US Mounts Major Global Anti-Money-Laundering Campaign


June 19, 2018

US Mounts Major Global Anti-Money-Laundering Campaign

by John Berthelsen@www.asiasentinel.com

The US Treasury Department has initiated a wide-ranging campaign against money laundering across the globe and is leaning on governments particularly in Cyprus, Beirut, Singapore and the Gulf states including Dubai in an attempt to stop the flow of billions of dollars that wash through the financial system every day from Russia, Iran and China.

Although planning for the campaign, headed by the department’s Marshall Billingslea, Assistant Secretary for Terrorist Financing and Financial Crime, began during the administration of former US President Barack Obama, the Trump administration is seeking aggressively to stop the flow of illegally gained money from the three countries into UK and French real estate, small German banks and the Gulf states.

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Paul Manafort is charged for money laundering.

It is uncertain how much of the new assertiveness can be traced to the US initiative. A spokesman for the Treasury Department said only that the department is “undertaking initiatives against money laundering in several different countries as part of an ongoing process.”

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However, banks from Cyprus to Singapore to the long-standing boltholes for hot cash in the Caribbean are being told to clean up their act or lose access to the Belgium-originated Society for Worldwide Interbank Financial Telecommunication – the SWIFT system, as it is known, through which almost all of the world’s financial transactions travel. Hundreds of billions of dollars a day move through the system, which enables the world’s financial institutions to send and receive secure information about financial transactions.  The SWIFT system has come to dominate the world’s movement of money.

Sources speculate that the US aggressiveness played a role in the demand last week by the UK government, also triggered by the poisoning of the former Russian spy Sergei Skripal and his daughter Yulia, that Russian oligarch Roman Abramovich, the owner of the Chelsea Football Club, explain the source of his vast wealth before he is granted a new UK visa. The UK government has launched a further crackdown on wealthy investors into the UK.  Offshore destinations of illicit funds in the Cayman Islands, Guernsey, Jersey, Gibraltar and Nassau are also under the microscope.

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Read this:  https://www.khmertimeskh.com/92067/

The amount of money spirited out of developing countries is astonishing. The Washington, DC-based NGO Global Financial Integrity, in a 2017 report, estimated that illicit currency flows in and out of the developing world amounted to at least 13.8 percent of total trade, or US$2 trillion, in 2014, the last year for which reliable data were available. An astonishing US$3.97 trillion in illicit funds left China between 2000 and 2011 alone, according to Global Financial Integrity.

Laundered money has been pouring out of Russia for the better part of two decades as oligarchs made rich by the Putin regime have looted a long string of government-linked companies, particularly in oil and gas. The money has gone into expensive homes along the Cote d’Azur in France as well as London, and New York and Beverly Hills in the US. At one point, realtors in New York said roughly 30 percent of condominium sales were going to buyers who listed international addresses including – notably – the family of the now-disgraced former Prime Minister of Malaysia, Najib Razak, as well as Viktor Khrapunov, the former mayor of Almaty, Kazakhstan’s capital city, who has been accused of stealing hundreds of millions of dollars from the country.

With the Trump administration on a rampage against Iran, US authorities are seeking to shut down Iranian funds flowing into Dubai, Bahrain, Kuwait and Qatar as well as banks in Asia including Woori Bank and Industrial Bank of South Korea, according to Bloomberg News Service, which cited documents and testimony on how Iran siphoned US$1 billion from escrow account funds to evade US-imposed sanctions. Other banks that have been hit with compliance lapses included the Agricultural Bank of China, one of the country’s Big Four banks as well as

Songhua Bank of South Korea and Mega International Commercial Bank of Taiwan, according to Bloomberg.

The campaign to lean on Middle Eastern banks could well cause a liquidity crisis in the region including Dubai and Qatar, two of the region’s biggest banking centers, as well as in Lebanon, equally with Cyprus a repository of laundered funds that have flown into financing of terrorist activities by Hezbollah and other groups.  One source speculated that uncertainty over a liquidity crisis was spurring unsettled emerging markets over the past couple of months, with Argentina again facing crisis.

The problems for Cyprus are enormous.  Stelios Orphanides, writing in the Cyprus Business Mail on May 29, said that there is “increasing concern in the ranks of professionals and entrepreneurs in Cyprus over the impact of stricter anti-money laundering and terrorist financing practices being applied, amid fears that recent US pressure on the islandʼs financial and business service providers to take US sanctions more seriously into account, may have a transformative effect on the economy.”

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The disgraced former Prime Minister Najib Razak and his wife Rosmah Mansor are now under investigation

The problems are exemplified by the notorious FBME Bank, headquartered in Tanzania although at least 90 percent of its business was conducted in Nicosia before it was shut down by the US Treasury Department’s Financial Crimes Enforcement Network, or FinCEN last October after a three-year campaign. The bank, owned by Fadi and Ayoub-Farid Saab, was the repository of funds from such notorious characters as Dmitry Klyuev and Andrei Pavolov, key suspects in the looting of Hermitage Capital, once controlled by William Browder before he was driven out of Russia. Dozens of outlaw organizations allegedly banked at FBME, although the Saabs continue to deny any wrongdoing.

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The Hermitage looting and its aftermath resulted in the so-called Magnitsky Act, passed in the US Congress after Sergei Magnitsky, an associate of Browder’s, was beaten to death in a Russian jail while he was attempting to investigate the theft. As a result, a list of top Russian officials were barred from transacting financial business through the SWIFT system.  Natalia V. Veselnitskaya, the Kremlin-backed lawyer who met with Donald Trump Jr. and others in Trump Tower in June of 2016, was attempting to get the Magnitsky Act reversed. That meeting is now a subject of the investigation by Robert Mueller into Russian attempts to subvert the 2016 election that brought Trump to power.

FBME was the subject of a 2016 series of stories by Asia Sentinel that described the alleged laundering of millions of US dollars out of the Indonesia-based Bank Mutiara, formerly known as Bank Century, which was looted by its owner, Robert Tantular, and others during the global financial crisis of 2009.  Bank Mutiara was taken over by the Tokyo-based J Trust financial conglomerate, heavily backed by Nobuyoshi Fujisawa.  J Trust and the Saabs have threatened multiple lawsuits against Asia Sentinel over the stories. Asia Sentinel stands by its reporting.

Another of the primary targets of the campaign is Singapore, which by one report has the equivalent of US$368 billion from Indonesia in its banks – 40 percent of the island republic’s total bank deposits. In one astounding heist, more than  US$13.5 billion was looted from the Indonesian central bank’s recapitalization lifeline to 48 ailing banks during the 1997-1998 Asian financial crisis. As the government poured money into the banks in the attempt to save them, the bankers were stealing it and moving the money to Singapore.

According to a 2007 Asia Sentinel story, some 18,000 Indonesians described as “rich” live in Singapore. They were said to be worth a combined total of US$87 billion, more than Indonesia’s entire annual government budget at the time.

Indonesia’s Corruption Eradication Commission is said to be investigating the movement of as much as US$1.5 billion from Bank J Trust, the former Bank Mutiara, which was sold to the Japanese financial services corporation J Trust Group. J Trust is heavily backed by Taiyo Pacific Partners, the Washington State-based investment fund whose chief investment officer was Wilbur Ross, now President Donald Trump’s commerce secretary. The Indonesian bank is believed to be connected to some of the country’s most powerful politicians. KPK targets are said to ionclude Boediono, the former central bank governor and vice-presidential running mate of former President Susilo Bambang Yudhoyono.

Others are said to be Rafat Ali Rizvi, a British citizen who at one point faced the possibility of a death penalty for helping to loot Bank Century, the carcass from which Bank Mutiara was fashioned, and Hesham Al Warraq, a Saudi national who was also a major shareholder in the bank. Only Robert Tantular, the president of Bank Century, has been jailed.

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Other countries’ leaders have used Singapore as a piggy bank as well, including Myanmar, whose generals moved millions of stolen funds out of their country into Singapore banks. The Singaporeans were so grateful that in 2009, they named an orchid planted in their spectacular Singapore Botanic Garden for Thein Sein when he paid a visit.  More recently, Singapore cracked down on Swiss banks BSI Bank and Falcon Private Bank and withdrawing their licenses in 2016 for acting as conduits for billions of dollars funneled from the scandal-ridden 1Malaysia Development Bhd. Two other banks – the Singapore-based DBS and the major Swiss bank UBS were hit with heavy fines.

A Tribute to Krishen Jit–The Doyen of Malaysian Theater


June 1, 2018

A Tribute to Krishen Jit–The Doyen of Malaysian Theater

by Johan Jaafar

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“Krishen was the best drama critic the country has ever known. To label him just a “critic” is almost a misdemeanour. He was in fact a keen observer, a chronicler and a commentator.”–Dato’ Johan Jaafar

Marion D’Cruz was among friends last Saturday. They came from all over to celebrate the publication of a book on the late Krishen Jit. That morning, Five Arts Centre was the venue where friends of Krishen and Marion converged reminiscing about the man they knew well.

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The book Excavations, Interrogations, Krishen Jit & Contemporary Malaysian Theatre is one of a kind. It is basically a compilation of essays by 14 writers of different backgrounds and disciplines on the life and works of Krishen.

It stems from a conference held in January 2015. With an illuminating introduction by the editors (Charlene Rajendran, Ken Takiguchi and Carmen Nge), the collection unveils the various layers of Krishen’s works and his personality.

It is like peeling the layers one by one, “excavating” if you like, and with lots of critical studies and analysis (thus the “interrogations”), Krishen surfaces but not all. There are many more layers to be uncovered for Krishen was no ordinary bloke, nor his works easy to be “appropriated.”

For many of us who have known Krishen, he was simple and forthright as a person. But the complexity lies in his works and especially his writings.

I have edited some of his essays in Bahasa Malaysia in Dewan Sastera, the literary journal published by Dewan Bahasa dan Pustaka (DBP). I have collaborated with him in a few essays.

I have been following his columns in the New Straits Times for years. He has written about me and my works, some I liked, others I didn’t and I told him so.

Krishen was the best drama critic the country has ever known. To label him just a “critic” is almost a misdemeanour. He was in fact a keen observer, a chronicler and a commentator.

To many who have acted under his direction or listened to his talks, he was a guru and mentor. He can be exceptionally harsh, even brutally critical in his writings.

But theatre activists of his generation took note and paid attention. Being reviewed by Krishen was in itself an honour.

For 22 years (1972 to 1994) his nom de guerre, “Utih”, was writing for the New Straits Times. When he started the column in 1972, a lot of things were happening on the Malaysian stage.

Theatre in Bahasa Malaysia was alighted with new works by the likes of Syed Alwi, Nordin Hassan and Dinsman. Theatre in English, once the flagbearer of excellence suffered because many of its stalwarts were migrating to theatre in Bahasa Malaysia.

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Datuk Baha Zain joined The University of Malaya in 1960 and was my Second Residential College (Kolej Tuanku Bahiyah) mate. –Din Merican

In fact Krishen was the bridge between the two, as argued by Literary Laureate, Datuk Baharuddin Zainal, another of his close friend.

Two years later, I joined the University of Malaya and was part of the vibrant student and theatre activism in the campus. Hatta Azad Khan was at the Universiti Sains Malaysia (USM) and Mana Sikana was at the Universiti Kebangsaan Malaysia (UKM).

All three of us were, together with Nordin and Dinsman according to Krishen and other critics, the pioneers of the “absurd theatre” in the country.

I knew Krishen through his writings as a student. He was a lecturer at the History Department when I joined the UM.

When I joined DBP in 1977, I had already befriended Krishen. In 1979, he was entrusted to organise a theatre festival for the Malay Studies Department of the UM.

It was to be called “Festival Teater Jabatan Pengajian Melayu” in conjuction with the 25th year of the department’s existence.

He selected seven plays to represent the various stages of contemporary Malay theatre. My play, “Angin Kering” was chosen to represent the experimental era of the 1970s.

I was to direct the “oldest” play, a transitional play (sandiwara) entitled “Si Bongkok Tanjung Puteri” written by Shaharom Husain. It was a tough assignment for Krishen.

I was given the task to assist him by my employer DBP. For many months we worked on the project. We even collaborated in an essay on Shaharom Hussain for the March issue of Dewan Sastera in 1979.

On his own he wrote a two-part essay as a retrospective of Malay theatre in the same edition and in the following month.

I got to know Krishen up, close and personal. He was a voracious eater, I can vouch that. He enjoyed being in my car, for I drove fast and perhaps a little reckless back then.

“I feel safe in a fast but cheap car!” he told everyone who cared to listen to his agony. He was combing details of the works of Shaharom relentlessly.

We met Shaharom a few times and marvelled at his collection of books and newspaper cuttings. As a historian Krishen probed the history of the genre, sandiwara.

As a theatre enthusiast he engrossed himself with the workings of the already dying genre. We met actors and stage hands who were involved in the first production of “Si Bongkok Tanjung Puteri.”

It was an enlightening experience working with Krishen. In 1992, I joined the Utusan Melayu Group as the Chief Editor.

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Datin Marion D’Cruz, a Theater Icon in her own right, was a tower of strength behind my University of Malaya contemporary, Krishen Jit. I remember Krishen as an intellectual.–Din Merican

 

I became a restless spectator for years, for I was busy as a journalist and later in the corporate world. I heard Krishen started Five Arts Centre with his wife Marion in 1984. We met occasionally over teh tarik when time permitted. I was abroad when I heard of his demise.

This book is written with passion and understanding in trying to excavate and interrogate his body of works, his disciples, his work ethics and more so his contribution to the world of theatre.

He was a perfectionist, no doubt. And he was a man driven by his obsession to raise the bar of Malaysian theatre. He was never selfish, but uncompromising yes, and he was perfecting his art all the time.

Many who have worked with him understand his demanding pace and exactitude. He expected the best. He was lucky to have Marion and some of the best and dedicated stage people at Five Arts Centre.

This publication is a fitting tribute to Krishen Jit.

 

 Johan Jaaffar has just published a book, Jejak Seni, about his 50-year incredible journey as an actor, playwright, director and later chairman of the country’s largest media company. He was a journalist and a former chairman of DBP.

https://www.thestar.com.my

The Unending Journey towards being Malaysian


May 24, 2018

by Zairil Khir Johari

The Unending Journey towards being Malaysian

...in Malaysia today there seems to be a renewed prejudice towards migrant communities, even those who have settled for generations and should no longer be considered anything other than part of Malaysian society. Instead of treating our fellow citizens as one of our own, there are efforts to ban Malay words from being used by non-Malays, as well as the unconstitutional suppression of rights of non-Malays to religious expression.–Zairil Khir Johari

Nearly 1,400 years ago, the Prophet Muhammad and his small band of followers left Mecca, where the fledgling Muslim community was increasingly persecuted and oppressed, for Yathrib (later renamed Medina), a city 320km to the north.

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God Help Malaysia if these guys are our warriors inherited from the Najib Era

This journey has come to be known as the Hijrah, an epochal event that not only marks the beginning of the Muslim calendar, but also the consolidation of the first Muslim community. It was from the success of this migration that the small community was able to grow and blossom into what it is today – representatives of the world’s second largest and fastest-growing religion.

Taken literally, hijrah means migration, the physical movement of people from one place to another. But hijrah also carries a spiritual and existential meaning, connoting a search for something better – be it to further one’s career, to develop one’s talent, to seek a better life and, in some cases, even for something as basic as survival. In other words, hijrah can be taken to mean a journey towards betterment, whether personal or collective.

Hijrah is not a concept removed from our own society and civilisation. South-East Asia is a maritime region consisting of 25,000 islands and with a peninsula peppered by vast riverine networks, and so our forefathers were constantly on the move. If today’s world is said to be borderless in the metaphorical sense, the Malay Archipelago could be said to be one in the literal sense.

The Inclusive Malay World

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The 1Malaysia Bugis Warrior

In fact, it would not be inaccurate to say that society back then had no historical need or cognisance of borders. This conclusion can be gleaned from studying the literary manuscripts of yore, such as Hikayat Hang Tuah, Hikayat Merong Mahawangsa, the Malay Annals and Misa Melayu, among others. There may have been a complex and mature network of international trade, and along with it constant interaction with sailors and merchants from all corners of the world, but nowhere in the writings is there a reference to the notion of orang asing, or foreigners – at least not in the way we understand it today.

Instead, the term used to describe migrants or people who had journeyed from other territories was orang dagang. While one may ascribe this expression to mean merchants, the classic texts actually use the term saudagar for that purpose. Thus, orang dagang refers not to transient traders, but travellers who, having settled in a new territory, assimilate themselves by contributing their work, energy and loyalty to the collective social and economic development of their new community. In short, migrants were very much embraced as part of society and not seen as outsiders or the proverbial “other”.

This concept has its modern parallel in what we would describe today as citizenship, albeit in a more progressive and encompassing way. A citizen after all is someone who, in addition to being an inhabitant of a particular state, is also a legally recognised member of that state and therefore subject to whatever incumbent rights, duties and obligations that are provided for. But as modern states did not exist then, recognition of the orang dagang was less legalistic and not so narrowly defined. Rather, they were simply accepted as productive members of the community.

Indeed, there were also no real political borders. While there did exist the concept of hamba raja, which refers to a ruler’s liege subjects, it was not a permanent relationship because people were free to shift their loyalties to another ruler, depending on where they happened to be. Kingdoms had no defined borders and a ruler’s territory only stretched as far as his influence.

Now, there was indeed a term used to describe outsiders, but it did not refer to foreign travellers or traders who offered their wares and services – these as we have established were the orang dagang. Instead, if we are to use Hikayat Hang Tuah as an example, the term orang luar is used in every instance to refer to invaders, namely the Portuguese who were also called the Ferringi. These orang luar were seen as arrogant and unwilling to honour local culture and customs. They were therefore cast in negative light, as the following excerpt shows:

“Seketika juga maka Feringgi itu pun habislah; yang ada hidup semuanya habis lari terbit keluar kota. Maka diturut bunuh oleh segala orang luar itu, habis mati semuanya Feringgi itu.” Hikayat Hang Tuah Tuah, 524:38

The passage above speaks of the defeat of the Ferringi (Portuguese), with survivors having fled the city of Malacca. The remaining orang luar (outsiders), who were the Portuguese, were then wiped out.

A Region of Migrants

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It is also interesting to note that in the Malay language, people are central to the concept of territory. In fact, the Malay term for region or territory, i.e. rantau, includes elements of migration and mobility. When rantau is conjugated as a verb, merantau, it takes on the meaning of traveling. Hence, the word rantau refers to both geography and the movement of people – something that has no English equivalent.

Although the concept and practice of merantau is often said to be particular to the Minangkabau community of West Sumatra, in truth it was normal practice throughout the entire Malay Archipelago, as we have already explored through the etymology of the term orang dagang.

It should come then as no surprise that the establishment of the famed Malacca Sultanate had its origins in the migration of asylum seekers. If we recall our history lessons, the founder of Malacca, Parameswara, was in fact an exiled prince of Palembang who after failing to establish a safe haven in Temasek (now known as Singapore) had no choice but to merantau further to finally settle in Malacca.

 

Learning from History

History is full of lessons for us to draw from. To be sure, circumstances then and now differ vastly, and the borderless societies that fabled characters such as Hang Tuah and Parameswara lived in have long been replaced by modern nation-states with clear borders and complex legal regimes.

However, by deconstructing some of these key concepts, we find that the ancient Malay world was in fact a very inclusive one – a far cry from the narrow and shallow narratives that pervade our country today. Migrants or orang dagang were welcomed and accepted, so long as they chose to contribute to the society. The only people who were considered to be real outsiders were aggressive invaders who sought to impose foreign values at gunpoint.

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Gurney Drive, Penang, where pendatangs hang out

Unfortunately, in Malaysia today there seems to be a renewed prejudice towards migrant communities, even those who have settled for generations and should no longer be considered anything other than part of Malaysian society. Instead of treating our fellow citizens as one of our own, there are efforts to ban Malay words from being used by non-Malays, as well as the unconstitutional suppression of rights of non-Malays to religious expression.

It must be stressed that these bigoted actions are not only wrong but also antithetical to Malay culture. In fact, it goes against the very grain of Malay history, which paints the Malay world to be a migrant one, where even the Malay identity itself is a very fluid concept. According to great scholars of Malay studies such as Anthony Milner, Malayness is not defined so much by descent or bloodline than it is by culture and civilisation. In other words, Malayness is not an ethnicity but a culture, and a very liberal and accommodative one at that.

A Never-ending Journey for Improvement

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In the year 622 AD, the original Muslims who followed the Prophet Muhammad on the Hijrah did so to seek greener pastures. They did so for their own survival, and for better opportunities. But the Hijrah did not end when they settled in Medina. In fact, it can be argued that it has not really ended – that it is a continuous journey, a migration in search of improvement, be it physical or spiritual.

And so the journey goes on for us here in Malaysia. In keeping with the traditions of our forefathers, we should continue to derive strength from the ever-evolving diversity of our society. This fact should be celebrated and not exploited as a cause for division. Whatever our roots, whether we have indigenous ancestry or whether we are descended from migrants or orang dagang, we are all Malaysians.

Zairil Khir Johari is Senior Fellow of Penang Institute.

 

 

Book Review: The Nazi-Fascist New Order for European Culture


November 8, 2017

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The Cultural Axis

by Robert O.Paxton

 http://www.nybooks.com/articles/2017/10/26/nazi-fascist-cultural-axis/
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Benjamin G. Martin
Harvard University Press, 370 pp., $39.95

 

“When I hear the word ‘culture,’ I reach for my revolver.” This philistine wisecrack is often attributed to Air Marshal Hermann Goering, or some other Nazi notable. Benjamin Martin sets us straight on its source: the 1933 play Schlageter by the Nazi Party member Hanns Johst, in which a character says: “When I hear the word ‘culture’ I release the catch on my Browning.”

Martin’s illuminating book The Nazi-Fascist New Order for European Culture shows how badly astray this famous quip leads us: cultural concerns were in fact vital to the imperial projects of Hitler and Mussolini. We do not normally associate their violent and aggressive regimes with “soft power.” But the two dictators were would-be intellectuals—Adolf Hitler a failed painter inebriated with the music of Wagner, and Mussolini a onetime schoolteacher and novelist. Unlike American philistines, they thought literature and the arts were important, and wanted to weaponize them as adjuncts to military conquest. Martin’s book adds a significant dimension to our understanding of how the Nazi and Fascist empires were constructed.

German power and success gave the Nazi case particular salience. The special meaning of Kultur in Germans’ evaluation of themselves is an important part of the story. According to a famous essay by Norbert Elias, the meaning of Kultur for Germans is hardly comprehensible without reference to a particular historical development.*Kultur, he explains (along with Bildung, or education), denoted in pre-unification Germany those qualities that the intellectuals and professionals of the small, isolated German middle class claimed for themselves in response to the disdain of the minor German nobles who employed them: intellectual achievement, of course, but also simple virtues like authenticity, honesty, and sincerity.

German courtiers, by contrast, according to the possessors of Kultur, had acquired “civilization” from their French tutors: manners, social polish, the cultivation of appearances. As the German middle class asserted itself in the nineteenth century, the particular virtues of Kultur became an important ingredient in national self-definition. The inferior values of “civilization” were no longer attributed to an erstwhile French-educated German nobility, but to the French themselves and to the West in general.

By 1914, the contrast between Kultur and Zivilisation had taken on a more aggressively nationalist tone. During World War I German patriotic propaganda vaunted the superiority of Germany’s supposedly rooted, organic, spiritual Kultur over the allegedly effete, shallow, cosmopolitan, materialist, Jewish-influenced “civilization” of Western Europe. Martin’s book shows how vigorously the Nazis applied this traditional construct. Hitler invested considerable money and time in the 1930s, and even after World War II began, in an effort to take over Europe’s cultural organizations and turn them into instruments of German power. These projects had some initial success. In the end, however, they collapsed along with the military power they were designed to reinforce.

In a parallel and even less enduring effort, Mussolini’s Fascist regime tried to establish the primacy of Italian culture under the umbrella of Hitler’s conquests. Mussolini’s cultural executives, such as his Minister for Press and Propaganda Dino Alfieri, asserted that the Mediterranean and classical tradition of Italy was the proper foundation of a European “cultural Axis.” Having thrown in their lot definitively with Hitler, the Italians could hope to be the contemporary Greece to Germany’s new Rome, but the Nazi leaders never entertained the slightest doubt that German Kultur was the foundation stone of the “new cultural order” for Europe.

An extensive network of international cultural organizations already existed before Hitler came to power. They had been greatly expanded after 1919 in the orbit of the League of Nations. Hitler saw them cynically as instruments of French cultural influence and as a reinforcement of Allied hegemony. Just as he planned to overthrow the political system set up by the victorious Allies after World War I, he was determined to overthrow the democratic cultural network. He intended to replace it with his own organizations headquartered in Berlin and dedicated to spreading throughout Europe the Nazi conception of the unique racial character of each national culture.

The word “international” acquired a special meaning in its usage by Nazi and Fascist cultural officials. The Allies’ international cultural associations had rested on a set of liberal democratic assumptions: that works of art and literature should be evaluated by universal standards of quality; that masterpieces were the product of individual creativity; and that no national culture deserved hegemony over another. The Nazi and Fascist dictators reversed all of these assumptions. They measured the merit of works of art and literature by their significance within unique national cultural traditions. Masterpieces, in their view, grew out of community roots. And national cultural traditions were ranked in a natural hierarchy, with the German and Italian ones at the top.

Hitler concerned himself with cultural matters as soon as he became chancellor of Germany in January 1933. He purged the German section of PEN International of “leftist” and Jewish writers. When PEN International protested, Hitler dissolved the German section altogether at the end of 1933. During this dispute the president of the Italian PEN club, the provocateur Futurist intellectual Filippo Tommaso Marinetti, supported the German position. Thus from the earliest days, Nazi cultural projects proved capable of enlisting foreign support.

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Hitler made his ambitions for German culture clear from the beginning. At a Nazi Party Congress on Culture in September 1933 he promised that the Nazi state would intervene more actively in cultural matters than the Weimar Republic had done, in order to make art an expression of the “hereditary racial bloodstock” and to transform artists into defenders of the German Volk.

Hitler left the daily tasks of his bid to reorganize European culture under German dominance to his propaganda minister, Joseph Goebbels. Goebbels—another would-be intellectual and a failed novelist—threw his frenetic energy, his ideological passions, and a generous budget into spreading abroad the Nazis’ racialist and nationalist approach to the arts.

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Disaster strikes when men do nothing about tyranny and abuses of power

Cinema was the Nazi leaders’ first cultural target. Goebbels and Hitler were as obsessed with movies as American adolescents are today with social media. Convinced that cinema was their era’s main engine of cultural influence, they tried to control filmmaking as far as their influence could reach. At the Venice Film Festival in 1935, at Goebbels’s instigation, delegates of twelve nations agreed to create an International Film Chamber (IFC) designed to establish a continent-wide system of film exchange and regulation. As the possessor of the continent’s largest and most powerful film industry, Germany became the dominant force in the IFC. Fascist Italy, however, assured for itself a strong second position by exploiting its considerable film-producing assets, such as the technologically advanced studios of Cinecittà and the Venice Film Festival, which continued to be the main venue of IFC activities.

The IFC was a genuinely European organization, and even had a French president in 1937. Its inspiration had been German, however, and its organizational form was less international than something Martin usefully calls “inter-national,” a federation of national arts organizations on the model of the Reich Film Chamber, which Goebbels had formed in July 1933 on corporatist principles. Corporatist doctrine required that capital, management, and labor abandon their separate advocacy groups and sit down together to find their common interests, alongside state representatives. Corporatism smothered internal conflict in film production and gave determining influence to the state rather than to the market.

Each IFC member nation was expected to have a national film organization similar to the Reich Film Chamber. Within Germany the Reich Film Chamber became the instrument through which the Nazi regime controlled an increasingly concentrated German film industry purged of Jews. In 1942, the largest production companies, such as UFA and Tobis, were merged into one state-controlled entity.

Benjamin Martin shows most interestingly that the Nazi and Fascist “inter-national” organizations had authentic appeal to some European intellectuals and arts executives who were not themselves Nazis or Fascists. These organizations promised material as well as intellectual advantages. The IFC provided access to a market of continental dimensions, a feature particularly attractive to European filmmakers who all suffered from the limited size of their national audiences. It also simplified thorny problems of cross-boundary payments and differing copyright laws.

The main role of the IFC was to combat the Hollywood menace. The dominance of American films had troubled European filmmakers and intellectuals from the beginning. By 1928 54 percent of all films shown in France, 72 percent in Britain, and 80 percent in Italy came from Hollywood. Already in the 1920s most European countries had imposed quotas on American films or limited them by reciprocity agreements. The respite given to European films by the arrival of “talkies” in 1929 had been brief, as expert dubbing soon allowed Hollywood films to predominate again. Many Europeans endorsed the IFC position that American films were trivial entertainment designed to make money, while European films were artistic creations that deserved protection. Although the British and Dutch refused to join, IFC membership extended by 1935 “from Belgium to Hungary [and] revealed a Europe,” according to Martin, “ready to accept German leadership.”

German military conquests early in World War II enabled the Nazis to tighten even further their control of European cinema. In August 1940 they banned American films altogether in the territories they occupied. A similar ban within Germany itself followed in 1941. The Fascist regime had already reduced the number of Hollywood films shown in Italy by the “Alfieri law” of 1938 that created a state monopoly with sole authority to buy and show foreign films (Hollywood’s four biggest studios withdrew from the Italian market in response). The unintended result of such protectionism was to give Hollywood films the allure of forbidden fruit and to prepare their triumphant return to Europe in 1945. In Jean-Pierre Melville’s Resistance film Army of Shadows, two underground leaders are smuggled out of France to consult personally with Free French leader General Charles de Gaulle. The first thing they want to do in London, after eating a filling meal, is to go see Gone with the Wind.

Beyond cinema, the Nazis meant to reorganize the whole range of German cultural activities along corporatist lines. The Reich Chamber of Culture contained subgroups for music, literature, theater, press, radio, and so on. The Nazis soon tried to extend the reach of these cultural corporations to the entire European continent, according to their geopolitical vision of a world divided into blocs, or “great spaces,” continent-scaled, self-sufficient economic systems aligned with the appropriate cultural associations protected by authoritarian states. Their European “New Order” was meant to be cultural as well as economic and political.

Music was a realm that Germans felt particularly qualified to dominate. But first the German national musical scene had to be properly organized. In November 1933 Goebbels offered Richard Strauss the leadership of a Reich Music Chamber. In June 1934 Strauss invited composers from thirteen countries to the annual meeting of the German Music Association in Wiesbaden. The delegates created a Permanent Council for International Cooperation among Composers.

The Permanent Council grew by exploiting an aesthetic rift in European musical culture. Since the early twentieth century a generation of gifted innovators had created new musical languages, such as Arnold Schoenberg’s twelve-tone technique. Organized in the influential International Society for Contemporary Music, the avant-garde had come to have a powerful influence on the European musical scene. Traditional composers resented the modernists’ celebrity, and the Nazis (Mussolini remained more open to modernism) attracted conservative support by attacking the avant-garde as internationalist, rootless, and Jewish. In a famous speech in December 1934 Goebbels derided “an atonal noise maker,” by whom he was generally assumed to mean the composer Paul Hindemith (who was not Jewish). Goebbels organized in Düsseldorf in 1938 a presentation of “degenerate music” following the better-known 1937 exhibition of “degenerate art.”

Most of the composers who were affiliated with the Permanent Council, advocates generally of a national, rural, or folklorist approach to musical composition, are forgotten today. The council did draw some prestigious composers who were not really Nazi or Fascist, like Jean Sibelius and Albert Roussel. The presence of Richard Strauss, a onetime moderate modernist who resented the decline of his fame, gave legitimacy to the IFC. He continued to preside over it even after he had been removed from the Reich Music Chamber in 1935 in a dispute over his continued association with Stefan Zweig, who had written the libretto for his opera Die schweigsame Frau.

The Permanent Council’s attention to composers’ material problems was an additional attraction. These included inconsistencies among different national copyright codes, problems of international royalties payments, and droit moral—the right claimed by authors and composers to assure that their work was not presented in a deformed way or with offensive associations. Thus the Permanent Council was able to fill a busy schedule of concerts in various European capitals through the late 1930s.

The Nazi organization of European literature came later, but by similar tactics: a federation of national corporative bodies. German authors already gathered annually in Weimar. In connection with the 1941 Weimar authors’ meeting, Goebbels invited fifty foreign writers to visit the city of Goethe and Schiller at the expense of his Propaganda Ministry (an indulgence that caused many of them trouble after the war). The following October authors from fifteen European countries met at Weimar to found a European Writers’ Union.

As with music, the Nazis were able to attract writers outside the immediate orbit of the Nazi and Fascist parties by endorsing conservative literary styles against modernism, by mitigating copyright and royalty problems, and by offering sybaritic visits to Germany and public attention. Some significant figures joined, such as the Norwegian novelist Knut Hamsun, winner of the 1920 Nobel Prize in literature, but most were minor writers who employed themes of nationalism, folk traditions, or the resonance of landscape. Martin unravels these multinational connections with clarity and precision, aided by research and reading in at least five European languages.

Painting and sculpture, curiously, do not figure in this account of the cultural fields that the Nazis and Fascists tried to reorganize “inter-nationally,” perhaps because they had not previously been organized on liberal democratic lines. Within Germany, of course, modernists could not show or sell their work, but this was not the case in occupied Paris, where Picasso and Kandinsky painted quietly in private and Jean Bazaine organized an exhibition with fellow modernists in 1941. Nazi cultural officials thought “degenerate” art appropriate for France.

Hitler made effective use of some German intellectuals’ resentment at being shut out of international cultural institutions after 1919. Martin seems to accept this sense of victimhood as legitimate, but it is difficult to square with the prestige of German cinema, music, and science in the 1920s.

Science would have made an interesting case study, a contrary one. Germany dominated the world of science before 1933. Germans won fifteen Nobel Prizes in physics, chemistry, and physiology or medicine between 1918 and 1933, more than any other nation. Far from capitalizing on this major soft power asset, Hitler destroyed it by imposing ideological conformity and expelling Jewish scientists such as the talented nuclear physicist Lise Meitner. The soft power of science is fragile, as Americans may yet find out.

Without specifically setting out to do so, Martin casts interesting light on soft power and the conditions for its success. Nazis and Fascists turned out to be poor at it. Inherent contradictions undermined their attempts at cultural dominance. Dictatorial methods clashed with literary and artistic independence. Nazis had burned books, and both Germany and Italy had excluded prominent writers and artists. Their evident desire to put their own cultures first undermined their lip service to “inter-national” cooperation.

Within the “cultural Axis,” the relationship between Germany and Italy was strained. Martin was right to include the Italian case, even if Mussolini’s parallel bid for cultural power, like his parallel war, accomplished little. Hitler always accepted that Mussolini was his forerunner—the Duce’s bust stood on his desk—and while always ready to try to upstage him never let him drop. And so his “inter-national” organizations often attributed a strong second role to the Italians. But the Italians worked from within to subvert German claims to primacy.

A major obstacle to the success of Axis “inter-national” cultural organizations—especially with the Nazis—was their ideological narrowness. While an alignment with militant antimodernism attracted conservative writers and artists, these generated little excitement compared to the modernists. Hitler’s efforts to stem the mass appeal of Hollywood films and jazz only made them (as Martin suggests) more seductive and, in a final irony, prepared for the triumph of American music, jeans, and film in the postwar world by trying to make them taboo.

Soft power seems to have thrived best without direct military occupation. The global influence of French language, manners, and ideas began in the seventeenth century, and depended little on the conquests of Louis XIV and Napoleon. The ascendancy of the English language began with the commercial and financial power of the City of London in the nineteenth century, and owed little to conquest or colonial occupation, though those helped. The soft power of the United States, the most successful yet, spread far beyond direct American military presence. It prospered by appealing to mass popular tastes in music, dress, and entertainment, while the “cultural axis” aimed at conventional forms of high culture. The United States government did not ignore high culture—consider the activities of the United States Information Agency and the Congress for Cultural Freedom after World War II. But American soft power thrived mostly through the profit motive and by offering popular entertainment to the young.

Far from reaching for a revolver to deal with “culture,” Hitler (with Mussolini struggling behind) tried with at least some initial success to use international cultural organizations to enhance his military power. This story has been approached mostly, if at all, in individual national terms, but Martin has brought the whole Axis cultural project admirably into focus.

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    Norbert Elias, “Sociogenesis of the Antithesis Between Kultur and Zivilisation in German Usage,” in The Civilizing Process: Sociogenetic and Psychogenetic Investigations, revised edition (Blackwell, 2000).