HOW THE CIA TOOK THE TEETH OUT OF BRITISH SOCIALISM
The CIA works systematically to ensure that the socialist parties of all Western countries toe a line compatible with U.S. interests. In Britain in the 1950s, the CIA's manipulation of the right wing of the Labour Party swung the party away from its pledge to nationalisation (enshrined in the celebrated Clause IV), away from nuclear disarmament and back towards a commitment to NATO. This decisive intervention by the Agency could be said to have changed the course of modern British history….
Following the end of World War II, the Labour Party was elected on a platform of extensive domestic social reform, and of peaceful co-existence with the Soviet Union in Europe. Fearful of the spread of Communist influence, the right wing of the party, under the new Labour leader Hugh Gaitskell, organised themselves around the journal Socialist Commentary, which became their most important mouthpiece. Throughout the post-war period, Labour's Gaitskellite right wing worked closely with MI5, Special Branch and a variety of CIA front organisations to advance its cause and keep the left at bay. Channelled with massive CIA funds, the right grew in confidence and influence, and vigorously campaigned against left-wingers like Aneurin Bevan, whom they denounced as "dangerous extremists".
Socialist Commentary set out to alert the British labour movement to the "growing dangers of international Communism". It was supported by David Williams, the London correspondent of the New Leader, an American anti-Communist publication backed by the CIA. Williams made it his business to join the British Labour Party and to take an active part in the Fabian Society.
In America, the New Leader provided a focus for weekly meetings of professional anti-Communists in the unions, universities and government service. It had a large staff and a world-wide network of overseas correspondents. New Leader began openly to advocate the infiltration of foreign socialist parties. In 1949, it carried a piece by CIA chief Allen Dulles advocating "a commission of internal security to examine subversive activities in the US and to use the institutions of democracy to destroy them"; this was rather like the head of MI5 writing for The Guardian.
In 1954, Denis Healey MP became the New Leader's London Correspondent.
CIA covert financing of the international student movement also began about this time. The student movement was diverging into two factions: those on the left, who supported the Soviet-funded World Federation of Democratic Youth (WFDY) constituted the most organised section and there was no home for right-wingers and social democratic organisations. To aid the right, MI6 and the CIA helped organise and fund the World Assembly of Youth (WAY).
WAY's initial membership was quite broad and included a number of left-wing socialists with no alignment to Moscow. However it was not long before the right asserted itself in the organisation, turning the student movement into an acceptable stamping ground for those wanting to make their name in preparation for parliamentary politics. Labour backbencher and Sunday Mirror columnist Woodrow Wyatt (who had received many IRD funds in the past) described WAY as "an organisation which does extremely valuable propaganda for the free world, without looking like a propaganda organisation" .
WAY was in contact with major establishment figures: a Friends of WAY Society included Conservative prime minister Sir Anthony Eden, ex-Labour prime minister Clement Atlee, Viscount Chandos (ex-colonial secretary) and Lord Mountbatten's wife Edwina. CIA officer Joseph Burkholder-Smith revealed that 10 (the CIA division which handled front groups) was in liaison with MI6 on all its world-wide front operations, in WAY in particular, and that the CIA were manipulating WAY student leaders.
WAY worked through the Colonial Office to extend its influence in Africa, setting up National Committees in Kenya, Mauritius, Sierra Leone, Seychelles and Uganda. The Colonial Office brought WAY events to the attention of the African colonial governments, arranged for WAY film shows and helped pay the travel expenses of the generally poor African delegates.
During the 1950s, WAY's European Youth Campaign received over £1,300,000 of CIA money, the largest proportion of which went to the British affiliate.
Meanwhile, in June 1950, the New Leader's Melvin Lasky helped set up the Congress for Cultural Freedom (CCF), a body whose declared purpose was "to defend freedom and democracy against the new tyranny sweeping the world" - namely Communism. Given massive CIA funding, the CCF launched political seminars, conferences, newspapers, periodicals, news services and a wide range of political and cultural activities throughout Western Europe. The CCF was one of the CIA's conduits for funding Brian Crozier's Forum World Features.
CCF also organised world-wide student exchanges and conferences in support of the new anti-Communist youth organisations which were promoted by the CIA.
In 1953, the CCF launched Encounter, a joint Anglo-American monthly journal involving MI6 agent C.M. Woodhouse, a covert action veteran who had been involved in Operation Ajax in Iran (a joint CIA/MI6 plot to overthrow the elected government of Mohammed Mossadeq). The magazine exchanged facilities with Socialist Commentary and used many of the same staff and writers. Encounter became one of the most influential liberal journals in the West.
As the CCF network grew, it embraced many prominent figures in the Labour Party - among them Anthony Crosland, who began attending CCF seminars along with Hugh Gaitskell, Denis Healey, Rita Hinden, Daniel Bell and a bevy of American and European politicians and academics.
Crosland's book The Future of Socialism was a major new political thesis which had been influenced by CCF conferences, in which he argued that growing affluence had radically transformed the working class in Europe and thus Marx's theory of class struggle was no longer relevant. The book was immediately adopted as the gospel of Labour's new leadership under Hugh Gaitskell.
During the 1950s, Gaitskell and his friends in the Socialist Commentary group adopted the argument forcibly put in the New Leader that a strong united Europe was essential to prevent the West from Russian attack. They received support from a New York-based group called the American Committee on United Europe, whose leadership included General Donovan, wartime head of the OSS (the fore-runner of the CIA), George Marshall, the U.S. Secretary of State, and Allen Dulles of the CIA.
This high-powered CIA-funded pressure group financed the so-called European Movement, headed by a friend of Hugh Gaitskell's, Joseph Retinger, who promoted select gatherings of European and American politicians, businessmen, aristocrats, top civil servants and military leaders. Founder members of the movement were Hugh Gaitskell and Denis Healey, along with such diverse characters as the president of Unilever and Sir Robert Boothby.
There were also U.S. labour attachés based in the London American embassy. One of them, Philip Kaiser, described his years in London in his memoirs: "The labour attaché is expected to develop contacts with key leaders in the trade union movement and to influence their thinking and decisions in directions compatible with American goals...."
The CIA ran the anti-Communist international trade union movement, the International Confederation of Free Trade Unions (ICFTU), and its various spin-off groups, such as the trade secretariats. The TUC itself helped fund the ICFTU through its affiliation fees. By the mid 1950s, nearly a quarter of the TUC's annual budget was going to the ICFTU.
No-one has yet assembled the full data of trade union officials and Labour politicians who took advantage of the education programmes and freebie trips run by American intelligence for sympathetic people in the labour movement, but it probably runs into thousands. In other words, much of the international political landscape of the post-war era in Britain consisted of U.S.-funded or directed political propaganda/psychological warfare projects. And this was on top of the formal military-diplomatic-financial influences of NATO, the IMF, World Bank, GATT, the UN, etc.
By the late 1950s, Anthony Crosland was acknowledged as the Labour Party's chief theoretician and his role in the CCF was expanded to "encourage sympathetic people" to participate in CCF-sponsored seminars, congresses and private gatherings all around the world. Hugh Gaitskell and other Labour politicians travelled to CCF functions in Europe, New Delhi, Rhodes, Australia and Japan, where they lectured on the theme that traditional socialism was irrelevant in a modern capitalist society. They spent years working to remodel European socialism in the image of the American Democratic Party, and this was backed up by the fullest publicity in Encounter, Socialist Commentary, Preuves, Der Monat and other CCF journals.
The day after Labour's defeat in the 1959 general election, Roy Jenkins, Anthony Crosland and Douglas Jay were among a small group who met with Gaitskell to propose that Labour drop its old commitment to traditional socialism, particularly Clause IV which pledged "common ownership of the means of production, distribution and exchange".
In February 1960, William Rogers, general secretary of the Fabian Society, set up a steering committee with Crosland, Roy Jenkins, Patrick Gordon Walker, Jay and some sympathetic journalists. This group started to work on a manifesto to be released in the event of Gaitskell's defeat in the defence debate at the party conference that year.
Gaitskell was indeed defeated and CND won its campaign of committing the Labour Party to a neutralist programme. With widespread press coverage, Rogers and his friends immediately released 25,000 copies of their manifesto, which appealed to Labour Party members to rally behind Gaitskell and "fight and fight and fight again". The group set up the Campaign for Democratic Socialism (CDS)and with large sums of CIA money channelled through the CCF, they were able to take a permanent office and appoint paid staff. Given the full support, resources and unlimited financial backing of the CIA, the CDS had great advantages over their opponents in the party, who had to rely entirely on unpaid volunteer workers. At the CDS's disposal were field workers in the constituencies and unions, whom it supported with travelling expenses, literature and organisational support, as well as supplying tens of thousands of free copies of the manifesto, pamphlets and other CDS publications, plus a regular bulletin, Campaign, which was circulated free of charge to a large mailing list. All of this was produced without a single subscription-paying member.
CDS achieved its objectives: the trade unions cracked under the pressure and the Labour Party returned to its support for NATO at the party conference in 1961. The Campaign for Democratic Socialism - with its CIA backing - was the most effective pressure group the Labour Party had ever seen. Its influence was out of all proportion to its original support among party members and its financial backers could justly claim to have changed the course of British politics.
George Thomson - a pillar of the CDS, who later resigned from Labour's front bench with Roy Jenkins to form the more right-wing Social Democratic Party (SDP) - said of Rita Hinden: "In the 50s, her ideas were greeted with outraged cries of "Revisionism!" But by the mid 60s, the revisionism of Social Commentary had become the orthodoxy of the Labour Movement".
The Labour Party apparatus remained firmly in Gaitskellian hands over the following decades, particularly the International Department of which Denis Healey had been head until he won his seat as an MP. In 1963, The Labour Party's Organisation Subcommittee was chaired by George Brown, one of the CIA's sources in the Labour Party.
In 1965, Healey's old post was taken over by J. Gwyn Morgan, who had been elected President of the National Union of Students on an anti-Communist ticket. Morgan became General Secretary of the International Student Conference, in charge of finance, in which capacity he negotiated with the CIA's foundations which supplied the bulk of the organisation's funds, and supervised expenditure of the several million dollars devoted to world-wide propaganda.
Morgan visited over 80 different countries in five years and got to know personally many heads of government and leaders of the world's principal social democratic parties. In 1965, he became head of Labour's Overseas Department and two years later he became Assistant General Secretary of the Labour Party.
Around this time, a group of Labour leaders, including Hugh Gaitskell and George Brown, made a direct approach to MI5 for records of tapped telephone conversations of Labour left-wingers, bank-account records of payments from Soviet organisations, or names of East European contacts which could be used to smear their left-wing opponents in the party. Informal flows of information between MI5 and Labour's right-wing became more common, and over the years MI5 recruited freely in Labour's headquarters and among the parliamentary party.
The Labour Party, moulded by American and British intelligence in the Gaitskell image, with its policies firmly rooted in Crosland's manifestos, became the programme of the next Labour government under Harold Wilson.
Michael Stewart, foreign secretary in the Wilson government during the escalation of U.S. military action in Vietnam, and Sam Watson, the powerful Durham miners' leader and ally of Gaitskell, were among those who have since been identified as CIA "agents of influence."
Charles Clarke, who was Neil Kinnock's closest political adviser throughout his years as labour leader, had a background as chair of the World Youth Council, which had well-documented CIA links.
The CIA was also involved in ensuring Labour's commitment to Britain's entry into the Common Market through the afore-mentioned European Movement, the elite international pressure group secretly funded by the CIA, which took most of the credit for the founding of the Common Market. The European Movement wanted a United States of Europe and the rearmament of Germany, which the U.S. government saw as a key to winning the Cold War with Russia.
The European Youth Campaign (EYC) was set up as the most active component of the European Movement in 1951. In one year alone it organised 1,899 sessions and conferences, 900 cinema shows, distributed 1.8 million brochures, staged 21 exhibitions and secured 2,400 minutes of radio time for the cause of European unity. The secretary of the British section of EYC was Maurice Foley, later a Labour MP and minister. Virtually every penny he, and the campaign's other organisers spent, came from the CIA. In eight years, £1.34 million of covert funds were passed on to the EYC by the CIA's American Committee on a United Europe.
SPLITTING THE LABOUR PARTY
American intelligence played a major hand in the formation of the Social Democratic Party (SDP). The inspirers of the SDP were Labour's Douglas Eden (who had previously worked for Brian Crozier's Shield as a researcher) and Stephen Haseler (who taught politics at the City of London). Both met with Crozier at his office while he was running the ISC and afterwards. The three agreed with the creation of a new political party in Britain, with the objective of attracting Labour's right-wing, thereby isolating the left and "cutting it down to size".
Eden and Haseler founded the Social Democratic Alliance (SDA), which had some 700 members, mostly municipal councillors, all over the United Kingdom. Crozier gave financial assistance to the SDA and arranged with Eden and Haseler to approach Roy Jenkins to lead their proposed new party. At the end of February 1981, four Labour right-wingers - Jenkins, Shirley Williams, David Owen and William Rodgers -announced the creation of a Council for Social Democracy and left the Labour Party to form the SDP. Crozier lays the blame for the failure of the SDP to fully achieve his aims on Roy Jenkins' policy of aiming not so much to split Labour as to attract moderate anti-Thatcher MPs from the Conservative Party. In any case, the SDP experiment could be regarded as succeeding in the CIA's designs because it divided the anti-Tory vote at the following elections and contributed to the Conservatives' retention of power.
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