A CONSPIRACY OF SILENCE? llOYD GEORGE AND BAsil ZAHAROFF There is not a single reference to Sir Basil Zaharoff in Lloyd George’s War Memoirs & Ll G’s biographers completely ignore him. Yet the two men were closely associated throughout World War 1 and during the whole period of the 1918–22 Coalition Government. It is curious that objective biographers should have ignored this enigmatic onald McCormick’s Basil Zaharoff was considered THE Mask of Merlin was by many to be a Machiavellian fig- figure who, as much as Dpublished in 1963, some ure – disreputable and notorious for eighteen years after David Lloyd his consistent use of corrupt busi- anyone, was responsible George died and forty-one years ness practices – although newspa- for the events which after he left prime ministerial per tycoon Lord Riddell called him office. Yet, although Zaharoff’s ‘a wonderful man’.3 French Prime caused Lloyd George’s obituary in The Times described Minister Clemenceau once called 4 1 his relations with Lloyd George him ‘the sixth power in Europe’, fall from power. Cecil as being ‘close and cordial during and one historian has written that Bloom traces the story the War’, 2 this book represented Zaharoff had become ‘a figure of the first attempt to cast light on European legend (or demonology) of Zaharoff and Lloyd the nature of Lloyd George’s asso- long before his death’.5 It was once ciation with this very rich arms claimed that through Lloyd George George. dealer. he had the same influence on the 22 Journal of Liberal History 86 Spring 2015 A CONSPIRACY OF SILENCE? llOYD GEORGE AND BAsil ZAHAROFF British government that he had pre- number of fiction writers using his papers released by the Wiltshire and viously had on the French thanks character in their novels. Andrew Swindon Archives Service in 1975, to Clemenceau; and it was said that Undershaft, the unscrupulous arms together with a number from both he knew most of the British Cabi- dealer in George Bernard Shaw’s the National Archives and Parlia- net and was a personal friend of play Major Barbara (1905) has, for mentary Archives, make it clear Bonar Law and of Cabinet minister example, been said to be based on that Lloyd George used Zaharoff Walter Long. The writer Osbert Zaharoff, and many other eminent to conduct secret negotiations with Sitwell met him several times and novelists including Upton Sinclair, the Turks – with the aim of brib- has recorded that when he first saw Gerald Kersh and Eric Ambler have ing their leaders, eventually to the him there was ‘something evil and portrayed his character in their extent of $25 million dollars – to imposing about his figure’ and that books. Nevertheless, he was gen- get them to make peace with the he resembled ‘a vulture’.6 erous and gave large sums to good Allies; and, as a result, Zaharoff did His place of birth is shrouded in causes as well as endowing uni- receive a number of honours. The mystery. He was probably Turk- versity chairs – however it must archives also show the vigorous ish, born in 1849, but he some- be borne in mind that, in all likeli- attempts made by Zaharoff’s sup- times claimed to be Romanian, hood, such generosity was princi- porters in government to gain such Greek, Polish or Russian. He died pally intended to foster a favourable honours for him. He was awarded in Monte Carlo in 1936. He started reputation. first the Grand Cross of the British selling armaments in Greece in 1877 So why were Lloyd George’s Empire, then the Grand Cross of for the Anglo-Swedish company connections with Zaharoff kept the Order of the Bath, and eventu- Nordenfelt, and stayed with the quiet over so many years? The ally a knighthood. company when it was taken over by Times reviewed McCormick’s In 1965 McCormick followed up the British Vickers Corporation in book in September 1963, but it was on his first book by writing a biog- 1897, continuing to work for Vick- a very short review that accused raphy of Zaharoff entitledPedlar ers for thirty years and becoming McCormick of failing to pro- of Death, in which he repeated his a director. There he formed a close vide evidence for the charges laid earlier statement that Lloyd George association with its financial direc- against the former prime minister had sent Zaharoff on various secret tor, Sir Vincent Caillard. and pronounced that a degree of missions during the war. In this Zaharoff was said to have been questionable judgement seriously book Zaharoff is described as ‘a despised by King George V, yet he reduced the value of the biography. super spy in the Lloyd George cir- received a knighthood from him.7 The book did not ignite any inter- cle’.8 However it appears that Zaha- He became obsessed with gain- est in a possible follow-up on the roff’s early connection with Lloyd ing state honours; after receiving story until some years later. How- George was a hostile one: Lloyd a number from the French gov- ever, McCormick seems to have George was attacking the pre-war ernment, one of his key objectives overlooked one crucial aspect of activities of munitions manufac- became the acquisition of British the relationship between the two turers and Zaharoff saw him as a honours, which he termed ‘choco- men: he records simply that during dangerous enemy. Later, though, late’ when referring to the mat- the war Zaharoff was sent on ‘vari- he decided that it was in his inter- ter in confidential documents. His ous secret missions’ by the prime Left: Basil est to befriend the man he believed unsavoury reputation resulted in a minister, but gives no details. Yet Zaharoff in 1928 was going to become a key figure Journal of Liberal History 86 Spring 2015 23 A CONSPIRACY OF silENCE? in British politics. He took steps to to be the UK and France – but he Zaharoff’s nominal suzerainty in some form find out as much as he could about then decided that Zaharoff should over Palestine. Lloyd George – his weaknesses and proceed with his mission. Some principal Nothing came of Zaharoff’s his secrets – and for this he used disclosure of these events did occur Turkish mission in 1917 but, with Arthur Maundy-Gregory, later to before the release of the official involve- Lloyd George’s connivance, he feature on Lloyd George’s behalf archived documents, but what is made a further attempt to bribe the in the so-called honours scandal. less well known is that, as part of ment with Turks in the following year. Before It has been suggested that Zaha- this deal, Lloyd George was pre- this, however, a separate effort was roff had a hold over Lloyd George pared to consider allowing Turkey Lloyd George made to explore the possibility of because of a brief affair with Emily to retain some form of light suze- peace with Turkey, but this did Ann Burrows, Zaharoff’s former rainty over Palestine. One further began when not involve Zaharoff. This effort wife, but it was in 1915 when Lloyd thing that emerges from the papers is described in Lloyd George’s George became Minister of Muni- now available is the very considera- the latter War Memoirs as being ‘not satis- tions in Asquith’s administration ble extent to which the correspond- factory’ and consisted of a meet- that Zaharoff’s relationship with ence regarding Zaharoff’s activities attempted ing in Switzerland in December Lloyd George strengthened.9 was kept secret from most govern- 1917 conducted by Philip Kerr, one Zaharoff’s principal involve- ment ministers and civil servants to bribe the of Lloyd George’s additional pri- ment with Lloyd George began – and for this purpose Zaharoff Turkish lead- vate secretaries. Kerr was empow- when the latter attempted to bribe was given the code name ‘Zedzed’, ered by Lloyd George and General the Turkish leaders headed by with ‘Chairman’ and ‘Treasurer’ ers headed Smuts, a member of the War Cabi- Enver Pasha with large sums of being used on a number of occa- net, to negotiate with Dr Parodi money to give up hostilities against sions to indicate the prime minister by Enver of Geneva, who was acting on the Allies, and it is this aspect of the and the chancellor of the excheq- behalf of opposition elements in relationship between the two men uer respectively. In return for act- Pasha with Turkey, about the possibility of a that forms the principal thrust of ing as an intermediary, Zaharoff peace deal. Parodi had had several this article. But even before this, was to receive some ‘chocolate’, and large sums conversations with members of Zaharoff had been deeply involved his obsession with gaining Brit- the Turkish Red Cross Mission in with the British government ish honours is referred to in the of money Switzerland and he believed that, when Asquith was prime minis- correspondence on a number of while Enver Pasha was a pure mili- ter. Through Caillard, he told the occasions. Lloyd George did not to give up taristic Germanophile who was government in November 1915 that usually deal directly with Zaha- confident of German victory, one £1.5 million would allow him to roff but used Caillard as intermedi- hostilities small part of the Turkish govern- bribe the Greek government into ary because of the latter’s business ment – an Ententophile section – joining the Allies and start fighting links with Zaharoff, and all was against the was interested in seeking peace if the Bulgarians, thus shortening the coordinated in Whitehall by Wal- they could get moderate terms for war.