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The Rise of Thatcherism in Britain, 1979-83: Part One.   Leave a comment

Margaret’s Marvellous Medicine:

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Ten years ago, nearly thirty years after Mrs Thatcher’s first general election as Tory leader, Andrew Marr wrote:

Margaret Thatcher … was shrewd, manipulative and bold, verging on the reckless. She was also extremely lucky. Had Labour not been busy disembowelling itself and had a corrupt, desperate dictatorship in South America not taken a nationalistic gamble with some island sheep-farmers, her government would probably have been destroyed after a single term. Had the majority in her cabinet who disagreed with her about the economy  been prepared to say boo to a goose, she might have been forced out even before that. In either case, her principles, ‘Thatcherism’, would be a half-forgotten doctrine, mumbled about by historians instead of being the single most potent medicine ever spooned down the gagging post-war British.

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The one economic medicine so bitter that no minister in the seventies had thought of trying it – mass unemployment – was soon uncorked and poured onto the spoon. Inflation, not unemployment, was seen as public enemy number one, and harsh measures seemed justified. Indeed, as wage-rises were seen as the as the main source of inflation, heavy unemployment, it was sometimes argued, would weaken trade unions and was a price worth paying. An economic squeeze was introduced, involving heavy tax increases and a reduction in public borrowing to deflate the economy, thus reducing demand and employment. In the 1980s, two million manufacturing jobs disappeared. The socially corrosive effects of mass unemployment were manifested nationwide in the inner-city rioting which broke out in 1981. The post-war consensus was well and truly broken. After his defeat in the General Election of 1979, James Callaghan stumbled on as Labour leader until October 1980 after which Denis Healey fought a desperate rearguard action against the left, as his party did its best to commit suicide in public. What exactly was ‘the left’ and how was it composed?

Labour’s ‘Disembowelment’:

By the late 1970s, the Communist Party of Great Britain had almost collapsed. What was left of it had become ‘Eurocommunist’, like the parties in France and elsewhere had become following the crushing of the Prague Spring in 1968. The world’s first elected Marxist leader, Salvador Allende had been deposed in a coup in 1973 and thousands of his supporters became refugees in Britain. Where I lived in 1979-80, Swansea, there was a community of about fifty families, many of them studying at the University. For many of them, Castro’s Cuba was still a beacon of hope, and there were other Marxist movements in Nicaragua and El Salvador which re-focused the outlook of the ‘broad left’ in Britain. But there was widespread disillusionment with the Soviet system to which the CPGB had previously pledged its undying and largely uncritical obedience. The final nails in the coffin were driven in by the Soviet invasion of Afghanistan in late 1979, and the crushing of ‘Solidarity’ in Poland the following year. Further to the left were a bewildering number of Trotskyist and Maoist groups, all hostile to the Soviet Union, all claiming to be the true party of Lenin, all denouncing one another over ideological and tactical detail. They tended to be dour and puritanical, though the Socialist Workers’ Party attracted a significant among students following through their setting up of the Anti-Nazi League.

The Militant Tendency had descended from earlier groups which had first organised in Britain in the forties. ‘Militant’ caused a huge convulsion in the Labour Party from the early to mid-eighties. Harold Wilson was the first Labour leader to complain a lot about ‘Trots’ trying to take the party over, but in the seventies, he was largely ignored and Militant was allowed to build up strong local bases, particularly in Liverpool, but also in other traditional Labour strongholds in the Midlands which had been very much in ‘the mainstream’ of the Party, like Coventry, where it had taken control of the City Council as early as 1937, and had continually returned high-profile MPs such as Richard Crossman and Maurice Edelman after 1945. The SWP, supporting strikes and campaigning against racism and other ‘single issues’, sold their distinctive newspaper on the streets and their clenched fist logo and dramatic slogans appear in the background to countless industrial and political marches, pickets and marches. In South Wales in 1980, they organised ‘the people’s march for jobs’, a 1930s-style ‘hunger march’. By this time, mass unemployment had already arrived in Britain, especially among young people who had just left school and, as ever, the SWP seized their opportunity. Beyond Militant and the SWP, other far-left groups inside and outside the Labour Party would achieve brief notoriety because they were supported by a famous actress, such as Vanessa Redgrave of the Revolutionary Workers’ Party, or through influence in a local party or borough. Eventually, the ‘loony left’ would come to the boil, enjoying enough support, particularly in London, to shred Labour’s credibility.

In the late seventies and early eighties, however, the influence of ‘hard left’ socialists within the party was far more significant than those working for secretive Marxist parties. Like those on the right, including Callaghan by 1979, they believed the old consensus politics was failing. Some of their thinking was also shared by the Tory right – they were hostile to the European Community, opposed to Welsh and Scottish nationalism, and hostile to the Anglo-American alliance. But that was where the similarities ended. The Labour left wanted to deal with world economic chaos by pulling up the drawbridge, imposing strict controls on what was imported and taking control of major industries, as well as of ‘the City’. The left thought that ‘Planning’ was too weak, and therefore that it should be dramatically expanded. Any extreme political view tends to develop a conspiracy theory. The Labour left believed that Wilson, Callaghan and Healey had been captured by international capitalism. So the ‘siege economy’ and the Alternative Economic Strategy became the main shibboleths of the left, and Tony Benn became the leader of Labour’s peasants’ revolt. He was on the side of strikers who had brought much of the country to a halt in 1979 and Arthur Scargill, elected leader of the NUM soon after, told Benn that he could be the next Labour leader himself.

But within five years, both the NUM and their fellow unions would lose almost half their membership and any political influence they had briefly enjoyed. The ‘high-water’ mark for the left was reached when Benn himself came within a hair’s breadth of winning the deputy leadership against Denis Healey, during the middle of a vicious and deeply damaging Labour civil war. These were the turbulent years of ‘Bennism’ within the party, long before he became a kind of revered national grandfather with a white beard to go with his pipe. During his bid to become deputy, I heard him speak to a packed and transfixed audience at the Brangwyn Hall in Swansea in 1980, careful and convincing in his critique of NATO, nuclear weapons and market capitalism, if not in his advocacy of the Alternative Economic Strategy. In the NUS, David Aaronovitch spoke in favour of the AES in a debate in Blackpool on the economy which he admitted afterwards had disappointed him for its lack of new thinking. Speaking to the NUS Wales Conference a few weeks later on the same issue, I adapted a headline from The Guardian:

When England catches a cold, Wales gets influenza: When England gets influenza, Wales develops pneumonia.

Wales: A View from the Abyss:

In 1979-80, Wales was in need of a stronger and better alternative medicine than could be provided by old-fashioned Keynesianism.

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Above: The UCMC (NUS Wales) Executive at the Autumn 1979 Conference

in Llandrindod Wells (the author is in the centre right).

In April 1979, just before the general election, I was elected ‘Cadeirydd’ (‘Chairholder’) of the National Union of Students in Wales (UCMC), working full-time from an office in Swansea. A month later, I began to wish I had declined the nomination, as an abyss seemed to open up below me. In the General Election, Wales located itself firmly within The South of Britain. At a time of heavy swings towards the Conservatives elsewhere, the heaviest swing of all, outside London, was in Wales. The Tory tide swept irresistibly through rural west Wales in particular. It was the real force which unseated the veteran Plaid Cymru President, Gwynfor Evans, in Carmarthen, to Labour’s benefit. The Tories took Brecon and Radnor, Montgomery and Anglesey, the last with a swing of twelve per cent. Apart from the three-way marginal of Carmarthen, Labour was driven back into the valleys of south Wales, though even there its massive majorities were significantly eaten into. Nevertheless, Labour remained by far the biggest party in Wales, with twenty-one seats out of thirty-six and forty-seven per cent of the votes. But the Conservatives, with eleven seats and thirty-two per cent, had reached a high point they had last held fifty years before. They swept through non-industrial Wales, obliterating political landmarks which had been familiar for generations. For Labour, there was a whiff of 1931 in the air and the elimination of Welsh peculiarities strongly suggested an integration into Britain more total than anything yet experienced.

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One paradoxical effect of this abrupt reversal of two hundred years of history was the isolation of the Welsh intelligentsia from its people. In this generation, in sharp contrast to the last, creative writers in Welsh and in English started to draw together. Professor Gwyn Williams (above), my mentor at University College Cardiff, was one of those who articulated English-speaking Wales within national and international contexts, and his work was lauded equally widely. As younger Welsh writers began to move out of the kind of universe which the work of the Saunders Lewis school of Welsh-language writers, younger writers in English (‘sons of the miners’) started to adopt a more firmly nationalist position. In general, the younger Anglo-Welsh poets avoided the sort of polemic which assumed a Welsh national identity. As Tony Curtis wrote in 1986, there was no unquestionable Wales, rather they must work from the immediate context, the known. Emyr Humphries wrote of:

… the sense of disorientation prevailing among the majority who have been deprived of the language and the opportunity of inheriting the history and traditions that go with it.

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John Ormond’s My Grandfather and his Apple-tree is the most successful of “character” poems. In concentrating on the life of one man the poet summarised the whole broad sweep of social change in South Wales from a predominantly rural economy to the accelerating expansion of industrial communities in the coal valleys that created a “Klondike” in Wales. John Ormond’s poem works effectively at several levels: as an historical poem; as a family remembrance it is an allegorical treatment of the life of a man as a social, economic and religious animal; the whole is a brilliantly sustained metaphor with a strong narrative structure. Ormond’s reputation by the time he was in his fifties in 1979 was notable, as was his influence on younger poets. One of these, Gillian Clarke, had first published in 1970, and by 1979 was established as a leading Welsh poet following the publication of her first full-length collection, The Sundial, which became the most successful book of poetry from a Welsh publisher. Living in suburban Cardiff, she was spiritually inhabiting a more rural, Welsh-speaking world to the west. In the seventies, the concern for voicing Welsh issues and proclaiming a specific Welsh identity provided a receptive ground for Gillian Clarke’s growth as a writer. In addition to poetry, major efforts went into drama and a whole range of arts; twin academies and a writers’ association came into being, and the Welsh Arts Council became more active. One of these miners’ sons, Dai Smith was critical of what he called …

… the production of Wales that was proceeding apace in the Cymricising suburbs of Cardiff, in academic and journalistic circles on the subsidised pages of a Welsh-language press and on the air-waves had no real need to take account of those who did not fit into the picture.

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The votes of 1979 dramatically registered the end of the epoch of the ‘old’ Welsh intelligentsia. While the ideologies of technical, managerial and administrative leaders remained opaque and without any specific Welsh identity, the most visible and creative elders of educated opinion among the Welsh had been rejected by their people. The task of transmitting a fresh, iconoclastic reappraisal of Wales to the Welsh fell to historians like Gwyn A. Williams, Dai Smith, Kenneth O. Morgan and D. Hywel Davies, among others. I was fortunate enough to be an apprentice in this task, though more concerned, like my fellow-researcher William D. Jones, with the history of the Welsh outside Wales and their images of the home country. As Tony Curtis observed:

Wales is not what we assumed it to be . Simplistic assumptions of “national pride”, a self-regarding “national” identity, are not to be allowed to go unquestioned… In the contemporary context writers face a harder task than even those raised by the ferment of the language campaign and the Devolution Vote, issues which served to focus much recent writing and to justify its polemic.

Almost Immediately Wales was fully exposed to the Conservative crusade and the radically restructuring of an increasingly multinational capitalism in Britain. The Welsh working population reached a peak in 1979, when 1,002,000 people were at work, fifty-five per cent of them in the service sector and forty-two per cent of them women in the core industries. The run-down of the coal industry continued and was followed by a sharp reduction in steel. Between June 1980 and June 1982, the official working population fell by no fewer than 106,000. The most catastrophic losses were in steel which lost half its workers and plummeted to 38,000. Public administration, however, lost fewer, around three thousand, while a whole range of services in insurance, banking, entertainment and educational and medical services actually gained over four thousand workers. In consequence, more men than women lost jobs at first, particularly in 1980-81, though much women’s work was part-time. During 1982 unemployment was heavier among women, but the overall result, in terms of number, was by June 1983 to increase the proportion of women at work within the central areas of the economy to forty-five per cent. By that time, the official working population of Wales had fallen to 882,000, its lowest level in the century. There was a high level of unemployment and particularly serious was the wasting of a whole generation of young people.

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The entire Welsh working population was beginning to take on the character of an informal, casual, unstructured labour force, an intimation of what was going to become a general experience in Britain to come. In the mid-1980s, Dai Smith commented that,

The crisis that would in the 1980s affect the vast majority of Welsh people was an economic, social and political crisis. … The ‘Condition of Wales Question’ is not for most of the Welsh about Welshness at all, it is about unemployment and jobs, about bad architecture, about bureaucracy and political participation, about dead-ends and opportunities. But nothing in Wales is subsidized more than ‘culture’. 

The Wales TUC was weakened and losing both numbers and funds, seemingly incapable of responding to the crisis. In reality, its autonomy was strictly limited in any case. Out of an income of thirty-three thousand pounds in 1980, nearly twenty thousand was a grant from the British TUC. In that year, its affiliated membership totalled over 580,000, nearly sixty per cent of the working population. But the response to the evident transformation of the working population varied among the unions, with NUPE being the most rapid and adaptable. Overall, the organised workers’ movement seemed encased in a perception of a ‘working class’ which had become a myth. The People’s March for Jobs and other demonstrations were not as significant in Wales as elsewhere in Britain, despite being led by veteran miners’ leader, Will Paynter, for part of the way through south Wales. But in 1982, the South Wales NUM did force a dramatic U-turn from the Thatcher government over proposed regional pit closures. We celebrated, but also asked the question, Have the Miners Really Won? Another former miners’ leader, Dai Francis, had his doubts, which later turned out to be justified. Thatcher would be ready next time.

The student movement was in much the same position as the trade unions, though in 1980 NUS Wales succeeded in prizing greater resources out of NUS UK by its university unions paying directly into a Welsh affiliation fund, rather than sending the money direct to London. By the end of my year in office in August 1980, it had also established a more federal constitution, which helped to win back support from a number of disillusioned and disgruntled Welsh-speaking students in the North and West. The University of Wales had also accepted our proposal for a central board to coordinate the development of Welsh-medium teaching throughout all the university colleges, rather than simply concentrating it in Aberystwyth and Bangor. In other areas, we won support from HRH the Prince of Wales, as Chancellor of the University, for our concerns about the government’s introduction of full-cost fees for overseas students and confronted the Welsh Rugby Union over its support for the unofficial tour of the South African Barbarians. This South Wales Campaign Against Racism in Sport introduced Peter Hain to Wales.

UCMC also campaigned successfully to prevent the Labour-controlled local authorities from imposing projected cuts on part-time students. The rise of the Left within the Labour Party was matched by a leftward shift in Plaid Cymru, which wrote a socialist state into its programme for Wales and a ‘broad left’ was formed with the Welsh Labour left and former Communist Party members. In the student movement, a distinctively Welsh socialist group emerged out of the remnants of the old Broad Left, which had been replaced by the Left Alliance within NUS UK, now including the Union of Liberal Students. Socialist students in Wales decided that a better strategy to manufacturing alliances was to reclaim the university unions and develop unions in other colleges through socialist education and organisation at a more grass-roots level.

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There seemed to be a limited response from a population readily accepting the values and arguments of ‘Thatcherism’ as they developed. The most radical political action went into the multiplying women’s groups, ecological movements and above all CND which acquired much more weight and spirit in the valleys and into west Wales than any other political body.  On 23rd February 1982, all the Welsh local authorities came together to declare Wales a Nuclear Free Zone, refusing to distribute the government’s infamous Protect and Survive pamphlets. The historian and lifelong CND campaigner, E. P. Thompson came to Carmarthen later in the year to address a mass rally. The protest camp at Greenham Common missile base was started by a march of women from Cardiff.

The turmoil continued around the language issue. The census of 1981 revealed that the proportion of Welsh-speakers had slipped back to 18.9 per cent, but that the decline in the use of the language overall had slowed dramatically over the decade and seemed to be coming to a halt. There were marginal increases in the numbers of Welsh-speakers in the most English-speaking areas such as Gwent and Glamorgan, probably due to the migration of Welsh-speakers to fill new jobs in the media in the capital and the increase in the number of Welsh learners in those counties, particularly among students in the arts and young journalists. As one of the enumerators, I found people who declared themselves as Welsh-speakers in some of the most unlikely districts of Cardiff.  Most serious, however, was the continued decline in the heartlands of the language, notably in south-west Wales, where the fall was six per cent. But the retrenchment in Welsh-speaking was noticeable in Ceredigion (Cardiganshire) and parts of Gwynedd and there were signs that the crusading of the past decade had begun to take effect among young people in these heartlands, especially where Welsh-medium or ‘bilingual’ schools had been set up.

Overall, out of a population of 2,790,00, around 550,000 were Welsh-speakers. In the west and north-west, particular districts, villages and even individual pubs created a linguistic map almost as tribally complicated as a cultural map of Northern Ireland. The continuing threat to the heartlands, y Fro Gymraeg, had led to the creation of a new cultural nationalist group, Adfer (‘Restore’), by the mid-seventies, whose intellectual supporters had been dedicated to the creation of a Welsh Gaeltacht, an ethnically pure economy and society on the basis of Welsh self-sufficiency. In Bangor, led by theology students, they had succeeded in creating a breakaway, Undeb Cymraeg (UCMB), a Welsh-speaking student union in 1977. The movement tended to see only the native Welsh-speaking Cymry as truly Welsh. The remainder, the vast majority throughout Wales, were described as Cymreig (‘culturally Welsh’) or at ‘best’, Cymry di-Gymraeg (‘non-Welsh-speaking Welsh’), the other face of the coin to the anti-Welsh-language British chauvinism which was prevalent in many Labour areas in the south, not least on the Left. Between the two groups of chauvinists, the proposal for a national assembly was easily defeated in the referendum of 1978, exposing Wales to economic pneumonia and the onset of Thatcherism, until its narrow reversal in the referendum of 1998.

In the early eighties, the divisions over the language were clear for all to see and were exacerbated by a major campaign of arson against holiday homes in northern and western Wales. In a major police action, Operation Tán (Fire) produced a chorus of complaint about violations of civil-rights, telephone-tapping, and the use of provocateurs. The NUS office phones were by now so routinely tapped that we could almost talk directly to Special Branch. On one occasion they contacted us directly to gather information about the beating up of Iraqi dissidents on the streets of South Wales by Saddam Hussein’s Baathist henchmen, the only students wearing suits and carrying rolled umbrellas! In the winter of 1980, driving out of Snowdonia following a meeting in Bangor, together with other members of the National Executive of NUS Wales, the North Wales Police stopped and searched the union’s fleet-hire hatch-back for flammable materials. They didn’t book us for speeding but joked about how wealthy Welsh students must be to be driving around in a brand-new car. They had obviously spotted the familiar dragons’ tongue Cymdeithas yr Iaith (Welsh Language Society) sticker in the back window.

Later in the year, John Jenkins, one of the bombers behind the botched attempt to blow a hole in the walls of Caernarfon Castle, in which two bombers accidentally blew themselves up and a little child was badly mutilated, before the 1969 Investiture of the Prince of Wales, was released from jail. Whilst there, where he had studied for an Open University degree. Having been initially accepted to study for a postgraduate diploma in social work, he was then rejected by University College Swansea without explanation. As our campaign to get the University to admit Jenkins gathered pace and hit the headlines, both in Welsh and English, both inside and outside Wales, we received a telephone message from ‘friends’ in high places in the university that Jenkins was still, somehow, a threat. That ‘somehow’ was never explained.

Our protests at the University of Wales Court meeting, held at Swansea, went ahead, but all the student representatives, ex-officio sabbatical officers of the constituent college unions, were forced to withdraw when the Jenkins case came up. As an NUS employee, I was initially allowed to stay in the meeting until the registrar of my own university college, Cardiff, pointed out that I was still registered as a student there. I was asked to withdraw, which meant we were prevented from reading our statement on the case, or even from having it read on our behalf by another Court member following my withdrawal. I, therefore, refused to leave, and the case was not discussed. Jenkins was not admitted, and we never found out what ‘good reason’ the college had for rejecting his application.  Soon after I received a message from my own university college, Cardiff, that I would not be allowed to extend my sabbatical at the Swansea NUS HQ for a further year and remain as a registered student, which would mean I had to leave the university permanently. I dutifully obeyed and returned to my PhD research in Cardiff in September 1980. Julie Barton was elected to replace me, becoming the first woman President of a more autonomous UCMC (NUS Wales), holding the post until 1982.

By then, the growth of the academic study of modern Welsh history became a major intellectual force which helped to bridge some of these divisions. The journal Llafur (Labour), the organ of the Welsh Labour History Society, of which I was a member, successfully married academics and workers. I returned to Swansea in the autumn of 1980, to do some research into the history of the mining valleys in the 1930s at the South Wales Miners’ Library, set up by the South Wales NUM in co-operation with University College Swansea, managed by Hywel Francis, son of the former miners’ leader.  It had rescued what was left of the magnificent miners’ institute libraries and created a centre for adult education, active research and a memorial to the fallen of the Spanish Civil War, many of those who joined the International Brigade having been South Wales miners. Soon after, however, the University College was forced into making financial cuts and proposed to lop off the Miners’ Library. In an effort to save it, the miners themselves became the major protagonists.

By 1982, Wales had its own Welsh-medium fourth television channel, a Welsh-medium teaching Board within the still federal University of Wales, and a quasi-official, ubiquitous bilingualism in public life. ‘Superted’ had been launched into orbit from S4C’s new offices in Canton, Cardiff. However, the task still remained of voicing the concerns of the eighty per cent who were outside the ‘orbit’ of the language and who, for a complexity of reasons, had turned their backs on the chance of Devolution, but still felt a deep sense of being “Welsh”.

The Grocer’s Daughter:

Looking back from over thirty-five years later, the epic events of 1979-83 seem to have a clear pattern. Powerful ideas challenged the post-war consensus and, following a nail-biting struggle, defeated its adherents. But from the perspective of those who lived through these events, especially in traditionally ‘left-wing’ areas of Britain, there was remotely inevitable about this ‘victory’. As student leaders, for example, we really thought that we could defeat the Tories on the issue of full-cost fees for overseas students. Even HRH the Prince of Wales, following our Lampeter meeting with him in 1980, expressed his concerns in one of his now famous hand-written missives to the government about the likely effects of these being introduced on Britain’s relations with the Commonwealth and on Britain’s new technical universities, which were dependent on the recruitment of overseas students. Almost the entire University Sector in Britain and its overseas offshoots, was publicly against the government on this, though many vice-chancellors were secretly rubbing its hands with the prospect of attracting more oil-rich Saudis and Baathists from Iraq and Syria, rather than poor South American, African and Middle-Eastern ‘refugees’.

It was also unclear what sort of Britain Margaret Roberts, the grocer’s daughter and devout Lincolnshire Christian, hoped to create. She did not believe in privatising industries or defeating inflation merely for economic reasons. She wanted to remoralize society, creating a nation whose ‘Victorian Values’ were expressed through secure marriages, like her own, self-help and thrift, moderation in all things, good neighbourliness and hard work. Though much attacked by church leaders like her arch nemesis, David Jenkins, the Bishop of Durham, she talked of God and morality incessantly from the moment she apparently quoted Francis of Assisi at the door of Number Ten on the morning following her May 1979 Election victory. In fact, it was a Victorian re-working of the well-known prayer. Later, it was endlessly used to show what a hypocrite she was. But for the people she had determined to govern on behalf of, the inflation-ravaged middle-classes who had despaired of Britain’s future, believing that the unions could never be tamed by the State, she brought both faith and hope. She claimed that she was in politics because of the conflict between good and evil. Yet Thatcherism heralded an age of unparalleled consumption, credit, show-off wealth, quick bucks and sexual libertinism. The Thatcher years did not bring harmony to the lives of most of the Queen’s subjects, but further social and economic division. When politicians determine to free people, they can never be sure what they are freeing them for. In reality, the lady in Lincoln green turned out to be the antithetical mirror image of its legendary hero, like the Robin Hood character in Monty Python and the Holy Grail:

Steals from the poor, gives to the rich,

Silly bitch!

Perhaps, as a Wesleyan, she had too generous a view of human nature, especially (and ironically) contrasted with her Calvinistic Baptist predecessor, who believed that people are essentially selfish and need to be moderated and regulated by the state for the common good to prevail. John Wesley’s famous mantra was: Work all you can, earn all you can, give all you can. Unfortunately, it took most of her period in power for her and the country to realise her theological error, that the sin of omission lay in respect of the third part of this triplet, and by that time much of Britain’s wealth and many of its assets had been stripped and shipped abroad. For the first four years of her leadership, the Tories were continuing to talk about a wages policy and the importance of consulting with the trade unions, perhaps on the German model. There was also talk of the need to control the money supply and offer council tenants the right to buy their homes. But other privatization measures barely featured. As to unemployment, Mrs Thatcher herself had been vigorously attacking the Callaghan government for its failure to tackle the dole queues. One of the Tories’ most successful election posters had portrayed an ever-lengthening queue with the slogan Labour isn’t working. I remember seeing it on an Easter visit home, dominating Chamberlain Square in Birmingham. With unemployment still around a million, the message she was giving out while still in opposition was:

We would have been drummed out of office if we’d had this level of unemployment.

If the British public had studied their new Prime Minister a little more closely they would have noticed a more abrasive edge to her personality, especially when she talked of the failure of the three previous administrations, including that of Ted Heath, to control the trade unions. She would point aggressively across the House of Commons and declare, Never forget how near this country came to government by picket. She had also received the nickname, The Iron Lady as an insult from the Soviet leadership for her rabidly anti-communist speech in 1977. It was only much later that it became a badge of honour for her. Moreover, the cabinet full of Tory squires and former Heath supporters hardly looked like a revolutionary cabal. Denis Healy memorably compared being attacked by the Chancellor, Geoffrey Howe, to being savaged by a dead sheep. But Mrs Thatcher herself was a far more determined woman than most people realised. The single most important influence throughout her life seems to have come from her father, Alderman Alfred Roberts, a self-made, austere Methodist and hard-working owner of a grocer’s shop on the main road north at Grantham. Although he stood for the council as an independent, Roberts was of Tory instincts. He became mayor in 1945 and chaired local charities, the Workers’ Educational Association, and acted as a director of a local bank. He was independent-minded and taught his daughter to speak her mind and to argue. In this, he was extremely successful, since her governments effectively devastated everything he had stood for in terms of local politics.

Unlike Wilson, who used his Yorkshire accent as a badge of identity, she lost her Lincolnshire ‘burr’ somewhere on her way down the A1. As her biographer, Hugo Young put it, she was born a northerner but became a southerner, the quintessence of a Home Counties politician. She was elected for the well-off middle-class seat of Finchley in 1959, her politics having been formed by the experience of post-war Labour austerity. Seen from above, the socialist experiment in planning and ‘fair shares for all’ might have looked noble, she concluded, but from below it was a maze of deprivation, shortage and envy. She later reflected that…

No one who lived through austerity, who can remember snoek, spam and utility clothing, could mistake the petty jealousies, minor tyrannies, ill-neighbourliness and sheer sourness of those years for idealism and equality.

During the 1979 election, using all the skills of her new image-makers and advertising agency, and with a shrewd understanding of the importance of television, she was still trailing Callaghan in the personal popularity stakes by a full nineteen points. It was Labour’s unpopularity with the electorate which cost the party power, not Margaret Thatcher’s allure. Yet without her, the Tory government of 1979-83 would have been entirely different. Without her confrontational style and determination not to be beaten, Britain would have been stuck with a pay policy and high public spending. The crucial issue for her on being elected was to get a grip of inflation. To the Thatcherites, this meant monetarism, the basic proposition of which was that inflation is directly related to the amount of money in the economy. Where the Thatcherite monetarists diverged from Keynesian economics was in the argument that the paramount role of government in economic management was to control the money supply, which could be scientifically measured and calibrated. The other issues, unemployment and productivity included, would eventually resolve themselves. All the government needed to do was to hold firm to the principle, get the money supply down, and it would succeed.

The Thatcher government, in reality, could have restricted the money supply by raising taxes, but it was committed to cutting most taxes. Almost immediately, Howe cut the basic rate of income tax from thirty-three to thirty per cent and the top rate from eighty-three to sixty per cent. Spending cuts were agreed too, but to make up the difference a huge rise in value-added tax (VAT), doubling to fifteen per cent, was brought in. Money was being redistributed from the masses, paying more for food, clothes and other essential items, to higher rate taxpayers. In industrial policy, one of the ‘moderates’, Jim Prior, made good on the manifesto promise and unveiled a trade union reform bill designed to end closed shops, providing public funds for strike ballots and outlawing secondary picketing of the kind which had been widely seen during ‘the winter of discontent’. These measures would have been radical under any other government, but Thatcher complained that they did not go far enough. She wanted an end to all secondary action. She castigated him as a ‘false squire’, one of a class of Tories who…

have all the outward show of a John Bull – ruddy face, white hair, bluff manner – but inwardly they are political calculators who see the task of Conservatives as retreating gracefully before the Left’s inevitable advance.

In frustration, Thatcher suddenly announced that strikers would in future be assumed to be getting union strike pay and so would not qualify for social security. The battle lines were being clearly drawn.

Howe’s second budget in 1980 set out a Medium-Term Financial Strategy (MTFS) which contained detailed predictions about the growth of the money supply. But with inflation raging, a recession biting and credit restrictions loosened, it was impossible to enforce. The money supply was supposed to be growing at around eight per cent, but it actually grew at a rate of nineteen per cent. The monetarists were beginning to look foolish. Strike-ravaged, unproductive British Leyland came begging for yet more money but instead of closing it down or selling it off, Thatcher gave way, just as Heath had done when Rolls-Royce had tested his resolve not to give bail-outs. But whereas the latter had eventually thrived again, BL died. There was also a steel strike and though the government talked tough and stood firm, the eventual settlement was high and the unions were certainly not humiliated. By the second half of the year, unemployment was up by more than 800,000 and hundreds of manufacturing businesses were going bust, throttled by the rising exchange rate. Industrialists, who had looked to the Tories with great hope, now began to despair once more. Prices were up by twenty-two per cent in a year and wages by a fifth. At the Tory Conference of 1980, the dissidents within the cabinet and the Tory ‘left’ in Parliament who called for a ‘U-turn’ on the economy were dismissed by Thatcher in a phrase coined by the playwright Ronald Millar:

You turn if you want to. The lady’s not for turning!

The word ‘wet’ was a public schoolboy term of abuse describing a fellow pupil who was ‘soppy’ or weak. It was now being applied by monetarist Tories to their Heathite opponents. In the great Thatcher cabinet battles of the eighties, it was appropriated to refer particularly to the senior ministers who did not agree with her – Jim Prior, Francis Pym, Sir Ian Gilmour, Mark Carlisle, Norman St John Stevas, Peter Walker, Christopher Soames and (later) Michael Heseltine. Most of them were ‘wet’ in another sense – despite being in the majority, they were never prepared to act together to face her down, or even to resign individually on points of principle. The great confrontation would have come in 1981, with unemployment headed towards three million, new bankruptcies reported every day and the biggest collapse in manufacturing production in a single year since 1921. Howe planned to take another four billion out of the economy through a combination of swingeing cuts and rises in taxes. Thatcher told Alan Walters, her new economic adviser, that they may get rid of me for this but that it would be worth it for doing the right thing. On the streets, rioting seemed to be confirming all the worst fears of those who had predicted that monetarism would tear the country apart. But in ringing terms, Thatcher told the Tory Party faithful to stay calm and strong:

This is the road I am resolved to follow. This is the path I must go. I ask all who have spirit – the bold, the steadfast and the young at heart – to stand and join with me.

In April 1981, riots broke out in Brixton. Shops were burned and looted, streets barricaded and more than two hundred people, most of them police, were injured. Mrs Thatcher’s response was to pity the shopkeepers. Lord Scaman was asked to hold a public inquiry; but in the first week of July, trouble began again, this time in the heavily Asian west London suburb of Southall, with petrol-bombs, arson attacks and widespread pelting of the police. Then Toxteth in Liverpool erupted and the rioting there continued for two weeks. Black youths, then whites, petrol-bombed the police, waved guns and burned both cars and buildings. The police responded with CS gas, the first time it had been used on the streets of mainland Britain, and with baton charges. As in London, hundreds were injured and one man was killed. Toxteth was followed by outbreaks of looting and arson in Manchester’s Moss Side. With unemployment reaching sixty per cent among young blacks, and both Liverpool and Manchester having suffered badly from recent factory closures, many saw this a clearly linked to Thatcherite economics, what Denis Healey, now in opposition, was now calling ‘sado-monetarism’. Michael Heseltine went to Liverpool and came back calling for government money to bring in private investment, job creation schemes and a minister for Liverpool. He stuck with Liverpool for a year, helping to bring renovation projects and a morale-boosting garden festival which was attended by three million people. Thatcher herself drew very different conclusions from her visit to Liverpool:

I had been told that some of the young people involved got into trouble through boredom and not having enough to do. But you only had to look at the grounds of these houses with the grass untended, some of it almost waist-high, and the litter, to see this was a false analysis. They had plenty of constructive things to do if they wanted. Instead, I asked myself how people could live in such circumstances without trying to clear up the mess.

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The problem, she claimed, was lack of initiative and self-reliance created by years of dependency on the State, and compounded by the media. It was nothing whatsoever to do with monetarist policies. Her views remained unaltered as she then went on into full-scale battle with ‘the wets’. Howe planned another tight Budget for 1982, and, for the first time, there was something approximating a full-scale cabinet revolt. Heseltine warned of despair and electoral meltdown. Even monetarist true believers seemed to be deserting. Thatcher herself called it one of the bitterest arguments in a cabinet in her time. Drawing the meeting to a close, she decided to counter-attack. Four ministers were sacked, and Jim Prior was sent to Northern Ireland. She intervened to stop other ministers settling with public sector workers, even when it would have been cheaper to do so. She had kept the trade union leaders locked out. Len Murray (above), the impeccably moderate TUC chairman who had spent half the Wilson and Callaghan years sitting around the table with them, was allowed into Downing Street just three times in Mrs Thatcher’s first five years.

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In the summer of 1981, most of ‘England and Wales’ allowed itself to be distracted by the dramatic reversal in their Cricket team’s fortunes in the Home ‘Ashes’ series against Australia. A belligerent Ian Botham helped them to snatch victory from the jaws of defeat at Headingley, and we all began picking up bats and balls again. In 1982, I enjoyed a brief interlude as ‘the Ian Botham of Grangetown’ in my pub team, more for my inconsistency as an all-rounder, though I did get to make match-winning contributions on the practice pitches at Sophia Gardens.

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Above: In an interview with BBC correspondent, John Simpson

The best evidence of Mrs Thatcher’s belligerent style to date had been the struggle with the other European leaders to reclaim roughly a billion pounds a year of net British payments to the Community. In ‘Thatcher speak’, getting our money back involved an undiplomatic brawl that went on from Dublin to Luxembourg to Brussels. She would not shut up, or back down. Diplomats from all sides suggested interesting side-deals, trade-offs, honourable compromises, but she brushed them all aside. Ultimately, she got three-quarters of what she had first demanded, but, astonishingly, she then said ‘no’. It was only when all her entire cabinet were in favour of the settlement that she grudgingly agreed. The press and the country were beginning to notice her tenacity. Her ‘Bothamesque’ innings in Brussels was to come back to haunt her when she was ‘savaged’ by Geoffrey Howe’s cricketing metaphors in 1990, but until then, the civil war within the Labour Party had helped protect her from the electoral consequences of her shift from the centre-ground. The Tories might be hated, but Labour was unelectable.

(to be continued…)

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Britain in the Seventies: 1974-79 – The Three-day week to The Winter of Discontent, Part One.   Leave a comment

Part One: The Economic Storm and Europe.

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Denis Healey, chancellor during Britain’s economic storm,

making a characteristic point to his opponents.

The Return of Harold & the Advent of The Social Contract:

In January 1974, the Heath government announced a three-day working week to save fuel. It is remembered as the darkest month, quite literally, in the story of mid-seventies’ Britain. I was in my first year of A Level studies in Birmingham, writing essays on the kitchen table by candlelight since all the lights went out by 10.30 p.m. each evening. At least there was no TV to act as a distraction! Heath and his government struggled to find a solution to the miners’ claim, but this process was hardly helped when he asked Mick McGahey, the legendary Scottish Communist mineworkers’ leader what he really wanted and was met by the typically blunt reply, to bring down the government. After much messing about with intermediaries and mixed messages, not least from the government’s own Pay Board, it became clear that no effective compromise could be found. The miners voted 81% in favour of striking, including those in some of the traditionally most moderate areas in the country. In February, Heath asked the Queen to dissolve Parliament and he went to the country on the election platform he had prepared two years earlier; Who Governs Britain? The country’s answer was not the one he had hoped for.

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Harold Wilson had expected the Tories to win another term and began the campaign in a low-key mood. However, Labour’s cause was helped by its offer of a referendum on EEC membership, which led many Powellites and anti-EEC Tories to think of voting for them, at least covertly. Also, his year in opposition had given him the opportunity to come up with a more workable solution to the problems posed by inflation and union wage demands. The Social Contract was a joint agreement between the union leaders and the Labour shadow cabinet, and was essentially a return to the politics of the forties, with price controls, a complex system of food subsidies and the end of the Tory union laws. In return for this Attlee-age ‘austerity’ manifesto, the unions gave vague promises of voluntary pay restraint. It was a one-way deal, but it was in Wilson’s interests to pretend that he could find practical agreements with ‘the brothers’ where Heath could not.  It was in the unions’ interests to pretend that they were signing up to a new era of sweetness and light which would replace the bitter hostility towards the Tories and their anti-union legislation. Outside observers saw it as it as a ploy for the TUC to gain a privileged place in government in return for very little and a recipe for further inflation.

As it turned out, and with the benefit of hindsight, the three-day week was not the outright disaster it had seemed it would be. Industry had managed to maintain production levels, providing an interesting perspective on the limitations of five and six-day working which economists have periodically pointed to since. It had even provided for greater efficiency, and relatively few jobs had been lost. But Heath’s authority had gone, and in the election campaign the idea of the Social Contract caught on with voters. Wilson was able to present himself on television as the calm bringer of reason and order. A slew of bad economic news arrived during the campaign and was followed by Powell’s declaration that he was quitting the Conservatives over their failure to offer a Referendum on Europe and would be recommending everyone to vote Labour in order to ensure a choice on the subject. A mistake by the Pay Board revealed that the miners were more relatively poorly paid than had been recognised. A surge in support for the Liberals to a quarter of the popular vote also helped Labour more than it aided the Tories. Having decided that Heath should not rule, the government seemed undecided about whether Wilson should replace him. Enjoying a late swing in its favour, Labour won the most seats, 301 against 297, but no party had an overall majority. Heath hung on, trying to do a deal with the Liberal leader, Jeremy Thorpe, who had just fourteen MPs despite the surge in the support for the party, but he eventually conceded defeat. This resulted in the Queen asked Harold Wilson to form his third administration, a decade after his first.

But Wilson was governing without a Commons majority at a time when the economy was still coming to terms with the oil price hike, with rampant inflation, rising unemployment and the pound under almost constant pressure. Furthermore, the fragile ‘Social Contract’ had yet to be tested. Almost the first thing the Labour government did was to settle with the miners for almost double what Heath had thought was possible. The chances of the new government enjoying easy popularity, even with its working-class base, were practically nil, however. Nevertheless, an opposition comprising divided Tories, Liberals, Nationalists and Irish Unionists was unlikely to combine to defeat it on a regular basis. The new Chancellor, Denis Healey, introduced an emergency Budget a few weeks into the new Parliament, followed by another in the autumn which raised income tax to 83% at the top rate of earnings, and 98% for unearned income, eye-wateringly high. Healey claimed that his aim was to squeeze the rich until the pips squeak, a phrase which was to come back to haunt Labour for a generation to come. In the spirit of the ‘Social Contract’ Healey also increased help for the poorest, with higher pensions and housing and food subsidies. He was delivering for the unions as promised, just as Wilson himself was doing in abolishing the Conservative employment legislation. Heath remained as Tory leader, for the time being, convinced that Wilson would soon have to call a second election, which he would win. However, when this came in October, Wilson gained eighteen seats, enough to give him a workable overall majority of three.

Wilson, though, had privately decided that he would go in 1976, and he publicly acted accordingly. The question as to who would succeed him, Jenkins or Callaghan, Healey or even Benn, had become one about the direction of the Labour government, rather than a personal threat to Wilson. He seems likely to have known about the early stages of Alzheimer’s, which was to wreak a devastating toll on him in retirement. He forgot facts, confused issues and repeated himself. For a man whose memory and wit had been so important, this was a grim burden. If Roy Jenkins had been Wilson’s most important minister in the mid-sixties, it was Denis Healey who dominated public perceptions of the Labour government of the mid-seventies. As a Chancellor of the Exchequer during the worst economic storm of post-war times, through both the Wilson and Callaghan governments, he rivalled each of them as a public icon. Healey was one of the most widely read, cultured intelligent and self-assured politicians of modern times, whose early Communism, active war service and a vast range of international contacts did much to establish him in this role.

But the economy Wilson and Healey inherited from Heath and Barber in 1974 meant that much of his energy for the next five years would be thrown into dealing with the newly unstable world economy. The following Labour governments faced huge balance-of-payments crises and the tumbling value of the pound. Healey was taxing and cutting as much as he dared, but his only real hope was to control inflation by controlling wages. Wilson insisted that any incomes policy must be voluntary, with no going back to legal restraints. The unions became increasingly worried that rampant inflation might bring back the Tories. So for a while, the ‘Social Contract’ did deliver fewer strikes. In 1974-75, the number of days lost to strikes halved and then halved again in 1976. Contrary to popular myth, the seventies were not all about mass meetings and walk-outs. The real trouble did not start again until 1978-79. But the other half of the ‘Social Contract’ was supposed to deliver lower wage settlements, and this was an utter failure. By the early months of 1975, wage settlements were already running at thirty per cent above inflation. By June inflation was already up to twenty-three per cent and wage settlements were even further ahead. Healey reflected later that…

Adopting a pay policy is rather like jumping out of a second-floor window: no one in his senses would do it unless the stairs were on fire. But in postwar Britain the stairs have always been on fire.

By refusing to allow companies to pass on inflationary wage increases as higher prices, and by endless haggling with union leaders, Healey did manage to squeeze inflation downwards. It had reached twenty-four per cent by 1975 and came to be seen as a far more important issue than unemployment. On reflection, Healey believed that if the unions had kept their promises it would have been down to single figures by the autumn of 1975. The government was also at the mercy of the International Monetary Fund, which insisted on severe spending cuts. The contraction of manufacturing began to accelerate. There was a national and international political swing to the right as a reaction to against perceived high-taxing and high-spending governments. Demands were being made that governments cease propping up ‘lame duck’ industries with public money. Attacks on trade union power were becoming more and more popular, owing to a growing perception that they had become too powerful and disruptive, as the Miners’ Strike and the three-day week had graphically illustrated. At the same time, Healey was under constant pressure within the Labour party and wider ‘movement’ to show that he was delivering for socialism. He never accepted the Tory argument that high taxes stopped people from working harder and blamed Britain’s poor industrial performance on low investment in industry, poor training and bad management. Healey ultimately suffered quite personally from his own policies. He wrote:

As a result of my tax changes and my determination to prevent ministerial salaries from rising as fast as the pay norm, my own real take-home pay as Chancellor fell to only half what I had been earning as Defence Secretary, although I was working harder and longer.

The Great Debate – The EEC Referendum of 1975:

Against the background of the international economic crisis, Wilson kept his election promise and carried out a largely sham renegotiation of Britain’s terms of entry to the EEC. The reopened talks were understood to be more for Wilson’s benefit than for anyone else’s. He needed to persuade people that he was putting a different deal to the country than the one Heath had put to Parliament two years earlier. Helmut Schmidt, the new German Chancellor (pictured below), travelled to London to help win round the Labour conference, a trip that he regarded more as a cosmetic operation than a mission.

Wilson then put the result to the country in the Benn-inspired 1975 referendum, though when the referendum campaign actually began, his old evasiveness returned and he mumbled vaguely in support, rather than actively or enthusiastically making the European case. There were plenty of others to do this for him, however, and the campaign became a rare high-point in the political decade. To preserve longer-term party unity, he allowed the anti-EEC cabinet ministers to speak from the ‘No’ platform and Barbara Castle, Tony Benn, Peter Shore and Michael Foot were among those who did so, in alliance with Enoch Powell, Ian Paisley, the Scottish Nationalists and others. But the ‘Yes’ campaign could boast most of the Labour cabinet, with Roy Jenkins the chief protagonist, plus most of the Heath team, and popular Liberal leader Jeremy Thorpe. Although I missed out on voting by just four days, my eighteenth birthday coming just after referendum day, I remember the sixth form debates, formally in General Studies sessions and informally out on the school playing fields at lunchtime. The arguments ranged from the effects of the Common Agricultural Policy (CAP) on the British economy through to the preservation of peace in Europe. This latter issue was important not just to younger voters, but also to their parents and grandparents who had experienced the Second World War.

Yes girls: Pro-EEC campaigners back Brussels at the 1975 referendum

Business was also strongly in favour of remaining in, a CBI survey of company chairmen found that out of 419 interviewed, just four were in favour of leaving the Community. Almost all the newspapers were in favour of staying in, including the Daily Mail, Daily Telegraph and Daily Express. So was every Anglican bishop, but their ‘flocks’ were more divided, believing, like my own nonconformist father, that the EEC was a ‘rich man’s club’ formed to rip off the poorer nations more effectively. The fight between ‘the Establishment’ and its critics was far from being funded on an equal basis. Britain in Europe, leading the ‘Yes’ campaign, outspent the ‘No’ camp by more than ten pounds to one. Both sides used scare stories. Britain in Europe constantly warned of a huge loss in jobs if the UK left the Community. The ‘No’ camp warned of huge rises in food prices if Britain remained in the CAP.

Yet this was also an almost carnival-like exercise in participatory democracy of a kind Britain had never seen. There were meetings, several thousand strong, night after night around the country, with hecklers and humour. There were all kinds of stunts and the country was covered with posters. The spectacle of politicians from rival parties who normally attacked one another sitting down together agreeing was a tonic to those watching. There were good television arguments, most notably between Jenkins and Benn. On the Labour side, however, there were awkward moments when rhetoric got too fierce and Wilson had to intervene to mediate between warring minister. Margaret Thatcher was also out campaigning, in a spectacularly hideous jumper with the flags of the member states knitted across her chest. The pictures from the time, shown above and below, captured something of the carnival atmosphere of the campaign.

Margaret Thatcher,  William Whitelaw and Peter Kirk, at a referendum conference. June 1975. Photo: Keystone/Getty Images

In the end, the people voted on the simple question on the ballot paper, Do you think the United Kingdom should stay in the European Community (the Common Market)? Their response produced seventeen million, a two-thirds majority (68.3 per cent) voting ‘Yes’, with 32.8 per cent, some 8.5 million voting ‘No’. Only in the Shetland and Western Isles of Scotland were there majorities for ‘No’. Benn instantly conceded defeat though privately considered the vote some achievement considering we had absolutely no real organisation, no newspapers, nothing. Powell, however, warned that the decision was only ‘provisional’ and might be reopened in the future. As so often, his was a lone voice. More than forty years later, and in the light of the 2016 Referendum result, the biggest question which remains is whether the British were told, by either Heath or Jenkins, the full implications of membership of the supranational organisation they were signing up to. Campaigners in 2016 on both ‘Remain’ and ‘Leave’ sides reported that people ‘on the doorstep’ complained that in 1975 we voted to remain in a Common Market, we didn’t vote to join a political union. Many among the third of the people who originally voted to leave the EEC in 1975 were joined by younger people over the following decades in suggesting that Heath and Jenkins had lied to the country, at least by omission, because they had not explained that the European Community’s law and institutions would sit above those of Westminster. What is the truth about this? Britain in Europe campaigners can point to speeches and advertisements which directly mention loss of sovereignty. One of the latter read:

Forty million people died in two European wars this century: Better lose a little national sovereignty than a son or daughter.

Yet both in Parliament and the referendum campaign, although the importance of securing a Pax Europa was constantly featured, the full consequences of membership for national independence were mumbled, not spoken clearly enough. Besides, it was the job of NATO to keep the peace, not the EEC. Undoubtedly, a free trade area in Europe would assist in this process, but it was not the primary purpose of the European Community. Geoffrey Howe, who drafted Heath’s European Communities Bill, later admitted that it could have been more explicit about lost sovereignty. Heath talked directly about the ever closer union of the peoples of Europe but was never precise about the effect on British law, as compared to an incoming tide. It flows into the estuaries and rivers. It cannot be held back. Hugo Young, the journalist and historian who studied the campaign in great detail, wrote:

I traced no major document or speech that said in plain terms that national sovereignty would be lost, still less one that categorically promoted the European Community for its single most striking characteristic that it was an institution positively designed to curb the full independence of the nation-state.

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Above: In the 1975 referendum, both sides campaigned more about the cost of food than about the constitutional implications of surrendering sovereignty.

There were, of course, the explicit warnings about lost sovereignty delivered by the ‘No’ campaigners among the more populist arguments about food prices. Above all, these arguments came from Enoch Powell, Michael Foot and Tony Benn. Powell’s language can be gauged from a speech he gave to political journalists in the Commons while the Bill was being debated. He lamented that the Commons was…

…perishing by its own hand. Week by week, month by month, the House of Commons votes to divest itself of what it had gained by through a length of time not much shorter than the History of England itself.

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Of course, a lot depends on when you begin your reading of the History of England from, but Powell (pictured above) would almost certainly have traced it back to the end of the tenth century, a period of a thousand years. In fact, the History of Parliament could be traced back only to the early thirteenth century, to the time of the De Montfort Rebellion, and it was only in the seventeenth century that it acquired real power. Michael Foot, though recovering from an operation and so not as prominent in the campaign as he might have been, wrote in The Times that the British parliamentary system had been made farcical and unworkable. Historians, he said, would be amazed…

that the British people were urged at such a time to tamper irreparably with their most precious institution; to see it circumscribed and contorted and elbowed off the centre of the stage. 

Tony Benn, confiding to his diary his reaction to the possibility of a Europe-wide passport, showed how much the left’s instincts could chime with those of the right-wing opponents of European change:

That really hit me in the guts… Like metrication and decimilisation, this really strikes at our national identity.

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All these arguments were made in the press, despite the overall bias, and repeatedly in public meetings and broadcast debates. So it is not as if people were not told, but the truth revealed by opinion polls both at the time and more recently, is that sovereignty as an issue did not, and does not concern the British public as much as jobs and food prices. By later standards under Thatcher, Major and Blair, the position of Parliament was not taken as seriously in public debates as it was by some leading, vociferous parliamentarians. It may be that ‘sovereignty’ as an abstract concept is always only of great interest to the political ‘classes’, not to the ordinary working-classes and professional middle-classes, except where a loss of sovereignty directly impacts on daily life and produces resented laws. In the seventies, as now, Britain’s political class was not highly respected, and Europe seemed to offer a glossier, richer future, especially for younger voters. Though the pro-Community majority in business and politics did not strive to ram home the huge implications of membership, the idea that they deceitfully hid the practical, political nature of what was happening was, and is a myth, a convenient one for those who subsequently changed their minds about the benefits of membership. The argument would return fifteen years later to the Conservative backbenches, though few people cared about it elsewhere until the divisions among Tory MPs spread to the cabinet a full forty years after the first referendum, provoking the second vote on the issue in 2016. This time, the issue of sovereignty was given a popular edge by the ‘inability’ of successive governments to control internal migrations to Britain from within the EU, and their continued failure to control immigration from the Commonwealth and elsewhere in the world.

Goodbye to Ted and Harold, and All That… :

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Much of the remaining time of Wilson’s final government was taken up with foreign affairs. Despite American disapproval, the Labour government began the final withdrawal from east of Suez, giving up any pretensions of continuing British influence in the Far East. The Empire was finally, formally, over. A few ‘outposts’ remained, most significantly Hong Kong, and the lines it had drawn on the map in the Middle East – Transjordan, Israel, Iraq – were to provide the focus for continuing and future conflicts. In Iraq, an unpopular king was overthrown in a military coup, leading to the régime of Saddam Hussein. The Commonwealth was never a coherent policy-setting organisation, and this was particularly so after the UK decided to stay in the European Economic Community. Her members often had diametrically opposed trading interests. Time and again, on issues such as Apartheid South Africa, Rhodesia, and questions of migration, the Commonwealth would fracture, or embarrass London. Was it kept going out of nostalgia and sentimentality or to give the Queen a role outside the UK? At least it provided the last English-speaking worldwide ‘club’ not dominated by the USA.

Wilson, by now clearly to the right of the party, was equally determined that Tony Benn would not introduce a socialist economy via the National Enterprise Board. When it eventually arrived, the NEB was a weak, ill-funded repository for lost economic causes, British Leyland in particular. Benn’s enthusiasm for workers’ control continued to irritate most of the other ministers and civil servants he worked with, so that he confided in his diary that he felt like he was trying to swim up the Niagara Falls. He was particularly keen on co-operatives, and took up the cause of the Meriden Motorcycle factory, struggling to survive under workers’ control. But these were the last days in the era of planning and public control of industry and Benn’s support for these made him a traditionalist rather than a radical. Later, Healey brutally summed up his rival’s contribution as minister to British industry. There were only two monuments to Benn in power, he said: a uranium mine in Namibia he had authorised as energy secretary, which helped support apartheid; and Concorde, used by rich people on expense accounts and subsidised by poorer taxpayers.

Wilson retired, as he had always said he would, at the age of sixty. Nevertheless, his announcement astonished his cabinet and left London awash with rumours. He was still witty enough to joke that, in respect of his preferred successor Jim Callaghan, that he was making way for an older man, and wily enough to give Callaghan a tip-off which helped him steal a march on the other candidates, including Healey, who only heard the news of Wilson’s retirement from Wilson himself in the gents toilet before the cabinet meeting at which he formally announced it. Wilson saw his reputation sink steadily downwards with his memory. It was a sad way for a fundamentally decent man to subside.

Meanwhile, in the middle of June 1974, a speech by Sir Keith Joseph signalled a major shift in Tory thinking. Joseph was the son of a rich London businessman, who had risen to become housing and then health minister under first Macmillan and then Heath. He had spent heavily on a bigger bureaucracy for the NHS and higher social security levels. Now he was quite literally wringing his hands and rolling his eyes with mortification. There had, he said, been thirty years of government interventions, good intentions and disappointments, thirty years of socialism under both Labour and the Tories. He admitted: I must take my blame for following too many of the fashions. His conversion to free-market, small-state economics had the force of a religious experience. He had joined the Conservative Party in the 1950s, but now felt that he had never really been a Conservative. Within five years, this kind of thinking would lead to the Thatcher revolution and the wholesale rejection of the Heath years, building on the ideas of academic economists right into the centre of British public life. Other fellow travellers were Americans and a few Powellite Tories who were outside the Tory mainstream. Crucial to the success of these ideas in government would be controlling the amount of money in the economy to keep out inflation, which meant squeezing how much was borrowed and spent by the State. As a former cabinet minister with close and direct experience of government. With his Centre for Policy Studies, he was the rain-maker, the storm-bringer, the Old Testament prophet denouncing his tribe. For now, however, the approaching cloud was no bigger than a man’s hand.

Keith Joseph argued that the Britain of the mid-seventies had a fundamental choice to make between a socialist siege economy or a breakaway into proper liberal capitalism, in effect between Benn and Joseph. He could not have formed his ideas without the libertarian and monetarist thinkers of the fifties and sixties. During the Tories’ years in opposition from 1964 to 1970, Joseph had educated himself in free-market economics and was soon using as his speechwriter Alfred Sherman, an East End boy from a left-wing family who had fought as a machine-gunner in the Spanish Civil War before swinging right round later and becoming an insistent right-wing critic of the British way. But in Heath’s government, Joseph’s radicalism had gone into hiding again, and Sherman described him dismissively as a good man fallen among civil servants. But the defeat of 1974 had shaken Joseph and with other monetarists he began a rethink of the Heath years, culminating in a shadow cabinet post-mortem when they argued that the early radicalism of 1970-71, led by the Cliveden group, had been right, and the subsequent U-turn a disaster. Heath blankly refused to listen, or at any rate to heed, the attack. Heath’s haughty assessment in his autobiography was that Joseph…

had resumed a friendship with a person called Alfred Sherman, a former communist, and undergone what he liked to call “a conversion” as a result … (this) failed to cut any ice with the great majority of his colleagues, though we did them the courtesy of listening.

In fact, many Tories were beginning to listen. With Joseph were Geoffrey Howe and Margaret Thatcher. Early on, Howe warned,

I am not at all sure about Margaret. Many of her economic prejudices are certainly sound. But she is inclined to be rather too dogmatic for my liking on sensitive matters like education and might actually retard the case by simplification.

There were other new radicals, such as the Powellite MP John Biffen, the young economist Nigel Lawson and a crowd of journalists and academics. They produced an intellectual analysis, hard and uncompromising, which excited a generation of new recruits to the party, while it repelled Tories of the comfortable, compromising Macmillan persuasion. Macmillan himself said of Joseph that he was the only boring Jew I’ve ever known. and later there would be much snide muttering about the men Thatcher learned from and worked with – Hayek, Sherman, Joseph, Lawson and Friedman. Jews were prominent in intellectual thinking on the right, as they had been on the left, bringing opposite lessons to Britain from the disasters of continental Europe. A serious commitment to ideas and old-fashioned attitudes to education gave them their unique influence in politics. Thatcher was open to these ideas, ready to listen, unprejudiced, unlike many traditional Tories.

In the winter of 1974-5, after Heath had lost his second successive election to Wilson, there was no such thing as ‘Thatcherism’. Margaret Thatcher was still expressing her public support for the politics of ‘consensus’. She backed intervention in the housing market and queried the sale of council housing by Tory-run local authorities. Neither was there any sign that she would become the leader of the Tory party. Heath was stubbornly determined to stay on, insisting that his supporters, who included most of the well-known Tories of the day, were backing him in this determination. Indeed, polls suggested that seventy per cent of Tories wanted him to stay on. Yet there was deep dissatisfaction on the Tory benches in Parliament. Sir Edward Du Cann, who chaired the all-important backbenchers’ 1922 Committee, began to take soundings about a challenge to Heath. He was backed by the arch-intriguer Airey Neave, but Neave soon pulled out in favour of Keith Joseph. He then made a catastrophically ill-judged speech in which he suggested that working-class women were having too many babies and should be prevented from degrading the gene pool. This finished the man who Private Eye had already dubbed the mad monk.

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Heath had failed to accept that two successive general election defeats meant he really had to go so that Tory moderates were not lining up to replace him. Airey Neave persuaded many of them to vote for Thatcher because she had no chance of defeating Heath, but a contest might force him out, as a ‘stalking horse’, then allowing more serious candidates to stand. On 4 February 1975, she shocked everyone by defeating Heath in the first ballot by 130 votes to 119. She then went on to beat the two other candidates easily. The undercurrent of free-market thinking that had been gurgling around since the fifties broke to the surface in spectacular fashion, changing Britain for good. Few of the Tory MPs in what was called the peasants’ revolt realised quite where their new leader would take them. For the next four years, supercilious, misogynist remarks from first Wilson and then Callaghan would be continually directed against her, but then she would turn her femininity, if not her feminism, against them to great effect. She was to break the mould of the Wilson-Heath era in more ways than one.

(to be continued…)

Beginnings of the Cold War in Central/Eastern Europe, 1946-56: Territory, Tyranny and Terror.   1 comment

019Eastern Europe in 1949. Source: András Bereznay (2002), The Times History of Europe.

Following the defeat of the Third Reich, the map of the European continent was radically transformed. The most striking transformation was the shrinking of Germany, with Poland the principal beneficiary, and the division of what remained of the two countries. But Poland lost vast territories on its eastern border to the Soviet Union. West Germany (from 1949, ‘the Federal Republic’) was formed from the American, French and British areas of occupied Germany; East Germany (‘the Democratic Republic’ from 1949) was formed from the Soviet-occupied zone (see the maps below). The former German capital followed this pattern in miniature. Czechoslovakia was revived, largely along the lines it had been in 1919, and Hungary was restored to the borders established by the Treaty of Trianon in 1920. Yugoslavia was also restored in the form it had been before the war. The Baltic states – Estonia, Latvia and Lithuania – together with the Ukraine and Bessarabia, were all incorporated into the Soviet Union. Austria was detached from Germany and restored to independence, initially under a Soviet-sponsored government reluctantly recognised by the western powers. It gradually moved away from Soviet influence over the following ten years.

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It rapidly became clear that Stalin’s intentions were wholly at variance with the West’s goals for western Germany. The two zones of Germany followed wholly divergent paths: while denazification in the west followed the Austrian model, with the first free elections taking place in January 1946. However, in the east the Soviets moved quickly to eradicate all pre-war political parties other than the communists, sponsoring the German Communist Party, which became the Socialist Unity Party in April 1946. All other political organisations were suppressed by November 1947. As it became clear that the western and eastern halves of the country were destined for separate futures, so relations between the former Allies deteriorated. Simultaneously, the Soviet Army stripped the country of industrial plunder for war reparations. Germany rapidly became one of the major theatres of the Great Power Conflict of the next forty years. Berlin became the focal point within this conflict from the winter of 1948/49, as Stalin strove to force the Western Allies out of the city altogether. In September 1949, the Western Allies, abandoning for good any hopes they had of reaching a rapprochement with Stalin, announced the creation of the Federal Republic of Germany. This was followed, the next month, by the creation of the Soviet-sponsored GDR. More broadly, it was clear by the end of 1949, that Stalin had created what was in effect a massive extension of the Soviet Empire, as well as a substantial buffer zone between the USSR proper and the West. Western-Soviet relations were plunged into a deep freeze from which they would not emerge for decades: the Cold War. In escaping Nazi occupation, much of Central/Eastern Europe had simply exchanged one form of tyranny for another.  

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In July 1947, the USA had issued invitations to twenty-two European countries to attend a conference in Paris, scheduled for 12th July, to frame Europe’s response to the Marshall Plan, the proposal put forward by President Truman’s Secretary of State to provide an economic lifeline to the countries of Europe struggling to recover from the devastation caused by the World War. Stalin and his Foreign Minister, Molotov, had already given their reaction. Stalin saw the issue not only in economic but also political terms, his suspicious nature detecting an American plot. He thought that once the Americans got their fingers into the Soviet economy, they would never take them out. Moreover, going cap-in-hand to capitalists was, in his view, the ultimate sign of failure for the Communist system. The socialist countries would have to work out their own economic salvation. Nevertheless, Molotov succeeded in persuading Stalin to allow him to go to Paris to assess the American offer.

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The ‘big four’ – Britain, France, the USA and the USSR – met first at the end of June in Paris. Molotov agreed to back limited American involvement in the economies of Europe with no strings attached. However, Soviet intelligence soon revealed that both Britain and France saw Marshall’s offer as a plan for aiding in the full-scale reconstruction of Europe. Not only that, but Molotov was informed that the American under-secretary, Will Clayton, was having bilateral talks with British ministers in which they had already agreed that the Plan would not be an extension of the wartime Lend-Lease Agreement which had almost bankrupted Britain in the immediate post-war years. The British and the Americans also saw the reconstruction of Germany as the key factor in reviving the continent’s economy. This was anathema to the Soviets, who were keen to keep Germany weak and to extract reparations from it. The Soviet Union was always anxious about what it saw as attempts by the Western allies to downplay its status as the chief victor in the war. Molotov cabled Stalin that all hope of effecting Soviet restrictions on Marshall aid now seemed dead. On 3rd July, Molotov, accusing the Western powers of seeking to divide Europe into two hostile camps, gathered up his papers and returned to Moscow that same evening.

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With the Soviets out-of-the-way, invitations went out to all the states of Western Europe except Spain. They also went to Romania, Bulgaria, Hungary, Albania, Finland, Yugoslavia, Poland and Czechoslovakia. After initial hesitation, Moscow instructed its ‘satellites’ to reject the invitation. On 7th July, messages informed party bosses in the Eastern European capitals that…

…under the guise of drafting plans for the revival of Europe, the sponsors of the conference in fact are planning to set up a Western bloc which includes West Germany. In view of those facts … we suggest refusing to participate in the conference.

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Most of the Communist parties in the Central-Eastern European countries did just as they were told, eager to display their loyalty to Stalin. But the Polish and Czech governments found the offer of US dollars too appealing since this was exactly what their economies needed. In Czechoslovakia, about a third of the ministers in the coalition government were Communists, reflecting the share of the vote won by the party in the 1946 elections. Discussions within the government about the Marshall aid offer, however, produced a unanimous decision to attend the Paris conference. Stalin was furious and summoned Gottwald, the Communist Prime Minister, to Moscow immediately. Jan Masaryk, the foreign minister, an independent non-Communist member of the Prague Government. Stalin kept them waiting until the early hours and then angrily told them to cancel their decision to go to Paris. He said that the decision was a betrayal of the Soviet Union and would also undermine the efforts of the Communist parties in Western Europe to discredit the Marshall Plan as part of a Western plot to isolate the Soviet Union. He brushed aside their protests, and they returned to Prague, where the Czechoslovak Government, after an all-day meeting, unanimously cancelled its original decision. Masaryk, distraught, told his friends:

I went to Moscow as the foreign minister of an independent sovereign state; I returned as a Soviet slave.

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Above: Conflicting cartoon images of the Marshall Plan and the Cold War. Fitzpatrick, in the St. Louis Post-Dispatch, shows the Kremlin’s noose tightening around Czechoslovakia. Krokodil has the Europeans on their knees before their US paymaster. 

The Poles forced them into line as well, and their government made a similar announcement. Stalin had his way; the Eastern Bloc now voted as one and from now on each state took its orders from the Kremlin. Europe was divided and the Cold War was irreparably underway. From Washington’s perspective, the Marshall Plan was designed to shore up the European economies, ensure the future stability of the continent by avoiding economic catastrophe, thereby preventing the spread of communism, which was already thriving amidst the economic chaos of Western Europe. But from the Kremlin’s point of view, the plan appeared to be an act of economic aggression. Stalin had felt his own power threatened by the lure of the almighty ‘greenback’. In Washington, Stalin’s opposition to the plan was seen as an aggressive act in itself. The US ambassador in Moscow described it as nothing less than a declaration of war by the Soviet Union. Both sides were now locked in mutual suspicion and distrust and the effects of the Marshall Plan was to make the Iron Curtain a more permanent feature of postwar Europe.

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The same day as the Conference on European Economic Cooperation (CEEC) opened in Paris, 12th July 1947, the first meeting of Cominform, the short form of the Communist Information Bureau took place in the village of Szkliarska Poremba in Poland. A revival of the old Communist alliance, or Comintern, established by Lenin, this was a direct response to the Marshall Plan, and an attempt to consolidate Stalin’s control over the Soviet satellites and to bring unanimity in Eastern Bloc strategy. Andrei Zhdanov, the Soviet ideologue, Stalin’s representative at the meeting, denounced the Truman Doctrine as aggressive and, playing on Eastern European fears of resurgent Nazism, accused the Marshall Plan of trying to revive German industry under the control of American financiers. Along with the representatives of the Communist parties of France and Italy, which had been encouraged to operate through left-wing coalitions in a Popular Front, the Czechoslovak Communist delegates were ordered to move away from their coalition and to seize the initiative.

The coalition government in Czechoslovakia had previously operated on the principle that Czechoslovak interests were best served by looking both to the West and to the East, an idea dear to the hearts of both President Benes and Foreign Minister Masaryk. But as relations between the two power blocs worsened, the position of Czechoslovakia, straddling East and West, became ever more untenable. Masaryk, though not a Communist, felt increasingly cut off by the West after Prague’s failure to participate in the Marshall Plan. Washington regarded the capitulation to Stalin over the Paris conference as signifying that Czechoslovakia was now part of the Soviet bloc. The harvest of 1947 was especially bad in Czechoslovakia, with the yield of grain just two-thirds of that expected and the potato crop only half. The need for outside help was desperate, and Masaryk appealed to Washington, but the US made it clear that there would be no aid and no loans until Prague’s political stance changed. Although Masaryk tried to convince the US government that the Soviet line had been forced on them, he failed to change the American position. Then the Soviets promised Czechoslovakia 600,000 tons of grain, which helped prevent starvation and won wide support for Stalin among the Czechoslovak people. Foreign trade Minister Hubert Ripka said…

Those idiots in Washington have driven us straight into the Stalinist camp.

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When the Soviet deputy foreign minister arrived in Prague, supposedly to oversee the delivery of the promised grain, the non-Communist ministers took a gamble. On 20th February, they resigned from office, hoping to force an early election. But President Benes, who was seriously ill, wavered. Following orders from the Cominform, the Communists took to the streets, organising giant rallies and whipping up popular support. They used the police to arrest and intimidate opponents and formed workers’ assemblies at factories. On 25th February, fearing civil war, Benes allowed Gottwald to form a new Communist-led government. In the picture on the left above, Klement Gottwald is seen calling for the formation of a new Communist government, while President Benes stands to his left. In the picture on the right, units of armed factory workers march to a mass gathering in support of the takeover in the capital.

In five days, the Communists had taken power in Prague and Czechoslovakia was sentenced to membership of the Soviet camp for more than forty years. Masaryk remained as foreign minister but was now a broken man, his attempt to bridge East and West having failed. A fortnight later, he mysteriously fell to his death from the window of his apartment in the Foreign Ministry. Thousands of mourners lined the streets for his funeral, which marked the end of the free Republic of Czechoslovakia which had been founded by his father, Tomás Masaryk thirty years earlier. News of the Communist takeover in Prague sent shock waves through Washington, where the Marshall Plan was still making its way through Congress. Now the case had been made by events: without US intervention, Europe would fall to the Communists, both East and West. Had Washington not written off Czechoslovakia as an Eastern bloc state, refusing to help the non-Communists, the outcome of those events might have been different. This was a harsh but salient lesson for the US administration, but it made matters worse by talk of possible immediate conflict. The Navy secretary began steps to prepare the American people for war and the Joint Chiefs of Staff drew up an emergency war plan to meet a Soviet invasion of Western Europe. On 17th March, Truman addressed a joint session of Congress with a fighting speech:

The Soviet Union and its agents have destroyed the independence and democratic character of a whole series of nations in Eastern and Central Europe. … It is this ruthless course of action, and the clear design to extend it to the remaining free nations of Europe, that have brought about the critical situation in Europe today. The tragic death of the Republic of Czechoslovakia has sent a shock wave through the civilized world. … There are times in world history when it is far wiser to act than to hesitate. There is some risk involved in action – there always is. But there is far more risk involved in failure to act.

Truman asked for the approval of the Marshall Plan and for the enactment of universal military training and selective service. On 3rd April, Congress approved $5.3 billion in Marshall aid. Two weeks later, the sixteen European nations who had met in Paris the previous year, signed the agreement which established the OEEC, the body which the US Administration to formalise requests for aid, recommend each country’s share, and help in its distribution. Within weeks the first shipments of food aid were arriving in Europe. Next came fertilisers and tractors, to increase agricultural productivity. Then came machines for industry. The tap of Marshall aid had been turned on, but too late as far as Poland and Czechoslovakia were concerned. The plan was political as well as economic. It grew out of the desire to prevent the spread of communism into Western Europe. No longer could European nations sit on the fence. Each country had to choose whether it belonged to the Western or the Soviet bloc. In the immediate post-war years the situation had been fluid, but the Marshall Plan helped to accelerate the division of Europe. Forced to reject Marshall aid, Czechoslovakia became part of the Soviet sphere of influence, albeit abandoned to this fate by Washington, sacrificed once more by the Western powers. On the other hand, France and Italy were now firmly in the Western camp.

Paranoia permeated the Soviet system and Communist Central/GeorgeEastern Europe in the late forties and early fifties, just as it had done during Stalin’s reign of terror in the thirties. Hundreds of thousands of people were sent to labour camps and many thousands, loyal party members, were executed. In Hungary, as many as one in three families had a member in jail during the Stalinist period. As one Hungarian once told me, recalling his childhood forty years earlier, George Orwell’s Nineteen Eighty-Four, written in 1948 but only recently (in 1988) available to Hungarians to read, was 1948 in Hungary. In the Soviet Union and throughout the Soviet bloc, conformity was everything and no dissent was allowed. Independent thought was fiercely tracked down, rooted out, and repressed.

In the first phase of the Soviet takeover of Central/ Eastern Europe, Communist parties, with the backing of the Kremlin, had taken control of the central apparatus of each state.  Sometimes there were tensions between the local Communists, who had been part of the underground resistance to the Nazis, and those who had been exiled in Moscow and who had been appointed at the behest of Stalin to senior positions in the local parties. Initially, they were devoted to condemning their political opponents as class enemies. In 1948 a new phase began in the Sovietisation of the ‘satellite’ states, in which each nation was to be politically controlled by its Communist Party, and each local party was to be subject to absolute control from Moscow.

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In Hungary, the arrests had begun at Advent in 1946, with the seizure of lawyer and politician, György Donáth by the ÁVO, the state security police, on a charge of conspiracy against the Republic. Prior to his arrest, Donáth had left Budapest for a pre-Christmas vacation near the Hungarian border, so the ÁVO, who had had him under surveillance for some time, feared that he might attempt to flee the country and wasted no time in arresting him there, using the secret military police, KATPOL. Following this, a number of his associates were also arrested. In order to save these fellow leaders of the secret Hungarian Fraternal Community (MTK), which he had reactivated in the spring of 1946, he took all responsibility upon himself. He was condemned to death by a People’s Tribunal on 1st April 1947, and executed on 23rd October the same year. Cardinal Mindszenty, the representative of the religious majority in the country, was arrested soon after and put on trial on 3rd February 1949.

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(Following his release from prison a week before, in 1956)

In Czechoslovakia, where the Party had seized control in February 1948, a series of ‘show trials’ highlighted different stages in the imposition of Communist authority. Between 1948 and 1952 death sentences were passed against 233 political prisoners – intellectuals, independent thinkers, socialists, Christians. The execution of Zavis Kalandra, an associate of the Surrealists and a Marxist who had split with the prewar Communist Party, shocked Prague. Nearly 150,000 people were made political prisoners in Czechoslovakia, seven thousand Socialist Party members among them.

The crisis that prompted this strengthening of control was the split with Tito in 1948. The war-time partisan leader of Yugoslavia headed the only Communist country in Eastern Europe where power was not imposed by Moscow but came through his own popularity and strength. Although Stalin’s favourite for a while, Tito was soon out of favour with him for resisting the Soviet control of both Yugoslavia’s economy and its Communist Party.  In June 1948, Yugoslavia was expelled from Cominform for having placed itself outside the family of the fraternal Communist parties. Stalin even prepared plans for a military intervention, but later decided against it. The ‘mutiny’ in Yugoslavia now gave Stalin the opportunity he sought to reinforce his power. He could now point not just to an external ‘imperialist’ enemy, but to an ‘enemy within’. ‘Titoism’ became the Kremlin’s excuse for establishing a tighter grip on the Communist parties of Eastern Europe. Between 1948 and 1953 all the parties were forced through a crash programme of Stalinisation – five-year plans, forced collectivisation, the development of heavy industry, together with tighter Party control over the army and the bureaucratisation of the Party itself. To maintain discipline the satellites were made to employ a vast technology of repression.

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‘Show trials’ were used were used to reinforce terror; “justice” became an instrument of state tyranny in order to procure both public obedience and the total subservience of the local party to Soviet control. The accused were forced, by torture and deprivation, to ‘confess’ to crimes against the state. Communist Party members who showed any sign of independence or ‘Titoism’ were ruthlessly purged. The most significant of these trials was that of László Rajk in Hungary. Rajk had fought in the Spanish Civil War and had spent three years in France before joining the resistance in Hungary. After the war, he became the most popular member of the Communist leadership. Although he had led the Communist liquidation of the Catholic Church, he was now himself about to become a victim of Stalinist repression. He was Rákosi’s great opponent and so had to be eliminated by him. Under the supervision of Soviet adviser General Fyodor Byelkin, confessions were concocted to do with a Western imperialist and pro-Tito plot within the Hungarian Communist Party. Rajk was put under immense pressure, including torture, being told he must sacrifice himself for the sake of the Party. János Kádár, an old party friend and godfather to Rajk’s son, told him that he must confess to being a Titoist spy and that he and his family would be able to start a new life in Russia. Rajk agreed, but on 24th September 1949, he and two other defendants were sentenced to death and executed a month later. In the picture below, Rajk is pictured on the left, appearing at his trial.

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The Rajk confession and trial became a model for show trials across Eastern Europe. But in Hungary itself, the trial and execution of Rajk, Szebeny and General Pálffy-Oesterreicher were to ‘fatally’ undermine the Rákosi régime. Rákosi and Gerő were typical of the Communists who had lived in exile in Moscow during the war. Compared with Rajk, and the later Premier Imre Nagy, they were never popular within the Party itself, never mind the wider population. Yet, with Stalin’s support, they were enabled to remain in power until 1953, and were even, briefly, restored to power by the Kremlin in 1955. A recent publication in translation of the memoirs of the Hungarian diplomat, Domokos Szent-Iványi, has revealed how, prior to his arrest and imprisonment in 1946, he had made plans to replace them with General Pálffi-Oesterreicher, the head of the dreaded military police, who had had him arrested and placed him in ‘a very small and very dirty hole of a dungeon’ under the police headquarters:

During our conversations I did my best to convince ‘Pálfi’ that the greatest evil to the Hungarian people, to the country, and even to the Communists and the Soviet Union consisted in the policy and machinations of Rákosi and of his gang, and seemingly I succeeded in my efforts in this respect. The execution of Rajk, Szebeny and Pálffy-Oesterreicher seemingly strengthened Rákosi’s position. This, however, was not so. The ruthless liquidation of old Communist Party members was one of the main acts which some years later led to Rákosi’s downfall.

The light-mindedness of Pálffy-Oesterreicher contributed to his own downfall and put my life in peril also. It happened once that Pálffi, sending one of his collaborators, … made the grave error of instructing this man to tell me that “the pact between Pálffi and Szent-Iványi is still effective”.    

In the course of the Rajk trial, my name and that of the “conspirators” were brought up by the prosecution, and Szebeny, Rajk’s Secretary of State, made a statement to the effect that the Rajk-Pálffi group sympathised with the so-called conspirators with whom they intended to co-operate “as soon as the Rákosi gang are out of power”. Rózsa, a young man (whom Pálffy had used as a go-between with Szent-Iványi in prison) … then reported this affair to Rákosi and the consequences as we know were very grave for all parties involved.

Right after the arrest of Rajk, Szebeny, Pálffy-Oesterreicher and many of their followers, I was locked up in a single cell in the so-called “Death Section” of Gyüjtő Prison where those prisoners were kept who were to be executed. … an old Communist Party member whispered to me in the silence … that I was there due to the Rajk case. Among the many indictments brought up against Rajk and Pálfi, their contacts with me and “the conspirators” had particular weight.

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Szent-Iványi argued that the reaction to the Rajk trial, among others, demonstrated that the Hungarian people were sharply opposed to any Soviet policy which was carried out by  Rákosi, Gérő and others in the pro-Moscow leadership. Yet, until Rajk’s rehabilitation in 1955 and especially his re-burial on 6th October, which amounted to the first open demonstration against the Rákosi régime, there was little that could effectively be done to bring it down, either from inside prison or on the outside. He later reflected on the reasons for this:

This was a most distressing time, dominated by man at his most vengeful, envious and cruel.

Revenge and hatred was harboured by all kinds, prisoners and guards alike. Ex-soldiers who had endured the cruelties and horrors of battles, hated those who had lived peacefully in their own homes. … Jewish guards and Jewish prisoners hated their Gentile neighbours for their past suffering. Ex-Arrow-Cross members (fascists) were hated by Communists and Jews. It is strange that the common criminals in general hated nobody; they wanted money and ultimately did not hate their victims … but I could believe that they themselves had some kind of sympathy for their victims, like Tyrrell in Richard III.

Hatred was born of emotions and passion, and emotions had too many times intruded into Hungarian political life also, leading the country and its people to tragedy.

During my detention and prison years I had time to think and ponder over the political blunders, emotions and in particular the passions, of bygone years. Szálasi (the ‘Arrow Cross’ Premier in 1944-45) and Rákosi can be considered as typical examples of authors of such blunders. Both men felt that they were not popular in the country and that they had just a small fraction of the population behind them. In consequence they needed support from abroad. Szalási found his support in Hitlerite Germany, and in consequence adopted Nazi political principles and methods. These include Anti-Semitism and a “foreign policy” against the Allied Powers. Rákosi got the necessary support in Stalin-Beria run Soviet Russia and based his interior policy on revenge and jealousy. His vanity could not tolerate differences of opinion, whether outside the Communist Party … or inside the Party … Wherever he found opposition to his policy or to his person he set out to liquidate real or imaginary opponents.

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Above: Lavrenti Pavlovich Beria (1899-1953). When he began to think of himself as Stalin’s successor, the other members of the Politburo were alarmed that he might attempt to seize power following Stalin’s death. He was arrested, tried in his absence, and shot some time before December 1953, when his death was announced.

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The lack of popular support for Rákosi and his dependence on Stalin and Beria was clearly demonstrated by the establishment of the first Imre Nagy government following Stalin’s death in 1953. Although Moscow then replaced the initial Nagy government by one headed by Gérő and Rákosi, the latter was finally ousted by them in July 1956. Although the subsequent Uprising was put down by the invasion of the Soviet Union under Khrushchev, Szent-Iványi was at pains to point out in his memoirs that the Soviet Union finally dropped the Stalinist leadership of Hungary and that the Kádár régime (János Kádár, left) which it installed was one which was able to win the confidence of both the Hungarian people and of the Soviet Union, bringing peace to the country and its inhabitants.

Szent-Iványi reflected on how the life of the prisoners he had witnessed and experienced under the Rákosi régime, including health conditions, food, and fresh air had steadily worsened until it was impacted by these events:

The fact that some of the prisoners were able to survive was down to two causes; firstly, the honest among the jailers, in the majority of Hungarian peasant stock, did their best to alleviate the sufferings of the prisoners as well as to improve upon the harsh and very often cruel conditions imposed by Rákosi’s régime upon political prisoners; secondly, the death of Stalin and the elimination of Beria in 1953 … The most important “innovation” was that after more than a full year or so, the daily walks for prisoners as prescribed by law were resumed. Under the more humane régime of Premier Imre Nagy further improvements took place. And two years later prisoners were released in increasing numbers. By 1956 … many of the political prisoners were already outside the prison walls or were preparing to be released.Without these two factors, few prisoners would have survived the prison system after ten or twelve years of endless suffering.

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Szent-Iványi was himself released in mid-September, five weeks before what he called ‘the October Revolution’. But, contrary to the claims of the pro-Rákosi faction’s claims, neither he nor the ex-political-prisoners played a major role in the events, which I have covered in great detail elsewhere. Even the hated ÁVO, the Secret Police, admitted that none of the “Conspirators” of 1946-48 had actively participated in the Revolution and that…

… the blame has remained firmly on the shoulders of the provocateurs, the Rákosi-Hegedüs-Gerő gang which, of course, greatly contributed to the stability and success of the Kádár regime. … The dictatorship of Rákosi and his gang had no other support than the bayonets of the Red Army or rather the power of the Russian Communist Party and of the Red Army.

With real and imaginary political opponents exterminated, the next phase of Stalinisation in Czechoslovakia was a purge of the Communist Party itself. One out of every four Czechoslovak party members was removed. Stalin wanted to make an example of one highly placed ‘comrade’, Rudolf Slánsky, the general secretary of the Czech Communist Party, who was then leading a security purge within it. Stalin personally ordered Klement Gottwald, who had replaced Eduard Benes as President of the country, to arrest Slánsky. When Gottwald hesitated, Stalin sent General Alexei Beschastnov and two ‘assistants’ to Prague. Gottwald gave in. On 21 November 1951, Slánsky was arrested. In this case, there was a new ingredient in the Moscow mix: Slánsky and ten of the other high-ranking Czechoslovak party members arrested at that time were Jews.

The case against Slánsky was based on Stalin’s fear of an imagined Zionist, pro-Western conspiracy. Stalin appeared to believe that there was a conspiracy led by American Jewish capitalists and the Israeli government to dominate the world and to wage a new war against communism. This represented a complete turnaround by Stalin on Israel. The Soviet Union had supported the struggle of the Zionists against the Palestinian Arabs and had supplied them, through Czechoslovakia, with essential weapons in 1947 and 1948. The Soviet Union was the first state to recognise de jure the state of Israel, within minutes of its birth in May 1948. Two years later, perhaps fearful of Israel’s appeal to the hundreds of thousands of Russian Jews, and suspicious of its close ties to the United States, Stalin became convinced that Israel was in the vanguard of an international Jewish conspiracy against him.

011Slánsky was, in fact, a loyal Stalinist. But he was forced to confess that, due to his bourgeois and Jewish origins, he had never been a true Communist and that he was now an American spy. Slánsky and his co-accused were told that their sacrifice was for the party’s good. Their confessions were written out in detail by Soviet advisers in Prague, and each of the accused was carefully rehearsed for his “performance” at the trial to come. They had time to learn their “confessions” by heart, for preparations took a year. In November 1952, the show trial began. One by one, Slánsky and the others confessed to the most absurd charges made against them by their former associates.

Public prosecutor Josef Urvalek read out the indictment, condemning the gang of traitors and criminals who had infiltrated the Communist Party on behalf of an evil pro-Zionist, Western conspiracy. It was now time, he said, for the people’s vengeance. The accused wondered how Urvalek could fein such conviction. The ‘defence’ lawyers admitted that the evidence against their clients confirmed their guilt. In his last statement, Slánsky said, “I deserve no other end to my criminal life but that proposed by the Public Prosecutor.” Others stated, “I realise that however harsh the penalty – and whatever it is, it will be just – I will never be able to make up for the damage I have caused”; “I beg the state tribunal to appreciate and condemn my treachery with the maximum severity and firmness.” Eleven were condemned to death; three were sentenced to life imprisonment. When the sentences were announced, the court was silent. No one could be proud of what had been done. A week later, Slánsky and the other ten were executed.

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Absolute rule demanded absolute obedience, but it helped if people loved their leader rather than feared him. In the Soviet Union, the cult of Stalin was omnipresent. In the picture on the left above, Stalin appears as the ‘Father of His People’ during the Great Patriotic War, and on the right, world Communist leaders gathered in the Bolshoi Theatre to celebrate Stalin’s seventieth birthday on 21st December 1949. Stalin treated the whole of Central/Eastern Europe as his domain, with the leaders of the Communist parties as his ‘vassals’, obliged to carry out his instructions without question. When he died on March 1953, the new spirit which emerged from the Kremlin caused nervousness among the various ‘mini-Stalins’ who held power, largely due to his support. In the Soviet zone of Germany, control was in the hands of Walter Ulbricht, a hard-line Stalinist of the old school who had spent most of the era of the Third Reich in Moscow. One of Stalin’s most loyal lieutenants, he had begun, in the summer of 1952, the accelerated construction of socialism in East Germany, aimed at building a strict command economy. A huge programme of farm collectivisation was started, along with a rush towards Soviet-style industrialisation, with great emphasis on heavy industry at the expense of consumer goods. Stalin had intended to force the East German economy to complement that of the Soviet Union, to supply the USSR with iron and steel, of which it was in desperate need. Ulbricht allowed no opposition inside East Germany. His secret police, the ‘Stasi’, were everywhere, urging friends to inform on friends, workers on fellow-workers.

007

Ulbricht was therefore uneasy with the changes taking place in Moscow. In May 1953, the collective leadership in the Kremlin summoned him to Moscow. For some time, the Kremlin had been considering a review of its German policy, supporting the idea of a re-unified but neutral Germany. The Soviets had no hope of controlling all of Germany, but a neutral Germany would at least prevent the western half, with its huge industrial base, from becoming a permanent part of the Western bloc. The Kremlin encouraged Ulbricht to follow a new course of liberalisation and to ease the pace of enforced industrialisation. But Ulbricht ignored the advice, and in June imposed new work quotas on industrial workers, demanding higher productivity without any increase in pay. Angry at their expectations being dashed, East German workers erupted in protests calling for a lifting of the new quotas. As their employer was the state, industrial protest over work norms soon became a political demand for free elections and a call for a general strike. The American radio station in West Berlin, RIAS, publicised the demands and reported that there would be major demonstrations the following day. On 17 June protests took place in East Berlin, Leipzig, Dresden, Magdeburg, and all the major towns of East Germany.

006

Over the next four days, more than 400,000 German workers took to the streets. Ulbricht and his unpopular government were terrified by this vast, spontaneous display of worker power. But the demonstrations lacked any central direction or coherent organisation. Beria called on the Soviet tank units stationed all over East Germany to confront the strikers, to prevent the Ulbricht régime from collapsing. He told the Soviet high command “not to spare bullets” in suppressing the rising, and forty workers were killed, more than four hundred wounded. When thousands of strike leaders were arrested, the demonstrations ended as suddenly as they had begun. Ulbricht had learned a lesson and in time acceded to many of the workers’ economic demands. There were also anti-government riots in Czechoslovakia, and strikes in Hungary and Romania. There was even a prisoners’ strike in Siberia.

011

The Soviets saw behind these events a well-orchestrated campaign to undermine the Soviet Union and its allies, part of the “rollback” policy of the new Eisenhower administration, which had replaced the Truman Doctrine of 1947. The United States ‘suggested’ openly that it would now take the initiative in ‘rolling back’ communism wherever possible. The architect of this new, more ‘aggressive’ policy in support of ‘freedom’ movements in Eastern Europe was the new Secretary of State, John Foster Dulles, who proclaimed a new era of liberty, not enslavement. He added that…

… the Eisenhower era begins as the Stalin era ends. … For ten years the world has been dominated by the malignant power of Stalin. Now Stalin is dead. He cannot bequeath to anyone his prestige. 

004

The British prime minister, Winston Churchill, had written to Eisenhower suggesting a meeting with Malenkov in case both of us together or separately be called to account if no attempt were made to turn over a new leaf. But for the moment Eisenhower had ruled out any direct meeting with the new Soviet leadership. In reality, it was never clear how this new policy could be put into practice, especially in Europe, without provoking a direct confrontation. On 16 April 1953, Eisenhower had made a speech in which he called on the Kremlin to demonstrate that it had broken with Stalin’s legacy by offering “concrete evidence” of a concern for peace. He had appeared to be holding out an olive branch, hoping the Kremlin would grab it. His ‘Chance for Peace’ speech had been widely reported in the Soviet Union and throughout Central/Eastern Europe, raising hopes of ‘a thaw’ in the Cold War.

Only two days later, however, Dulles spoke in much harsher terms, declaring we are not dancing to any Russian tune. A secret report for the National Security Council had also concluded that the Soviet interest in peace was illusory, but at the same time that any military confrontation would be long drawn out. But Radio Free Europe continued to promise American assistance for resistance to Soviet control in its broadcasts into the satellite countries. In doing so, it was promising more than the West was willing or able to deliver. In Hungary in 1956, these ‘mixed messages’ were to have tragic consequences.

005

The power struggle in the Kremlin now reached a new intensity. Molotov continued to see the Cold War as an ideological conflict in which the capitalist system would ultimately destroy itself, and his diplomacy exploited the differences he perceived between the United States and its Western European allies. However, for Malenkov and Beria, the conflict was viewed in strictly practical terms.

017

First of all, the Cold War was an arms race. Stalin had quickly realized how important it was to break the US atomic monopoly and in 1945 had put Beria in charge of the Soviet atom bomb project. In the summer of 1949, several years ahead of the West’s predictions, the first Soviet bomb had been successfully tested. After Stalin’s death, Beria took more direct control of the Soviet nuclear project, ordering scientists to race ahead with developing a hydrogen bomb to rival America’s thermonuclear weapons. If Soviet strength rested on ever more powerful nuclear weapons and he was in charge of developing them, Beria calculated, then he would control the mainsprings of Soviet power. But this sort of arrogance was no longer acceptable inside the Kremlin. Within days of the quelling of the rising in East Germany, Khrushchev became convinced that Beria was preparing to make a grab for absolute power. Malenkov denounced Beria at a meeting of the Presidium. Forever tainted from heading Stalin’s terror apparatus, Beria was arrested on trumped-up charges of being a Western agent. In what to many seemed a just reversal of fate, the man who had sent hundreds to their deaths was not even allowed to attend his own trial. He was found guilty and shot. His removal marked a huge shift in the power balance within the Kremlin, but he was the only Soviet leader at this juncture whose fate was settled by a bullet.

005

During the next two years, Khrushchev simply out-manoeuvred his remaining rivals to become the new leader. In September 1954 he visited Beijing to repair the damage to Sino-Soviet relations resulting from the Korean War, agreeing to new trade terms that were far more beneficial to the Chinese than they had been under Stalin. In Europe, Khrushchev negotiated a farsighted agreement with Austria. Soviet troops, occupying part of the country since the end of the war, were withdrawn in return for an Austrian commitment to neutrality. In May 1955 a state treaty was signed in Vienna by the four occupying powers, and Austria remained neutral throughout the Cold War. In the same month, he also made a dramatic visit to Yugoslavia to try to “bury the hatchet” with Tito. However, he was not so pleased when, also in May, the Western Allies formally ended their occupation of West Germany, and the Federal Republic was admitted to NATO. The response of Moscow to this setback was the creation of the Warsaw Pact, a formal military alliance of all the ‘satellite’ states with the Soviet Union and each other. The Pact was really no more than a codification of the existing military dominance of the USSR over Central/Eastern Europe, but it did signify the completion of the division of Europe into two rival camps.

003

015

The rejection of Stalinism and the widespread acceptance of the new process of reform culminated in the Twentieth Congress of the Soviet Communist Party in Moscow in February 1956. This was not merely a Soviet Russian affair, as delegates from throughout the Communist world, and from non-aligned movements involved in “liberation struggles” with colonial powers were invited to Moscow. In his set-piece speech, Khrushchev challenged the conventional Marxist/Leninist view that war between communism and capitalism was inevitable. Then, on the last day of the Congress, Khrushchev called all the Soviet delegates together in a closed session. For six hours, he denounced Stalin’s ‘reign of terror’ and its crimes, going back to the purges of the 1930s. The speech was never intended to remain secret; copies were immediately made available to party officials and to foreign Communist parties. News of the speech spread by word of mouth to millions of citizens within the Soviet bloc. Washington also acquired a copy of the text through the CIA and Mossad, Israeli intelligence. It was passed on to the press and appeared in Western newspapers in June 1956. The Eisenhower administration was convinced that genuine change was taking place in the Soviet Union; the Chinese, on the other hand, were deeply offended. In Eastern Europe, many Communist party leaders, gravely upset by the impact, were concerned for the continued stability of their authoritarian régimes.

002

Two months after the Party Congress, the Kremlin dissolved the Cominform, the organisation that Stalin had created in 1947 to impose his orthodoxy over the satellites. Molotov was dismissed as foreign minister and banished to Mongolia as Soviet ambassador. A loyal supporter of Stalin throughout his career, Molotov had been firmly opposed to any reconciliation with Tito, but now the door was open again. Tito made a state visit to Moscow in June 1956, amidst much pomp. Nothing could have been more symbolic of the new Soviet attitude towards Eastern Europe. But how far would the Soviets be prepared to go in relaxing its influence there?  In both Poland and Hungary, now released from the yoke of Stalinist rule after almost a decade down at heel, people wanted more control than ever over their own individual lives and their national identities and destinies.

 

Sources:

Jeremy Isaacs (1998), Cold War. London: Bantam Press (Transworld Publishers).

Mark Almond, Jeremy Black, et.al. (2003), The Times History of Europe. London: Times Books (Harper Collins Publishers).

Gyula Kodolányi & Nóra Szekér (eds.) (2013), Domokos Szent-Iványi: The Hungarian Independence Movement, 1939-46. Budapest: Hungarian Review Books.

 

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Britain Seventy Years Ago, 1948-49: Race, Class and Culture.   1 comment

Posted May 29, 2018 by TeamBritanniaHu in Abdication, Affluence, Anglican Reformation, anti-Semitism, Austerity, Birmingham, British history, Christian Faith, Christian Socialism, Christianity, Church, Civilization, Co-operativism, Cold War, Commemoration, Commonwealth, Coventry, decolonisation, democracy, Egalitarianism, Empire, Eugenics, Europe, Factories, Family, Germany, homosexuality, Immigration, India, Integration, Ireland, Jerusalem, Jews, Literature, Marriage, Middle East, Midlands, Migration, Militancy, Monarchy, morality, Mythology, Narrative, National Health Service (NHS), nationalisation, Nationality, Nonconformist Chapels, Normalcy, Population, Poverty, Reconciliation, Remembrance, Second World War, Trade Unionism, Unemployment, Welfare State, West Midlands, World War Two

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