£2

LTHETHE OFFICIAL JOURNAL OF THE SOCIAL CREDIT SECRETARIAT

IE

For Political and Economic Realism Volume 77 No.4 July-August 1998

FREE TRADE, GLOBALISATION AND INTERNATIONAL DEBT

The British Press has been full thisSpring with talk of the financialcrisis in Asia, the meeting of the

Bilderberg Group, and the G8 summit inBirmingham where the agenda wasdominated by concern at current levels ofinternational debt, especially that of theunderdeveloped countries, and how thedrive for global free trade might be givenfurther impetus. We should recognise thattheir almost daily juxtaposition is not co-incidence.

For the network of "think tanks" such~ as the Bilderbergers, which met at

Turnberry Hotel near Girvan, in May,Trilateral Commissioners, members of theCouncil on Foreign Relations and the G8board; the objectives of globalisation andworld wide free trade, which they allespouse, and the increasingly dangerouspotential for the international debt crisisto become unmanageable, are all closelyrelated. Each impacts on, and feeds backupon, the others.

The continuing, primary objective ofthose who gather at the hub of thisnetwork appears to be to draft, and

inside -this issue~iiPAGliizl!..29'

, .,The Shape of things to.C.omeby Alex Falconer MEP'i ahd Oave,:$mith

,,,,~PAGESJP....~1 .....The 1998 ·Bilder~.ergMeeting

bY;:AlanArmstrong "'+.. with Alistair McConnachie

persuade politicians to adopt, strategiesdesigned to consolidate the power ofinternational finance and to ensure thesurvival of the principle mechanism for itsmaintenance - the fractional reserve,debt-money system - by which globalauthority is ultimately exercised.

Alas, politicians more often than notseem very willing to oblige.

Hence we note Margaret Beckett,New Labour's President of the Board oftrade, in an article in The Times of May18, 1998, indulging surely in a littlehistorical revisionism when she suggests,that as early as 1945 the first post-warLabour Government knew thatprotection of its planned welfare reformsrequired a commitment to "an open tradepolicy and support for the creation ofwhat was GATT and is now the WorldTrade Organisation".

The intervening period it seems hassimply underscored the merit of thatproposition. For she continues, "Fiftyyears on, our commitment to themultilateral trading system and free traderemains undimmed ... (for it is) ... apowerful engine for growth which raisesliving standards across the globe ... (and)... we must continue to reap the benefitsfor future generations".

Can it really be true that the first post-war Labour government which, in thehigh noon of the Keynesian revolution,nationalised the "commanding heights" ofthe British economy in the expectation ofinducing greater equity and rising livingstandards for the British people, wassimultaneously a devotee of the kind of"free market" theory which so enthusesMargaret Beckett today?

And if unfettered open marketcompetition is really so important howdoes Ms. Beckett

iand the Labour

government, reconcile that with therapidly increasing global power ofmultinational corporations and the mergermania that is currently sweeping the new"free-market" world of internationalbusiness? And are we to consider that thecurrent intense competition amongstgovernments themselves, in the degree towhich they are willing to offer taxpayers'money to multinationals to induce themto locate in their countries - is also aproper reflection of free market theory?

What then does Free Trade reallymean?

Who developed the strategy; who issupposed to reap the benefits, and whathas been the historical experience of FreeTrade?

THE THEORY OF FREE TRADE

Neo-classical economists and theirsupporters suggest that international,competitive free trade offers the bestprospect that internationally: real wagerates and capital costs will tend towardequalisation; world output will increase;all countries will make gains and, in time,each country will be enabled to maximiseits national welfare.

Central to this theory is the idea thateconomic gain will accrue as specialisationin production increasingly reflectsnational comparative advantage andresource endowment (the kind ofadvantage that the viniculturist in Franceor Portugal has over his Britishcounterpart) in the same way asproduction gains derive from "division oflabour" in the micro economy.

Other economists and interestedobservers are not wholly convinced. Thehighly respected Michael Todero,Professor of economics at New York

VOLUME 77 PAGE 25

THE SOCIAL CREDITER

University, for example, suggests that"Traditional trade theories neglect thecrucial role national governments can anddo play in the international economicarena. Governments often serve toreinforce the unequal distribution ofresources and gains from trade resultingfrom differences in size and economicpower. Rich-country governments caninfluence world economic affairs ... Theycan resist countervailing economicpressures from weaker nations and can act... in conjunction with their powerfulmultinational corporations to manipulatethe terms and conditions of internationaltrade to their own national interests." (1)

Even Graham Searjeant of the Times,who appears to be broadly in favour ofglobal free trade, recognises that

"Rich countries generally seize thelion's share of trade gains by pushing opentrade in growth areas where they have aninitial advantage and keeping the doorshut on mature markets where poorcountries can easily catch up". (2)

As we shall see, historical experiencejustifies these views.

Incidentally, we might also observe thatinternational financiers and other non-governmental vested interest groupsreflected in Bilderberg, Trilateral Comm-ission, Council on Foreign Relations et.al., exert much more powerful influenceson the long-term direction of worldeconomic affairs than economists orelected governments ever do.

Meanwhile, David C. Korten issomewhat more robust in his criticism offree market theory and asserts in his book,When CorporationsRule the World that thebeliefs espoused by free-marketideologues reflect a number of quitedifferent "explicit" assumptions including:* "People are by nature motivatedprimarily by greed.* The drive to acquire is the highestexpression of what it means to be human.* The relentless pursuit of greed andacquisition leads to socially optimumoutputs.* It is in the best interest of humansocieties to encourage, honor, and rewardthe above values." (3)

THE DEVELOPING STRATEGYAND HISTORICAL EXPERIENCE

Eduardo Galeano, on the basis ofhistorical experience, also offers aninterpretation of the impact of free tradewhich is very different from that

suggested by its most enthusiasticsupporters. In his "truly majestic" bookOpen Veins oj Latin America - FiveCenturies oj the Pillage oj a Continent, hereminds us that globalisation and freetrade theory is not new and, certainly forSouth America, has never been a recipefor ensuring a happy and prosperouspeople. He notes instead that FriedrichList (1789-1846), economist and father ofthe German Customs Union, onceobserved that "free trade was Britain'schief export .,. (that) ... Nothing arousedsuch British anger as protectionism ... towhich they sometimes ... gave vent inviolent language, as during the OpiumWar against China."

However he also observed thatBritain's commitment to free trade hadonly become "revealed truth for themafter they became sure of being thestrongest power ... (and) ... had developedtheir own textile industry under theumbrella of Europe's toughestprotectionist legislation." (4)

Galeano records the impact of "freetrade" in 1795, when in the Argentine'scoastal hinterland, "Textile workshopswove three types of ponchos, andfactories produced sturdy carts, cigars andcigarettes, leather and shoe soles inTucuman and Santiago del Estro ... Allkinds of cloth, fine woolens, andclergymen's black flannel came fromCatamarca;

Cordoba turned out more thanseventy thousand ponchos, twentythousand blankets, and forty thousandSpanish yards of flannel a year, along withshoes and leather goods, sailing cinchesand yards, carpetting and cordovan ...important tanneries and saddleries were inCorrientes.

Salta was famous for its fine saddles;Mendoza produced between two to threemillion litres of wine a year ... (that isuntil) ... Commercial agents fromManchester, Glasgow and Liverpooltoured Argentina and copied Santiaganand Cordoban ponchos and Corrientesleather goods."

In due course, "Argentine ponchoscosts seven pesos, Yorkshire ones three."As a result, "The world's most advancedtextile industry won at a gallop ... (and) ...Interior Argentine provinces wereruined". (5)

In Rio de Janeiro, about the sameperiod, he notes that US Ambassador,James Watson Webb, reported toWashington that, "In all of Brazil's

2

haciendas the master and his slaves dressin the products of free labour, and ninetenths of them are British. Britain suppliesall the capital needed for internalimprovements in Brazil and manufacturesall utensils in common use, from the '-"spade on up ... Great Britain suppliesBrazil with its steam and sailing ships, andpaves and repairs its streets, lights its citieswith gas, builds its railways, exploits itsmines, is its banker ..."(5)

Between 1822 and 1826 for example,Britain "extended to the liberated Spanishcolonies around £21 million in loans ...of which, after deduction of interest andmiddlemen's commission ... scarcely £7million had actually reached LatinAmerica. "(6)

Meanwhile The Bank of England wasdirectly financing government treasuriesand, since free trade resulted in a frenzy ofimporting, governments contractedincreasing debts and repeatedly called fornew loans.

By 1865 General Grant, newly electedas US President and celebrating victory inthe American Civil War, observed that"For centuries England has relied onprotection, has carried it to extremes, andhas obtained satisfactory results from it ...Mter two centuries, England has found itconvenient to adopt free trade because it ~thinks that protection can no longer offerit anything. Very well then, gentlemen,my knowledge of our country leads me tobelieve that within two hundred years,when America has gotten out ofprotection all it can offer, it too will adoptfree trade." (7)

WINNERS AND LOSERS

Back in Europe, F. William Engdahlreports that "In 1820 ... Acting on theurgings of a powerful group of Londonshipping and banking interests centeredaround the Bank of England andAlexander Baring of Baring Brothersmerchant bankers, Parliament passed astatement in support of the concept ... (of)... so-called 'absolute free trade'. (H)

"By 1846, this declaration ... hadbecome formalised in a Parliamentaryrepeal of domestic English agriculturalprotection, the famous Corn Laws ...based on the calculation of powerfulfinancial and trade interests of the City of VLondon, that their world dominance gavethem a decisive advantage, which theyshould push to the hilt ... (for) ... if theydominated world trade, free trade

VOLUME 77 PAGE 26

THE SOCIAL CREDITER

could only ensure that theirdominance would grow at theexpense of other less-developedtrading nations. (9)

In effect though, the "repeal of ComLaws protection opened the flood gatethroughout the British Empire to a'cheap labour' policy ... (and) ... Theonly ones to benefit, following an initialsurge of cheap food prices in England,were the giant international Londontrading houses, and merchant bankswhich financed them ... (while) ... Theclass separations of British society wereaggravated by a growing separation of atiny number of very wealthy fromgrowing masses of very poor, as a lawfulconsequence of 'free trade'." (10)

By the end of the 19th centuryhowever, "Britain embarked on a muchmore sophisticated .,. form ofmaintaining its dominant role .,. throughits 'informal empire' ... which emergedfrom the deliberations of ... a group ofEnglish policy elites who formed TheRound Table ... (and) ... in 1919established the Royal Institute forInternational Affairs as its principle think-tank."

Meanwhile British capital "had beenflowing in prodigious amounts into,

.,._; especially Argentina, Brazil and theUnited States to form bonds of financialdependence in many ways more effectivethan formal colonial titles". (11)

Returning again to Galeano, we learnthat the resulting impetus to "free trade"involved a "huge increase of imports,especially of luxury articles; governmentscontracted debts, which in turn called fornew loans, so that a minority could livefashionably. The countries weremortgaging their future in advance,moving away from economic freedomand political sovereignty." ('2)

Latin America, as a result of free tradeand imperialism, imposed through thedeveloping alliance between internationalfinance and their major client corporateenterprises, has never subsequently beenfree of its debt burden. Nor has it evertruly exercised political sovereignty forlong. The division, as earlier in Britain,between a tiny elite owning great wealthand the mass of the population whoexperience grinding poverty, remains aswide as ever.

By 1987 the combined external debtof Brazil, Mexico, Argentina andVenezuela alone had reached US$ 302billion. In 1993 Anna Isla, writing on

The Debt Crisis in Latin America, reportedthat, "In Peru, Bolivia, and Brazil, people... are reduced to ... eating Nicovita (fish-meal used for fattening chickens) and wetnewspaper, not because they are notproducing food, but because they areforced to sell the food they produce tothe North to help meet debt servicingpayments." (13)

If this tale of globalisation, free trade,debt, poverty and loss of sovereignty isextended to Africa and Asia theexperience is seen to be even moredevastating. By 1989 the external debt ofLess Developed Countries alone, hadrisen to $USbillion 1,262.8 and in somecases, including such major countries asBrazil, Mexico and China, it becamebarely possible to meet interest paymentson outstanding debt from their totalexport earnings!

In the last years of this centurymatters continue to get worse and in theOctober 1994 issue of the IMF's WorldEconomic Outlook: (Table A. 37) theforecast was that in 1995 total externaldebt would be $USbillion 1748.6 andannual debt servicing would rise to$USbillion 211.1.

THE DEBTS OF DISHONOUR

In this context Ian Bell, refers to themeeting in Birmingham of the G8 boardin his article "The debts of dishonour" inThe Scotsman and, with considerablejustification, comments that, "Hypocrisyis a commonplace of diplomacy, ofcourse, but we 'most developed' nationshave raised it to something of an art form... (for) ... In pursuit of global trade - onour terms, at our prices - we havebeggared half the world ... (and) ...Poverty, recession, unemployment, war,famine - ... are part of the deal.

Thus it may be that the IMF, withAmerica as principal, will save Asianeconomies from collapse, but the equityfor debt swap involved will mean asset -stripping on a huge scale. That, in turn,will mean terrific bargains at low, lowprices for, er, American companies." (14)

It will also mean, surpise, surprise,bailing out western commercial banks attaxpayer expense. In connection with thedebt crisis of the early 1980s for example,John Denholm asserts that "quite literallyin the period from 1987 to mid 1990,taxpayers of North America and Europeprovided their banks with a rock bottomfigure of $US 40 billion in tax relief ...

3

(And so that we might grasp themagnitude of of such a sum he notes) ...that it is greatly in excess of the GNP ofvirtually any Third World country withthe exception perhaps of the very biggestones like India and China, and is some .55 times UNICEF's budget for 1990 .(or) ... is much more than the $US 34billion of Official DevelopmentAssistance (ODA) accorded to alldeveloping countries in 1987." (15)

If therefore, this drive to ever greaterconce~tration of financial and corporatepower, which is the central objective ofthe free-trade/ globalisation agenda, andthe associated great tide of debt, grosspoverty and environmental destructionaround the world is to be turned, and ifthe feared implosion of internationaleconomies is to be avoided, Westernpoliticians must begin, urgently, to listencarefully to a much wider constituencyand a different agenda.

They should begin by taking muchmore seriously, the views of the mostcredible activists in the internationalvoluntary sector and to their own widerelectorates.

Simultaneously they should lendmuch, much less attention to thepowerful vested interest groups to whom,currently, they seem most inclined todefer.

And they should initiate a seriousstudy into the operation and effects of thefractional reserve debt-money systemwhich the whole world uses; which is atthe root of virtually all of our socio-economic problems and which is simplynot sustainable for much longer. TSC

Notes:1. Michael P. Todaro, Economic Development in the171ird World, (New York: Longman), p. 392.2. Graham Searjeant, The Times, May 21,1998.3. David C. Korten, When Corporations Rille theWorld, (London: Earthscan, 1995), p. 71.4. Eduardo Galeano, Open Veins of Latin America:Five Centuries of the Pillage of a Continent, (NewYork: Monthly Review Press, 1973), pp. 197-198.5. Galeano, Ibid, p. 195.6. Galeano, Ibid, p. 196.7. Galeano, Ibid, p. 220.8. William F. Engdahl, A Century of War, Angk»American Oil Politics and the New World Order,(Bottiger Veriags-GmbH, 1992), p. 109.9. Engdahl, Ibid, p. 10.10. Engdahl, Ibid, pp. 11-56.11. Engdahl, Ibid, p.13.12. Galeano, Ibid.13. Isla Anna, Canadian vVon/an's Studies (Vol 13,No.3).14. Ian Bell, The Seatsmml, May 20, 1998.15. Susan George et.al., The Debt Boomerang,(London: Pluto Press, 1992), pp. 19-20.

VOLUME 77 PAGE 27

THE SOCIAL CREDITER

THE SHAPE OF THINGS TO COME

With the approach of the triplezero year 2000 (and forlZurists, the new millennium

which begins the following year), we canexpect to see growing numbers of doommerchants taking to the streets,demanding that we repent because theend is nigh. They will doubtless beaccompanied by many exploitativeauthors and publishers who jump on thelucrative bandwagon, preying on peoples'fear of the future.

Putting to one side the hype of thefalse prophets and the pedlars of pulpfaction, there is a third, and much larger,category of people who believe that thehuman race faces a potentially apocalypticfuture.

These people do not suffer from premillennial tension. They don't expect thecrunch to come this side of themillennium, and probably not for quite afew years after. But, within the next fewdecades, they know we face globalcatastrophe in several guises.

With a few exceptions, these disasters-waiting-to-happen have been created byhomo sapiens. With fewer exceptions,they can be averted by us, if we move fastenough and soon enough. Unfortunately,the response so far has been uneven,sluggish, and inadequate. Despite the finewords of some politicians, the manmadeproblems are getting worse.

Global warming is changing ourweather patterns, increasing thedestructiveness of events such ashurricanes, droughts and floods. Therising seas threaten the very existence ofsome nations.

Despite the need to trap carbondioxide, we continue to devour forests forthe sake of a few years of unsustainableagriculture.

We have a global economic systemwhich forces people to grow cash cropsfor export, to finance debt repayment,when they themselves are malnourished.Global financial institutions lock peopleinto poverty and unemployment as theprice for loans which they cannot affordto repay. The international monetarysystem is unstable, and it is run byorganisations whose modus operandi isincreasingly discredited, and who evenadmit (to themselves but not openly to

by Alex Falconer MEP and Dave Smith

others) that they have made majormistakes.

People are living in misery and dyingas a result. Famine, plague and pestilence,far from being eradicated, are beingexacerbated by the globalisation ofcapitalism.

To the threat of environmental oreconomic collapse, we should also add thedangers of international conflict. As wehave recently been reminded, we stillhave the capacity to blow up the worldseveral times over. The nuclear timebomb is still ticking away in the hands ofan expanding and increasingly rowdynuclear club.

REACTION AND PROACTION

Many, many people see what IS

happening. They band together tocampaign for change, and to help thosewho are suffering. There are tens ofthousands of organisations throughout theworld, dedicated to particular or generalaction on the environment or debt orpoverty, and campaigning for humanrights, peace and development.

As people examine the causes of theissues which concern them, they meetother issues and other campaigners. Theyrealise that their concerns are related, andthat the way forward is intertwined. Theyforge links and make common cause, butdo not necessarily take the next step.

If these things have common causes,and it is our contention that they do, thenthe solution must encompass all theproblems. Furthermore, it should notsurprise us that in a world where profitsrule supreme, all roads to salvation leadback to the global economic and financialsystem.

The dangers which we face in thenext few decades are, if not cataclysmic,then without doubt, extremely serious.The present system has shown itselfincapable of addressing them adequately.We therefore need radical changes to thesystem.

Campaigns such as Jubilee 2000 aremaking great strides in raising awareness,both among the public and politicians. Ifthey manage to overcome therecalcitrance of the USA et al, then themeasures they are demanding would

4

Alex Falconer MEP

certainly alleviate the worst effects of thepresent system.

However, while debt cancellation is anecessary part of any strategy to overhaul Vthe global economy, it only treats thesymptoms of the malaise. Unless we alsoattack the root causes, then the symptomswill recur, or we will be subject to -'another manifestation of the underlyingdisorder.

Consider deforestation (and theconsequent loss of biodiversity andacceleration of global warming). Intemperate regions, most primary forest hasalready been destroyed.· Tropicalrainforest is disappearing so fast that atcurrent rates, there will be little left by2040. Schemes such as debt for natureswaps are too often aimed at alternativeexploitation that provides little benefit forlocal populations, and in any event, aretotally inadequate to deal with this scaleof destruction.

Deforestation is the inevitable result ofthe rapid economic growth policiesadopted by many developing nations inresponse to the demands of the globalfinancial institutions.

The (unsustainable) growth imperative \..."ipermeates all the problems we face. Itmakes us look at the world through adistorting lens. Productivity is measuredin terms which ignore pollution by toxic

VOLUME 77 PAGE 28

THE SOCIAL CREDITER

and climate changing chemicals. Whenmodern agriculture, based on fossil fuelsand chemical fertilisers, uses ten caloriesof non-renewable energy to produce onecalorie of food, is it really an advancepon traditional practices that yield two

calories of food for every calorie ofrenewable energy input?

THE POWER BEYOND NATIONS

Given the undeniable severity of theconsequences of inaction, why are thenations of the world not tackling theseproblems effectively? Pin the blame, yetagain, on the global economic system.

Nations are not the only players in thegame. Transnational Corporations havebigger turnovers and more power thanmany nations. They can even take on andwin in battles against supranationalinstitutions such as the European Union.The supposed regulators of internationaltrade and finance, such as the WTO, arein practice captives to the Transnationals'agenda.

It would be untrue to say thatcapitalist enterprises are not interested inlong term future prosperity. But they doapply a heavy discount rate to futurebenefits, which means that in all but the

Vmost extreme circumstances, short-termprofits are the prime motivationdetermining their actions. Such is theirpower, internationally and within nations,that their short-term perspective isinevitably the dominant factordetermining government policies.

Short terrnism is inherent in the globaleconomic system. An examination of thefactors which contribute to short-terrnismreveals fundamental flaws in the system.The long term solution to the destructivetendencies of global capitalism requiresthat we identify and eliminate those flaws.

This is, of course, A Massive Task.However, it is also essential for the longterm survival of the human race.

WHAT IS TO BE DONE?

A few months ago, we met with ahandful of people to discuss this situation,and what we could do about it. Weagreed that given the size of the task, anycampaign must aim to involve, link and

~ unify in action, the many and diverseforces already campaigning on one ormore of the issues.Also, it was recognisedthat while such a campaign wouldessentially be one which created a

network among existing organisations (itwould be counterproductive to attempt toduplicate the work which is already beingdone), it should also be flexible enough toengage new supporters.

At subsequent meetings, which haveinvolved activists from Non-Governmental Organisations, churches,and the labour movement, we decided toconcentrate in the first instance onbuilding support for the idea of such acampaign among Scottish organisationsand activists. To this end we prepared ashort pamphlet that outlined the mainprinciples on which we thought acampaign could be built, but making itclear that the purpose of the pamphlet wasto stimulate interest and debate, not toserve as a definitive and immutablefounding statement. Apart from anythingelse, we know that we live in animperfect world, and that attempts toimpose "perfect" solutions on it aredoomed to failure (and we wish that moreeconomists would realise it too).

We have alsobeen pleased to hear thatsimilar campaigns are being builtelsewhere, offering the possibility ofbuilding a global network, connectingnational, regional and local groups. In thiscontext, we were also heartened by asuccess of the campaign against theMultilateral Agreement on Investment.

The campaign was internationallycoordinated, largely via the internet. It hasprovided a valuable lesson in howprogressive forces can make use of new.technology to tackle global issues.

Weare now in the process of"recruitment". There have been fringemeetings at several conferences, and wewould appreciate invitations to speak atothers. The currently ad hoc groupoperates under the working title of theGlobal Economic Reform Movement,but that's only the germ of an idea. Thatwe still have no fixed title is deliberate,and reflects the early stage ofdevelopment. Having pointed the fingerat the fundamental flaws, we do not wantto preempt the wider discussion of thecampaign's objectives and organisation.For that, dear reader, we await yourinvolvement.

Alex Falconer is the Member of theEuropean Parliament for Mid Scotlandand Fife. Dave Smith is Alex's researcher.They have worked together on manypamphlets, the most recent of which was"The Wealth Beyond Nations", availablefree of charge from 25 Church Street,Inverkeithing, Fife KY11 1LH.Tel: 01383419330E-mail: The_Citizen@compuserve.com

Alex Falconer MEP

5VOLUME 77 PAGE 29

THE SOCIAL CREDITER

THE 1998 BILDERBERG MEETING"The world's most powerful secret society" - Punch magazine, 23 May - 5 June 1998by Alan Armstrong, with Alistair McConnachie at Turnberry.

Punch magazine's report continued,"Few have heard of the BilderbergCouncil. But its 120 members are

some of the most powerful people on theglobal stage. It meets amid unparalleledsecrecy to discuss the future of theworld."

Punch was referring to the meetingheld at Turnberry Hotel, near Girvan onthe West coast of Scotland on Thursday14th - Sunday 17th May 1998. Untilvery recently, any reference to even theexistence of the highly secretiveBilderberg Group was greeted with greatskepticism by the world's media. Punch,along with the Mail on Sunday, theScotsman, the Scottish Daily Mail, theScotland on Sunday and The SocialCrediter, met outside the gates ofTurnberry to find out what was going on.

The 123 participants at the meeting,conducted as always in secrecy andaccompanied by a powerful policepresence, included Lord Carrington,Chairman since 1990, UK DefenceSecretary George Robertson, WilliamHague Leader of the Opposition,Kenneth Clarke ex-Chancellor of theExchequer, Henry Kissinger and a greatclutch of other heavyweight movers andshakers from the world of internationalbanking, industry, multinational corpor-ations, and senior politicians, of whomsome are still in power and some othersshowing real potential!

Investigatory journalist RobertEringer, in his book The GlobalManipulators (Bristol, England: PentacleBooks, 1980) notes that "The steeringcommittee certainly has an amazing eyefor choosing guests who are on the wayup. Most of the current leaders of the

Kenneth Clarke being unco-operative.Sunday 17th May 1998, 1pm.

Tumberry Hotel; scene of the 46th Bilderberg Meeting. An army helicopter comes in to pick upSecretary of State for Defence, George Robertson. Friday 15th May 1998, 4.30pm.

West have emerged from the depths ofBi ld erb erg ... Every British PrimeMinister of the past thirty years hasattended Bilderberg ...(and) Denis Healeywas an early member of Bilderberg andwas on the steering committee longbefore he became Chancellor theExchequer." Tony Blair attended themeeting on 23-25 April 1993 atVouliagmeni in Greece when he wasShadow Home Secretary.

WHY THE SECRECY?

Punch noted, and Bilderbergers would notdeny, that the Council meets "amidunparalleled secrecy to discuss the futureof the world." But why? In this context,Robert Eringer wrote to DavidRockefeller, Chairman of ChaseManhattan Bank to enquire aboutBilderberg. An assistant directed him to aMr. Charles Muller, a Vice President atMurden and Company, "the organisationwhich assistswith the administration ofAmerican Friends of Bilderberg,Incorporated." (p. 11) Muller sent him aprinted message which included thesuggestion that it was, "In order to assureperfect freedom of speech and opinion,the gatherings are closed and off therecord. No resolutions are proposed, novotes taken, and no 'policy statements areissued during or after the meetings."

Eringer subsequently established that

6

in fact this is not so. He managed toobtain a copy of a "Strictly Confidential"record of the meeting held in Barbizon,France in March 1955 and one of theSeptember meeting in Garmisch, WestGermany the same year, which records <:»that "Participants in this conference may,in light of the consensus of opinionexpressed during the discussions, be ableto pass these views on to public opinionin their own spheres of influence, withoutdisclosing their source." (p. 30)

Finally, in a letter to Eringer, one timemember Sir Paul Chambers wrote, "I amunder obligation not to disclose anythingabout the Bilderberg Group ~o anybodywho is not a member of that group. I amvery sorry that I cannot help, but I amclearly powerless to do so and it would bewrong in the circumstance to sayanything to you about Bilderberg."

There is enough here to allow us toinsist that if there are grand strategies tobe developed, presumably in the "bestinterests" of the world's peoples, theyshould be made in forums that are subjectto full democratic scrutiny andaccountability. Not behind locked doorsat private meetings of a largely self-appointed elite establishment.

Why should democratically elected \..,...representatives attending these meetingsfeel it necessary to maintain completesecrecy over what is discussed? It is alsoopen to question whether the British

VOLUME 77 PAGE 30

THE SOCIAL CREDITER

Police Force should have provided armedsecurity for such a "private meeting" orwhether an Army helicopter should havebeen used to ferry Defence SecretaryGeorge Robertson. According to hispokesman, "He was fulfilling an officialengagement as Secretary of State forDefence and, as such, transport was metby public expense." (Mail on Sunday,Night and Day supplement, June 14,1998,p.15.)

THE TURNBERRY AGENDA

According to the official PRESSRELEASE Bilderberg Meetings, dated May14, 1998: "Among others the Conferencewill discuss NATO, Asian Crisis, EMU,Growing Military Disparity, Japan,Multilateral Organizations, Europe's socialmodel, Turkey, EU/US Market Place."

Hopefully, journalists are beginning towake up, at long last, to the idea thatBilderberg is real and that it is a veryimportant influence in the world.Perhaps, the veil of secrecy can be lifted ifonly a little and with that hope, AlistairMcConnachie set out to find participantswho might be willing to say somethingabout what was going on inside the hotel.

V Hotel staff coming and going wouldjust look at their feet without uttering aword. A reporter for the Scottish DailyMail who knocked on the doors of thestaff accommodation block was arrested,handcuffed and detained for eight hoursin Ayr Police Station under Section 14 ofthe Criminal Justice Act (Scotland),which is invoked when police havereason to suspect an offense has beencommitted! This episode is reported inThe Press Gazette of22 May.

However, for a few hours onSaturday, between 12 noon and 3pm, thedelegates spent time in the grounds, eitherplaying tennis, playing golf on the courseby the sea, or visiting Culzean Castle alittle up the coast. Alistair McConnachieand a colleague had time to speak todelegates as they passed.

Otto Wolff von Amerongen,Chairman and CEO of Otto WolffGmbH in Germany was the first to stopand explained that the meeting wasstructured with short introductions to achosen topic and then a general

'-" discussion. Two British delegatesexplained that there is a panel whichconsists of a moderator and two or threepeople. They have about 10 minuteseach on the chosen topic and then there is

"discussion questions", which last for 5, 3or 2 minutes. There are no introductorydocuments, and there are no records. Atthe most there is a page on a 3 hourdebate. It doesn't circulate documentsbetween its members. One of the Britishdelegates believed it was not possible tomount a conspiracy in a group like theBilderbergers because it has no existencebetween its meetings.

George Papandreou, Greek AlternateMinister for Foreign Affairs was outjogging and came over to speak. He saidthey had been discussing, "Everything.Everything from the Asian crisis toPortugal to whatever else." He was happyto have his photo taken, "You want toput me in the paper like this? They'll loveit in Greece." He jogged off, urging, "Bestrongly critical, whatever you write!"

George Papandreou, Alternate Minister for ForeignAffairs in Greece, and Alistair McConnacrue.

Saturday 16th May 1998, 2.30pm.

A little light is beginning to shine onthis group. For example, Will Hutton,Editor of The Observer, who was anattendee at the 13-15 June 1997Bilderberg Conference at Lake LanierIslands outside Atlanta, Georgia wrote on1st February 1998 ("Kinder capitalists inArmani specs") that "the BilderbergConference is one of the key meetingsof the year the consensus establishedhere is the back-drop against which policyis made worldwide".

A recent former delegate who "holdsa senior position in the media" (almostcertainly Hutton - TSC) was quotedanonymously at length by MalcolmMacalister Hall in the Mail on Sundayarticle of June 14, 1998. Macalister Hallwrites: "But he says that Bilderberg is partof a global conversation that takes placeeach year at a string of conferences, and itdoes form the backdrop to policies thatemerge later. 'There's the WorldEconomic Forum at Davos in February,the Bilderberg and G8 meetings in

7

April/May, and the IMF/World Bankannual conference in September. A kindof international consensus emerges and iscarried over from one meeting to thenext. But no one's really leading it. Thisconsensus becomes the background forG8 economic communiques; it becomeswhat informs the IMF when it imposes anadjustment programme on Indonesia; andit becomes what the president proposes toCongress.",

The Bilderberg Group is one of aconstellation of "private groups" withrelated global agendas. They include theTrilateral Commission, the Council onForeign Relations and the Royal Institutefor International Affairs (ChathamHouse). Arnold Toynbee, the centralfigure at Chatham House for thirty yearsfrom 1925 to his retirement in 1955might have been speaking about the ethosof anyone of these groups when hecommented that they were "denying withour lips what we are doing with ourhands" (International Affairs, Vol. 10).

The Social Credit Secretariat iskeen to contribute what it can to ensuringthat the agendas of such organisations aremade fully open to democratic scrutinyand that especially our elected politicianscease attending such group meetings forso long as they are subject to anyinstruction to secrecy.

Finally, we put the followingcomment on record, passed to us, fromone of the many people we spoke to andwho shall remain nameless, "Book yourholidays in Portugal next year."

Any readers who want a copy oJ the Jull list oJdelegates are invited to write, enclosing as. a. e.

Copyright © 1998. Permission granted forreproduction with appropriate credit.

If you wish to comment on an article inthis, or the previous issues, or discuss

submission of an essay for a future issueof The Social Crediter, please contact the

Editor directly:Alan Armstrong,

Gilnockie, 32 Kilbride Avenue,Dunoon, Argyll,

Scotland PA23 7LH.Tel/Fax: 01369701102

If you do not wish to cut the coupon on theback page, please forward your subscription

with your address details.

VOLUME 77 PAGE 31

THE SOCIAL CREDITER

CREDO

In a World of PLENTY, there is noneed for Poverty and DEBT We

have the resources and the technique tofeed house and clothe all the people onEARTH, on a suitable basis withoutdestroying our environment. Whatever

is physically possible and sociallydesirable CAN be made financiallypossible. This is EVERYONE'S

CONCERN and it is URGENT

THE SOCIAL CREDITER

This journal expresses and supports thepolicy of the Social Credit Secretariat

founded in 1933 by Clifford HughDouglas. The Social Credit Secretariat is

non-party and non class, neither is itconnected with nor supporting any

political party.

SUBSCRIPTIONS

Annual rates:UK inland £12.00

Overseas surface mail £12.00Airmail £15.00

In Australia, subscriptions and businessenquiries should be addressed to

3 Beresford Drive, Draper,Queensland 4520.

Published by KRP Ltd,16 Forth Street, Edinburgh EH1 3LH.

Tel 0131 5503769

r-·-·-·---·-·-----·-·--·---·-·-----·-·------------·-·-.--------.-.-.-.-.-------.,

THE SOCIAL CREDITERPlease send me The Social Crediter for one year.

(Cheques/Money Orders payable to KRP Ltd,16 Forth Street, Edinburgh, EH1 3LH, Scotland)

Name

Address

Post Code

Enclosed £

VOLUME 77 PAGE 32

Recommended ReadingBooks by Major C.H. Douglas

Social CreditThe Monopoly oJ CreditEconomic DemocracyWarning DemocracyCredit Power and DemocracyThe Control and DistributionoJProduction

Eric de MareA Matter oJLife or Debt

Alan D. ArmstrongTo Restrain the Red Horse*The Urgent Need Jor RadicalEconomic Reform (1996)

THEMONOPOLY

OFCREDIT

c. H. DOUGLAs

SOCIALII

CREDIT

by CH. DOUGLAS

A MATTEROF LIFEOR DEBT

Eric de Mare'

Books and booklets on the subject of Social Credit are available from Bloomfield Books,26 Meadow Lane, Sudbury, Suffolk, England COlO 6TD.* Also available from Towerhouse Publishing, 32 Kilbride Avenue, Dunoon,Argyll, Scotland P A23 7LH.

New address: SOCIAL CREDIT ON THE INTERNEThttp://www.scss.gil.com.au

SBCRETARlAT,Chairman and EditorDeputy ..Chairmanagd ..TreasurerSecretary /Production EditorResearcl::t QfficerCorrespondent to Vatica.nLibrarianHistorianp.jrectpr,..$9cial Cr¢~t SCh09l of StuGi.~.sCorrespondent in Canada

Alan D. Armstrong BA (Hans) Econ

.]. A;Murray.'McGratl::t:ECOp~:t\"LiDcL¥Alistair D. McConnachie BSc (H~ns)

Alister Lawre~ceAnthony Cooney BA

Peter Lambie .Richard Brockett, Wellers Hill, AustraliaVi'i"~ridger,'~amford,,,Australia'Wallace M. Klinck, Sherwood Park, Alberta

THE SOCIAL CREDITER BUSINESS ADDRESSSubscribers are requested to note the address for all business related to KRPLimited and The Social Credit Secretariat is: 16 Forth Street, Edinburgh EH1 3LH.Telephone 0131 5503769 e-mail: social.credit@virgin.net

El