Robert Service - Spies and Commissars

Senator France returned to the US an enthusiast for full diplomatic recognition: ‘I found that the Russian Government was handling the situation in a statesmanlike way.’ 22His endorsement of Lenin and Trotsky was unconditional. He even swallowed the official Soviet account of the Kronstadt mutiny, pinning responsibility on Colonel Edward W. Ryan of the American Red Cross for having fomented trouble among the sailors. 23

One American entrepreneur who followed Vanderlip’s example and interested himself in business in Russia was Dr Armand Hammer of the Allied Drug and Chemical Corporation. In November 1921, Hammer signed a deal for an asbestos concession in the Urals. The terms involved him handing over 10 per cent of all output to the Soviet government. 24The US press quickly published its suspicions. Also involved in the business was Hammer’s father Julius, who by then was serving a sentence in New York State’s Sing Sing prison for carrying out an abortion. Julius Hammer was also known to have belonged to the Russian Soviet Information Bureau run by Martens and Nuorteva. Then it came out that other directors of Hammer’s corporation had no knowledge of any deal with the Soviet government and that the business had no interest in producing asbestos. 25Armand Hammer was a wily individual and his liaison with the Soviet leadership was to bring him riches in the years ahead. Nor did he confine himself to commerce, carrying out secret political errands for the Kremlin and virtually becoming its intelligence agent. His success in conducting private business in Russia under Bolshevik rule also convinced others that it was safe to sign contracts despite Herbert Hoover’s warnings. 26

Even Leslie Urquhart dropped his campaign against Sovnarkom. When he saw that he might never get his Russian property back under Soviet rule, he approached his old adversary Krasin in June 1921 to examine what kind of deal he too might be able to negotiate. 27In July he spoke to the annual general meeting of his Russo-Asiatic Consolidated Co. and recommended a change of heart:

My discussions with Mr Krassin [ sic ] have been of a practical, helpful, and very friendly nature. (Cheers.) I mention this because in ordinary circumstances it would have been very difficult for the representatives of two such antagonistic systems as those of Capitalism and Communism as applied to economics to find a basis of understanding. Capitalism stands for the right of property and economic freedom, while Communism is the absolute negation of both these principles. 28

Lenin and Krasin hoped that such positive endorsements would have a gold-rush effect on the minds of Western entrepreneurs. The Urquhart question was discussed repeatedly in the Politburo for over a year. Soviet leaders understood that if they could agree an appropriate arrangement with the Scottish mining magnate they could use it as the model for other concessions. 29

Herbert Hoover did not give up on Russia either. In summer 1921 he responded warmly to an appeal from the Russian novelist Maxim Gorki for famine relief in Russia and Ukraine. The American Relief Administration was closing its offices in Europe. Gorki asked Hoover to divert its activities eastwards rather than back across the Atlantic. Hoover said that he still needed basic assurances from Sovnarkom. American prisoners in Russia had to be released. The relief administrators from America had to be able to travel freely, organize the local committees and have control of the food brought on to Soviet soil. 30

The fly in the ointment was an allegation that the American Relief Administration had acted dishonestly in its earlier work in Europe. Captain T. C. C. Gregory, one of Hoover’s officials in 1919, claimed in the New York magazine World’s Wealth that the Administration had tried to subvert Béla Kun’s government in Hungary. Sovnarkom’s sympathizers in the US informed Moscow of the controversy, and Gregory’s article was reproduced in Soviet pamphlets. 31Trotsky feared that Hoover’s philanthropic mission might be the first manoeuvre in a campaign of Western military intervention. 32On a visit to Odessa he declared:

But here it must be remembered that we are not Hungary. We are not a young Soviet republic. We have been tempered in the struggle against counter-revolution. We have our own special organs, we have the Cheka. The Cheka isn’t loved, but we don’t love counter-revolution. And we say to Hoover: ‘There is risk in your enterprise.’ 33

Trotsky advised vigilance against Americans bearing gifts. Lenin agreed and wrote to Molotov, the Party Central Committee Secretary, that the American Relief Administration was not to be trusted. He recommended that Trotsky, Kamenev and Molotov should monitor the Administration’s activities on a daily basis. Indeed, he went further and wanted Hoover ‘punished’. In his opinion, Hoover and his subordinates were ‘scoundrels and liars’ who should be instantly deported or arrested if ever they meddled in Soviet internal affairs. 34

Hoover cursed Gregory whenever his name came up in conversation. 35He also issued an order for the strict avoidance of all interference in Russian politics. 36But this came too late to prevent embarrassment for him in America. Walter W. Liggett of Russian Famine Relief — a pro-Soviet organization — made play with what Gregory had written. Officials in the American Relief Administration had to defend themselves in the press; and George Barr Baker, who directed the operations in Russia, pointed out that Liggett’s political accusations brought no succour to the starving people who would die without food shipments from the US. 37

This had the desired effect and the Soviet leadership anyway soon came round to understanding what a wonderful offer was being made to them. Hoover was proposing to bring food and medicine for free, only asking Sovnarkom to pay for seedcorn. 38Trotsky told Louise Bryant:

The ARA organization which has rendered incalculable aid to the hungry masses of Russia was at the same time most naturally a highly skilful feeler projected by the ruling elements of America into the very depths of Russia. More than any other European country [ sic ] America has seen us as we really are; it remains for us to wait till the public opinion of the propertied classes of America will digest the collected data and will draw from it appropriate deductions. 39

This was hardly an unconditional endorsement; and it indicated that the Politburo had reasons other than humanitarian ones for accepting American assistance. The Politburo in fact failed to prioritize efforts of its own to alleviate the famine. Revenues from exports were being earmarked for industrial investment rather than grain purchases. The Soviet leaders talked as if they cared about the peasantry but the reality was that the Politburo was more interested in restoring Russian industrial and military power. If thousands of peasants died of starvation, so be it.

As the Soviet regime consolidated its rule, efforts by Russians to bring down the Bolsheviks were weakening. The Cheka efficiently liquidated several anti-communist groups it discovered in Petrograd and Moscow. The indefatigable Boris Savinkov had tried to link up with them; he had also tried to raise finance from the industrialist Alexei Putilov. This caused little bother to the Chekists, who imprisoned or executed the activists in Russia. 40On 13 June 1921 Savinkov as self-styled Chairman of the Russian Evacuation Committee liaised with Sidney Reilly in organizing an Anti-Bolshevik Congress in Warsaw — the meeting was small enough to be held in a private apartment on Marszalkowski Street. The discussion touched on the general international situation as well as the fate of the White movement, the position of the émigrés and the attitude of the Western Allies. 41But in October Savinkov was expelled from Warsaw by the Polish authorities under pressure from Moscow after the treaty of Riga. In this way the last great enthusiast for a crusade against Soviet Russia with active Russian participation was compelled to leave for western Europe. 42The Cheka prided itself on having eliminated all counter-revolutionary organizations from Soviet territory. The Kremlin’s reach now seemed to extend well beyond that territory.