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Annotated captions of The Power Principle - Part I: Empire in English

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This film contains controversial subject matter.

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Interview subjects and creators of some source material

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may not agree with certain views presented.

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The power principle is a non-profit documentary and has been released for free.

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For what shall it profit a man, if he shall gain the whole world,

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and lose his own soul? - Mark 8:36

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(Female Narrator) November 1989.

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After more than a quarter of a century, the most visible symbol

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of the ideological divide between Soviet Russia and the United States

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is declared a non-entity.

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Since its creation, 171 people

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have been killed attempting to cross the Berlin wall.

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Now, a euphoric public chips away

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at what was soon to be a relic of the cold war.

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For Americans, it was the end of an era.

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And soon, a new president would be sworn into office

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to realize the dreams of a world without a major military rival.

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Many believed that the specter of what President Eisenhower had termed:

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'the military-industrial complex' would become a thing of the past.

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Rather than devoting enormous sums to military spending

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taxpayer funds could now be allocated to a radical expansion in healthcare

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and other forms of social spending.

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The dream was not to be.

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On February 1st, 1999

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the Clinton administration released its new federal budget

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It contained a tiny 3% increase in spending on social programs.

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Meanwhile, $112 billion in new funds

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were allocated to the military, while the budget of the CIA

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and other intelligence agencies rose to $29 billion.

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Clinton had promised what he called: "a peace dividend"

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and delivered in the form of modest cuts to some elements of the military.

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Yet at the same time,

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his administration expanded the influence of the Pentagon in key areas.

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One of their most significant acts

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was to end the official ban on advanced arms exports to Latin America

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and the former Soviet Bloc countries.

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Secretary of State Warren Christopher

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instructed U.S. embassies to help American arms companies promote trade.

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Christopher had previously served as director of Lockheed Martin,

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the largest arms manufacturer in the world.

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The rise in arms sales coincided with a massive increase in privatization.

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Many of the jobs cut from the military

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were simply transferred to private contractors.

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Over 100,000 by the end of Clinton's first term.

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In the wake of 9/11

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the American military budget doubled to over $700 billion.

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Today, it is estimated at over $1 trillion.

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I've said that we need to increase the size of our military

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which, politically, if it got to the floor, probably would pass,

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but, as you know, there are a bunch of folks on the Left

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who think that that is a waste of money. I think it's important for us to do.

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(Narrator) As a whole, the U.S. now spends as much on war

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as the rest of the world combined.

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An estimated 800 U.S. military bases

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in at least 150 countries crisscross the globe.

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To put these numbers in perspective,

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more money is now spent on air conditioning for American military personnel

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than the entire budget of NASA.

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In the halls of power,

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the idea of initiating significant cuts to war spending

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has become almost unthinkable.

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This film will examine the reasons why.

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The Power Principle

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I. Empire

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(Announcer) Village squares and public grounds.

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Their memory and the memory of all their brothers in arms before them

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are enshrined in a chain of tribute

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that reaches back across the developing story of a nation itself.

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Its recognition of its manifest destiny

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to be strong enough to support freedom beyond its own shores.

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(Narrator) Over 200 years ago, the philosopher Adam Smith

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made a remarkable prediction.

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He claimed that America would become an extensive empire

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which seems very likely to become one of the greatest

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and most formidable that ever was in the world.

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George Washington agreed, suggesting that the new republic

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was an infant empire.

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It would take nearly two centuries for the prophecy of Adam Smith

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to be fully realized.

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Most historians trace the explosion of American interventionism

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to the Monroe Doctrine of 1823.

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But it was only during the 20th century

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that the empire would become truly global.

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Following World War II, two major players were left standing:

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the United States

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and the Soviet Union.

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Yet, there was a significant power imbalance.

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This is an image of what America looked like after the war.

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And this, the Soviet Union.

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During World War II,

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over 20 million Russians had perished at the hands of the 3rd Reich.

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The Red Army expanded into Eastern Europe.

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Before the breakup of the Soviet Bloc, citizens in countries such as Poland,

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Hungary,

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and Czechoslovakia were denied the right to self-determination

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and subjected to violent repression by the Soviet State.

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Yet, did these actions justify atrocities by the United States?

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And were pronouncements by western leaders

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of an international communist conspiracy

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the result of realism, or propaganda?

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One theory can be found in National Security Council document #68

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released internally in the year 1950.

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It states that U.S. military superiority

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was a policy which the United States would probably pursue

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even if there were no Soviet Union.

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We begin by testing this viewpoint

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through examination of five American interventions during the Cold War.

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Iran, 1951

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(N. Ahmed) Mohammed Mossadegh, who was democratically elected,

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he became the prime minister overwhelmingly.

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He won landslide elections.

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The British and the Americans were disturbed by this,

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precisely because they realized

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that it would endanger their control of the oil supplies

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because the imperative of this whole democratic process

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was precisely the injustice of Iranian oil

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being pretty much controlled

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by the external powers that would be the United States and Britain.

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(Announcer) Our picture could only be complete if we could show you

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what the conditions were like before the oil company came into being.

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But the British have introduced hygiene into Persia

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education and sport.

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In your opinion Mr. Jackson, what would be the probable effect

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in Persia of British withdrawal?

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- I think economic disaster.

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Persians think that by nationalizing oil, they're going to get rich.

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Unfortunately, the reverse will be the case.

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The Iranians were obviously very upset by this and they wanted

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all revenues to be used to develop the infrastructure of Iran

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and for the benefit or the Iranian people.

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If you look at the classified documents

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that have now come out of the State Department and British Foreign Office,

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this idea was very candidly discussed

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that democracy was considered to be a problem.

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In fact, some of the documents clearly point out

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that there was no actual influence from the Communist Party,

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that this was very much a democratic movement

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and that British and American officials were very aware

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that this was a truly indigenous movement.

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Yet what they were saying publicly was quite different.

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We have public statements

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from British and American officials that this was

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a left-leaning government, that it was infiltrated by

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and very close to the Tudeh party or the Communist party

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and that this was really an attempt by the Soviet Union

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to get control of Iran. This was therefore a geopolitical threat.

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What actually happened as a result was that MI:6 and the CIA

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worked together to organize a coup

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that would overthrow Mossadegh.

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"Iranian oil grab set for today"

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We were afraid to sent troops into Iran

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and use the old model

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Instead, we sent a CIA agent, Kermit Roosevelt, Teddy Roosevelt's grandson.

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Kermit Roosevelt, with a few million dollars did an amazing thing.

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He managed to overthrow

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through a series of riots and a coup basically

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he overthrew this democratically elected president, Mossadegh,

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and replaced him with the Shah.

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(K. Roosevelt) There was some discussion.

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The first of those went around the table

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and the only person on the State Department side whom I can remember

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as taking any kind of a very specific position was ambassador Henderson

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who was back for this meeting.

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He said that he wanted to know maneuver details.

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He felt that this was a considerable departure

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from diplomatic tradition but he felt it was required by the situation.

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He wanted to approve it, and he wanted to know as little about it as possible.

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This basically happened, there was a violent military operation

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which removed Mossadegh and reinstalled the Shah of Iran.

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("Mossadegh", Stage play) It is all relevant.

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They have made many accusations against me.

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But I know that I am guilty of only one thing and that is

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I did not surrender to foreign influences.

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In 1976, Amnesty International concluded

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that the Shah's CIA-trained security force (SAVAK)

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had the worst human rights records on the planet.

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It went on to claim that the torture techniques

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the CIA has taught SAVAK were "beyond belief".

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(J. Carter) Iran, because of the great leadership of the Shah

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is an island of stability

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in one of the more troubled areas of the world.

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Death to the Shah's mercenary army!

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God is great!

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This is what established the conditions of hostility

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towards U.S. and British interference in that country.

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One of the really popular spaces in Iran.

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Romania, 1989

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(Narrator) In December 1989

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Romanians stormed the central committee of Stalinist leader Nicolae Ceaușescu

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He was executed along with his wife.

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Iran, 1979

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In Iran, the people would also storm the headquarters of their oppressors.

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Interior, SAVAK HQ

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The Shah himself escaped, but many of his henchmen did not.

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Iranians took over the headquarters of SAVAK

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and executed its leadership.

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Really, Kermit Roosevelt was the forerunner of both the economic hitmen

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and this new breed of jackal that today works for private organizations.

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That set the stage for what has happened ever since.

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I often look back and think "What if we had

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instead, supported Mossadegh?" and said

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"He's democratically elected, let's help them."

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That could have changed the whole politics of the Middle East.

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We would never have had the problems that we're having today.

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(Narrator) Despite continued aggression against Iran by Israel

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and the United States, including violent covert operations,

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it has not attacked another country in over 200 years.

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What we wanted to do was have a terror campaign

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to terrify Árbenz particularly,

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terrify his troops,

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much as the German Stucka bombers terrified

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the population of Holland, Belgium and Poland

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at the onset of World War II, and just rendered everybody paralyzed.

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Guatemala, 1954

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(Narrator) Shortly after the coup in Iran, the democratically elected government

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of Jacobo Árbenz in Guatemala was similarly overthrown.

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When Árbenz took office, 2.2% of Guatemalans

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owned 70% of the arable land.

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Árbenz' programs included giving away uncultivated land grants

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to around 100,000 landless peasants.

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He also instituted a program of support for union rights

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and other basic reforms.

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Árbenz is best described as a moderate progressive, not a Marxist.

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Yet his programs were met with outrage in Washington.

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Especially concerned were shareholders of Rockefeller's United Fruit Company.

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Under the dictator Jorge Ubico

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United Fruit had established control of 42% of Guatemala's land.

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and was exempted from taxes and import duties.

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The United Fruit Company really owned half the country, literally.

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About only a third of the land, the million acre

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plantations, only a third of it was cultivated. On the other hand, you had

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several hundreds of thousands

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of landless Indian workers, rural workers

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who were in dire poverty.

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(Narrator) The case of United Fruit presents a particularly glaring example

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of the evolving symbiotic relationship

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between powerful corporations and the American state.

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CIA director Allen Dulles belonged to United Fruit's law firm

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and held shares in the company.

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John Moors Cabot, Assistant Secretary of State for Inter-American Affairs

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was the brother or a former United Fruit president.

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President Eisenhower's personal secretary

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was married to the head of United Fruit's public relations department.

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Clearly, Árbenz had to go.

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The problem was that he was not a communist,

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nor did his government have any links to the Soviet Union.

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In fact, Guatemala didn't even have diplomatic relations with Russia.

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The solution came by way of a man named Edward Bernays.

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Known as 'the father of public relations',

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Bernays was a major figure in the development of advertising and propaganda.

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Eddie Bernays is known as the father of spin

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or the father of public relations.

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Fascinating individual, he was double nephew of Sigmund Freud

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and he actually learned

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fundamental techniques of human psychology

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and the ability to manipulate and manage human behavior

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from uncle Sigmund.

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He, at the same time, publicized

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and promoted uncle Sigmund in the United States

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and then aggrandized himself with his association with his uncle.

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Eddie Bernays believed that, fundamentally, democracy was untenable

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and that people are just too stupid

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to govern themselves in a democracy.

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His rationalization was that

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there needed to be this elite of guardians,

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of public policy and public opinion who would manage society

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and that the public relation practitioner

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would be a professional who would work for government and industry

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in managing and manipulating

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and doing what Eddie called 'engineering consent'.

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In the 1930s, a journalist friend of Edward Bernays'

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by the name of Karl von Weigand came back from nazi Germany.

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He had interviewed

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Goebbels, the nazi propaganda minister.

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He said to his friend Bernays: "Eddie,

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Joseph Goebbels has an even bigger propaganda library than yours

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and he reads and uses all your books."

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When Sheldon Rampton and I were writing about this in the '90s,

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we wrote a passage saying that we wondered if at some point Bernays,

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a liberal Jewish intellectual, began to realize that this technique

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of manipulating and managing public opinion and behavior

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that he thought was essential to preserve democracy

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might not just as easily be used in the wrong hands to subvert democracy.

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That question we raised was answered later

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when we found out that indeed Bernays was completely comfortable

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helping to engineer and manage this overthrow

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of the elected government of Guatemala and he was well-aware

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of what had resulted from that.

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(Narrator) Bernays' strategy was to take the anti-communist model

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used during the coup in Iran and turn it into a media blitz.

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Bernays was offered huge sums of money to develop a propaganda campaign

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against Árbenz and the people of Guatemala.

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Shortly before the coup, articles began appearing in The New York Times

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The Atlantic Monthly, The New York Herald Tribune, Newsweek,

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Time, The New Leader and other publications

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concerning the growing influence of Guatemala's communists.

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Guatemala was the new battleground in the war against the Soviets.

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(Announcer) In Guatemala, the Jacob Árbenz regime became increasingly communistic

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after its inauguration in 1951.

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Communists in the Congress and high governmental positions

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controlled major comities, labor and farm groups and propaganda facilities.

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They agitated and led in demonstrations against neighboring countries

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and the United States.

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(J. Petras) Árbenz was overthrown in order to restore to power

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a right-wing regime.

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From 1954 to 1990,

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when some sort of a peace accord was signed,

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225,000 Indians mostly were murdered

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in Guatemala by the CIA-installed military regime.

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It was a victory for the U.S. in the Cold War, but it was a terrible

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genocidal situation in Guatemala

tzmofficial 22:23
22:27

and finally recognized, at least verbally, by Clinton

tzmofficial 22:27
22:29

who actually apologized

tzmofficial 22:29
22:34

to the Guatemalan people for the destruction

tzmofficial 22:34
22:39

which resulted from the U.S. military coup.

tzmofficial 22:39
22:43

This is the first time in the history of the world

tzmofficial 22:43
22:46

that the communist government has been overthrown by the people.

tzmofficial 22:46
22:50

For that, we congratulate you and the people of Guatemala

tzmofficial 22:50
22:52

for the support they have given.

tzmofficial 22:52
22:54

We are sure that under your leadership

tzmofficial 22:55
22:57

supported by the people whom I have met by the hundreds

tzmofficial 22:58
23:02

on my visit to Guatemala, that Guatemala in going to enter

tzmofficial 23:02
23:07

a new era in which there will be prosperity for the people

tzmofficial 23:07
23:09

together with liberty for the people.

tzmofficial 23:14
23:17

I founded the historical memory project

tzmofficial 23:19
23:21

in 2000-2001.

tzmofficial 23:21
23:26

When I organized the first conference for the project

tzmofficial 23:29
23:34

to create a forum to discuss the genocide in Guatemala

tzmofficial 23:35
23:39

because in 2000, I came back from Guatemala after 3 years

tzmofficial 23:39
23:43

of working with a UN truth commission

tzmofficial 23:43
23:46

collecting war survivor's testimonies,

tzmofficial 23:48
23:52

field work that we did for about a year in the highlands of Guatemala.

tzmofficial 23:54
23:58

When I came back to the States... Well, first I was struck by

tzmofficial 23:58
24:03

the lack of discussion there is currently with regards to

tzmofficial 24:04
24:07

indigenous peoples in the Latin American context

tzmofficial 24:07
24:11

and also the lack of academic or scholarly discussion

tzmofficial 24:12
24:16

about genocide and state violence during the Cold War years.

tzmofficial 24:16
24:22

In the context of a 36-year civil war in Guatemala

tzmofficial 24:22
24:25

the Guatemalan state committed genocide

tzmofficial 24:25
24:30

against at least, that we documented, 4 indigenous groups.

tzmofficial 24:30
24:35

Indigenous peoples throughout the Americas continue to be a vulnerable population,

tzmofficial 24:36
24:40

targeted for elimination by the state.

tzmofficial 24:40
24:43

I took testimonies of war survivors there:

tzmofficial 24:43
24:48

massacres, smashing babies against trees,

tzmofficial 24:49
24:54

raping women, all the terrible things that we learnt

tzmofficial 24:55
24:59

through the collection of testimonies, but I think that

tzmofficial 24:59
25:02

the most important thing to understand is how

tzmofficial 25:05
25:08

U.S. ideologies of national security doctrine

tzmofficial 25:09
25:12

resonated with local ideologies

tzmofficial 25:14
25:16

that polarized and fragmented society

tzmofficial 25:17
25:20

with this notion of the internal enemy

tzmofficial 25:21
25:24

The ideology behind the national security doctrine

tzmofficial 25:24
25:28

that was implemented throughout the Americas during the Cold War years

tzmofficial 25:28
25:32

said that there was an enemy inside the population,

tzmofficial 25:32
25:36

not outside, because armies, supposedly

tzmofficial 25:36
25:40

are supposed to protect borders from an external enemy.

tzmofficial 25:40
25:44

But the national security doctrine said

tzmofficial 25:44
25:47

to the military, the local armies over there,

tzmofficial 25:47
25:50

was to say "Look, you need to find terrorists

tzmofficial 25:50
25:55

or the internal enemy inside the country."

tzmofficial 25:55
25:58

So, anyone was perceived

tzmofficial 25:58
26:02

by the army, militaries, death squads and paramilitary forces

tzmofficial 26:02
26:05

as the internal enemy.

tzmofficial 26:05
26:10

What that did was to turn people against each other.

tzmofficial 26:10
26:13

Indigenous communities are usually very tight.

tzmofficial 26:15
26:19

People rely on each other, families rely on each other,

tzmofficial 26:19
26:23

it's very different from the Western notion of neighborhoods or communities.

tzmofficial 26:24
26:26

In Guatemala, indigenous people

tzmofficial 26:26
26:29

depend on each other for survival.

tzmofficial 26:29
26:32

When you insert fear

tzmofficial 26:32
26:36

and you insert, at the heart of the community

tzmofficial 26:36
26:38

this notion of the internal enemy

tzmofficial 26:39
26:41

the impact was terrible

tzmofficial 26:42
26:47

again, because you fragmented families and entire communities

tzmofficial 26:48
26:52

that became suspicious of one another.

tzmofficial 26:52
26:55

Trust and solidarity

tzmofficial 26:55
27:00

within these communities have been very difficult to rebuild.

tzmofficial 27:00
27:03

That to me is very important to consider

tzmofficial 27:05
27:07

when we look at

tzmofficial 27:08
27:10

atrocities in Latin America,

tzmofficial 27:10
27:13

what has been the aftermath of these atrocities,

tzmofficial 27:13
27:16

the long lasting consequences of violence.

tzmofficial 27:16
27:21

Humanity has said enough and has set itself in motion.

tzmofficial 27:21
27:24

Its giant steps will not stop

tzmofficial 27:24
27:27

until they lead to true independence.

tzmofficial 27:28
27:31

I wanted to mention one case in particular,

tzmofficial 27:31
27:34

the painful one of the Congo.

tzmofficial 27:34
27:37

Unique in modern history,

tzmofficial 27:37
27:41

this shows how one can flout, with total impunity

tzmofficial 27:41
27:45

and the most insolent cynicism, the rights of peoples.

tzmofficial 27:45
27:48

Under the United Nations flag,

tzmofficial 27:48
27:51

Lumumba was killed in the Congo.

tzmofficial 27:51
27:53

And it's the same United Nations,

tzmofficial 27:53
27:56

which the Americans want to send

tzmofficial 27:56
27:59

to inspect our own territory.

tzmofficial 28:00
28:02

Congo, 1961

tzmofficial 28:08
28:12

(Narrator) Similar events to that of Guatemala would unfold in the Congo,

tzmofficial 28:12
28:15

after Patrice Lumumba was elected Prime Minister,

tzmofficial 28:15
28:18

setting a tragic pattern for all of Africa.

tzmofficial 28:19
28:21

The post World War II era

tzmofficial 28:21
28:25

gave birth to revolutionary movements across the continent

tzmofficial 28:25
28:28

threatening old colonial powers.

tzmofficial 28:28
28:30

As with the French in Indochina,

tzmofficial 28:30
28:35

the colonial powers first attempted to crush such movements through violence.

tzmofficial 28:35
28:38

Eventually, however, nominal independence,

tzmofficial 28:38
28:42

featuring corrupt governments, became the model of choice.

tzmofficial 28:43
28:45

Colonialism is when

tzmofficial 28:47
28:52

one political economy dominates and conquers another.

tzmofficial 28:53
28:57

Neo-colonialism is when the imperial power takes down its flag

tzmofficial 28:57
29:02

and a local national puts up its flag,

tzmofficial 29:02
29:05

but the economic relations remain the same.

tzmofficial 29:05
29:08

That is, the imperialist country still extracts value

tzmofficial 29:08
29:10

from the human beings in the colony,

tzmofficial 29:10
29:12

but now it's done in the name of trade.

tzmofficial 29:12
29:17

Neo-colonialism means so called 'independence' for states.

tzmofficial 29:17
29:20

But all that basically means is they have their own flag

tzmofficial 29:20
29:23

sometimes their own airlines

tzmofficial 29:24
29:26

and perhaps their own stamps

tzmofficial 29:27
29:29

and their own coinage.

tzmofficial 29:37
29:38

(Narrator) In the case of the Congo,

tzmofficial 29:39
29:42

an estimated 8 to 10 million people had died

tzmofficial 29:42
29:46

via forced labor and murder under King Leopold of Belgium.

tzmofficial 29:47
29:50

Now, the Congolese people would be granted independence.

tzmofficial 29:51
29:53

or so they believed.

tzmofficial 29:53
29:56

The first elected Prime Minister was Patrice Lumumba,

tzmofficial 29:56
29:59

who had been raised in a mud brick house.

tzmofficial 29:59
30:03

Fighters for independence now victorious,

tzmofficial 30:04
30:07

I salute you on behalf of the Congolese government.

tzmofficial 30:08
30:11

We've had our share of irony,

tzmofficial 30:11
30:13

of insults

tzmofficial 30:13
30:17

of blows that were inflicted upon us morning, noon and night,

tzmofficial 30:18
30:20

simply for being Negroes.

tzmofficial 30:20
30:24

Who will forget the shootings,

tzmofficial 30:24
30:26

where so many of our brothers died

tzmofficial 30:26
30:28

those who would no longer be cowed

tzmofficial 30:28
30:32

by a regime based on injustice, oppression and exploitation.

tzmofficial 30:33
30:35

[Applause]

tzmofficial 30:37
30:39

(Narrator) Lumumba's speech, as well as his belief

tzmofficial 30:39
30:41

that the Congo's vast mineral wealth

tzmofficial 30:41
30:44

should belong to the people who lived there

tzmofficial 30:44
30:47

set off alarm bells in the West.

tzmofficial 30:47
30:49

Under the hospices of the UN,

tzmofficial 30:49
30:54

the Belgians insisted on retaining a strong military presence in the country.

tzmofficial 30:55
30:59

Lumumba traveled to the United States and asked for help.

tzmofficial 30:59
31:02

It's with great pleasure,

tzmofficial 31:03
31:05

that I find myself today in the United States,

tzmofficial 31:07
31:09

a country of democracy and freedom.

tzmofficial 31:10
31:13

(Narrator) Lumumba's overtures were rejected.

tzmofficial 31:13
31:17

Rebuffed by one superpower, he turned to the other.

tzmofficial 31:17
31:20

The Soviets gave only token support.

tzmofficial 31:20
31:24

But Lumumba's act of defiance was enough to sign his death warrant.

tzmofficial 31:25
31:26

After South Africa,

tzmofficial 31:26
31:30

the Congo has the largest working class in sub-Saharan Africa.

tzmofficial 31:31
31:33

If the Congo achieved real independence,

tzmofficial 31:33
31:37

it would pose a direct threat to Western business interests

tzmofficial 31:37
31:39

across the Continent.

tzmofficial 31:41
31:46

The United States deplores the unilateral action of the Soviet Union

tzmofficial 31:47
31:49

in supplying aircraft and other equipment

tzmofficial 31:49
31:52

for military purposes to the Congo.

tzmofficial 31:52
31:56

The Soviet action, which seems to be motivated entirely

tzmofficial 31:56
32:00

by the Soviet Union's political designs in Africa.

tzmofficial 32:00
32:03

I must repeat that the United States

tzmofficial 32:03
32:07

takes a most serious view of this action by the Soviet Union.

tzmofficial 32:09
32:11

In 2001, the minutes of a long buried meeting

tzmofficial 32:12
32:15

of the National Security Council were revealed to the public.

tzmofficial 32:15
32:18

During the gathering, President Eisenhower

tzmofficial 32:18
32:22

told CIA chief Allen Dulles that Lumumba had to be "eliminated".

tzmofficial 32:23
32:26

(Narrator) At around the same time as Eisenhower delivered his judgment,

tzmofficial 32:27
32:29

articles began appearing in the New York times

tzmofficial 32:29
32:33

painting Lumumba as a Communist and Soviet stooge.

tzmofficial 32:33
32:37

They published a fraudulent claim that Lumumba had received $200,000

tzmofficial 32:38
32:41

from the Belgian communist party, and without a hint of irony,

tzmofficial 32:41
32:45

referred to the first democratically elected leader of the Congo

tzmofficial 32:45
32:47

as a dictator.

tzmofficial 32:47
32:50

The CIA assassination plot got under way

tzmofficial 32:50
32:53

when Sydney Gottlieb who headed up the psychochemical department

tzmofficial 32:53
32:58

of the agency's mind control experiments carried a vial of poison to the Congo

tzmofficial 32:58
33:01

via diplomatic pouch.

tzmofficial 33:03
33:06

The plot was abandoned however in favor of a hit

tzmofficial 33:06
33:11

sponsored by the Belgians, in collaboration with Congolese military officials.

tzmofficial 33:13
33:17

After being deposed in a coup, Lumumba and two of his associates

tzmofficial 33:17
33:19

were tied up and executed.

tzmofficial 33:42
33:45

Taking Lumumba's place was Joseph Mobutu.

tzmofficial 33:45
33:50

He looted an estimated $4 billion during his time in office.

tzmofficial 33:50
33:53

More importantly for the West, he allowed the continued looting

tzmofficial 33:53
33:57

of the Congo's vast mineral reserves by Western corporations.

tzmofficial 33:58
34:01

Today, the average life expectancy in the Congo

tzmofficial 34:01
34:03

is 46 years.

tzmofficial 34:03
34:06

The United States has been engaged in an effort to stop the advance

tzmofficial 34:07
34:11

of communism in Central America by doing what we do best:

tzmofficial 34:11
34:13

by supporting democracy.

tzmofficial 34:13
34:16

Grenada, 1983

tzmofficial 34:31
34:33

Grenada, that tiny little island...

tzmofficial 34:34
34:38

It isn't nutmeg that's at stake in the Caribbean and Central America,

tzmofficial 34:38
34:41

it is the United States National security.

tzmofficial 34:41
34:44

(Narrator) In Grenada, the New Jewel Movement had attempted to challenge

tzmofficial 34:45
34:47

emerging patterns of free market reform.

tzmofficial 34:47
34:51

Unemployment has dropped from 49% to 14%.

tzmofficial 34:52
34:56

The literacy rate rose to a remarkable 98%.

tzmofficial 34:56
34:59

Free healthcare and secondary education were established.

tzmofficial 34:59
35:03

Grenadians received scholarships for study abroad.

tzmofficial 35:04
35:09

As I was teaching at Binghamton University,

tzmofficial 35:09
35:14

one of my graduate students was actually from Grenada.

tzmofficial 35:16
35:20

When the revolution took place against the corrupt,

tzmofficial 35:20
35:23

right-wing authoritarian regime

tzmofficial 35:24
35:26

and the New Jewel Movement came to power,

tzmofficial 35:27
35:29

the student asked me what he should do, I said:

tzmofficial 35:29
35:33

"Go back and work in your government. This is a chance

tzmofficial 35:33
35:37

to bring about some of the changes we talk about in our seminars."

tzmofficial 35:38
35:43

He went back and the Grenadian government proceeded to implement

tzmofficial 35:43
35:47

advanced social programs, housing programs,

tzmofficial 35:47
35:50

cultivating, agriculture,

tzmofficial 35:51
35:57

generally opening the country to citizens' participation.

tzmofficial 35:58
36:02

Now, the U.S., especially the Reagan administration,

tzmofficial 36:02
36:04

was very upset with several things.

tzmofficial 36:05
36:08

1) The fact that Grenada

tzmofficial 36:09
36:12

was declaring an independent foreign policy

tzmofficial 36:12
36:16

accepted aid from whatever country was offering it,

tzmofficial 36:17
36:22

whether it was the European Union, Cuba, or what have you.

tzmofficial 36:22
36:26

The fact that the Cubans sent a mission to Grenada

tzmofficial 36:26
36:29

to build a major airport

tzmofficial 36:29
36:32

became a pretext for Reagan to assert that

tzmofficial 36:32
36:37

this airfield was going to be a Soviet base when in fact,

tzmofficial 36:38
36:43

the funding for the Cuban construction team came from England.

tzmofficial 36:44
36:49

Nevertheless, the social changes and the independent foreign policy

tzmofficial 36:49
36:52

provoked the ire of the hard-liners

tzmofficial 36:52
36:55

in the Reagan administration.

tzmofficial 36:55
37:01

The charges that Grenada was a communist base

tzmofficial 37:01
37:05

were absolutely rejected.

tzmofficial 37:05
37:08

The fact that there was a coup attempt

tzmofficial 37:08
37:11

within the Grenadian government

tzmofficial 37:11
37:14

to oust the president Bishop

tzmofficial 37:14
37:19

served as the detonator for the U.S. intervention.

tzmofficial 37:24
37:27

"Invasion of Grenada" - Operation Urgent Fury - October 1983

tzmofficial 37:28
37:31

(Announcer) The U.S. goes to war against the Caribbean island of Grenada.

tzmofficial 37:34
37:37

Their mission: stop a Cuban-inspired coup

tzmofficial 37:37
37:40

and rescue stranded American students.

tzmofficial 37:40
37:42

We were just hoping that they'd come get us.

tzmofficial 37:43
37:45

But the operation is a logistical nightmare

tzmofficial 37:46
37:48

and troops face a determined enemy.

tzmofficial 37:50
37:52

It's time to die.

tzmofficial 37:55
37:59

Can U.S. forces win in this Cold War confrontation?

tzmofficial 38:25
38:29

(Narrator) The war in Grenada was perhaps the most lopsided conflict

tzmofficial 38:29
38:31

in recorded human history.

tzmofficial 38:31
38:34

A token force of a few hundred troops

tzmofficial 38:34
38:37

was dispersed by what the U.S. military termed:

tzmofficial 38:37
38:39

"Operation Urgent Fury".

tzmofficial 38:40
38:43

Unlike Guatemala, Iran and the Congo,

tzmofficial 38:43
38:47

the resources and labor of the tiny nation were insignificant,

tzmofficial 38:47
38:50

nor did Granada offer any real geostrategic import.

tzmofficial 38:52
38:54

Why then, did they bother?

tzmofficial 38:55
38:58

(U.S. General Haig) What we're watching is a 4 phased operation;

tzmofficial 38:58
39:02

Phase 1 has been completed: the seizure of Nicaragua.

tzmofficial 39:02
39:06

Next is El Salvador, to be followed by Honduras and Guatemala.

tzmofficial 39:06
39:10

It's clear and explicit. - There is a Caribbean domino theory unfolding.

tzmofficial 39:10
39:13

- I wouldn't call it necessarily a domino theory,

tzmofficial 39:13
39:16

I would call it a priority target list.

tzmofficial 39:17
39:19

A hit list, if you will,

tzmofficial 39:19
39:22

for the ultimate takeover of Central America.

tzmofficial 39:24
39:27

(Narrator) The domino theory of communism was used throughout the Cold War

tzmofficial 39:27
39:31

as a justification for American military interventions.

tzmofficial 39:31
39:35

If one country went socialist, others would inevitably follow.

tzmofficial 39:35
39:38

This, in turn, would lead to a worldwide reduction in democracy,

tzmofficial 39:39
39:41

human rights and freedom.

tzmofficial 39:41
39:43

... because that's the way they operate!

tzmofficial 39:43
39:46

And others just parrot the communist lie.

tzmofficial 39:46
39:51

On the other hand, outright gifts are only one way America aids other nations.

tzmofficial 39:51
39:53

As we constantly raise our standard of living,

tzmofficial 39:53
39:55

the spinoffs raise the standard of other countries.

tzmofficial 39:56
39:59

(Narrator) It is probable that many leaders and foot soldiers

tzmofficial 39:59
40:01

accepted the domino theory on its face.

tzmofficial 40:02
40:04

The problem is that statistical data proves

tzmofficial 40:04
40:07

that in the post-World War II era, the United States

tzmofficial 40:07
40:11

was the world's biggest promoter of totalitarian regimes.

tzmofficial 40:11
40:14

A study by Lars Schultz found that U.S. aid

tzmofficial 40:14
40:17

has tended to flow disproportionately to the Western hemisphere's

tzmofficial 40:18
40:22

relatively egregious violators of fundamental human rights.

tzmofficial 40:22
40:26

An additional study by Martha Huggins conducted in the 1990s

tzmofficial 40:26
40:30

suggested that the more foreign police aid given by the U.S.,

tzmofficial 40:31
40:34

the moral brutal and less democratic the police institutions

tzmofficial 40:34
40:36

and their governments become.

tzmofficial 40:36
40:39

This seeming contraction cannot be explained

tzmofficial 40:39
40:41

by the domino theory of the Cold War.

tzmofficial 40:42
40:45

There is, however, a rational explanation.

tzmofficial 40:45
40:49

As Washington moved to overthrow Árbenz' government in Guatemala,

tzmofficial 40:49
40:52

state department officials warned of the new government that

tzmofficial 40:52
40:56

"Its agrarian reform is a powerful propaganda weapon;

tzmofficial 40:57
41:00

its broad social programs of aiding the workers and peasants

tzmofficial 41:00
41:04

in a victorious struggle against the upper classes and large foreign enterprises

tzmofficial 41:05
41:08

has a strong appeal to the populations of Central American neighbors

tzmofficial 41:08
41:10

where similar conditions prevail.

tzmofficial 41:11
41:15

(N. Chomsky) One of the leading themes of the Cold War

tzmofficial 41:15
41:17

has been the domino theory;

tzmofficial 41:18
41:21

what critics call 'the danger of a good example'.

tzmofficial 41:22
41:27

There are two different ways of perceiving what amounts to the same thing.

tzmofficial 41:27
41:30

You could call it 'the mafia doctrine'.

tzmofficial 41:30
41:34

The Godfather doesn't tolerate disobedience.

tzmofficial 41:35
41:38

It's too dangerous if some small storekeeper

tzmofficial 41:39
41:41

doesn't pay protection money.

tzmofficial 41:41
41:44

The Godfather may not care about the money,

tzmofficial 41:44
41:46

but he does care about the refusal.

tzmofficial 41:47
41:51

Then it's necessary to send his goons

tzmofficial 41:51
41:54

to collect the money, but also to make an example.

tzmofficial 41:55
41:57

(Proprietor) ...to my store next Friday, I'll give you the money.

tzmofficial 41:57
42:00

(Gangster) This is Friday Babu, how many times I gotta tell you?

tzmofficial 42:00
42:03

- You keep on calling me Babu, it's 'Singh' motherfucker!

tzmofficial 42:03
42:06

- I'm trying to help you! -You keep on telling me 'I'm your friend'.

tzmofficial 42:06
42:09

You don't even know my fucking name! - You want me to catch a beatin'?

tzmofficial 42:09
42:13

I'm gonna catch a beatin' if I go back again like last week. See this guy?

tzmofficial 42:13
42:16

This guy don't want you to have the money.

tzmofficial 42:16
42:18

Cuz he wants to come back there and squash your head!

tzmofficial 42:18
42:21

That's a guiding principle of world order.

tzmofficial 42:21
42:26

The U.S. has been far and way the dominant power

tzmofficial 42:26
42:29

in the post-Second World War era

tzmofficial 42:30
42:31

over much of the world

tzmofficial 42:32
42:35

and it wants obedience and conformity.

tzmofficial 42:35
42:38

There's a fear which is called the domino theory

tzmofficial 42:38
42:44

that if one domino falls, one small country falls,

tzmofficial 42:44
42:48

it'll topple over the next one, it'll topple over the next one...

tzmofficial 42:48
42:51

Pretty soon, all the dominoes will fall and we'll be in trouble.

tzmofficial 42:51
42:56

For example, if you have successful independent development somewhere,

tzmofficial 42:56
43:01

others suffering the same problems will ask "Why not us?".

tzmofficial 43:01
43:04

That's often pretty explicit in the internal record.

tzmofficial 43:04
43:08

(R. McNamara) The objective was to prevent the dominoes from falling.

tzmofficial 43:08
43:11

The loss of Vietnam would trigger

tzmofficial 43:12
43:14

the loss of South-East Asia.

tzmofficial 43:14
43:18

If this little nation goes down the drain and can't maintain its independence,

tzmofficial 43:19
43:22

ask yourself what's going to happen to the other little nations.

tzmofficial 43:22
43:27

The domino theory is always ridiculed after the dominoes don't fall.

tzmofficial 43:27
43:31

Take, say, Vietnam which was successful from the U.S. point of view.

tzmofficial 43:32
43:37

If a virus is going to spread contagion, what you do is kill the virus

tzmofficial 43:37
43:41

and inoculate the potential targets of the infection.

tzmofficial 43:42
43:45

That's what the U.S. did: it destroyed Vietnam,

tzmofficial 43:45
43:48

never become an independent, successful country

tzmofficial 43:49
43:54

and install vicious dictators in all the surrounding countries.

tzmofficial 43:56
44:01

The actions of the ruler, president Diệm have been declared autocratic

tzmofficial 44:01
44:04

and perhaps his personal actions are to some degree.

tzmofficial 44:04
44:07

But when one realized the chaos he faced,

tzmofficial 44:07
44:10

the complete anarchy that existed there,

tzmofficial 44:10
44:13

it's conceivable that autocratic methods

tzmofficial 44:13
44:16

within a democratic framework were required to restore order.

tzmofficial 44:17
44:21

The most important, of course, was Indonesia. In 1965,

tzmofficial 44:22
44:25

general Suharto carried out a military coup

tzmofficial 44:25
44:29

which wiped out the one mass space political party

tzmofficial 44:29
44:34

(sort of a party of the poor), killed hundreds of thousands of landless peasants

tzmofficial 44:34
44:37

opened the country up to Western exploitation.

tzmofficial 44:38
44:40

There was total euphoria in the United States.

tzmofficial 44:41
44:45

The New York Times' liberal correspondent James Reston

tzmofficial 44:45
44:48

called it "a gleam of light in Asia".

tzmofficial 44:48
44:50

At the time this was happening, they described it

tzmofficial 44:50
44:53

as a staggering mass slaughter but just magnificent.

tzmofficial 44:54
44:58

In fact, in retrospect, McGeorge Bundy,

tzmofficial 44:58
45:02

one of the top planners for Kennedy and Johnson, a national security adviser,

tzmofficial 45:02
45:05

in retrospect, he said he thought that "we probably

tzmofficial 45:05
45:09

should have called off the war in 1965", the Vietnam war

tzmofficial 45:09
45:13

because the region was inoculated, Indonesia was sound.

tzmofficial 45:13
45:19

No more dominoes. Not much point wasting more time wiping out Vietnam.

tzmofficial 45:19
45:21

But there's nothing ridiculous about the theory.

tzmofficial 45:21
45:24

That's why it keeps being resurrected.

tzmofficial 45:24
45:27

The mafia principle is correct.

tzmofficial 45:33
45:36

If you want to maintain order and discipline,

tzmofficial 45:36
45:40

you have to make sure that there's no disobedience

tzmofficial 45:40
45:44

even in the smallest place, and in particular no successful disobedience.

tzmofficial 45:45
45:47

So, yes, it's a dominant theme of world order

tzmofficial 45:47
45:50

in the hands of the United States and in fact

tzmofficial 45:50
45:53

its predecessors in imperial conquest.

tzmofficial 45:54
45:58

The United States must respect

tzmofficial 45:58
46:03

the right of the peoples to develop the economy

tzmofficial 46:03
46:06

the way it declares it or needs it to be.

tzmofficial 46:06
46:09

Chile, 1973

tzmofficial 46:11
46:13

(Narrator) Nowhere was the danger of a good example

tzmofficial 46:13
46:16

more apparent than in Chile.

tzmofficial 46:16
46:19

For most Americans, the date of September 11th

tzmofficial 46:19
46:22

has only one possible connotation.

tzmofficial 46:22
46:27

Yet, for the people of Chile, the date signifies an older, deeper scar.

tzmofficial 46:28
46:30

On September 11th, 1973,

tzmofficial 46:31
46:34

the democratically elected government of Salvador Allende

tzmofficial 46:34
46:37

was overthrown in a violent coup d'état.

tzmofficial 46:37
46:41

It established a military dictatorship ran by Augusto Pinochet

tzmofficial 46:41
46:44

which would last for 17 years

tzmofficial 46:44
46:48

resulting in the torture and murder of thousands of citizens.

tzmofficial 46:49
46:52

At the height of the repression, Chile's soccer stadium

tzmofficial 46:52
46:55

was transformed into a concentration camp.

tzmofficial 46:55
46:58

Among those targeted was a man whose music

tzmofficial 46:58
47:02

now plays on this film's soundtrack: Victor Jara.

tzmofficial 47:03
47:06

(J. Pilger) He was taken to the stadium

tzmofficial 47:06
47:09

where he was a source of strength for his fellow prisoners

tzmofficial 47:10
47:13

singing for them until soldiers beat him to the ground

tzmofficial 47:13
47:16

and smashed his hands.

tzmofficial 47:16
47:20

In his last poem smuggled out of the stadium, he wrote:

tzmofficial 47:21
47:24

"What horror the face of fascism creates.

tzmofficial 47:24
47:29

They carry out their plans with knife-like precision.

tzmofficial 47:29
47:31

For them, blood equals medals.

tzmofficial 47:32
47:35

How hard it is to sing when I must sing of horror

tzmofficial 47:35
47:40

in which silence and screams are the end of my song."

tzmofficial 47:41
47:43

After two days, they killed him.

tzmofficial 47:45
47:50

(Narrator) A report of August 18, 1970 by the State Department explained:

tzmofficial 47:50
47:54

"We identify no vital U.S. national interests within Chile

tzmofficial 47:55
47:59

Nevertheless, for Henry Kissinger and other major policy planners,

tzmofficial 47:59
48:01

Allende represented a virus

tzmofficial 48:01
48:05

that could spread contagion throughout Latin America.

tzmofficial 48:05
48:07

As an example of this virus in action,

tzmofficial 48:07
48:10

one of Allende's first acts was to guarantee school children

tzmofficial 48:10
48:12

a glass of milk every day.

tzmofficial 48:12
48:15

We have no contact with any of the people

tzmofficial 48:15
48:18

that carried out the military coup

tzmofficial 48:18
48:21

and therefore the coup that overthrew Allende

tzmofficial 48:23
48:27

was done without contact with the United States.

tzmofficial 48:27
48:29

(Narrator) Kissinger was lying.

tzmofficial 48:29
48:31

Declassified documents reveal that the coup in Chile

tzmofficial 48:31
48:35

was directed from Washington and that the Allende regime

tzmofficial 48:35
48:38

had been under attack even before its inception.

tzmofficial 48:40
48:43

A CIA cable of October 1970 reads:

tzmofficial 48:44
48:46

"It is firm and continuing policy

tzmofficial 48:47
48:49

that Allende be overthrown by a coup.

tzmofficial 48:51
48:53

Unlike the other governments we have discussed,

tzmofficial 48:53
48:57

Salvador Allende's regime was explicitly socialist.

tzmofficial 48:57
49:00

Yet it had also been democratically elected.

tzmofficial 49:00
49:05

In short, his regime challenged the entire ideological basis of the Cold War.

tzmofficial 49:17
49:20

Rather than be taken alive, Allende committed suicide

tzmofficial 49:20
49:24

in the Moneda palace, as fascist troops were closing in.

tzmofficial 49:25
49:28

Workers of my homeland,

tzmofficial 49:28
49:31

I have faith in Chile and its destiny.

tzmofficial 49:32
49:35

Go forward, knowing

tzmofficial 49:35
49:38

that sooner rather than later,

tzmofficial 49:39
49:43

avenues will be open anew, along which free men will walk

tzmofficial 49:44
49:47

to build a better society.

tzmofficial 49:47
49:52

Long live Chile, the people and the workers!

tzmofficial 50:11
50:15

(Narrator) In stark contrast to what Allende had in mind

tzmofficial 50:15
50:17

as a corrective to Chile's economic woes,

tzmofficial 50:18
50:21

Pinochet would embrace a radical program of free market form,

tzmofficial 50:21
50:25

as theorized by Milton Friedman and 'the Chicago boys'.

tzmofficial 50:26
50:29

Friedman described himself as a libertarian with a small 'l'.

tzmofficial 50:30
50:32

Presenting his philosophy as a more moderate variant

tzmofficial 50:33
50:36

of the Austrian school of free market capitalism,

tzmofficial 50:36
50:40

he shared with them a vision in which virtually everything is owned.

tzmofficial 50:40
50:44

The programs entailed deregulation, wage reduction,

tzmofficial 50:44
50:47

attacks against unions,

tzmofficial 50:47
50:49

elimination of social spending,

tzmofficial 50:49
50:54

and a fire sale of natural resources to transnational corporations.

tzmofficial 50:55
50:59

The Western press described the events in Chile as an economic miracle.

tzmofficial 51:00
51:03

(M. Esparza) Economic policies that were implemented in Chile

tzmofficial 51:03
51:07

as a result of the military regime are intertwined.

tzmofficial 51:07
51:11

One cannot analyze the violence without considering

tzmofficial 51:11
51:14

the way in which these economic policies

tzmofficial 51:15
51:17

ought to be implemented.

tzmofficial 51:17
51:20

Today, Chile stands

tzmofficial 51:20
51:24

as one of the most unequal countries in the whole region.

tzmofficial 51:25
51:28

The polarization between the haves and the have-nots

tzmofficial 51:28
51:33

have increased dramatically in the last 20 years;

tzmofficial 51:33
51:37

again, as a result of these neo-liberal policies or globalized policies

tzmofficial 51:38
51:42

that were implemented during the Pinochet regime,

tzmofficial 51:42
51:44

which meant the privatization

tzmofficial 51:44
51:48

of pension plans, for example, for people who retire.

tzmofficial 51:48
51:51

The privatization of universities,

tzmofficial 51:51
51:56

schools, the educational system, health, etc.

tzmofficial 51:56
52:00

An economic miracle for whom?

tzmofficial 52:01
52:03

That's always the question that I raise

tzmofficial 52:03
52:07

when they talk about economic miracle: who has benefited

tzmofficial 52:07
52:10

from this economic miracle? I think that's the key question.

tzmofficial 52:10
52:13

Thank you all very much.

tzmofficial 52:13
52:15

It's an honor for me to be here

tzmofficial 52:16
52:19

to pay tribute to a hero of freedom:

tzmofficial 52:20
52:22

Milton Friedman.

tzmofficial 52:23
52:25

He has used a brilliant mind

tzmofficial 52:26
52:28

to advance a moral vision.

tzmofficial 52:28
52:32

We have seen Milton Friedman's ideas at work in Chile

tzmofficial 52:33
52:36

where a group of economists called 'the Chicago boys'

tzmofficial 52:36
52:41

brought inflation under control and laid the ground work for economic success.

tzmofficial 52:42
52:45

(N. Klein) The thesis of the shock doctrine

tzmofficial 52:46
52:50

is that we've been sold a fairy tale about how these radical policies

tzmofficial 52:50
52:52

have swept the globe.

tzmofficial 52:52
52:55

That they haven't swept the globe on the backs of freedom and democracy

tzmofficial 52:55
53:00

but they have needed shocks, crisis and states of emergencies.

tzmofficial 53:01
53:04

Milton Friedman understood the utility of crisis.

tzmofficial 53:05
53:09

Only a crisis, actual of perceived, produces real change.

tzmofficial 53:09
53:12

When that crisis occurs, the actions that are taken

tzmofficial 53:12
53:15

depend on the ideas that are lying around.

tzmofficial 53:15
53:18

Milton Friedman was the leading monetarist.

tzmofficial 53:18
53:22

He was a professor of economics at the University of Chicago

tzmofficial 53:23
53:25

who believed that value came from money

tzmofficial 53:25
53:29

in contrast to those who believe that value comes from human beings,

tzmofficial 53:30
53:33

that human beings and human laborers are the source of all value.

tzmofficial 53:33
53:36

Milton Friedman believed it was money and gold.

tzmofficial 53:36
53:39

Therefore, by changing monetary rates

tzmofficial 53:40
53:44

and fiscal policy, he was able to organize an economy.

tzmofficial 53:44
53:49

He was a free marketeer, a laissez-faire capitalist,

tzmofficial 53:49
53:51

a laissez-faire theorist.

tzmofficial 53:51
53:53

That's part of his monetarism.

tzmofficial 53:53
53:56

Laissez-faire means let the market decide.

tzmofficial 53:56
54:00

Devil take the hindmost. Get as much as you can and run.

tzmofficial 54:01
54:07

This negates consumption, health and meeting human needs

tzmofficial 54:07
54:09

while a few profit.

tzmofficial 54:09
54:12

This is the theory of Milton Friedman.

tzmofficial 54:14
54:18

My feeling is that there are two kinds of market fundamentalism.

tzmofficial 54:18
54:21

When I use the term, is use it to mean

tzmofficial 54:24
54:27

a deep faith in the power of the market,

tzmofficial 54:27
54:31

and the market to solve economic problems,

tzmofficial 54:31
54:34

and even other kinds of social and political problems.

tzmofficial 54:34
54:37

I regard it as very naive in that sense.

tzmofficial 54:38
54:42

It's almost a kind of religious faith: the market will solve it.

tzmofficial 54:42
54:43

It's OK,

tzmofficial 54:44
54:46

the market will solve it.

tzmofficial 54:47
54:49

But they also sometimes think it's benevolent;

tzmofficial 54:49
54:52

that the market will no only solve this, but that it will somehow

tzmofficial 54:52
54:55

solve it in a way that benefits humanity.

tzmofficial 54:55
54:58

To me, of course, it's completely unjustified.

tzmofficial 54:58
55:01

The market doesn't give a damn how many people die.

tzmofficial 55:01
55:05

The market may solve peak oil by killing 3 billion people.

tzmofficial 55:06
55:08

There's nothing here to be worshiping.

tzmofficial 55:08
55:12

It's type 1 market fundamentalism.

tzmofficial 55:12
55:17

Type 2 have some kind of affection for the market

tzmofficial 55:17
55:20

because they feel that it has,

tzmofficial 55:20
55:24

for example, helped them into their positions of wealth and power.

tzmofficial 55:24
55:27

The other way to look at it, which is what I usually say,

tzmofficial 55:27
55:29

is that they're not market fundamentalists at all.

tzmofficial 55:30
55:32

They're bullet fundamentalists.

tzmofficial 55:32
55:34

They believe in force.

tzmofficial 55:36
55:40

The market will just be one among many things they will use.

tzmofficial 55:41
55:43

The reason I'm bringing that up is because I think

tzmofficial 55:43
55:47

they're equally cynical; I think they're equally cynical about market.

tzmofficial 55:48
55:52

I don't think they really have any particular affection or romanticism

tzmofficial 55:52
55:55

for the market anymore than they do for God, or something,

tzmofficial 55:57
56:00

that the stupid people

tzmofficial 56:01
56:03

can believe in all these things,

tzmofficial 56:03
56:07

whether it be traditional religions or the market

tzmofficial 56:07
56:11

and then our job is not to accept any of those naive beliefs

tzmofficial 56:11
56:14

but to manage society

tzmofficial 56:15
56:18

for our own benefit and possibly the benefit of others.

tzmofficial 56:18
56:22

I really don't know how often they think of themselves as altruistic.

tzmofficial 56:23
56:27

In other words, I'm not convinced

tzmofficial 56:27
56:29

that the kinds of elites we see in the U.S. at the moment

tzmofficial 56:30
56:34

really are market fundamentalists in a very deep sense.

tzmofficial 56:34
56:39

I do think violence and force are more their thing

tzmofficial 56:39
56:41

and that they're quite interventionist

tzmofficial 56:42
56:44

and that they're bullet fundamentalists.

tzmofficial 57:04
57:07

(Narrator) Reaching the homeland during the late '70s and beyond

tzmofficial 57:07
57:11

and culminating in the worldwide financial crisis,

tzmofficial 57:11
57:14

the process of globalization would demand free market reforms

tzmofficial 57:14
57:17

of virtually every country in the world.

tzmofficial 57:17
57:19

Not only did they fail to raise living standards,

tzmofficial 57:19
57:22

they resulted in greatly increased misery for the vast majority

tzmofficial 57:22
57:25

of the world's people.

tzmofficial 57:26
57:30

The escalation of deprivation indicators in Brazil and Mexico,

tzmofficial 57:30
57:32

which together account for over half of Latin America's

tzmofficial 57:33
57:37

465 million inhabitants, reveal the miracle at work.

tzmofficial 57:39
57:42

Between 1985 and 1990,

tzmofficial 57:42
57:44

the rate of child malnutrition in Brazil

tzmofficial 57:44
57:49

increased from 12.7% to 30.7% of all children.

tzmofficial 57:50
57:53

In Mexico, the purchasing power, the minimum wage

tzmofficial 57:53
57:57

dropped 66% between 1982 and 1991.

tzmofficial 57:58
58:02

In Argentina, unemployment rose steadily in the '80s and '90s

tzmofficial 58:03
58:08

from 3% in 1980 to 20% in 2001

tzmofficial 58:08
58:12

while the number of people in extreme poverty rose from 200,000

tzmofficial 58:12
58:14

to 5 million.

tzmofficial 58:15
58:19

The economic miracle in Argentina culminated in this.

tzmofficial 58:32
58:35

Fascism should more appropriately be called corporatism

tzmofficial 58:35
58:40

because it is the merger of state and corporate power. - Benito Mussolini

tzmofficial 58:43
58:47

Grand Area Strategy was developed

tzmofficial 58:48
58:51

really, during the Second World War.

tzmofficial 58:51
58:54

It continued to develop afterwards

tzmofficial 58:54
58:59

in the early stages of the Cold War: this is grand world order planning.

tzmofficial 58:59
59:03

Most of the evidence that we have for this and the direction it took

tzmofficial 59:03
59:08

came out of the Council on Foreign Relations working group

tzmofficial 59:08
59:10

that was setup in the 1940s with the State Department,

tzmofficial 59:11
59:13

called the war and peace studies project.

tzmofficial 59:14
59:17

Most of this material is now declassified and available.

tzmofficial 59:17
59:20

The documents that have come out really reveal

tzmofficial 59:20
59:23

an openly imperial mindset.

tzmofficial 59:24
59:27

The language spoke openly about establishing a Pax Americana.

tzmofficial 59:28
59:33

It talked about the necessity of transitioning away from

tzmofficial 59:33
59:38

British imperial rule to a new form of American global domination,

tzmofficial 59:38
59:42

yet openly talked about limiting the sovereignty

tzmofficial 59:42
59:46

of different countries, depending on their amenability

tzmofficial 59:46
59:48

to the principles of this new

tzmofficial 59:49
59:52

global economic and political order that the U.S. and Britain envisaged.

tzmofficial 59:52
59:56

It spoke about the need to establish international institutions

tzmofficial 59:56
59:58

such as the World Bank, the IMF and the UN

tzmofficial 59:59
1:00:02

as mechanisms to regulate this world order,

tzmofficial 1:00:02
1:00:06

but quite openly spoke about doing this in the interests

tzmofficial 1:00:06
1:00:08

of the advanced industrial countries

tzmofficial 1:00:08
1:00:10

such as Britain, the U.S and Western Europe.

tzmofficial 1:00:10
1:00:13

On the one hand, even though there was this sense of benevolence,

tzmofficial 1:00:13
1:00:16

there was the idea that if we don't set up these institutions,

tzmofficial 1:00:16
1:00:20

there would be international instability and the danger of nazism,

tzmofficial 1:00:20
1:00:24

there was also the candid admission that it would protect

tzmofficial 1:00:25
1:00:29

the economic interests of a specific group of states,

tzmofficial 1:00:30
1:00:32

the interests of the colonies themselves,

tzmofficial 1:00:32
1:00:35

and these countries in the less-developed world

tzmofficial 1:00:35
1:00:37

that were trying to breaking out at that time

tzmofficial 1:00:37
1:00:39

struggling for national independence,

tzmofficial 1:00:39
1:00:42

but their interests were really not in the equation.

tzmofficial 1:00:43
1:00:47

They were even references to the need to use propaganda to legitimize

tzmofficial 1:00:47
1:00:51

this whole new structure to domestic publics.

tzmofficial 1:00:51
1:00:56

I think you can learn a lot from these documents and it's pretty clear

tzmofficial 1:00:57
1:01:01

that the principles that they outlined, even though they certainly evolved,

tzmofficial 1:01:03
1:01:07

but a lot of the basic principles have remained continuous

tzmofficial 1:01:07
1:01:11

throughout different stages in the post war periods.

tzmofficial 1:01:13
1:01:17

Within the Middle East region, that had a specific implication

tzmofficial 1:01:17
1:01:22

which was control of Middle Eastern resources.

tzmofficial 1:01:23
1:01:26

Grand area strategy spoke specifically about controlling

tzmofficial 1:01:26
1:01:31

specific parts of the world, to ensure U.S. preeminence:

tzmofficial 1:01:31
1:01:34

parts of Asia, parts of Africa, parts of the Middle East.

tzmofficial 1:01:34
1:01:37

It spoke about the need to control these regions

tzmofficial 1:01:37
1:01:40

especially due to their populations and their resources

tzmofficial 1:01:40
1:01:43

and their geographic locations.

tzmofficial 1:01:44
1:01:47

We have all bound ourselves

tzmofficial 1:01:47
1:01:52

to walk together to make sure

tzmofficial 1:01:52
1:01:56

that there is increasing happiness and prosperity

tzmofficial 1:01:56
1:02:00

for the broad masses of the people in every land,

tzmofficial 1:02:01
1:02:07

no longer subject to the hard strains of war.

tzmofficial 1:02:07
1:02:10

A few months later... (8 March 1946)

tzmofficial 1:02:10
1:02:14

An iron curtain has descended across the continent.

tzmofficial 1:02:14
1:02:18

Behind that line lie all the capitals

tzmofficial 1:02:18
1:02:22

of the ancient states of central and Eastern Europe.

tzmofficial 1:02:24
1:02:27

(Announcer) In the background was the growing struggle

tzmofficial 1:02:27
1:02:30

between two great powers to shape the post-war world.

tzmofficial 1:02:30
1:02:35

Already an iron curtain had dropped around Poland, Hungary

tzmofficial 1:02:35
1:02:37

Yugoslavia, Bulgaria.

tzmofficial 1:02:38
1:02:41

What about Soviet imperialism after the Second World War?

tzmofficial 1:02:41
1:02:44

That was real, but it was narrow.

tzmofficial 1:02:44
1:02:47

If you take a look at interventions after the Second World War,

tzmofficial 1:02:47
1:02:51

the Soviet Union did intervene in East-Berlin,

tzmofficial 1:02:51
1:02:55

in Hungary, in Czechoslovakia, Poland...

tzmofficial 1:02:56
1:03:00

Within Eastern Europe, that was their domain.

tzmofficial 1:03:00
1:03:05

They wanted to be left alone to run their own dungeon and their own domain.

tzmofficial 1:03:05
1:03:08

For the U.S., it was the rest of the world,

tzmofficial 1:03:08
1:03:11

if you take a look at U.S. interventions: all over the place.

tzmofficial 1:03:11
1:03:14

The idea is: "OK, we run the world,

tzmofficial 1:03:14
1:03:18

and there's a tacit compact; we'll kind of shout at each other..."

tzmofficial 1:03:18
1:03:22

Stay out of this hemisphere, and don't try to

tzmofficial 1:03:22
1:03:24

start your plans and your conspiracies over here.

tzmofficial 1:03:25
1:03:30

"...but each of us will discipline our own domains."

tzmofficial 1:03:30
1:03:32

For Russia: Eastern Europe,

tzmofficial 1:03:32
1:03:34

for the U.S.: the world.

tzmofficial 1:03:35
1:03:37

Take a look at the history of the Cold War: that's what it was;

tzmofficial 1:03:38
1:03:41

it was wars against independent countries

tzmofficial 1:03:41
1:03:43

by the superpowers

tzmofficial 1:03:43
1:03:46

almost all: the U.S, because our domain is the world.

tzmofficial 1:03:47
1:03:49

(Narrator) One of the most revealing passages in Churchill's memoirs

tzmofficial 1:03:50
1:03:52

describes an exchange between himself and Stalin,

tzmofficial 1:03:52
1:03:56

when the two warlords carved up the political boundaries of Europe,

tzmofficial 1:03:56
1:04:00

not on official policy documents, but a half sheet of paper.

tzmofficial 1:04:00
1:04:03

"The moment was apt for business", Churchill wrote.

tzmofficial 1:04:04
1:04:06

"So I said to Stalin:

tzmofficial 1:04:06
1:04:08

'Let us settle about our affairs in the Balkans.

tzmofficial 1:04:09
1:04:11

Your armies are in Romania and Bulgaria.

tzmofficial 1:04:11
1:04:15

How would it do for you to have 90% predominance in Romania

tzmofficial 1:04:15
1:04:18

for us to have 90% of the say in Greece

tzmofficial 1:04:18
1:04:21

and go 50/50 about Yugoslavia?"

tzmofficial 1:04:21
1:04:24

Stalin agreed and kept his word.

tzmofficial 1:04:24
1:04:27

(Reporter) Birmingham, where in the shadow of the Queen Victoria's statue

tzmofficial 1:04:27
1:04:30

and beneath the red flag, a vast crowd

tzmofficial 1:04:30
1:04:32

listens to a fighting speech by Lord Beaverbrook

tzmofficial 1:04:33
1:04:35

And we believe in Stalin's leadership.

tzmofficial 1:04:35
1:04:38

[Applause]

tzmofficial 1:04:51
1:04:55

(Narrator) Following World War II, the United States began funneling

tzmofficial 1:04:55
1:04:57

huge sums of money to its European allies

tzmofficial 1:04:58
1:05:01

in what became know as the Marshall plan.

tzmofficial 1:05:02
1:05:04

The purpose was twofold:

tzmofficial 1:05:04
1:05:08

to help European nations rebuild their shattered economies

tzmofficial 1:05:08
1:05:12

and to dissuade their populations from embracing communism,

tzmofficial 1:05:12
1:05:16

socialism or any path independent of the United States.

tzmofficial 1:05:17
1:05:19

The aid provided essential relief

tzmofficial 1:05:19
1:05:22

for the war-ravaged countries of Europe.

tzmofficial 1:05:23
1:05:27

Yet, in the years between 1952 and 1962,

tzmofficial 1:05:27
1:05:31

of the 50 billion dollars given to 90 separate countries by the United States,

tzmofficial 1:05:32
1:05:36

only 5 billion dollars was for nonmilitary economic support.

tzmofficial 1:05:37
1:05:41

It was a desirable step to persuade the world,

tzmofficial 1:05:41
1:05:44

that we really were being altruistic here,

tzmofficial 1:05:44
1:05:47

this was not basically an anti-communist,

tzmofficial 1:05:48
1:05:50

anti-soviet measure.

tzmofficial 1:05:50
1:05:53

(Narrator) The first major test in establishing America's commitment

tzmofficial 1:05:53
1:05:57

to real democracy would come from Greece.

tzmofficial 1:05:58
1:06:02

During the war, the left-wing National Liberation Front

tzmofficial 1:06:02
1:06:05

had provided the majority of resistance to the nazis.

tzmofficial 1:06:07
1:06:10

It also set up interim governments across the nation.

tzmofficial 1:06:11
1:06:14

Though its military leadership was communist,

tzmofficial 1:06:14
1:06:18

the partisan governments bore no resemblance to stalinist Russia.

tzmofficial 1:06:19
1:06:23

They were decentralized and participatory.

tzmofficial 1:06:26
1:06:30

In April, it set up a provisional government in the mountains.

tzmofficial 1:06:31
1:06:35

Elections were held, and women were given the vote for the first time.

tzmofficial 1:06:39
1:06:43

I remember that the government made beautiful things happen.

tzmofficial 1:06:43
1:06:46

We were raised with high level.

tzmofficial 1:06:51
1:06:54

The other governments had neglected their peasants.

tzmofficial 1:06:55
1:06:58

Beautiful things happened, live voting.

tzmofficial 1:06:58
1:07:01

I voted and we helped in the local government

tzmofficial 1:07:01
1:07:04

in any way we could.

tzmofficial 1:07:12
1:07:16

The solidarity and understanding that were generated up here in the mountains

tzmofficial 1:07:17
1:07:20

and the enthusiasm for self-government

tzmofficial 1:07:20
1:07:24

made people so much more aware and sophisticated

tzmofficial 1:07:24
1:07:28

that hose of us who came up from Athens just couldn't believe it.

tzmofficial 1:07:32
1:07:36

In general, the people were very pleased with this people's government,

tzmofficial 1:07:37
1:07:40

where general assemblies every month and every villager

tzmofficial 1:07:40
1:07:44

could air his grievances and criticize the chairman or councilor

tzmofficial 1:07:44
1:07:46

when he didn't do his duty.

tzmofficial 1:07:46
1:07:48

We made decisions for the whole village.

tzmofficial 1:07:49
1:07:52

Whatever happened in the village, everybody had to know about it.

tzmofficial 1:07:53
1:07:55

That was how self-government worked.

tzmofficial 1:08:01
1:08:04

When we started to govern ourselves, we got encouraged

tzmofficial 1:08:04
1:08:07

and people woke up, so to speak.

tzmofficial 1:08:07
1:08:12

We became more active and took up more responsibility for ourselves.

tzmofficial 1:08:15
1:08:20

We wanted this government to agree to the separation of Church and State

tzmofficial 1:08:20
1:08:23

and that priests should complete secondary school

tzmofficial 1:08:23
1:08:25

and have theological degrees.

tzmofficial 1:08:25
1:08:29

In the meantime, we joined the resistance and the churches contributed,

tzmofficial 1:08:30
1:08:33

however they could.

tzmofficial 1:08:35
1:08:38

(Narrator) Winston Churchill described the situation as anarchy

tzmofficial 1:08:38
1:08:41

and demanded a return of King George II.

tzmofficial 1:08:42
1:08:45

When the people of Greece rejected the return of the monarchy,

tzmofficial 1:08:45
1:08:47

the British army attacked.

tzmofficial 1:08:52
1:08:55

(Reporter) EAM's goal was to make Greece independent:

tzmofficial 1:08:55
1:08:57

free from all ties.

tzmofficial 1:09:02
1:09:06

We knew from the start that the British wanted to keep Greece

tzmofficial 1:09:06
1:09:09

within their stream of influence in the Mediterranean

tzmofficial 1:09:09
1:09:11

for their own political ends.

tzmofficial 1:09:12
1:09:16

EAM was opposed to this and so the British were against us from the start.

tzmofficial 1:09:23
1:09:27

The British and the Greek governments, along with the royalist troops,

tzmofficial 1:09:27
1:09:31

wanted to restore the old order in Greece.

tzmofficial 1:09:40
1:09:43

They wanted the king back on his throne

tzmofficial 1:09:43
1:09:46

because he was the best guarantee of British interests in Greece:

tzmofficial 1:09:46
1:09:49

political, economic and strategic.

tzmofficial 1:09:54
1:09:57

People hated the dictatorship of Metaxás and the king.

tzmofficial 1:09:57
1:10:00

Together, they oppressed the Greek people.

tzmofficial 1:10:00
1:10:04

We didn't want in any way to go back to the same tyrannical regime

tzmofficial 1:10:04
1:10:07

which was supported from abroad after the liberation.

tzmofficial 1:10:07
1:10:10

That regime was hated by all Greeks.

tzmofficial 1:10:54
1:10:57

(Narrator) A network of concentration camps

tzmofficial 1:10:57
1:10:59

were set up across the Greek Islands,

tzmofficial 1:10:59
1:11:02

while right-wing death squads terrorized villages.

tzmofficial 1:11:04
1:11:07

A favorite technique was beheading.

tzmofficial 1:11:10
1:11:13

President Truman responded by giving hundreds of millions of dollars

tzmofficial 1:11:13
1:11:15

in military aid to the very men the allies

tzmofficial 1:11:15
1:11:18

had been fighting just months before.

tzmofficial 1:11:19
1:11:22

The free peoples of the world look through us for support

tzmofficial 1:11:22
1:11:25

in maintaining their freedoms.

tzmofficial 1:11:25
1:11:30

If we falter in our leadership, we may endanger the peace of the world

tzmofficial 1:11:31
1:11:34

and we shall surely endanger the welfare of this nation.

tzmofficial 1:11:34
1:11:37

I therefore ask the Congress

tzmofficial 1:11:37
1:11:40

to provide authority for assistance to Greece and Turkey

tzmofficial 1:11:40
1:11:43

in the amount of $400 million

tzmofficial 1:11:43
1:11:47

for the period ending June 30th, 1948.

tzmofficial 1:11:54
1:11:58

(Narrator) In 1947, 74,000 tons of military equipment

tzmofficial 1:11:58
1:12:00

were sent to Greece.

tzmofficial 1:12:05
1:12:08

Among the supplies were hundreds of mules.

tzmofficial 1:12:14
1:12:17

Less amusing were the massive stocks of napalm.

tzmofficial 1:12:21
1:12:23

During the Greek Civil War, Churchill praised Stalin

tzmofficial 1:12:23
1:12:27

for "adhering strictly and faithfully for our agreement of October...

tzmofficial 1:12:27
1:12:31

During all the long weeks of fighting the communists in the streets of Athens,

tzmofficial 1:12:32
1:12:36

not one word of reproach came from Pravda or Izvestia."

tzmofficial 1:12:37
1:12:39

There were many fears.

tzmofficial 1:12:39
1:12:42

The primary fears were the usual ones.

tzmofficial 1:12:43
1:12:46

The British invaded Greece in 1944

tzmofficial 1:12:46
1:12:48

and tried to restore it

tzmofficial 1:12:48
1:12:52

to the British Imperial system, resenting that the U.S. was taking it over.

tzmofficial 1:12:53
1:12:56

In Greece, there was a strong nazi resistance.

tzmofficial 1:12:56
1:13:00

It pretty much liberated the country from the nazis.

tzmofficial 1:13:00
1:13:04

It was what's called communist, it was peasant and worker-based.

tzmofficial 1:13:04
1:13:09

All over Europe, in the wake of the war, there was a radical

tzmofficial 1:13:09
1:13:13

democracy, often called communist or socialist or something like that.

tzmofficial 1:13:14
1:13:18

The U.S. didn't want that. It wanted to restore the traditional order.

tzmofficial 1:13:18
1:13:23

So in Greece, after the British could no longer control the resistance,

tzmofficial 1:13:23
1:13:26

they pulled out, the United States moved in.

tzmofficial 1:13:26
1:13:30

That's when the Truman doctrine was announced

tzmofficial 1:13:30
1:13:33

in lofty rhetoric about defending democracy,

tzmofficial 1:13:33
1:13:38

but in fact it was to crush the anti-nazi resistance

tzmofficial 1:13:38
1:13:41

(the peasant/worker-based anti-nazi resistance)

tzmofficial 1:13:41
1:13:45

and to restore the traditional order

tzmofficial 1:13:46
1:13:50

with many fascist collaborators, etc., they didn't care about that.

tzmofficial 1:13:50
1:13:55

That which is exactly what happened; it killed maybe 150,000 Greeks;

tzmofficial 1:13:56
1:13:59

it set Greece on the path it followed.

tzmofficial 1:14:00
1:14:04

Later, it turned out that it wasn't enough, so the U.S. supported openly

tzmofficial 1:14:04
1:14:07

the first direct revival of fascism in Europe,

tzmofficial 1:14:07
1:14:11

not hidden, the fascist generals

tzmofficial 1:14:11
1:14:15

were supported by the United States when they took over in the '60s.

tzmofficial 1:14:15
1:14:19

That led us into 1974, I think, when there was an uprising

tzmofficial 1:14:19
1:14:22

which threw them out. OK, that's Greece.

tzmofficial 1:14:23
1:14:24

Italy.

tzmofficial 1:14:24
1:14:28

Italy has been the target of more CIA action

tzmofficial 1:14:28
1:14:32

than anywhere else in the world as far as the record shows

tzmofficial 1:14:32
1:14:36

up until at least the 1970s. At that point, the record runs awry.

tzmofficial 1:14:36
1:14:39

In Italy, there was a very powerful lift.

tzmofficial 1:14:40
1:14:44

If there had been free elections, the left would have won.

tzmofficial 1:14:45
1:14:47

The U.S. were very much frightened of that.

tzmofficial 1:14:48
1:14:50

In fact, go back a little bit.

tzmofficial 1:14:50
1:14:52

Italy was the first place

tzmofficial 1:14:52
1:14:55

where U.S. and British troops landed on the continent.

tzmofficial 1:14:55
1:15:00

1943. They landed in Sicily and then started moving up the peninsula

tzmofficial 1:15:00
1:15:04

They had a problem. The nazis were being driven

tzmofficial 1:15:04
1:15:08

from Italy as in Greece by the popular resistance.

tzmofficial 1:15:08
1:15:11

As the U.S. and British forces came in,

tzmofficial 1:15:12
1:15:15

they had to crush the resistance and reinstate the fascists,

tzmofficial 1:15:16
1:15:18

which is exactly what they did.

tzmofficial 1:15:18
1:15:22

The Field Martial Badoglio, a very fascist hero

tzmofficial 1:15:23
1:15:26

conqueror of Abyssinia, was installed

tzmofficial 1:15:27
1:15:31

as Prime Minister when the pro-fascist king was brought back

tzmofficial 1:15:31
1:15:35

especially as the troops went to the North.

tzmofficial 1:15:35
1:15:37

The North had already been liberated by the resistance,

tzmofficial 1:15:38
1:15:40

the nazis had been pretty much driven out.

tzmofficial 1:15:40
1:15:44

They had established a functioning society

tzmofficial 1:15:44
1:15:49

with worker-owned factories, driving out managers, etc.

tzmofficial 1:15:49
1:15:51

The United States was horrified

tzmofficial 1:15:52
1:15:54

and the British (remember, it was the labour party then),

tzmofficial 1:15:54
1:15:56

they were even more horrified.

tzmofficial 1:15:56
1:16:00

The idea of driving managers out of factories and running it yourself...

tzmofficial 1:16:00
1:16:02

It was utter anathema.

tzmofficial 1:16:04
1:16:08

The liberated society of Northern Italy had to be crushed

tzmofficial 1:16:08
1:16:11

and the traditional forces reinstituted

tzmofficial 1:16:11
1:16:14

including, of course, leading fascists.

tzmofficial 1:16:14
1:16:18

In fact, this was done all through Europe, but the most important places

tzmofficial 1:16:18
1:16:21

were Italy and Greece because they had advanced farther then.

tzmofficial 1:16:22
1:16:25

Italy and Greece were both understood to be

tzmofficial 1:16:25
1:16:28

part of the system of controlling Middle East oil.

tzmofficial 1:16:28
1:16:31

The transit lines went through the Mediterranean.

tzmofficial 1:16:31
1:16:35

That's all one big system of which this is one component

tzmofficial 1:16:36
1:16:38

and the U.S. was not going to sacrifice that.

tzmofficial 1:16:38
1:16:43

The control of Middle Eastern oil was regarded as an absolutely central part of

tzmofficial 1:16:43
1:16:46

post-war global planning and, of course, control over Europe.

tzmofficial 1:16:46
1:16:51

There were other aspects too. The formation of NATO, for example,

tzmofficial 1:16:52
1:16:56

was theoretically motivated by concern that Russia would invade

tzmofficial 1:16:56
1:17:00

maybe it was, maybe it wasn't, but it was also

tzmofficial 1:17:01
1:17:05

driven by the concern that Europe might move in an independent path.

tzmofficial 1:17:06
1:17:09

Europe is a big place. It has an economy of the scale of the United States',

tzmofficial 1:17:10
1:17:13

more advanced than the United States in many respects.

tzmofficial 1:17:13
1:17:16

It had been crushed by the war, but it was going to re-industrialize,

tzmofficial 1:17:16
1:17:18

and it did, over the next couple of decades

tzmofficial 1:17:18
1:17:21

and became a flourishing economy.

tzmofficial 1:17:21
1:17:24

There's always a concern that it might strike out on its own.

tzmofficial 1:17:25
1:17:27

It might become what was called a third force,

tzmofficial 1:17:27
1:17:29

independent of the U.S. and Russia.

tzmofficial 1:17:29
1:17:32

It may be along Gaullist lines.

tzmofficial 1:17:32
1:17:37

De Gaulle had this plan of a Europe from the Atlantic to the Urals

tzmofficial 1:17:37
1:17:40

as a separate force in world affairs;

tzmofficial 1:17:40
1:17:43

it's an anathema to U.S. planners.

tzmofficial 1:17:46
1:17:49

(Narrator) The embrace of fascist leaders by the West

tzmofficial 1:17:49
1:17:53

is often explained as a product of Cold War necessity.

tzmofficial 1:17:53
1:17:55

Yet, the reality is more complex.

tzmofficial 1:17:56
1:17:58

From the very beginning of the fascist movement,

tzmofficial 1:17:58
1:18:01

many Western business leaders not only praised fascists

tzmofficial 1:18:01
1:18:05

but offered significant financial, intellectual and moral support.

tzmofficial 1:18:08
1:18:12

The case of Spain provides one of the most striking examples.

tzmofficial 1:18:12
1:18:15

When peasants and workers took control of production,

tzmofficial 1:18:15
1:18:18

consumption and social life across much of the country,

tzmofficial 1:18:19
1:18:21

world leaders united in opposition against them.

tzmofficial 1:18:22
1:18:26

Their system of self-government threatened not only the fascists

tzmofficial 1:18:26
1:18:29

and stalinists, but liberal democracies in America

tzmofficial 1:18:29
1:18:31

and the rest of the world.

tzmofficial 1:19:03
1:19:06

(Narrator) The rebels called themselves anarchists.

tzmofficial 1:19:08
1:19:11

(N. Chomsky) In the media and general commentary

tzmofficial 1:19:12
1:19:16

the term anarchy is used to indicate

tzmofficial 1:19:16
1:19:21

chaos, bomb throwing, disruption, criminality...

tzmofficial 1:19:23
1:19:25

The actual meaning of the term is quite different:

tzmofficial 1:19:26
1:19:29

it involves mutual aid, cooperation;

tzmofficial 1:19:29
1:19:31

it's as close as you can get to pure democracy,

tzmofficial 1:19:31
1:19:35

real popular control over all institutions.

tzmofficial 1:19:35
1:19:38

Sometimes resistance is usually leaderless resistance.

tzmofficial 1:19:38
1:19:41

That's partly ignorance

tzmofficial 1:19:42
1:19:45

and partly a way to undermine

tzmofficial 1:19:46
1:19:48

efforts to try to achieve

tzmofficial 1:19:48
1:19:51

a cooperative society

tzmofficial 1:19:52
1:19:54

with popular control which of course is

tzmofficial 1:19:54
1:19:57

obviously very much opposed by elite interests.

tzmofficial 1:19:58
1:20:01

When it came to getting anything from the store,

tzmofficial 1:20:01
1:20:04

then, naturally, one had to have

tzmofficial 1:20:05
1:20:09

that particular capacity and that way of thinking.

tzmofficial 1:20:10
1:20:14

Why would you take 2 kilograms of meat today

tzmofficial 1:20:14
1:20:16

if 1 kilogram is enough for you,

tzmofficial 1:20:16
1:20:19

and tomorrow you can go and get more?

tzmofficial 1:20:19
1:20:22

Or a suit, or a pair of shoes?

tzmofficial 1:20:22
1:20:25

Light, water, school,

tzmofficial 1:20:25
1:20:27

everything was free.

tzmofficial 1:20:27
1:20:30

There was no selfishness.

tzmofficial 1:20:31
1:20:33

It didn't exist. How could it?

tzmofficial 1:20:33
1:20:36

When there's no money, there's no selfishness.

tzmofficial 1:20:37
1:20:39

When you say it today, people don't understand.

tzmofficial 1:20:39
1:20:42

But everyone adapted very well.

tzmofficial 1:20:42
1:20:45

When the collective was formed,

tzmofficial 1:20:45
1:20:47

when it was created,

tzmofficial 1:20:47
1:20:51

the vast majority of the people accepted it easily

tzmofficial 1:20:51
1:20:55

and there were no union people or anarchists at all.

tzmofficial 1:20:55
1:20:58

There was a big blackboard in the union office.

tzmofficial 1:20:58
1:21:01

Any worker who had a complaint would write it on the blackboard

tzmofficial 1:21:01
1:21:05

and it would be discussed in the assembly.

tzmofficial 1:21:05
1:21:08

If a person suggested something,

tzmofficial 1:21:08
1:21:12

it was to find out what others thought

tzmofficial 1:21:12
1:21:16

and if they would accept that proposal.

tzmofficial 1:21:18
1:21:22

If people agreed, fine; if not, they'd do something else,

tzmofficial 1:21:22
1:21:24

but always by consensus.

tzmofficial 1:21:25
1:21:29

We didn't govern ourselves because the Regional Commitee said so.

tzmofficial 1:21:29
1:21:32

Every people has its culture,

tzmofficial 1:21:32
1:21:36

and because of that, it has its customs.

tzmofficial 1:21:37
1:21:40

The customs we have here in Valencia

tzmofficial 1:21:40
1:21:43

aren't the same as those in Andalusia.

tzmofficial 1:21:44
1:21:47

You have to be aware that you're working for yourself.

tzmofficial 1:21:47
1:21:50

You don't have a boss, so you're more keen to work.

tzmofficial 1:21:50
1:21:54

That way of behaving ethically in society

tzmofficial 1:21:54
1:21:57

without the need of any police force.

tzmofficial 1:21:57
1:22:00

I think that self-management

tzmofficial 1:22:00
1:22:03

continues to be the great unsolved question.

tzmofficial 1:22:03
1:22:05

How did the liberal democracies respond?

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1:22:08

Exactly as you'd expect them to.

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1:22:12

They despise democracy, for very good reasons:

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1:22:16

the masters do not want the ignorant meddlesome outsiders

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1:22:19

to run their own affairs, because they'll do it in their own interest.

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1:22:22

You lose hierarchy, domination,

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1:22:25

and centralized control:

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1:22:28

all the values that the masters naturally want.

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1:22:32

So, the liberal democracies essentially joined forces

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1:22:37

with the fascists and the communists to destroy the revolution.

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1:22:39

After they destroyed the anarchist social revolution,

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1:22:42

then they started fighting among themselves.

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1:22:45

But the first task, for the first year,

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1:22:49

was to make sure that the popular revolution was crushed.

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1:22:53

The communists were in fact in the lead.

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1:23:01

The fascists, of course, had their own interests.

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1:23:03

The United States was a little marginal at that time.

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1:23:07

It wasn't the major world power, it was mostly England and France.

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1:23:11

But Roosevelt also played a role, so there was an embargo passed

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1:23:16

which prevented arms from going to the republic.

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1:23:21

However, Roosevelt tolerated breaking of the embargo illegally

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1:23:24

to provide oil to the fascists.

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1:23:27

The State Department pretended it didn't know.

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1:23:30

Of course, they did know. I remember this as a child,

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1:23:32

the left-wing press was reporting it,

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1:23:34

the government said they never heard about it

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1:23:36

and of course the media went along with the government.

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1:23:39

Years later, the documents came out

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1:23:41

and they conceded that it had been happening all along.

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1:23:45

So yes, Roosevelt was basically supporting the fascists,

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1:23:50

but primarily destroying the anarchist revolution, which was a real threat.

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1:23:55

A totalitarian state will reign in Spain.

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1:24:00

The functioning of all the capacities and energies of the country

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1:24:05

in which inside the nation's unity, the work,

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1:24:09

considered as the least avoidable duty

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1:24:12

will be the only exponent of the popular will

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1:24:15

and thanks to which

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1:24:19

the authentic power of the Spanish people will be able to manifest

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1:24:24

through those natural structures, which like the family,

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1:24:28

the city council, the association and the corporation

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1:24:31

will crystallize our highest ideals into reality.

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1:24:36

Fascism is a very rational system.

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1:24:42

It is an instrument by the ruling plutocracy

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1:24:49

to distract the people with the accouterments of a false revolution.

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1:24:52

There's always a false populism.

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1:24:55

There's a lot of goose stepping

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1:24:58

and there's a lot of manipulation of symbols, sentiments

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1:25:00

love of the state and the like.

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1:25:05

Much of politics is the rational use of irrational symbols.

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1:25:09

The attention that when people study

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1:25:12

Italian fascism or nazism especially,

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1:25:16

they focus on it as a kind of insane movement

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1:25:18

that just happened,

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1:25:21

carried on by this maniac Adolf Hitler

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1:25:26

and the Germans went our of their heads and were led astray.

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1:25:29

In fact, what they tried to do,

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1:25:32

is to direct the real grievances

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1:25:35

of the German people toward irrelevant enemies.

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1:25:41

The democratic parties promised a heaven on Earth!

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1:25:48

38 parties, 6 million unemployed

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1:25:58

When the fascists came into power,

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1:26:02

they cut wages by 50%, they destroyed every labor union

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1:26:07

they destroyed every opposition party and every newspaper (closed them down).

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1:26:13

They abolished all inheritance taxes for the rich or cut them drastically;

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1:26:16

they abolished all cartel taxes for the corporations:

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1:26:20

pretty much what's being done here

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1:26:24

without having to go all that far politically.

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1:26:28

Fascism is an instrument

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1:26:32

whereby the plutocracy can control

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1:26:36

and, hopefully, effect a final solution to the class struggle.

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1:26:40

You totally shatter, destroy and enslave

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1:26:44

the working class, and people just have to take it.

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1:26:47

What substantiates what I just said,

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1:26:50

that fascism is an instrument of plutocracy,

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1:26:54

is the way the plutocracy acted toward the fascists

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1:26:57

not just the German plutocracy which gave Hitler

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1:27:02

enormous sums of money, which enabled him to go all over the country,

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1:27:04

but also the plutocracy of the United States,

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1:27:09

where all sorts of eminent members of that plutocracy

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1:27:11

openly supported the fascists.

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1:27:17

(Announcer) I.G Farben industries, Allgemeine Elektricitäts-gesellschaft,

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1:27:21

Siemens-Schuckertwerke, Siemens-Halske,

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1:27:23

Opel,

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1:27:26

Fried. Krupp Aktiengesellschaft

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1:27:29

Tōkyō Shibaura

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1:27:32

Mitsubishi Electrical Engineering Company,

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1:27:35

Westinghouse Electric Company of Japan

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1:27:40

Compagnia Generale di Elettricità

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1:27:43

Marconi Società Anonima

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1:27:46

and many more all over the world.

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1:27:49

(R. Baker) Among the titans of Wall Street, there was a tremendous amount of sympathy

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1:27:55

for Adolf Hitler and for Mussolini, coupled with a great deal of fear

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1:28:00

about what they perceived as a rising red threat and the threat from unions.

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1:28:03

So they were largely sympathetic with what they saw going on over there.

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1:28:07

Of course, these people and the attorneys working for them

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1:28:11

like the Dulles brothers who would later go on to run the State Department

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1:28:15

and the CIA were very much in tune on this sort of thing.

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1:28:18

It put them in an awkward position later on,

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1:28:20

when they ended up having to fight against Hitler,

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1:28:24

but that never really changed, I think, their fundamental belief

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1:28:28

which was that they shared

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1:28:30

common cause with industrialists everywhere.

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1:28:33

In fact, many of these people were involved with companies

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1:28:38

that had operations in Germany and in occupied territories of Germany.

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1:28:42

We later saw the prosecution of a number of them

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1:28:46

under the Trading with the Enemy Act and this included Prescott Bush

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1:28:49

the grandfather of George W. Bush.

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1:28:53

(Reporter) Prescott Bush was a partner in Brown Brothers Harriman

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1:28:56

the most prestigious investment bank on Wall Street.

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1:29:00

By the time when the influence of the WASP establishment in America,

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1:29:03

the White Anglo-Saxon Protestants was near its peak.

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1:29:10

(Narrator) Not only did some of the most powerful corporations

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1:29:15

support fascism in Europe, so did many of its most powerful politicians.

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1:29:19

Mussolini was frequently praised by leading political figures

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1:29:22

in the United States and Britain

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1:29:25

and even by Churchill himself.

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1:29:27

On January 20th, 1927,

tzmofficial 1:29:28
1:29:31

he lauded the new philosophy while on a trip to Italy

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1:29:36

"I will say a word on an international aspect of fascism", Churchill stated,

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1:29:39

"Externally, your movement has rendered a service to the whole world...

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1:29:43

Italy has shown that there is a way of fighting the subversive forces

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1:29:47

which can rally the masses of the people, properly led,

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1:29:50

to value and wish to defend the honour and stability

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1:29:52

of civilized society."

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1:29:57

It was only when fascist states began threatening Anglo-American interests

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1:29:59

that the philosophy fell out of favor,

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1:30:02

at least temporarily.

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1:30:04

Working class men and boys from around the world

tzmofficial 1:30:04
1:30:08

were now forced to either defend or combat the Frankenstein monster

tzmofficial 1:30:08
1:30:11

nurtured by elites within their own nations.

tzmofficial 1:30:14
1:30:17

The nightmare of World War II had begun.

tzmofficial 1:32:24
1:32:27

General Eisenhower informs me

tzmofficial 1:32:27
1:32:30

that the forces of Germany have surrendered

tzmofficial 1:32:30
1:32:32

to the United Nations.

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1:32:36

The flags of freedom fly all over Europe.

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1:33:01

(Narrator) Despite rhetoric to the contrary, Truman would support fascist

tzmofficial 1:33:01
1:33:04

and other totalitarian leaders across the globe.

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1:33:09

Republican Senator George Bender lamented that:

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1:33:12

"Mr. Truman has urged the Congress to authorize a program

tzmofficial 1:33:13
1:33:15

of military collaboration will all the petty

tzmofficial 1:33:15
1:33:18

and not so petty dictators of South America."

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1:33:23

Aggressive politician Henry Wallace went further:

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1:33:28

He stated that: "Bipartisan reactionary war policy

tzmofficial 1:33:28
1:33:32

would eventually lead to outright fascism in the United States itself.

tzmofficial 1:33:33
1:33:36

According to Wallace, the Cold War would lead

tzmofficial 1:33:36
1:33:38

to a century of fear.

tzmofficial 1:33:43
1:33:46

End of Part 1