The World Today

MR. JACKMAN:

At our last meeting of The Empire Club, prior to Christmas, we had as our guest of honour, Mr. David Rockefeller, an American of considerable means and wide business interests, who is reputed to be worth several hundreds of millions of dollars. To herald in our New Year, it is perhaps therefore fitting that we have as our guest today, one of our home-grown variety of multimillionaires, Canada's own Roy Thomson.

The story of Roy Thomson is a living legend in Canada. Our guest, the son of a Toronto barber, started work at the age of fourteen. As a very young man, he felt he was making a real business breakthrough when he won a franchise to sell wireless radios in Northern Ontario. In his efforts to sell his product, he quite understandably ran into a certain amount of consumer resistance by reason of the fact that there were no radio stations with a strong enough signal to serve the area of his franchise. The obvious answer to Roy Thomson who was left holding a large inventory of unsold radios was to start his own radio station;--which he did.

Moving on from radio, he set up his own newspaper in Timmins and proceeded, over the years, to buy up any smalltown newspaper he could persuade or cajole from its owners. In the mid 50's, he purchased the prestigious "Daily Scotsman" in Edinburgh and used it as a stepping stone to gain control of commercial television in Scotland, even though most British investors felt that the industry had absolutely no future. His entry into British television heralded the period of the Thomson family's greatest expansion. Their publishing interests expanded throughout North America, the United Kingdom, and internationally to such far away places as the Caribbean, Africa and South East Asia so as to become the greatest publishing empire the world has ever seen. In 1966 our guest perhaps reached the height of publishing prestige by the acquisition of "The Times" of London, the most prestigious and influential newspaper in the world.

Our guest is a man who has been honoured by many nations. The pursuit of recognition by self-made men has often been the subject for gentle derision or humour in our literature, particularly on the part of those who have not been so fortunate;--and although our guest has received great honour, he has never lost his sense of humour or the ability to keep all things in proper perspective. We can well remember when Roy Thomson was made a Peer of the Realm and the CBC did an hour-long special on our guest; in a scene showing Lord Thomson attending on a fashionable Saville Row tailor to be measured for his ceremonial robes, the fitter suggested that the ermine hem was a little too long and might drag on the floor of Westminster Abbey and should be taken up an inch or so. Our guest immediately replied, "Oh don't bother with that, this has got to be worn by my son sometime, and since he is three inches taller, and at the prices you charge I'll be darned if he is going to order another".

If this were a formal dinner in London, on some great ceremonial occasion, it would be about this time in the proceedings that some official would rise and in a loud sonorous voice proclaim: "My Lords, Ladies and Gentlemen, pray silence please for the Right Honourable Sir Roy Herbert Thomson, First Baron Thomson of Fleet and of Northbridge of the City of Edinburgh, Knight Grand Cross of the Order of the British Empire, Commander of the Royal Order of the Phoenix, Doctor of Law, Doctor of Literature, Doctor of Civil Law, Doctor of Humane Letters, former Chancellor, Honorary Colonel, Honorary etc., etc., ad infinitum." But to those of us here in Toronto, who know and love Roy Thomson best, who remember those cold wintry evenings when one would often see, long after business hours, our guest walking home with a bag full of work under one arm and a bundle of newspapers under the other, the best salutation I can offer is to present to you our very dear and very old friend, Roy Thomson.

THE RT. HON. LORD THOMSON OF FLEET:

I don't remember just how many years ago it is since I last addressed the Empire Club. I am quite sure that world conditions, and, indeed, my own circumstances, have altered since that day, so many years ago.

As the owner of the national newspapers of England, the Times and the Sunday Times, and the national newspapers of Scotland, Wales and Northern Ireland, the Scotsman, the Western Mail and the Belfast Telegraph respectively; I am in a singularly privileged position to meet and discuss world affairs with the rulers and leaders of many of the most important countries in the world. It is fascinating and instructive to learn the varied and different national viewpoints.

I do not have to tell you that we are facing a period of great transition. It seems to me that we have a basic contradiction running through international affairs which is going to cause us a lot of worry and make a lot of newspaper headlines. There is a continuing movement towards the larger units, groupings of national countries and of business. There is also the fact that nationalism seems to have got a second wind. Thus, we have just seen in recent months the real arrival on the world stage of China and we have seen small new Bangladesh hoping to be admitted to the community of nations. We have the emergence of the united states of Europe--which is how I see Europe developing now that Great Britain has become a member of the Common Market. It amazes me that at a time when China, Russia and the United States are obviously super powers with Japan catching up to them, there should still be people who want Britain to remain as a small island off the continent of Europe. We are so right to go into Europe; I know that many opponents think that Britain will lose its essential Britishness, but I am sure there is a way to retain our distinctive national characteristics while working together as Europeans. I have not noticed the French becoming any less French or the Germans any less German in the 10 years of the Common Market.

In terms of population, when we are in, Europe will be the third of the great world blocks, exceeded only by China and India. It will be the second most prosperous block in the world matched and indeed exceeded in capacity, wealth and power only by that great entity which we all know as the United States of America.

It will be a nation composed of intelligent people with a firm and inherent belief in the fundamental and basic principles of democracy and, by and large, a nation capable of vast business enterprise.

It is an undeniable fact that Britain's entry into Europe will perhaps loosen some of the close bonds with the "Commonwealth", but as a result of this, Great Britain will undoubtedly facilitate the ability of the British Commonwealth countries greatly to increase their trading and business with the new "Europe".

Superficially, it might appear that the Commonwealth nations will lose something of their favourable position vis-a-vis Britain itself, but I am convinced that if advantage is taken of the new alignment, then Canada and all the other Commonwealth countries will more than off-set the loss of tariff concessions by the very much greater business opportunities and potential that will arise for them in the new "Nations of Europe".

Since I am talking to a Canadian audience, I would seriously be remiss if I did not say quite frankly how I view the situation which exists today between Canada and its powerful and mighty neighbour, the United States of America.

It would, of course, be idle to deny that the United States has made many mistakes in its conduct of foreign affairs. But, my sincere view is that the majority of these errors were committed because they were made with the utmost good intentions; with that marked altruism that the United States has always typified.

I know we have had problems with the American import surcharge and the uncertainties of currencies. But that temporary assertion of economic nationalism by the Americans ought not to have blinded us to what brought the difficulties upon them. They had been carrying vast international burdens and in fact financing world trade by their deficit. The crisis could have been over sooner in my view if the rest of us had shown more understanding. But it's over and we seem set for a period of increased trade, especially if tariffs can now be negotiated down and nations are not preoccupied with the prestige of a narrowly fixed rate of exchange.

America may have acted somewhat out of self interest in this but we should recognise that President Nixon's leadership in a complex area has given us this opportunity of trade--we should recognise it and seize it, in my view.

Canada, I am sure, is big enough and self-reliant enough to do this. Canadians are realistic and practical people and they have always faced such challenges with determined spirit and that has made this country of ours a great nation in the councils of the world.

In recent years concessions from the States to Canada have always been very much in Canada's interests. We are, in actual fact, under United States protection and the result of this has been that Canada (unlike most other nations of the world) has suffered the minimum drain of its resources for defence and military purposes. Canada is fortunate, indeed, in having a long, undefended border with that most friendly neighbour, the United States. I am sure that if we think of other countries in the world, who are surrounded by potential or actual hostile neighbours on all sides, then Canada is indeed fortunate in not finding itself in such a precarious position.

I must confess, quite frankly, that I found it difficult to understand how some Canadians could make idle "threats" about different forms of "retaliation" against the United States because of that surcharge, now thankfully doomed.

I would suggest that far from being "hostile" or seeking "retaliation", every Canadian should be eternally grateful and thankful for such a generous, friendly and enlightened neighbour as the United States.

Now I would like to say something about my travels. I like to get around. Because I am a newspaper proprietor as I say, or because I am just plain stubborn as well as curious, I do manage to see a lot of important people. Some of the talk my editors sometimes consider worth publishing, sometimes not--it's up to them--and sometimes the talk is off-the-record. I like plain speaking. I will never forget travelling on a train in Russia with Kruschev and arguing about capitalism. But that is another story. I warmed to that man.

I recently made a journey through Asia, visiting many of the most important countries. With the emergence of China as an acknowledged great power and the unhappy war in the Indian sub-continent, he is a bold man who would make prophesies about the future of Asia.

Nonetheless, I still hold to my opinion that during the next few years we are going to witness a tremendous upsurge in financial and economic development in the Asian countries. Were I twenty-five years younger, I would go to Asia and make my headquarters there, where I am certain I could build and sustain a vast business empire.

I have never been to China, though, if I were invited, I would jump on the next 'plane. The correspondent of my London Sunday Times, Neville Maxwell, has just got back from China and a long interview with Premier Chou En Lai. Maxwell is full of enthusiasm for what he saw now that the excesses of the cultural revolution are over: we all know they are clever people--look how quickly they caught up in nuclear matters, and the Chinese told Maxwell they don't think of themselves as special people any more. They say they are pushing man's frontiers of achievement. Perhaps they are. Clearly, this great country of nearly eight hundred million people, full of human and material resources, is going to play a predominant role in Asian affairs. For long isolationist and inward-looking, China today, while repudiating any desire to play the role of a super-power, is nonetheless keenly interested in the outside world, particularly the under-developed world, where she thinks she can exert the greatest influence and win the greatest successes. She may be right, and, if so, this may not be very comfortable for Western interests. We will also have perhaps a more ineffective United Nations with China and Russia always cancelling each other out. But I suggest that, beneath all the so-called anti-imperialist propaganda, the slogans, and the little red books, China's policy in the world will continue to be governed by prudence and pragmatism. Her leaders, whatever their apparent excesses of thought or language, are in fact highly realistic, and are less likely to make a move in the dark than any comparable leadership that I can think of. Though prospects for foreign business in China are hedged about with difficulties and uncertainties, there is no doubt at all that very great possibilities exist and will grow steadily as this colossus of a country gradually evolves into a modern nation.

To a large extent, Japan, the first Asian country to accept Western technology, has already made this change. In economic terms it has every claim to be considered a great power, which accounts perhaps for the intense suspicion and mistrust which characterises China's attitude towards Japan.

The Japanese do not particularly welcome the participation of outsiders in their economy. But despite this, I am hopeful that they will move towards abolishing or lowering some of these obstacles and, in the light of this hope, I am very anxious that my own business should extend its interests in Japan. I realise that our Western style of doing business will need to be adapted considerably to Japanese usage. But I would dearly love to have the privilege and honour of being one of the first entrepreneurs to be allowed to participate in a publishing venture there.

During my travels I also visited Taiwan and South Korea where I had interviews with Chaing Kai-Shek of Taiwan and President Park of Korea. Here are two countries which, hitherto, have depended upon American backing. With the Americans engaged upon a massive act of withdrawal, both countries will face problems in the future. Taiwan, in particular, now that it has been expelled from the U.N. is in for a difficult time, but in its favour are its prosperity and the hardworking characteristics of its people. If only Chaing KaiShek or, more probably, his successor, would renounce the impractical intention of conquering mainland China, Taiwan's international future would look much brighter. But even if this were to happen, I regret to have to say that I do not see any business outlet for my companies in Taiwan. Those Chinamen are too smart: they have not left many opportunities I could discover or exploit.

Thailand, another of the countries that I visited, is also going through its troubles, symbolised by the recent military coup which in effect places all power in the hands of the army. There are millions of Chinese in Thailand, where U.S. influence and capital is also an important factor in the economy. No one knows what the effect upon this situation will be of the new relationship which promises to develop between Peking and Washington. But clearly the Thais are nervous.

Having said that, I must acknowledge the very friendly and reasonable business atmosphere in which my English language daily newspapers in Thailand operate. I own two one a morning and the other an evening paper--they have a good circulation and are very prosperous. I do not think that the recent so-called coup will have any effect upon the excellent relationships which have always existed between my companies and the Thai authorities. There are tremendous business opportunities there, so much so that I can reveal that we do have several other projects under way in Thailand.

Indonesia is another very promising Asian country. In Djakarta I had the privilege of an interview with President Suharto, and also talks with his ministers and with the governors of the various provinces. The country was in a terrible state after years of Sukarno's despotic rule when Suharto took over. But now it seems to me that it is moving quickly in the direction of stability and prosperity. I was much impressed in my contacts with the enthusiasm for business matters. The whole country is wide open for business development, and I am even now discussing and negotiating a partnership arrangement with one of the Indonesian government departments, which will, I think, be profitable for us and beneficial for them.

The Indian sub-continent is in the throes of terrible upheaval, which makes any prognostication about the future there difficult. But quite apart from the horror and uncertainty of the India-Pakistan war, doing business in India has been an uphill task. For some years, we have had a large and prosperous book printing business in India. There is no doubt that great business potentialities exist there. But there are also great obstacles placed by the central government in the way of business development. Taxes are very high, repatriation of profits is difficult, and executive salaries are pegged far below the level required to provide incentive and a just reward for business skills. Despite these counter-indications, however, the opportunities are vast and I firmly intend to expand my business interests in India.

Turning away from Asia, I would like to say something about the Middle East, whose countries I also visit frequently and know well. Here, of course, the dominant factor is the hostility between the State of Israel and the Arab States. I am glad to say I am on very friendly terms with both sides. I have visited Egypt and Israel many times. I got to know the late President Nasser quite well and another good friend of mine in Cairo is Mohammed Heikal, the editor of the very influential Arab newspaper, Al Ahram.

It was at one of my meetings with the late President that I tried to act as an intermediary. I suggested to him that if I could induce the Israelis to withdraw some of their forces (even on a token basis) from the Suez Canal area, then he should in turn agree to sit down at the conference table with the Israelis and discuss two vital problems: the possibility of a peace treaty, and the future itself. After some consideration he replied: "Yes, I am agreeable, and I will". He agreed to my conveying this message to Israel, but when I did so the Israelis were adamant that this did not meet their basic conditions. I think that had they accepted President Nasser's gesture, talks leading towards a real peace would have come about. But I do appreciate and recognise Israel's difficulties. As that remarkable woman, Mrs. Golda Meir, the Israeli Prime Minister said to me: "The Arabs can lose a hundred wars, but we cannot lose one. We would be wiped out".

It is no good my giving off a lot of false optimism about this Middle Eastern deadlock. A huge and hitherto unbridgeable gulf of mistrust exists between Israel and the Arab States. The Arabs believe that Israel is aggressive and expansion-minded. The Israelis believe that the Arabs are implacably devoted to the extermination of Israel as a nation. President Sadat has said that if the beginnings of a settlement do not emerge by the end of 1971, and that date has now passed, then war is the only alternative. I think we have to remember that when Egyptian statesmen talk like this, their belligerency is often intended for home consumption, and that the words do not necessarily mean what they appear to say. But the danger is that one day such words, whatever the intentions behind them, will be too strong, and will lead inexorably to action. If that should happen, then the menace, with the Soviet Union backing the Arabs, and the U.S. backing Israel, is of a world war with superpowers intervening. I still do not think this is likely, but there is no doubt that the Middle East, together with the India sub-continent, is one of the hot spots of today's world.

But in ten years things may look different in a lot of places. There will almost certainly be a new leader of China; I think the transition will be peaceful. There may be a change in the leadership in the Soviet Union and in the attitudes of the elite groups. The United States will, I'm sure, have recovered from some of its more serious traumas. Europe will be an infinitely stronger power. Its star is rising rapidly even now, after years of dissension, it may be we are witnessing the beginnings of an economic and political renaissance in Europe. Anyway, I hope you'll ask me back in 1982 to see if I am right and to tell you where I've been and how I see it.

Lord Thomson was thanked on behalf of The Empire Club of Canada by Lt. Col. Robert H. Hilborn, M.B.E.