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Sir Basil Zaharoff and Sir Vincent Caillard as Instruments of British Policy towards Greece and the Ottoman Empire during the Asquith and Lloyd George Administrations, 1915–8

2012; Routledge; Volume: 34; Issue: 4 Linguagem: Inglês

10.1080/07075332.2012.690200

1949-6540

Joseph A. Maiolo, Tony Insall,

World Wars: History, Literature, and Impact

Abstract The notorious arms trader Sir Basil Zaharoff is remembered as the archetypal 'merchant of death'. During the First World War, he is alleged to have exercised a malign influence over statesmen in London and Paris. Recently released Foreign Office files now allow us to document Zaharoff's wartime activities on behalf of the British government as an agent of influence in the Levant. The new sources reveal that Sir Vincent H.P. Caillard, the financial director of the arms-maker Vickers, played a key role in making Zaharoff's services available to prime ministers Asquith and Lloyd George. While Zaharoff has often been portrayed as a sinister force, manipulating statesmen into pursuing his financial and political interests, the reality was the reverse. Zaharoff was a convenient tool of two prime ministers rather than a powerful political manipulator in his own right. Keywords: ZaharoffCaillardAsquithLloyd GeorgeFirst World War Notes 1. C. Trebilcock, 'Legends of the British Armament Industry 1890–1914: A Revision', Journal of Contemporary History, v (1970), 3–19; and his The Vickers Brothers: Armaments and Enterprise, 1854–1914 (London, 1977), xxxiii. 2. The French journalist Roger Mennevée, in Sir Basil Zaharoff, l'Homme mystérieux de l'Europe (Paris, 1928), attempted to document the arms dealer's political and business activities. Later biographies such as R. Levisohn, The Man Behind the Scenes: The Career of Sir Basil Zaharoff (London, 1929), G. Davenport, Zaharoff: High Priest of War (Boston, 1934), Rochat-Cenise, Roi des armes: La vie mystérieuse de Sir Basil Zaharoff, (Bienne, 1943), R. Neumann, Zaharoff: The Armaments King (London, 1935), and D. McCormick, Pedlar of Death: The Life of Sir Basil Zaharoff (New York, 1965), did not add much to Mennevée's sources. The most recent biography by A. Allfrey, Man of Arms: The Life and Legend of Sir Basil Zaharoff (London, 1989), cites the Hankey diaries, the Lloyd George Papers and the Vickers archive held at Cambridge University Library. 3. S. Roskill, Hankey: Man of Secrets, 3 vols. (London, 1970–74) i. 239, 466. 4. R. Warman, 'The Erosion of Foreign Office Influence in the Making of Foreign Policy, 1916–1918', Historical Journal, xv (1972), 133–59; K. Morgan, 'Lloyd George's premierships: A Study in "Prime Ministerial Government"', Historical Journal, xiii (1970), 130–57; J. Turner, Lloyd George's Secretariat (Cambridge, 1980), 60–82; more recently, J. Schneer, in The Balfour Declaration: The Origins of the Arab-Israeli Conflict (New York, 2010), 289–300, only uses the FO 1093/47–57 files to narrate Zaharoff's attempt to bribe the Turks. On the release of the Caillard papers and the FO 1093 generally, see K. Hamilton, The Records Of The Permanent Under-Secretary's Department: Liaison between the Foreign Office and British Secret Intelligence, 1873–1939 (Foreign & Commonwealth Office, 2005), 27–42. 5. D. Dutton, The Politics of Diplomacy: Britain and France in the Balkans in the First World War (London, 1998), 17–21. 6. G. Leon, Greece and the Great Powers, 1914–17 (Thessaloniki, 1974), 1–206; M. Mazower, 'The Messiah and the Bourgeoisie: Venizelos and Politics in Greece, 1909–1912', Historical Journal, xxxv (1992), 885-–904; M. Smith, 'Venizelos' Diplomacy, 1910–23' in P. Kitromilides (ed), Eleftherios Venizelos: The Trials of Statesmanship (Edinburgh, 2008), 134–92. 7. Leon, Greece and the Great Powers, 207–44; Dutton, Politics of Diplomacy, 25–49. 8. C. M. Woodhouse, 'The Offer of Cyprus: October 1915' in P. Calvocoressi et al. (eds), Greece and Great Britain During World War I (Thessaloniki, 1985), 77–97. 9. Leon, Greece and the Great Powers, 319–20; B. Thompson, The Allied Secret Service in Greece (London, 1931), 87–162; C. Mackenzie, First Athenian Memories (London, 1931) and his Greek Memories (London, 1932). 10. The first document in the collection is an envelope dated 13 Nov. 1915, [Kew, United Kingdom National Archives, Public Record Office], F[oreign] O[ffice Records] 1093/47. It has the following cryptic but suggestive scribbles on it: '3 points for him tomorrow 1) Source to be untraceable, amount to be less 2) No fixed sum, credit of x up to certain amount 3) Payment on results.' 11. R. Davenport-Hines, 'The Ottoman Empire in Decline: the Business Imperialism of Sir Vincent Caillard' in R.V. Turrell and J.J. van Helten (eds), The City and the Empire (London, 1985), 118–34. 12. In addition to the sources cited above, see R. Davenport-Hines, 'Zaharoff, Basil (1849–1936)', Oxford Dictionary of National Biography, Oxford University Press, 2004; online edn, Jan 2011 [ http://www.oxforddnb.com/view/article/38270, accessed 16 Jan 2011]. In 1901 Zaharoff took over Vickers's intriguingly named 'Entertaining, sub-Agencies and Intelligence Department'. See A. Vickers to Zaharoff, 20 Jan. 1918, [Cambridge University Library], Vickers MSS 786. 13. Hankey diaries, 14 Dec. 1915, [Cambridge, Churchill College Archive] H[A]NK[E]Y 1/1; Caillard to Walter Long, 11 Jan. 1923, [Wiltshire and Swindon Record Office, Chippenham], Long Papers 947/813. In Balfour Declaration, Schneer, who consulted the FO 1093 collection, erroneously writes that Zaharoff 'employed' Caillard as his agent in London. 14. On Caillard's political views, see Davenport-Hines, 'The Ottoman Empire', and J.A. Turner, 'The British Commonwealth Union and the General Election of 1918', English Historical Review, xciii (1978), 528–59. 15. For instance Caillard to Asquith, 9 July 1916, FO 1093/50. 16. Zaharoff to Caillard, 21 Nov. 1915, and Caillard to Lord d'Abernon, 25 Nov. 1915, FO 1093/47. 17. Caillard to Zaharoff, 23 Nov. 1915, FO 1093/47. 18. Leon, Greece and the Great Powers, 309–10. 19. Dutton, Politics of Diplomacy, 61–78. 20. Asquith to Caillard, 11 Dec. 1915, FO 1093/47. Also a note dated 11 Dec. 1915 in the French diplomatic correspondence confirms that Zaharoff had obtained the approval of Briand and other top French officials to act on behalf of the Entente in Greece. The note states: 'M Zaharoff, a Greek associated with the Vickers company, told Mr Painlevé [the French War Minister] and Mr Liard that he would go to Athens, where he has had frequent contacts with Venizelos, to do propaganda on behalf of the allies. This is not a matter of a mission – and still less a paid mission – but Zaharoff would like to be assured that his voyage would please the government.' That same day the French Foreign Ministry informed its Minister in Athens, Jean Guillemin, that Zarahoff's mission '… is sufficiently important and delicate that you should deal with it yourself … You have enough tact to manage this with the maximum of effect and the minimum of compromise to the Legation. If the funds which you have available are not sufficient, let me know'. Both documents are in [Paris, France,] M[inistère des] A[ffaires] E[trangères], Série Guerre 1914–1918, Balkans – Grèce 248. 21. Caillard to Barclays Bank, 14 Dec., and Zaharoff to Caillard, 15 Dec. 1915, FO 1093/47; War Office to Caillard, 4 May 1916, and McKenna to Caillard, 25 April 1916, FO 1093/49; 'Secret Service Blue Notes, 1913–48', [Kew, United Kingdom National Archives, Public Record Office], T[reasury files] 165/445. According to http://www.measuringworth.com, in 2010, the relative worth of £1,487,000 from 1915 is £92,400,000, using the retail price index. 22. G. H. Cassar, Asquith as War Leader (London, 1994), 142. 23. Hankey diaries, 14 Dec. 1915, HNKY 1/1. 24. Cassar, Asquith, 142–5. 25. Hankey diaries, 14 Dec. 1915, HNKY 1/1. 26. Caillard to Lord d'Abernon, 25 Nov. 1915, FO 1093/47; Zaharoff to Caillard, 6 and 17 Feb. 1916, FO 1093/48. 27. Zaharoff to Caillard, 15 and 18 Dec. 1915, FO 1093/47. 28. Zaharoff, 'Notes', n.d., FO 1093/47; Zaharoff to Caillard, 20 Jan. 1916, FO 1093/48; also see French Minister in Athens to French Foreign Ministry, 20 and 25 Jan. 1916, and the French Consul-General in Monte Carlo to French Foreign Ministry, 29 Jan. 1916, MAE, Série Guerre 1914–1918, Balkans – Grèce 250. 29. Asquith to Hankey, 24 Jan. 1916, [Oxford, Bodleian Library], Asquith Papers, MSS 29, folio 203. 30. Zaharoff to Caillard, 28 Jan., 4 and 6 Feb. 1916, FO 1093/48. 31. Caillard to Asquith, 1 Feb. 1916, FO 1093/48; Caillard to Zaharoff, 4 and 9 Feb. 1916, FO 1093/49. 32. Zaharoff to Caillard, 9, 10–11, 15, 21 Feb. 1916; Caillard to Zaharoff, 18 Feb. 1916, FO 1093/48. 33. Asquith to Zaharoff, 6 Mar 1916, FO 1093/49. This letter was later used by Long and Caillard when they lobbied Lloyd George for an honour for Zaharoff. 34. Dutton, Politics of Diplomacy, 84–115. 35. Leon, Greece and the Great Powers, 361–74. 36. Zaharoff to Caillard, 30 June 1916, FO 1093/48; Caillard to Zaharoff, 8, 21, and 29 July and 3 Aug. 1916, Zaharoff to Caillard, 11, 15, 23, and 29 July 1916, and Caillard to Asquith, 29 July 1916, FO 1093/50. Ironically, yet again, the transfer of the money to Zaharoff was delayed owing to banking errors. See Caillard to McKenna 15 Aug. 1916, FO 1093/51. The authors have found no evidence that the Foreign Office was consulted about the payment. 37. Dutton, Politics of Diplomacy, 116–42; Y. Mourélos, 'British Policy towards King Constantine's Dethronement and Greece's Entry into the War' in Greece and Great Britain, 131–8 and his L'intervention de la Grèce dans la grande guerre, 1916–1917 (Athens, 1983). 38. Zaharoff to Caillard, 11 May 1916, FO 1093/49; Caillard to Asquith, 14 Sept. 1916, FO 1093/50 and Asquith Papers, MSS Eng. c. 6715, folios 42–3. 39. M. Aksakal, The Ottoman Road to War in 1914: The Ottoman Empire and the First World War (Cambridge, 2008), 93–187; F.A.K. Yasamee, 'Ottoman Empire' in K. Wilson (ed), Decisions for War (London, 1995), 229; Michael Reynolds, Shattering Empires: The Clash and Collapse of the Ottoman and Russian Empires, 1908–1918 (Cambridge, 2011), 107-–15. 40. K. Jeffery, MI6: The History of the Secret Intelligence Service 1909–1949 (London, 2010), 121–2. According to http://www.measuringworth.com, in 2010, the relative worth of £4,000,000 from 1915 is £249,000,000 using the retail price index. 41. Zaharoff to Caillard, 16 April 1916, FO 1093/48. 42. Correspondence between Caillard and Hamilton, McKenna's Private Secretary, 11 May 1916, FO 1093/49; Caillard to Zaharoff, 16 June 1916, FO 1093/48. 43. Hankey diaries, 2 June 1916, HNKY 1/1. 44. Caillard to Asquith, 9 July 1916, FO 1093/50. 45. Zaharoff to Caillard, 7 July 1916, FO 1093/50. 46. Morgan 'Lloyd George's Premiership', 130–57; Turner, Lloyd George's Secretariat. 47. V. Rothwell, British War Aims and Peace Diplomacy, 1914–1918 (Oxford, 1971); D. French, The Strategy of the Lloyd George Coalition 1916–1918 (Oxford, 1995); B. Millman, 'A Counsel of Despair: British Strategy and War Aims 1917–18', Journal of Contemporary History, xxxvi (2001), 241–70. 48. M. Gilbert, Sir Horace Rumbold (London, 1973), 149–51; Schneer, Balfour Declaration, 255–62. 49. Turner, Lloyd George's Secretariat, 77–82. 50. Caillard to Zaharoff, 21 and 31 May 1917, FO 1093/52. 51. R. Murphy, 'Walter Long and the Conservative Party, 1905–1921', (PhD thesis, University of Bristol, 1984), 281–351. Caillard and Zaharoff referred to Long in their correspondence with the codename 'Brewis'. Schneer, in Balfour Declaration, 292, 295, 355, mistakenly concluded that 'Brewis' was an intelligence officer. 52. Caillard to Zaharoff, 14 June 1917, FO 1093/52. 53. Zaharoff to Caillard, 23 June 1917, FO 1093/52. According to http://www.measuringworth.com, in 2010, the relative worth of US$2,000,000 from 1917 is US$34,000,000, using the consumer price index; using the same source and measure, in 2010, the relative worth of US$10,000,000 from 1917 is US$170,000,000. 54. Caillard to Zaharoff, 27 June 1917, FO 1093/52 and in [London, Parliament, Records of the House of Lords and House of Commons], Lloyd George Papers, F/6/1/6. 55. Schneer, Balfour Declaration, 277–88. 56. Balfour to Drummond, 7 July 1917, and memos by A. Ryan and L. Mallet to Balfour, 13 July 1917, FO 800/206. 57. Caillard to Long, 1 Aug. 1917, Long Papers 947/600, with covering a memo of the same date to Lloyd George describing Zaharoff's trip to Switzerland, in FO 1093/52 and in Lloyd George Papers, F/6/1. 58. Caillard to Zaharoff, 17 Aug. 1917, and Caillard to Lloyd George, 1 Sept. 1917, FO 1093/52. 59. Caillard to Zaharoff, 21 Nov. 1917, FO 1093/52. 60. Robertson, 15 Nov. 1917, [Kew, United Kingdom National Archives, Public Record Office], W[ar] O[ffice Records] 106/1510. 61. Zaharoff to Caillard, 27 Nov. 1917, FO 1093/52. 62. Zaharoff to Caillard, 27 Nov. 1917, FO 1093/52. 63. Hankey diaries 28 Nov. 1917, HNKY 1/4. 64. Caillard to Zaharoff, 7 Dec. 1917, FO 1093/52; Bonar Law to Lloyd George, 7 Dec. 1917, Lloyd George Papers, F/30/2/27. 65. Caillard to Lloyd George, 12 Jan. 1918, FO 1093/54, and in Lloyd George Papers, F/6/1/8. 66. Caillard to Zaharoff, 9 Jan. 1918, FO 1093/54 and in Lloyd George Papers, F/6/1/7–8; Turner, Lloyd George's Secretariat, 80–2; Schneer, Balfour Declaration, 357. 67. Zaharoff to Caillard, 15 Dec. 1917, FO 1093/52, and in Lloyd George Papers, F/6/1–3. 68. Bonar Law to Lloyd George, 1 Jan. 1918, and in Lloyd George Papers, F/30/2/28. 69. Robertson to Lloyd George, 4 Jan. 1918, Lloyd George Papers, F/44/3/45; Caillard to Zaharoff, 9 Jan. 1918, FO 1093/54. 70. Letter to Bonar Law, 24 May 1918, FO 1093/54. 71. Zaharoff to Caillard, 29 Jan. 1918, FO 1093/54, and in Lloyd George Papers, F/6/1/13. 72. Caillard to Zaharoff, 5 Feb. 1918, FO 1093/55. 73. Reynolds, Shattering Empires, 167–218. 74. Long diary, entries of 28 and 30 June, and 27 July 1918, Long Papers 947/1884; Walter Long to the King's private secretary, 31 July 1918, Long Papers 947/778. 75. Challenged on this by Caillard, Lloyd George denied that he had instructed anyone else to negotiate on his behalf. Though he could not completely exclude the possibility that Balfour had authorised such a mission, he considered it most unlikely. Caillard to Zaharoff, 30 Aug. 1918, FO 1093/56, and in Lloyd George Papers, F/6/1/17. The description provided by Abdul Kerim does not fit any of the other missions that are known to have been sent during this period, but there might have been another, or just conceivably, a French initiative. 76. Zaharoff to Caillard, 21 Aug. 1918, FO 1093/56, and in Lloyd George Papers, F/6/1/16(a) and Long Papers 947/600. 77. Caillard to Zaharoff, 30 Aug. 1918, FO 1093/56, and in Lloyd George Papers, F/6/1/17. According to http://www.measuringworth.com, in 2010, the relative worth of US$25,000,000 from 1918 is US$362,000,000, using the consumer price index. 78. Zaharoff to Caillard, 3 Oct. 1918, FO 1093/56, Long Papers 947/600 and in Lloyd George Papers, F/6/1/27. The original report is annotated by Caillard's secretary: 'Copies sent to Mr Walter Long and Mr Bonar Law, by hand, Wednesday 9th October 1918. Copy sent to Mr Arthur Balfour, Saturday October 26th 1918, when Sir Basil was over here, but ill with influenza.' 79. Bonar Law to Caillard, 12 Oct. 1918, FO 1093/56. 80. 'Memo presented to the PM about payment to the Turks', 5 Nov. 1918, FO 1093/56. Enver removed 7,000,000 francs from the Swiss bank account before Zaharoff could recover it. 81. Zaharoff to Caillard, 23 Oct. 1918, FO 1093/56. 82. Zaharoff to Caillard, 30 June 1916, FO 1093/48. 83. Leon, Greece and the Great Powers, 310; G.B. Leon, Greece and the First World War: From Neutrality to Intervention, 1917–1918 (New York, 1990); D. Stevenson, 1914–1918: The History of the First World War (London, 2004), 160–1, 332. 84. Reynolds, Shattering Empires, 167–218. 85. War Cabinet, 3 Jan. 1918, WC313, [Kew, United Kingdom National Archives, Public Record Office], C[abinet] O[ffice Records] 23/5. 86. D. French, 'Failures of Intelligence: the retreat to the Hindenburg Line and the March 1918 Offensive' in M. Dockrill and D. French (eds), British Policy during the First World War (London, 1996), 87, 91. 87. Lloyd George to Zaharoff, 24 Dec. 1918, FO 1093/57. The Foreign Office were finally made aware of Zaharoff's activities since they were required to sponsor his GBE because he was a foreign national. Although there is no evidence that Zaharoff purchased his GCB, the possibility that he did cannot be excluded: see Andrew Cook, Cash for Honours: The True Life of Maundy Gregory (London, 2008), about the purchase of honours during Lloyd George's administration. 88. Years later Caillard prepared for Long a summary of his contribution in what appears to be an application for a knighthood: Caillard to Long, 11 Jan. 1923, Long Papers 947/813.