Protecting our turf

Relations between the United States and other countries obviously go back to the origins of American history, but World War II was a real watershed, so let's begin there.

While most of our industrial rivals were either severely weakened or totally destroyed by the war, the United States benefited enormously from it. Our national territory was never under attack and American production more than tripled.

Even before the war, the US had been by far the leading industrial nation in the world -- as it had been since the turn of the century. Now, however, we had literally 50% of the world's wealth and controlled both sides of both oceans. There'd never been a time in history when one power had had such overwhelming control of the world, or such overwhelming security.

The people who determine American policy were well aware that the US would emerge from WW II as the first global power in history, and during and after the war they were carefully planning how to shape the postwar world. Since this is an open society, we can read their plans, which were very frank and clear.

American planners -- from those in the State Department to those on the Council on Foreign Relations (one major channel by which business leaders influence foreign policy) -- agreed that the dominance of the United States had to be maintained. But there was a spectrum of opinion about how to do it.

At the hard-line extreme, you have documents like National Security Council Memorandum 68 (1950). NSC 68 developed the views of Secretary of State Dean Acheson and was written by Paul Nitze, who's still around (he was one of Reagan's arms-control negotiators). It called for a "roll-back strategy" that would "foster the seeds of destruction within the Soviet system," so that we could then negotiate a settlement on our terms "with the Soviet Union (or a successor state or states)."

The policies recommended by NSC 68 would require "sacrifice and discipline" in the United States -- in other words, huge military expenditures and cutbacks on social services. It would also be necessary to overcome the "excess of tolerance" that allows too much domestic dissent.

These policies were, in fact, already being implemented. In 1949, US espionage in Eastern Europe had been turned over to a network run by Reinhard Gehlen, who had headed Nazi military intelligence on the Eastern Front. This network was one part of the US-Nazi alliance that quickly absorbed many of the worst criminals, extending to operations in Latin America and elsewhere.

These operations included a "secret army" under US-Nazi auspices that sought to provide agents and military supplies to armies that had been established by and which were still operating inside the Soviet Union and Eastern Europe through the early 1950s. (This is known in the US but considered insignificant -- although it might raise a few eyebrows if the tables were turned and we discovered that, say, the Soviet Union had dropped agents and supplies to armies established by Hitler that were operating in the Rockies.)

The threat of a good example

No country is exempt from this treatment, no matter how unimportant. In fact, it's the weakest, poorest countries that often arouse the greatest hysteria.

Take Laos in the 1960s, probably the poorest country in the world. Most of the people who lived there didn't even know there was such a thing as Laos; they just knew they had a little village and there was another little village nearby.

But as soon as a very low-level social revolution began to develop there, Washington subjected Laos to a murderous "secret bombing," virtually wiping out large settled areas in operations that, it was conceded, had nothing to do with the war the US was waging in South Vietnam.

Grenada has a hundred thousand people who produce a little nutmeg, and you could hardly find it on a map. But when Grenada began to undergo a mild social revolution, Washington quickly moved to destroy the threat.

From the Bolshevik Revolution of 1917 till the collapse of the Communist governments in Eastern Europe in the late 1980s, it was possible to justify every US attack as a defense against the Soviet threat. So when the United States invaded Grenada in 1983, the chairman of the Joint Chiefs of Staff explained that, in the event of a Soviet attack on Western Europe, a hostile Grenada could interdict oil supplies from the Caribbean to Western Europe and we wouldn't be able to defend our beleaguered allies. Now this sounds comical, but that kind of story helps mobilize public support for aggression, terror and subversion.

The attack against Nicaragua was justified by the claim that if we don't stop "them" there, they'll be pouring across the border at Harlingen, Texas -- just two days' drive away. (For educated people, there were more sophisticated variants, just about as plausible.)

As far as American business is concerned, Nicaragua could disappear and nobody would notice. The same is true of El Salvador. But both have been subjected to murderous assaults by the US, at a cost of hundreds of thousands of lives and many billions of dollars.

There's a reason for that. The weaker and poorer a country is, the more dangerous it is as an example. If a tiny, poor country like Grenada can succeed in bringing about a better life for its people, some other place that has more resources will ask, "why not us?"

This was even true in Indochina, which is pretty big and has some significant resources. Although Eisenhower and his advisers ranted a lot about the rice and tin and rubber, the real fear was that if the people of Indochina achieved independence and justice, the people of Thailand would emulate it, and if that worked, they'd try it in Malaya, and pretty soon Indonesia would pursue an independent path, and by then a significant area of the Grand Area would have been lost.

If you want a global system that's subordinated to the needs of US investors, you can't let pieces of it wander off. It's striking how clearly this is stated in the documentary record -- even in the public record at times. Take Chile under Allende.

Chile is a fairly big place, with a lot of natural resources, but again, the United States wasn't going to collapse if Chile became independent. Why were we so concerned about it? According to Kissinger, Chile was a "virus" that would "infect" the region with effects all the way to Italy.

Despite 40 years of CIA subversion, Italy still has a labor movement. Seeing a social democratic government succeed in Chile would send the wrong message to Italian voters. Suppose they get funny ideas about taking control of their own country and revive the workers' movements the CIA undermined in the 1940s?

US planners from Secretary of State Dean Acheson in the late 1940s to the present have warned that "one rotten apple can spoil the barrel." The danger is that the "rot" -- social and economic development -- may spread.

This "rotten apple theory" is called the domino theory for public consumption. The version used to frighten the public has Ho Chi Minh getting in a canoe and landing in California, and so on. Maybe some US leaders believe this nonsense -- it's possible -- but rational planners certainly don't. They understand that the real threat is the "good example."

Sometimes the point is explained with great clarity. When the US was planning to overthrow Guatemalan democracy in 1954, a State Department official pointed out that "Guatemala has become an increasing threat to the stability of Honduras and El Salvador. Its agrarian reform is a powerful propaganda weapon; its broad social program of aiding the workers and peasants in a victorious struggle against the upper classes and large foreign enterprises has a strong appeal to the populations of Central American neighbors where similar conditions prevail."

In other words, what the US wants is "stability," meaning security for the "upper classes and large foreign enterprises." If that can be achieved with formal democratic devices, OK. If not, the "threat to stability" posed by a good example has to be destroyed before the virus infects others.

That's why even the tiniest speck poses such a threat, and may have to be crushed.

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The liberal extreme

NSC 68 is the hard-line extreme, and remember: the policies weren't just theoretical -- many of them were actually being implemented. Now let's turn to the other extreme, to the doves. The leading dove was undoubtedly George Kennan, who headed the State Department planning staff until 1950, when he was replaced by Nitze -- Kennan's office, incidentally, was responsible for the Gehlen network.

Kennan was one of the most intelligent and lucid of US planners, and a major figure in shaping the postwar world. His writings are an extremely interesting illustration of the dovish position. One document to look at if you want to understand your country is Policy Planning Study 23, written by Kennan for the State Department planning staff in 1948. Here's some of what it says:

we have about 50% of the world's wealth, but only 6.3% of its population....In this situation, we cannot fail to be the object of envy and resentment. Our real task in the coming period is to devise a pattern of relationships which will permit us to maintain this position of disparity....To do so, we will have to dispense with all sentimentality and day-dreaming; and our attention will have to be concentrated everywhere on our immediate national objectives....We should cease to talk about vague and...unreal objectives such as human rights, the raising of the living standards, and democratization. The day is not far off when we are going to have to deal in straight power concepts. The less we are then hampered by idealistic slogans, the better.
PPS 23 was, of course, a top-secret document. To pacify the public, it was necessary to trumpet the "idealistic slogans" (as is still being done constantly), but here planners were talking to one another.

Along the same lines, in a briefing for US ambassadors to Latin American countries in 1950, Kennan observed that a major concern of US foreign policy must be "the protection of our [i.e. Latin America's] raw materials." We must therefore combat a dangerous heresy which, US intelligence reported, was spreading through Latin America: "the idea that the government has direct responsibility for the welfare of the people."

US planners call that idea Communism, whatever the actual political views of the people advocating it. They can be Church-based self-help groups or whatever, but if they support this heresy, they're Communists.

This point is also made clear in the public record. For example, a high-level study group in 1955 stated that the essential threat of the Communist powers (the real meaning of the term Communism in practice) is their refusal to fulfill their service role -- that is, "to complement the industrial economies of the West."

Kennan went on to explain the means we have to use against our enemies who fall prey to this heresy:

The final answer might be an unpleasant one, but...we should not hesitate before police repression by the local government. This is not shameful since the Communists are essentially traitors....It is better to have a strong regime in power than a liberal government if it is indulgent and relaxed and penetrated by Communists.
Policies like these didn't begin with postwar liberals like Kennan. As Woodrow Wilson's Secretary of State had already pointed out 30 years earlier, the operative meaning of the Monroe Doctrine is that "the United States considers its own interests. The integrity of other American nations is an incident, not an end." Wilson, the great apostle of self-determination, agreed that the argument was "unanswerable," though it would be "impolitic" to present it publicly.

Wilson also acted on this thinking by, among other things, invading Haiti and the Dominican Republic, where his warriors murdered and destroyed, demolished the political system, left US corporations firmly in control, and set the stage for brutal and corrupt dictatorships.

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The "Grand Area"
During World War II, study groups of the State Department and Council on Foreign Relations developed plans for the postwar world in terms of what they called the "Grand Area," which was to be subordinated to the needs of the American economy.

The Grand Area was to include the Western Hemisphere, Western Europe, the Far East, the former British Empire (which was being dismantled), the incomparable energy resources of the Middle East (which were then passing into American hands as we pushed out our rivals France and Britain), the rest of the Third World and, if possible, the entire globe. These plans were implemented, as opportunities allowed.

Every part of the new world order was assigned a specific function. The industrial countries were to be guided by the "great workshops," Germany and Japan, who had demonstrated their prowess during the war (and now would be working under US supervision).

The Third World was to "fulfill its major function as a source of raw materials and a market" for the industrial capitalist societies, as a 1949 State Department memo put it. It was to be "exploited" (in Kennan's words) for the reconstruction of Europe and Japan. (The references are to Southeast Asia and Africa, but the points are general.)

Kennan even suggested that Europe might get a psychological lift from the project of "exploiting" Africa. Naturally, no one suggested that Africa should exploit Europe for its reconstruction, perhaps also improving its state of mind. These declassified documents are read only by scholars, who apparently find nothing odd or jarring in all this.

The Vietnam War emerged from the need to ensure this service role. Vietnamese nationalists didn't want to accept it, so they had to be smashed. The threat wasn't that they were going to conquer anyone, but that they might set a dangerous example of national independence that would inspire other nations in the region.

The US government had two major roles to play. The first was to secure the far-flung domains of the Grand Area. That required a very intimidating posture, to ensure that no one interferes with this task -- which is one reason why there's been such a drive for nuclear weapons.

The government's second role was to organize a public subsidy for high-technology industry. For various reasons, the method adopted has been military spending, in large part.

Free trade is fine for economics departments and newspaper editorials, but nobody in the corporate world or the government takes the doctrines seriously. The parts of the US economy that are able to compete internationally are primarily the state-subsidized ones: capital-intensive agriculture (agribusiness, as it's called), high-tech industry, pharmaceuticals, biotechnology, etc.

The same is true of other industrial societies. The US government has the public pay for research and development and provides, largely through the military, a state-guaranteed market for waste production. If something is marketable, the private sector takes it over. That system of public subsidy and private profit is what is called free enterprise.

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Restoring the traditional order

Postwar planners like Kennan realized right off that it was going to be vital for the health of US corporations that the other Western industrial societies reconstruct from wartime damage so they could import US manufactured goods and provide investment opportunities. (I'm counting Japan as part of the West, following the South African convention of treating Japanese as "honorary whites.") But it was crucial that these societies reconstruct in a very specific way.

The traditional, right-wing order had to be restored, with business dominant, labor split and weakened, and the burden of reconstruction placed squarely on the shoulders of the working classes and the poor.

The major thing that stood in the way of this was the antifascist resistance, so we suppressed it all over the world, often installing fascists and Nazi collaborators in its place. Sometimes that required extreme violence, but other times it was done by softer measures, like subverting elections and withholding desperately needed food. (This ought to be Chapter 1 in any honest history of the postwar period, but in fact it's seldom even discussed.)

The pattern was set in 1942, when President Roosevelt installed a French Admiral, Jean Darlan, as Governor-General of all of French North Africa. Darlan was a leading Nazi collaborator and the author of the antisemitic laws promulgated by the Vichy government (the Nazis' puppet regime in France).

But far more important was the first area of Europe liberated -- southern Italy, where the US, following Churchill's advice, imposed a right-wing dictatorship headed by Fascist war hero Field Marshall Badoglio and the King, Victor Emmanuel III, who was also a Fascist collaborator.

US planners recognized that the "threat" in Europe was not Soviet aggression (which serious analysts, like Dwight Eisenhower, did not anticipate) but rather the worker- and peasant-based antifascist resistance with its radical democratic ideals, and the political power and appeal of the local Communist parties.

To prevent an economic collapse that would enhance their influence, and to rebuild Western Europe's state-capitalist economies, the US instituted the Marshall Plan (under which Europe was provided with more than $12 billion in loans and grants between 1948 and 1951, funds used to purchase a third of US exports to Europe in the peak year of 1949).

In Italy, a worker- and peasant-based movement, led by the Communist party, had held down six German divisions during the war and liberated northern Italy. As US forces advanced through Italy, they dispersed this antifascist resistance and restored the basic structure of the prewar Fascist regime.

Italy has been one of the main areas of CIA subversion ever since the agency was founded. The CIA was concerned about Communists winning power legally in the crucial Italian elections of 1948. A lot of techniques were used, including restoring the Fascist police, breaking the unions and withholding food. But it wasn't clear that the Communist party could be defeated.

The very first National Security Council memorandum, NSC 1 (1948), specified a number of actions the US would take if the Communists won these elections. One planned response was armed intervention, by means of military aid for underground operations in Italy.

Some people, particularly George Kennan, advocated military action before the elections -- he didn't want to take a chance. But others convinced him we could carry it off by subversion, which turned out to be correct.

In Greece, British troops entered after the Nazis had withdrawn. They imposed a corrupt regime that evoked renewed resistance, and Britain, in its postwar decline, was unable to maintain control. In 1947, the United States moved in, supporting a murderous war that resulted in about 160,000 deaths.

This war was complete with torture, political exile for tens of thousands of Greeks, what we called "re-education camps" for tens of thousands of others, and the destruction of unions and of any possibility of independent politics.

It placed Greece firmly in the hands of US investors and local businessmen, while much of the population had to emigrate in order to survive. The beneficiaries included Nazi collaborators, while the primary victims were the workers and the peasants of the Communist-led, anti-Nazi resistance.

Our successful defense of Greece against its own population was the model for the Vietnam War -- as Adlai Stevenson explained to the United Nations in 1964. Reagan's advisors used exactly the same model in talking about Central America, and the pattern was followed many other places.

In Japan, Washington initiated the so-called "reverse course" of 1947 that terminated early steps towards democratization taken by General MacArthur's military administration. The reverse course suppressed the unions and other democratic forces and placed the country firmly in the hands of corporate elements that had backed Japanese fascism -- a system of state and private power that still endures.

When US forces entered Korea in 1945, they dispersed the local popular government, consisting primarily of antifascists who resisted the Japanese, and inaugurated a brutal repression, using Japanese fascist police and Koreans who had collaborated with them during the Japanese occupation. About 100,000 people were murdered in South Korea prior to what we call the Korean War, including 30-40,000 killed during the suppression of a peasant revolt in one small region, Cheju Island.

A fascist coup in Colombia, inspired by Franco's Spain, brought little protest from the US government; neither did a military coup in Venezuela, nor the restoration of an admirer of fascism in Panama. But the first democratic government in the history of Guatemala, which modeled itself on Roosevelt's New Deal, elicited bitter US antagonism.

In 1954, the CIA engineered a coup that turned Guatemala into a hell on earth. It's been kept that way ever since, with regular US intervention and support, particularly under Kennedy and Johnson.

One aspect of suppressing the antifascist resistance was the recruitment of war criminals like Klaus Barbie, an SS officer who had been the Gestapo chief of Lyon, France. There he earned his nickname: the Butcher of Lyon. Although he was responsible for many hideous crimes, the US Army put him in charge of spying on the French.

When Barbie was finally brought back to France in 1982 to be tried as a war criminal, his use as an agent was explained by Colonel (ret.) Eugene Kolb of the US Army Counterintelligence Corps: Barbie's "skills were badly needed....His activities had been directed against the underground French Communist party and the resistance," who were now targeted for repression by the American liberators.

Since the United States was picking up where the Nazis had left off, it made perfect sense to employ specialists in antiresistance activities. Later on, when it became difficult or impossible to protect these useful folks in Europe, many of them (including Barbie) were spirited off to the United States or to Latin America, often with the help of the Vatican and fascist priests.

There they became military advisers to US-supported police states that were modeled, often quite openly, on the Third Reich. They also became drug dealers, weapons merchants, terrorists and educators -- teaching Latin American peasants torture techniques devised by the Gestapo. Some of the Nazis' students ended up in Central America, thus establishing a direct link between the death camps and the death squads -- all thanks to the postwar alliance between the US and the SS.

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Our commitment to democracy

In one high-level document after another, US planners stated their view that the primary threat to the new US-led world order was Third World nationalism -- sometimes called ultranationalism: "nationalistic regimes" that are responsive to "popular demand for immediate improvement in the low living standards of the masses" and production for domestic needs.

The planners' basic goals, repeated over and over again, were to prevent such "ultranationalist" regimes from ever taking power -- or if, by some fluke, they did take power, to remove them and to install governments that favor private investment of domestic and foreign capital, production for export and the right to bring profits out of the country. (These goals are never challenged in the secret documents. If you're a US policy planner, they're sort of like the air you breathe.)

Opposition to democracy and social reform is never popular in the victim country. You can't get many of the people living there excited about it, except a small group connected with US businesses who are going to profit from it.

The United States expects to rely on force, and makes alliances with the military -- "the least anti-American of any political group in Latin America," as the Kennedy planners put it -- so they can be relied on to crush any indigenous popular groups that get out of hand.

The US has been willing to tolerate social reform -- as in Costa Rica, for example -- only when the rights of labor are suppressed and the climate for foreign investment is preserved. Because the Costa Rican government has always respected these two crucial imperatives, it's been allowed to play around with its reforms.

Another problem that's pointed to over and over again in these secret documents is the excessive liberalism of Third World countries. (That was particularly a problem in Latin America, where the governments weren't sufficiently committed to thought control and restrictions on travel, and where the legal systems were so deficient that they required evidence for the prosecution of crimes.)

This is a constant lament right through the Kennedy period (after that, the documentary record hasn't yet been declassified). The Kennedy liberals were adamant about the need to overcome democratic excesses that permitted "subversion" -- by which, of course, they meant people thinking the wrong ideas.

The United States was not, however, lacking in compassion for the poor. For example, in the mid-1950s, our ambassador to Costa Rica recommended that the United Fruit Company, which basically ran Costa Rica, introduce "a few relatively simple and superficial human-interest frills for the workers that may have a large psychological effect."

Secretary of State John Foster Dulles agreed, telling President Eisenhower that to keep Latin Americans in line, "you have to pat them a little bit and make them think that you are fond of them."

Given all that, US policies in the Third World are easy to understand. We've consistently opposed democracy if its results can't be controlled. The problem with real democracies is that they're likely to fall prey to the heresy that governments should respond to the needs of their own population, instead of those of US investors.

A study of the inter-American system published by the Royal Institute of International Affairs in London concluded that, while the US pays lip service to democracy, the real commitment is to "private, capitalist enterprise." When the rights of investors are threatened, democracy has to go; if these rights are safeguarded, killers and torturers will do just fine.

Parliamentary governments were barred or overthrown, with US support and sometimes direct intervention, in Iran in 1953, in Guatemala in 1954 (and in 1963, when Kennedy backed a military coup to prevent the threat of return to democracy), in the Dominican Republic in 1963 and 1965, in Brazil in 1964, in Chile in 1973 and often elsewhere. Our policies have been very much the same in El Salvador and in many other places across the globe.

The methods are not very pretty. What the US-run contra forces did in Nicaragua, or what our terrorist proxies do in El Salvador or Guatemala, isn't only ordinary killing. A major element is brutal, sadistic torture -- beating infants against rocks, hanging women by their feet with their breasts cut off and the skin of their face peeled back so that they'll bleed to death, chopping people's heads off and putting them on stakes. The point is to crush independent nationalism and popular forces that might bring about meaningful democracy.

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The three-sided world

From the early 1970s, the world has been drifting into what's called tripolarism or trilateralism -- three major economic blocs that compete with each other. The first is a yen-based bloc with Japan as its center and the former Japanese colonies on the periphery.

Back in the thirties and forties, Japan called that The Greater East Asia Co-Prosperity Sphere. The conflict with the US arose from Japan's attempt to exercise the same kind of control there that the Western powers exercised in their own spheres. But after the war, we reconstructed the region for them. We then had no problem with Japan exploiting it -- they just had to do it under our overarching power.

There's a lot of nonsense written about how the fact that Japan became a major competitor proves how honorable we are and how we built up our enemies. The actual policy options, however, were narrower. One was to restore Japan's empire, but now all under our control (this was the policy that was followed).

The other option was to keep out of the region and allow Japan and the rest of Asia to follow their independent paths, excluded from the Grand Area of US control. That was unthinkable.

Furthermore, after WW II, Japan was not regarded as a possible competitor, even in the remote future. It was assumed that maybe somewhere down the road Japan would be able to produce knickknacks, but nothing beyond that. (There was a strong element of racism in this.) Japan recovered in large part because of the Korean War and then the Vietnam War, which stimulated Japanese production and brought Japan huge profits.

A few of the early postwar planners were more far-sighted, George Kennan among them. He proposed that the United States encourage Japan to industrialize, but with one limit: the US would control Japanese oil imports. Kennan said this would allow us "veto power" over Japan in case it ever got out of line. The US followed this advice, keeping control over Japan's oil supplies and refineries. As late as the early 1970s, Japan still controlled only about 10% of its own oil supplies.

That's one of the main reasons the United States has been so interested in Middle Eastern oil. We didn't need the oil for ourselves; until 1968, North America led world oil production. But we do want to keep our hands on this lever of world power, and make sure that the profits flow primarily to the US and Britain.

That's one reason why we have maintained military bases in the Philippines. They're part of a global intervention system aimed at the Middle East to make sure indigenous forces there don't succumb to "ultranationalism."

The second major competitive bloc is based in Europe and is dominated by Germany. It's taking a big step forward with the consolidation of the European Common Market. Europe has a larger economy than the United States, a larger population and a better educated one.

If it ever gets its act together and becomes an integrated power, the United States could become a second-class power. This is even more likely as German-led Europe takes the lead in restoring Eastern Europe to its traditional role as an economic colony, basically part of the Third World.

The third bloc is the US-dominated, dollar-based one. It was recently extended to incorporate Canada, our major trading partner, and will soon include Mexico and other parts of the hemisphere, through "free trade agreements" designed primarily for the interests of US investors and their associates.

We've always assumed that Latin America belongs to us by right. As Henry Stimson (Secretary of War under FDR and Taft, Secretary of State under Hoover), once put it, it's "our little region over here, which never has bothered anybody." Securing the dollar-based bloc means that the drive to thwart independent development in Central America and the Caribbean will continue.

Unless you understand our struggles against our industrial rivals and the Third World, US foreign policy appears to be a series of random errors, inconsistencies and confusions. Actually, our leaders have succeeded rather well at their assigned chores, within the limits of feasibility.

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