What is Behind the Government's Spanish Policy? (1937)

From the August 1937 issue of the Socialist Standard

Many people have been puzzled at the attitude of the British Government, the capitalist Press and the ruling class generally towards the civil war in Spain. It was natural that their class prejudices and their associations with Spanish Conservatives and the Catholic Church would make them sympathise with General Franco’s revolt and hope for its success. Yet it might have been expected that they would quickly see the force of the argument, put forward by the Naval correspondent of a Conservative newspaper, that from a strategic point of view the interests of the Empire are bound up with the defeat of Franco and his German-Italian backers. This correspondent pointed out that German-Italian dominance of Spain and Spanish Morocco, including the approaches to Gibraltar and the control of the Balearic Islands in the western Mediterranean, unquestionably threatens the British hold on the Mediterranean and seriously, hampers communications with East Africa, India and beyond. Mussolini’s military and naval experts have not troubled to keep secret the intention of turning the sea into an Italian lake; and their British counterparts have been compelled to recognise that the threat is not an idle one. The handling of the Abyssinian affair showed that the British Cabinet were not prepared at that time to risk an open clash with the Italian forces. What, then, is the explanation of the Government’s behaviour, apparently so little in keeping with their class and imperial interests ? The attempt to provide an answer must take into account many divergent factors.

Willing But Not Yet Ready For War

First, there is the aspect, referred to above, that the Government was not ready for a possible war with Italy. That was an important factor in 1935 when Italy invaded Abyssinia. It is less important now that British naval and air rearmament has got well under way. It will be noticed that the recent announcements about the building of new or reconditioning of old warships and about the completion of more and more up-to- date squadrons of aeroplanes coincide with a noticeably more aggressive policy towards encroachments on British capitalist interests in the Mediterranean. Where before there was comparative reticence we now have the Foreign Secretary, Mr. Eden, declaring in unmistakable terms that British disinterestedness in the Spanish conflict does not mean indifference where British interests are concerned “ on the land or the sea frontiers of Spain or the trade routes that pass her by ” (Report of speech in Parliament, The Times, July 20th, 1937). He and the Prime Minister issued a plain warning to German and Italian capitalists that the Mediterranean is for British capitalism “a main arterial route, and we intend to maintain our place on it.”

Mr. Eden further warned Italy that : —

It has always been, and it is to-day, a major British interest that no great Power should establish itself on the Eastern shore of the Red Sea.

That the German and Italian threat is a serious one is shown by the information about big guns overlooking Gibraltar erected in the past six months by Franco’s foreign friends. Even the most loyal of Franco’s Tory supporters began to choke at the idea of “The Rock” being dominated by German or Italian guns and, with unconscious humour, they now grow more enthusiastic for strong action to prevent the intervention of foreigners in Spain.

It escapes their notice that to a patriotic Spaniard the most outrageous of all intervention of foreigners on Spanish soil is the existence of this British fortress at Gibraltar.

Mr. Winston Churchill made a characteristic statement. Speaking at Wanstead on July 4th (Manchester Guardian, July 5th) he regretted Mussolini’s recent policy and said: —

If I had been an Italian I should have been on Mussolini’s side fifteen years ago when he rescued his country from the horrible fate of sinking into violent Communism. All the more do I regret some of the recent utterings of Signor Mussolini.

Happily, Mr. Churchill continued, the power and preponderance of the British navy is growing rapidly. It already far exceeds the preponderance we possessed over other European Powers at the outbreak of the Great War.

Spanish Mineral Wealth An Issue

Then, again, Spain for the rival powers is not only the arena of a conflict about democracy and dictatorship, but also and more importantly a country of great mineral wealth. The facts are well known. Frank C. Hanighen summarises them in an article in the New Statesman (April 24th, 1937): —

Spain constitutes a far richer preserve of the basic elements which nourish industry than either Ethiopia or the former German colonies. Iron, the principal staple in munitions making, which both Germany and Italy lack, exists in abundance near Oviedo, near Vigo, and in the beleaguered Basque provinces. The best copper mines in Europe lie in Huelva province. Not far from the mercury of Almaden, the famous Pefiarroya mine produces high-grade lead. Other essential minerals—coal, tin, tungsten, silver, molybdenum, salt, phosphates, pyrites, graphite and zinc—are scattered throughout the peninsula and, across the straits of Gibraltar, Spanish Morocco contains iron, lead and manganese. Under monarchy and republic, foreign interests and, to a lesser extent, Spanish capital developed only a part of these resources. Accordingly, when the republic faced serious civil strife, it was natural that the two most predatory Powers in Europe should look hungrily towards Spain.

Mr. Hanighen. shows how Germany began organising the shipment of iron ore from Spain in 1934, but for a considerable period the trade was interrupted owing to Germany’s financial difficulties. Then, in 1936, by arrangement with the rebels, shipment was resumed on the basis of exchanging ore for armaments. He quotes Edgar Mowrer, correspondent in Spain of the Chicago Daily News, as saying on December 22nd, 1936: “ An entire fleet of ships is engaged in bringing arms to Spain, returning loaded with iron ore for Germany,” and adds his own opinion that “it is not too much to say that the German adventure in Spain saved the German re-armament programme.” He contends that before the revolt occurred in July, 1936, the iron ore situation in Germany had become serious: “Britain had started to compete for Swedish ore, one of Germany’s best sources. The French Socialists, in power in France, had been talking of an embargo on Lorraine ores to Germany. Spanish iron ore for the past year had been unavailable because Spanish exporters could not obtain German import licences as a result of the German currency shortage.”

Here we have Germany’s interest. Italy was likewise concerned to gain control of the tungsten and vanadium deposits, the iron, lead, copper and sulphur near Cartagena, and the mercury mines of Almaden, north of Cordoba.

It is plain enough why German aeroplanes should bomb Guernica, in the north, on the way to Bilbao and Oviedo, and why Italian troops should be engaged in trying to capture Almaden in the south'. Indeed, Hitler and Mussolini have lately been quite candid about it.

Addressing a Nazi gathering at Wurzburg on June 27th, 1937 (News Chronicle, June 28th), Hitler said:

Germany needs ore. That is why we want a Nationalist Government in Spain—to be able to buy Spanish ore.

and Mussolini, in an article in Popolo d'Italia on June 26th, 1937 (The Times, June 28th), wrote: 

 Italy has not been neutral, but has fought, and victory will also be hers.

But while the policy of Italy and Germany has been easy to understand and has been complicated only by possible divergences of interest between the two powers, the situation, from the standpoint of British capitalism, has been more complex.

The private interests of British shareholders in companies working mines in Spain have had to be considered and these have not necessarily coincided with the interests of the British imperial exploiters as a whole.

The Choice for British Capitalists

First consider the difficulties of the situation facing the big and wealthy companies operating in Spain : the Rio Tinto Co., Ltd., which owns great copper and sulphur mines in the province of Huelva; the £2,000,000 Orconera Iron Ore Co., “in which the Consett Company and Guest Keen Baldwins Iron & Steel Co. hold investments of a nominal value of £800,000 each ” (Daily Express, July 20th, 1937); the Barcelona Traction Co. and many others.

The aim of the directors in such concerns is naturally that of protecting their properties and maintaining profit-earning capacities. Beyond that they would incline to hope for a Franco victory as more likely to give a “strong government," which would “stand no nonsense from trade unions,” particularly when they read the declarations of the aims of some of the Popular Front Government’s supporters. How, in fact, have British capitalist interests fared?

The Anglo-Spanish Construction Co., which owns and operates the Santander-Mediterraneo Railway, say that everything has been satisfactory since General Franco took control of the area (The Times, July 9th, 1937).

From Government territory the Barcelona Traction Light & Power Co. tell a different story in a statement to shareholders (The Times, June 26th, 1937).

The company found so many difficulties in its relationships with the Workers' Committees that it withdrew its staff in September, 1936.

They state that since the date of the issue of the two circulars last year the general conditions in Spain have grown steadily worse and have, in fact, developed in such a way that it has been found impossible to obtain any reliable information as to the true position of the affairs of the enterprise in that country in which the Barcelona company is interested. The seizure effected by the Workers’ Committee in Barcelona covers all the properties, funds, and banking accounts of the enterprise.

Representations made through the British Foreign Office against the usurpation of the interests of the enterprise, and protests from time to time by the British Consul-General in Barcelona to the Catalonian Government, have produced no satisfactory results. The funds and cash have been removed from the banking accounts of the enterprise and appropriated by the Workers’ Committee. [Times, June 26th, 1937.) 

While firms in Franco territory have had to submit to financial losses and such inconveniences as the murder of hundreds of their workers (as happened with the Rio Tinto Co.), it is not to be wondered at if they prefer that to the seizure of their property and funds by Workers’ Committees.

It is therefore hardly surprising that Rio Tinto shares dropped from £22 to £13 following the electoral victory of the Popular Front Government in February, 1936, and rose sharply after the rebels captured Huelva in August, 1936 (New Statesman, April 24th).

About the Orconera Iron Ore Co. and its mines in Bilbao province the position is somewhat obscure. The Times City editor says (July 19th, 1937) that until about a month earlier there had been no interruption of shipments from these mines. Then there was a stoppage during the fighting round Bilbao, which resulted in Franco’s capture of that town. Franco then gave a verbal promise that ore supplies to Britain would not be interfered with. It was, however, reported from Berlin (News Chronicle, July 20th, 1937) that a German treaty with Franco provides that Germany’s much-needed iron ore for re-armament will be supplied from the Basque mines.

This may mean that Franco is acting against the interests of the British companies or it may mean that an agreement has been arrived at between the interested German, British and Spanish companies. The article in the New Statesman, quoted above, gives support to the latter view, although it deals with other companies than the Orconera Co.

While Germany and Italy quite openly fight battles for raw materials, international capital takes a stand which can only be construed as co-operation with these Powers. In the Riff, for instance, British and French mines receive no payments for the ore which is being sent to Germany (all payments, as it has been shown, are applied to Franco’s armament debt). Yet these companies show an odd diffidence about the matter. Not a single protest has been filed by these companies or their governments. On the contrary, the financial elements in London and Paris representative of these companies are known to be strongly pro- Franco.

Consider the extraordinary case of the Rio Tinto mines . . .According to the Manchester Guardian, the output of Rio Tinto is being requisitioned and sold to Germany, at a price of 42 pesestas to the pound, whereas the current rate is between 80 and 90 per pound. Has an international capitalist “understanding” been reached with Franco and his Fascist backers ?

“. . . . Why should not these British and French interests find in a Franco victory a solution of difficulties which have prevented them from being impartially (and prosperously) international ? Currency restrictions and the consequent inability of Germany and Italy to buy freely have kept many companies from profiting from the German and Italian armament booms. But with Franco in power, British and French capital might flow into a newly-organised Bank of Spain, Germany and Italy might borrow from this institution to pay for raw materials, and dividends in Penarroya, Almaden and the foreign companies in the Riff would be amply assured.”

What exactly these various British companies may be doing behind the scenes it is impossible to know, but it is certainly likely that they would seek some such solution as the one suggested by Mr. Hanighen. It must also be noticed that the controllers of these companies are exceedingly influential in British political as well as financial circles and would be able to exert great pressure on Government policy in a direction which would help them strike a good bargain with Franco and Franco’s friends.

There remains to be considered still one more aspect of the problem, that is the dependence of British re-armament on metals from Spain and elsewhere.

Ore For British Armaments

While British capitalists would have no objection whatever to making profit by selling materials to Germany or Italy for their armaments, the British Government, acting for the capitalists as a whole, cannot be indifferent to a stoppage of supplies needed for British arms. Already there is an acute shortage of steel and the loss of well over a million tons a year of Spanish ore (which cannot easily be replaced by poorer-quality ores from English or other mines) would be a serious matter for British capitalism. The Times City editor (July 19th, 1937) summarises the problem as follows (it will be noticed that, as regards Swedish ore, this statement rather conflicts with that made by Mr. Hanighen): —

If imports from Spain were to be cut off through ore being diverted to Germany or for any other reason, the task of making good the deficiency might present serious difficulties. Large deposits exist, it is true, in many parts of the world, but owing to the higher level of freight rates the cost of shipping ore from distant countries like India and Australia is apt to prove prohibitive. Of countries near at hand Sweden has probably the richest deposits, but exports are limited by the Swedish Government to about 10,000,000 tons annually, the bulk of which goes to Germany under contracts that have still several years to run. Except through a direct agreement with the Swedish Government, the scope for expanding supplies from this source is probably limited. In the first half of the current year imports from Algeria, Tunis, and especially Norway, were all higher, and should Germany contrive to satisfy a larger proportion of her requirements in Spain there is a possibility that still larger supplies in these countries would be available to Britain. Meanwhile, as the Import Duties Advisory Committee pointed out in its report, events are stimulating a movement towards the proportionately larger use of low-grade native ores, deposits of which, distributed through Lincolnshire, Oxfordshire, and Northamptonshire, are estimated at not less than 3,000,000,000 tons, or sufficient for an annual output of 10,000,000 tons of steel for 100 years. Substitution of native low-grade ores for foreign ores with high metallic content could not, however, be effected wholesale without considerable modification of existing plant and, therefore, offers no immediate solution to the problem of the scarcity.

How the British capitalists try to solve their problems in Spain is, of course, their own affair, but it is necessary for Socialists to try to understand the main lines of their policy, if only in order to combat the notion, increasingly prevalent in Labour circles, that British capitalism can be trusted to pursue a peaceful, idealistic foreign policy free from the violent and sordid motives which underly the policies of the dictators.

British Government policy at the present time probably runs on the following lines: —

Determination to resist German and Italian control of Spanish territory. A desire to see a Spanish Government ultimately strong enough in armed force and popular support to prevent this. A desire not to see either side in the civil war overwhelmingly victorious, since such a Government would feel less dependent on British capital and British support. And a willingness—on terms—to do a deal with either side in the struggle, the terms to include safety for British investments and guarantees for the continued supply of ore.

Edgar Hardcastle

Cooking the Books: Who creates wealth? (2022)

The Cooking the Books column from the December 2022 issue of the Socialist Standard

‘Miners put faith in filters to prevent further dam disasters’ read a headline in the business section of the Times (1 November). You might think that this was an article about mineworkers being reassured that measures were in place to lessen the risk of them being drowned in some mining disaster. But you would be wrong. If you read on, it’s about measures being taken by ‘two of the world’s biggest mining groups’, BHP and Rio Tinto.

This distortion of the word ‘miner’ to mean mining companies and even the tycoons, oligarchs and other multi-billionaires who own them (see ‘world’s richest miners') is standard practice on business pages. Similarly engineering companies are referred to as ‘metal bashers’. But the owners of these companies don’t work in a copper mine and don’t operate a machine-tool. They exploit those who do, by turning into profits what their employees produce over and above the value of their wages.

Such misuse of language is not confined to the business pages. It is also common amongst defenders of capitalism. The short-lived prime minister, Truss, declaimed to the Tory conference:

‘We believe in making it easier for our wealth creators, doers and makers to get things done’ (Daily Mirror, 1 October).

She was justifying the abolition of the highest rate of income tax and the lifting of the cap on bankers’ bonuses. Apparently, bankers and other rich people ‘create wealth’. They are certainly, in some cases, ‘doers’ (though not of anything useful from the point of view of human survival) but they are not ‘makers’ of anything and they don’t create any wealth.

So, let’s go back to basics. What is wealth and how is it created? Wealth is anything that is useful to humans. Some wealth such as the light and warmth from the Sun is a free ‘gift of Nature’ but most wealth has to be produced by human activity, by humans exercising their mental and physical energy. The materials on which humans work are, like the Sun’s rays, provided by nature. New wealth is ‘created’ when humans work to fashion or refashion materials that originally came from nature into something useful to them. Doing this is ‘production’.

Some of the materials humans work on are extracted directly from nature, as by copper or zinc miners; other materials worked on have already been transformed into wealth, as the pieces of metal that engineering workers alter or assemble.

The work of creating new wealth is not just physical. Mining is not only the work of physically extracting materials from the ground; engineering is not only changing pieces of metal into something else. Like all work, these also involve planning and designing the best way to do the physical work. All work involves both physical and mental activity, at both the production unit and the individual level. There is no way that wealth can be created other than by humans working on materials that originally came from nature.

Defenders of capitalism confuse wealth with the monetary value that wealth assumes under capitalism and so assume that anybody who makes a profit is ‘creating wealth’. This has a certain perverse logic from their point of view since capitalism is not a rational system geared to creating wealth to satisfy people’s needs. Its aim is to create monetary profits.

So, let’s rephrase the ephemeral Truss’s words: ‘We believe in making it easier for our profit-seekers to make profits’. Socialists, on the other hand, believe in making it possible for the wealth creators to make useful things to directly satisfy people’s needs. This is possible only on the basis of the common ownership and democratic control by society of the materials, natural and industrial, for creating wealth.

Uranium mining exposed (1992)

Book Review from the June 1992 issue of the Socialist Standard

Past Exposure. By Greg Dropkin and David Clark. Namibia Support Committee in association with People Against Rio Tinto Zinc, 37-39 Great Guildford St, London SE1 OES. £8.90 (post paid).

Inspired and encouraged by the Mineworkers’ Union of Namibia, Past Exposure is a highly technical yet eminently accessible expose of the deadly health and environmental hazards associated with the world’s largest opencast uranium mine, Rossing Uranium in Namibia which is largely owned by Rio Tinto Zinc.

Rossing’s manager of corporate affairs has dismissed the book as “a collection of distortions and half-truths cunningly woven together into a plausible text”. But the authors, Greg Dropkin and David Clark, use highly confidential internal company documents, personal testimonies made by mineworkers, and up-to-date environmental and medical research into the effects of uranium mining, to show that it is in fact Rossing Uranium which has been economical with the truth over a period of many years.

Dropkin and Clark demonstrate that, despite the company’s claims to operate within recognised international standards of health and safety, workers have been continually exposed to excessively high levels of silica dust and of uranium dust and radiation which cause, amongst other things, diseases of the chest and lungs, kidney failure, and cancer and hinder the mental and physical development of unborn babies.

In the case of radioactive radiation the authors show that there is no such thing as a safe level of exposure and that, even if there was, the company has not, despite its claims to the contrary, been properly measuring and monitoring the levels of radiation doses received by workers. The workers most exposed to silica dust and other health hazards tend to be black. The specialist in charge of monitoring chest complaints ascribes these to smoking and “ethnic" differences!

The detailed discussion of water pollution caused by uranium mining completely demolishes any company statement that it has not polluted any groundwater systems or the Khan river. Radioactive waste from uranium mills is stored in tailings dams. It leaks into the surrounding air and water and develops a serious long-term environmental problem. It seeps into the soil and enters food chains as well as poisoning the water. Rossing’s water management data is a well-kept secret but Dropkin and Clark estimate that

780 million gallons of tailings liquid seeped out in a twelve-month period . . . the contamination may be anywhere from the ground-water system to the Khan and/or Swakop rivers reaching the sea at Swakopmund.

Past Exposure has two main objectives. Its first is to empower the workers at Rossing Uranium in their efforts to negotiate a health and safety agreement with RTZ in line with agreements at other uranium mines, mostly notably Rio Algom, RTZ’s Canadian uranium mine. At this mine, as the authors point out in some detail, far superior though by no means perfect standards of health and safety prevail as a result of sustained and informed pressure put on the mining company by the Canadian mineworkers.

The publication of the book has already caused a stir in Namibia. Extracts were published in The Namibian newspaper which has as a result faced threats of legal action from the mining company. Since the publication of the book the Namibian government has requested the International Atomic Energy Agency in conjunction with the World Health Organisation to investigate issues of health, radiation exposure and waste disposal at the mine.

The book’s second main objective is to raise awareness about the hazards of the nuclear industry of which uranium mining is a primary feature. In the present economic recession miners are not only fighting for better health and safety agreements but also for their jobs in the face of savage redundancies. Like many workers around the world they are caught in that cruel contradiction of having to fight for a job that is useless or dangerous producing a commodity that is useless or dangerous, or face the prospect of unemployment.

This is a contradiction which the authors, as long-standing opponents of the nuclear power industry, acknowledge; and while they themselves would wish to see the end of the nuclear industry they point out that it is “most important that the workers employed at Rossing and elsewhere in the nuclear industry' should be engaged in a real debate about its future”.

It is difficult to see how the Namibia Support Committee who co-publishcd this book can square their anti-nuclear position and their obviously sincere support for the mineworkers of Namibia with their long history of support for SWAPO, the government of the Namibian state which gained its independence in 1990.

SWAPO does not appear to be interested in engaging in any serious debate over the future of the Namibian workers without a uranium mine. Nor would it be in its interests to do so. The nuclear industry is highly profitable and controlled on a global scale by a few multinational conglomerates. The Namibian economy is heavily dependent on uranium mining. If any Namibian government is to successfully ensure its position then it does so by working closely with those multinationals who control uranium mining.

As early as 1975 SWAPO was in negotiation with RTZ when they asked the company to issue a statement recognising SWAPO as the prospective Namibian government. In 1985, despite calling on all multinational companies to quit Namibia forthwith because they “fuel Pretoria’s war machine”, SWAPO made the following statement:

When Namibia is free we will certainly reach an agreement with [the multinationals] which will be beneficial to all of us. (Quoted in Plunder by R. Moody).

Beneficial to all but the workers in the Uranium mines and ordinary people around the world who in growing numbers watch with dismay as the world’s resources are plundered to fill the pockets of'a few leaving a trail of human and environmental devastation, the effects of which will be felt for generations to come.

Kerima Mohideen

"The company keeps saying that the uranium we work with is harmless but I never had a skin ailment until I started working in this area. Because they have never taken interest I conclude that Rossing are concerned about profits and not the health of workers. We desperately need outside expertise to tell us about the short-term and long-term effects of working with uranium. For this we need international help, especially from the international trade union movement'’.

—statement made by worker at Rossing Uranium mine in Namibia.

Cooking the Books: What’s China’s game? (2008)

The Cooking the Books column from the April 2008 issue of the Socialist Standard

An interesting take-over battle is now taking place in the world mining industry. Towards the end of last year, BHP Billiton, the world’s largest mining company, made a bid to take over Rio Tinto, the world’s second largest mining company. According to the Times (5 February) a BHP-Rio merger

  “would create the world’s largest iron ore, aluminium and coal supplier . . . A merged BNP-Rio would control about 36 per cent of the world’s iron ore, which is used to make steel, and consolidate 75 per cent of that market in the hands of only two companies”. (The other would be Vale, the Brazilian mining corporation).

Steel-producing countries dependent on imports of iron ore – China, the EU, Japan – are not too happy about this prospect of an “OPEC for iron ore”. But so far only China has acted. At the beginning of February Chinalco, the Chinese state-owned aluminium company, splashed out £7 billion in cash to acquire a 12 percent holding in Rio Tinto, probably to at least have a say in the disposal of Rio Tinto’s assets.

There is a theory which sees multinational corporations such as BHP and Rio Tinto as agents of the Western “imperialist” states, but here the victims will be other capitalist corporations in the developed capitalist world who are consumers of iron ore and aluminium. In any event, there can be no doubt that China’s various state-owned companies such as Chinalco, Sinochem Petroleum and China Shenua Energy are agents of the Chinese capitalist, not to say “imperialist”, state.

Capital accumulation is going on apace in China and China has a desperate need for the materials to sustain this (while it lasts):

  “China is forecast to consume more than half of all the world’s key resources within the next decade and the country is seeking to control mines and oilfields to ensure its supplies. China is already the world’s largest consumer of every big resource except oil and accounts for 47 per cent of all iron ore, 32 per cent of aluminium and 25 per cent of copper.” (Times, 5 February).

China is also the world’s leading consumer of nickel and zinc. To ensure a steady supply of all these essential materials, China has set up a whole range of state-owned capitalist corporations which operate on the stock exchanges of the world, doing deals with and acquiring shares in Western capitalist corporations.

Western financial journalists such as Patrick Hosking of the Times are intrigued as to “why is China playing the Western capitalist game” (Times, 5 February). Hosking doubts that Chinese state corporations such as Chinalco are interested in maximising profits or in maximising dividends to their single shareholder, the Chinese state, and concludes:

  “In one sense it is encouraging that Beijing is buying – literally – into joint-stock capitalism. But it would be naïve to assume its business leaders are motivated by the same forces as their Western counterparts”.

He is probably right. While non-state capitalist corporations are motivated by maximising profits and dividends to their shareholders, states can take a longer and broader view of the overall national capitalist interest. They need to take into consideration such factors as the security of supply of essential materials to industries within their borders. Many a war has been fought to achieve this. But wars are expensive and risky. Much better to try other means first, commercial as well as diplomatic.

This is what China appears to be doing via its state-owned corporations operating alongside Western corporations. At the same time China is building up its armed forces just in case this fails and other means of acquiring a secure supply of essential materials have to be employed (see for example here.).

World at Work: Slaughter of South American Indians for Oil (1971)

From the February 1971 issue of the Socialist Standard

Slaughter of South American Indians for Oil

Oil has been called ‘black gold’. Not an inapposite comparison with the precious metal since it has meant the enrichment of a few, has been fought over by many and has reduced human beings to the most degraded levels of behaviour in the endeavour to get their hands on it.

The blood-stained hand of capitalist violence is now poised ready to deal a death-blow to a small tribe of South American Indians in Colombia. The systematic attempt at extermination of the Guahibo tribe in the Planas region by the Colombian army and settlers came to light as the result of certain Colombian clerics writing for help to the World Council of Churches. Subsequent enquiries on behalf of the Sunday Times (15 November 1970) has substantiated the truth of the letter, which the Colombian Government at first tried to discredit.

To the misfortune of the Indians “their” lands may have oil underneath and it is for this that they are being slaughtered. Many of the seven thousand Indians are virtually the slaves of the settlers and their condition and treatment at the hands of these unscrupulous men is very harsh. Their numbers are also being decimated by disease and malnutrition.

A number of Indians took refuge in the Jungle with a former police inspector sympathetic to them and resisted the settlers with violence. This seems to have given the Colombian government an excuse to crack down on them. As one settler put it: “There will not be any peace in this region until the Indians are gone”— a sentiment echoed all over the world today and in the past to justify the grabbing of the world’s wealth by a few and one to be heard in the future for as long as capitalism lasts.

Trading in the sword for a plough-share

To banish strife and discord from among the nations of the world, as capitalist politicians might put in their more lyrical and biblically inspired moments, has long been one of their dreams, and it was at one time believed that all that had to be done to achieve this happy state was to liberalise trade between countries by abolishing tariffs, import quotas and other barriers to commerce. The principal exponents of this doctrine in Britain were the Liberals. A new variation on this antique theme has been composed by an international lawyer named Samuel Pisar and he has dedicated it to Russia in a book called Commerce and Coexistence.

In Pisar’s opinion the best way of countering and prevailing over the threat posed by Russia is to demonstrate the West’s superior capacity for economic progress. Presumably what Pisar has in mind is that when and if the Russian consumer tastes the fruits of American affluence (no doubt Ralph Nader and Vance Packard can give them some advice on what to choose) the aggression in those breasts will be soothed and lowering brows unknitted by having a good splurge.

So far from bringing peace to the world it is trade and commerce which give rise to the tensions and conflicts between nations, the military conflict of war merely being an extension of the economic struggle going on all the time. One 19th century economist bluntly stated that “When goods cannot cross frontiers, armies will.” Sebastian de Ferranti, chairman and managing director of the electronics firm of Ferranti, also used strong language in describing the real situation when he referred to the support which Britain gives the U.S.A. in a speech at the opening of a new plant in Dundee. “It is an extraordinary state of affairs where our enemy in these advanced fields is encouraged and given financial support to come particularly to Scotland to compete with us” (Times, 23 April 1969). In the same article it was also reported that he had said that in the more advanced fields of technology Britain had only one enemy, that was America with whom we were at war.

The economic causes of the First and Second World Wars have been well documented for all to read, as have the admissions of capitalist statesmen on this subject. Perhaps when Pisar takes off his rose coloured spectacles he may discover this too.

Conserving Conservation

As might be expected in European Conservation Year, no positive steps have been taken to preserve the natural environment from further depredations of industrial expansion. In Britain we have been regaled with news that members of the capitalist class, anxious to make more profit and to help their sacred cow, the balance of payments, are turning their rapacious eyes to one of Britain’s most beautiful areas, Snowdonia, with a view to open-cast mining.

So far all that has been done to this end by Rio Tinto Zinc International Mining Co., the industrial concern involved, has been the placing of two applications for mining tests to be carried out at Coed-y-Brenin Forest and in the estuary of the Mawddach river.

There is considerable unemployment in the area and RTZ are playing upon this to gather local support. Furthermore exploitation of national natural resources could be said to be in the “national interest” by helping the balance of payments which is the concern of British capitalism generally. One of the ploys regularly used in getting new and controversial industrial projects accepted is to emphasise the increase of jobs, and to the unemployed this probably has very great appeal. To the socialist it reveals the degradation and servility of the worker in welcoming his own exploitation and the destruction of natural and social amenities which he and his fellow workers enjoy on rare occasions and then only briefly as a respite from the tedium of everyday life in capitalist society.

What is ultimately at stake here is the entire concept of national parks as areas of countryside of outstanding and unique natural beauty set aside for leisure and recreational purposes and accessible to anyone who cares to visit them. The Conservationists fighting the threat may win the day, but it will not be the last battle they will have to fight against the rapacity of capitalism.

The Elusive Millionaire

They seek him here, they seek him there,
The pressmen seek him everywhere.
Is he in Nassau or has he come back?
Or is he in Vegas playing Black Jack?

The most publicised man in the world today is an American multi-millionaire who has been seen by very few people during the past 13 years (he was last photographed in public in 1957) and has attracted more sensational publicity by trying to avoid it, so it seems, than any film star getting divorced for the umpteenth time.

Howard Hughes first gained a reputation as a film producer and then as a record breaking aeroplane pilot and designer. His fame now largely rests upon his withdrawal from, and lack of contact with, the world outside his hotel suite. The story of Howard Hughes’ career is not the usual romantic one of a man who went from rags to riches but of a man with a wealthy father who went from riches to super riches. No doubt Hughes could always have counted on his father to supply him with a pile of dollars on which to have a soft landing in the event of a fall.

Today Howard Hughes is the owner of a vast business empire whose value runs into hundreds of millions of dollars. To help him run it he employs an army of minions— lawyers, accountants and other experts, such is the complexity of its financial structure and so extensive are its ramifications.

Some of his minions were involved in a "who controls what” dispute which broke out (or, at least became publicly known) early in December over his Las Vegas gambling operations. Hughes, the only one who could settle the dispute, was reported to have gone to the Bahamas. He is said to have disappeared mysteriously on a previous occasion at a time of crisis in his business empire. At one stage the governor of Nevada intervened and personally contacted Hughes. No doubt the break up of Hughes’ gambling and other interests in the state could have had serious repercussions, there, since Hughes is the owner of numerous gambling houses, the state’s largest landowner and one of the largest employers (Times 7 December 1970) as well as having other property interests there.

Howard Hughes’ fortune, like the entire wealth of the rest of the American capitalist class, and elsewhere for that matter, is solely deprived from the exploitation and dispossession of the vast majority of the people by whose labour wealth in all its forms is produced.

The extremes of luxurious living and destitution can nowhere be more clearly seen than in America. Howard Hughes is just one of many Americans possessed of immense wealth, perhaps it can all best be summed up in these words "One man’s wealth is many men’s poverty”.

Spectator

Rio Tinto plunder (1991)

Book Review from the September 1991 issue of the Socialist Standard

“We don’t grow healthy crops anymore, our traditional customs and values have been disrupted and we have become mere spectators as our earth is being dug-up. taken away and sold for millions. Our land was taken away from us by force: we were blind then but we have finally grown to understand what’s going on”.

These words were spoken by Perpetua Serero in Bouganville, Papua New Guinea, after she and her community were driven off the land which they were dependent on for their livelihoods so as to make way for a potentially highly profitable but environmentally and socially disastrous mine operated by one of the world’s largest multinational mining corporations. Rio Tinto Zinc. Her words are echoed all round the world by thousands of people whose lifestyles and communities have been wrecked by the operations of this company.

In its relentless pursuit of profits Rio Tinto Zinc has left a trail of human and environmental devastation of staggering proportions, as detailed in Plunder published by Partizans (218 Liverpool Rd, London N1 1LE, price £6.50 including postage). This is a thoroughly researched account of how RTZ arrived at and continues to maintain its position of world leader in the mining industry. The book deals with the company’s mining operations in every part of the world and in each section are well-documented examples of the devious, competitive practices that are typical of such capitalist organisations. These include a number of dirty tricks such as brow-beating opponents, leaning on governments, price-fixing, breaking the law, and union- busting.

RTZ claims in its glossy annual report to be “bringing out the best in the world". It even goes so far as to state that it aims to “act responsibly as a steward of the essential resources in its care" and “to involve the local communities wherever it operates and to promote their well-being".

Destroyed communities

Plunder tells a very different story. In its mining operations in over forty different countries. RTZ and its subsidiaries have poisoned the air, the rivers and the land, made species of animals and plants extinct, and turned areas of wild scenic beauty into barren wastelands. Far from promoting the well-being of local communities, RTZ has uprooted and displaced indigenous peoples, destroying their livelihoods and communities. It has turned them into an alienated and unskilled population forced into a lifestyle of abject poverty, prostitution, alcohol abuse and crime. In other words, they are forced into a life of wage-slavery at its bottom-most level.

RTZ has disregarded health and safety standards, causing the deaths over the years of hundreds and possibly thousands of workers from dust and radiation related diseases. Many of its workers, as in the case of the Rossing uranium mine in Namibia are expected to live in accommodation described as the worst in the world. RTZ also has a long record of trying to prevent workers organising trade unions. For instance, in 1937 the company Chairman was able to report to the shareholders in London on the tense labour situation at the company’s mines in Spain: “Since the mining region was occupied by General Franco’s forces there have been no further labour problems . . . Miners found guilty of troublemaking are court-martialled and shot".

However, Plunder is more than just an account of the nefarious activities of a mining company. It is also a resource book by and about people fighting for their lives, their communities and their environment against the profit-seeking onslaught of just one of the many multinational giants who constitute the very machinery of the capitalist system. The book represents the cooperative efforts of many individuals, organisations and communities around the world brought together by Partizans (People Against RioTinto Zinc and its Subsidiaries) who published the book at their own expense. The text written by Roger Moody is based on research and contributions by people from indigenous communities. trade unions, organisations concerned with the environment and occupational health, and many others. It has been published with the intention of being a handbook for people confronting multinational mining companies, particularly more isolated communities with little experience of the dirty business of capitalism and perhaps unaware that others are in the same situation as them.

Global solidarity

For Socialists Plunder is a valuable book in the battle of ideas. Firstly, because it represents a wealth of evidence to show that the profit system cannot be run in the interests of working people and their environment. Secondly and more importantly, because it has grown out of a vision that global solidarity is the only way to bring about an end to this exploitative global system.

In Plunder we hear the voices of people who are aware that RTZ has only one driving force behind it, the profit motive. The indigenous communities involved in the battle against RTZ bring to the class struggle a sense of communal responsibility to each other and the world around them as well as a sense of individual self-respect. To some of these communities property and hierarchical social organisations are alien concepts. Their experience of alternative lifestyles based on mutual respect and responsibility for the land on which they depend for their living imbues their resistance with a inner strength the importance of which we should not ignore or deny.

The struggles of these communities serve as a reminder that socialism is about knowing that an alternative to capitalist society is possible and that we can bring it about by understanding the source of our oppression and acting in a spirit of comradeship and solidarity with our fellow workers throughout the world.

Kerima Mohideen