Private Eye and Lobster on the Pinay Circle

This fortnight’s Private Eye, for 25th January to 7th February 2019 also published a very interesting article for conspiracy watchers on the Pinay Circle, now simply known as ‘Le Cercle’. This is a secret organization of extreme right-wing politicians, intelligence agents and businessmen. The Eye’s article reports how two Tory MPs, Mark Garnier and Greg Hands, attended one of their meetings in Washington last June. The article, ‘Spooky Circles’ on page 11, runs

DESPITE the convulsions in the Tory party, two former trade ministers still found time before Christmas to attend a secretive conference in the US stuffed with spies and business people.

Wyre Forest MP Mark Garnier, sacked as international trade minister a year ago after calling his secretary “sugar tits” and asking her to buy sex toys, and Chelsea and Fulham MP Greg Hands, a minister in the same department until he resigned over Heathrow expansion last June, both attended a Washington meeting of Le Cercle, a hush-hush foreign affairs group with a strong interest in international security.

According to the latest parliamentary register, the MPs’ four-to-five day trips cost 4,000 pounds per MP. Hands says he spoke on “international trade”. Given their former ministerial posts, it seems likely both men discussed the UK’s prospects post-Brexit.

Le Cercle was founded in the 1950s by a former French prime minister and a former German chancellor as a pro-European body that would cement Franco-German relations and strengthen US-European alliances. Today it has strong links with the intelligence world and to hawkish US politicians. Former Tory minister Alan Clark claimed it was funded by the CIA.

As Wikileaks revealed via a letter from former Tory defence secretary Michael Ancram, who chaired Le Cercle in 2012, its meetings are “attended by about 80 to 100 people” who are “largely European and American – Members of Parliament, diplomats, members of the intelligence community, commentators and businessmen from over 25 countries”. Who they are and what they discuss is never fully disclosed as “there is no Press and everything that is said is off the record”.

Hawkish free marketer US politicians like Paul Wolfowitz and Donald Rumsfeld have been notable Le Cercle attendees. There is widespread suspicion the group receives corporate as well as intelligence funding, but the source is also secret. What better way for Tories to explore possible new trade relations with the US and Europe than a secretive trip to DC to meet un-named spies, Republicans and business people?

Hands is particularly well placed to make sure multinationals influence new trade relations. In November, five months after resigning, he accepted a part-time job as a “political consultant/adviser” to giant French bank BNP Paribas which is reported paying him 108,000 pounds a year on top of his MP’s salary.

The long-running conspiracies/parapolitical magazine Lobster has published several articles on the Pinay Circle, as it used to be called, way back in issues 11, 17, and 18. Issue 17 contained two reports from the German intelligence agencies on the circle, analyzing a piece of correspondence which suggested that it was running plots in Britain, Germany and elsewhere to promote right-wing politicians – Thatcher over here, and the notorious Franz-Josef Strauss in the Bundesrepublik. David Teacher’s article, ‘The Pinay Circle and Destabilisation in Europe’ in Lobster 18, page 22, contains more information on the Circle itself, and its possible involvement in various plots to destabilize left-wing or opposition governments across the world. This contained the following passage briefly describing the organization and its activities.

The Pinacy Circle (also called the Cercle Violet) is an international right-wing propaganda group which brings together serving or retired intelligence officers and politicians with links to right-wing intelligence factions from most of the countries in Europe. The intelligence community has been represented by SIS Chief from 1978-82, Arthur ‘Dicke’ Franks, SIS Department Head Nicholas Elliott, CIA Director William Colby, Swiss Military Intelligence Chief of Provisions, Colonel Botta, SDECE chief from 1970-81 Alexandre de Marenches, and, last but not least, the man who took over the running of the Circle when Pinay got too old, Jean Violet, a Parisian Lawyer who worked for the SDECE from 1957-70. violet became so much an ’eminence grise’ in the SCESE that Alexandre de Marenches had to dispense with his services in order to assert his authority as new SDECE chief in 1970. This episode has however not prevented them from working together within the Circle. At the time the Langemann papers were written, both Franks and Marenches were serving heads of British and French intelligence respectively.

On the political side, Pinay – a former French Prime Minister – forged links with Nixon, Kissinger and Pompidou. The Circle’s present members include Giulio Andreotti, former Italian Prime Minister; Portuguese putschist General Antonio de Spinola; former Franco minister and senior Opus Dei member Silvio Munoz; and Vatican prelate and BND agent Monsignore Brunello. Paul violet, Jean Violet’s son, is one of Chirac’s closest advisors, nicknamed ‘the adjutant’ by Canard Enchaine. Langemann also reports that Sir Arthur Franks and Nicholas Elliott were invited to Chequers for a working meeting with Mrs Thatcher, after her election. But perhaps the key political figure was the late Franz Josef Strauss, Bavarian Premier and Langemann’s boss.

Strauss was a close friend of Alexandre de Marenches and was a frequ8ent visitor to the SDECE’s headquarters during Marenches’ time. The Hanns-Seidel-Stiftung, the political trust attached to Strauss’ Christian Social Union party, is an important group in international parapolitical manipulation. Active in Latin America for the Contras, supporting Mobuto in Zaire, involved in the Fiji coup in 1987, it was caught diverting state development aid from Germany into right-wing party coffers in Ecuador in the same year. Strauss and CSU were the main beneficiaries of identified Pinay Circle activities; i.e. the promotion of right-wing European politicians through Brian Crozier, Robert Moss, Fred Luchsinger of the Neue Zurcher Zeitung and Gerhard Luwenthal, anchorman on current affairs programmes for ZDF television, the major German network.

The Pinacy Circle has a wide range of contacts and its members interlock with the whole panoply of right-wing/parallel intelligence and propaganda agencies – WACL, Heritage Foundation, Western Goals, ISC, Freedom Association, Interdoc, the Bilderberg Group, the Jonathan Institute, P2, Opus Dei, the Moonies’ front CAUSA, IGFM ((International Society for Human Rights), and Resistance International. Lowenthal, for instance, is a member of IGFM, Resistance International, WACL, CAUSA, the Jonathan Institute, Konservative Aktion and the European Institute on Security.

The Pinay Circle’s significance lies in the fact that it is a forum which brings together the international linkmen of the Right like Crozier, Moss and Lowenthal, with secret service chiefs like Franks and Marenches. Through such contacts it can intervene by media action or covert funding whenever and wherever a political friend is in need of support. (p. 22).

The minutes of the Pinay Circle’s meeting in Zurich in June 1980s discussed the possibilities of securing the election of Strauss in Germany and Ronald Reagan in the US. It also discussed the Saudis opening a radio transmitter to broadcast into Russia and supporting the Israeli intelligence unit. The evidence linking the Circle to attempts to remove left-wing politicians across the world was so strong that Teacher concluded that

It is becoming more and more apparent that the treatment reserved for Harold Wilson at the hands of the intelligence services was only the UK end of an international phenomenon. Around 1973-5 a surprising number of governments were targeted by their own 9or others’) intelligence agencies because of their radical policies. If the world political scene in the 1960’s was one of the decolonization, then the 1970’s was the decade of destabilization. Among those cases of destabilization we were already aware of are:

– the UK: the concerted effort by elements in the British intelligence and security services, with CIA and BOSS, to bring down Wilson, Thorpe and Heath.

– the USA: the CIA’s Operation Chaos, the FBI’s Cointelpro programme and, of course, Watergate

– Australia: the loans scandal and other destabilization of Gough Whitlam by the CIA and SIS.

– West Germany: the destabilization of Willi Brandt because of his overture to ‘the other Germany’ through Ostpolitik. The CIA and MI5 (5) suspected Brandt of being recruited by Moscow during his wartime service with the resistance in Scandinavia. (p. 23).

The article also pointed out that Nicholas Elliott was a member of the Wilkinson/McWhirter/Ivens group, the Research Foundation for the Study of Terrorism, and speculate whether the Pinay Circle was involved in attempts to destabilise Mitterand’s government in France in 1974, the murder of Olof Palme in Sweden, and a possible attempted Fascist coup in Belgium in 1973. Of this latter, Teacher writes

Issue 17 of Celsius devotes six pages to the study of a coup d’état planned by gendarmerie officers and extreme right-wing groups in 1973. The article – ‘The big bad look of the 1970’s: the destabilization of the State’ – is based on the confessions of Martial Lekeu, a former gendarme who fled to the USA when sought for questioning in the ‘Killers of the Brabant Wallon’ enquiry. The killers, who specialized in holding-up supermarkets with maximum violence and minimum loot, killed 28 people between 1982 and 1985, always attacking the same chain of supermarkets on the same day of th week with the same kind of car, needlessly gunning people down and then escaping with cash rarely more than a few thousand pounds. Leukeu stated what many suspected: the killers were part of a political psy ops campaign aimed at reinforcing the State structures. Whether there is a link between the 1973 coup plans and the 1980’s destabilization remains to be seen: various parliamentary enquiries and comm9issions have so far failed to get to the bottom of the affair. (p. 24.) Teacher regrets, however, that information on the group and its activities are very limited, consisting of the 1972 ISC memo and the minutes released by Langemann in the Bavarian parliament in 1979-80.

It’s clear from this that the Circle is a very sinister organization with connections to other extreme right-wing groups, like WACL, whose name stands for World Anti-Communist League, and whose members include real Fascists and Nazis. I’m not surprised that the Tories sent two of their MPs to its meeting last year. The Tories’ right wing has always overlapped with some deeply unpleasant groups and organisations. Western Goals, an American Republican organization, according to Lobster, had a British subsidiary, Western Goals UK, which was also linked to them.

What is also interesting is that Private Eye published its piece on the Pinay Circle at all, considering how it called Nisar Malik a conspiracy theorist for believing in the Zionist control of the media. It seems the Eye is open to discussing real conspiracies, so long as they don’t involve the real, documented subterfuge and plotting of the Israeli state.

RT: Does MI5 Let Its Informants Commit Crimes?

This is another report from RT, which I don’t recall seeing reported in the British lamestream media. In this video put up on YouTube on 5th October 2018, the broadcaster’s reporter, Anastasia Churkina, discusses a court case being brought to a tribunal by four human rights groups, including Privacy International and Reprieve. They allege that MI5 has a policy of allowing its informants take part in serious crimes, such as murder, torture, sexual assault or other serious criminality, if it is in the public interest, according to their QC, Ben Jaffey.

This policy is supposed to have gone on for three decades, in various guises and under various prime ministers. Amongst the evidence is a heavily redacted note, and a letter from David Cameron to a judge involved in trying these cases, telling him that it has been government policy. It also tells him that such oversight does not provide endorsement of the legality of the policy, and that he would not be required to provide a view on whether any one particular case should be referred for prosecution.

This won’t surprise anyone, who’s read Lobster. The magazine, edited by Robin Ramsay, and now online, was set up to publicise and discuss real conspiracies by the western intelligence agencies to subvert the usual political processes. This has meant the overthrow of foreign governments that America and its allies find inconvenient or which pose a threat to American corporate or political interests. Which meant the CIA organizing coups to overthrow democratically elected left-wing regimes in South America, like Chile and Guatemala, and Britain and America collaborating in the overthrow of Mohammed Mossadeq in Iran.

It has also meant the monitoring and smearing of left-wing activists and political opponents in America and Britain. Domestically, there is much evidence that MI5 and the SIS collaborated with Loyalist paramilitaries in Northern Ireland, operating as death squads against leading Republicans. Over on this side of Irish Sea, there is a lot of evidence very strongly suggesting that MI5 were behind the 1970s smears against Harold Wilson that he was a KGB spy. There have also been serious questions about the deaths of Hilda Murrell and Blair Peach. I don’t doubt that the groups bringing this case are absolutely right.

Regarding the two groups named, Privacy International was launched in the 1990s to stop Britain becoming a surveillance state, in which the government uses electronic means to gather information on its citizens. These include the biometric ID cards and the plans for an ‘electronic bourse’ – basically, forms of electronic payment by card. The government has been keen to promote this scheme as it means that they can track how citizens spend their money.

Reprieve, from what I gather, is an organize that campaigns against the death penalty around the world. It has launched internet petitions calling on the government to intervene in the case of Britons imprisoned abroad and facing the death penalty, as well as direct appeals to the foreign governments involved. It’s kind of like Amnesty International.

I am really not surprised that RT seems to have been the only broadcaster to carry this story, unless I’m mistaken. Fleet Street really wouldn’t like to report on it, because it has been alleged that some of the right-wing press have connections to the intelligence agencies and have served as conduits for their propaganda. Like the Sunday Times when it was edited by Andrew Neil.

Lobster on the Real Reason Britain Didn’t Deport Nazi War Criminal to the Soviet Union in ’70s

I found this little snippet in Lobster 41 for Summer, 2001, on reason Britain refused to deport Anton Gecas, a Nazi collaborator and war criminal, to the Soviet Union in the 1970s: he was a British intelligence and Special Branch spy during the 1974 miners’ strike. Here’s the article.

Gecas and Special Branch

A wonderful example of the reach and power of intelligence connections was provided in January. Why did the British state refuse to extradite Anton Gecas, the WW2 Lithuanian war criminal, to the Soviet Union in 1976? Turns out not only had Gecas worked for SIS at the end of WW2, he’d worked for Special Branch in the 1970s, snitching on the miners during the miners’ strike of 1974!

A report in the Edinburgh daily paper, the Scotsman (15 January):

‘Although Gecas was named by the Nazi-hunting organisation the Simon Wiesenthal Centre as the most wanted Nazi war criminal alive, a two-year investigation by the Special War Crimes Unit concluded that there was insufficient evidence. The decision, announced by the Crown Office in February 1994 caused many people to suspect that Gecas was enjoying protection. According to a source close to the inquiry, investigators were perturbed to discover that witnesses who had freely given evidence against Gecas in the defamation trial [brought by Gecas in 1992] were reluctant to testify in a criminal court or claimed they had forgotten much of the detail of the alleged atrocities. The source said: “I have absolutely no doubt that someone or something got to them before we did” (emphasis added).

‘Red’ Ken Livingstone devotes a couple of chapters in his 1987 book, Livingstone’s London, to describing and condemning the recruitment of Nazi war criminals by British and US intelligence as part of their campaign against Communism. He discusses how many of them were given jobs in the mining industry, where naturally there was friction, not least because the Nazis’ SS and other Third Reich tattoos were clearly visible in the pithead showers.

The Leninist newt-fancier was loudly denounced by the Blairites last year as an anti-Semite, because he dared to state the historical fact that the Israelis and Nazis initially collaborated in Jewish emigration to Palestine, then under the British mandate. As his book shows, the man Private Eye calls ‘Leninspart’ is very far from an anti-Semite. He was right about Zionist collaboration with the Nazis, as amply demonstrated by John Newsinger in Lobster. And he’s right about the British and American spooks’ recruitment of Nazis. They were here, in England, and spying on decent Socialists and trade unionists.

Lobster on the Anti-Semitism Allegations, the Zionists and the Nazis

Mike has posted up yet another piece, which shows the disgusting attitude of the Blairites and their willingness to do anything to unseat and smear Jeremy Corbyn. It seems Sami Chakrabarti’s inquiry into anti-Semitism in the Labour party has generally given the party a clean bill of health. However, that hasn’t been good enough for Ruth Smeeth and Sam Stopp, two members, who seem absolutely convinced that the party is riddled with it and it’s all Corbyn’s fault. In the case of Smeeth, it seems to be because someone else in Labour called her a traitor because she was giving some assistance to the Torygraph in writing an article about it. And as she’s Jewish, she decided it must be because of her religion/ ethnicity, rather than in the fact that she was helping the notoriously anti-Socialist paper. In the case of Stopp, it’s because he looked at a speech in which Corbyn made it clear that Jews weren’t responsible for the actions of Israel, any more than Muslims were responsible for atrocities committed by ISIS, and came to the direct opposite of what was being meant. He perversely concluded that Corbyn was saying that Jews were responsible for the actions of Israel, and like Smeeth, promptly threw his toys out of the pram. See Mike’s article: http://voxpoliticalonline.com/2016/06/30/farcical-anti-semitism-accusations-fly-at-anti-semitism-inquiry-report/

These accusations about anti-Semitism in the Labour party are partly based on Ken Livingstone’s statement that Hitler too supported sending Jews to Israel. This was perfectly true, but was too much for the historically challenged Blairites, who in the person of John Mann, threw a fit and started accusing Red Ken of being a Nazi himself. Of course the old Leninist newt-fancier isn’t. When he was the head of the GLC, it was notorious for being right-on, anti-racist, anti-sexist and anti-homophobic. In his 1987 book, Livingstone’s Labour, Leninspart makes it very clear that he has no truck with racism, whether against Blacks, Jews or Irish, and provides deep and telling criticism of how the British and American governments recruited the real thing as part of their campaign against Communism. The Nazis they recruited as anti-Communist spies included heinous individuals, who had taken active part in the Holocaust and pogroms against the Jews during the invasion of the USSR. I’ve blogged about this before, many times, and quite simply I’m sick of having to explain it yet again.

John Newsinger, one of the long-time contributors to the parapolitics magazine, Lobster, has also put up a piece about the scandal, entitled in ‘Livingstone, Zionism and the Nazis in issue 71 of the magazine for Summer, 2016. Newsinger is, or was, a history prof at Bath Spa university. He makes it clear at the beginning of the article that’s he’s not impressed with Leninspart, because he played into the hands of the Blairites and their appalling allies in the Labour Friends of Israel and the Israeli ambassador to Britain, Mark Regev, an Israeli ‘hawk’. But he cites histories of the Holocaust written by Jewish historians, including David Cesarani, to show that Livingstone was historically correct. He also goes on to show, more specifically, the vile attitude of Israel’s founders to the plight of their fellows under the Nazis in Europe. The great Zionist pioneers had nothing but utter contempt for Jews, who wished to stay in their European homelands, and were more than content to see the Nazis persecute and butcher them, if it meant that some would go to Israel.

Cesarani himself was the son of Italian Communists, and a strong supporter of Zionism. He briefly became disillusioned while staying America, but when he came back to Britain, he returned not only to Liberal Judaism, but also was one of the first to equate anti-Zionism with anti-Semitism. Nevertheless, Cesarani’s book on the Final Solution provides abundant quotes showing the Livingstone was correct. Cesarani’s book states that the Zionists took very little interest in defending Jewish Germans, and were opposed to Jewish organisations, such as the Centralverein and the Reichsbund Judischer Frontsoldaten, a patriotic Jewish servicement’s league, that did. For the RjFS, leaving Germany was out of the question. It was a form of surrender. Cesarani describes how the Nazis actively promoted the Zionists as a way of getting the Jews out of Germany anyway they could, even providing quotes from those responsible. In 1935, Reynhard Heydrich wrote in the SS newspaper, Das Schwarze Korps, that the Nazi regime was ‘in complete agreement with the great spiritual movement within Jewry itself, the so-called Zionism, with its recognition of the solidarity of Jewry throughout the world, and the rejection of all assimilationist ideas.’

Cesarani also provides some chilling quotes showing the indifference of leading Zionists to their people’s suffering. He describes how (I)n January 1934, the
American, James McDonald, was appalled by the attitude of Chaim Weizmann when he ‘expressed his contempt for German Jews as a whole, his indifference to their fate, and for that matter, his indifference to the fate of millions of Jews elsewhere, just so long as a saving remnant could be preserved in Palestine’. pp. 132-133) This grotesque attitude was also shared by David Ben Gurion, who told a closed meeting of the Jewish Agency ‘If I knew that all the Jewish
children of Europe could be saved by settlement in Britain and only half could be saved by settlement in Palestine, I should choose the latter’. He also notes that Zionists and Orthodox Jews were quite satisfied with the ban on mixed marriages in the Nazis’ notorious 1935 Nuremberg Laws.

Cesarani’s book also describes how the Nazis supplied arms and support to the Haganah, the Jewish organisation in Palestine that helped the British crush the First Intifada, the Palestinian insurrection against the Mandate. Eichmann also gave his support to people smugglers, like Bernard Storfer, whom he put in charge of the illegal emigration of Jews to the embryonic Israeli colony. While Newsinger is clearly not a Zionist, he is deeply impressed with Cesarani’s scholarship, and urges Lobster’s readers to look at Cesarani’s first book, Justice Delayed: How Britain Became a Refuge for Nazi War Criminals. This describes how the post-War Labour government recruited immense numbers of Nazis as potential recruits for SIS, one of Britain’s intelligence agencies. Among those recruited were the 9,000 members of the SS’ Galician Division, Ukrainians responsible for horrific atrocities in that part of the USSR. He also rightly takes the British government to task for failing to take in Jewish refugees during the Third Reich. In his concluding paragraph, he states that a firm resistance to anti-Semitism must be a part of any determined anti-Zionist campaign, as it was only due to anti-Semitism in Europe that there was any real support for Zionism. He ends with this observation:

If the United States, Britain, and other countries had opened their doors to Jews fleeing the Nazis, these countries would almost certainly have been the destiny of choice for the overwhelming majority of European Jews. Instead, the doors were kept closed except for a comparative few. Once again, this was anti-Semitism at work. It was European anti-Semitism, culminating in mass murder and
attempted genocide, that made the Zionist project viable at the expense, we have to insist, of the Palestinian people. Consequently the fight against anti-Semitism is a vital part of the fight against Zionism.

This is very much the attitude of most liberal critics of Israel. The American radical left magazine, Counterpunch, has also run articles recently on how Winston Churchill and the British government bowed to the prejudice and xenophobia expressed by papers like the Daily Mail, and had German and Austrian Jews interned as ‘enemy aliens’ during the War in camps with the very Nazis that were persecuting them. And Newsinger also shows that, despite his obvious anger at Livingstone for giving the Israel lobby a weapon, the great newt fancier was very largely correct.

The article is at: http://www.lobster-magazine.co.uk/free/lobster71/lob71-livingstone.pdf. Read it for the information that the Blairite’s don’t want you to have.

Miliband, Blair, the Financial Sector and Labour’s Rejection of the Working Class

Private Eye’s satirical view of Labour leader Ed Miliband from the cover of their edition for 5th -18th October 2012.

There has been increased criticism of Ed Miliband this week after an open letter signed by 28 left-wing activists was published in the Guardian criticising Miliband’s electoral strategy. Many traditional Labour supporters and voters have been increasingly alienated by Labour’s move to the Right and its policy of adopting harsh Tory policies and attitudes towards the poor. Miliband has stated that he wants to reach out to the middle classes, and this week ordered the parliamentary Labour party to vote with the government for the imposition of an overall benefit cap. Although Labour would be better by far than another Tory government after 2015, Miliband’s leadership seems to demonstrate many of the problems and attitudes of the modern political elite: very middle class, with little awareness of or sympathy for the problems and hardship experienced by the poor, the working class, the disabled, and unemployed.

Tony Blair and the Neglect of the Working Class

Much of this attitude began under New Labour with Tony Blair. Own Jones in chavs describes how the political elite have played down the existence of class in order to ignore the working class to concentrate on gaining middle class votes, quoting the politicians Jon Cruddas and Matthew Taylor, one of Blair’s aides.

Jon Cruddas is in no doubt that politicians of all colours have a vested interest in denying the existence of class. It has proved an effective way of avoiding having to address working-class concerns in favour of a small, privileged layer of the middle classes. “They devise ever more scientific methods of camping out on a very small slice of the electorate … those who are constituted as marginal voters in marginal seats.’ Working class voters were taken for granted as the ‘core vote’ who had nowhere else to go, allowing New Labour politicians to tailor their policies to privileged voters.

No New Labour politician personified this attitude more than Tony Blair. Matthew Taylor offers an interesting insight into Blair’s political approach. ‘I worked for Tony Blair, and the point about Tony is that Tony would always say when I would say to him, or other people would say to him: “What about a bit more kind of leftism in all this? What about a bit more about poverty and justice and blah blah blah? …”‘ Blair’s response was blunt, to say the least:

Tony would always say, fine, but I don’t need to worry about that, because that’s what everybody else in the Labour Party wants, and that’s what everybody else in the Cabinet wants, and that’s what Gordon [Brown] wants, and that’s kind of fine. And I’ll leave them to do that, because I know that’s how they’ll spend all their time. They don’t want to do public service reform, they don’t want to wealth creation, they’re not interested in any of that, they’ll just kind of hammer away at that agenda. My job is to appeal to the great mass of people on issues that the Labour Party generally speaking is just not interested in.

The near-obsession with ignoring working-class voters meant inflating the importance of a very small tranche of wealthy voters who were misleadingly construed as Middle England. After all, an individual in the very middle of the nation’s income scale only earns around £21,000. ‘You’re probably right that we did misportray Middle England,’ admits Matthew Taylor, ‘But that again, I’m afraid, is not just a Labour characteristic. It’s characteristic of the middle classes as a whole.’

Chavs, 100-101.

Lobster on Kinnock and the Development of New Labour

The parapolitical magazine, Lobster, has printed a number of articles analysing and critiquing Blair, New Labour and their policies. One of the most important accounts of the origins of the New Labour project is the article, ‘Contamination, The Labour Party, Nationalism and the Blairites’ by the editor, Robin Ramsay, in no. 33, Summer 1997, pp. 2-9. Ramsay views the emergence of what later become known as New Labour in Neil Kinnock’s change of policies following their 1987 election defeat. Kinnock had previously been very left-wing. In his book Making Our Way, according to Ramsay ‘had come close to a radical, anti-finance capital, anti-overseas lobby, pro-domestic economic policy’. This changed after the election defeat, when Kinnock and his economic advisor, John Eatwell, enthusiastically embraced the free market and EEC. He notes that when a group under Bryan Gould produced the report, Meet the Challenge, Make the Change, Eatwell, Gordon Brown and Tony Blair objected to the sections recommending a return to national ownership.

An Economic Secretariat was created under John Smith, including advisors from the City of London. Kinnock and Smith became pro-EEC and were convinced that Britain should join the Exchange Rate Mechanism. At a Shadow Cabinet meeting on the 16th November 1989, the Labour leadership followed Smith’s advice that the state could not stimulate the economy, either through the nationalised industries or local councils, because this was prohibited under the rules of the ERM. The Labour Party thus launched the ‘prawn cocktail offensive’ to win over the City of London, in which John Smith and Mo Mowlam assured the bankers that they would not attempt to limit their profits any more than Thatcher had. This resulted in the establishment and expansion of a series of groups creating links between the Labour party and the financial sector. These included the Smithfield discussion group, the Labour Finance and Industry Group, and the Industry Forum. The Labour Finance and Industry group represented the interests of the domestic sector, while the Industry Forum and the Norton group presented the interests of the overseas lobby – the City of London and the multi-nationals.

Transatlantic Background of New Labour Leadership

Blair, Brown, Balls, David Miliband and the rest of ‘New Labour’ all had extensive links to America and American interests. Gordon Brown, for example, used to spend his summer holidays in the library of Harvard University. Blair went on a trip to America, which was part of a scheme sponsored by the US government to aspiring young British MPs. David Miliband, took an MA at MIT, Ed Balls studied at Harvard and, before he joined Brown, was about the join the World Bank. As for Mandelson, in his final year at Oxford University he became Chair of the British Youth Council, which had originally been set up in the 1950s by the CIA and SIS as the World Assembly of Youth in order to combat the Soviet youth fronts. Ramsay states

In short, the people round Blair are all linked to the United States, or the British foreign policy establishment, whose chief aim, since the end of the Second World War, has been to preserve the Anglo-American ‘special relationship’ to compensate for long-term economic decline. The Blair’ group’s orientation is overseas: this is the territory of the Foreign Office and its think tank satellites like the Royal Institute of International Affairs – the political and propaganda apparatus of the overseas lobby. (p.7).

New Labour and the City of London and Overseas Lobby

Blair himself also announced before the annual conference of Murdoch’s News Corp that the Americans had also insisted that Britain should adopt a more pro-European policy. Due to the massive expansion in overseas investment under Thatcher, Britain was second only to America in this regard and so looked to American political and military power and influence to protect those interests. The result was an increase in support for Labour over the Tories in the London establishment over the Conservatives. The result was a complete reversal of attitude towards the City of London. Whereas the Labour report, Meet the Challenge Make the Change: A New Agenda for Britain had been highly critical of the influence of City of London, the latter was held up as a great success seven years later by Mandelson and Roger Liddle, in their book, The Blair Revolution. Liddle, incidentally, now writes for the Spectator.

Under Bryan Gould, the Labour report had stated of the City’s destructive dominance over the British economy that

‘The concentration of power and wealth in the city of London is the major cause of Britain’s economic problems’… and that Britain’s economic policy had for too long been dominated by City values and run in the interests of those who have assets rather than those who produce.

The Blair Revolution, however, described the City of London and the new, de-industrialised British economy in glowing terms.

Britain can boast of some notable economic strengths – for example, the resilience and high internationalisation of our top companies, our strong industries like pharmaceuticals, aerospace, retailing and media; the pre-eminence of the City of London.

Consequence of City Influence: Everywhere else in Britain Suffers

Ramsay goes on to describe what this change of attitude actually means for everyone else in Britain outside the elite financial circle of the metropolis.

That the British economy policy is ‘outward-looking, internationalist and committed to free and open trade’, in Blair’s words, is precisely the problem from which non-metropolitan Britain has suffered. These are the values of the overseas lobby, the Home Counties financial elite, people for whom Bradford or Norwich, let alone Glasgow and Cardiff, are far away places about which they know nothing – and care about as much.

British politics has been stood on its head. The Conservative Party, traditionally the party of financial and overseas interests, has been replaced in that role by Labour. Instructed by its new friends in the City, Labour has become the party of financial- that is pre-Keynsian – orthodoxy. Gordon Brown looks determined to re-enact the role of Philip Snowden in 1931. The last three years of the Major regime saw Chancellor Kenneth Clarke running the kind of orthodox Keynesian policy – increasing government deficits in response to the recession – which Labour, under Wilson or Callaghan, would have run, but which is anathema to ‘Iron Chancellor’ Brown. (p. 8).

Miliband’s Apparent Lack of Interest in Poverty and Working Class due to New Labour

Ramsay notes the way Labour adopted the rhetoric of ‘One Nation’ Toryism and appeals to British patriotism. This was to disguise their promotion of the overseas economy at the expense of domestic industry. He concludes

The Blair faction will fail. ‘One nation’ rhetoric, continuing membership of the institutions of the New World Order – which is essentially the same old American post-war order minus the Soviet challenge – and leaving economic policy to the overseas sector won’t affect the real structural problems of the British economy. When it does finally dawn on the Parliamentary Labour Party that it won’t work, they will have to look elsewhere. The wrong turning was taken at the point when Bryan Gould was defeated by John Smith and the party leadership decided to surrender to the overseas lobby. To that disjunction it will have to return. (p. 9).

This is the origin of New Labour and the background to Miliband’s continuing attempts to appeal to the Middle Class and the financial elite at the expense of the poor and working class. And it needs to change urgently. Even so, a Labour government would be far preferable to another Tory government. If nothing else, Labour have said that they will stop the Tories’ privatisation of the NHS. But for Labour truly to start tackling poverty and unemployment in this country, it will have to jettison much of the New Labour project and start returning to its working class roots.