Showing posts with label Stalinism. Show all posts
Showing posts with label Stalinism. Show all posts

Monday, November 4, 2024

3655. Stalin and the Creation of the State of Israel

By Martin Krammer, Mosaic, November 6, 2017


November 29 marks the 70th anniversary of UN General Assembly resolution 181, recommending the partition of Mandate Palestine into two separate Jewish and Arab states. On that day in 1947, millions of listeners sat glued to their radio sets to follow the voting. The outcome set off spontaneous celebrations among Zionists everywhere, for it constituted the first formal international endorsement of a Jewish state.

To celebrate the anniversary, Israel’s embassy to the United Nations is restoring the hall in Flushing Meadows, New York—today the main gallery of the Queens Museum, then the meeting place of the General Assembly—to its appearance in 1947. The announced plan is to reenact the vote, with the current ambassadors of member states that voted “yes” recasting their ballots.

The most conspicuous of the ballots cast will be that of the United States. Indeed, the vote and its sequel are set to be told as a largely American story. Israel’s UN ambassador, Danny Danon, has placed the celebration in this historical context:

From the moment President Truman became the first world leader to recognize the new Jewish state, Israel has had no better friend than the United States of America, and the U.S. has had no more steadfast ally than the state of Israel.

In keeping with this, the keynote speaker in New York will be U.S. Vice-President Mike Pence. Again and again, we are likely to hear how Harry Truman stood up to his State Department (and, perhaps less heroically, catered to Jewish voters) by saying “yes” in November 1947 and then by immediately recognizing Israel when David Ben-Gurion declared the state on May 14, 1948. And once again, we will be reminded of Eddie Jacobson, Truman’s Jewish business partner in a Kansas City haberdashery before the Depression, who famously traded on his old friendship to secure a critical meeting between Truman and the Zionist leader Chaim Weizmann in March 1948.

The rest of the story has been carefully burnished over the years, including by Truman himself. In 1953, when Jacobson introduced the former president to a Jewish audience as “the man who helped create the state of Israel,” Truman upped the ante by comparing himself with the ancient Persian ruler who restored the Jews to Jerusalem from Babylonian exile: “What do you mean ‘helped to create’? I am Cyrus.”

Historians, it is true, still debate Truman’s motives. But they also agree on one thing: Israel’s creation owed more to Truman than to any other world leader. “Without Truman,” write Allis and Ronald Radosh in their book on Truman and Israel, “the new state of Israel might not have survived its first difficult years, and succeeded thereafter.” Michael J. Cohen, in his earlier book on Truman and Israel, states that in 1947 and 1948, “Truman arguably played the decisive diplomatic role in the birth of the new state of Israel.” Michael Oren, in Power, Faith, and Fantasy, his bestseller on America in the Middle East, asserts that Truman’s comparison of himself with the Persian ruler Cyrus “was not entirely bluster.”

The problem here is simple: everything said about the contribution of Truman could be said about that of Joseph Stalin.

 

I. Stalin, a Founding Father of Israel?

 

In a 1998 essay marking Israel’s 50th anniversary, the historian Paul Johnson addressed a “paradoxical aspect of the Zionist miracle, which we certainly did not grasp at the time and which is insufficiently understood even now.” That paradox, wrote Johnson, is that “among the founding fathers of Israel was Joseph Stalin.” Twenty years later, even fewer people grasp it. The Soviet Union is long gone, remembered by Israel and its supporters as the patron of Nasser abroad, the jailer and tormentor of Jews at home, the purveyor of vicious anti-Semitism everywhere. Nor did any Soviet leader himself ever claim the mantle of Cyrus. To the contrary: from the 1950s onward, the Soviet Union did its utmost to erase the fact of Soviet support for the creation of Israel from official history and from Arab memory.

Meanwhile, both in the United States and in Israel, an equal and opposite process has erased from memory the inconstancy of American support for Israel’s creation.

Yes, the U.S. voted for partition in November 1947, but by the following March it had declared partition impossible to implement and proposed a “temporary” UN trusteeship in its stead. On the very eve of Britain’s official withdrawal from Israel the following May, America’s top diplomat was still warning Israel’s leaders against declaring independence.

­­­It is a “paradoxical aspect of the Zionist miracle,” wrote the historian Paul Johnson, “that “among the founding fathers of Israel was Joseph Stalin.”

Yes again, Truman did immediately recognize Israel (de facto but not de jure). But he had already enforced an arms embargo on the Middle East, forcing Israel to scavenge for its survival.

By contrast, not only did the Soviet Union under Stalin vote for partition, and also recognize Israel—the first state to do so de jure, three days after independence—it had come out in favor of a Jewish state well before the United States. Moreover, it had held firm in that support both before and after the vote, and had indirectly assured that the newborn state would have the war materiel it desperately needed to defend itself. According to Abba Eban, Israel’s first UN ambassador, without the Soviet vote in favor of partition (together with the votes of four satellite nations), and without the arms provided by the Soviet bloc, “we couldn’t have made it, either diplomatically or militarily.”

Still, one might wonder: even if all this is true, is any contemporary purpose served by recounting it? That purpose certainly cannot be to “rehabilitate” Stalin’s Soviet Union. Although there is such a tendency in Russia today, few outside that country harbor any illusions about Stalin’s horrific legacy. Nor can the purpose be to belittle the significance of American support for Israel since 1967.

In what follows, my objective is otherwise: to show how, in the years just before, during, and after the establishment of the state of Israel, its leaders thought creatively about the postwar geopolitical order. Knowing that they had no steady friends, they presciently identified the Soviet Union as an emerging great power, and set about wooing Moscow. Soviet support then allowed them to parlay budding cold-war rivalries into even more American support. It was a masterstroke of Zionist diplomacy.

Stalin’s decision is still shrouded in mystery, and it is by no means certain that Zionist overtures played the decisive role in the Soviet Union’s surprising and highly consequential support for a Jewish state. But they might have done. Today, as Israel makes its way in a changing world, marked by the rise of new powers, there may be a lesson to be learned from this history.

It all began with a forgotten speech.

 

II. A Forgotten Speech That Shocked the World

 

Shortly before midday on May 14, 1947, Andrei Gromyko, the permanent representative of the Soviet Union to the United Nations, mounted the dais of the UN General Assembly Hall in Flushing Meadows, Queens.

At that moment, the mood of Zionists everywhere was one of gloom. They were still reeling from the magnitude of the Holocaust, the images from the Nazi extermination camps, and the plight of hundreds of thousands of survivors who had emerged dazed from the camps and the forests. The vast majority of these Jews wanted only to leave Europe, and many were embarking on long treks to Mediterranean ports in hopes of gaining passage to Palestine. A quarter-million Jews filled displaced-persons camps in Germany and Austria, desperate for a positive response to their pleas and safe passage to the Jewish homeland.

In Palestine, thanks to a British policy designed to appease the Arabs, the doors remained as firmly shut to Jewish immigration as they had been all through the war. The Royal Navy, intercepting ships headed for Palestine with their human cargo of Jewish survivors, shipped the “illegals” to grim detention camps in Cyprus. Some Palestinian Jews reacted to these draconian measures by taking up arms in an insurgency against the British, setting off a cycle of killings and retributions. Others appealed to the world’s conscience, with limited results. Although the yishuv, the organized Jewish population in Palestine, had prepared itself for independence, no great power had declared itself in favor of a Jewish state.

In February 1947, Britain announced that it would terminate its Mandate and refer the problem of Palestine to the United Nations. In May, the UN General Assembly moved to create a special commission, the United Nations Special Committee on Palestine (UNSCOP), whose job was to “ascertain the facts” and recommend a “solution to the problem of Palestine.”

Although the Jews in Palestine had prepared themselves for independence, no great power had come out in favor of a Jewish state. On May 14, 1947, with a speech by the Soviet representative to the UN, that suddenly changed.

This was the immediate background to the May 14 speech by Andrei Gromyko defining the brief of UNSCOP from the Soviet perspective. No Zionist had reason to expect much of it. The Soviet Union had always derided Zionism as a reactionary if not a fascist movement, and a catspaw of Western and especially British imperialism. Since the war’s end, the Soviets had maintained that the “Jewish problem” could be resolved not by moving Jews to Palestine but only by “the complete eradication of the roots of fascism” in Europe itself. Communist parties across the Middle East, including in Palestine, dismissed the notion of partition as an imperialist plot. The party line instead urged “a single, democratic, independent Palestine”—in which Arabs would outnumber Jews two to one.

At thirty-seven, Gromyko was already a seasoned Soviet diplomat and a former ambassador to Washington. A British admirer in the UN bureaucracy described him as “dour and gruff in demeanor.” Zionist diplomats and American Jewish leaders, who knew him well, had no illusions about this “thunderer,” as they called him (grom meaning thunder in Russian). As Eban later recalled, “both Eliahu Epstein, who headed our office in Washington, and [Moshe] Sharett [head of the political department of the Jewish Agency] were fluent in Russian and had conducted many conversations with Gromyko and with his deputy, Semyon Tsarapkin, without receiving any intimation of Soviet support.”

The American government had no such intimation, either. All along, the State Department, the Joint Chiefs of Staff, and the CIA had cautioned that a U.S. vote for partition would enable the Soviets to reap Arab gratitude for opposing it, as Moscow was certainly expected to do. Only four days before Gromyko’s speech, the American embassy in Moscow predicted that in the upcoming UN session, the Soviets would oppose “formation in all or part of Palestine of a Jewish state, which the USSR would regard as a Zionist tool of the West, inevitably hostile to the Soviet Union,” and would instead favor the “independence of Palestine with its present Arab-majority population.”

In opening his speech, Gromyko performed as expected. The British Mandate over Palestine, he explained at length, had failed in its mission; with the spread of violence, the country had deteriorated “into a semi-military or police state.” The Mandate had to be terminated. No surprise there: the fiercely anti-British Soviets certainly weren’t going to insist that Britain linger in any outpost of its empire.

But then, to the astonishment of all, Gromyko began to dwell upon the Holocaust. During the war, he said, the Jewish people had been subjected to “indescribable sorrow and suffering. It is difficult to express them in dry statistics.” Jews had been subjected to “almost complete physical annihilation.” And now “hundreds of thousands of Jews are wandering about in various countries of Europe,” many in camps for displaced persons where they “are still continuing to undergo great privations. . . . The time has come,” he proclaimed, “to help these people, not by word, but by deed. . . . This is a duty of the United Nations.”

What, then, should be done? Up to this point, the Soviet position had been that the solution for these hundreds of thousands of homeless Jews lay in Europe. But no longer. “No Western European state,” Gromyko asserted,

has been able to assure the defense of the elemental rights of the Jewish people. This is an unpleasant fact, but unfortunately, like all other facts, it must be admitted, [and it also] explains the aspirations of the Jews to establish their own state.

And then the bombshell:

It would be unjust not to take this into consideration and to deny the right of the Jewish people to realize this aspiration. It would be unjustifiable to deny this right to the Jewish people, particularly in view of all it has undergone during the war.

The Soviet Union, said Gromyko, would still prefer a “single Arab-Jewish state with equal rights for the Jews and Arabs.” But if the UN commission found this “impossible to implement, in view of the deterioration in the relations between Jews and Arabs,” there was a “justifiable” alternative: “the partition of Palestine into two independent single states, one Jewish and one Arab.”

Eban could hardly believe his ears:

Nothing had prepared us for this windfall. . . . Moscow was reversing its traditional posture by proposing the option of a Jewish state. I had come to the United Nations with pessimistic assumptions about the balance of forces; I now revised my predictions. . . . For the first time, our political sky was lit up with a gleam of hope. It was no longer necessary to be a romantic optimist in order to foresee a Zionist success. Gromyko had become a Zionist hero.

The news electrified the yishuv. “Palestine Excited over Soviet Stand,” a New York Times headline proclaimed. Natan Alterman, the yishuv’s most prominent Hebrew poet, swiftly published a verse “Telegram to Gromyko.” An excerpt:

There are no words.
The yishuv is still dazed.

Please understand: for some time,
we’ve been deprived of news like this
with the taste of manna. . . .

It’s the vital, warm, good emotion
of a swimmer struggling against endless waves,
who’s suddenly tossed a lifesaver from the shore.

David Ben-Gurion met Gromyko in New York a short time later. Afterward, while warning against exaggerating the speech’s importance, he claimed to have received “additional clarifications” from Gromyko that were “positive” and “did not diminish in the least the impression” made by the public speech, which had both “moral and political value.”

 

III. The Evolution of Soviet Support

 

As it turned out, Ben-Gurion’s caution was misplaced. For the next two years, the Soviet Union proved to be the steadiest great-power supporter of the Jewish state-in-formation and then of Israel. There were at least five major milestones in the evolution of Soviet support.

(1) When UNSCOP returned a recommendation of partition in September 1947, the Soviet Union quickly backed it. On November 26, in the general debate that preceded the historic vote, Gromyko made the Zionist case, brushing off as “unacceptable” the Arab objection that partition constituted “an historical injustice”:

After all, the Jewish people has been closely linked with Palestine for a considerable period in history. Apart from that . . . we must not overlook the position in which the Jewish people found themselves as a result of the recent world war. . . . The solution of the Palestine problem into two separate states will be of profound historical significance, because this decision will meet the legitimate demands of the Jewish people, hundreds of thousands of whom, as you know, are still without a country, without homes, having found temporary shelter only in special camps in some Western European countries.

The Soviet Union voted “yes” for partition, as did its satellites Belorussia, Ukraine, Poland, and Czechoslovakia. (Yugoslavia, another satellite, abstained.)

(2) In March 1948, with the United States retreating from the idea of partition, the Soviet Union stood firmly in favor of it and attacked the alternative American proposal of a UN trusteeship. On April 20, as the clock wound down on the British Mandate, Gromyko denounced trusteeship as an idea that would place Palestine “in a state of virtual colonial slavery.” Only partition into independent states would “satisfy the legitimate aspirations of the Jewish people, which had suffered so much under the Hitler regime.” If trusteeship were put to a vote, he warned, the Soviet Union would cast a “no” ballot.

(3) Also at the start of 1948, the Soviet Union, while sending no equipment on its own, gave a nod to crucial arms deals between Czechoslovakia and Israel, assuring the latter an advantage in the battle with the Palestinian Arabs that was already under way. The Czech motive was mundane: a need for foreign currency. But the deal depended on Soviet acquiescence (and, according to some accounts, on Stalin’s personal authorization).

The arms deliveries made it possible to provide every Israeli recruit with his or her own weapon and ample ammunition. And the guns arrived in the nick of time, allowing the Haganah to go on the offensive in the lead-up to independence (“Plan Dalet”).

At the start of 1948, the Soviet Union gave a nod to crucial arms deals between Czechoslovakia and Israel, assuring the latter an advantage in its war of independence. “They saved the country, I have no doubt of that,” Ben-Gurion said.

“They saved the country, I have no doubt of that,” Ben-Gurion would say two decades later. “The Czech arms deal was the greatest help, it saved us and without it I very much doubt if we could have survived the first month.” Golda Meir, in her memoirs, similarly wrote that without the arms from the Eastern bloc, “I do not know whether we actually could have held out until the tide changed, as it did by June 1948.”

(4) In June 1948, as Israel gained the upper hand, the Soviets backed the most important Israeli objections to the plan for a settlement being pushed by the UN mediator Count Folke Bernadotte. Responding to Bernadotte’s proposal to transfer the entire Negev to Transjordan, foreign minister Vyacheslav M. Molotov advised Stalin that this would put four-fifths of Israeli territory into the hands of Transjordan—“i.e., into British control”—and should be rejected. (“Comrade Stalin agrees,” Molotov scribbled on the document.)

(5) The Soviets also supported Israel on the question of Palestinian Arab refugees. Instead of Bernardotte’s proposal that these Arabs be given the right to return to the territory of the Jewish state, the Soviets preferred that “the Jews be given the opportunity to come to an agreement with the Arabs on this matter in the course of peace negotiations.” Near the end of the war, in December 1948, the Soviet Union and its satellites voted against General Assembly resolution 194, later cited as guaranteeing a “right of return” for Palestinian Arab refugees. (The United States voted in favor.)

In sum, Israel could hardly have asked for more. In October 1948, Sharett reported to the Israeli cabinet that “the Eastern bloc supports us staunchly. . . . In the Security Council the Russians are operating not just as our allies, but as our emissaries.” Eban noted that for these “two or three years,” the Soviets “were more constant in their assertiveness in support of Israel than even the United States. There were no wobblings, no vacillations.” Through it all, moreover, the Soviets had “attacked the Arabs vehemently.” To Eban’s mind, this had to do with the Soviet political style, so totally at odds with the American:

Then and afterward, the Soviet Union were either for you or against you. If they were for you, they were 100-percent; if they were against you, they were 100-percent. The United States always had a plurality in their objectives and tried to combine their objectives in a single policy. So they were never 100-percent for you, and they were never 100-percent against you. Nobody could completely trust them and nobody could completely despair of them.

 

IV. Why Stalin Did It

 

Why did Stalin do it? The question has perplexed historians for 70 years. Since the fall of the Soviet Union, scholars have studied and published hundreds of Soviet documents on early Soviet-Israel relations. These documents include policy recommendations made to Stalin and instructions from the Soviet foreign ministry to its diplomats, but no document has revealed Stalin’s own thinking.

Because the sudden shift defied belief, some questioned whether Stalin gave much thought to it at all. This was the view of the historian Walter Laqueur. A decade after the events, Laqueur expressed

some doubt whether the decision to support the establishment of a Jewish state was taken at top level; in view of subsequent developments it is at least possible that this course of action was recommended by some foreign-ministry advisers and approved by Stalin in a fit of absentmindedness.

Possible, yes—but, to judge from the Soviet documents, unlikely. In July 1947, the first secretary of the Soviet embassy in Washington insisted that “it was only after a careful and comprehensive analysis of the situation that Gromyko had been authorized to make his statement.” Throughout that period of high-level analysis, nearly all of Stalin’s foreign-policy advisers opposed partition (as did Truman’s). Their consensus was that support for a Jewish state would provoke “an unfavorable reaction” across the Arab world.

Only Stalin could have overturned this consensus. So great a pivot in official policy, argues the cold-war historian Vladislav Zubok, “was unthinkable without Stalin’s personal decision. . . . [It was] a gamble, a probe, that only Stalin could come up with.” Indeed, it would have been perilous for any underling to propose support for the Zionist project of a Jewish state. Molotov, foreign minister and Politburo member at the time, later recalled that when it came to the idea of a Jewish state, “everyone objected but us—me and Stalin.”

So again: why did Stalin decide as he did? No historians give any weight to pro-Jewish sentiment. At Yalta in February 1945, Stalin had described the Jews to President Franklin D. Roosevelt as “middlemen, profiteers, and parasites.” There is no evidence that his view ever changed, except for the worse. Benny Morris has gone the farthest in speculating that the Soviets, in addition to considerations of realpolitik, might also have been “moved by the horrors of the Holocaust and by a sense of camaraderie with fellow sufferers at Nazi hands.” Bernard Lewis is not persuaded: “It is difficult to believe that Stalin, who killed countless millions in his own concentration camps, was moved by compassion for the plight of Hitler’s surviving victims.”

An American view, commonplace at the time, was that Stalin simply wanted to create turmoil. Partition would end in war, which, whatever its consequences, the Soviets could somehow exploit. Thus, the American number-two at the United Nations wondered “whether the Russians want partition or whether it is chaos they seek in Palestine.” George Kennan, the foremost Soviet expert at the State Department, called partition “favorable to Soviet objectives of sowing dissension and discord in non-Communist countries.”

How exactly such discord would serve Soviet interests remained unclear, however. Right up to Gromyko’s May 1947 speech (and in some cases, even later), every relevant agency of the U.S. government assumed that the Soviets would oppose partition in order to win Arab favor, while America would pay a heavy price in Arab opinion for supporting it. Not surprisingly, then, the Americans remained befuddled by the Soviet move, which seemed to them utterly counterintuitive.

Dean Rusk, head of the UN desk at the State Department, admitted to being “puzzled” by the “novelty of what seemed to be a pro-Zionist [Soviet] policy.” Robert Lovett, under-secretary of state, professed himself “mystified.” Kennan’s imagination also came up short: “There is no way of telling in exactly what manner the USSR will attempt to turn partition to its advantage.” (“It must be assumed, however,” he lamely added, “that Moscow will actively endeavor to find some means of exploiting the opportunity.”)

Astute observers of Soviet policy have attributed a plausible motive to Stalin: the Jewish state would be a useful lever for dislodging Britain from the heart of the region.

Most astute observers of Soviet policy, then and now, have attributed a more precise and plausible motive to Stalin. By 1947, the cold war had already seeped into the Mediterranean and the Middle East via Greece, Turkey, and Iran. Stalin may have concluded that the cause of a Jewish state would be a useful lever for dislodging Britain from the heart of the region. The British might still hold sway over their Arab clients in Transjordan and Iraq, and keep Egypt in their grip. But a Jewish state would drive the British out of Palestine, lock, stock, and barrel. True, supporting it would come at a cost: the (small) Arab Communist parties would be devastated. But it was a negligible price to pay in return for securing Britain’s ignominious retreat from one of its biggest bases in the Middle East.

This was clear as early as June 1946 to a leading Zionist diplomat, Eliahu Sasson, whose field was Arab politics. From this vantage point, he observed the Soviets acting everywhere in the Middle East to counter the British. His prescient conclusion:

Not only is there no reason to expect Russian policy to be hostile to us, there are grounds for thinking it will be friendly. Not out of sympathy to us or out of hatred toward the Arabs, but in order to settle political accounts with England.

The anti-British logic also figured in some Soviet policy papers, and in retrospect it makes perfect sense. But as there is still nothing straight from Stalin’s mouth, the riddle lingers. Molotov didn’t solve it in 1972, when he gave a confused account of his rationale:

It’s one thing to be anti-Zionist and anti-bourgeois and quite another to be against the Jewish people. . . . The Jews had long struggled for their own state under a Zionist flag. We, of course, were against Zionism. But to refuse a people the right to statehood would mean oppressing them.

Thus the paradox: the state of Israel came into being with the crucial support of a regime that continued to see itself as “against Zionism,” “of course.”

 

V. The Zionist Grooming of Russia

 

An additional and crucial element—the one I signaled early on—will help fill out the picture. Soviet support for partition and for Israel has usually been described as a “windfall” (Eban’s word) that took the Zionists by surprise. But, years before Gromyko’s speech, Zionist leaders themselves had begun to pursue Soviet support. Although they were surprised in 1947, many would come to believe that their own earlier efforts had produced the turnabout.

The central figures in this saga include Weizmann and Ben-Gurion. But at the very center there may stand a man largely forgotten to Israel’s history: Ivan Mikhailovich Maisky.

From 1932 to 1943, Maisky served as Stalin’s ambassador to the Court of St. James. Of Polish-Jewish ancestry, he had been a revolutionary as a young man and spent World War I in British exile. Returning to Russia after the 1917 revolution, he joined the Bolshevik party and put his charm to work as a diplomat.

Posted back to London, Maisky befriended a who’s-who of the British political and intellectual elite, from Neville Chamberlain and Winston Churchill to George Bernard Shaw and Beatrice Webb. Today, historians of the Soviet Union celebrate Maisky for his copious diary, in which he tells how, through treacherous waters, he adroitly steered Soviet-British relations through most of the war.

Chaim Weizmann, who conducted Zionist diplomacy from London, had taken notice. During the earlier world war, Weizmann had anticipated the defeat of the Ottoman Empire, placed his bet on Britain, and been instrumental in securing the Balfour Declaration. By 1941, as Zionism’s elder statesman and president of the World Zionist Organization, he was anguished by Britain’s betrayal of its pledge to facilitate a Jewish national home in Palestine. Now the new world war seemed likely to undo the British Empire, throwing open the Middle East once again. Who would fill the vacuum? Whom should the Zionists cultivate?

Weizmann had no illusions about Stalin. In addition to the familiar catalogue of the Soviet dictator’s treachery, Weizmann had personal experience of his cruelty. Although most of the Weizmann siblings had left Russia before 1917, his younger brother Shmuel had gone back to build the “revolution” and disappeared in the “Great Purge” of the late 1930s.

Weizmann had no illusions about Stalin, whose forces had killed his brother. Yet, despite this, Weizmann thought that under certain circumstances, Stalin might prove willing to aid the Zionist cause.

Yet, despite this, Weizmann thought that under certain circumstances, Stalin might prove willing to aid the Zionist cause—and Ivan Maisky was Stalin’s most proximate agent. “A few days ago I had an unexpected visitor,” wrote Maisky in his diary in February 1941: “the well-known Zionist leader Dr. Weizmann.” Maisky was impressed by the dignified demeanor of this “tall, elderly, elegantly dressed gentleman” who spoke calmly and deliberately in “excellent Russian.”

In their conversation, the man credited with winning the Balfour Declaration anticipated the final demise of the British-Zionist entente. The English, he offered, “don’t like the Jews,” and “prefer the Arabs to the Jews.” They were “hardly likely to agree” to mass immigration into Palestine of Jews who might survive the war. “And if they don’t agree, what will happen?” Weizmann sharpened the question: “What has a British victory to offer the Jews?” The implied message: once the war ended, the Zionists would finalize their divorce from Britain and be open to new relationships.

So began the wooing of Maisky, a joint effort by Weizmann and Ben-Gurion. It consisted of overtures and memos in which the Zionist leaders hammered away at set themes: the Jews were resolved to fight for their freedom, a Jewish state would be neutral, and the Arabs were either British agents or collaborators of Nazi Germany.

In particular, the two leaders worked to persuade Maisky that Palestine was a one-stop solution for Europe’s desperate Jewish masses. All through the Mandate period, critics of Zionism claimed that the country couldn’t absorb enough Jews to solve Europe’s Jewish “problem.” The Zionists worked especially hard to persuade Maisky otherwise.

Thus, when, at their first meeting, Maisky “expressed some surprise about how Weizmann hoped to settle five million Jews on territory occupied by one million Arabs,” Weizmann replied that the Arab was “the father of the desert. . . . Give me the land occupied by a million Arabs, and I will easily settle five times that number of Jews on it.” In their second meeting, in September 1943, Maisky repeated his worry about the “smallness” of Palestine, to which Weizmann responded by invoking a report by the renowned American irrigation engineer Walter Clay Lowdermilk, who estimated that the country could absorb another four million European Jewish refugees. The following month, Maisky raised the same issue with Ben-Gurion: “We want to know the truth, what is the capacity of Palestine?” Ben-Gurion spoke more modestly of two million Jews, and in due course provided Maisky with a supporting memorandum.

The two Zionist leaders also assured Maisky that the yishuv’s social and economic organization was not only compatible with Communism but even resembled it. The kibbutzim, Ben-Gurion emphasized in October 1941, while not ideologically Communist, “from an economic point of view . . . were communistic.” Palestine was home to “the only organized labor movement in the whole of the Middle East” and “the nucleus of a socialist commonwealth.”

In March 1943, Weizmann sent a memo to Maisky, which included this deftly ingratiating passage:

Three of the most fundamental aspects of Soviet social philosophy are embodied in the national system being built in Palestine by the Zionist movement: collective welfare and not individual gain is the guiding principle and goal of the economic structure; equality of standing is established in the community between manual and intellectual workers; and consequently the fullest scope is provided for intellectual life and the development of labor. There are no fundamental psychological barriers to mutual understanding, and the Zionist movement has never felt antagonistic to Soviet social philosophy.

As the war progressed and the Soviets began to push the Germans back in Europe, Zionist leaders gained the sense that their efforts were beginning to pay off. In September 1943, as Maisky prepared to leave London for Moscow to help plan the postwar settlement, Weizmann met him one last time. The Zionists, Weizmann said, “had been friendly toward Russia and hoped that the Soviet government would understand their aims.” Maisky replied that “he could not commit his government, but he believed that the Soviets would support them. . . . He thought that Russia would certainly stand by them”—an early hint (or hunch), offered three-and-a-half years before Gromyko’s dramatic bombshell at the United Nations.

Maisky’s route back to Moscow took him through the Middle East, and in October he visited Palestine. Now he was the one to seize the initiative, reaching out to Ben-Gurion, who took him and his wife on an afternoon visit to two kibbutzim near Jerusalem. As if on an official fact-finding trip, Maisky expressed keen interest in all aspects of kibbutz communal life and even posed for a photograph with Ben-Gurion and Golda Meir.

On the return ride to Jerusalem, Maisky told Ben-Gurion that “after the war there will be a serious Jewish problem and it will have to be resolved; we have to express an opinion, so we must know.” Ben-Gurion could hardly believe this turn of events. “It was all a great surprise to me,” he reported to his colleagues. “For me it was a revelation. I could hardly believe it. It obligates us to act—here is another country that is taking an interest in this question.”

Maisky wrote a memo on his visit to Palestine. No historian has been allowed to see it, so it remains the subject of endless speculation—but while the details aren’t known, its thrust is well-attested. The Ukrainian foreign minister at the time called the report “full of admiration at the wonderful progressive achievements of the Jews in Palestine.” Harold Laski, the British socialist leader, told Ben-Gurion in 1944 that “I read Maisky’s secret report and I became a Zionist.”

Did the memo have a similar effect in Moscow? The historian Gabriel Gorodetsky, the translator and editor of Maisky’s diaries, has dismissed the notion that Zionist cultivation of Maisky made a decisive difference. Maisky “misled” Ben-Gurion by suggesting that he exerted a vast influence over Soviet foreign policy; although he did prepare a “glowing report” for Stalin, he had already been shunted aside. On his return to Moscow in 1943, Gorodetsky writes, “he found the doors to the Kremlin bolted.” While he continued to advise Stalin at the Yalta and Potsdam conferences, he was out of the ministry by the end of 1945. Zionist leaders only imagined that their wooing of Maisky had anything to do with Stalin’s decision.

In one obvious sense, this is true: Stalin made his decision more than three years after Maisky’s report, and in the context of the cold war. But the Zionist outreach to Maisky was itself only the most high-profile facet of a more extensive campaign that mobilized another layer of Zionist diplomats (including Sharett, Epstein, and Nahum Goldmann), involved overtures to Soviet missions from Washington to Ankara, and continued right up to Gromyko’s speech.

Would the transformation in the Soviet view have occurred without years of activist Zionist diplomacy? Zionist leaders had no doubt: somehow, they had tipped the scales.

The Zionist statesmen involved in this pursuit were neither naïve nor uninformed about the workings of the Soviet state. In particular, Ben-Gurion’s knowledge of the Soviet Union was deep and wide. As a young socialist organizer, he had spent three months there in 1923 and would later testify that “we [Zionists] were constant in our love for the great revolution in Russia.” But in 1928 the Soviet regime banned even the most socialist forms of Zionism, and Ben-Gurion found that things then became visible “in their true light.” He understood perfectly that reconciliation with Moscow “will come neither as a result of kibbutz settlement . . . nor by translating Lenin or Stalin into Hebrew.”

Still, he and his colleagues also knew just what to say (and in Russian) so as to make support for a Jewish state appear consistent, if not with Soviet ideology or propaganda, then with Soviet interests. And, at the moment of decision, consistent the two seemed to be. In July 1947, the second secretary of the Soviet embassy in Washington told Epstein that the Soviets knew perfectly well “that [Zionist] social experiments in collectivism have nothing to do with the Marxist interpretation of collectivism.” But, he added, the yishuv seemed to be “a peaceful, democratic and progressive community . . . which can block anti-Soviet intrigues, so easily hatched among the reactionary circles ruling the Arab countries at present.”

Would this transformation in the Soviet view have occurred without years of activist Zionist diplomacy? And would it have occurred in time? Historians might differ. But Zionist leaders had no doubt: somehow, they had tipped the scales.

 

VI. Why the Soviets Turned on Israel

 

Summarizing the support given the Zionists by the Soviet Union, Walter Laqueur wrote that “without it they would not have stood a chance.” Yet that support never became the foundation of a lasting alliance. Indeed, already by 1949, the Soviet Union and Israel were headed for a collision. What went wrong?

If it is true that the Soviet aim was to push Britain out, then by 1949 this aim had been achieved. Israel had won a decisive military victory and had even conquered the Negev, which Britain had hoped to keep as a bridge between Egypt and Transjordan. Britain’s final exit from the Middle East would take another decade, but its retreat began with the creation of Israel. As far as Soviet strategy was concerned, it was “mission accomplished.”

But the Soviets didn’t just withdraw support; they were becoming openly hostile. Driving the pendulum back were a number of factors, including Stalin’s increasingly severe paranoia on all fronts. And then there was a domestic problem where Soviet Jews were concerned.

During the war, Zionist leaders had assured Soviet authorities that the country’s Jews were out of bounds for Zionist proselytization. “I’m not worried about [Soviet Jews],” Weizmann had told Maisky at their first meeting.

They are not under any threat. In 20 or 30 years’ time, if the present regime in your county lasts, they will be assimilated. . . . Soviet Jews will gradually merge with the general current of Russian life, as an inalienable part of it. I may not like it, but I’m ready to accept it: at least Soviet Jews are on firm ground, and their fate does not make me shudder.

But when Gromyko in 1947 announced the turn in Soviet policy, a wave of euphoria swept Soviet Jewry. From synagogues to labor camps, Jews openly expressed their Zionist yearnings. This fever only intensified upon the partition resolution, the declaration of the state, and finally the arrival of Golda Meir as Israel’s first envoy in September 1948. On her first sabbath in Moscow, tens of thousands of Jews filled the streets around the city’s main synagogue, and they did so again on the Jewish New Year and Yom Kippur. Meir gave a vivid description of the scene in her memoirs:

A crowd of close to 50,000 people was waiting for us. For a minute, I could not grasp what had happened—or even who they were. And then it dawned on me. They had come—those good, brave Jews—in order to be with us, to demonstrate their sense of kinship and to celebrate the establishment of the State of Israel. . . . Someone pushed me into a cab. But the cab couldn’t move either, because the crowd was cheering; laughing, weeping Jews had engulfed it. . . . I stuck my head out of the window of the cab and said: A dank eich vos ihr seit geblieben Yidden (Thank you for having remained Jews.)

It was all very moving. But Mordechai Namir, the first secretary of the Israeli diplomatic mission, recalled that the spontaneous demonstration produced “a sinking feeling in our hearts because of the suspicion that the blatant conduct of the congregation had crossed the acceptable limits . . . and that we had participated in a very tragic event.”

In the wake of USSR support for Israel, a wave of euphoria swept Soviet Jewry. In response, by the end of 1948, Stalin launched a “secret pogrom” against leading Jews accused of Zionist conspiracy.

The sequel bore out these apprehensions. Gromyko had specified in his speech that “no Western European state” had assured elemental Jewish rights (emphasis added). The implication was that the rights of Soviet Jews hadn’t been compromised; for them now to be asserting the contrary by hailing Israel as their redemption caught the authorities off-guard. With each passing month they grew more alarmed at the percolation of Zionist sympathies at home.

Stalin thus had ample reason to be alarmed by the impact his own policy was having on the two-and-a-half million Soviet Jews who after the Holocaust formed the largest mass of Jews in Europe. Decades of repression had been suddenly lifted, releasing a surge of ethnic and nationalist fervor that would in turn necessitate even more brutal measures of repression. Already by the end of 1948, he had launched what one historian has called a “secret pogrom” against leading Jews accused of Zionist conspiracy.

The subsequent persecutions of the early 1950s, from the show trial and execution in Prague of Rudolf Slansky and other high-placed Jewish members of the Czech Communist party to the Moscow “Doctors’ Plot,” warrant their own grim telling. Suffice it to say that in the Soviet Union and its satellites, domestic anti-Semitism and opposition to Israel became inseparable twins.

 

VII. Zionists Prefer the West

 

Nor was it simply that Stalin deplored Zionism and hated the Jews. For its part, the mainstream Zionist leadership had no great regard for Stalin or the Soviet Union. Their preference lay with the West.

True, this did not apply to the far-left Zionist factions that in 1948 coalesced in Israel’s Mapam party. Until the Prague trials in 1952, most of its members, many of whom had also played leading roles in the yishuv’s military defense, looked favorably upon the Soviet Union. Portraits of Stalin brooded over the dining halls of some of their kibbutzim, and the KGB successfully recruited leading Mapam members as agents. But the pro-Soviet left, even at its height, did not appeal to more than 15 percent of the public—its share in Israel’s first elections in 1949—and it declined steadily thereafter.

True, too, at the height of Soviet support, a wave of gratitude had swept the yishuv as a whole. One especially astute witness was the Jewish-Hungarian author Arthur Koestler, who spent much of 1948 in Israel. Koestler, a former Communist and Comintern agent during the Spanish Civil War, owed his fame to his 1940 novel Darkness at Noon. Set in 1938 in the midst of the “Great Purge,” the book accused Stalin of criminal betrayal.

In a piece of reportage from Israel in June 1948, Koestler noted (with understatement) that “this correspondent is hardly susceptible to Stalinite leanings”:

And yet, had he suffered what people here have suffered in the past six months, while one leading Western democracy [Britain] waged an almost undisguised war on them and a second [the United States] looked on, the psychological pressure of circumstances might have turned even him into a fellow traveler [of Communist Russia]. . . . The almost weekly oscillations of American policy, and the paradox that America recognized Israel but by maintaining the arms embargo deprived it of its means of defense, increased the general feeling of bitterness and disgust with the West.

Koestler had witnessed the “spontaneous surge of sympathy and gratitude” toward the Soviet Union among Israelis. Nevertheless, to his mind, this “emotional leaning” was a transient thing. The majority of Jews in Palestine, including in Ben-Gurion’s Labor party,

realize[d] that Russia’s gesture was exclusively designed to serve her own political aims. They remembered well that for 30 years Russia had persecuted Zionism as a fascist movement. The sudden and total reversal of Soviet policy . . . was too obvious a maneuver to take them in.

For Koestler, there was no question that mainstream Zionists preferred the West; the shallow sympathy for the Soviets arose only from the West’s own reluctant reception of Israel.

That same sympathy, however, had fed a malicious narrative among American opponents of Zionism in the State Department, the CIA, and the Pentagon who asserted that a Jewish state would become a Soviet satellite, infiltrated by Soviet agents in the guise of Jewish refugees. Zionist leaders denied this claim at every turn. The first to do so was Weizmann, in a letter to Truman on the very eve of the partition vote. Weizmann cautioned the president against believing predictions “that our project in Palestine may in some way be used as channel for the infiltration of Communist ideas in the Middle East”:

Nothing is further from the truth. Our immigrants from Eastern Europe are precisely those who are leaving the Communist scene with which they do not wish to be integrated. Otherwise, they would not leave at all. Had there been a serious attempt by the Soviets to introduce Communist influences through our immigration, they could easily have done so in previous decades. Every election and all observation in Palestine testifies to the trivial hold which Communism has achieved in our community.

Not only that, but the yishuv felt a growing attraction to the United States, now home to the largest Jewish community in the world. Weizmann, once installed as the new president of Israel, assured James McDonald, the first U.S. ambassador, that “our people are democratic and realize that only through the cooperation and support of the United States can they become strong and remain free.” Ben-Gurion chimed in, telling McDonald that “Rome would become Communist before Jerusalem [would].”

McDonald agreed. “When the chips were down and Israel was forced to make her choice,” he later wrote, “that choice was almost always pro-Western.” The Soviet ambassador, Pavel Yershov, concurred, lamenting that Israel was “slid[ing] further and further toward the American position” and “might capitulate completely to the Americans, becoming a tool for the realization of their expansionist plans.”

American wariness that Israel would tip in Moscow’s direction may have figured in the very decision now celebrated as the birth of U.S.-Israel relations.

Formally, however, Israel had declared its “neutrality” between East and West: this was crucial to its efforts to extricate hundreds of thousands of Jews remaining in Soviet satellite countries. Nor did Israel’s early leaders, however much they craved the favor of United States, shy away from leveraging their Soviet ties by hinting that they might yet tip in Moscow’s direction. Weizmann himself warned that if the West “humiliated and deserted Israel in the UN and elsewhere,” its people would become “alienated” and (by implication) drift toward the Soviets. Koestler thought this quite impossible, but he worried that Ben-Gurion and Sharett were “too coy” to say so, giving rise to suspicion in Washington that Israel might “might topple over to the other side.”

In retrospect, such a scenario seems incredible. But wariness of it, and the desirability of pre-empting it, may actually have figured in the very decision now celebrated as the birth of U.S.-Israel relations. In the crucial meeting at which Truman decided in favor of immediate recognition of Israel, White House counsel Clark Clifford made the compelling argument that, by recognizing Israel first, the U.S. could “steal a march on the USSR.” One observer of the decision noted the prevalence of the “fairly well-founded suspicion that the U.S. speedy recognition was prompted primarily by fears that the Soviet Union might do it first.” Among the mix of Truman’s motives, one-upping the Soviets could not have been too far from the surface.

As Israel grew stronger, the cold-war argument became more compelling. By July 1948, Philip Jessup, the number-two in the U.S. mission to the UN, could already describe Israel as “more than a match” for any combination of Arab forces. Jessup also reported that Israel was “aware of the disadvantages to it of too close an association with the Soviet Union” and “recognize[d] that greater advantages would be gained from a closer association with the U.S. and other Western powers.” Warning that were Israel “thrown into the arms of the Soviet Union it could become a force operating to a very great disadvantage to the U.S., the UK, and other Western powers,” Jessup drew the clear conclusion: treating Israel “fairly” would transform it into “a force operating to our own advantage.”

The journey from “fair treatment” of Israel to the post-1967 strategic alliance with the United States would prove to be a long one, with many ups and downs. But it originated in the desire to keep Israel out of the Soviet orbit—an American reaction to a highly improbable scenario that was itself made plausible only by Stalin’s surprising but consistent support for the Jewish state at the moment of its birth. That being the case, perhaps there is another reason for Israel to thank Stalin: he inadvertently helped Israel build its first bridges to United States.

 

VIII. Lessons for Today

 

In 1961, the Soviet foreign ministry published a volume of basic documents on Soviet-Arab relations. Although Gromyko himself chaired the publication committee, none of his UN speeches in support of Israel appeared in the book. Nor did his 1988 Russian-language memoirs mention the fact of Soviet support for Israel in 1947 and 1948, or his role in proclaiming it. The Soviets wanted nothing more than to forget the entire episode, and so encourage their Arab clients to do the same. “Israel has turned out badly,” reflected Molotov in his last years, when asked about Soviet support for its establishment. “But Lord Almighty! That’s American imperialism for you.”

Thankfully, a few diligent historians have done much over the past two decades to unearth the record and tell the story in detail. In mustering evidence for this essay, I’ve relied largely on their efforts. They include, most notably, Yaakov Ro’i, Arnold Krammer, and Uri Bialer, whose detailed book-length accounts appeared before the fall of the Soviet Union; and Gabriel Gorodetsky, Benjamin Pinkus, and Laurent Rucker, who in the aftermath of the regime’s collapse plumbed accessible archives to add many new dimensions. What with important scholarly articles by others also filling gaps, the story is there for all who seek it.

And yet, too few do. Both Israeli diplomats and American Zionists prefer to tell the same simple tale reflected in Ambassador Danon’s statement: “From the moment President Truman became the first world leader to recognize the new Jewish state, Israel has had no better friend that the United States of America.” Everyone likes the story of a 70-year love affair between scrappy little Israel and the world’s greatest superpower and democracy. But as we have seen, this statement, however accurate it would become in later years, was untrue in the earliest ones when, as Abba Eban attested from his experience as Israel’s first ambassador to the UN, the Soviets were “more constant in their assertiveness in support of Israel than even the United States.”

Unfortunately, this historical misrepresentation exacts a cost. First, it tends to obscure the real significance of the international legitimacy conferred on Israel by the partition vote. Yes, it took heroic efforts by partition’s supporters, including the United States, to round up the required two-thirds “yes” votes in the General Assembly. But the successful outcome was due to the fundamental fact that both of the victorious great powers, the United States and the Soviet Union, supported partition and the creation of a Jewish state. This convergence created the updraft that drew in the others.

Abba Eban regarded partition as “the first American-Soviet agreement in the postwar era.” That it was an agreement over the creation of the Jewish state suggests just how deep lie the foundations of Israel’s international legitimacy. Many Arab apologists still seek to demonstrate that this or that ballot in the General Assembly was obtained through threat or barter, and it is true that in November 1947, advocates of partition pulled out all the stops. But with both superpowers aligned, it required a special animus against Zionism to prompt a “no” ballot. With few exceptions, this existed only in countries with Muslim majorities.

Second, the false idea that the United States was Israel’s “best friend” in 1948 subtracts from the debt owed to the first Israelis themselves. It would have been much easier to defeat the Palestinian Arabs, and even the combined Arab forces, with the backing of the world’s greatest power. But Israel didn’t enjoy that backing. Sharett, in a meeting with secretary of state George Marshall, spoke bluntly to this point (as summarized by Israel’s first cabinet secretary, Zeev Sharaf):

The United States, [Sharett] continued, had not helped to establish the state; [it] had assisted only by taking part in the vote at the United Nations, and this would not be forgotten. But we, the Jewish people, he said, were carrying on the fight in Palestine ourselves without any aid whatever. We had asked for arms, but they had not been given; we had asked for military guidance, but it had been withheld; finally, we had asked for armor plating for buses, but even this had been refused. Whatever we had secured was with our own capacities alone.

Sharett was too diplomatic to remind Marshall of just what, by contrast, the Soviets had done for Israel.

In May 1949, Truman sent a threatening letter to Ben-Gurion criticizing Israel’s postwar position on borders and refugees. Truman mentioned that the American government (and people) had “given generous support to the creation of Israel.” In his diary, a fuming Ben-Gurion derided this claim, discounting even U.S. support of partition:

The state of Israel was not established as a consequence of the UN resolution. Neither America nor any other country saw the resolution through, nor did they stop the Arab countries (and the British mandatory government) from declaring total war on us in violation of UN resolutions. America did not raise a finger to save us and, moreover, imposed an arms embargo, and had we been destroyed they would not have resurrected us.

The founders of Israel would thus have scoffed at the idea that the United States government stood squarely by the new state at its creation. Israel’s existence, they believed, was owed entirely to their own courage and grit—and to crates of guns sent by order of Stalin, purchased with millions of dollars sent by American Jews.

Telling the partition story as “America-to-the-rescue” robs it of its most important lessons. Zionism’s early leaders never said never, and never took “no” for an answer.

Third, telling the partition story as “America-to-the-rescue” robs it of its most important lessons. The genius of Zionist diplomacy, in 1947 as in 1917, resided in accurately detecting the rise and decline of powers, and in exploiting their competitive rivalries. The Zionists had too much experience to rely on the friendship of any one power. Indeed, it might be said that Zionism insisted that the Jews had no steadfast “best friends” at all. World wars, revolutions, collapsing empires—Zionism’s leaders saw no constants in international affairs, and they relentlessly probed world capitals for the first signs of shifts in policy and power. In practicing a diversified diplomacy, the Zionists never said never, and never took “no” for an answer.

No Zionist today would think to celebrate the partition vote by praising the wise foresight of Comrade Stalin. But it would be a missed opportunity (and bad history) to celebrate it only by hailing Truman, the would-be Cyrus. On that day, the world welcomed the establishment of a Jewish state in Palestine. It happened because shrewd and persistent Zionist statesmen and diplomats persuaded the leaders of both increasingly antagonistic great powers that a Jewish state would serve the interests of each.

“In terms both of Soviet and of American policy,” wrote Paul Johnson in the 1998 essay I quoted at the outset, “Israel slipped into existence through a window that briefly opened, and just as suddenly closed.” It was Zionist statesmanship—critically coordinated with Zionist arms—that opened the window just wide enough, and kept it open long enough, for Israel to enter. Surely this achievement is the one that deserves to be remembered and celebrated in Flushing Meadows 70 years to the day. The saga of the partition vote, far from being a singularly American story, is a reminder that Israel must remain ever-nimble in maneuvering among the powers, and not rely exclusively on a single one. This was crucial at Israel’s birth, and might prove crucial again.

Finally, there is yet another cause for reflection as Israel approaches its 70th anniversary. In the early years of the 20th century, the Zionist and the Russian revolutions occurred in tandem. They arose from related discontents, in much of the same geographic space. Not surprisingly, they both competed for the allegiance and energies of Jews. The Soviet Union lasted almost 69 years to the day, from 1922 to 1991. As of this year, the state of Israel has lasted longer, and it continues to flourish. Israel won the war for the Jews, as surely as the United States won the cold war.

The Soviet legacy is damnable with regard to Israel, too. The Soviet Union later armed and incited the Arabs to wage wars on Israel that drew blood and inflicted suffering. But let Israel record two credits to the ledger of that calamitous 20th-century regime. First, as Israel’s founders attested and as this essay has shown, the Soviet Union gave vital support to Israel at its birth. Second, it saved millions of Jews from otherwise certain destruction by the Nazis—Jews who, with their descendants, would crucially augment the population of Israel upon the eventual Soviet collapse.

This does not mitigate the crimes perpetrated by Stalin, whose barbarity sometimes rivaled Hitler’s. It is a reminder that while Israel should always prefer the good company of the righteous, the others must not be neglected.


Tuesday, March 5, 2024

3638. Ernest Mandel, Revolutionary Cuba and Che Guevara

By Eric Toussaint, CounterPunch, January 12, 2024 

Ernest Mandel and Ernesto Che Guevara

Introduction

The 20th century was marked by victories of social revolutions with a socialist character: in the Czarist Empire in 1917, Yugoslavia in 1945, China in 1949, Vietnam in 1954 and 1975, Cuba in 1959, Algeria in 1962, and Nicaragua in 1979. This sparked major public debates among revolutionaries in these countries over the most effective way to achieve a transition from capitalism to socialism. Between 1918 and 1926–1927, this was especially the case in Soviet Russia and the USSR, with Vladimir Lenin, Leon Trotsky, Yevgeni Preobrazhensky, and Nicholai Bukharin making the most significant contributions. In Yugoslavia in the 1950s and 1960s, there was a less public discussion of the country’s socialist transition than there had been in the USSR in the 1920s. In Cuba, following the 1959 victory, a great public debate on the nature of the economy was initiated in 1963–1965 with Ernesto Che Guevara, Alberto Mora, Ernest Mandel, and Charles Bettelheim. Some of the points discussed were the financing of public sector enterprises, the role of the market and of planning, the part played by the law of value, the role of banking and credit, the respective places of individual and collective moral or material incentives, and the role of consciousness. Mandel tried to introduce into the debate the question of socialist democracy and workers’ power.

The various attempts to move towards a socialist society aroused great expectations among hundreds of millions of people. There were vigorous debates on the major economic, social and political choices to be made in the move towards socialism, including among leftists in industrialized countries, even though none of these nations had ever had a victorious socialist revolution themselves. Setbacks, backsliding, betrayals, and degeneration eventually led to capitalist restoration in most cases, except in Cuba, which has remained non-capitalist.

The present study looks back at the great debate in Cuba from 1963 to 1965. All the contributors refer to policies to be implemented after a revolutionary victory so as to move from capitalism to socialism, and hopefully communism. The debate that played out in Cuba stretched far beyond the Cuban context. That is why it is so important to understand it in all its relevance to the present. What is the place of the market in the economic policies to be pursued in the future after an anti-capitalist revolutionary upheaval and the beginning of a transition to socialism? To answer this question, Ernest Mandel’s and Ernesto Che Guevara’s contributions are indispensable. Why is the issue of socialist democracy essential? Ernest Mandel’s contribution is indispensable. For reasons of space, we will limit ourselves here to the Great Debate that took place in Cuba, while recognizing the need to examine the later contributions of Ernest Mandel and other authors on the issue of the transition to socialism.

Ernest Mandel and Cuba

Ernest Mandel’s (1923-1995) Traité d’économie marxiste published in French in 1962 and in 1968 in English as Marxist Economic Theory [1]had a significant international impact. It was translated, studied, and reviewed in Cuba, among many other countries. Ernesto Che Guevara (1928-1967), who was then the Minister of Industry, received a copy in French at the end of 1962[2] and had it translated for his colleagues and other officials in the Cuban government. Clearly, he had a very favorable appreciation of the book. At the end of 1963 Guevara also read an article by Mandel on the Great Economic Debate that had just begun in Cuba that year. The title of this article was explicit: The Law of Value in Relation to Self-Management and Investment in the Economy of the Workers’ States, Some remarks on the discussion in Cuba. It was translated into Spanish by a young Cuban Trotskyist who worked at the Cuban Ministry of Foreign Affairs (Minrex). It had been published in World Outlook, a weekly news bulletin published by the United Secretariat of the Fourth International in Paris since September 1963 (World Outlook, Vol. 1, no. 14, 27 December 1963) as well as in the francophone journal Quatrième International in March 1964 (Revue QI n°21, 1st quarter 964, p. 20-28). In it, Mandel, under the pen name Ernest Germain[3], sided with Che’s positions. This is probably why Che invited him to Cuba in the spring of 1964.

What position did Ernest Mandel support in this article?

At the beginning of the article, Mandel sets out the main tenets of the Great Debate that had started in mid-1963. He refers to the writings of the two protagonists, namely Ernesto Che Guevara and Alberto Mora, mentions the issues dealt with, and emphasizes its historic impact.

“The Cuban magazine Nuestra Industria – Revista Economica, organ of the Ministry of Industry, published two polemical articles in issue No 3 (October 1963) of great interest, one written by Ernesto Che Guevara and the other by Comandante Alberto Mora, Minister of Foreign Trade. This polemic testifies to the vitality of the Cuban Revolution in the field of Marxist theory, too. It deals with a number of questions of the utmost importance in the construction of a socialist economy: role of the law of value in the economy during the epoch of transition; autonomy of enterprises and self-management; investments through the budget or by means of self-investment, etc. Involved in these issues is the problem of the ideal model for the economy in the epoch of transition from an underdeveloped country, a problem of absorbing interest to the Bolsheviks during the 1923-1928 period and which arose again, even if on a rather low theoretical level, in Yugoslavia, Poland and even in the Soviet Union in recent years.”

In the second paragraph Mandel criticizes Joseph Stalin’s position, which Alberto Mora used as a basis for his debate with Che Guevara:

“The question of the application of the theory of value in the planned and socialized economy of the epoch of transition has been subjected to the worst confusion, mainly because Stalin, in his last work, posed it in a both gross and simplistic way: ‘Does the law of value exist [sic] -and does it apply in our country?… Yes, it exists there and it applies there.’ This is an evident truism. To the extent that exchange occurs, commodity production survives, and exchange is thereby objectively governed by the law of value.”

Mandel immediately questions Stalin’s view because various major protagonists in the debate explicitly based themselves on Stalin’s analysis and politics, whose influence was still felt though he had died ten years earlier. Marxist manuals of dogmatic Stalinist inspiration published in Moscow are widely distributed and rarely criticized.[4] Among the protagonists in the debate that draw on Stalin, in addition to Alberto Mora, Minister of Foreign Trade,[5] we find Charles Bettelheim, an economist who was then close to the French Communist Party.

I am going to reiterate the main points of Mandel’s arguments because they are most useful for anyone examining the issues facing revolutionary forces that have achieved power and truly want to start a transition towards socialism and, in the case of so-called developing countries, to put an end to under-development and subordination to imperialist capitalist powers.

Mandel explains “In a developed capitalist economy, the law of value determines production through the play of the rate of profit. Capital flows toward the sectors where the rate of profit is above the average and production increases there. Capital recedes from the sectors where the rate of profit is below the average, and production decreases there (at least relatively). When the means of production are nationalized, so that there is neither a market for capital nor its free entry and withdrawal, nor even the formation of an average rate of profit with which the rate of profit of each particular branch can be compared, clearly there is no longer a possibility for the ‘law of value’ to be directly the ‘regulator of production’.”

Mandel goes on to discuss the case of a country such as revolutionary Cuba in 1963. The scope of the orientation he concludes with goes far beyond that country. It is actually quite relevant to our times, which is why I am quoting it extensively.

“If in an underdeveloped country which has carried out its socialist revolution the ‘law of value’ were to regulate investments, these would flow preferentially toward the sectors where profitability is the highest in relation to prices in the world market. But it is precisely because these prices determine a concentration of investments in the production of raw materials that these countries are underdeveloped. To overcome underdevelopment, to ‘industrialize the country’ means to deliberately orient investments toward the sectors that are least ‘profitable’ for the time being according to the law of value, but more profitable according to the criterion of the long-term economic and social development of the country as a whole. When it is said that the monopoly of foreign trade is indispensable for industrializing the underdeveloped countries, this means precisely that it cannot be accomplished without deliberately violating the law of value. [. . .]

“In an underdeveloped country, and precisely because of its underdevelopment, agriculture tends from the beginning to be more ‘profitable’ than industry, handicrafts and small industry more ‘profitable’ than big industry, light industry more ‘profitable’ than heavy industry, the private sector more ‘profitable’ than the nationalized sector. To channel investments according to the ‘law of value,’ that is, according to the law of supply and demand of commodities produced by different branches of the economy, would imply developing monoculture for the export trade as a priority; it would imply preferential construction of small enterprises for the local market rather than steel plants for the national market, the construction of comfortable lodgings for the petty-bourgeois or bureaucratic layers (an investment corresponding to ‘effective demand’) would have priority over the construction of low-cost homes for the people which clearly-must be subsidized. In short, all the economic and social evils of underdevelopment would be reproduced despite the victory of the revolution.

“In reality, the decisive meaning of this victory, of the nationalization of the means of industrial production, of credit, of the transportation system and foreign trade (together with the monopoly of the latter), is precisely to create the conditions for a process of industrialization that escapes from the logic of the law of value. Economic, social and political priorities, consciously and democratically chosen, take the lead over the law of value in order to lay out the successive stages of industrialization. Priority is placed not on immediate maximum returns, but on the suppression of rural unemployment, the reduction of technological backwardness, the suppression of the foreign grip on the national economy, the guarantee of the rapid social and cultural rise of the masses of workers and poor peasants; the rapid suppression of epidemics and endemic diseases, etc., etc.”

Mandel disagreed with the view of Alberto Mora (and of Bettelheim and others, see below) concerning the law of value, asserting that we should not be subjected to it. In his article he used one of Trotsky’s phrases, who in a polemical text against Stalin called for violation of the law of value: “planned economy of the transition period, even though based upon the law of value, violates it at every step and creates mutual relations between different branches of industry and primarily between industry and agriculture on the basis of unequal exchange. The decisive lever of compulsory accumulation and planned distribution is the government budget. With further development, its role will have to grow.” (Leon Trotsky, Stalin as a Theoretician, March 1930).

We shall see below that Che Guevara had adopted the same position as that expressed by Trotsky and Mandel on the fundamental part played by the State budget and central planning as levers for the transition to socialism. In this he stood against the positions of Alberto Mora, Charles Bettelheim and others such as Carlos Rafael Rodríguez et Blas Roca (see below), who took up the reforms being implemented in Eastern Europe and the USSR.

The reforms wanted by the economists of the Moscow regime and also by Yugoslav economists (despite being opposed to Moscow) insisted on self-financing of enterprises. Indeed, both in Yugoslavia and in Moscow and the Soviet Bloc, the big idea was to allow companies to sail free from centralized planning and keep a larger portion of their income to finance their own development.

In his article Mandel analysed this ongoing state of affairs.

It must be noted that at the time of the Great Debate, the model of management and economic calculation imported from the Eastern Bloc, and in particular Czechoslovakia, was applied in the Cuban economy, for which Alberto Mora (Minister of Foreign Trade) and Carlos Rafael Rodríguez (head of the Institute of Agrarian Reform) were responsible. This model was referred to in various ways: financial autonomy, self-finance or economic calculation. But Ernesto Che Guevara, with the government’s agreement, had implemented a different model called the model of financing through the State budget (in Spanish sistema de financiamiento presupuestario). The two models existed side by side and those who advocated the model from the Eastern Bloc questioned the one upheld by Ernesto Che Guevara and tried to move the country out of it while Che Guevara wanted to extend it and prove its validity and superiority in the way it reinforced the transition towards socialism.

Not to submit to the law of value does not mean disregarding it

Before we come to the question of the priority given by Che Guevara and Mandel to financing through the State budget, as opposed to the priority given by others to self-financing by companies and recourse to bank loans, it is important to specify that Mandel affirmed that although we should not submit to the logic of the law of value, we should not ignore it.

Mandel gave the following reasons why the law of value should not be disregarded:

“To violate the law of value is one thing; to disregard it is something else again. The economy of a workers’ state can disregard the law of value only at the price of losses to the economy which could be avoided, of useless sacrifices imposed on the masses, as we shall later demonstrate.

“What does this mean? In the first place that the whole economy must be carried on within the framework of a strict calculation of the real costs of production. These costs will not determine investments; these will not automatically go toward ‘the least costly’ projects. But to know the costs means to know the exact amount of subsidies which the collectivity grants the sectors which it has decided to develop by priority. In the second place that it is necessary to have a stable yardstick for these calculations; without stable money, no rigorous planning. In the third place that the sectors where economic or social priorities do not dictate any preference are to be actually guided by the ‘law of value’ (for example, different crops aiming at the domestic market). In the fourth place, so long as the means of consumption  remain commodities, and aside from the commodities and services deliberately subsidized or distributed free by the state (pharmaceutical product, school and training materials, books, etc.), the preferences of the consumers will freely operate on the market, the law of supply and demand will affect prices, and the plan will adapt its projected investments to these oscillations (within the limits of what is available in finances, equipment, raw materials, etc.).”

Here again, Mandel’s position concurs with that of Che Guevara.

Among the points under discussion, Mandel and Che Guevara took the same view on another question: they both considered that the products that nationalized companies exchanged between each other, for example machines, were not merchandize, commodities. A company that acquired a machine from another company did not buy that machine as though it were being sold on the market. It was a non-market exchange within the nationalized sector. Thus, they both considered that the law of value did not prevail within the State or public sector. On the other hand, if a public company were to buy or sell machines or other goods to a small or middle-sized private company, then you could talk about selling merchandize or a commercial relationship[6].

At the end of this part of his article, Mandel wrote, “On all these questions, Che Guevara is entirely right against Mora.”

One of the implications of the position advocated by Mandel and Che is that, within the public sector (state or nationalised), the government must avoid considering that companies sell goods to each other and make profits from their exchanges. Rigorous accounting must be kept in terms of costs, not profits in the capitalist sense, and the directors of state-owned companies must not be allowed to have their hands on a significant part of their earnings.

In the second part of the article, Mandel discusses foreign trade. It would take too long to summarize what he says here, although it is extremely interesting. I recommend reading the whole article.

In the third part, Mandel broaches the question of the autonomy of decision-making at the enterprise level. He analyses two different situations: Yugoslavia on the one hand, and on the other the USSR and other countries of the Socialist Bloc (especially Poland, Czechoslovakia and East Germany). Remember that Yugoslavia had been excommunicated by Stalin in 1948 and followed a different path from that of the pro-Moscow Bloc.

Yugoslavia had generalized self-management at the firm level[7], which was not the case in the Soviet Bloc.

In the years running up to Cuba’s Great Economic Debate, despite substantial differences between Yugoslavia and the Soviet Bloc, there was a clear evolution towards greater autonomy for enterprises.

In the case of Yugoslavia, self-managed enterprises were entitled to keep a bigger and bigger share of revenue to reinvest as they chose. Mandel emphasizes that: “[t]he Yugoslav authors have even formulated with regard to this a veritable new dogma which requires critical analysis: ‘Without the right of the self-management collectives to dispose of a considerable part of the social surplus product, [there can be] no genuine self-management.’”

As for the USSR, the evolution consisted of giving company directors more autonomy in how revenue was used.

Mandel warned of the dangers of the path the Yugoslav government was following. But the value of what he wrote is that it was more widely applicable.

He wrote:

“The more backward a country is, the more conditions of almost universal scarcity rule not only in the means of production sector but also for much of the industrial means of consumption (at least for the great majority of the population), and the more detrimental the practice of self-investment is, the more detrimental it is to permit the self-management collectives to determine for themselves the projects for priority of productive investments.

“It is evident in fact that under conditions of almost general scarcity of industrial commodities, almost all the investment projects can be economically profitable, no matter how gross the economic errors that are committed. Almost every profitable industrial or agricultural enterprise (providing funds for investment) is like an island in a sea of unsatisfied needs. The natural tendency of self-investment is therefore to attend to what is most pressing, both locally and in each sector.

“In other words: if the self-management enterprises hold large funds for self-investment, they will have a tendency to orient their investments either toward the commodities which they lack the most (certain equipment goods; raw materials; auxiliary products; emergency sources of energy), or toward the commodities which their workers or the inhabitants of the area lack the most. Thus, criteria of local or sector interest are placed above national interests, not because the law of value is ‘denied,’ but precisely because it is applied! This means, once more, to orient industrialization toward the ‘traditional road’ which it followed in the historic framework of capitalism, in place of reorienting it according to the requirements of a nationally planned economy.”

Mandel goes on:

“Since an underdeveloped economy is characterized precisely by the fact that the enterprises of high productivity are still the exception and not the rule, it is sufficient to leave them a part of their net surplus product and the inequality of development between the industrialized localities and the non-industrialized localities, the inequality of development and of revenue between archaic enterprises which enjoy only an average level of productivity and enterprises [that are] technologically ‘up to date’ will increase instead of diminishing. It is necessary, moreover, to insist on this fundamental idea of Marxism: any economic freedom, any “autonomy of decision” and any ‘spontaneity’ increases the inequality so long as there exist side by side strong and feeble enterprises or individuals, rich and poor, favored and unfavored from the point of view of location, etc.”

This dangerous tendency pointed out by Mandel gathered speed and was one of the causes of the break-up of the Yugoslav Federation in the early 1990s.

To return to Yugoslavia at the time of the Great Debate, Mandel considers that priority should be given to financing enterprises with the State budget:

“The economic logic of a planned economy therefore speaks completely in favor of productive investment by budgetary means at least for all the big enterprises. What must be left to the enterprises is an amortization fund sufficiently large to permit modernization of equipment with each renewal of fixed equipment (gross investment). But all net investments should be made in accordance with the plan, in the branches and places chosen according to preferential criteria selected for the society and its economy as a whole.”

He adds: “In this respect, too, the thesis of Comrade Guevara is correct.”

Mandel then comes to an argument put forward by those in Yugoslavia who wanted greater autonomy for enterprises and a greater part of their earnings left at their disposal. According to Mandel, support for this argument was based on the idea that “decentralization of the decisions on investment would be a powerful guarantee against bureaucratization.”

Mandel however saw it differently:

“This thesis is based on a fallacy. The Yugoslavs are right in stressing that the power of the bureaucracy grows in relation to its freedom in disposing of the social surplus product. But the technicians and economists of the planning commission ‘dispose’ of the surplus product only in the form of figures on paper; the real power of disposal is situated at the level of the enterprise. The more resources other than consumption funds (distributed revenues and social investments) are left at the free disposal of the enterprises, the more bureaucratization is stimulated, at least in a climate of generalized scarcity and poverty; also, the greater the temptation becomes for corruption, theft, abuse of confidence, false entries – temptations that do not exist at the level of the planning commission, if only because of multiple checks. The concrete experience of Yugoslav ‘decentralization’ has shown, moreover, that it is an enormous source of inequality and bureaucratization at the level of the enterprises.”

Regarding ongoing reforms in the USSR at the time, Mandel merely alluded to the fact that the greater autonomy that enterprises wanted and the bigger share of the revenue they would be allowed to keep would actually serve the interests of bureaucrats, especially company directors, who sought to increase their own income and improve their lifestyle.  Mandel responded to theses upheld in the Soviet Union, notably by the economist Evsei Liberman: “The reforms which have been put into practice in the USSR, as a result of the Liberman-Trapeznikov proposals, are not limited in their consequences solely to a considerable increase in the incomes of the bureaucrats; they are often accompanied by an increase in their powers and prerogatives within the enterprises as well.”

Mandel developed this criticism, particularly in March 1965, in the review Quatrieme Internationale[8].

The vital question of Socialist democracy

Next, Mandel pleads for socialist democracy and tries to convince his Cuban interlocutors that the question is of vital importance.

Mandel begins by asking: “But doesn’t the possibility of complete centralization of the means of investment at the state level create the danger of the economic policy as a whole favoring bureaucracy, as was the case in Stalinist Russia?”

And immediately answers: “Obviously. But then the cause does not reside in the centralization itself; it lies in the absence of workers’ democracy on the national political level.”

He then quotes Trotsky for the second time in the article:

 “Only the co-ordination of three elements, state planning, the market and Soviet democracy, can assure correct guidance of the economy of the epoch of transition and assure, not the removal of the imbalances in a few years (this is utopian), but their diminution and by that the simplification of the bases of the dictatorship of the proletariat until the time when new victories of the revolution will widen the arena of socialist planning and reconstruct its system.”[9]

Mandel adds:

“This means that a genuine guarantee against bureaucratization depends on workers’ management at the enterprise level and workers’ democracy at the state level. Without this combination, even the autonomy of the enterprises will eliminate none of the authoritarian, bureaucratic and (often) erroneous features of economic decisions made at the government level of the plan. With this combination, the centralization of investments – priorities being democratically established, for example through a national congress of workers’ councils – would not encourage bureaucratization, but, on the contrary, suppress one of its principal sources.”

On this crucial issue, Mandel was not able to draw on Che Guevara’s position as the latter did not directly broach the matter. What is clear is that Mandel tried, in the discussions they had in Cuba, to convince Guevara of the need to adopt policies favourable to workers’ management at enterprise level, workers’ democracy at State level and the importance of setting up a national congress of workers’ committees; in other words, the importance of building a socialist democracy.[10]

Ernest Mandel’s first visit to Havana in March-April 1964

Mandel’s visit lasted seven weeks; his programme was intense. Mandel had followed events in Cuba closely.

Ernest Mandel met Che Guevara on several occasions. It was Che who had called upon him to take part in the ongoing debate within the Cuban leadership and the Cuban government. The debate involved people with ministerial portfolios from the former Stalinist, pro-Moscow Communist Party – people like Carlos Rafael Rodríguez, or political leaders like Blas Roca, president of the PSP and director of the daily newspaper Hoy. For years, the former Communist Party, known as the Popular Socialist Party (PSP), had been criticising the petit-bourgeois leftist nature of the 26th of July Movement founded and led by Fidel Castro; but then in the middle of 1958, six months before victory, it decided to join the insurrectionary movement .

On the Popular Socialist Party (PSP) 

Here is how the official organ of the Stalinist PSP analysed the attack on the Moncada Barracks at Santiago de Cuba in July 1953:

“On 26 July, the bourgeois-latifundista, pro-imperialist clique that was imposed on the country by the reactionary coup of 10 March 1952 in fact succeeded in carrying out another coup, this time aimed at accentuating the reactionary nature of its government and eliminating many obstacles to the completion of its plans.

Sterile and erroneous, the Eastern rebellion, whose high point was the assault on the barracks at Santiago de Cuba and Bayamo, easily put down by the regime’s military forces, provided the pretext – despite the good intentions its instigators may have had – for sweeping away any remaining shreds of legality and for coming down with full force on the mass democratic movement, which at the time was developing and becoming a serious threat to all the government’s plans. […] It has been well established that our party not only did not participate in the events in the Oriente, but also that it is opposed to these bourgeois putschist tactics, because they are false, because they take place outside the masses, because they compromise the struggle of the masses, who alone are capable – via their natural development into the highest and most militant forms – of leading the way to victory against reaction and imperialism” (excerpt from the report presented by A. Díaz on behalf of the national executive commission at the plenary session of the national committee of the PSP on 6 April 1954; in Michaël Löwy, Le Marxisme en Amérique latine, Anthologie; Paris: Maspero, 1980, p. 261–263; translation CADTM)

Fernando Martínez sums up PSP’s attitude regarding the goals of the struggle in Cuba prior to the victory in January 1959 in these terms: “agrarian,” “anti-imperialist,” “against residual feudalism,” “for national development,” etc. According to them, there was also a need to seek out and find a national bourgeoisie who could play a positive, active role against the camp made up of pro-imperialists of the international market and feudal or semi-feudal forces of the countryside. It would be a national, positive bourgeoisie against the comprador bourgeoisie. But History was to decide otherwise. (see Fernando Martínez Heredia and  Éric Toussaint, “Du 19e au 21e siècle : une mise en perspective historique de la Révolution cubaine” (From the 19th to the 21st century: a historical perspective on the Cuban Revolution), interview conducted in 1998) https://www.cadtm.org/Du-19e-au-21e-siecle-une-mise-en [available in French or Spanish]

Following the revolutionary victory in 1959 the PSP, swearing allegiance to the Stalinist doctrine of revolution in stages, strongly opposed the socialist turn taken by the Cuban Revolution. One citation illustrates this orientation clearly:  in August 1960, when the revolutionary Cuban government began to intervene in the operation of enterprises and to expropriate the big landowners, Blas Roca, secretary-general of the PSP, had the following to say at the party’s Eighth National Assembly:

“In the current, democratic and anti-imperialist stage, it is necessary – within limits that are to be established – to guarantee the profits, the operation and the development of private enterprise […] There have been excesses; there have been abusive interventions which could have been avoided. […] Intervening in the operation of an enterprise or a factory without sufficient reason does not help us, because it creates irritation and turns against the Revolution […] those elements of the national bourgeoisie which must and can be kept on the side of the Revolution at this stage […].” Blas Roca.[11]

In 1962, a serious conflict broke out between Fidel Castro and the old guard of the PSP. The latter, thinking that the time had come for it to “reclaim” the revolution for their own benefit, and strengthened by the increasingly close relations established with the Eastern bloc, set about infiltrating the Integrated Revolutionary Organizations (ORI), which were intended by Castro as an intermediate stage toward the creation of the United Party of the Cuban Socialist Revolution (PURSC). The “struggle against sectarianism” rapidly put an end to these notions for the time being. Moscow did not intervene in the dispute. In the struggle for supremacy over the Communist world against China, beginning in the early 1960s, the Soviet Union could not afford to haggle over its support for the first Socialist government in Latin America, especially since that government enjoyed a certain prestige within the Third World.

Fidel Castro on the ORI crisis:

“…were we really forming a true Marxist party? […] We were not integrating the revolutionary forces. We were not organizing a party. We were organizing or creating or making a straitjacket, a yoke, compañeros. We were not furthering a free association of revolutionists, rather we were forming an army of tamed and submissive revolutionists. […] The compañero who was authorized — it is not known whether he was invested with the authority or whether he assumed it of his own accord, or whether it was because he had slowly begun to assume leadership on that front, and as a result found himself in charge of the task of organizing, or of working as the Secretary in Charge of Organization of the Integrated Revolutionary Organizations. […] the one who despite this fell, who regrettably, most regrettably, fell into the errors we have been enumerating, was the compañero Anibal Escalante. […]We believe that Anibal Escalante’s actions in these matters were not the product of oversight nor were they unconscious, but rather that they were deliberate and conscious. […]And what was the nucleus? Was it a nucleus of revolutionists? The nucleus was a mere shell of revolutionists, well versed in dispensing favors, which appointed and removed officials and, as a result of this, it was not going to enjoy the prestige which a revolutionary nucleus should enjoy, a prestige born solely from the authority which it has in the eyes of the masses, an authority imparted to it by the example which its members set as workers, as model revolutionists. Instead of coming from these sources, the authority of the nucleus came from the fact that from it one might receive or expect a favor, some dispensation, or some harm or good. And as was to be expected, around the nucleus conditions were being created for the formation of a coterie of fawners, which has nothing to do with Marxism or with socialism. […] …that obsession with command, that mania for giving orders, that mania for governing […] took possession of a certain compañero (…) Then how were the nuclei of the Integrated Revolutionary Organization (ORI) formed? I’m going to tell you how. In every province the general secretary of the PSP was made general secretary of the ORI…”  (Source: Fidel Castro Denounces Bureaucracy and Sectarianism (Speech of March 26, 1962), New York: Pioneer Publishers, 1962).

Following this major conflict, Anibal Escalante was sidelined and sent to Czechoslovakia for two years, but the PSP retained strong influence in various key ministries, in the security services, in trade unions, and in the press and the training apparatus.

Note that a book published in Havana in 2006 entitled Apuntes críticos economía política contains a series of texts by Che Guevara and minutes of internal meetings of the leadership of Cuba’s Ministry of Industries. At one of these meetings, held on 22 February 1964, Guevara said the following about the Anibal Escalante affair:

“The fundamental error Anibal made, an error that needs to be analysed more in depth, was not Anibal’s personal aspirations. That is a personal matter, a personal misstep, which would not have resulted in major problems were it not for the fact that Anibal, in his position as Organising Secretary, needed to control all apparatuses of the party, which had become executive apparatuses. As a result all ideological control depended on a series of gentlemen who were both executives and controllers, which was impossible.” [12]

Beginning in early October 1967, a large segment of former PSP members directed by Anibal Escalante, who had returned from exile, was denounced by Fidel Castro for having organized a micro-faction within the Communist Party, founded in October 1965. Some forty members of this micro-faction were arrested, tried and sentenced to prison. They were accused of factional activities linked to the Soviet Embassy, as well as those of Czechoslovakia and East Germany. Anibal Escalante was sentenced to 15 years in prison in January 1968, but was released in 1971. Eight of the defendants were sentenced to 12 years, eight to ten years, six to eight years, five to four years, six to three years and one to two years. As an additional sign of Cuba’s distancing from Moscow, Fidel Castro announced that the Cuban Communist Party would not attend the meeting of pro-Moscow parties held in Bulgaria in March 1968. In several speeches from 1968, he harshly criticized the manuals published by Moscow. Anticipating possible reprisals by Moscow, the Cuban government gave orders to “adopt all measures and all procedures necessary for saving as much fuel as possible” (“La reunión del Comité Central,” Granma, La Habana, Año 4, n°24, 28 de enero de 1968. Translation CADTM).

In 1963-1964, pro-Moscow leaders of the PSP held important leadership positions in the government and the new apparatus of the state (in particular the security apparatus) and took part in the debate regarding the policies Cuba should conduct, stressing what was being done in the Eastern Bloc under Moscow’s direction. Among the high-level representatives of the PSP were Carlos Rafael Rodríguez, president of the Institute for Agrarian Reform (INRA). Alberto Mora, who defended the same positions as the PSP’s directors without actually being a member, was Minister for External Trade in 1963. And on the other side there was Che Guevara, Minister of Industries, whose proposals were supported and shared by the Finance Minister (Ministro de Hacienda), Luis Álvarez Rom. As was mentioned above, two international Marxist figures also took part at the invitation of each of the two tendencies. Che Guevara had invited Ernest Mandel, a member of the Fourth International (United Secretariat), while the defenders of the PSP’s pro-Moscow line had called on Charles Bettelheim, a pro-Moscow economist of the period. The documents of the Great Debate were published and publicly debated in Cuba in 1963–1964. Tens of thousands of copies were published in the journal of the Ministry of Foreign Trade, the magazine of the Ministry of Industry and the journal Socialista. A little over forty years later they were brought together in a book published in Cuba in 2006 by the Che Guevara Studies Centre – directed by Aleida March, Che’s second wife – and by the publishing house Australian Ocean Press. It includes five contributions by Che, two by Ernest Mandel and one by Charles Bettelheim. These texts had been published together beforehand in 1969 in issue no. 5 of the Argentinean journal Pasado y Presente.

What divided a part of the Cuban leadership, among other factors, was the issue of the rapidity of the evolution towards socialism; whether or not methods used in Eastern Europe and Moscow should continue to be used; the importance of central planning; the importance of moral and collective incentives for increasing production; and the importance of material incentives – wage increases, bonuses, etc.

In 1967, in the French journal Partisans, Mandel summed up the Great Debate, and in particular Che Guevara’s position, as follows:

“Cuba’s nationalised industry was largely organised according to the trust system (consolidated enterprises) by branches of industry, very comparable to the organisational model used by Soviet industry over a long period. Financing of these trusts came from the central budget with financial control exercised by the ministries (of Industry and Finance). The bank played only a secondary intermediary role.

One of the practical goals of the economic discussion of 1963–1964 was therefore: either in defence of this system – which was the position of Comrade Guevara and those who generally supported his theses–, or postulating its replacement by a system of financial autonomy for enterprises (leading to the principle of the individual profitability of the latter); that thesis was defended by Carlos Rafael Rodríguez and numerous other participants in the debate.

Che Guevara’s position appears fairly pragmatic in this particular case. He did not claim that centralised management was an ideal in itself, that is, a model to be applied always and in every case. He simply defended the idea that that method was the most effective way to manage Cuban industry as it existed at the time. The arguments he advanced were essentially the following: a limited number of enterprises (fewer than existed in the city of Moscow in the USSR alone!); an even more limited number of industrial and financial managers; means of communication that are fairly well developed, and greatly superior to those of other countries that have attained a level of development of the productive forces comparable to Cuba’s; the need for a stricter economy of resources and control of the latter; etc.”

Mandel adds:

“Certain opponents of Che Guevara’s theses have linked the question of greater efficiency of decentralised management (and the financial autonomy that stems from it) to that of material incentives. Enterprises which are compelled to be profitable are companies which must submit their entire operations to a very strict economic calculation, and which to do that may make much more ample use of material incentives, giving workers a direct interest in the growth of the productivity of labour, in improving the enterprise’s profitability (for example through savings in raw materials) and in surpassing the goals of the plan.

In relation to that, Che Guevara’s response is essentially practical. He does not reject the need for strict economic calculation in the context of the plan, or the use of material incentives. But he subordinates that use to two conditions. Firstly, it is necessary to choose material incentives that do not weaken the internal cohesion of the working class, which do not result in rivalry between the workers. For that, he recommends a system of collective bonuses (for teams or enterprises, much more than a system of individual bonuses). Then, he is opposed to any excessive generalisation of material rewards, because this creates detrimental effects on the awareness of the masses. Guevara wishes to avoid having the entire society become saturated by a climate of selfishness and obsession with individual enrichment.”(translation CADTM; for the French version of this article available on the Net)

We should recall that at the time of the Great Debate the two systems co-existed. The one supported by Che Guevara and  Luis Alvarez Rom (the Finance Minister) was applied in a part of Cuba’s industry (in particular “heavy” industry), while the system allowing companies financial autonomy, backed by Alberto Mora, Carlos Rafael Rodríguez and the PSP, was implemented in another part of the industrial sector and in part of the agricultural and trade sectors.

Charles Bettelheim’s intervention and Che Guevara’s and Ernest Mandel’s rebuttals

Charles Bettelheim’s intervention in the debate was particularly conservative, following the lead of the policies pursued in the bloc that was led from Moscow. In his contribution to the debate, he cited the writings of Joseph Stalin on ten different occasions. At no point did he ever mention the forced collectivization imposed by Stalin and the dramatic consequences it had. He presented the countries of Central and Eastern Europe as the most advanced of all socialist countries. He also attacked Rosa Luxemburg.[13] No revolutionary fervor is perceptible in his text, despite the fact that at the time Cuba was in ferment and the Ministries for Industries and Finance were endeavouring to promote a model that was appropriate to realities on the island while refusing to adopt the model of Eastern Europe and Moscow.

Bettelheim adopted a mechanistic and deterministic approach in conformity with the dogmatic Marxist principles that held sway in Eastern Europe. According to him, the state of Cuba’s productive forces did not make it feasible to adopt policies of the kind Che Guevara and Luis Álvarez Rom promoted.

Che Guevara challenged the notion that the insufficient development of the productive forces would impose an unsurpassable limit, explaining that: “We consider that two fundamental errors have been committed in this article by Bettelheim, and we shall attempt to clarify them. The first concerns the interpretation of the necessary correlation between productive forces and relations of production […].” Che asks the question: “When can the relations of production not be a faithful reflection of the development of the productive forces?” and he answers:

“At times when an advancing society breaks the preceding one in order to develop, and at times when the old society is breaking and the new one, whose relations of production are yet to established, struggles to consolidate itself and to break the old superstructure. Thus, the productive forces and the relations of production, at a given historical point in time, analysed concretely, will not always be able to correspond in a totally coherent way […] In the broader context of the worldwide capitalist system in struggle against socialism, one of its weak links – in this concrete case, Cuba – can break. Taking advantage of exceptional historical circumstances and under the able leadership of its vanguard, at a given point in time, the revolutionary forces take power and, based on the existence of sufficient objective conditions as regards the socialisation of labour, burn through the stages, declare the socialist character of the revolution and set about building socialism.” (Che Guevara, “La planificación socialista, su significado,” Revista Cuba Socialista, año 4, n°4, junio 1964, pp. 13-24. Republished in El Gran Debate, p. 221–222. Translation CADTM).

And in opposition to Bettelheim, Che Guevara underlines the role of the consciousness of the people as a factor for overcoming the limitations imposed by the insufficient development of the productive forces.

Guevara also stresses the conscious role of the state: “The productive forces develop, the relations of production change, and everything depends upon the role of the workers’ state on the consciousness of the workers.” (Che Guevara “Sobre el sistema presupuestario de financiamiento” (On the budgetary finance system), published in February 1964). Note that Che Guevara uses here the concept of the workers’ state, also used by Ernest Mandel and by the Fourth International to characterise the Cuban State at that time.

According to Bettelheim (and on the Cuban side for Alberto Mora) it is not possible to consider that, in the nationalised sector, commercial relations can be abandoned.  Guevara answers (as does Mandel): “we deny the existence of a commodity category in relations between nationalised companies”, Che Guevara.[14]

In opposition to Bettelheim, Ernest Mandel defended Guevara’s position, recalling that at

“the transitional period from capitalism to socialism involves a partial survival of commodity production and the monetary economy, but the means of production are not commodities, since they circulate within the nationalised sector. The debate may seem Byzantine or Talmudic,” he wrote, “but it has many implications, and especially regarding the degree of autonomy of the state in economic decision making. Because from the idea that everything that is produced during the transitionional period is commodity production stems the conclusion that the law of value continues to govern the economy. And an even more serious conclusion, for the Stalinists, is that autonomy of decision is in reality very restricted, since there is no choice but to use the iron laws of economics which continue to govern the evolution of society. This pseudo-materialist position is in total contradiction with Marx’s idea of what the transitional period should be. And, and this is the paradoxical aspect of the affair, that theoretical position is also in total contradiction with the extreme  subjectivism of Stalinist practice, which while constantly referring to objective economic laws, set arbitrary prices and behaved like adventurers when it came to planning.” [15]

Ernest Mandel added, about Bettelheim, Alberto Mora and other Cuban leaders who advocated the application of methods imported from the Eastern Bloc:

“For them, everything that is produced in Cuba is commodity, and therefore the criteria of profitability must be established for enterprises, in other words an economic development model inspired by the Soviet Union. There was a logic that was to lead to a faithful, if not servile, imitation of Stalinist theory and its model of organisation of the economy in the Soviet Union, with consequences for the political framework of the workers’ state.” [16]

Mandel warned in no uncertain terms against the serious consequences of the policies recommended by Bettelheim and Mora:

“Comrade Bettelheim appears […] to be concerned with balancing excess demand (relative to the plan) with additional supply induced (through hidden reserves) by the incentive of ‘market prices.’ In a sense, this would be to legalize and institutionalize the ”parallel market.”

We will not deny that some increase in production can be obtained this way. But one should be aware that:

1. This method could lead to major social injustices […]

2. The prices formed by this ”free” market would not coincide with average costs of production, and they would inevitably cause distortions as well as an enormous amount of speculation, which could well disrupt the plan in the area of production. For example, in some world agricultural-product markets, prices are formed according to changes in supply and demand caused by national production surpluses in the large exporting countries; in other words, by an insignificant fraction of world production. This leads periodically to drastic price shifts. Even bourgeois economists see the need to control this chaotic state of affairs in the capitalist economy. Is it really worth considering its introduction into a socialized economy?

3. This method may create additional disturbances rather than bring about the more harmonious operation of socialized industry, because the face-to-face existence of two systems of prices, some low, some high, is a permanent temptation for enterprises to shift some part of the production intended for the regulated market to the ”free market.” This is especially true if such enterprises operate under the auto-finance system. The logic of a system of ”free” prices determined by equilibrium between excess demand and additions to supply would exert a growing pressure to have investment priorities determined by the size of unsatisfied effective demand. It is useless to recall that this would mean building luxury apartments before investing in public housing. In other words, it would be to recreate an economic logic nearer capitalism (where investment is determined essentially on the basis of the profit to be derived from effective demand) than socialism (where investment is deter mined by priorities consciously established in accordance with socialist socioeconomic criteria).” (Source: Ernest Mandel, “Mercantile Categories in the Period of Transition,” originally published in Nuestra Industria, Revista económica, year 2, No. 7, June 1964, pp. 9–36 in El Gran Debate, pp. 206–207. English version).

We should stress that the arguments advanced by Ernest Mandel in 1964 concerning the dangers of pro-market reforms have been confirmed in fact throughout the decades that followed and are still valid for analysing the reforms currently under way in Cuba.

Responding to Bettelheim, who defended the reforms coming from the Eastern Bloc, Che Guevara writes:

“we are returning to the market theory. The entire organisation of the market relies on material incentives… and it is the directors who earn more every time. Just look at the latest project of the German Democratic Republic, and the importance that the director’s management – or better the remuneration of the director’s management.” [17]

It is important to mention that a few years later, in the late 1960s – early 1970s, Bettelheim was to move to another extreme.[18] Whereas he rejected the possibility of overcoming capitalist market relations in the state sector on the grounds that the state of the productive forces made it impossible, he then adopted a position of following the voluntarist policy applied by the Chinese authorities under the authority of Mao Tse Tung.[19]

In his contribution to the debate in Cuba, Bettelheim places no importance on the exercise of power by workers, intervention by the people in decision-making,[20] worker’s control, etc. in total opposition to the ideas of Ernest Mandel.

Bettelheim cites Lenin abundantly, but only when justifying economic policies for necessary concessions made to the market economy in order to restore the alliance between peasants and workers, and never when it is a question of the role of trade unions and the dangers of bureaucratisation, despite the fact that Lenin clearly called attention to them. [21]

In his contribution cited above, published in Havana in June 1964, in response to Bettelheim, Mandel states: “As to the enterprise’s internal organization of work and production, we believe it is essential to pursue the goal of placing administrative responsibility in the hands of the workers themselves (labourers and employees). One cannot conceive of socialism, much less communism, without this ‘performance of administrative functions by each worker in turn.’” (El Gran Debate, p 210 – English version).

As for Che, he expressed his concerns about the insufficient participation of workers in decisions several times. In a very long letter to Fidel Castro on 26 March 1965, when he had decided to give up his responsibilities in the government, he wrote: “How can worker participation be achieved? That is a question I have not been able to answer. It is my greatest failure, and it must be reflected upon because it concerns relations between the Party and the State.” [22]

I would like to deal with an additional point concerning the debate between Charles Bettelheim and Ernest Mandel upon which, to my knowledge, no other author has commented until now. Charles Bettelheim maintained that workers of enterprises in the state sector did not sell their labour power. “Thus, the wage in socialist society [note by Éric Toussaint: Bettelheim is referring to the USSR and its Bloc] is no longer the ‘price of labour power’ (since the producers are no longer separated from their means of production, since they are in fact their collective owners), but rather the form in which a part of the social product is distributed.” This affirmation by Bettelheim was in conformity with the position of Soviet authors and of Stalin: as Socialism had been achieved in the countries of the Moscow Bloc, since the workers were co-owners of the means of production, it was unimaginable to state that they sell their labour power to the enterprise as a commodity. Nevertheless, this affirmation contradicted Bettelheim’s other statement, namely that the capital goods or raw materials which public companies exchanged were commodities (contrary to what Che Guevara and Mandel held). But let us leave that for now. What is interesting is the fact that Mandel expresses his disagreement with Bettelheim and the authors in the countries of the Moscow Bloc regarding the question of the sale of labour power. Mandel shows that in contradiction with Moscow’s propaganda, in a society in transition towards socialism, the worker continues to sell her or his labour power.  After having demonstrated that, he says: “Why cannot a member of a collective enterprise, a co-proprietor of the enterprise, sell individually owned property to that enterprise?  The crux of the matter is that labor power is still private property (Mandel is speaking of a transitional society from capitalism to socialism [Éric T]), while the means of production are already (in essence) collective property. To abolish private ownership of labor power before the society can assure the satisfaction of all its people’s basic needs would actually be to introduce forced labor.” (El Gran Debate, p. 196 – English version). This argument of Mandel’s is highly important because workers’ need to be able to organise and act to make demands regarding wages, for example, follows from it. A fortiori, that need was all the more vital in the case of countries of Moscow Bloc at the time, which were bureaucratically degenerated workers’ states that had begun an evolution towards restoration of capitalism.

Che Guevara on the National Bank and loans in Cuba’s transition towards Socialism

During the Great Debate, Che Guevara, who was president of Cuba’s National Bank from November 1959 to early 1961, disagreed with Marcelo Fernández Font, president of Cuba’s National Bank in 1963-1964.[23] In a contribution to the debate published in the magazine Cuba Socialista in February 1964 under the title “Desarrollo y funciones de la banca socialista en Cuba” (Development and functions of the socialist bank in Cuba),[24] the latter sharply criticized the system supported by Che Guevara and claimed it was much less efficient than the one implemented in the USSR and supported by Alberto Mora, Carlos Rafael Rodríguez and Charles Bettelheim. While in Che’s system, enterprises were financed by the state budget, in the system of financial autonomy (or self-management, as it was sometimes improperly called) imported from Eastern European countries and the USSR, enterprises were financed by loans with interest granted by the National Bank of Cuba, which could then monitor their activities. Marcelo Fernández Font saw Che’s system as bad for the economy and the transition towards Socialism since it involved excessive monetary issuance and increased the State deficit. He actually demanded more powers for the National Bank, notably to monitor enterprises that functioned within the system applied by the Ministry of Industry, which had not been the case so far. The president of the National Bank also wanted his institution to decide on which investments could be financed, as was already happening in the sector in which the Eastern European and USSR model was applied.

In his reply entitled “Banks, loans and socialism” published in the magazine Cuba Socialista in March 1964, Che Guevara frontally opposed such extension of power over the economy of the country and notably over the sector of the economy in which enterprises were financed by the State budget. He also opposed the loans with interest granted to enterprises by the National Bank. He refused to allow the function of monitoring enterprises to be delegated to the Bank. He considered that such a monitoring function belonged to banks in the capitalist system, not in a transitional society towards Socialism.[25]

How they debated

At this stage we should introduce an important point of general interest on how opponents debated. In their various contributions, Alberto Mora, Marcelo Fernández Font and those who questioned Che’s system never openly said that they disagreed with the Minister of Industry and the Minister of Finance: they criticized the positions of “some (unnamed) comrades”. This was the case in the article by Alberto Mora (Minister of Foreign Trade) in June 1963 entitled “About the issue of how the law of value functions in the Cuban economy today”[26] and in the article by Marcelo Fernández Font (director of the National Bank of Cuba) quoted above. In his replies, Che Guevara assumed his responsibilities and stood by his positions, blaming them for not having the courage or candour to clearly identify the target of their criticism. He did it politely but firmly. This is undoubtedly one of Che’s main qualities: his candour in debate and his determination to engage in a thorough and public debate, which was completely at odds with the Stalinist tradition imposed since the mid-1920s in the USSR and in its camp, including, in the capitalist countries, the Communist parties that were under Moscow’s control.

Ernest Mandel’s impact in Cuba

Ernest Mandel had a significant impact in Cuba in 1964 when he stayed there and in subsequent years in the second half of the 1960s and in the early 1970s. He would meet up with members of the Ministry of Industry, with Che Guevara himself as well as with Luis Álvarez Rom, Minister of Finance, and with members of his cabinet. He was invited to deliver lectures at the university. There were sessions of collective reading of chapters from his Marxist Economic Theory. As mentioned above the book had been translated into Spanish and distributed to leaders and senior executives, notably in the Ministry of Industry and the Ministry of Finance.

When he stayed in Cuba in 1964, Mandel did not meet Fidel Castro. Che had wanted them to meet and talk. He urged Fidel to speak with Mandel but it did not happen. There is a simple explanation: strong pressure from the PSP leaders and Moscow. Consequently, Castro probably considered that it would have been too risky to meet with Mandel, who was rightly identified by Moscow as leader of the FI and opposed to the policies implemented in the Soviet Union and in Eastern and Central Europe, which pro-Moscow leaders such as Carlos Rafael Rodríguez wanted to implement in Cuba.

While in Cuba, Ernest Mandel also met Che’s first wife, Hilda Gadea, of Peruvian origin, who still had political relations with him. Hilda expressed her interest in the Fourth International and met Mandel, to report on the situation of Trotskyists in Peru. She had met Peruvian Trotskyists when she had visited her native country shortly before. She sent several letters to Mandel from Cuba in 1964, to which he replied. She also went to Paris and met in 1965 Pierre Frank , member of the Unified Secretariat of the FI. She was in touch with young Cuban executives who sympathized with the positions of the FI (see Box on the Fourth International); she also tried to protect them from repressive and intimidating measures taken by members of the PSP, who were very active within the state security services they had infiltrated.

Fourth International and Trotskyists in Cuba during the 1960s

The Fourth International leadership had wholeheartedly supported the Revolution and its initial achievements after the dictator Batista was overthrown on 1st January 1959. There was a group of Fourth International activists in Cuba; other activists from countries such as Argentina and Uruguay had joined them. Cuban Trotskyists had participated in the insurrection in the ranks of the 26 of July Movement. Some of them were close collaborators of Che, such as Roberto Acosta, a militant Trotskyist since the 1930s. After the victory, there had been diverging views within the Fourth International regarding their relationship with the revolutionary government. Should an autonomous Trotskyist organization be created? Which tasks should be prioritized? The majority of members of the small POR-T (Trotskyist Revolutionary Workers’ Party) were in favour of self-assertion while the majority of members of the Unified Secretariat were in favour of accompanying the process without developing an autonomous party. Disagreements between the majority of the FI and the main Latin-American leader, the Argentinian Juan Posadas, went far beyond the question of what position to adopt in support of the Cuban revolution. In the spring of 1961 Juan Posadas and his supporters eventually decided to leave the Fourth International and create their own international organization. During the missile crisis in October 1962 his international organization and the POR-T which was part of it defended the idea that Cuba must use nuclear weapons against US imperialism. It implied self-sacrifice in order to wipe imperialism off the face of the planet and allow socialism to triumph on the other continents. The members of the POR-T were not the only revolutionaries in Cuba to defend such an unacceptable position, which the Fourth International rejected.

In March 1965, six members of POR-T were sentenced to prison terms ranging from 3 to 8 years on totally outlandish charges. They were accused of being agents of US imperialism. A few months later, they were released thanks to the direct intervention of Che Guevara, who invited Roberto Acosta Hechevarría, one of the leaders of the POR-T, who had been detained for two months (without having been sentenced), to his office. He was taken to his office under the guard of two state security agents. As we have already mentioned, Roberto Acosta worked alongside Che Guevara at the Ministry of Industry, as head of the standards and metrology department. According to Roberto Acosta, he and Che had a positive and constructive exchange on Trotskyism. In the end, Che Guevara obtained the release of Roberto Acosta and his comrades imprisoned in Santiago de Cuba.

Next to members of the POR-T, with whom the Unified Secretariat of the FI stayed in touch in spite of diverging views, other activists in Cuba reinforced their collaboration, notably through written correspondence with Ernest Mandel, with Joseph Hansen (one of Trotsky’s former secretaries from 1937 until Trotsky’s murder by an agent of Stalin in August 1940). Hansen, who was a member of the United Secretariat of the Fourth International and a member of the leadership of the SWP in the United States, visited the island on several occasions with leaders of the Canadian section of the Fourth International. Livio Maitan, another member of the Unified Secretariat of the FI, also kept track of the situation in Cuba though with the allocation of tasks among leaders, his priority was South America. Vazquez Menendez was a member of the POR-T who maintained regular exchanges with Mandel in spite of the separation with the Unified Secretariat.

Among Cubans who shared the views of the Unified Secretariat of the FI were Nelson Zayas, who was 25 and worked in the Ministry of Foreign Affairs, Javier de Varona, a legal expert, professor of philosophy (24), Walterio Carbonell (44), an Afro-descendent Cuban, author of a book published in 1961 under the title Como Surgió la Cultura Nacional ? (published in English under the title How Cuba’s national culture came to be). Walterio Carbonell, who had known Fidel Castro when they were students together, was later in touch with the Black Panthers in the US.

Che, his speech in Algiers and his resignation from the Cuban government

After leaving the island, Ernest Mandel maintained close relations with Cuba. He was in touch with Che Guevara when the latter delivered a very significant speech at the Afro-Asian conference in Algiers on 24 February 1965. In it, Che Guevara criticized the selfish attitude of governments of the Eastern block of so-called socialist countries. About the high prices they demanded when trading with Third World countries he said:

“How can it be ‘mutually beneficial’ to sell at world market prices the raw materials that cost the underdeveloped countries immeasurable sweat and suffering, and to buy at world market prices the machinery produced in today’s big automated factories? If we establish that kind of relation between the two groups of nations, we must agree that the socialist countries are, in a certain way, accomplices of imperialist exploitation.”

It was courageous of him and caused great discontent in Moscow. Soon after this speech Mandel phoned Che Guevara and said he was ready to go to Algiers. Che wanted him to come. Mandel applied to the Algerian Embassy to leave on the next day, but it turned out not to be possible.[27]

The outcome of the Great Debate was that the Eastern Bloc’s positions backed by Alberto Mora, Marcelo Fernández Font, Charles Bettelheim and Carlos Rafael Rodríguez, leader of the former PSP, carried the day. Fidel Castro had remained aloof and had not publicly taken sides. Che Guevara, whose positions were clearly at odds with the interests of the authorities in Moscow and the Eastern European countries, gave up all his responsibilities in the Cuban government.

Che Guevara’s last known letter to Fidel Castro

In a 37-page letter to Fidel Castro dated 26 March 1965, which was not published in extenso until 2019,[28] Che Guevara begins, in some fifteen pages, with a highly critical assessment of the country’s economic situation, and then, in some ten pages, summarizes the model for the operation and financing of the economy that he advocates (“sistema de financiamiento presupuestario” or budgetary finance system). Next he develops his thoughts on the party and the state.

In the part in which he advocates the model of financing by the state budget vs the model implemented in the countries of the Moscow Bloc and in Yugoslavia, he describes in very strong terms one of the consequences of those countries’ evolution: “Factories are closed and Yugoslav (and now Polish) workers emigrate to the countries of Western Europe in full economic expansion. They are slaves that the socialist countries send as an offering to the technological development of the European Common Market.”

In the final part when he discusses how the economy, the party and the state function he writes (as already quoted above):

“How to involve the workers is a question I have not been able to answer.  I consider this as my greatest failure and it is one of the things to think about because in it is also involved the problem and the relationship of the party and the state.”[29]

He writes about the Party:

“To fulfil its task of an ideological driving force, the party and each member of its member, must be a vanguard and, for this, they must present the closest image to what a communist should be. Their standard of living, that is, the standard of living of the party members, must never exceed, neither as professional cadres, nor as cadres in production, that of their peers.” (…) “All this, seeking to act in such a way that the struggle against the tendency to bureaucratise the Party, i.e. to turn it into another instrument of statistical control of the government, or into an executive body, or into a parliamentary body, with many paid people and many jeep-riders, going from one meeting to another, etc. etc. etc. is always kept in mind.” (…) “The Party, naturally, must have its own organization, separate from the state, even though today there are occasionally a series of positions in which the party and the state are mixed.”

At the end of the letter, he writes about the training of party cadres: “To make the party cadre a thinking element, not only of the realities of our country but also of the Marxist theory which is not an ornament but an extraordinary guide for action (the cadres do not know Trotsky or Stalin but they qualify them as ‘bad’ scholastically).” In this part of the letter, Che Guevara explicitly mentions as an instance of scholastic warping the daily paper Hoy controlled by leaders of the former PSP.

It should be noted that this long letter does not include a clear determination to propose and achieve political reform so as to organize socialist democracy with workers actually exercising power. This is undoubtedly one of Che Guevara’s serious mistakes.

Ernest Mandel’s second trip to Cuba in 1967

Ernest Mandel went back to Cuba in June 1967, invited by the Cuban leadership. We should keep in mind that in June 1967, Che Guevara was conducting guerilla warfare in Bolivia so the decision to invite Mandel to La Havana came from the Cuban leadership and Fidel Castro. Che Guevara could not have had any part in it since the level of material communication with Cuba was very low and anyway he no longer had any direct say in Cuban debates. Mandel stayed for more than a month and had again a number of significant contacts, since at the time Cuba played a key role on the international stage as founder of the Latin-American Solidarity Organization (OLAS), a structure that brought together a large number of political organizations inclined to armed struggle. The organization was necessary for the revolutionary current to avoid Moscow’s and China’s direct control. There was a buzz in Cuba in terms of internationalism, debate and openness in the international context which, moreover, would lead to May 68. Fidel Castro and the leadership of the Cuban Communist Party (founded in 1965) were very critical of the Soviet leadership. On that occasion, Ernest Mandel travelled with his partner Gisela Scholz, who became a leader of the FI. Back in Belgium, he published several articles in support of the Cuban revolution and of OLAS in the weekly La Gauche.

The assassination of Che Guevara in Bolivia

A few months after Mandel had returned to Europe, we heard about the tragic death of Che Guevara, who had been assassinated by the CIA and the Bolivian army on 9 October 1967. Ernest Mandel immediately wrote an article in homage to Che Guevara’s memory in the paper La Gauche. He wrote: “The Cuban and Latin-American revolution has lost one of its main leaders; we have lost a dear comrade.” It was reprinted in organs of the FI.”[30]

Mandel and Cuba in the 1990s

At the end of 1989, Ernest Mandel wrote a short polemical text about the way supporters of Glasnost and Perestroikawanted to claim Che’s heritage. He starts his article[31] as follows:

Among the many attempts at reclaiming Che’s heritage, the latest one is not the least surprising. Emphasizing the ‘spiritual and psychological affinity’ between Che and Gorbachev with regards to the ‘values of socialism’ is the hazardous project of Kiva Maidanik in his 1987 book published in Nicaragua, Perestroika : la revolución de las esperanzas. (Perestroika: the hoped-for revolution, not translated). He was interviewed by Marta Harnecker (1937-2019), a well-known journalist in Cuba, often inspired by pro-Soviet stance, who seemed to have been invested with a mission of good offices between the ‘orthodox’ Latin American CPs and the loyalist current. However, this attempt at reclaiming – even under the label of perestroika – presented a number of difficulties.

Next Mandel sums up again the ideas Che advocated in the Great Debate:

“Market-based economic reforms were not among the ‘values of socialism’ to which Che was particularly attached. His hostility to the reforms advocated by Liberman and Trapeznikov in the 1960s was quite clear; he was against the introduction of ‘economic calculation’ based on the financial autonomy of enterprises, and against a payment system based above all on material incentives, piecework and bonuses. His opposition was not the result of any contempt for ‘economic laws and mechanisms’: Che supported a strict planning, a centralized fiscal system involving monitoring investments and loans with regards to general not sectorial interests, in the name of the construction of a form of socialism that would be radically different from a capitalist society, based on categories opposed to those of profit and commodity. He considered that using market-based categories had to be limited to the least socialized sectors when it was not possible to avoid them. ‘With the rotten weapons inherited from capitalism, commodity as economic unit, return on investment, individual material interest as incentive, we run the risk of heading into a dead end.’ This has been confirmed by history.”

Afterwards Mandel challenges Kiva Maidanik’s assertion that Che’s positions in the Great Debate did not form the “core of Che’s conception as a theorist.”

He claims that

“Che thought that mobilizing the masses and their class consciousness could be stimulated by international policies supporting revolutionary processes, by fighting bureaucracy and corruption, by the exemplary behaviour of leaders and by the development of socialist democracy although, on this issue, his views were somewhat short-sighted.”

Mandel condemns Gorbachev’s agreements with Ronald Reagan at the expense of the revolutionary process underway in Central America at the end of the 1980s:

“It all adds up: Che’s internationalism would have found it hard to accept the priority given to diplomatic ‘dialogue’ with the USA to the detriment of revolutionary processes in the Third World, which were reduced to the status of mere ‘regional conflicts’. At a time when Nicaragua was short of oil, granted sparingly and conditionally by the Soviet government, Gorbachev was considering reducing its military aid ‘to the level of light weapons of the type used by the police.’”

I would also like to mention an episode regarding the relationship between Ernest Mandel and Cuba in which I am personally involved. It happened in 1992 and concerns the meeting between Marta Harnecker, mentioned above, and Ernest Mandel. Marta Harnecker had been a member of Chile’s Socialist Party under Allende’s presidency; she was known as a popularizer of Marxist ideas, notably with her booklet The Elementary Concepts of Historical Materialism.[32] She lived in Cuba, and was the partner of Barbarossa, the moniker of Manuel Piñeiro Losada, who was a trusted comrade of Fidel Castro and the man in charge of all guerrilla operations in Latin America supported by the Cuban leadership. I had been in close contact with Marta Harnecker since 1988-1989 and with Manuel Piñeiro Losada since 1991. I had met Marta Harnecker in Managua in the 1980s and 1990s, in the context of the Fourth International’s support of the Sandinista revolutionary process. At the time, she often stayed in Managua (I’ll come back to this point in another article). After the Sandinistas failed to win the elections in 1990, Marta Harnecker went back to Cuba. I visited Cuba on a regular basis since I was in charge of the Coordination against the US embargo against Cuba, a very large coordination created in Belgium, that brought together political parties such as the FI and others such as the Communist Party of Belgium and major solidarity movements, NGOs such as Oxfam. At the time I was invited to Cuba as a member of the Political Bureau of the Belgian section of the FI. It was in this context that I regularly met Marta Harnecker and Barbarossa, aka Manuel Piñeiro.

In 1992, Marta Harnecker was invited to Brussels by the Workers’ Party of Belgium (PTB, Parti du Travail de Belgique), a party of Maoist origin that was still imbued with Stalinist ideology. She gave a lecture during which she was booed by some because she mentioned Trotsky and it was inconceivable to say anything positive about Trotsky in an assembly of cadres of the Workers’ Party of Belgium. While she was in Brussels, she contacted me because she really wanted to meet Ernest Mandel. We went together. It lasted for two and half or three hours in his house in Schaerbeek. It was one year after the collapse of the Soviet Union. Cuba, which had depended to a large extent on its economic exchanges with the USSR, was experiencing a severe economic crisis. The island’s authorities responded by declaring a special period. Given the effects of the dismantling of the Soviet Union, economic relations between Cuba and Moscow had fallen sharply, particularly those involving the supply of oil. The economic situation in Cuba was extremely difficult, and there were major concerns about the collapse of the Soviet Union. Marta Harnecker told Mandel, “Listen, Comrade Ernest, we would really like to know how you explain the collapse of the USSR. You are one of the few people able to formulate a coherent explanation whom Fidel Castro would listen to. If you agree,” she said, ” on my return to Cuba I could try and persuade Fidel Castro to invite you to Cuba to present your analysis of the end of the Soviet Union”. We thoroughly discussed the reasons for the collapse and what had been the nature of the Soviet Union, what sort of projects were perestroika and glasnost, how to analyse Gorbachev’s policies, the attempt at self-reform of the Soviet bureaucracy that had ultimately led to the implosion of the Soviet Union. Did this mean victory for the restoration of capitalism, which was under way, with privatizations and shock therapy applied to the various republics that had emerged from the Soviet Union? The discussion was constructive. But Ernest said to Marta: “Look, I’ve been to Cuba twice, I’m in complete solidarity with Cuba over the American embargo, but I’m convinced that Fidel Castro won’t want to see me, he won’t want to have a real debate. In 1964 and 1967 I noticed that even though I was invited with his agreement it was out of the question for Fidel Castro to meet me and have a discussion that would include both an internal and an external dimension. So you can try and persuade him, but there is practically no chance that Fidel would wish to meet me.” To the end of his life, Ernest Mandel expressed his support for the Cuban people against the US embargo, he hailed Fidel Castro’s initiative to call for Third World countries not to pay their external debt and he was willing to debate and develop his views on the critical revolution. If he had met Fidel Castro, if there had been a public debate, he would no doubt have mentioned socialist democracy as a sine qua non condition for a transition towards socialism.

Conclusions

– Ernest Mandel was quick to understand the significance of the Cuban revolution and expressed solidarity with Cuba throughout his life.

– He supported Che Guevara’s positions in the Great Economic Debate on which policy to choose for a transition towards socialism as early as the last quarter of 1963, when he heard about the positions Che had publicly voiced a few months earlier.

– Che Guevara and the leaders who shared his views, such as the Minister of Finance, Luis Álvarez Rom, invited Ernest Mandel to Cuba where he tried to help reinforce their positions in dealing with those supporting the policies implemented in the Soviet Bloc while distancing himself from the positions of the Yugoslav leaders (whom Stalin had excommunicated starting from 1948).

– In each of his contributions, Mandel tried to introduce into the debate the issues of socialist democracy, of workers’ and the people’s direct participation in the decision-making process. He very clearly insisted on the vital need to give priority to the people making decisions. On this score, while aware of the problems resulting from the absence of workers’ participation, Che did not share the point of view of Mandel and the Fourth International. Yet in his long letter to Fidel dated 26 March 1965, when he left the Cuban government, Che wrote: “How to involve the workers is a question I have not been able to answer. I consider this as my greatest obstacle or my greatest failure and it is one of the things to think about because in it is also involved the problem of the Party and the State, of the relations between the party and the state.”[33] Later in 1966, when Che Guevara wrote the critical notes in the margin of the Soviet Manual during his stay in Prague, he stated that it was up to the people, the masses, to decide the priorities of the plan.[34]

– In later years Mandel never stopped giving this issue central significance through texts, speeches, debates and resolutions at world congresses. To mention only two instances, in his 1970 anthology Contrôle ouvrier, conseils ouvriers, autogestion (Workers’ control, workers’ councils and self-management) and his contribution to a text on the Dictatorship of the Proletariat and Socialist Democracy, in which he wrote “A living pluralist and socialist  democracy, the free confrontation of choices among various priorities, independence of political and social organizations from the state apparatus, are not some luxury for rich countries which poor countries ought to do without until better times. In any socialist revolution they are a functional demand, in order to overcome the contradictions of the economy, to reduce disproportions, to rein in injustices, to find in collective consciousness ways to defeat obstacles. Human civic and social rights, State of Law, unrestricted political democracy, democracy of associated producers, democratically centralized planning, necessary but limited use of market mechanisms, and self-management necessarily complement each other in the construction of a socialist society. Only one missing link can pervert the whole.” (Manifesto adopted by the 13th World Congress of the Fourth International in February 1991. Special leaflet Fourth International, Paris, 1993).

– Beyond the positions supported in the Great Debate and the deep convergences between Che Guevara and Ernest Mandel in this context, we can add other points of agreement:

– The need for public debate on issues that call for choices.

– The need to extend revolution to as many countries as possible – one of Che Guevara’s leitmotivs – with the prospect of creating one, two, three, four, five Vietnams and of developing Internationalism. It was also vital for Mandel and the Fourth International.

– Che Guevara’s refusal to use repression against ideas within the Left (which led to him to free Cuban Trotskyist activist members of POR-T in March 1965 before he left for the Congo).

– The need to use armed struggle in a revolutionary strategy to extend socialist revolution. In this respect, as early as 1964, Ernest Mandel had been granted his request that Bolivian Trotskyist activists receive a military training in Cuba[35]. Unfortunately in 1967, while some of them had been trained in Cuba, they could not join the guerilla group led by Che Guevara. The reasons for their being stopped have not been made clear. It should be mentioned that Ernest Mandel did not support a militarist version of armed struggle strategy. This is evidenced by the break between the Fourth International and the PRT-ERP in Argentina in 1973.[36]

– We should also mention that there were significant differences of appreciation between Ernesto Che Guevara and Ernest Mandel about the possibilities of revolutionary struggle in industrialized countries. In the notes he drafted in Prague in 1966 back from the Congo and before sneaking back to Cuba to get ready for Bolivia, Ernesto Che Guevara mentioned more than once that he did not think the working class in industrialized countries was ready for radical struggles while Ernest Mandel and the Fourth International were convinced of the anti-capitalist potential of the working class in countries of the North and in the three sectors of the world revolution. If Ernesto Che Guevara had not been assassinated in October 1967 and had witnessed the impressive rise of students’ and workers’ struggles in Europe from 1968 onward and in the first half of the 1970s, he might have revised the opinion expressed in 1966-1967.

The author is grateful to Rafael Acosta, Eric Corijn, Christian Dubucq, Michaël Löwy, Maxime Perriot, Claude Quémar, Pierre Salama, Catherine Samary and Patrick Saurin for reading this text through. He is also grateful to Christian Dubucq, Sushovan Dhar and Vicki Briault for their help in checking sources. Bibliography

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Catherine Samary, (co-edit Fred Leplat), Decolonial communism, Democracy & the Commons, Decolonial Commmunism, Democracy & the Commons, Resistance Book, Merlin Press, and IIRE, 2019

Catherine Samary,  Partisan Ruptures, Self-Managment, Market Reform and the Spectre of Socialist Yugoslavia, London, Pluto Press, 2019

Jan Willem Stutje, Ernest Mandel A Rebel’s Dream Deferred, Verso, London-New York, 2009 [2007], 392 pages.

Paul Sweezy, Charles Bettelheim, Lettres sur quelques problèmes actuels du socialisme, Petite collection Maspero, Paris, 1970, 65 pages. In English : On the Transition to Socialism (1971) – http://www.marx2mao.com/PDFs/OTTS71.pdf

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Éric Toussaint, « Retour sur des révolutionnaires “ oubliés ” de l’histoire. Les trotskistes cubains des années 1930 à 1959 », 2000, https://www.europe-solidaire.org/spip.php?article29792

Éric Toussaint, « Idalberto Ferrera Acosta (1918-2013), militant cubain », published by  Europe solidaire sans frontière, 24/07/2013, https://www.europe-solidaire.org/spip.php?article29791

Éric Toussaint, “Lenin and Trotsky confronting the bureaucracy – Russian revolution and transitional societies” published by Europe Solidaire Sans Frontières, 21 January 2017, https://www.europe-solidaire.org/spip.php?article37717

Éric Toussaint, Yannick Bovy (sous la direction de), Cuba : Le pas suspendu de la révolution – Approche critique de la réalité cubaine, Éditions du Cerisier, Cuesmes-Mons, 396 pages (2001). With contributions from Abel Prieto, Silvio Rodriguez, Julio Carranza Valdés, Haroldo Dilla Alfonso, Mayra Espina Prieto, Julio Fernandez Bulté, Janette Habel, Maria López Vigil, Osvaldo Martínez, Fernando Martínez Heredia, Mirta Rodriguez Calderon, Maya Roy, Manuel Vázquez Montalbán, Aurelio Alonso Tejada.

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Éric Toussaint entrevistado por Wilder Pérez Varona, “La lección de la Unión Soviética es que la burocracia elige la restauración capitalista” publicado por La Tizza Cuba el 29 mayo 2019, https://medium.com/la-tiza/la-lecci%C3%B3n-de-la-uni%C3%B3n-sovi%C3%A9tica-es-que-la-burocracia-elige-la-restauraci%C3%B3n-capitalista-be801bb25126

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Notes.

[1] It was published in English in 1968:  Ernest Mandel (1968), Marxist Economic Theory (New York: Monthly Review Press). Translated by Brian Pearce. Originally Traité d´économie marxiste (Paris: Julliard, 1962). In audio: https://www.youtube.com/watch?v=_wbOcVkwgck

[2] Che understood and spoke French.

[3] Ernest Mandel used several pen names: Ernest Germain, Henri Valin, Pierre Gousset and, in the Fourth International, he was called Walter. See https://maitron.fr/spip.php?article89557 (in French).

[4] Ernesto Che Guevara criticized those manuals on several occasions during the Great Debate of 1963-1964. And after he left Cuba, while he was staying in Tanzania and in Prague in 1966, he drafted a systematic critique of Political Economy. A Textbook issued by the Academy of Sciences of the USSR in 1954 [English edition 1957]. Che Guevara’s notes were published at La Havana in 2006. See Ernesto Che Guevara, Apuntes criticos a la economia politica, Editorial Ciencias Sociales, Centro de Estudios Che Guevara, Ocean Press, La Havana, 2006, 397 pages.

[5] See Alberto Mora, “En torno a la cuestión del funcionamiento de la ley del valor en la economía cubana en los actuales momentos”, (Concerning the issue of how the law of value functions in the Cuban economy today), an article published in the journal of the Ministry of Industry, Nuestra Industría, Révista Económica, year 1, n°3, October 1963, pp. 10-20. Stalin’s phrase quoted by Mandel comes from this article by Alberto Mora.

[6] Elsewhere, earlier in the article, Mandel discussed this question: “It is necessary to carry out strict calculations of production costs to show in the case of each commodity whether its production has been subsidized or not. But nothing calls for the conclusion that prices must be ‘determined by the law of value’, that is, by the law of supply and demand. If such a conclusion still has some meaning with regard to the means of consumption, it is senseless for the means of production which, we repeat, are not commodities, at least in the great majority of cases. And even means of production which are still commodities – those produced by the private or co-operative sector for the delivery to the State, and which the State furnishes to private enterprises or co-operatives – cannot be ‘sold at their value’ without encouraging under certain conditions private primitive accumulation at the expense of Socialist accumulation.”

[7] For more on the conditions under which Yugoslavia adopted self-management, see Catherine Samary, Decolonial Communism, Democracy and the Commons – Resistance Books, London, 2018, https://resistancebooks.org/product/decolonial-communism-democracy-and-the-commons/ Catherine Samary, Plan, Market and Democracy, The experience of the so-called socialist countries, IIRE, Amsterdam, 1988, https://fileserver.iire.org/nsr/NSR7.pdf  Catherine Samary, “In the name of the Communist ideal” in Le Monde Diplomatique, English edition, May 2020 ; translated from the French : « Quand les peuples de l’Est luttaient au nom de l’idéal communiste » Le Monde Diplomatique, March 2020.

[8] In English, Ernest Germain, “Soviet Management Reform”, International Socialist Review, Vol.26, n°3, Summer 1965, pp.77-82. https://www.marxists.org/archive/mandel/1965/03/sovreform.htm

[9]Leon Trotsky: The Soviet Economy in Danger. In English, in a different translation, see The Soviet Economy in Danger in Militant, 12 November 1932-7 January 1933.

[10] See Jan Willem Stutje, Ernest Mandel A Rebel’s Dream Deferred, Verso, London/New York: 2009, 392 pages, p.151

[11] Blas Roca, Balance de la labor del Partido desde la última Asamblea Nacional y el desarrollo de la revolución, La Habana: 1960, pp. 87–88. Cited by Michael Löwy in “La revolución permanente en América Latina”, (Permanent Revolution in Latin America), in: Michael Löwy et al, Socialismo para armar. Documentos urgentes de la historia contemporánea, Hijos Red Mundial, Colección Socialismo y Libertad, Libro 68, 2016, p. 19. Translation CADTM.

[12] Ernesto Che Guevara, Apuntes criticos a la economia politica, Editorial Ciencias Sociales, Centro de Estudios Che Guevara, Ocean Press, Havana, 2006, 397 pages. P. 285. (Translation CADTM).

[13] Bettelheim wrote: “Rosa Luxemburg, [who] in a ‘leftist’ perspective felt that in a socialist society there are no economic laws and that political economy therefore becomes inapplicable…” To bolster his argument, he cites an excerpt of a text where Luxemburg states: “… political economy as a science has played out its role as soon as the anarchic economy of capitalism makes way for a planned economic order, consciously organized and managed by the whole of working society. The victory of the modern working class and the realization of socialism accordingly mean the end of political economy as a science.” (The Complete Works of Rosa Luxemburg, Vol. 1, Economic Writings 1 [Peter Hudis, ed.], London: Verso, 2013). However, contrary to what Bettelheim claims, nowhere in that citation is it stated that in Socialism there are no longer any economic laws. And further, Luxemburg is speaking of the end of political economy once Socialism has come about; she is not speaking of society in transition towards Socialism. There is no doubt that the Stalinist economists were endeavouring to denigrate Rosa Luxemburg.

[14] In Che Guevara “Sobre el sistema presupuestario de financiamiento” (On the budgetary finance system), published in February 1964 and as “La planificación socialista, su significado” (Socialist planning, what it means), in June 1964.

[15] Ernest Mandel quoted by Janette Habel, in « El Gran Debate Cubano 1963-1965» Jacobin América latina, Jacobin Revista, Nùméro 5, Argentina, 2022, p. 58-59

[16] Ernest Mandel, Interview “L’économie de transition et l’homme nouveau,” transcript of a speech recorded in 1965 cited by Janette Habel, in « El Gran Debate Cubano 1963-1965» Jacobin América latina, Jacobin Revista, Nùméro 5, Argentina, 2022, p. 56–65. (Translation CADTM).

[17] Ernesto Che Guevara, Écrits d’un révolutionnaire Ed. La Brèche, Paris, 1987. Translation CADTM.

[18] In his debate with Paul Sweezy (1910–2004) and the Monthly Review following the invasion of Czechoslovakia in August 1968 by Warsaw Pact troops, Bettelheim wrote “the fact is that the proletariat (Soviet or Czech) has lost its power to a new bourgeoisie, with the result that the revisionist leadership of the Communist Party of the Soviet Union is today the instrument of this new bourgeoisie.” In the same article Bettelheim says that the 20th Congress of the CPSU (which was held in 1956 and is considered the congress of de-Stalinisation) marked the arrival to power of that new bourgeoisie and the abandonment of the proletarian line that was predominant in the previous period. Bettelheim’s taking this position justifies the use of the epithet “Stalinist” in referring to him, because at that time he still considered that under Stalin the proletariat was in power. As noted by Jérôme Leleu in the following note, Bettelheim changed his position in the early 1980s. Further, in his exchanges with Sweezy, Bettelheim criticizes the “obscurantism” (sic!) of the positions developed by Fidel Castro and Che Guevara, saying that there are real problems behind their rejection of the market. Bettelheim considers, as did the various categories of Stalinists and sectarian leftists, that the Cuban leadership stemming from the 26 of July Movement was petit-bourgeois. Samuel Farber used that same characterization in the 2000s in several writings describing the PSP as “proletarian” and the 26 July Movement as “downgraded and petit bourgeois,” or even “Bohemian” in the case of Che Guevara. See the very fair critique made by Janette Habel and Michael Löwy, “Ernesto Che Guevara: penser en temps de révolution. Contre l’approche biaisée de Samuel Farber,” Contretemps No 58, July 2023 (in French).

[19] According to Jérôme Leleu: “Charles Bettelheim’s thought was extremely variable throughout his life. A theoretician of planning and development strategies from the time of his doctoral thesis in 1939, he was later, in particular in the 1960s, to theorize the law of correspondence between production relations and the nature of the productive forces at a time when he was taking a particular interest in the transition towards Socialism. Starting in the late 1960s and during the 1970s, he would refute his earlier theses on the primacy of the productive forces to gradually promote the role of the Political, Ideology and the Party during the period of transition to Socialism in a Leninist perspective, encouraged by his infatuation with Maoism and the Chinese revolutionary experience.” Leleu adds: “During the 1980s, he again refuted his earlier vision by qualifying Leninism, and by demonstrating in the last volume of his Class Struggles in the USSR that the Russian Revolution had only led to a ‘new type’ of Capitalism (Bettelheim, 1982) and that the takeover of power by the Bolsheviks in 1917 was carried out by an intelligentsia who smothered the aspirations of the Russian population as a whole.” (Translation CADTM).

[20] A few years later, in 1968–1969, in the public exchange of letters with Paul Sweezy of Monthly Review mentioned above, Bettelheim states that the plan “must be developed and implemented by the base at the initiative of the masses.” During the same period, he took as his model of the transition to Socialism what was happening in China, which clearly shows the limits of Bettelheim’s vision regarding the initiative of the masses and their actual intervention in decision-making.

[21] I dealt with Lenin’s positions on these questions in “Lenin and Trotsky confronting the bureaucracy – Russian revolution and transitional societies” published by Europe Solidaire Sans Frontières, 21 January 2017, https://www.europe-solidaire.org/spip.php?article37717

[22] Guevara Ernesto Che, “La otra carta de despedida del Che a Fidel” firmada el 26/03/1965 publicada el 28/06/2019 por La Tizza Cuba https://medium.com/la-tiza/la-otra-carta-de-despedida-del-che-a-fidel-d3a61b0443b

[23] In June 1964, Marcelo Fernández Font replaced Alberto Mora as Minister of Foreign Trade. Alberto Mora became a collaborator of Che Guevara in the Ministry of Industry.

[24] Marcelo Fernández Font, “Desarrollo y funciones de la banca socialista en Cuba”  (Development and functions of the Socialist bank in Cuba), Revista Cuba socialista, year 4, n°30, February 1964, 32-50.

[25] Che Guevara supported the same position on banks and loans in Apuntes (already quoted) La Havane, 2006, 174-178.

[26] Alberto Mora, “En torno a la cuestión del funcionamiento de la ley del valor en la economía cubana en los actuales momentos”, Revista Comercio exterior, n°3, June 1963.

[27] Jan Willem Stutje, Ernest Mandel A Rebel’s Dream Deferred, p. 154.

[28] Ernesto Che Guevara, “La otra carta de despedida del Che a Fidel” (The other farewell letter from Che to Fidel) dated 26/03/1965, published on 28/06/2019 on the Cuban website La Tizza Cuba https://medium.com/la-tiza/la-otra-carta-de-despedida-del-che-a-fidel-d3a61b0443b (in Spanish). In English, see https://revolutionarystrategicstudies.wordpress.com/2019/07/15/the-other-farewell-letter-from-ernesto-che-guevara-to-fidel-castro-is-published/

[29] “¿Cómo hacer participar a los trabajadores? Esta es una pregunta que no he podido responder. Considero que este es mi mayor fracaso, y es una de las cosas  sobre las que hay que reflexionar, porque implica igualmente el problema del partido y el Estado, las relaciones entre el partido y el Estado”.

[30] http://www.ernestmandel.org/new/ecrits/article/l-exemple-de-che-guevara-inspirera

[31] See Ernest Mandel, “Au nom du Che” (In the name of Che), 1December 1989,  https://www.europe-solidaire.org/spip.php?article67378 (in French) In Spanish: https://rebelion.org/en-nombre-de-che-guevara/

[32] Marta Harnecker, Les concepts élémentaires du matérialisme historique, Paris, (Introduction to Elementary Concepts of Historical Materialism) L’Harmattan, 1985 [1969], 365 pages.  In English, see https://www.marxists.org/history/erol/periodicals/theoretical-review/tr-7-1.pdf  (pp. 21-29).

[33] See https://chicagoalbasolidarity.org/2023/07/14/the-other-farewell-letter-from-che-guevara-to-fidel-castro/

[34] Ernesto Che Guevara, Apuntes criticos a la economia politica, Editorial Ciencias Sociales, Centro de Estudios Che Guevara, Ocean Press, La Havana, 2006, 397 pages.

[35] Ernest Mandel refers to this in internal letters within the Fourth International he had sent from Cuba. See Ernest Mandel’s archives at the International Institute for Social History in Amsterdam.

[36] See Jan Willem Stutje, Ernest Mandel A Rebel’s Dream Deferred.