MIA > Archive > Tim Hector
Fan the Flame, Outlet, 25 July 1997..
Online here https://web.archive.org/web/20120416011318/http://www.candw.ag/~jardinea/fanflame.htm.
Transcribed by Christian Høgsbjerg.
Marked up by Einde O’Callaghan for the Marxists’ Internet Archive.
One can be facile in the writing of past events. Because one is wise after the fact. We can have both the foresight of the participants and the hindsight of the historian, without any of the short-sightedness of the central figures the events we relate.
Federalism, by definition, carried within it the tensions, increasing tensions, between Central government and individual Unit governments. In those tensions resentments accumulate and become an independent factor, with a life of their own.
Then of course, there are the overriding economic factors, which affect both base and superstructure and produce new clashes of historical forces. It is this we will now pursue – the economic as it manifests itself in politics.
In that pursuit we are going to see how too diametrically opposed personalities, Norman Manley and Alexander Bustamante, the one a Fabian socialist, the other a conservative, even parochial populist, became identical in interests and yet remained opposed. The explosion would come in Jamaica, but it would reverberate throughout, with more than the force of Soufriere in Montserrat.
Parochialism and Federalism would clash just 9 months after the Federation began, in a manner of speaking, just after gestation and birth.
In 1957 the Jamaica Government then headed by Norman Manley who was also Minister of Development began discussions with St. Hilaire’s Jamaica Oil and Chemical Ltd with a view to establishing a refinery in Jamaica.
As was pointed out at the beginning of this series, the movement of Capital in the United States, which after the War became the centre of capitalist development, had meant the concentration of Capital in fewer and fewer hands. Hence the private company gave way to the Corporation. It was the triumph, the uninhibited triumph, of a society which held that economic growth depended on private enterprise, in competition. However the competition eliminated competitors, in its relentless movement and growth. Which, in turn, depended for its success in buying everything in the cheapest market, labour inclusive, and selling in the dearest. The more the Company became the Corporation, the more it would become trans-national, nestling here, and settling everywhere.
So it was by the 1950’s a number of small American capitalists were hived off from the mainstream, and sought to relocate overseas. Caribbean tourism would be based on such, especially so after the Cuban Revolution of 1958, when Cuba was no longer a Platt Amendment colony of the United States.
These displaced American capitalists saw the Caribbean as happy hunting ground, a new version of “Go West, young man in search of fame and fortune.” By virtue of being small, they needed concessions, tax concessions, from the state. The new Federal Government of the West Indies, with a paltry budget of $9 million needed taxes. Taxes for its expansion and fulfilment. Contained within this scenario is an exacerbation of tensions between Unit and Federal government. The one opening its door as the Concession Economy in search of capital ventures. But these were ventures, which, in themselves, did not propose to accumulate capital for re-investment. But, for repatriation to return to the mainland to join the new corporate elite from which it had been just excluded. The other, the Federal Government seeing every tax concession agreement, as reducing the oxygen for its very survival.
That economic movement would move the Federation and the personalities who shaped it, till the personalities in the grip of these new forces, become unrecognisable in their old persona. I have compressed much in little, and hope you got the point. If not, do not despair. The empirical will support the dialectical.
So in 1958, St Hilaire’s Refinery in Jamaica, was overtaken by Esso Corporation which proposed to Norman Manley to establish a refinery there. Esso, knowing of the Federal government’s interest in Customs Union, and after 5 years, in income tax, wanted Federal endorsement of its refinery project in Jamaica, with all the tax concessions which Jamaica was anxious, even over-anxious to give.
Simultaneously, and to be exactingly fair, Kaiser Bauxite had just begun retrenching hundreds of workers in Jamaica, while the other Bauxite Company in Jamaica followed suit. Production of Bauxite had been severely reduced, due to reduced stock-piling of Bauxite in the U.S. Manley wanted the refinery in Jamaica, it can be said, on any terms. At any rate, so it seemed. The objective economic movement was producing its own subjective imperatives.
Of course, the oil refinery in Jamaica would exclude oil imports from Trinidad the traditional suppliers to Jamaica. Obviously too, the free movement of goods, within the Federation, would be automatically restricted, as Jamaica protected its oil refinery against Trinidad production. The Federation gave unrestricted entry to extra-Federal goods, but to goods produced in the Federation it was erecting barriers. It was explosive.
Dr Williams, Premier of Trinidad most strongly objected, not by an exchange of notes between both governments, but by an acid press conference. Acid rain poured down on oily waters. Jamaica, in its turn, sent its Minister of Trade and Industry to Trinidad to placate Dr Williams, who was naturally incensed. Dr Williams either literally or metaphorically removed his hearing-aid and sent Jamaica’s Minister of Trade to see his Trinidad counterpart. Jamaica felt rebuffed, since its Minister was unable to have the discussion he had sought.
Dr Williams said at another press conference this: “I don’t see why Trinidad should give up rights because a Federal Government has been set up. The Trinidad government would be no party to freedom of movement of people as soon as possible, and to freedom of movement of goods as late as possible.” The first part, that is, the first sentence of Dr Williams statement is untenable, if not outrageous. For agreeing to be a part of a Federation necessarily meant “the giving up of rights.”
If the first part was untenable, the second however, was more than tenable. Freedom of movement of people, had meant considerable movement of people to Trinidad, from the other territories, a fact which Trinidad could not ignore.
Dr Williams behind his dark shades was not being sinister about freedom of movement of people. Migration from the other Unit territories to Trinidad was 1,071 in 1956. By 1958, the year of the inauguration of the Federation it had multiplied more than four times and stood at 4,894, in 1958. By 1959 it was 6,316. It was a massive movement of people and called for the implementation of a quota system, to be relaxed with time and industrialisation in the other territories, particularly, the Windwards and Leewards. Trinidad clearly had a problem.
Simultaneously, however, Jamaica was proposing a reduction in Trinidad’s oil exports. Admittedly, Trinidad could market products previously sold to Jamaica on the international market, but that Trinidad was being displaced by a locally protected monopoly in Jamaica, infuriated Dr Williams, and even Prime Minister of the Federation, Sir Grantley Adams, who strove to sit both horses, confessed that monopolies “were foreign to my thinking.”
Enter Bustamante after Dr Williams statement. He was even more volatile and more trenchant. Said Bustamante he would “rather this kind of Federation be smashed to nothing than for thousands of my people to be thrown out of work through Customs Union, by Trinidad dumping its manufacturers here”. Like all populists, Bustamante knew what would stoke the fire in a Jamaica faced with massive retrenchment in Bauxite.
Note well, that every leader who spoke, spoke first of smashing the Federation in preservation of local privilege. From the beginning this was their way of seeing, because of the concessions they could provide Capital at a local level, which they considered the quintessence of development.
Following on the heels of Bustamante, came Ken Hill, a former radical of the four H’s in Manley’s PNP, who was purged out of the PNP because of his radicalism, and who then found solace with Bustamante, as an opposition member of the Federal Parliament. He declared “Jamaica should take the lead in ending the present farce of Federation.” He invited his leader, Bustamante to call a conference of West Indian leaders to consider secession from this Federation to await another time “when the West Indies could have a real Federation internationally, intellectually and spiritually.” It was pure vapour which concealed the danger of secession.
Remember this was August 29, 1958 and the Federation had come into being after 21 years of palavering and ‘constitutionalising’. What is undeniable is that the end of the Federation was being openly contemplated 5 months after its birth. Infanticide? Clearly though, Hill the pseudo-radical, of the 40’s had become the arch-conservative, leaving his fellow radical of the 30’s and 40’s Richard Hart’s conception of Federation as the solution to viability of the region well and truly behind. This oil refinery, as is usual with foreign enterprises of any size in the English-speaking Caribbean, seemed the panacea for all Jamaica’s woes.
How did Sir Grantley Adams react in this blistering cross-fire of words, issued from one end, Trinidad in the north, to Jamaica in the south.
Sir Grantley was not long in coming forward, via the same means the Press Conference. He began with sweet reasonableness. Unrestricted licence to Unit governments to provide long-term concessions to foreign enterprises, would harm Customs Union and inalterably reduce the tax-base of the Federal Government.
He went on to say that though that Dr Williams reservation on freedom of movement were pointless, in that “the Federal Parliament could pass legislation making the freedom of movement of people effective from the inauguration of the Federation.” That is, retroactive. Adams was now waving the red flag before a charging bull.
Worse was to come. On tax-incentives given by Unit governments Adams intoned “where necessary overriding Federal Legislation would be made retroactive.” Jamaica had blood in its eyes. And continued Adams “restrictions on Trade could be wiped out tomorrow. There was nothing in the Constitution to prevent retrospective legislation on this point.” In short, Jamaica’s oil refinery could be made null and void, with the “Ayes have it”, in the Federal Parliament.
Fortunately, race riots broke out in Notting Hill, in England, and Sir Grantley’s statements were obscured by this earth-shaking event, with West Indians beaten and killed.
Bustamante did not hear of Grantley Adams statement but he continued his assault on Dr. Williams, and Customs Union and therefore Manley and the PNP by indirection.
Bustamante’s next volley on September 26 went like this: “After I win the General Elections in 1959, there is going to be trouble, for I will fight Eric Williams and his Customs Union ambitions every inch of the way. He is an intellectual fool and I will not allow Trinidad to use Jamaica as dumping-ground.”
The statement is redolent with all the anti-intellectualism which populists invoke against intellectuals. Moreover it signalled that any programme of import substitution undertaken by the Federation would be doomed. Individual territories would see such production as “dumping” on them goods inferior to those they were accustomed to in the imperial relation.
Next stage Adams journeys to Canada and at the invitation of Norman Manley to Jamaica. The date October 30, 1958. Manley meets with Sir Grantley Adams, privately, and gives assurances about the oil refinery. Manley was pleased. So pleased that he encouraged Sir Grantley to hold a Press Conference in Jamaica. It became doomsday.
Reported the Gleaner under the banner headline Warning Against Unrestricted Tax Concessions. It reported as follows:
“Emphasising that he was neither issuing a threat nor a warning Prime Minister Grantley Adams said that the Federal Government, could levy its own income tax, after five years and make it retroactive to the date of Federation.”
It were as though war was declared. Bustamante leapt first into the fray with a foxy cable to Sir Grantley –
“You are reported as saying that notwithstanding any tax holiday granted to Unit Governments, the Federation can levy its own income tax and make it retroactive. You would only carry out that threat if Manley won the next election. Is that possible?”
The taunt was calculated to appeal to Jamaicans that the Federal government intended to undo Jamaican concession development by retroactive taxation, and this could only happen if Manley were re-elected. Not otherwise.
Thus taunted, Manley responded, if not in kind, at least out of character to his Federal stance. Said he in a Secret and Urgent Letter, published next day, to Adams “No words could describe the profound shock and alarm with which I read about your press conference this morning.” It has “already spread the profoundest consternation and alarm in all business and industrial circles in Jamaica.” Moreover said Manley he was outraged that a Federal Labour Party official should issue “threats which had no legal validity and were flatly contrary to the policy of the party.” As such he would not remain a member of a Federal Party “which would dishonour the obligations of Units.”
In his statement to the Gleaner the next day Manley said if ever there should arise any possibility of the Federal Government contemplating policies disrupting the economic development of Jamaica, or dishonouring agreements retroactively, interfering with our laws, or contractual obligations, Jamaica would be forced to reconsider her position in regard to Federation itself.” The Federal fat was in the fire of the Unit Government.
Objectively and subjectively, Manley and Bustamante who were sworn enemies, were now at one, “both forced to reconsider Jamaica’s position in regard to Federation.” Not Adams, be it noted, but Federation itself was on the sacrificial altar. And not just Abraham, but Abraham’s and his opponent had raised the knife to slay Isaac the Federation as off-spring. There was no intervening angel to stay the slaughtering hand. Angels, apparently, no longer intervene in the intercourse of human events. At any rate, not West Indian historical events.
For those who think that I am demonstrating the validity of my thesis that the objective movement of Capital, to the unheeding, makes bedfellows of past opponents in the service of Capital, let me concretise the point by actual events and not theoretical postulations.
As is customary in West Indian politics, there was a pause for Christmas, a cease-fire. After the Christmas festivities Busta, as he is best known, returned to the fray. This time he wrote to Manley. Said he, Jamaica is in grave danger, for the Federal Constitution had no escape clause for Jamaica to get out of Federation. Therefore, a rewriting of the Federal Constitution was an immediate Jamaican necessity. Such a rewriting would be achievable only by overthrowing Adams. And if “the next Prime Minister works against Jamaica’s interest as Adams government is doing now we would overthrow him too with the votes of your five members.”
Not only had Busta perceived that Manley and himself had arrived at the same political position with regards to Federation, he now called for collaboration to overthrow Adams government, and successive Federal government if need be. Manley, not by logic, but by the force of events pursuant to tax-holidays to foreign capital, was now in Busta’s parochial camp, and Busta offered an alliance of like forces to make a coup! Unarguable. Not refutable either, is the fact that Manley’s threat to withdraw from the Federation, further undermined the already weak faith in Federation in Jamaica. In fact, Manley now took over Busta’s position in demanding the weakest possible form of Federation.
But watch the interplay of personalities. There was little by way of mutual respect between Dr Williams and Adams. But with Adams under siege from Jamaica and since Manley had the unswerving support of the other, shall we say, using the language of this time, OECS leaders, Dr Williams incredibly rose to the defense of Adams. Dr Williams himself and the top-brass of his party journeyed to meet Adams at Piarco on his return from Jamaica, and gave him a rousing welcome. In a statement, Trinidad declared that it “would strongly support and sacrifice powers to promote the establishment of a really strong Federation with taxing powers.” Reported in Jamaica it consumed the Federation in more fiercely licking flames.
Their eminencies C.L.R. James and Sir Arthur Lewis were called in to quell the flames. But not even they could serve as appeasing angels. C.L.R. James and Sir Arthur Lewis, brought off a coup of immense value. They had Mr Manley and Dr Williams meet in Antigua on August 7–8, 1960. Peace seemed in the offing. Agreement was reached. But Adams and his Federal Cabinet suspected treachery in the sheer secrecy of the meeting.
In Antigua, at the meeting, and contrary to popular perception, Dr Williams the inflexible, was most accommodating to Manley. So much so that Dr Williams even proposed that along with taxes on income and profits as well as industrial development, there should be added primary and secondary education and external loan powers, all of which should be kept out of Federal government hands. The advocate of a strong Federation had turned turtle. Extricating himself from these commitments to Manley in Antigua, would worsen an already worsened situation.
The seeds for the denouément of the West Indies Federation had already been sown. Acrimony was the normal relation between the leaders. The concession economy, granting concessions to foreign capital, seemingly plentiful, with post-war developments in the U.S., set each territory to thinking that it could make deals with foreign capital for its own insular “viability,” to use the vogue word of the time. Objectively no kind of Federation could stand in those circumstances. But that is only one way of perceiving that what happened had the force of inevitability.
But being as rigorous as I have been in this serious tribute to the great Dr Walter Rodney whose murder has not been resolved after 17 years, and despite changes of government in Guyana, and to the youths here who set me on this path, I am allowed one speculation.
What if at the height of the crisis occasioned by Sir Grantley Adams’ statements in Jamaica, Manley by way of a by-election had been elected to the Federal Parliament and had replaced Adams? What if there was planned industrial development, with Federal government allocating industries sought by it to ensure equal development, and with Unit governments left free to pursue foreign capital within prescribed limits, a new relation had been established between Unit government and the Federal government. For this to happen Adams had to go.
Adams to be sure, by raising the spectre of retroactive taxation was both wrong and thoughtless. But he was as right as he was wrong, that unrestricted granting of tax holidays to foreign capital by Unit Governments would undermine the whole Federal shebang. It was the mode he chose to defend a principle that was wrong, not the principle. But Adams had made himself a political liability, despite his undoubted gifts, and had to go if Federation were to be saved. The fact of the matter is, Manley had compromised himself at home, and could not morally countenance displacing his old friend Sir Grantley Adams. Bustamante ever and always parochial saw a wounded Manley and moved in for the kill. As he did so, with the referendum, he finished both Manley and Federation. The Parochial had triumphed over the Federal, except on the cricket field.
For, before the Federation ended the first black had captained the West Indies, in a glorious series in Australia in 1960, and to impressive victories thereafter. From the ashes of the Federation West Indies cricket rose, as did its literature, as did Sparrow putting Calypso on a new and higher plane. Only in economics and politics we can’t get it together. The blandishments of foreign capital holds us in insular misery, structurally adjusted, with globalisation adjusting further and downwards.
Last updated on 30 May 2022