Stalin- The Enduring Legacy

by Kerry Bolton

  Rogovin alludes to anti-Stalinist leaflets that were being widely distributed in the USSR as late as 1938, calling for a ‘struggle against Stalin and his clique’. Rogovin also states that there was much more to the Opposition than isolated incidents of leaflet distribution:

  Of course these are isolated incidents, but prior to the unleashing of the Great Terror there was a much more widespread, more serious, and well-organised opposition to Stalinism as a regime which had veered ever more widely away from the ideals of socialism.

  This battle against Stalin began back in 1923 with the formation of the Left Opposition. The inner party struggle unfolded in ever-sharper form throughout the 20s. Thousands upon thousands of Communists took part in this Opposition, openly in the early days and then, after opposition groups were banned, in illegal underground forms against the abolition of party democracy by the Stalinist party clique.[255]

  In 1932 the Opposition coalesced, ‘the old opposition groups’ became more active, and ‘were joined by layers of newly-formed opposition groups’. Many representatives of the Opposition groups that year began to discuss ways of uniting into an ‘anti-Stalinist bloc’. Rogovin states that the year previously Ivan Smirnov, one of the former leaders of the Left Opposition who had capitulated but then returned to the Opposition, went on an official trip to Berlin where he established contact with Trotsky’s son, Leon Sedov and discussed the need to ‘coordinate efforts between Trotsky and his son….’ What Rogovin states is in agreement with the supposedly forced confessions of the defendants at the Moscow Trials. Getty had also found similar material in the Trotsky Papers at Harvard, previously referred to.

  Rogovin states that it was only in 1935 and 1936, having assessed the information garnered from the Kirov investigation in 1934, that the secret police were able to find conclusive evidence on the existence of an anti-Stalinist bloc since 1932. ‘This was one of the main factors which drove Stalin to unleash the Great Terror’, states Rogovin. He also confirms the basis of the Stalinist accusations that ‘they did try to establish contact among themselves and fight for the overthrow of Stalin’s clique’.[256]

  Rogovin’s statements cannot be lightly dismissed. He was speaking as a sympathiser of Trotskyism, who had access to the Soviet archives in the writing of a six volume series on the political conflicts within the Communist Party Soviet Union and the Communist International between 1922 and 1940, of which Stalin’s Great Terror is volume four. On his sixtieth birthday in 1997, Rogovin received tribute from Trotskyite luminaries from Germany, Britain and the USA.[257]

  IV

  Trotsky, Stalin and the Cold War

  The Historic Implications and Continuing Ramifications of the Trotsky-Stalin Conflict

  The Moscow Trials were symptomatic of a great divide that had occurred in Bolshevism. The alliance with Stalin during World War II had formed an assumption among US internationalists that after the Axis defeat a ‘new world order’ would emerge via the United Nations Organisation. This assumption was ill-founded, and the result was the Cold War. Trotskyists emerged as avid Cold Warriors dialectically concluding that the USSR represented the primary obstacle to world socialism. This chapter examines the dialectical process by which major factions of Trotskyism became, in Stalinist parlance, a ‘tool of foreign powers and of world capitalism.’

  One of the major accusations against Trotsky and alleged Trotskyists during the Moscow Trials of 1936-1938 was that they were agents of foreign capital and foreign powers, including intelligence agencies, and were engaged in sabotage against the Soviet State. In particular, with the advent of Nazi Germany in 1933, Stalin sought to show that in the event of war, which he regarded as inevitable, the Trotskyist network in the USSR would serve as a fifth column for Germany.

  The background of these trials has been examined in Chapter III.

  Stalin Correct in Fundamental Accusations Against Trotskyites

  What is significant is that Khrushchev did concede that Stalin was correct in his fundamental allegation that the Trotskyists, Bukharinites et al represented a faction that sought the ‘restoration of capitalism and capitulation to the world bourgeoisie’. However Khrushchev and even Stalin could not go far enough in their denunciation of Trotskyists et al as seeking to ‘restore capitalism’ and as being agents of foreign powers. To expose the full facts in regard to such accusations would also mean to expose some unpalatable, hidden factors of the Bolshevik Revolution itself, and of Lenin; which would undermine the whole edifice upon which Soviet authority rested– the October 1917 Revolution. Lenin, and Trotsky in particular, had intricate associations with many un-proletarian individuals and interests.

  The fact of behind the scenes machinations between the Bolsheviks and international finance was commented upon publicly by two very well-positioned but quite different sources: Henry Wickham Steed, conservative editor of The London Times, and Samuel Gompers, head of the American Federation of Labour.

  In a first-hand account of the Peace Conference of 1919 Wickham Steed stated that proceedings were interrupted by the return from Moscow of William C Bullitt and Lincoln Steffens, ‘who had been sent to Russia towards the middle of February by Colonel House[258] and Mr. Lansing, for the purpose of studying conditions, political and economic, therein for the benefit of the American Commissioners plenipotentiary to negotiate peace.’[259] Steed stated specifically and at some length that international finance was behind the move for recognition of the Bolshevik regime and other moves in favour of the Bolsheviks, stating that: ‘Potent international financial interests were at work in favour of the immediate recognition of the Bolshevists.’[260] In return for diplomatic recognition Tchitcherin, the Bolshevist Commissary for Foreign Affairs, was offering ‘extensive commercial and economic concessions.’[261]

  For his part, Samuel Gompers, the American labour leader, was vehemently opposed to the Bolsheviks and any recognition or commercial transactions, stating to the press in regard to negotiations at the international economic conference at Genoa, that a group of ‘predatory international financiers’ were working for the recognition of the Bolshevik regime for the opening up of resources for exploitation. Gompers described this as an ‘Anglo-American-German banking group’. He also commented that prominent Americans who had a history of anti-labour attitudes were advocating recognition of the Bolshevik regime.[262]

  Trotsky’s Banking Connections

  What is of significance here however is that Trotsky in particular was the focus of attention by many individuals acting on behalf not only of foreign powers but of international financial institutions. Hence while Stalin and even Khrushchev could aver to the association of Trotsky with foreign powers and even – albeit vaguely - with seeking the ‘restoration of capitalism and capitulation to the world bourgeoisie’, to trace the links more specifically to international finance would inevitably lead to the association also of the Bolshevik regime per se to those same sources, thus undermining the founding myth of the USSR as being the ‘dictatorship of the proletariat’.

  These associations between Trotsky and international finance, as well as foreign intelligence services, have been meticulously documented by Dr Richard Spence.[263] Spence states that ‘Trotsky was the recipient of mysterious financial assistance and was a person of keen interest to German, Russian and British agents’. Such contentions are very similar to the charges against Trotsky et al at the Moscow Trials, and there are details and personalities involved, said to have been extracted under torture and threats, that are in fact confirmed by Spence, who traces Trotsky’s patronage as far back as 1916 when he was an exile from Czarist Russia and was being expelled from a succession of countries in Europe before finding his way to the USA, prior to his return to Russia in 1917 to play his part in the Revolution. Expelled from France to Spain, Trotsky was locked up as a ‘terrorist agitator’ for three and a half days in comfortable conditions.[264] Ernst Bark, perhaps with the use of German funds, arranged Trotsky’s release and his transfer to Cadiz t
o await passage with his family to New York and paid for first class passage on the SS Montserrat. Bark was cousin of the Czar’s minister of finance Petr Bark who, despite his service to the Czar, had the pro-German, pro-Bolshevik banker Olof Aschberg, of the Nya Banken, Sweden, as his financial agent for his New York dealings. A report reaching US Military Intelligence in 1918 stated that Trotsky had been ‘bought by the Germans’, and that he was organising the Bolshevik[265] movement with Parvus.

  From being penniless in Spain to his arrival in New York, Trotsky had arrived with $500 which Spence states is today’s equivalent to about $10,000, although Trotsky liked to depict himself as continuing in proletarian poverty. Immigration authorities also noted that his place of residence would be the less than proletarian Hotel Astor in Times Square.

  In New York the Trotsky’s lived in a Bronx apartment with all the mod-cons of the day. He was employed by Novyi Mir, and was hosted by Dr Julius Hammer, a Bolshevik who combined revolution with an opulent lifestyle. Hammer was probably the mysterious ‘Dr M’ referred to by Trotsky in his memoirs, who provided the Trotskys with sightseeing jaunts in his chauffeured car. [266]

  One of the main contacts for Trotsky was a maternal uncle, banker and businessman Abram Zhivotovskii. In 1915 Zhivotovskii was jailed in Russia for trading with Germany. The US State Department described Zhivotovskii as outwardly ‘very anti-Bolshevik’, but who had laundered money to the Bolsheviks and other socialist organizations. [267] He seems to have played a double role in moneymaking, working as a financial agent for both Germans and Allies. During the war he maintained an office in Japan under the management of a nephew Iosif Zhivotovskii, who had served as secretary to Sidney Reilly, the so-called ‘British Ace of Spies’ who nonetheless also seems to have been a duplicitous character in dealing with Germany. Spence mentions that Reilly, who had a business in the USA, had gone to Japan when Trotsky was in Spain, and arrived back in the USA around the time of Trotsky’s arrival, the possibility being that Reilly had acquired funds from Trotsky’s uncle to give to his nephew in New York. Another Reilly association with Zhivotovskii was via Alexander Weinstein, who had been Zhivotovskii’s agent in London, and had joined Reilly in 1916. He was supposedly a loyal Czarist but was identified by American Military Intelligence as a Bolshevik.[268] Of further interest is that Alexander’s brother Gregory was business manager of Novyi Mir, the newspaper that employed Trotsky while he was in New York. Reilly and Weinstein were also associated with Benny Sverdlov, a Russian arms broker who was the brother of Yakov Sverdlov, the future Soviet commissar.

  These multiple connections between Trotsky and Reilly’s associates are significant here in that one of the accusations raised during the Moscow Trials was that the Trotskyists had had dealings with ‘British spy’ Sidney Reilly.

  The dealings of Sir William Wiseman, British Military Intelligence chief in the USA, and his deputy Norman Thwaites, with Reilly and associates were concealed even from other British agencies.[269] Wiseman had kept Trotsky under surveillance in New York. Trotsky secured a visa from the British consulate to proceed to Russia via Nova Scotia and Scandinavia. The Passport Control Section of the British Consulate was under the direction of Thwaites. Trotsky was to remark on his arrival in Russia about the helpful attitude of consular officials, despite his detention as a possible German agent by Canadian authorities at Nova Scotia. Trotsky had been able to pay for tickets aboard the Kristianiafiord for himself and his family, and also for a small entourage. What is additionally interesting about Wiseman is that he was closely associated with banking interests, and around 1921 joined Kuhn, Loeb and Co.[270] In 1955 Wiseman launched his own international bank with investments from Kuhn, Loeb & Co.; Rothschild; Rockefeller; Warburg firms, et al[271]. He was thus very close to the international banking dynasties throughout much of his life.

  To return to the Kristianiafiord however, on board with Trotsky and his entourage, first class, were Robert Jivotovsky (Zhivotovskii), likely to have been another Trotsky cousin; Israel Fundaminsky, whom Trotsky regarded as a British agent, and Andrei Kalpaschnikoff, who acted as translator when Trotsky was being questioned by British authorities at Nova Scotia. Kalpaschnikoff was closely associated with Vladimir Rogovine, who worked for Weinstein and Reilly. Kalpaschnikoff was also associated with John MacGregor Grant, a friend and business partner of both Reilly and Olof Aschberg. We can therefore see an intricate connection between British super-spy Reilly, and bankers such as Aschberg, who served as a conduit of funds to the Bolsheviks, and Zhivotovskii via Alexander Weinstein.

  When Trotsky and several of his entourage were arrested on 29 March at Nova Scotia and questioned by authorities regarding associations with Germany this could well have been an act to dispel any suspicions that Trotsky might be serving British interests. The British had the option of returning him to New York but allowed him to proceed to Russia. [272]

  The attitude of Wiseman towards the Bolsheviks once they had achieved nominal power was one of urging recognition, Wiseman cabling President Wilson’s principal adviser Col. Edward House on 1 May 1918 that the allies should intervene at the invitation of the Bolsheviks and help organise the Bolshevik army then fighting the White Armies during the Civil War.[273] This would accord with the aim of certain international bankers to secure recognition of the Bolshevik regime, as noted by both Gompers and Steed.

  The financial interests in the USA that formed around the Council on Foreign Relations (CFR), founded by presidential adviser Col. Edward M House as a foreign policy think tank of businessmen, politicians and intellectuals, were clamouring for recognition of the Soviets. The CFR issued a report on Bolshevik Russia in 1923, prompted by Lenin’s ‘New Economic Policy’. The report repudiated anti-Bolshevik attitudes and fears that Bolshevism would be spread to other countries (although it had already had a brief but bloody reign in Hungary and revolts in German). CFR historian Peter Grosse writes that the report stated that, the Bolsheviks were on their way to ‘sanity and sound business practices,’ the Council study group concluded, but the welcome to foreign concessionaires would likely be short-lived…. Thus, the Council experts recommended in March 1923 that American businessmen get into Russia while Lenin’s invitation held good…[274]

  Armand Hammer, head of Occidental Petroleum, son of the aforementioned Dr Julius Hammer who had been the Trotsky family’s host in New York, was a globetrotting plutocrat who mixed with the political and business elites of the world for decades. Hammer was in intimate contact with every Soviet leader from Lenin to Gorbachev — except for Stalin.[275] This omission is indicative of the rift that had occurred between the USSR and Western financial and industrial interests with the assumption of Stalin and the defeat of Trotsky. The CFR report on the USSR that advised American business to get in quick before the situation changed, was prescient. In 1921 Hammer was in the USSR sewing up business deals. Hammer met Trotsky, who asked him whether ‘financial circles in the USA regard Russia as a desirable field of investment?’ Trotsky continued:

  Inasmuch as Russia had its Revolution, capital was really safer there than anywhere else because, ‘whatever should happen abroad, the Soviet would adhere to any agreements it might make. Suppose one of your Americans invests money in Russia. When the Revolution comes to America, his property will of course be nationalised, but his agreement with us will hold good and he will thus be in a much more favourable position than the rest of his fellow capitalists.’[276]

  In contrast to the obliging Trotsky who was willing to guarantee the wealth and investments of Big Business, Hammer said of Stalin:

  I never met Stalin and I never had any dealing with him. However it was perfectly clear to me in 1930 that Stalin was not a man with whom you could do business. Stalin believed that the state was capable of running everything, without the support of foreign concessionaires and private enterprise. That was the main reason why I left Moscow: I could see that I would soon be unable to do business there...[277]

  As for Trotsky’s att
itude toward capitalist investment, were the charges brought against Trotsky et al during the Moscow Trials wholly cynical efforts to disparage and eliminate the perceived opposition to Stalin’s authority, or was there at least some factual basis to the charge that the Trotskyist-Left and Bukharin-Right blocs sought to ‘restore capitalism’ to the USSR? It is of interest in this respect to note that even according to one of Trotsky’s present-day exponents, David North, Trotsky ‘placed greater emphasis than any other Soviet leader of his time on the overriding importance of close economic links between the USSR and the world capitalist market’. North speaking to an Australian Trotskyist conference went on to state of Trotsky’s attitude:

  Soviet economic development, he insisted, required both access to the resources of the world market and the intelligent utilisation of the international division of labour. The development of economic planning required at minimum a knowledge of competitive advantage and efficiencies at the international level. It served no rational economic purpose for the USSR to make a virtue of frittering away its own limited resources in a vain effort to duplicate on Soviet soil what it could obtain at far less cost on the world capitalist market.... It is helpful to keep in mind that Trotsky belonged to a generation of Russian Marxists who had utilised the opportunity provided by revolutionary exile to carefully observe and study the workings of the capitalist system in the advanced countries. They were familiar not only with the oft-described ‘horrors’ of capitalism, but also with its positive achievements. ... Trotsky argued that a vital precondition for the development of the Soviet economy along socialist lines was its assimilation of the basic techniques of capitalist management, organisation, accounting and production.[278]