13] The “War to Resist America and Assist Korea” describes China’s participation in the Korean War from October 1950 to July 1953.

[14] The five principles were first introduced by Zhou Enlai while meeting a delegation from India on 31 December 1953. These principles—(1) mutual respect for territorial integrity and sovereignty, (2) mutual non-aggression, (3) mutual non-interference in international affairs, (4) equality and mutual benefit, and (5) peaceful coexistence—were later repeatedly claimed by the Chinese government as the foundation of the PRC’s foreign policy.

[15] China did not establish diplomatic relations with Yugoslavia until January 1955, although the Yugoslavian government recognized the PRC as early as 5 October 1949, four days after the PRC’s establishment.

[16] P. F. Yudin (1899-1968), a prominent philosopher and a member of the Central Committee of the Soviet Communist Party from 1952 to 1961, was Soviet ambassador to China from 1953 to 1959.

[17] “On Ten Relationships” was one of Mao’s major works in the 1950s. He discussed the relationship between industry and agriculture and heavy industry and light industry, between coastal industry and industry in the interior, between economic construction and national defense, between the state, the unit of production, and individual producers, between the center and the regions, between the Han nationality and the minority nationalities, between party and non-party, between revolutionary and counter-revolutionary, between right and wrong, and between China and other countries. For an English translation of one version of the article, see Stuart Schram, ed., Chairman Mao Talks to the People (New York: Pantheon Books, 1974), 61-83.

[18] Liu Shaoqi, Zhou Enlai and Deng Xiaoping were all leading members of the Chinese Communist Party. At the Party’s Eighth Congress in September 1956, Liu and Zhou were elected the Party’s vice chairmen, and Deng the Party’s general secretary.

SOURCE:

Mao Zedong waijiao wenxuan [Selected Diplomatic Papers of Mao Zedong] (Beijing: The Central Press of Historical Documents, 1993), 251-262. Translated and Annotated by Zhang Shu Guang and Chen Jian

This document taken from

http://digitalarchive.wilsoncenter.org/document/117035#_ftn0

Bill Bland on Sectarianism

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1) Bland on the refusal of the early British anti-revisionists to allow people who were on the point of breaking away from the CPGB to do so, and belong to the anti-revisionist movement:

“WB: They wouldn’t allow it. They were sectarian in a way in that it had to be all or nothing and so they only lasted for a brief period. McCreary died, he was ill, and his money was always important, his father was quite wealthy, and it was his money that had supported the organisation, its paper and the whole thing fell to pieces after McCreary died. The next thing that came up was Mike Baker’s organisation, the MLOB. Baker was the next one to approach me and my position was the same, and he made the point that he agreed with me that it shouldn’t be necessary at the moment for everybody to withdraw from the CPGB. If they were able to do any work within it of any sort, fair enough since there were still people there who were confused and honest, therefore potential recruits, so he agreed with me and we formed the MLOB on that basis. At this time, we hadn’t analysed Mao Tse Tung thought at all when the MLOB was formed, and it was taken for granted by everybody that Mao Tse Tung was the leading Marxist-Leninist in the world.”

MEMORANDUM To Cmdes VS & JM (India) From the Newly Formed Communist League – Following the Expulsion of Mike Baker & the split in the then Marxist-Leninist Organisation Britain.

Date Sent: circa Autumn months 1976 (First published by Alliance & Communist League in 2002 on web)

2) On the various sectarian views that prevented the work of the Albania Society in the UK:

“WB: That’s right. We founded this society which gradually prospered over the years and grew to several hundred members, published a journal, ‘Albanian Life’ regularly, and I think did some useful work in that way. Then as soon as the MLOB changed its line, all the Maoists in the Society who had previously been active and supportive began to demand that Bland go on the grounds that my organisation, to which I belonged, had published a report which was anti-Mao Tse Tung and therefore anti-Albanian, and therefore I shouldn’t any longer be allowed to be secretary of the Albanian Society. Instead they organised a faction within the society to get rid of Bland, and at the next AGM they organised a miniature cultural revolution in the society. The chairman at that time was a Maoist called Berger, she wrote articles on wine, her husband was a leading member of the friendship society with China. They organised this sort of cultural revolution at the AGM whereby a lot of people who had never been members of the society before appeared and demanded the right to vote, and Berger as chairman ruled that they had the right to vote because we were a democratic society and therefore anyone who walked in off the street to vote should be allowed to vote. This was the masses speaking you see. Unfortunately they hadn’t got quite enough people to outvote the other members, and our members didn’t agree with this particular line that it was reasonable grounds for sacking me, and so they lost the vote and I got re-elected as secretary and the Maoists walked out. They then formed another New Albanian Society which rapidly split into four or five other groups all of which rapidly disappeared, except the one that was financed by the Chinese, namely the one around Reg Birch. They called themselves the New Albania Society and functioned for several years with full support from China.

JP: Did they have any official standing as far as the Albanians were concerned?

WB: The Albanians recognised them immediately as the Marxist-Leninist Party in Britain. There were two organisations – there was the Communist Party of Britain run by Reg Birch, and there was the broader New Albania Society, both of these were officially supported by the Albanian Party of Labour. At that time they broke of relations completely with us. We had a meeting and decided what we should do: Albania is a socialist country, we accept that, we don’t agree with their line on this particular point, but none the less we stand for solidarity and support for the Albanian Party of Labour and the Albanian regime, therefore we would continue to support Albania, whatever their attitude to us might be. We carried on exactly as we had done, sending our literature to them regularly over the next six or seven years, until 1978, the Albanian Party changed its line and came out attacking Mao Tse Tung as being revisionist, his line as being revisionist.

Immediately Birch broke off relations with Albania, dissolved the New Albania Society without even consulting its membership. There were just notices in the post saying ‘as from today the society is dissolved’, full stop. At that time the one person who still had contacts with the Albanians was the expert on folk music, the president of our society Bert Lloyd. Bert Loyd made regular trips to Albania to record folk music, not as president of the Albania Society but in a personal capacity. We asked him if he would point out to the Albanians on his next visit that it was rather ridiculous to have no Albania friendship society because there was no one except for ourselves, with whom they would not speak. And so we said diplomatically that he might raise this with them and point out that it didn’t seem sensible to us that the situation should continue in the new circumstances. So he did raise it with them, and I was invited to Paris first of all to speak to the ambassador there, who seemed very suspicious of the whole situation. I couldn’t see any reason why, the whole thing seemed perfectly straight forwards, never the less he was suspicious, and he said he would make our points to Tirana and write to me in due course. Eventually the reply came back ‘yes, we would like a delegation from the Society to go to Albania’. There was no mention of what had happened over the previous ten years, no self criticism at all, but never the less they resumed good friendly relations with the society which was the main thing. The question of self-criticism was a matter for the Albanians and not for us really. We agreed in principle all the way through. And so that was the situation through to the counter-revolution.

Mind you, I am convinced now that there was a very strong revisionist faction in the leading positions of the party long before Hoxha’s death, and the whole thing came to a head only after that period, but it was a continuation of policies followed previously. For example, when we sent a delegation just after Hoxha’s death I think it was, I went with Steve Day, we were the two delegates elected to go, and they asked us what we would like to see and do, and so we gave them a short list of things we would like to do. One of them was to take a film of the area around the Corfu Channel to make a film about the Corfu channel incident, and also some research that I wanted to do from the Albanian library. Now we were a little taken aback by the fact that first of all they were unable to find an interpreter for us, they had no one there who could speak English, we were not allowed to take any photographs of the Corfu channel, and everything we asked to do including my visit to the Albanian National Library was for some reason not possible. They sent us round the country, it was enjoyable but it was purely a holiday, there was nothing we were able to do of any political value whatsoever. The whole 10 out of the 13 days we were there we were just driving around the country in a private car. I pointed this out to Steve and said ‘these people are bloody revisionists!’ you know, I’d met the same people before in the CPGB and they behaved in exactly the same way as people in the CPGB had behaved. I’m convinced now that these were symptoms of degeneration that had already set in, that revisionism had already won many of the leading positions within the party, but it was not coming out openly.”

IN MEMORIAM: William B. Bland 1916-2001 Interview Performed by JP with Bill Bland, 10th July 1994, Great Northern Hotel, Euston

3) How do progressives and “Marxist-Leninists” – of other than pro-Hoxha stripes – change their views? By weight of evidence, says Bland.

“WB: You see, first of all there is a great reluctance many people tend to be conformists, you like to be able to agree with your contemporaries, your associates, therefore I think that is a barrier to objective research, to objective findings, because then if your individual view is unpopular you become unpopular and therefore you tend to say what other people want you to say. I do think that this is something that has to be avoided. For example, the CL’s line on Dimitrov is unpopular because it is something new. It is not something that is anti-Marxist-Leninist, it is something which is either true or untrue depending on the facts. Now if your facts draw you to a particular conclusion I think it is essential for an organisation or party to come out with a correct point of view, under no circumstances should they say ‘well we can’t say that, its unpopular, therefore we will say nothing about it’; I think it is absolutely unpardonable for an M-L organisation. If one is correct, then sooner or later the passage of time will confirm the correctness, but if you are incorrect then it wont, and of course you must immediately rectify your incorrect fine. But not to put a line forward that you think is correct merely to be popular, I think is contrary to all the principles of Marxism. I think we’ve never done that.

I remember when we put forward our first research report on China, at that time most people who regarded themselves as M-Ls were running around waving the little red book, and they felt that this was something like running into a Catholic church and overturning the altar, they felt exactly the same way, and they responded in exactly the same way, yet gradually, over the years, more and more M-Ls have come out accepting the views we put forward in 1960. I think that under no circumstances should we ever…. of course we have to be sure that we are right, we go over and over the facts again, but once we are convinced that there is no other explanation, for example accepting that Dimitrov was a leading revisionist, then we should say so. I think not to say so merely to be popular is unpardonable. All new views are unpopular at first, it is merely a reflection of their newness. People tend to be conservative, they don’t like changing their point of view if they can avoid it, they have to be forced to do so by the weight of evidence, by the weight of incontrovertible facts, and this is the way I think the CL ought to work, small as it is. It is the only way that any organisation large or small should work.

4) Some examples of broad Front work that Bill Bland led the CL into with non-Hoxhaites:

(i) The MLRB:

JP: What about the Marxist-Leninist Research Bureau, that has a similar role in investigating important topics?

WB: The weakness there is that so far we have not felt able to investigate controversial topics. The New Communist Party was holding a meeting on Yugoslavia, and they had got together all the people who are supportive of the view of the Yugoslav government to present their case. Now our case is not popular among people among people who regard themselves as M-L. Never the less I feel we should put it forward, not in a destructive way, to call people traitors and fools but merely to present the facts as we see them, and invite them to seek another explanation for these facts. People are very reluctant to discuss things on the basis of facts. People like Harpal Brar, a very high political level, a loyal supporter of Stalin, there is no doubt he is very sincere in his support of Stalin and Marxism-Leninism, never the less, if you say ‘right, lets discuss Mao’ he will not discuss Mao, he will merely say ‘I don’t want to discuss it, I don’t agree with you, that’s all there is to say’. If you don’t agree, why not? Maybe you are right, tell me why you don’t want to agree? Somehow, he doesn’t want to do that.

So what it is here, in my opinion is this: rather than basing one’s views on fact, he’s basing his view on preconceived prejudices which Brar is unwilling to change or challenge. It’s like the attitude of the Catholic church in the middle ages, you didn’t discuss whether God existed or not, you just had to accept it because even discussing it was equivalent to treason, to heresy, and it seems to me that these people do have that view. They are unwilling to discuss it. Take a member of the NCP again, they cancelled a meeting which they forgot to tell me about and there was only a chap there who was editor of the paper. He wanted to discuss Mao Tse Tung thought, and I said read this stuff I’ll leave it with you, it may be wrong and if so, if you point out where we are wrong, we’ll correct it. ‘Yes I’ll do that’, you see, and that was a year ago. I left the stuff with him and asked him to fix a date for a further discussion, but no, he won’t do that. This means that he is only prepared to blindly follow the line of his party, and this isn’t going to do his party any good. If the line is wrong, then his party is not being served by his support for it. If the fine is incorrect then his job as a party member is to bring his objections forward and have them discussed at the highest level, and this they are unwilling to do, whether its Brar or the NCP.”

4) Some examples of broad Front work that Bill Bland led the CL into with non-Hoxhaites:

(ii) The Stalin Society

“WB: Well today we are in a situation where everyone who calls themself an M-L is in favour of building a new Marxist Leninist party. The Majids say that; Ivor Kenna says that, they all say it, but when you come down to it, it is necessary to draw a dividing line between the most blatant revisionist trend, which is Maoism, and Marxism-Leninism. You cannot build a party which contains both revisionists and Marxist-Leninists, it will fall to pieces at the first blow. Therefore our line in the Stalin society to try and utilise this for the purpose of support of Stalin, as we are all agreed, but also for discussing in a friendly way, the points on which we differ, so that on the basis of fact the members can be aware of the two opposed points of view and make their own decisions, and this seems to me to be to be an absolutely inevitable consequence of building a party which is taken seriously. And the same thing applies to a society that has a Marxist-Leninist paper, that we find out what we can agree on and that is the integral policy of the paper. Other questions on which we disagree we leave open for the time being and publish articles on both points of view, not in a hostile way but in a friendly way based on facts, and in that way, all those who call themselves M-Ls we say here, presented objectively, are the particular points of view why one policy is wrong, and the other answer is right, is Marxist-Leninist. I think that this is an essential way forward in building a party in the present circumstances.”

4) Some examples of broad Front work that Bill Bland led the CL into with non-Hoxhaites:

(iii) ISML:

JP: The international journal which is being suggested I think we have already discussed and we felt that this could play a useful role and should be open to Maoists to contribute to, and put down their views, and essentially, should be forced to express themselves in writing so that everyone could see where they do stand.

WB: The fact that they have expelled all the M-Ls, with the exception of yourself, from the Stalin Society is a sign not of their strength but of their weakness. If Adolpho is really sincere in saying that it is a good thing that we be allowed to put forward this rubbish so that it can be exposed, then he would be in favour of us continuing to put our view forward, but in fact he voted for our expulsion. And this to my mind exposes his hypocrisy. We are anxious to put forward our point of view, we don’t pretend that we’re infallible, we may be wrong, if so we regret it and we will criticise ourselves. But in order that we should be shown to be wrong we have to hear the other point of view, and this is what they are unwilling to do, to participate in any sort of objective discussion of facts.

(5) Events in the Stalin Society that Led up to Bland’s Expulsion From the Stalin Society

“Brief Introduction: The Stalin Society was formed on the initiative of Bill Bland, when he circulated a note suggesting that this would be a timely step; coming upon the open embrace of capital by Gorbachev. With this, the revisionist “official” soviet parties were manifestly crumbling. His intent was an open broad front organisation – open to all who call themselves Marxist-Leninists. Given the later development of the hijacking of the society for sectarian ends, he and the CL were forced to write this critique. It is noteworthy that subsequently, in order to further enable themselves to ‘safely’ and ‘constitutionally’ expel Bill Bland for his insistence on an open and non-sectarian conduct and debate within the society, the hijackers led by the husband and wife team of the Majids – cancelled all overseas subscriptions.

It should not be thought that the contents of this exposure of the manoeuvres of the Stalin Society are of purely historic interest. The critique contained here-in, centres on two aspects that the world-wide Marxist-Leninist movement is still coming to grips with.

One is the content of Maoism;

The second is the nature and development of the revisionist blocs inside the USSR and the Comintern.

It is for these reasons that at this stage Alliance feels it – once more a timely – exposure. Alliance Marxist-Leninist (North America); June 2002.”

“COMPASS” COMMUNIST LEAGUE
January 1995, No. 116

“MORE ON THE FIFTH COLUMN IN THE STALIN SOCIETY” Compass 116 (Communist League)

(6) Upon the Various Types of Maoism – Some we can ‘work with’ – Others we cannot!

“FUNDAMENTALIST AND MODERNIST MAOISM

Most systems of religious belief are based on writings regarded as ‘sacred’, and most of these were written long ago. But as man’s knowledge of the universe increases, it is discovered that these ancient writings appear to conflict with fact. In this situation, some people realise that their religious belief was mere superstition and become atheists. Of those who retain their religious belief, some insist that the writings, being sacred, are infallibly true, so that their appearance of falsity must be a mere illusion: we call such people fundamentalists; others admit that the writings cannot be accepted as literal truth, but can be accepted as allegorical truth: we call such people modernists.

Maoism has its fundamentalists and its modernists. As history made Maoism untenable except to those whose prejudices overrode their reason, genuine materialists came to realise that Maoism was merely a brand of revisionism. Among other Maoists, Fundamentalist and Modernist trends appeared.”

“COMPASS” COMMUNIST LEAGUE January 1995, No. 116 TABLE CONTENTS:” MORE ON THE FIFTH COLUMN IN THE STALIN SOCIETY” Compass 116 (Communist League)

(7) What does broad Front Work Mean? It means that DESPITE differences on other question – agreed to ends and principles of the BROAD FRONT – are the only basis for assessing WHO can JOIN the broad front:

“THE TACTICS OF BROAD FRONT WORK

A broad front is an organisation of people who agree to campaign on the objective of the broad front, in spite of differences they may have on other questions. The Stalin Society is a broad front organisation of people who agree that Stalin was a great Marxist-Leninist and who agree to campaign in defence of Stalin in spite of differences they may have on other questions. Members of a broad front who genuinely support its aims naturally work to expand its membership and influence as widely as possible. On the other hand, fifth columnists within the broad front, who wish to sabotage its aims, generally act under the cloak of pseudo-leftism, striving to erect sectarian barriers within the front on questions other than those embodied in the aims of the broad front. Over two years ago, Kamal Majid, husband of the present Secretary of the Stalin Society, Cathie Majid — speaking at a conference in the name of the Stalin Society — said:

“The Stalin Society is open to everyone. But of course we don’t expect you to come in without criticising yourselves. . . . Trotskyists, Khrushchevites or Brezhnevites . . . have to criticise themselves first. They have to criticise their past, and then we will accept them as . . . members of the Stalin Society”.

(Kamal Majid: Statement in Name of Stalin Society at International Marxist Convention, May 1992).

This declaration, like so many of the Majids’ utterances, is devoid of any truth. At no time has it been the policy of the Stalin Society that people who wish to join the Society must undertake a criticism of their past before they can be accepted as members.

What is the effect of Majid’s false statement?

Most people who now support Stalin, or who will come to support him in the future, have in the past accepted some of the bourgeois, Trotskyist or revisionist slanders about Stalin. Neither the Stalin Society, nor the Marxist-Leninist movement, can be built only from people who have never for a moment been misled by such slanders. To claim, even though falsely, that such people must pass a ‘purification’ test in a manner acceptable to the Majidist fifth column, is to seek to place barriers between the Stalin Society and tens of thousands of honest potential members.

Yet at meeting after meeting of the Stalin Society the Chairman, the Maoist Wilf Dixon, has permitted Kamal Majid to attack the New Communist Party as ‘traitors’.

In May of this year, the General Secretary of the New Communist Party. Eric Trevett, wrote in the party’s paper:

“I accepted the critique of Stalin in the 20th Congress resolution. Now I no longer think endorsement of that resolution justifiable.”

(Eric Trevett: Stastement in ‘New Worker’, 27 May 1994).

The New Communist Party is one of the largest of organisations calling itself Marxist-Leninist, and all who genuinely support the aims of the Stalin Society cannot but welcome this statement. But at the next meeting of the Stalin Society, Kamal Majid declared that this statement made it necessary to attack the New Communist Party harder than ever!

It is clear that the Majidist attacks on the New Communist Party at meetings of the Stalin Society have no relation whatever to the aims of the Society.

The Majids are no young inexperienced novices to the revolutionary movement, and it is clear that in attacking the New Communist Party, they are indulging in conscious sabotage of the Society. The Majidists’ campaign of disruption is, naturally, fully supported by the Maoist speakers invited by the Committee to give talks at the September and November meetings of the Stalin Society.

Adolfo Olaechea said:

“There are some who, 38 years after the 20th Congress, realise that they ‘can no longer continue upholding it’. That is good but hardly sufficient. . . . Such people ought to sit in the dock while the proletariat faces them with all their failures. They must liquidate all their conduct, all their line.”

(Adolfo Olaechea: op. cit.; p. 28).

In their Open Letter on ‘The Stalin Society Dispute’, Ted Talbot and Harry Powell dismiss the case against the Majidist disruptors as, for the most part:

“trivial”;

(Ted Talbot & Harry Powell: ‘The Stalin Society Dispute’; p. 1).

and based on:

“. . . personal animosities.”

(Ted Talbot & Harry Powell: ‘The Stalin Society Dispute’; p. 1).

They accuse our member Bill Bland of:

” . . . an amazingly opportunist statement.”

(Ted Talbot & Harry Powell: ‘The Stalin Society Dispute’; p. 2).’

when he says:

“The point is not whether these statements (the attacks on the New Communist Party — Ed.) are true or false.”

(Bill Bland: ‘The Situation in the Stalin Society’ (January 1994);l p. 3).

Although Talbot and Powell cease their quotation at this point, Bill Bland goes on to say :

“The point is that, even if true, in the context of the Stalin Society, . . . these statements are divisive and disruptive. They weaken and hinder the development of the Stalin Society.”

(Bill Bland: ibid.; p. 3).

Tony Clark, in an undated Open Letter to members of the Stalin Society declares that this policy seeks:

” . . . to place certain organisations and their leaders above criticism.”

(Tony Clark: Open Letter to Members of the Stalin Society; p. 1).

and that the policy:

“is rooted in opportunism.”

(Tony Clark: Open Letter to Members of the Stalin Society; p. 2).

In fact, nothing could be further from the truth than that we wish to place any organisation or individual ‘above criticism’.

We merely maintain that it is wrong and disruptive to permit attacks on members, or potential members, at meetings of the Stalin Society on questions unrelated to the aims of the Society.

It needs no advanced level of Marxism-Leninism to understand that the same statement may be tactically correct in one set of circumstances, but wrong and counter-productive in another set of circumstances.

For example, no one was a more consistent opponent of the treachery of social-democracy than Lenin. At the beginning of 1922, the Communist International, led by Lenin, was striving to organise a conference of the three Internationals:

“. . . for the sake of achieving possible practical unity of direct action on the part of the masses”. (Vladimir I. Lenin: Letter to N. I. Bukharin and G. Y. Zinoviev (February 1922),in: ‘Collected Works’, Volume 42; Moscow; 1969; p. 394).

The fifth columnist Grigory Zinoviev, who later confessed to treason against the Soviet state and was executed, wrote a draft resolution on the proposed conference which called social-democratic leaders of the Second and Two-and-a-Half Internationals ‘accomplices of the world bourgeoisie’. While this characterisation was undoubtedly true, Lenin objected to it in the resolution concerned on tactical grounds:

“My chief amendment is aimed at deleting the passage which calls the leaders of the Second and Two-and-a-Half Internationals ‘accomplices of the world bourgeoisie’. You might as well call a man a jackass. It is absolutely unreasonable to risk wrecking an affair of tremendous practical importance for the sake of giving oneself the extra pleasure of scolding scoundrels.”

(Vladimir I. Lenin: Letter to Members of the Politbureau of the CC, RCB (b) (23 February 1922), in: ‘Collected Works’, Volume 42; Moscow; 1969;p. 400-01).

Again, Marxist-Leninists accept that, as a general principle, it is correct to expose the reactionary role of religion. But an aspiring Marxist-Leninist who intrudes into a Catholic Church during mass shouting: ‘Down with the Pope!’ is not acting in accordance with correct Marxist-Leninist tactics.

In Lenin’s words, during a strike:

” . . . atheist propaganda in such circumstances may be both unnecessary and harmful — not from the philistine fear of scaring away the backward sections. . . . but out of consideration for the real progress of the class struggle, which in the conditions of modern capitalist society will convert Christian workers to Social-Democracy (i.e., Communism — Ed.) and to atheism a hundred times better than bald atheist propaganda. To preach atheism at such a moment and in such circumstances would only be playing into the hands of the priest and the priests, who desire nothing better than that the division of the workers according to their participation in the strike movement should be replaced by their division according to their belief in God.”

(Vladimir I. Lenin: ‘The Attitude of the Workers’ Party to Religion’ (May 1909), in: ‘Collected Works’, Volume 15; Moscow; 1963; p. 40).”

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

Workers’ Communist Party (APK): Death of Comrade Frede Klitgård

frede_klitgard_5maj2005

We are sorry to inform you about the death of our Comrade Frede Klitgård, hero of the national resistance, former chairman of the largest organizations of veterans from the Danish resistance movement and former chairman of the People’s Movement Against Nazism. He died on June 5th 2015, 92 years old. To the end he was an active member of our Party and the editor of the antifascist magazine Håndslag. A book in Danish containing many of his writings for the magazine during more than 20 years was finished before his death and will be published in August.

Frede (born 1923) survived a sentence in 1943 of life long imprisonment in the Nazi German prison Dreibergen. He became a leader of the communist youth league after the war and later a journalist of the party newspaper, stationed in Moscow 1953-57, where he covered the notorious 20th congress. He left the Danish party in 1962, taking the side of China and Albania during the Great Polemic, and was one of the founders of the new Marxist-Leninist movement. He was a leading figure in the organizations of the veterans of the resistance, always defending its ideals and achievements against all reactionary attacks. He was a member of the central committee of DKP/ML, the predecessor of APK, and was expelled from the party with the former chairman Klaus Riis and Dorte Grenaa in 1997, following a revisionist coup, and he was one of the founders of the Workers’ Communist Party APK in 2000.

His death has been commented in many obituaries also in the bourgeois press, radio and television and in the socials media, many hundreds hailing him as a heroic fighter.

You can find a special page here on Frede Klitgård and his struggle against Nazism and for communism, including obituaries and a number of his articles, interviews and articles about him.

http://kpnet.dk/artikler/tema/2015-tema-frede-klitgaard%201923-2015_2015.html

Source

Social-Imperialist China Praises Lee Kuan Yew

The then Chinese Vice President Xi Jinping with Lee Kuan Yew in Beijing on August 7, 2008 (REN HAIXIA)

The following article appeared in Beijing Review on April 2, 2015. It praises capitalist oligarch Lee Kuan Yew of Singapore as a great man and his government and economy as a democratic model for developing countries, smeared only by Westerners. It is just another example of the degeneration of China and of the publication, which went from writing articles like “Imperialist Plunder — Biggest Obstacle to the Economic Growth of ‘Underdeveloped’ Countries” in 1965 to praising the monopoly capitalist dictatorial model for other countries to emulate. I posted this article on social media when it first came out. It was largely ignored by supporters of the modern Chinese social-imperialist state, some of which must think it is entirely reasonable for an ostensibly communist publication to recommend that other countries follow the governing style of a deceased bourgeois autocrat. I however, do not.

– E.S.

Lee Kuan Yew’s China Connections

Remembering a wise friend of the Chinese people

By Yu Lintao

Singapore’s founding father Lee Kuan Yew died on March 23 at the age of 91, triggering an outpouring of grief from its citizens and many others around the world. Under Lee’s leadership, Singapore made a stunning transformation from a poor island country to one of the most developed nations within just one generation.

The rapid development of Singapore is well connected with its governance model which was mainly created by Lee–known today as “the Singapore model.” The political model draws on Western political systems without merely copying them. Despite being underplayed by some Western theorists as pseudo-democracy, the Singapore model has shown a clear record as a strong governance style. It ensures the Singaporean Government’s high efficiency, incorruptibility and vitality which lead the country to attain an economic leap forward.

Lee’s political model has not only benefited the development of his own country but also become a model for many countries striving to build a first-world economy. The model indicates that the Western way of governance is not the only way leading to a country’s prosperity and its people’s wellbeing.

In a message posted on the website of the State Council of China, Premier Li Keqiang stated that “Mr Lee Kuan Yew had worked together with the pioneering generation of Chinese leaders in opening the gate for the friendly cooperation between China and Singapore ? His contributions to the China-Singapore relations and China’s reform and opening up will surely be marked by history.”

In a message of condolences to Singapore’s President Tony Tan Keng Yam over the passing away of Lee, Chinese President Xi Jinping hailed Lee as an old friend of the Chinese people and the founder, pioneer and promoter of China-Singapore relations.

Lee was regarded as the founder of close Sino-Singaporean relations. He was one of the few world leaders who met with all five of China’s top leaders and visited China as many as 33 times since his first visit in 1976.

As a visionary politician, Lee seized the momentous opportunity of China’s reform and opening up, advanced Sino-Singaporean cooperation to promote the further development of his country.

In the early phase of China’s reform and opening up, Lee helped China attract investment from overseas businessmen in Southeast Asia, and he also made Singaporean participation in and support for China’s transformation a long-term policy. In the meantime, Lee cemented Singapore’s position in the global economy alongside China’s meteoric rise.

Since the establishment of their official relations in 1990, the bilateral trade between China and Singapore grew from $2.83 billion in 1990 to $91.43 billion in 2013. China has become the largest trading partner of Singapore while Singapore is the 11th largest trading partner of China.

Lee’s proposed Suzhou Industrial Park, the largest cooperative project between China and Singapore, was inaugurated in 1994 in east China’s Jiangsu Province, creating an icon of China-Singapore cooperation. It has also served as a model for China’s economic cooperation with other foreign countries.

The late Chinese leader Deng Xiaoping with Lee Kuan Yew in Beijing in the 1980s (CNS)

The late Chinese leader Deng Xiaoping with Lee Kuan Yew in Beijing in the 1980s (CNS)

The then Chinese President Jiang Zemin with Lee Kuan Yew in Beijing on June 13, 2000 (MAO JIANJUN)

The then Chinese President Jiang Zemin with Lee Kuan Yew in Beijing on June 13, 2000 (MAO JIANJUN)

The then Chinese President Hu Jintao with Lee Kuan Yew in Beijing on June 19, 2004 (MAO JIANJUN)

The then Chinese President Hu Jintao with Lee Kuan Yew in Beijing on June 19, 2004 (MAO JIANJUN)

Source

The Great Soviet Encyclopedia on the Mongolian People’s Republic

Flag2

Mongolian People’s Republic

(Bugd Nairamdakh Mongol Ard Uls).

The Mongolian People’s Republic (MPR) is a state in Central Asia bounded by the USSR and the People’s Republic of China. Area, 1,565,000 sq km. Population, 1,377,900 (early 1974). The capital is Ulan Bator. Administratively, the country is divided into aimaks; Ulan Bator and Darkhan form separate administrative units (see Table 1).

Table1

The MPR is a socialist state and a people’s republic. The present constitution, adopted on July 6, 1960, proclaims that all power in the republic belongs to the working people. Socialist ownership of the means of production and the socialist economic system constitute the economic basis of the social system.

The highest organ of state power and the sole legislative body is the Great People’s Khural, popularly elected by secret ballot for a four-year term on the basis of universal, equal, and direct suffrage. One deputy is elected for every 4,000 inhabitants. The Great People’s Khural ratifies and amends the constitution, establishes the basic principles of domestic and foreign policy, and approves national economic plans, the state budget, and reports on the implementation of the plans. Between sessions of the Great People’s Khural, the highest state body is the Presidium, elected by the Khural and headed by a chairman, deputy chairmen, and a secretary. The highest executive and administrative body is the government of the MPR, the Council of Ministers, which is designated by the Great People’s Khural.

The local governing bodies in the aimaks, cities, and urban districts are khurals of deputies popularly elected for three-year terms. The khurals elect executive bodies from among the deputies. All those citizens who have attained the age of 18 may vote.

The judicial system of the MPR includes the Supreme Court, aimak and city courts, and special courts for criminal cases involving the military. There are also aimak circuit courts and district courts. The Supreme Court and the special courts are elected by the Great People’s Khural for a four-year term, and the other courts are elected by the corresponding khurals. People’s assessors participate in the consideration of cases. Supervision over the observance of legality is exercised by the procurator of the MPR, who is appointed for a four-year term by the Great People’s Khural, and by aimak, city, district, and military procurators appointed by the procurator of the MPR.

Terrain. The MPR is situated in steppe, semi desert, and desert regions of the temperate zone in northeastern Central Asia. A large part of the country lies at elevations of 1,000 to 2,000 m, with mountains predominating in the west and northwest and high plains in the east. The most important ranges are the Mongolian Altai, reaching 4,362 m on Mount Munkh-Khairkhan Ula and stretching for 1,000 km; the Gobi Altai; and the Khangai. The Khentei Upland occupies the central part of the country. The mountains have gentle, smooth slopes and crests, and their bases are often covered by thick talus mantles. Sharp peaks occur only in the highest ranges. The Gobi, one of the world’s largest deserts,extends into the country from the south and southeast. Several isolated volcanic massifs tower above the desert in the southeast, forming the Dariganga volcanic region. In the north and the northwest there are several vast, relatively deep intermontane basins and valleys, the largest of which are the Great Lakes Depression, the Valley of Lakes, and the depression occupied by the valleys of the Orkhon and Selenga rivers. The eastern part of the country consists of plains descending toward the northeast. In the southern and southeastern parts of the Gobi and the Great Lakes Depression, areas covered by sand total about 30,000 sq km.

Geological structure and minerals Mongolia belongs to the Central Asian system, part of the Ural-Mongolian Geosynclinal Belt. The system is divided into two distinct regions, a northern Caledonian and a southern Hercynian. There aretwo types of Paleozoic geosynclinal structures: those in which basic volcanism has played the leading role and those with sialic volcanism. Orogenic Molasse formations are associated with superimposed structures. Granitoids are extensively developed. Tectonics are of the foldblock type, with plutonic fractures, frequently accompanied by ultrabasites; the linear structures of the south are isolated. During the Paleozoic the geosynclines migrated and underwent rejuvenation from north to south.

Mesozoic and Cenozoic formations, filling the downwarps and grabens, are represented by volcanic and sedimentary rocks in the east and amagmatic strata in the west. Remains of dinosaurs have been found in the continental rocks of the Mesozoic.

Important minerals include deposits of coal in the Upper Paleozoic and Mesozoic rocks of superimposed depressions and grabens (Tabun-Tologoi, Sharyn-Gol, Nalaikha). There are deposits of iron ore in Lower Paleozoic siliceous and siliceous-volcanic formations (Tamryn-Gol, Baiangol). The largest of the explored deposits of tungsten are at Buren-Tsogt and Ikh Khairkhan. Tungsten, copper, and molybdenum ores (Erdenituin-Obo) and deposits of fluorite (Berkh) are associated with the Mesozoic metallogenic age. Phosphorite deposits associated with carbonate deposits of the Upper Riphean and Vend have been discovered around Lake Khubsugul. The country also has deposits of gold, tin, zinc, piezoelectric quartz, asbestos, gypsum, granite, and other minerals.

Climate. The climate is dry, markedly continental, and temperate, and there are great seasonal and daily fluctuations in temperature. Winters are cold and sunny, with little snowfall. January temperatures average35°C (minimum,50°C) in the north and10°C in the south. Summers are warm and short. The average July temperature ranges from 18° to 26°C, reaching a maximum of 40°C. The north receives 200–300 mm of precipitation annually and the extreme south (especially the southwest), less than 100 mm. The mountains receive as much as 500 mm of precipitation annually, with the maximum occurring in summer. There are glaciers in the Mongolian Altai, and sporadic permafrost occurs in the northern part of the country.

Rivers and lakes. The largest river, the Selenga (flowing for about 600 km in the MPR), drains into the Arctic Ocean, and the large Kerulen and Onon rivers drain into the Pacific. The largest rivers of the interior are the Dzabkhan and the Kobdo. The annual runoff totals about 30 cu km. The rivers are fed chiefly by rain and snow; floods occur in spring and summer. Many large lakes are found in the tectonic depressions in the west. The largest saline lakes are Ubsu-Nur, covering 3,350 sq km, and Khirgis-Nur, and the principal freshwater lakes are Khubsugul, with an area of 2,620 sq km and a maximum depth of 238 m, and Khara-Us-Nur. There is year-round navigation on Lake Khubsugul and in the lower reaches of the Orkhon and Selenga rivers.

Soils and flora. Chestnut soils cover more than 60 percent of the country’s area, and brown soils with considerable salinization are also widespread, chiefly in the Gobi Desert. Chernozems are found in the mountains, and meadow soils occur along river valleys and in lake basins. More than 2,000 plant species have been identified. The plains of the north and northeast support grass and forb steppes of feather grass, Leymus chinensis, Koeleria, wheatgrass, Stipasplendens, and wormwood, with an admixture of caragana in places. Vegetation in the semideserts and deserts of the south and southeast includes feather grass, Stipa splendens, and saltworts. Tracts of saxaul are found in these mideserts. The most northerly desert region on earth is in the Great Lakes Depression. Forest steppe landscapes are characteristic of the mountain regions, the northern and northwestern slopes support forests of larch, cedar, pine,spruce, and birch. On the Khentei Upland and in the mountains adjoining Lake Khubsugul there are tracts of coniferous taiga. Forests occupy about 10 percent of the country’s territory. Groves of poplars, willows, and bird cherries grow along river valleys.

Fauna. There are more than 100 species of mammals in the MPR. The most common animals are rodents, including marmots, gerbils, jerboas, hamsters, and field mice. Tolai hares and pikas are found everywhere, and muskrats have been acclimatized. Sables, squirrels, flying squirrels, and Siberian chipmunks inhabit the forests. Ungulates include the wild ass and several antelopes—the Persian gazelle, Mongolian gazelle, and saiga. The forests harbor roe deer and maral, and elk and musk deer are found in the Khentei Upland. Wolves and foxes are numerous. Commercially valuable animals include the Mongolian gazelle, boar, lynx, squirrel, sable, and marmot. Such animals as the wild camel, Przhevalsky’s horse in the Gobi Desert, and the Gobi bear are almost unknown outside Mongolia. Taiga flora and fauna are protected in the Bogdo-Ula (Choibalsan-Ula) Preserve in the Khentei Upland, near Ulan Bator.

Natural regions. The Mongolian Altai has predominantly mountain steppe landscapes. The Great Lakes Depression consists of a series of plains occupied by semideserts and deserts, a melkosopochnik (region of low hills), and numerous lakes. The Khentei-Khangai region has mountain steppe and forest steppe landscapes. The East Mongolian region consists chiefly of steppe plains combined with stretches of melkosopochnik and volcanic uplands. The Gobiregion is dominated by semidesert and desert plains (with some depressions and a melkosopochnik ), covered in places with pebbles and rock debris.

REFERENCES

Amantov, V. A., et al. “Osnovnye cherty tektoniki Mongolii.” In Orogenicheskie poiasa. Moscow, 1968.
Mongol’skaia Narodnaia Respublika. Moscow, 1971.
Geologiia Mongol’skoi Narodnoi Respubliki, vols. 1–2. Moscow, 1973.
Murzaev, E. M. Mongol’skaia Narodnaia Respublika, 2nd ed. Moscow, 1952.
Bespalov, N. D. Pochvy Mongol’skoi Narodnoi Respubliki. Moscow, 1951.
Iunatov, A. A. Osnovnye cherty rastitel’nogo pokrova Mongol’skoi Narodnoi Respubliki. Moscow-Leningrad, 1950.
Bannikov, A. G. Mlekopitaiushchie Mongol’skoi Narodnoi Respubliki. Moscow, 1954.
Kuznetsov, N. T. Vody Tsentral’noi Azii. Moscow, 1968.
Gungaadash, B. Mongoliia segodnia. Moscow, 1969. (Translated from Mongolian.)

E. M. MURZAEV (physical geography) and N. G. MARKOVA (geological structure and minerals)

Khalkha Mongols, numbering 901,200 persons (1969 census), constitute 75.3 percent of the population. Other Mongolian-speaking groups—Derbets (34,700), Baits (25,500), Zakhchins (15,000), Olets (6,900), and Torguts (7,100)—have joined with the Khalkhas to form a socialist nation. Khalkhas and the related Dariganga (20,600) live primarily in the central and eastern regions of the country, and the Derbets, Baits, Zakhchins, Olets, and Torguts inhabit the western regions. In the north live Mongolian-speaking Buriats (29,800), and the northwest is inhabited by Turkic-speaking Kazakhs (62,800; almost all live in the Kazakh national Baian-Ulegei Aimak), Tuvinians (15,700), and a small number of Khotons. Russians (22,100) are concentrated in the cities and in several rural settlements in the Selenga, Central, Khubsugul, and Bulgan aimaks. The official language is Mongolian. Believers among the population are Lamaist Buddhists. The official calendar is the Gregorian.

The country has a high natural population growth rate, averaging 2.8 percent a year between 1963 and 1971. About 60 percent of the population is under 30 years of age. The work force numbered 507,000 persons in 1970, of whom 58.7 percent were employed in agriculture, as compared with 70.1 percent in 1960. There were 93,700 industrial workers in 1969, as compared with 14,800 in 1940. The social composition of the population has changed radically during the years of people’s rule. Between 1956 and 1969 the proportion of industrial and office workers and their families increased from 25.9 percent to 56.4 percent of the total population, and the proportion of members of agricultural associations and handicrafts cooperatives increased from 11.1 percent to 43.5 percent. Population density is very low, averaging less than one person per sq km; the population is particularly sparse in the Gobi. In 1972 about 54 percent of the population lived in rural areas and about 46 percent in cities. Between 1956 and 1971 the urban population grew from 183,000 to 604,000; urban dwellers account for about half the population in Selenga, Eastern, and East Gobi aimaks (52 percent, 49 percent, and 51.5 percent, respectively). The largest city is Ulan Bator (303,000 in 1973, including Nalaikha), and cities with more than 10,000 inhabitants are Darkhan, Choibalsan, Kobdo, Tsetserleg, and Muren.

The primitive communal system and the first states (to the 13th century A.D.). The earliest traces of human habitation in Mongolia date from the end of the Lower Paleolithic, about 200,000 to 100,000 years ago (sites in the southern Gobi regions). Upper Paleolithic sites in the central, Gobi, and eastern regions (40,000 to 12,000 years ago) indicate that a matriarchal clan system had evolved. In Neolithic times, from about the fifth to the third millennium B.C., the chief occupations were hunting and fishing. Agriculture probably arose in eastern and southern Mongolia in the late Neolithic and early Aeneolithic. Copper and bronze articles were produced between the second and the middle of the first millennium B.C., as exemplified by the Karasuk culture and the culture of “grave slabs” and “reindeer stones” (stelae depicting running reindeer).

At the end of the Bronze Age and beginning of the Iron Age (first millennium B.C.), the Mongol tribes took up nomadic livestock raising, and the patriarchal clan system developed. Private property appeared in the fourth and third centuries B.C. as livestock became the property of individual families, and barter was introduced. Tribes united to form confederations, whose social structure exhibited “democratic” features (the rise of chiefs and a military elite), attesting to the disintegration of the primitive communal system and the beginning of feudal society. The first tribal confederation in Mongolia was that of the proto-Mongol Hsiungnu (third century B.C. to the first century A.D.), whose material culture has become well known through excavations conducted in the 1920’s by Soviet archaeologists under the leadership of P. K. Kozlov and excavations by Mongolian archaeologists in the 1950’s and 1960’s. In the first century A.D., the Hsiungnu confederation disintegrated and was succeeded by the Sienpi (Hsienpi) confederation. The process of feudalization continued between the fourth and tenth centuries in the Juan-Juan, Turkic, Uighur, and Kirghiz khanates.

The period of the Khitan state, also known as the Liao empire, which flourished from the tenth to the 12th centuries, constituted the final stage in the transition to feudalism. The Khitan state encompassed part of present day China as well as Mongolia. The collapse of the Liao empire in 1125 led to the formation of early feudal principalities and khanates in Mongolia. The basic means of production, the nomad grazing land (nutuk ), became the exclusive property of the feudal elite (noions), and the bulk of direct producers was gradually transformed into the feudally dependent arat class of nomadic herders. The creation of a strong centralized state capable of establishing and enforcing feudal relations by means of a powerful coercive apparatus became historically inevitable. Such a state was created at the beginning of the 13th century through the amalgamation of numerous Mongol tribes, khanates, and principalities under the noion Temiijin, who succeeded in subjugating rival noions.

Mongolia in the feudal period (13th to early 20th centuries). In 1206, Temiijin was proclaimed great khan, or Genghis Khan, at the great kurultai (assembly) of Mongol noions. His domestic policy was aimed at centralizing the state administration in the interest of the feudal lords and consolidating the autocratic rule of the khan. He sought to make land and pasture the property of the state, personified by the great khan. Land grants, called khubi, were bestowed on the noions in return for military service. These grants were similar to the Near Eastern iqta. Free movement by the direct producers was prohibited, which in effect bound them to the land. Genghis Khan created a unified army (comprising virtually the entire male population) under a centralized command and a personal aristocratic guard of many thousands, both based on harsh military discipline. The slightest insubordination or display of cowardice was punished by death.With the consolidation of feudalism, the formation of a single Mongol nation was completed.

Created in the interest of the noion class, which sought to enrich itself through feudal exploitation and the outright plunder of other countries, the military-feudal state embarked on a path of expansion and conquest. The wars of conquestof Genghis Khan, begun around 1210, were continued by his successors. Northern China, the Tangut state, Middle Asia, Transcaucasia, and Iran were conquered by the mid-13th century, and the Mongol-Tatar yoke was established inRus’. A vast state was formed, known as the Mongol feudal empire. The conquest of China was completed in the 1270’s by Kublai Khan, who founded the Yuan dynasty.

The wars of conquest of Genghis Khan and his successors, which brought great misery to the subjugated peoples and enriched the Mongol feudal lords, had a negative influence on the development of Mongolia itself and causeddecline in its productive forces. Lacking a unified economic base and torn by internal contradictions, the Mongol empire began to disintegrate. In 1368 the Mongol feudal lords were driven out of China, and the battle of Kulikovo in 1380 initiated the overthrow of the Mongol-Tatar yoke in Rus’. In the second half of the 14th century the Mongol state in Iran and Transcaucasia fell, and the conquerors met a similar fate in Middle Asia. The empire of the Mongol feudal lords disappeared in the last quarter of the 14th century.

In the ensuing period of feudal fragmentation the basic socioeconomic and political unit of society was the feudal domain— a khanate or principality (otok) belonging to a descendant of Genghis Khan as his hereditary property (umchi)State ownership of land and the system of conditional grants (khubi), which had existed during the empire, gave way to private feudal landed property and unconditional land grants (umchi). The unified early feudal Mongol state was replaced by a multitude of independent khanates and principalities requiring markets to barter livestock and animal products for the agricultural and handicrafts commodities of settled peoples. At this time China alone could provide this market, but it had little interest in such trade. Mongolia reached the point of economic crisis. The Mongol rulers attempted to impose barter on the Chinese authorities by force. The western Mongol (Oirat) feudal lords, separated from China by vast distances and by the eastern Mongol principalities, were at the greatest disadvantage. A protracted struggle over the trade routes to China developed between the feudal lords of eastern and western Mongolia.

Twice during the 15th century attempts were made to overcome feudal fragmentation and reestablish a unified Mongol state, first by the Oirat ruler Esen Khan (ruled 1440–55) and later by the Mongol Daian Khan (ruled c. 1479 to c. 1543).However, the states they created broke up immediately after their deaths, since the social and economic preconditions for unity were lacking. After the death of Daian Khan, Mongolia was divided into Southern and Northern Mongolia,separated by the Gobi Desert. Shortly thereafter, Northern Mongolia was subdivided into Western (Oirat) and Eastern (Khalkha) Mongolia with the boundary running along the Altai Mountains. This territorial division reflected the formation of distinct Mongolian-speaking feudal groups and nations that began in the 15th century. Subsequently these different groups followed separate lines of historical development. In the 16th century there were more than 200 khanates and principalities in the three parts of Mongolia.

In the last quarter of the 16th century the khans and princes of Southern Mongolia and later those of Khalkha were converted to Lamaist Buddhism. The princes of Western Mongolia were converted in the early 17th century, and shortlythereafter Lamaism became the state religion. Within a short time the church grew into a powerful feudal landowner.

The late 16th and early 17th centuries saw the expansion of the Manchu feudal lords, who in 1616 created a state headed by Nurhachi on the territory of present day northeastern China. Taking advantage of the fragmentation of Mongolia,the Manchu in 1634 destroyed the Chahar Khanate, the largest in Southern Mongolia, and in 1636 the noions of Southern Mongolia accepted the suzerainty of the Manchu ruler Abahai (ruled 1626–43). Southern Mongolia came to be called Inner Mongolia, in contrast to Khalkha Mongolia (present day MPR), which the Manchu called Outer Mongolia.

An Oirat feudal state arose in Western Mongolia in the 1630’s. In 1640 an assembly of Mongol khans and princes met in Dzungaria (Western Mongolia) with the aim of settling domestic feuds and unifying their forces to repel Manchu aggression. This unity proved to be short-lived. Especially acute was the conflict between the Oirat Khanate and the Khalkha noions, cleverly encouraged by the Manchu. In 1688 the Khalkha feudal lords, routed by the Oirat khan Galdan (ruled 1671–97), declared themselves subjects of the Ch’ing dynasty (1644–1911), founded by the Manchu after their conquest of China. The Manchu promised the Khalka protection against the Oirats. The Khalkha’s subjugation to the Manchu was confirmed in 1691 at the Dolonnor assembly of noions of Inner and Outer Mongolia. The Oirat Khanate, relying on the friendly neutrality of Russia, defended its independence in a stubborn struggle and remained the only independent Mongol state. From 1755 to 1758 a broad anti-Manchu liberation movement headed by the Oirat prince Amursana and the Khalkha noion Chingunzhab (Chingunjav) developed in Khalkha and Dzungaria. But the movement was suppressed because of its lack of organization and the vacillations of the noion class. In 1758 the Manchu destroyed the Oirat state, slaughtering more than half a million inhabitants. All of Mongolia came under the rule of Ch’ing China, and the Mongols found themselves under dual oppression, owing obligations not only to the noions and the church but also to the Manchu conquerors. To perpetuate its domination, the Ch’ing dynasty sought to isolate Mongolia from the outside world, primarily from Russia. Direct trade between Mongols and Russian merchants was banned by decrees issued in 1719 and 1722, and it was not resumed until the early 1860’s.

In the mid-19th century capitalist Europe “discovered” China. Mongolia was “discovered” at the same time and like China was rapidly drawn into the world market. Usurious Chinese capitalists poured into Mongolia. Unequal trade exhausted the already weak Mongolian economy. The large-scale livestock raising of the noions could not develop normally under these conditions, and income fell.

In the late 19th and early 20th centuries feudal Mongolia became the object of imperialist struggle in the Far East. The main rivals were Japan and tsarist Russia, although Great Britain, the USA, and Germany were also interested. The Ch’ing dynasty began extensive colonization of Mongolia, eliminating the vestiges of the Mongol princes’ autonomy and placing the administration of the country in the hands of its own bureaucracy, supported by Manchu-Chinese garrisons. This policy provoked the resistance not only of the arats but also of the noions, whose position as a ruling class was thus undermined. The overthrow of Manchu domination and independence became nationwide goals. The Russian Revolution of 1905–07 and the growth of the revolutionary movement in China contributed to the revolutionary situation in Mongolia. Anti-Manchu uprisings became larger and more frequent. In the southwestern part of the Kobdo District of Outer Mongolia a movement led by the arat Aiushi assumed broad dimensions, but in general the struggle was directed by the noions.

In the summer of 1911 a secret assembly of high feudal lords convened in Urga (present day Ulan Bator) decided to send a secret mission to St. Petersburg to negotiate for Russian aid in creating an independent Mongolian state. But theRussian government advised Mongolia to seek autonomy within China, promising the noions Russian aid in return for privileges in the country. The overthrow of the Ch’ing dynasty and the formation of an independent Mongolian monarchy headed by the bogdo-gegen (the head of the church) were proclaimed in Urga in 1911. On Dec. 16, 1911, the bogdo-gegen formally assumed the khan’s throne. For more than three years the government established by the bogdo-gegen unsuccessfully sought recognition of Mongolian sovereignty by the Great Powers. In the end it was obliged to accept autonomy within China, which was confirmed by the Kiakhta Treaty of 1915.

Mongolia since 1917. THE VICTORY OF THE REVOLUTION OF 1921 AND THE ACHIEVEMENT OF GENERAL DEMOCRATIC GOALS. The victory of the October Revolution in Russia and the formation of the Soviet state in 1917 opened the way for the revolutionary renewal of Mongolia. The reactionary noion class, however, was hostile to the victory of the socialist revolution in Russia. The government of the bogdo-gegen closed the border with the RSFSR, refused to receive Soviet diplomats, maintained ties with representatives of the former tsarist regime, and in the spring of 1918 permitted Chinese militarist forces to enter the country. It concealed from the people the August 1919 appeal of the Soviet government to the people and government of Outer Mongolia in which the Soviet government renounced all unequal treaties between tsarist Russia and Mongolia, recognized Mongolia’s right to independence, and proposed establishment of diplomatic relations. In November 1919 the Mongolian government renounced autonomy, turning the country into a refuge for Russian White Guards and a base for anti-Soviet intervention, and in 1920–21 it supported the Japanese protege Baron R.F. Ungern von Sternberg, who occupied the country and established a military dictatorship.

Only a successful anti-imperialist and anti-feudal revolution could save the country from outright colonial enslavement. Preparations for such a revolution were begun. Progressive representatives of the arat class and progressive elements among other strata of the population, led by D. Sukhe-Bator and Kh. Choibalsan, established two underground revolutionary groups in Urga in the fall of 1919. In 1920 the two groups united to form a single revolutionary organization called the Mongolian People’s Party. Seeking to establish a direct link with Soviet Russia, the Mongolian revolutionaries sent representatives to Irkutsk and Moscow in the summer of 1920. Working under the terrorist regime of the Chinese and later the Ungern invaders, the members of the Mongolian revolutionary organization disseminated propaganda and organized the masses, laying the foundation for a people’s revolutionary army in preparation for a nationwide armed uprising.

The First Congress of the party, held in Kiakhta in March 1921, formally established the Mongolian People’s Revolutionary Party (MPRP), called the Mongolian People’s Party prior to 1925. In accordance with the resolutions of the congress, the Provisional People’s Government was formed on March 13, and the staff of the Mongolian People’s Revolutionary Army was confirmed; Sukhe-Bator was appointed commander in chief. On March 18 revolutionary troops liberated the city of Maimachen (present day Altan-Bulak) from the occupation forces. In June 1921, Red Army units entered Mongolia at the request of the Provisional People’s Government to assist in the struggle against Ungern’s bands. On July 6 the Mongolian People’s Revolutionary Army and Soviet troops liberated Urga. On July 10, 1921, the Central Committee of the party adopted a resolution to transfer central authority to a permanent people’s government.The revolution triumphed. Power was entrusted to people’s khurals, which became the political foundation of the Mongolian state. A dictatorship of the toiling arat class, led by the party and drawing on the support and aid of the working class of Soviet Russia and the international communist movement, was established by legislation.

All state affairs were conducted by the people’s government, although from 1921 to 1924 Mongolia formally remained a limited monarchy headed by the bogdo-gegen. This situation resulted from the strong influence of the church on the masses and the need to unite all patriotic forces in the anti-imperialist struggle. The people’s government carried out a number of anti-imperialist and anti-feudal reforms. Debts to foreign merchants and usurers, primarily Chinese, were canceled, land was nationalized, serfdom and feudal titles and privileges were abolished, and local self-government was democratized. In the course of the revolution social lines were more clearly defined, and the class struggle intensified, as was reflected in the counterrevolutionary conspiracies of Bodo (1922) and Danzan (1924), which were crushed by the people’s government.

Mongolia’s ties with Soviet Russia were strengthened and expanded. Of paramount importance was a Mongolian delegation’s meeting with V. I. Lenin in November 1921. Lenin’s views on the possibility of noncapitalist development in Mongolia determined the political course of the party and the people’s government. The party joined the Comintern as a sympathizer. On Nov. 5, 1921, a Soviet-Mongolian friendship agreement was signed in Moscow.

The Third Congress of the party, held in August 1924, established as the general party line the noncapitalist development of the country. The socioeconomic measures between 1921 and 1924 under the leadership of the party strengthened the people’s state and created the preconditions for the establishment of a republican system in Mongolia. The first Great People’s Khural, held in November 1924, proclaimed Mongolia a people’s republic and ratified the first constitution of the Mongolian People’s Republic.

The people’s government did all it could to stimulate the growth of productive forces, relying on the aid of the Soviet state. In December 1921 the Mongolian Central People’s Cooperative (Montsenkoop) was formed; in June 1924 the Mongolian Commercial and Industrial Bank was established; and in December 1925 monetary reforms were carried out and a national currency, the tugrik, was issued. Through the efforts of the state and the cooperatives the first industrial enterprises were built, and modern transportation and communications systems were established.

The country’s noncapitalist development toward socialism was opposed by right-wing deviationists from 1926 to 1928. The rout of the rightists at the Seventh Congress of the MPRP, held from October to December 1928, was a major victory for the Leninist basic line of the party. In the early 1930’s foreign capital was expelled from the country’s economy, and a state monopoly over foreign trade was established. The taxation policy, the strengthening of Montsenkoop, and the aid of Soviet trade organizations ensured the fulfillment of these objectives.

For a long time former feudal lords held strong positions in the economy, owning more than one-third of all livestock in 1924. In 1929 the expropriation of large feudal holdings began, and the livestock and property of former feudal lords became the property of poor peasants and the people’s state. The elimination of the feudal lords as a class took place amid a fierce struggle. The forces of reaction employed various forms of resistance, ranging from small-scale sabotage to armed uprisings in 1932. The reactionaries took advantage of the errors of the ultra-left leadership in the party and the state between 1929 and 1932. Ignoring the real situation, the ultra-leftists proclaimed the transition of the revolution to the socialist stage and began to implement a policy that caused serious economic and political difficulties. The third Extraordinary Plenum of the Central Committee and the Central Control Commission of the MPRP (June 1932) condemned the distortions that had been permitted and attempted to restore the party’s general line. The Ninth Congress of the MPRP, held in September and October 1934, approved the decisions of the Extraordinary Plenum.

Emancipation from colonial dependence and the abolition of feudal relations gave impetus to the development of the productive forces. The country’s livestock increased by 36 percent between 1929 and 1940. State and cooperative industry arose, chiefly coal mining, the production of electric energy, and the processing of agricultural raw materials. Automotive, railroad, and air transport developed. Between 1934 and 1939 the retail trade increased 2.5 times and exports 2.3 times; imports doubled. The main sources of revenue were the state and cooperative sectors: taxes and imposts collected from the population accounted for only 16.7 percent of revenues in 1940.

Against the background of a complicated international situation resulting from Japan’s aggressive policy, a Soviet-Mongolian gentlemen’s agreement on mutual aid in the event of an attack on one of the parties was concluded in November 1934. The oral agreement was confirmed by the Soviet-Mongolian Protocol on Mutual Assistance signed in March 1936. The Japanese troops that invaded Mongolia near the Khalkhin-Gol River in May 1939 were vigorously resisted by the Mongolian Army and the Soviet troops that came to its aid. In August 1939 the Japanese were completely routed.

By 1940 the country’s social structure had been fundamentally changed through revolutionary reforms. The class of feudal lords had disappeared, and the arats had become a class of free small producers. A national working class was emerging (numbering about 15,000 workers in 1940), and a working-class intelligentsia was developing. Small-scale and socialist enterprises were the basic economic unit. The socialist sector encompassed state and cooperative industry, mechanized transport, the financial system, and state and cooperative commerce. There were centers of socialist production in agriculture as well, the goskhozes, but small-scale production predominated. Capitalist elements also persisted in agriculture—large livestock-raising farms based on the hiring and exploitation of labor. In commerce these elements were represented by private merchants. In general, however, capitalist enterprises played an insignificant role in the national economy. The people’s government pursued a policy of limiting and displacing these elements. During the general democratic stage of development a cultural revolution took place with the aim of overcoming feudal vestiges in the people’s consciousness and establishing a revolutionary world view and progressive culture.

The achievements of the general democratic stage were summed up at the Tenth Congress of the MPRP held in March and April 1940 and at the Eighth Great People’s Khural in June 1940. The congress adopted a new party program,and the Eighth Great People’s Khural promulgated a new constitution reflecting the profound socio-economic changes that had occurred in the republic.

CONSTRUCTION OF SOCIALISM. Having fulfilled the general democratic tasks of the revolution by 1940, the country entered a new, socialist stage. The main tasks now became the acceleration of the rate of growth of productive forces, the voluntary formation of production cooperatives out of individual arat farms throughout the country, the creation of a single socialist system for the national economy, and the further development of the cultural revolution.

The transition to the socialist stage took place during World War II. From the first day of the Great Patriotic War of the Soviet Union, the Mongolian people, the MPRP, and the government of Mongolia took a consistently internationalist position of supporting the just cause of the peoples of the USSR and giving them much moral and material aid. This position was set forth in the Declaration of the Joint Session of the Presidium of the Central Committee of the MPRP,the Presidium of the Lesser Khural, and the Council of Ministers of the MPR on June 22, 1941. Thousands of tons of food, warm clothing, the savings of Mongolian working people, and thousands of head of cattle were contributed to the Red Army. During the war, 32,000 horses were sent by the Mongolian people as a gift to the USSR. The workers of Mongolia sent several trainloads of gifts to the fronts of the Patriotic War. The Revolutionary Mongolia Tank Column and the Mongolian Arat Air Squadron, which fought in battles against fascist German troops, were built with money collected by the working people of Mongolia. The economic policy of the MPRP and the people’s government was oriented toward the fullest utilization of local resources and the satisfaction of the country’s needs through domestically produced products. The MPR participated directly in the rout of the Japanese aggressors, declaring war on Japan on Aug. 10,1945. Its 80,000-man army fought a heroic campaign across the Gobi Desert to the Gulf of Liaotung, making its contribution to the common cause of victory.

In 1944 the government of Mongolia abolished the restrictions on the electoral rights of former feudal lords and persons who had previously exploited the labor of others, granting them the right to elect representatives to organs of people’s power and to be eligible for election. In 1949 elections by stages were replaced by direct elections and open voting by secret ballot. The country’s international position was strengthened. Its sovereignty was confirmed at the Yalta Conference in 1945. Fraternal relations with the USSR were strengthened. The Treaty on Friendship and Mutual Assistance Between the USSR and the MPR and the Agreement on Economic and Cultural Cooperation were signed in February 1946. In 1948, Mongolia began to establish diplomatic relations with the other socialist states, and economic and cultural cooperation with these countries expanded.

The postwar period was marked by great achievements in socialist construction. In 1947 the Eleventh Congress of the MPRP adopted a resolution calling for long-term planning of the national economy and culture and ratified the directives for the first five-year plan (1948–52). The session of the Great People’s Khural held in July 1954 elected Zh. Sambu (died 1972) chairman of the Presidium of the Great People’s Khural and formed a government headed by lu.Tsedenbal.

In the following years the national economy developed according to the second five-year plan (1953–57) and the three-year plan (1958–60). The development of industry brought about the growth of the working class. In 1960 the number of industrial and office workers was 5.9 times greater than in 1940. At the country’s socialist stage of development the working class became the leading force in the construction of a new society.

Beginning in 1955 agricultural production cooperatives were organized on a large scale. By the spring of 1959, virtually all the country’s arat farms had joined agricultural associations. The plenum of the Central Committee of the MPRP held in December 1959 announced that with the completion of the organization of the arat class into production cooperatives, socialist productive relations had triumphed in all spheres of the national economy. This meant that the country had made the transition to the socialist social system and that the party’s general line of noncapitalist development toward socialism had been successful. The historic victories of the Mongolian people were reflected in the new constitution ratified in July 1960 at the first session of the fourth convocation of the Great People’s Khural.

The Fourteenth Congress of the MPRP, held in July 1961, confirmed that the country had entered the period in which the construction of socialism was being completed. The fullest development of the material and technical base of socialism was now the main goal. The congress approved the directives of the third five-year plan (1961–65). The new program of the MPRP, adopted by the Fifteenth Congress in 1966, reflected the successes that had been achieved and defined the tasks for transforming the country into an industrial-agrarian state. The directives of the fourth five-year plan (1966–70) for the development of the national economy and culture were approved. The successful fulfillment of the plan raised the level of Mongolia’s economy and culture to a still higher level.

The Sixteenth Congress of the MPRP, held in June 1971, summed up the achievements of the 50-year struggle of the working people to overcome the country’s backwardness and their efforts to ensure the victory of the socialist path of development. The congress approved the directives for the fifth five-year plan for the development of the national economy and culture (1971–75), which were successfully, carried out. Over these five years the gross national product increased by 44.5 percent, the national income by 38 percent, and the volume of industrial production by 55.2 percent. The Seventeenth Congress of the MPRP, held in June 1976, adopted the Guidelines for the Development of Mongolia’s National Economy for 1976–1980. The new five-year plan’s chief goal is to ensure a further growth of social production, to raise its efficiency, and to improve the quality of work in all sectors of the economy and culture,thereby achieving a steady improvement in the people’s living standard and cultural life.

Mongolia’s foreign policy aims at securing peaceful conditions for the construction of socialism and strengthening the unity and cohesion of the world socialist system. The republic supports the national liberation struggle of peoples and the revolutionary struggle of the working class of the capitalist countries, and it promotes the preservation and strengthening of peace and the security of nations. Observing the principles of equality, mutual respect, and nonintervention in domestic affairs, Mongolia is pursuing a policy of establishing and developing relations with nonsocialist states regardless of their social system. The republic supports the USSR’s proposals for general and complete disarmament (1959 and 1962). It signed the Moscow Treaty of 1963 banning the testing of nuclear weapons in the atmosphere, outer space, and under water, the treaty on the nonproliferation of nuclear weapons (1968), and the treaty on the ocean floor(1970). It supports the Arab countries’ struggle against Israeli aggression, the struggle of the peoples of Vietnam, Cambodia, and Laos, the proposals of the Korean Democratic People’s Republic for the peaceful unification of Korea, the anti-imperialist struggle of the peoples of Asia, Africa, and Latin America, collective security in Asia, and the struggle of progressive forces for peace and security in Europe. Mongolia has been a member of the UN since 1961 andmember of the Council for Mutual Economic Assistance since 1962. By 1975 it had established diplomatic relations with 75 countries and trade relations with more than 20. It belongs to 62 international organizations, 19 of which are governmental, and since 1969 it has been a member of the Disarmament Committee. Soviet-Mongolian relations are governed by the Treaty on Friendship, Cooperation, and Mutual Assistance, signed in January 1966. Mongolia has also signed treaties on friendship and cooperation with a number of other socialist countries.

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Istoriia Mongol’skoi Narodnoi Respubliki, 2nd ed. Moscow, 1967.
Bartol’d, V. V. Turkestan v epokhu mongol’skogo nashestviia, parts 1–2. St. Petersburg, 1898–1900.
Vladimirtsov, B. la. Obshchestvennyi stroi mongolov. Leningrad, 1934.
Maiskii, I. M. Mongoliia nakanune revoliutsii, 2nd ed. Moscow, 1959.
Zlatkin, I. la. Mongol’skaia Narodnaia Respublika—strana novoi demokratii. Moscow, 1950.
Zlatkin, I. la. Ocherki novoi i noveishei istorii Mongolii. Moscow, 1957.
Zlatkin, I. la. Istoriia Dzhungarskogo Khanstva. Moscow, 1964.
Mongol’skaia Narodnaia Respublika. Moscow, 1971.
50 let narodnoi revoliutsii v Mongolii. Moscow, 1971.
50 let Narodnoi Mongolii: Polveka bor’by i truda (collection of articles). Moscow-Ulan Bator, 1971.
Narody-brat’ia: Sovetsko-mongol’skaia druzhba. Vospominaniia i stat’i. Moscow, 1965.
Gol’man, M. I. Problemy noveishei istorii MNR v burzhuaznoi istoriografii SShA. Moscow, 1970.
Novgorodova, E. A. Tsentral’naia Aziia i karasukskaia problema. Moscow, 1970.
Ocherki istorii Mongol’skoi narodno-revoliutsionnoi partii. Moscow, 1971. (Translated from Mongolian.)
Choibalsan, Kh. Izbr. stat’i i rechi (1921–1951), vols. 1–2. Moscow, 1961. (Translated from Mongolian.)
Tsedenbal, lu. Izbr. stat’i i rechi, vols. 1–2. Moscow, 1962. (Translated from Mongolian.)
Shirendyb, B. Mongoliia na rubezhe XIX-XX vekov. Ulan Bator, 1964.
Shirendyb, B. Narodnaia revoliutsiia v Mongolii i obrazovanie Mongol’skoi Narodnoi Respubliki, 1921–1924. Moscow, 1956.
Shirendyb, B. Minuia kapitalizm. Ulan Bator, 1967.
Shirendyb, B. Istoriia Mongol’skoi narodnoi revoliutsii 1921. Moscow, 1971. (Translated from Mongolian.)
Tudev, B. Formirovanie i razvitie rabochego klassa Mongol’skoi Narodnoi Respubliki. Moscow, 1968. (Translated from Mongolian.)
Bugd Nairamdakh Mongol Ard Ulsyn tuukh, vols. 1–3. Ulan Bator, 1966–70.
Natsagdorzh, Sh. Khalkhyn tuukh. Ulan Bator, 1963.

E. A. NOVGORODOVA (to the third century B.C.), G. S. GOROKHOVA (from the third century B.C. to the 13th century A.D.), and I. IA. ZLATKIN (from the 13th century)

The Mongolian People’s Revolutionary Party (MPRP; Mongol Ardyn Khuv’sgalt Nam) was organized at the First Congress, held Mar. 1–3, 1921. Until 1925 it was called the Mongolian People’s Party. In January 1976 it numbered more than 67,000 members and candidate members. The country’s trade unions were organized and amalgamated at the first congress of trade unions in 1927. In 1976 they had a membership of about 300,000, and since 1949 they have belonged to the World Federation of Trade Unions. The Mongolian Revolutionary Youth League, established in 1921 and numbering more than 140,000 members in 1976, belongs to the World Federation of Democratic Youth. Other organizations include the Committee of Mongolian Women, established in 1933; the Federation of Mongolian Organizations of Peace and Friendship, established in 1959; the Society for Mongolian-Soviet Friendship, established in 1947;the Mongolian Peace Committee, established in 1949; and the Mongolian Committee of Solidarity With the Countries of Asia and Africa, established in 1957.

A. A. POZDNIAKOV

As a result of the People’s Revolution of 1921, Mongolia embarked on the path of socialist development, bypassing the capitalist stage. Under the people’s government Mongolia was transformed from a backward agrarian-feudal country  with nomadic livestock raising into a rapidly developing socialist agrarian-industrial state. Extensive cooperation with the USSR and, in the postwar period, with other socialist countries as well played an important role in building the material and technical base of socialism and in developing industry, agriculture, transportation, communications, and other branches of the national economy. Mongolia maintains both bilateral and multilateral economic ties with the socialist countries in the Council for Mutual Economic Assistance (COMECON). Within the international socialist division of labor, the republic specializes in producing food and light industry products—primarily processed raw materials of livestock raising. Mongolia supplies the world market with leather, wool, leather and wool articles, meat products, and casein.

Agriculture accounted for 19.6 percent of the national income in 1973, industry for 24.1 percent, construction for 12.6 percent, transportation and communications for 7.2 percent, and trade for 34.4 percent. The fifth five-year plan (1971–75) was inaugurated in 1971.

Agriculture. As a result of fundamental socioeconomic reforms, socialist productive relations dominate agriculture. There are two kinds of socialist property—cooperative (agricultural associations, called SKhO) and state (goskhozes). Along with traditional livestock raising, crop farming has become an important branch of agriculture. In 1972 livestock raising accounted for 83.4 percent of the gross agricultural product and crop cultivation for 16.6 percent. The ratio of livestock to inhabitants is one of the highest in the world. About 24.6 percent of the cultivated area, 95 percent of the pastures, and 75 percent of the livestock belong to the cooperative sector, comprising 272 SKhO’s at the end of 1972. Some 22.2 percent of the livestock is the personal property of SKhO members. The SKhO’s are the main suppliers of livestock products. The state sector, consisting of 35 goskhozes, owns 75.4 percent of the cultivated area, 3 percent of the pastures, and 4 percent of the livestock. It accounts for four-fifths of the total output of cereals and for a substantial quantity of potatoes, vegetables, and fodder crops. The goskhozes also raise pedigree livestock. The main farming operations on the goskhozes are largely mechanized. At the end of 1972 there were 6,300 tractors, as compared with 1,700 in 1960. Various measures are being taken to raise the level of agriculture, particularly animal husbandry,including the construction of livestock buildings and watering facilities, the irrigation of pastures, and the development of a mixed-feed industry.

LIVESTOCK RAISING. Sheep raising, the leading branch of animal husbandry, is well developed throughout the country, but especially in the western and central regions. Cattle are raised primarily in the northeastern and northern regions.Goats are raised in the west, camels chiefly in the south and southeast, and yaks and khainaks in mountainous areas. Horses are bred throughout the country. Hog and poultry farms are being established on the outskirts of towns. Fur farming is also important. (See Tables 2 and 3 for the number of livestock and the products of livestock raising.)

Table2

CROP CULTIVATION. Between 1955 and 1972 the sown area increased from 62,900 hectares (ha) to 475,000 ha through the opening of virgin land. Cereals and legumes occupy 88.4 percent

Table3

of the sown area; fodder crops, 10.7 percent; potatoes, 0.6 percent; and vegetables, 0.3 percent. (See Table 4 for the yield of principal crops.)

Table4Industry. Owing to Mongolia’s particular historical and socioeconomic development, the country’s socialist industrialization began with the creation of branches of the light and food industries. Between the 1940’s and 1960’s, along with such traditional branches as the production of textiles, clothing, and leather footwear, branches of the heavy industry also developed, including the mining, electrical energy, woodworking, building-materials, and metalworking industries.(See Table 5 for the branch structure of industry.)

Table5

Most industrial enterprises are small or medium in size. Between 1941 and 1950 the annual growth rate of the gross industrial product averaged 6.9 percent; from 1951 to 1960, 10.8 percent; and between 1961 and 1970, 9.7 percent.Overall, the gross industrial product increased 13.8 times between 1940 and 1970. In 1972 industry contributed more than one-third of the country’s social product. Almost the entire industrial output, 96.8 percent in 1972, was produced by the state sector. In 1973 producer goods accounted for 49.7 percent of the gross industrial output and consumer goods for 50.3 percent.

MINING AND ELECTRIC POWER. The main branch of mining is the extraction of coal, chiefly lignite. Most of the coal is mined at the Sharyn-Gol open pit mine near Darkhan, producing more than 1 million tons annually; the Nalaikha mine, with an annual capacity of 600,000 tons; and the Adunchulun open-pit mine near Choibalsan, with an annual capacity of 200,000 tons. There are a number of smaller strip mines in the Under-Khan region and elsewhere. Electric energy is produced by steam power plants, of which the largest is at Darkhan. In 1967 a unified power system was built in the Central Region with the aid of the USSR.

Tungsten and fluorspar (fluorite) are also extracted. In 1973 construction began on an ore-concentration combine for processing the output of the copper-molybdenum mine at Erdenetiin-Obo, Bulgan Aimak.

MANUFACTURING. The light and food industries account for about half the gross industrial output and employ about half the country’s industrial workers. Among the largest enterprises is the industrial combine at Ulan Bator with eight factories, including a wool-washing plant, tanneries processing large hides and kidskin, and factories producing leather articles, felt, worsted cloth, and footwear. Other large enterprises include meat-packing plants at Ulan Bator and Choibalsan, flour milling combines at Ulan Bator and Sukhe-Bator, and the Ulan Bator mechanized bakery. The woodworking combines at Ulan Bator and Sukhe-Bator and other forestry enterprises use local lumber, cut chiefly in the north (754,000 cu m in 1972). Important enterprises of the building materials industry include the prefabricated housing combine at Ulan Bator and the cement and brick plants at Darkhan. Other products include furs, sheepskin coats, carpets, pharmaceuticals, and glass and porcelain articles. There is a printing industry. The country’s three major industrial areas are the Ulan Bator, Darkhan-Selenga (center, Darkhan) and Eastern regions (center, Choibalsan). (See Table 6 forthe output of the principal industrial products.)

Table6

Transportation. Railroad transport accounted for about three-fourths of the total freight turnover in 1972. The railroad system is 1,400 km long. The main railroad is the Trans-Mongolian, which crosses the country from north to south. About one-fourth of the total freight is transported by motor vehicle. Most roads are unpaved. There is navigation on Lake Khubsugul and on the Selenga and Orkhon rivers. The Civilian Air Transportation Board was established in 1956. Ulan Bator has an international airport.

Foreign trade. Economic and scientific-technical cooperation and trade with the socialist countries (members of COMECON, which Mongolia joined in 1962) are an important factor in the development of the national economy. With the aid of the socialist countries a number of major enterprises have been constructed, including electric power plants at Ulan Bator and Darkhan (USSR), Ulegei (Czechoslovakia), and Kharkhorin (Poland); the shaft and open-pit mines atSharyn-Gol, Nalaikha, and Adun-Chulun (USSR); the Ulan Bator motor vehicle repair plant (USSR); woodworking and prefabricated housing combines at Ulan Bator and a building materials combine at Darkhan (USSR), and a cement plant at Darkhan (Czechoslovakia). Other enterprises built with the assistance of the COMECON countries include a silica brick plant (Poland), a carpet factory (German Democratic Republic), leather enterprises (Czechoslovakia), a sheepskin coat factory (Bulgaria), a garment factory (Hungary), meat-packing plants (USSR, German Democratic Republic, and Bulgaria), and wool-washing factories (USSR). The COMECON countries are also helping Mongolia in exploring and developing mineral deposits.

A foreign trade monopoly was instituted in 1930. In 1972 the socialist countries, chiefly members of COMECON, accounted for about 99 percent of Mongolia’s foreign trade; the USSR’s share amounted to 85 percent. The first trade agreement with the USSR was signed in 1923; Soviet-Mongolian agreements on economic cooperation and trade agreements for 1971–75 were concluded in 1970. Trade with the COMECON countries is regulated by five-year agreements.

The main exports are livestock, meat and meat products, wool, hides and leather goods, and minerals. The main imports are machines and equipment, petroleum products, ferrous metals, chemical products, foodstuffs, and consumer goods. The monetary unit is the tugrik. According to the exchange rate of the State Bank of the USSR in April 1974, 100 tugriks equaled 22 rubles 50 kopeks.

I. KH. OVDIENKO

Growth of prosperity. The living standard and cultural level of the population have been rising steadily. Between 1940 and 1972 the national income increased 5.9 times, and in 1972 about 70 percent of the national income was allocated for goods and services. Production of consumer goods increased seven fold between 1950 and 1971. The standard of living of the working people is rising owing to higher wages for industrial and office workers (increasing by 27 percent during the fourth five-year plan from 1966 to 1970), the higher income of members of agricultural associations (by 240 million tugriks), and the rapid growth of the social consumption fund (by 19.9 percent). The average monthly wages of industrial and office workers increased 1.2 times between 1960 and 1972. The wage rates of workers in a number of branches of material production have risen.

In 1971 wages of up to 300 tugriks a month were declared exempt from income tax, and tax rates for monthly wages of more than 300 tugriks were reduced by approximately 20 percent. The salaries of certain categories of low-paid workers in agricultural associations were raised by an average of more than 15 percent.

The proportion of the social consumption fund allocated for the payment of pensions, allowances, and benefits and for free services has increased substantially. Industrial and office workers and the members of agricultural associations receive old age pensions. Between 1966 and 1970, old age pensions increased by an average of 20 percent, with the amounts ranging from 150 to 600 tugriks. Men 60 years of age and women 55 years of age (for jobs injurious to health,55 and 50 years, respectively) who have worked more than 20 years (or more than 15 years in unhealthy jobs) are eligible for pensions. In 1971 the allowance for mothers with many children was increased.

Much attention is devoted to the protection of labor. Paid vacations, disability pensions, and leaves for temporary disability have been instituted. The eight-hour workday and the six-day week are standard.

Measures have been taken to improve the working and living conditions of the rural population. The funds from which members of agricultural associations are paid for their labor have been increasing, and the members’ income from cooperative farming is growing. The prices paid by the state for the main products of livestock raising have increased, and incentive increments on products exceeding the plan for state procurements have been established.

Between 1960 and 1972 the per capita retail commodity turnover increased by 38 percent, with the per capita turnover of foodstuffs increasing by 67 percent. Up to 40 percent of the state budget is spent for social and cultural purposes excluding capital construction. In 1972 the per capita expenditure for social and cultural services was 37 times that of 1940. Free education is provided in general schools, vocational schools, technicums, and higher educational institutions in both cities and rural areas. Kindergartens, nurseries, boarding schools, hospitals, maternity homes, and other medical institutions are maintained by the state. The housing supply is continuously increasing; about 150,000 sq m of housing were constructed in 1971–72. Various measures are being taken to improve the living conditions of rural workers.

D. BATSUKH

REFERENCES

Ocherki ekonomiki Mongol’skoi Narodnoi Respubliki. Moscow, 1969.
Ovdienko, I. Kh. Sovremennaia Mongoliia. Moscow, 1964.
Gungaadash, B. Mongoliia segodnia: Priroda, liudi, khoziaistvo. Moscow, 1969. (Translated from Mongolian.)
Roshchin, S. K. Sel’skoe khoziaistvo MNR na sotsialisticheskom puti. Moscow, 1971.
50 let MNR: Statistich. sb. Ulan Bator, 1971.
Statisticheskii ezhegodnik stranchlenov Soveta ekonomicheskoi vzaimopomoshchi 1973. Moscow, 1973.

Mongolia’s armed forces, the Mongolian People’s Army (MPA), consist of ground troops, antiaircraft units, and border troops. The minister of defense exercises direction over the army, which is maintained by universal conscription. The period of active military service is three years, and the draft age is 19 years. Armaments include missiles of various types, modern tanks, artillery, jet aircraft, and engineering, radar, and other military equipment. The first regular units were organized in early 1921. Between May and August 1939 the MPA, along with Red Army troops, took part in the rout of the Japanese forces that attacked the republic near the Khalkhin-Gol River. In August 1945 the MPA and Soviet Armed Forces defeated the Kwantung Army of imperialist Japan. March 18 is observed as the anniversary of the MPA’s formation. On Mar. 18, 1921, Mongolian troops won their first major victory, liberating the city of Maimachen, present day Altan-Bulak, from the invaders.

The hardships of nomadic life in pre-revolutionary Mongolia and the prevalence of infectious and venereal diseases resulted in high morbidity and mortality rates (including infant mortality) compared to other Oriental countries.

In 1972 the birth rate was 39.3 per thousand inhabitants, and the overall mortality rate, 10.8 per thousand inhabitants (the corresponding figures in 1921 were 25 and 30). The infant mortality rate was 73.4 per thousand live births in 1970,compared to 500 in 1921. The average life span doubled between 1919 and 1969, rising to 64.5 years (62.5 years for men and 66.33 for women).

The incidence of infectious diseases decreased sharply under the people’s government. Smallpox, plague, typhus, and recurrent fever have been completely eradicated, and malignant anthrax, rabies, spinal meningitis, and trachoma have been reduced to isolated cases. Between 1965 and 1970 alone the incidence of diphtheria declined 7.2 times; brucellosis, 4 times; typhoid, 1.9 times; and dysentery, 1.7 times. The incidence of poliomyelitis in 1969 was 26 times less than that in 1963. Among parasitic diseases helminthiases predominate.

Mongolia has a state public health system providing free medical care for the entire population. In 1973 there were more than 350 hospitals with some 12,000 beds, or 9.6 beds per thousand inhabitants (in 1925 there was only one hospital with 15 beds). The country also had 164 polyclinics in 1971. The population of goskhozes, agricultural associations, and relatively inaccessible regions is served by 97 medical stations staffed by doctors and 846 stations run by medical assistants (1970). Maternity hospitals, obstetrical stations, maternity and children’s consultation clinics, child nutrition facilities, nurseries, and kindergartens have been established under the people’s government. Pregnant workingwomen are given a paid leave of 45 days both before and after delivery. Under the law mothers receive payments upon the birth of twins, and there are other benefits for mothers with many children. In 1970, 92 percent of pregnant women and 94 percent of children under the age of one were being regularly examined at dispensaries.

In 1972 there were about 2,500 doctors (one for every 520 persons), compared with two doctors in 1925 (one for every 325,900 persons); 93 dentists; 700 pharmacists; and about 8,000 intermediate medical personnel. Medical specialists are trained by the Mongolian State Medical Institute, founded in 1942 as the medical faculty of the Mongolian State University and functioning since 1961 as an independent institute. It has departments of medicine, pediatrics, hygiene, stomatology, and pharmacy, a division of dentistry, and advanced training courses for physicians. Intermediate medical personnel are trained at three medical technicums (in Ulan Bator and in the East Gobi and Gobi-Altai aimaks) and six schools (in Ulan Bator and Darkhan and in the Arakhangai, Kobdo, and Eastern aimaks). The country has many mineral springs, called arshans, at which health resorts for working people have been built. The largest resorts are Zhanchivlin, Gurvannur, Otgon Tenger, and Khudzhirt. In 1970 public health expenditures totaled about 106 million tugriks.

V. V. SHUVAEV

Veterinary services. Under the people’s government, Mongolia’s veterinary service, aided by Soviet specialists, has been highly successful in controlling epizootic diseases among livestock. Plague and peripneumonia of cattle,infectious pleuropneumonia of goats, and sheep pox have been wiped out. In 1966–68 specialists from COMECON assisted Mongolian veterinarians in carrying out a diagnostic examination of all livestock to determine the incidence of the most dangerous anthropozoonoses—glanders, brucellosis, and tuberculosis. A comprehensive program for eradicating these diseases was worked out. Other common diseases include scabies of sheep and camels, necrobacillosis, swine plague, and such helminthiases as coenurosis, echinococcosis, and cysticercosis.

The state veterinary service is under the Ministry of Agriculture. Veterinary preparations are produced at pharmaceutical plants in Songino and Kobdo. Research is conducted at the Research Institute of Livestock Raising, the Agricultural Institute, and the Central Veterinary Hygiene Laboratory of the Republic. Veterinarians are trained at the Agricultural Institute of Ulan Bator, and veterinary assistants are trained at four technicums. In 1970 there were 900 veterinarians.

S. I. KARTUSHIN

In prerevolutionary Mongolia, less than 1 percent of the population was literate. The only schools in the country were the datsans attached to Buddhist monasteries, which taught primarily Tibetan, Buddhist philosophy, and astrology. After the victory of the People’s Revolution of 1921, the popular government began to organize a state system of public education. The Decree on the Organization of Elementary Schools was adopted in August 1921, and the Regulations for Elementary Schools were ratified the same year. In 1927 the Regulations for Secondary Schools were approved, banning private schools and providing for the creation of genuinely national state schools in which Mongolian would be the language of instruction. In 1921–22, 12 elementary schools and a seven-year school (in Ulan Bator) were established, with an enrollment of 400 children.

The organizational principles of public education were set forth in the party’s second program, adopted by the Fourth Congress of the MPRP in 1925. General secular schools were to be established for all children, regardless of sex or nationality. Instruction was to be free, compulsory, and coeducational for all children up to 18 years of age, and corporal punishment was abolished. One of the goals of education was to inspire devotion to the party and the nation. During the first years of the people’s government, the development of public education was complicated by a shortage of money for the organization of mass education, a lack of teachers, and a lack of experience in organizing schools. The first teacher-training courses were inaugurated in 1922. In the late 1920’s, the training of teachers in Soviet schools began. Standard curricula were introduced in 1933. The Lamaist clergy stubbornly resisted the introduction of secular education, and until the late 1930’s, monastic schools existed alongside state schools. In 1933, monastic schools had an enrollment of 18,000 students.

From the first years of the people’s government adult education courses were given at all schools and in all military units, industrial enterprises, and farm organizations. In 1941 a new alphabet was introduced, based on Cyrillic.nationwide movement arose whose slogan was “Each literate person, teach at least three illiterates.” By the end of the first five-year plan (1952), illiteracy had been virtually eradicated among adults.

In 1955 the Central Committee of the MPRP and the Council of Ministers of the MPR adopted the resolution On Universal Compulsory Elementary Education of School-age Children, and in 1958 they adopted the resolution On the Introduction of Universal Compulsory Seven-year Education in the Cities and Aimak Centers. Adult education was further advanced through an extensive network of seasonal and general evening schools and schools for people working in shifts. The new party program adopted at the MPRP’s Fifteenth Congress in 1966 called for the immediate establishment of universal lower secondary education for all school age children. The program also envisaged a subsequent transition to universal upper secondary education. In 1972–73 a new secondary school curriculum was introduced, providing for three years of instruction in elementary schools, eight years in lower secondary schools, and ten years in upper secondary schools. In the 1973–74 school year there were 549 schools of all types, with an enrollment of 274,300.

A system of vocational training was organized in 1964 to train skilled workers. In 1972 there were 20 vocational schools with 8,700 students. Between 1965 and 1970 more than 20,000 workers were trained in 70 specializations.

In 1924 the first special secondary schools were established, whose teachers were Soviet educators and specialists. In 1970 there were 11,100 persons studying in 19 technicums, including several medical, veterinary and agricultural schools and schools of finance and economics, trade, polytechnical education, and railroad transport.

Public higher education was initiated in 1940 with the opening of the Pedagogical Institute in Ulan Bator. In 1942 the Mongolian State University was established with the aid of the USSR. Initially the university had three departments—medicine, veterinary science, and pedagogy. By 1972 the university had departments of physics and mathematics, chemistry and biology, social sciences (training specialists in philosophy, history, and law), economics, and philology.With the aid of UNESCO the Polytechnic Institute was created in 1969 under the auspices of the university. Several of the university’s departments have grown into independent institutes of pedagogy (1951), agriculture (1958), and medicine (1961). In the 1972–73 academic year, 8,900 students were studying in higher educational institutions. By 1970 more than 15,000 Mongolian specialists had been trained in higher and special secondary institutions of the USSR; more than 4,000 Mongolian students were receiving training in the USSR in 1973.

Ulan Bator is the site of the State Public Library (founded in 1921, 1 million volumes), the country’s largest library, the State Central Museum, the V. I. Lenin Museum, the Central Museum of the Revolution, the Museum of Religion, the Museum of Fine Arts, the Museum of the Reconstruction of Ulan Bator, and the D. Natsagdorzh Museum.

REFERENCE

Baldaev, R. L. Narodnoe obrazovanie v Mongol’skoi Narodnoi Respub-like. Moscow, 1971.

L. M. GATAULLINA

Natural and technical sciences. In feudal Mongolia scientific knowledge was acquired primarily in astronomy, medicine, and agriculture. Under the people’s government, there have been notable scientific advances. Contacts with Soviet scientists were established in 1921, and in 1929 an agreement on cooperation was signed by the Academy of Sciences of the USSR and the Committee of Sciences of the MPR. During the 1930’s and 1940’s research in the natural sciences was oriented toward the needs of the national economy. Joint expeditions of Mongolian and Soviet scientists were organized to study the country’s flora and fauna, geography, and geology, and Soviet scientists helped train national scientific workers.

The 1950’s and 1960’s saw the development of branches of science dealing with agriculture. Zoological and botanical research by Mongolian scientists was aimed at increasing livestock productivity and improving breeds, treating and preventing animal diseases, efficiently using feed resources, and improving farming methods. An outstanding achievement was the development of a new breed of Orkhon sheep under the direction of T. Aiurzan, corresponding member of the Academy of Sciences of the MPR. This breed has a semi-fine fleece and is raised for meat and wool. Karakul sheep are being acclimatized in the Gobi regions. A new breed of goats is being developed for fleece by crossing local goats with Don goats from the USSR. Academician Ts. Toivgo’s studies of cattle have played a significant role in improving animal husbandry. Problems of camel breeding are also being studied. Productive strains of cereals, vegetables,and fruit adapted to the country’s severe climatic conditions have been developed by Kh. Zunduizhantsan, M. Ul’zii, and E. Shagdar, corresponding member of the Academy of Sciences of the MPR. Mongolian biologists are engaged in the study, classification, and systematization of Mongolia’s flora and fauna. Important works include the Index to the Plants of Central Mongolia, Aromatic Plants of the MPR, and Game Animals of the MPR and Their Protection.

During the 1960’s theoretical and practical research in chemistry and agricultural chemistry expanded. The Institute of Chemistry of the Academy of Sciences of the MPR has studied the distribution of trace elements in the soil, compiled cartograms showing the occurrence of these elements in a number of regions, and made recommendations for using trace element fertilizers in farming, and for adding vitamins to certain foodstuffs. Considerable geochemical and biochemical research has been undertaken. A notable contribution is the monograph Biochemistry of Food Plants of Mongolia.

Working closely with specialists from the COMECON countries, Mongolian geologists have discovered many deposits of various minerals and compiled geological and tectonic maps of the MPR. Mongolian geographers are studying permafrost and defining the country’s natural and economic zones. Works have been published on the physical geography of Mongolia (Sh. Tsegmid) and on economic geography (B. Gungadash). Hydrometeorological research is being conducted by a special scientific research institute and more than 60 meteorological, aerological, and hydrological stations, constituting the MPR’s hydrometeorological service.

Since 1956, Mongolian physicists have been working at the Joint Institute of Nuclear Research in Dubna. The Institute of Physics of the Academy of Sciences of the MPR, established in 1961, studies seismicity, magnetism, and the spread of radioactive fallout. Astronomical research includes observation of the sun’s corona and prominences, and artificial earth satellites are tracked. The Institute of Mathematics, founded in 1968, has a computer center and studies problems of theoretical and applied mathematics.

Among notable achievements in medicine are the development of scientific principles of combatting epidemic diseases and advances in the treatment of rheumatism and other diseases. Folk medicine and the properties of local medicinal plants are being studied, and preparations made from wild plants are used extensively in medical treatment.

I. I. POTEMKINA

Social sciences. PHILOSOPHY. After the formation of the Mongol state in 1206, shamanism, the hitherto unchallenged religion of the Mongol tribes, began to give way to Buddhism. The philosophical treatises of Buddhist monks began to reach Mongolia, and the first such Mongolian work, Loda Chzhaltsan’s Explanation of the Knowable, was written in the 13th century. By the 16th and 17th centuries, Lamaist Buddhism had become the official religion in the Mongol state. The work of the most important Mongolian philosophers—who wrote commentaries to Buddhist philosophical treatises—dates from this period. Robzhamba Sodnom Vanzhal was the author of a textbook on logic and dialectics called the Sun’s Ray. Agvan Dandar Lkharamba (of Alashan) offered his own interpretation of the problem of “alien animation” posed by the Indian logician Dharmakirti. Agvan Baldan analyzed various Indian philosophical schools and currents in his three-volume history of Indian philosophy, written in 1846 as a commentary to the History of Indian Philosophy by Gunchen Chzham’ian Shadp Dorchzhe, the great Tibetan scholar and philosopher of the late 17th and early 18th centuries. In the first half of the 18th century Chzhan-chzha Khu-tug-tu compiled a Tibetan-Mongolian dictionary of philosophical terms known as the Dictionary for Sages. Zhanzha Rol’bi Dorzhi wrote a two-volume work on the history of Indian philosophy, and one of Sakhar Lubsan Sul’tim’s main works was a commentary to the Theory of Thought by the Indian philosopher Asanga.

Under the influence of the October Revolution of 1917 in Russia, Marxist-Leninist ideas began to spread in Mongolia, becoming the ideological foundation of the Mongolian People’s Revolutionary Party. In their studies Mongolian philosophers and sociologists offer theoretical generalizations based on the experience of socialist construction in the MPR. Philosophers are trained by the department of Marxism-Leninism and philosophy of the D. Sukhe-Bator Higher Party School in Ulan Bator.

P. I. KHADALOV

HISTORY. The earliest example of Mongolian feudal historiography is the anonymous chronicle Mongolyn nuuts tobcho (Secret History), written at the earliest in 1240. The historical writings of the 14th to 16th centuries have not survived, but the events of this period were reflected in works dating from the 17th to 19th centuries, notably the anonymous Alton tobchi (The Golden Button), Sagan Setsen’s Erdeniin tobchi (The Jeweled Button), Rashipuntsug’s Bolor erikhe (The Crystal Beads), and Galdan’s Erdeniin erikhe (The Jeweled Beads). Biographies of Lamaist leaders and Mongolian translations of Tibetan and Chinese historical literature also appeared at this time. From the late 16th and early 17th centuries, when Lamaism became the dominant ideology, Mongolian feudal historiography developed under clerical influence. A critical, anti-Manchu tendency appeared in Mongolian historiography in the middle of the 19th century in the writings of Inzhinash. An 11-volume history of Mongolia, essentially continuing the tradition of feudal historiography, was written but not published under the feudal-theocratic monarchy from 1911 to 1919. There was a considerable body of historical literature in Tibetan by such scholars as Sh. Damdin.

Marxist-Leninist methodology became firmly established in Mongolian historiography after the victory of the people’s revolution in 1921. In the 1920’s and 1930’s the classics of Marxism-Leninism were translated into Mongolian; historical material was collected and historians were trained. Primary attention was devoted to the publication of sources and to archaeology, and the first secondary-school history textbooks were written. The works of the older generation of historians which appeared at this time—those of Kh. Maksarzhab, L. Dendeb, A. Amor, G. Navannamzhil—provided an objective account of Mongolian history, particularly for the period from 1911 to 1919. However, their work suffered from insufficient analysis and generalization. A notable exception was the collective work on the history of the Mongolian people’s revolution written in 1934 by Kh. Choibalsan, G. Demid, and D. Losol.

Several monographs and collective works on history were published in the 1940’s and 1950’s, including the one-volume History of the MPR, a joint work of Mongolian and Soviet scholars. This work, published in 1954, treats the history of the country from earliest times to the 1950’s. A second edition, in Russian, was published in Moscow in 1967. Marxist-Leninist methodology triumphed after a sharp struggle against the vestiges of feudalism and the influence of bourgeois and petit bourgeois ideology in historical research. During the 1960’s and 1970’s historical science entered a new stage. It assumed a greater role in the communist upbringing of the working people, drawing scientific generalizations from experience and revealing the laws of the history of the Mongolian people. The number of highly qualified historians, some trained in the USSR, increased; the scope of historical problems expanded; and the scientific and theoretical level of historical works rose.

Outstanding historical works of the late 1960’s include the basic three-volume History of the MPR (1966–70) and a synthesis of party history entitled Studies in the History of the MPRP (1967; Russian translation, 1971). Other importantstudies were B. Shirendyb’s works on Mongolia’s socioeconomic development at the turn of the century and on the people’s revolution and the formation of the MPR; Sh. Natsagdorzh’s works on the history of the arat movement and the history of Khalkha; B. Tudev’s work on the history of the Mongolian working class; and N. Ishzhamts’ work on the Mongolian people’s liberation struggle in the 18th century. Among the questions treated were the history of the Khitans, predecessors of the Mongols; the origin of the Mongol tribes; the role of Chinese merchants and moneylenders in Mongolia; the country’s foreign relations in the 19th and 20th centuries; and the history of Lamaism. Eminent historians include Kh. Perlee, D. Gongor, M. Sanzhadorzh, Sh. Sandag, and S. Purevzhav. Ts. Damdinsuren’s monograph on the historical roots of the epic about Geser Khan was published in 1957. The works of Mongol authors who wrote in Tibetan and of Mongolian feudal historgiography were studied by Sh. Bira. A wealth of archaeological material on the Paleolithic and Neolithic, the Bronze Age, and the early tribes and states on the territory of the MPR was gathered in the course of expeditions, particularly the Soviet-Mongolian historical-cultural expedition of 1969–71. This material was the basis for works on the ancient Turkic peoples (N. Ser-Odzhav), the history of shamanism (Ch. Dalai), and the life and economy of the Darkhats (Ch. Badamkhatan). Sources and documents on the country’s history, the revolution, and the building of socialism are being published.

The main centers for the study of history are the Institute of History of the Academy of Sciences of the MPR, established in 1961; the Institute of Party History under the Central Committee of the MPRP, founded in 1955; and the department of history of the Mongolian State University, organized in 1942. Works by Mongolian historians are published in Tuukhiin tsuvral, the yearbook of the Institute of History of the Academy of Sciences, issued since 1961, and the journals BNMAU-yn Shinzhlekh ukhaany akademiin medee, issued since 1961, and Namyn am’dral, published since 1923.

M. I. GOL’MAN

ECONOMICS. The economic thought of feudal Mongolia was reflected in annals, laws, and contemporary works on economics, which proclaimed the immutable economic prerogatives of the khans, noions, and other feudal lords and contained much information on the economy and life of the Mongols. Economic works discussing herding and giving advice on managing everyday affairs appeared in the 18th century. The most important of these works was To-Van’s Admonitions (1853). At the beginning of the 20th century, progressive leaders called for overcoming economic backwardness and argued the necessity of developing industry and agriculture.

The anti-imperialist, anti-feudal revolution of 1921 laid the foundation for the development of Marxist economic thought. Between the 1920’s and 1940’s Mongolian economists directed their efforts primarily toward working out concrete economic programs, economic legislation, and problems of long-range socioeconomic development. In 1934 a collective work was published by Kh. Choibalsan, D. Losol, and D. Demid, analyzing Mongolian economic conditions prior to the revolution and the popular government’s first economic measures in the postrevolutionary period. From the late 1950’s scientific economic studies were promoted by directives of party congresses and decisions of plenums of the Central Committee of the MPRP on economic questions. Between the 1950’s and the early 1970’s Mongolian economists studied the country’s economic history (B. Shirendyb, Sh. Natsagdorzh), socialist construction (N. Zhagvaral, U.Kambar, B. Gungaadash, P. Nergui), agricultural economics (D. Dugar, S. Zhadamba, D. Moebuu), the economics of industry, construction, and transport (D. Zagasbaldan, D. Maidar, Ch. Sereeter, Ts. Gurbadam), the formation and development of the Mongolian working class (B. Tudev), domestic and foreign trade (P. Luvsandorzh, M. Pelzhee), and finance (O. Tsend, B. Dolgorma).

The main centers of economic science are the Institute of Economics of the Academy of Sciences and Gosplan (State Planning Committee) of the MPR, the Higher Party School under the Central Committee of the MPRP, and the Mongolian State University. The economics journal Ediin zasgiin asuudal, the organ of the Central Committee of the MPRP, has been published since 1959. Economic material is also published in the journals Namyn am‘dral (since 1923), BNMA U-yn Shinzhlekh ukhaany akademiin medee (since 1961), and Shinzhlekh ukhaany am’dral (since 1935).

S. K. ROSHCHIN

JURISPRUDENCE. Mongolian legal scholars study problems relating to the organization and activity of the people’s khurals (S. Zhalan-aazhav, E. Avilmed) and other questions concerning the development of the socialist state. A leading authority on legal history is Sodovsuren. Textbooks on civil law and procedure have been published in Russian. Labor law has been extensively studied in connection with the preparation and adoption of the labor code in 1973, and problems of the law of agricultural associations are being examined. In criminal law and procedure Zh. Avkhia has written on crimes against the individual and R. Gunsen on crimes against socialist property. G. Sovd has publishedcourse on criminal law, and a textbook on criminal procedure has been written by Zh. Avkhia, B. Davaasambuu, and Ts. Buzhinlkham in collaboration with Soviet scholars.

Research in jurisprudence is conducted by the Division of Philosophy and Law of the Academy of Sciences of the MPR, the Institute of Philosophy, Sociology, and Law of the Academy of Sciences of the MPR, the Institute for the Study of the Causes and Prevention of Crime under the Procuracy of the MPR, and the law department of the Mongolian State University. The legal journals are Ardyn tor and Sotsialist khuul’es.

Scientific institutions. A system of scientific institutions was organized after the victory of the people’s revolution in 1921. The Scientific Committee was established in 1921 and renamed the Committee of Sciences of the MPR in 1929.At first the committee studied historical and philological problems, but from the late 1920’s it became increasingly active in scientific and economic research. In the 1930’s sectors for the study of national economic questions were organized within the committee, including offices of farming, livestock raising, and geology. In 1961 the committee was reorganized to form the Academy of Sciences of the MPR, the country’s main center for research in the social and natural sciences. In addition to the Academy of Sciences, more than 30 research institutions under various ministries and government departments conduct scientific work, including institutes of livestock raising and veterinary medicine,plant breeding and farming, and fodder and pastures (all under the Ministry of Agriculture), as well as institutes of pedagogy, medicine, and construction. Scientific work is coordinated by the State Committee on Science and Technology and by the Academy of Sciences of the MPR.

REFERENCES

Shirendev, B. “Mongol ornoo tal burees n’ tanin sudlakhyg khicheezh baina.” Shinzhlekh ukhaan am’dral, 1971, no. 6.
“Ard tymniig uilchlegch Shinzhlekh ukhaan 50 zhild.” Zaluuchuudyn unen, February 17, 1971.

In 1972 there were 12 central and 18 local newspapers and a number of magazines whose total circulation exceeded 1 million copies. The leading newspapers and magazines are published in Ulan Bator. The daily Unen (Truth), published since 1925 and with a circulation of 113,000 in 1975, is the organ of the Central Committee of the MPRP and the Council of Ministers of the MPR. The monthly magazine Namyn am’dral (Party Life), published since 1923 and withcirculation of 25,000 (1975), is the organ of the Central Committee of the MPRP. The newspaper Khudulmur (Labor), founded in 1930 and published three times weekly, is the organ of the Central Council of Trade Unions of the MPR (circulation in 1975, 60,000). Zaluchudyn unen (Young People’s Truth), a newspaper founded in 1924 and published three times weekly (circulation in 1975, 60,000), is the organ of the Central Committee of the Mongolian Revolutionary Youth League. The newspaper Novosti Mongolii (News of Mongolia) has been issued twice weekly since 1947. Its Russian-language edition had a circulation of 10,000 in 1975, and its Chinese edition, 1,000. Mongol uls (Mongolia),monthly illustrated magazine devoted to social and political affairs, literature, and the arts, has appeared since 1956 (circulation of Mongolian-language edition, 12,000 in 1975; Russian edition, 19,000; English edition, 1,000). The quarterly Mongolyn emegteichud (Mongolian Women), founded in 1925, had a circulation of 30,000 in 1975.

In 1957 a government telegraph agency, the Mongolian Telegraph Agency (MONTsAME), was established. The agency supplies the Mongolian press, radio, and television with information on foreign affairs and publishes a newspaper and information bulletins in English and French. Radio broadcasting, begun in 1934, is controlled by the State Committee for Information, Radio, and Television of the Council of Ministers of the MPR. There are two radio centers, one at Ulan Bator and the other at Ulegei. The radio center at Ulan Bator broadcasts in Mongolian on two programs (21 hours daily). Broadcasts in Russian, Chinese, English, French, and Kazakh are transmitted regularly (30 hours a week).

A television center went into operation in Ulan Bator in 1967. Since 1969 telecasts to Ulan Bator have been relayed by the Orbit space telecommunications station. Three television programs—a national program and two Orbit programs—are broadcast six days a week.

A. A. POZDNIAKOV

Mongolian folklore has a wealth of genres, including songs, epic songs, heroic legends, tales, iorols (good wishes), magtaals (eulogistic songs), surgaals (precepts), legends, riddles, proverbs, and sayings. Strong folkloric traditions account for the vitality of Mongolian epic literature, famous for the legend of Geser Khan and the folk epic Dzhangar (also found among the Kalmyks) about the flourishing land of Bumba and its hero and defender, Dzhangar. Epigraphsfrom the 12th and 13th centuries and the inscriptions on the cliffs of Khalkha Tsokto-taidzhi (1580–1637) attest to the great influence of folk songs and to the epic quality of Mongolian poetry. The work known as the Golden Horde Birch-bark Manuscript (early 14th century; Hermitage, Leningrad) provides examples of dialogue folk songs. The first known Mongolian written work, the Secret History (not earlier than 1240), by an anonymous author or group of authors, is both a historical and a literary work. The literature of the 13th and 14th centuries has survived only in fragmentary form in later works, chiefly 17th-century chronicles. These chronicles contain the famous Legend of Argasun-khuurch, Conversation of the Orphan Boy With the Nine Knights of Genghis Khan, and Legend of the Rout of the Three Hundred Taidzhiuts. Among later works incorporated in the chronicles are the 15th-century Lament of Togontemur and Legendof the Wise Mandukhai, The Khan’s Wife and the 16th-century Tale of Ubashi-khun-taizh. Three 17th-century chronicles are outstanding for their literary qualities: the anonymous Yellow Story, Lubsan Dandzan’s Golden Legend, and Sagan Setsen’s Jeweled Button.

A notable feature of original 19th-century Mongolian literature is the diversity of its genres. Inzhinash (1837–92) wrote the historical trilogy The Blue Chronicle and the novel of everyday life The One-story Pavilion. Khuul’ch Sandag wasmaster of folk satire in verse. Outstanding poets included D. Ravzhaa (1803–56), Gulransa (1820–51), Ishdanzanvanzhil (1854–1907), Luvsandondov (1854–1909), Khishigbat (1849–1916), and Gamal (1871–1916). Genden Meeren (1820–82) wrote the allegorical tale Dog, Cat, and Mouse. These works are marked by democratic anti-feudal tendencies.

Literature in translation flourished from the time of the Yuan empire, which lasted from the 1270’s to 1368. Among the translated works were Santideva’s narrative poem Kalila and Dimna, an Iranian version of the Pancatantra; One Hundred Thousand Songs by the Tibetan hermit poet Milaraiba, and the collection of aphorisms Subashita. The 108-volume Kanjur, containing not only scholarly treatises but also works on linguistics, versification, and rhetoric, and the 225-volume Tanjur, a commentary to the Kanjur, were translated for several centuries and printed in the 18th century. The afterwords to some translations name the translator. Choidzhi-odser, for example, wrote the verse afterword and commentary to his translation of the Bodhicaryavatara (14th century). Many tales and stories of Indian origin circulated widely, such as the Tales of the Vampire, the Pancatantra stories, and the legend of King Vikramaditya. Chinesenovels were transmitted orally. Especially popular were Shih Nai-an’s Water Margin, Lo Kuan-chung’s Three Kingdoms, Wu Ch’eng-en’s Monkey, and Ts’ao Hsiieh-ch’in’s Dream in the Red Chamber, and the short stories of P’u Sungling.

After the People’s Revolution of 1921 the young literature of Mongolia, drawing upon folklore, absorbed the best traditions of the literary heritage and expanded its ties with progressive world literature, primarily with classical Russian and Soviet literature. New genres developed, among which drama held a special place. A group of revolutionary writers banded together in 1929, forming the Mongolian Association of Revolutionary Writers in 1930. The new literature was inaugurated with the revolutionary songs Shive Kiakhta and Red Banner and with amateur plays on topical subjects (Sando amban’ 1922). Outstanding plays were written by D. Natsagdorzh (1906–37), one of the founders of contemporary Mongolian literature, and the talented writers S. Buiannemekh (1902–37), M. ladamsuren (1902–37), Sh. Aiusha (1904–37), and D. Namdag (born 1911). The first Mongolian novellas were published in the 1920’s, notably Lake Tolbo by Ulaan-otorch (pseudonym of Ts. Dambadorzh, 1900–34) and The Rejected Maiden by Ts. Damdinsuren (born 1908). Most of Natsagdorzh’s best works were written in the 1930’s—poetry, stories, lyrical miniatures, several plays, including the first national musical drama, Three Sorrowing Hills, and the first chapters of the story The Unthreaded Pearl. Damdinsuren wrote verses and the narrative poem My Gray-haired Mother (1934), expressing love for his mother and devotion to his homeland. Although they were profoundly national writers who continued folk traditions, Natsagdorzh and Damdinsuren were influenced by progressive foreign literature. Their works represent the first successes of socialist realism in Mongolian literature.

Many new poets and prose writers emerged in the 1940’s and 1950’s. The rout of Japanese forces near the Khalkhin-Gol River in 1939, the Great Patriotic War of the Soviet Union (1941–45), and the MPR’s participation in the defeat ofthe Kwantung Army in the autumn of 1945 were portrayed in many works, and Mongolian-Soviet friendship became a dominant theme. Solidarity with the Soviet people was a central motif in the works of S. Dashdendev (born 1912), D. Tsevegmed (born 1915), Ch. Lkhamsuren (born 1917), P. Khorloo (born 1917), and D. Tarva (born 1923). National drama developed, and Mongolia’s past was evoked in the plays of Namdag, Ts. Tsedenzhav (born 1913), and B. Baast(born 1921). Folk plays were written by Ch. Oidov (1917–63) and plays on contemporary themes by D. Sengee (1916–59), E. Oiuun (born 1918), Ch. Lodoidamba (1917–70), and L. Vangan (1920–68). Sengee is also known for his many fine verses, songs, and narrative poems and his story “Aiuush” (1947) about a hero of the MPR.

A significant achievement of the 1950’s and 1960’s was the development of the novel, supplanting poetry, as the dominant genre. B. Rinchen (born 1905) and Lodoidamba wrote the first Mongolian novels. Mongolian society of the late 19th and first half of the 20th centuries is portrayed in Rinchen’s novel Dawn on the Steppe (books 1–3, 1951–55). Lodoidamba’s novel In the Altai (1949) depicts a geological expedition and the molding of the new man. Lodoidamba’s most popular novel, Transparent Tamir (books 1–2, 1962–67), is a vast, multilevel work portraying the people’s revolution of 1921 and the lives of the toilers of Mongolia. Other novels dealing with the revolution are Troubled Years by Namdag, Grief and Happiness by Ts. Ulambaiar (born 1911), and Red Sun by Dashdendev. Outstanding novelists today are Zh. Purev (born 1921), L. Tudev (born 1935), and S. Dashdoorov (born 1935). The central theme in Tudev’s novels is socialist Mongolia and the passionate desire to create a new life (Mountain Stream, 1960; Migration, 1964).

The novella and short-story genres continue to develop. In Baast’s collections of short stories contemporary problems are intertwined with themes from the history of the revolution. The stories of M. Gaadamba (born 1924) deal with moral questions. The women writers Oiuun and S. Udval (born 1921) portray the lives of Mongolian women. Udval is best known for her short-story collection We Will Meet You (1965). The novellas of D. Miatmar (born 1933)— We and the Earth(1965), The Miller (1966), and The Miller’s Daughter (1966)—are imbued with humanitarian ideas. Ethical and moral problems are explored in Damdinsuren’s short-story collection Strange Wedding (1966). S. Erdene (born 1929) is a master of the psychological, lyrical short story. His best works are the short-story collection Dust From Under the Hooves (1964) and the novellas Year of the Blue Mouse (1970) and Grass Beneath the Snow (1971). The stories and novellas of the 1960’s and early 1970’s are devoted to actual conflicts and goals and portray heroes united by socialist ideas.

Among outstanding contemporary poets are Ts. Gaitav (born 1929), the author of the narrative poems Lenin Is With Us (1963), Karl Marx (1964), Sukhe-Bator (1967), and Friedrich Engels (1973); B. lavuukhulan (born 1929), a master oflyric and civic poetry; and Ch. Chimid (born 1927), a poet, prose writer, and playwright. Other noteworthy poets include D. Purevdorzh (born 1933), Sh. Surenzhav (born 1938), P. Purevsuren (born 1939), Sh. Dulma (born 1934), and M. Tsedendorzh (born 1932).

In the 1970’s many foreign works were translated into Mongolian. The works of contemporary writers, while preserving national traits, attest to the influence of progressive world literature.

The Union of Writers of the MPR regulates literary life; five congresses of Mongolian writers have been held. The Union of Writers publishes the journal Tsog (since 1944), the newspaper Utga zokhiol urlag (since 1955), and the literary miscellany Collection of Inspired Words (since 1929). The writings of young people are published in the yearbook Snowdrop.

REFERENCES

Vladimirtsov, B. “Mongol’skaia literatura.” In the collection Literatura Vostoka, issue 2. Petrograd, 1920.
Mongolo-oiratskii geroicheskii epos. Petrograd-Moscow, 1923.
Gerasimovich, L. K. Literatura Mongol’skoi Narodnoi Respubliki 1921–1964 godov. [Leningrad] 1965.
Mikhailov, G. I. Literaturnoe nasledstvo mongolov. Moscow, 1969.
Mikhailov, G., and K. latskovskaia. Mongol’skaia literatura. Moscow, 1969.
Shastina, N. P. “Obraz Chingiskhana v srednevekovoi literature mongolov.” In the collection Tataro-mongoly v Azii i Evrope. Moscow, 1970.
Shastina, N. P. “Povest’ o spore mal’chika-siroty s deviat’iu vitiaziami Chingisa.” In the collection Strany i narody Vostoka, issue 11. Moscow, 1971.
Kara, D. Knigi mongol’skikh kochevnikov. Moscow, 1972.
Voprosy literatury, 1973, no. 12. (Issue devoted to the literature of the MPR.)
Luhsan, Danzan. Altai tobchi (The Golden Tale). Introduction, commentary, and appendixes by N. P. Shastina. Moscow, 1973. (Translated from Mongolian.)
Molodye poety Mongolii (collection). Introductory article by K. latskovskaia. Moscow, 1973. (Translated from Mongolian.)
Pesni aratov. Iz mongol’skoi narodnoi poezii. Compiled by G. Mikhailov and translated by N. Grebnev. Moscow, 1973.

K. N. IATSKOVSKAIA

The earliest works of art found in Mongolia, dating from the early Bronze Age, include depictions of animals engraved or painted on rock and copper and bronze knives decorated with pictures of animals, at first lifelike and later stylized. From the beginning of the Iron Age stylized figures of animals (such as running deer), in the Scythian animal style appear on bronze articles and “deer stones” (grave pillars or slabs). Imported and locally made utensils, fabrics, felt rugs,and decorated harnesses dating from the late first century B.C. and early first century A.D. have been found in the burial mounds of the Hun aristocracy in Noin-Ula. On metal articles, fanciful figures of wild animals in a refined animal style are frequently accompanied by insets of stones or colored paste. Hun cities had a square layout and were enclosed by earthen ramparts. They included artisan quarters, the palaces of rulers, and dwellings.

During the ascendancy of the Turkic khanate in the sixth to eighth centuries, handicrafts developed. Harnesses and weapons were covered with designs in which floral elements predominated. Memorial sculpture, represented by malestone figures at graves and stelae on tortoise-shaped bases, became widespread. Realistic depictions, such as the head of the statue of Kiul’-Tegin, existed alongside stylized representations, chiefly of animals, exemplified by the engravings on the grave slab of Kiul’-Tegin. Remains from the time of the Uighur khanate (745–840) include the ruins of the capital, Ordu-Balyk, later called Khara-Balgas, which had a regular layout, defensive structures, houses, and temples. Also dating from this period are reliefs on stone stelae and ceramics with stamped patterns.

Under the Khitan, from the tenth to 12th centuries, many cities were built. The cities generally had a square layout and were surrounded by moats and earthen ramparts. They were dissected by one or more streets lined with administrative buildings, temples, and homes; yurts and tents stood in the areas that were not built up. Excavations of the city of Bars-Khot I (tenth to 12th centuries) have uncovered the remains of a Buddhist temple and pagodas,reflecting both local traditions and Chinese influence, altars, and clay figures of divinities and animals. The ruins of the palace of Khan Ugedei and the heathen temples uncovered at Karakorum date from the time of the formation of the Mongolian feudal state and the rise of the Mongolian feudal empire in the late 12th and first half of the 13th centuries.

Between the 16th and the early 20th centuries the felt yurt with a wooden frame was the main type of dwelling in the Mongolian khanates and principalities. With the spread of Lamaism from the late 16th century many monasteries and temples were erected. Religious buildings made of wood appeared—frame structures with plank roofs that resembled yurts. Brick religious structures based on Chinese models and stone buildings of the Tibetan type were also erected. Oustanding examples of such architecture may be found in the monasteries of Erdenidzu and Amur-Baiaskhulantukhite. “Mixed” temples, combining Mongolian and Chinese, Tibetan and Chinese, or Tibetan and Mongolian features, have been preserved in the monasteries of Da-Khure and Gandan in Ulan Bator. Distinctive memorial structures, called suburgans, were developed, exemplified in the Bodisuburgan in Erdenidzu.

Painting of the 16th through early 20th centuries is represented by Buddhist compositions executed in gouache pigments on canvas and by wall paintings on dry plaster with engraved outlines. The influence of Tibetan, Chinese, and Nepalese painting is reflected in the strictly canonical composition, delicate drawing, and vivid colors of Mongolian art. The basic materials used in temple sculpture were clay, wood, and papier-mache, although the largest statues of deities and lamas were cast in bronze, brightly painted, and gilded. An important sculptor of the second half of the 17th century was Dzanabazar. In the late 19th century secular painting developed, including portraits, pictures of Mongolian everyday life and landscapes, and satirical works (Sharav).

In applied art, utensils and clothing were adorned with animal, floral (since the 13th century), and geometric designs. Embroidery and applique work on clothing and leather footwear was distinguished by a combination of contrasting colors. By the mid-17th century embossed and engraved bronze and silver articles of high quality were produced. Other important crafts were woodcarving (animal figurines and ornamental boxes) and the production of papier-mache masks of deities.

With the formation of the Mongolian People’s Republic in 1924, the country embarked on civil and industrial construction, the reconstruction of old cities (Ulan Bator), and the building of new cities and settlements with regular layouts (Darkhan, Nalaikha, and Sain-Shand) with the aid of the USSR. The centers of aimaks and somons (districts), such as Choibalsan and Tsetserleg, were built on the sites of monasteries. Public buildings of the 1920’s and 1930’s show the influence of Soviet constructivism. During the 1940’s and early 1950’s the facades of public buildings, for example, the university in Ulan Bator (1943–46), were decorated with porticoes, colonnades, and indigenous designs. Since the mid-1950’s buildings adapted to local climatic conditions have taken on clarity of spatial composition, notably the Shilen Baishin Exposition Pavilion built in Ulan Bator in 1964. Industrial methods of construction have been use dextensively in the 1960’s and early 1970’s.

In the 1920’s, the painter Sharav and later his student Manibadar transformed Mongolian art, creating works on contemporary subjects and often employing chiaroscuro and linear perspective. Since the early 1950’s the range of subjects treated by such artists as ladamsuren, Sengetsokhio, and Damdinsuren has broadened, and national painting techniques have been successfully combined with European styles. The first oil paintings were executed by Choidog, Tsevegzhav, Gava, Tsultem, and Amgalan. Graphic art (S. Natsagdorzh, Sosoi) and sculpture (Choimbol, Zhamba) have flourished since the mid-1950’s. In applied art the production of porcelain and various kinds of ceramics and bonecarving are developing alongside traditional crafts.

REFERENCES

Zhivopis’ Mongol’skoi Narodnoi Respubliki (album). Moscow, 1960.
Shchepetil’nikov, N. M. Arkhitektura Mongolii. Moscow, 1960. (Bibliography.)
Sovremennoe iskusstvo Mongolii (catalog). Moscow, 1968.
Maidar, D. Arkhitektura i gradostroitel’stvo Mongolii. Moscow, 1972.

L. A. EVTIUKHOVA (ancient art), N. M. SHCHEPETIL’NIKOV (architecture of the 13th to 20th centuries), and O. N. GLUKHAREVA (fine and applied art of the 13th to 20th centuries)

The ancient traditions of Mongolian musical culture were passed on by the khurs (khur players), uligers (bards), duus (soloists), and khogzhims (instrumentalists). Mongolian folk music, based on the pentatonic scale, consists of songs,epics, and instrumental music. Folk songs are single-voiced, and there are two kinds: the slow “long” songs, called urt-duu, which have a large range and rich ornamentation, and the “short” songs, called bogino-duu, which are simpler in rhythm and composition. Songs are sung to the accompaniment of folk instruments, the most important of which are the limbe (a kind of flute), the morin khur and khuchir (bowed stringed instruments), the shanza (played with a plectrum),and the eochina (cymbals).

The first Mongolian revolutionary song, “Shive Kiakhta” (The Capture of Kiakhta Fortress), was written in 1921. It was followed by “Red Banner,” “Song of the Airplane,” and other songs by outstanding composers and bards; notably Ishdulam’s “Lenin Our Teacher” and “The Song of Lenin and Sukhe-Bator,” U. Luvsan-khurchi’s “Marx and Lenin,” and M. Dugarzhav’s “Song of Sukhe-Bator.” Professional music originated and developed under the people’s government.The first musical dramas arose out of the dialogue songs of the bards. In 1942 the State Musical-Dramatic Theater was founded in Ulan Bator for staging musical dramas. The first symphony orchestra, formed in 1945, became the State Symphony Orchestra in 1950. In the 1940’s and 1950’s young composers, singers, conductors, and chorus masters received their musical education in the USSR and other socialist countries.

In 1963 a group of performers from the State Musical-Dramatic Theater formed the State Opera and Ballet Theater, which during the 1960’s and 1970’s staged many European classical and contemporary operas and ballets, as well as works by the Mongolian composers S. Gonchiksumla, B. Damdinsuren, L. Murdorzh, D. Luvsansharav, and E. Choidog. The theater’s conductor is Zh. Chulun and its ballet master is B. Zham’iandagva. The People’s Song and Dance Ensemble of the MPR, founded in 1950, has performed many times in the USSR and in European, Asian, and African countries. The State Symphony Orchestra performs classical and contemporary symphonic works and encourages new works by Mongolian composers. The Union of Composers was founded in 1964, and the State Philharmonic Society was organized in 1972. A school of music and choreography has been established in Ulan Bator.

REFERENCES

Smirnov, B. F. Muzykal’naia kul’tura Mongolii. Moscow, 1963.
Smirnov, B. F. Mongol’skaia narodnaia muzyka. Moscow, 1971.
Kondrat’ev, S. A. Muzyka mongol’skogo eposa i pesen. Moscow, 1970.

S. N. RIAUZOV

Theatrical art in Mongolia dates from ancient times. The Mongols’ dances, particularly the bieleg dance, and rituals associated with marriage, birth, and harvest festivals contained elements of dramatization. Later these elements were incorporated into the tsam, a religious play that arose in the 17th century with the spread of Buddhism in Central Asia, and into the secular court theater. Princes maintained court theaters, where talented enserfed arats were taught to sing, dance, and play musical instruments. Court plays were presented annually, and puppet performances were given in the streets during New Year celebrations. The first public play, The Moon Cuckoo, was presented in the 1830’s.

After the triumph of the people’s revolution and the proclamation of the people’s republic in 1924, amateur theater groups flourished. Musical-dramatic groups that later developed into professional theaters were organized in Ulan Bator in the 1920’s. Plays were staged in the tradition of folk presentations. A drama studio was founded in Ulan Bator in 1930 and reorganized as the Central Mongolian State Theater in 1931; in 1942 it was renamed the State Musical-Dramatic Theater. The theater’s repertoire includes plays by Mongolian playwrights (D. Natsagdorzh, S. Buiannemekh, Sh. Aiuush, M. ladamsuren, D. Namdag, Ch. Oidov, and Ch. Chimid), Soviet plays and Russian and European classics. The Mongolian theater has assimilated the experience of the Soviet theatrical school. In 1963 the State Musical-Dramatic Theater was divided into the State Opera and Ballet Theater and the D. Natsagdorzh State Drama Theater. The Central Children’s Theater opened in Ulan Bator in 1950, and the Puppet Theater was founded in 1948. There are musical-dramatic theaters in various aimak centers, including Ulegei, Kobdo, Ulangom, and Choibalsan.

REFERENCE

Uvarova, G. Sovremennyi mongol’skii teatr, 1921–1945. Moscow-Leningrad, 1947.

Circus. Indian fakirs performed at the courts of the country’s spiritual rulers from the 16th century. Itinerant Chinese circuses displayed their art in the cities, at first in the streets and later in special open areas. During folk holidays competitions were held in horsemanship, wrestling, and archery. A professional Mongolian circus was established after the proclamation of people’s power in Outer Mongolia. A sports group was organized in Ulan Bator in 1934, several members of which studied circus arts in the USSR from 1936 to 1939 (Radnabazar, Gombo, and Natsag). Upon returning to the MPR, they became the organizers and leading artists of the first professional Mongolian circus. A building for circus performances opened in 1941. Other Mongolian circus artists noted for their many-faceted talent are Danzan and Damdinsuren, Maiia Norovtseren, Sandag, Tsrendulam Minzhin, Erdenetsetseg, Kh. Tsendaiush, and Ts.Tserendorzh. Directors include Zh. Damdisuren, Niamdash, Ichinnorov, and Natsag, who offers not only individual numbers but also extended presentations based on a single theme and children’s plays. The Mongolian circus has been greatly assisted by Soviet circus artists and the State School of Circus and Vaudeville Art. The new building of the Mongolian State Circus was opened in Ulan Bator in 1971. Mongolian performers participated in the Druzhba (Friendship)Program, together with circus artists from Bulgaria, Hungary, the German Democratic Republic, the Democratic People’s Republic of Korea, Poland, Rumania, the USSR, and Czechoslovakia.

A. IA. SHNEER

The Mongolkino film studio, established in Ulan Bator in 1935, initially released documentaries, producing its first feature film in 1937. The development of a national cinematic art and the training of film artists were greatly aided by the work of Soviet cinematographers in Mongolia and by the participation of Mongolian actors and cameramen in producing such Soviet films as Son of Mongolia (1935, director I. Z. Trauberg), His Name Is Sukhe-Bator (1942, directors A. G.Zarkhi and I. E. Kheifits), and Steppe Heroes (1945, director lu. V. Tarich).

An important Mongolian film is Two Herdsmen (1955), directed by Ts. Zandra. The outstanding films What Hinders Us (1956), If Only I Had a Horse! (1959), The Call of the Heart (1966), and Transparent Tamir (1970, based on the novel by G. Lodoidamba) were directed by R. Dorzhpalam, the last of these in collaboration with Ch. Dolgosuren. Outcome (1968), directed by A. I. Bobrovskii and Zh. Buntar, was produced jointly with the USSR. Envoy of the People (1959), Flood (1966),