James Goldsmith

PEOPLE |

Early Life and Business Ventures

James Goldsmith was a prominent figure in finance and business, known for his aggressive corporate strategies. He was notably more educated and cultured than his business partner, Jim Slater, with whom he shared a drive for business success. Goldsmith's approach to business was often described as masculine.

Corporate Raiding and Acquisitions

Goldsmith specialised in acquiring food companies. His first notable success was Slimcea, a slimming bread manufacturer, whose assets he promptly sold off, effectively acquiring the company for no cost. His portfolio expanded to include brands such as Procea bread, Elizabeth Shaw chocolates, Cavenham chocolates, Jacob's water biscuits, Holland's toffee, and Singleton and Cole.

A significant and ruthless acquisition occurred in 1968 when Goldsmith used aggressive tactics to gain control of the Ashanti Gold Mine in Northern Ghana, then considered the richest gold mine globally. This mine had been operated by a British company for more than 80 years, chaired by General Edward Spears, a noted World War II hero. Goldsmith's public relations narrative around these takeovers often emphasised excitement, adventure, and interest over financial gain, portraying an aristocratic projection.

Political and Ideological Stance

In 1980, Goldsmith departed Britain for America, expressing disgust with what he perceived as a corrupt liberal establishment in Britain.

This move followed his unsuccessful attempt to dismantle Private Eye, an endeavour that nearly led to his bankruptcy. He regarded his efforts as a struggle against this establishment, believing that tolerance of extremists seeking to destabilise society was not a virtue but rather cowardice and treason.

He projected an image of power, notably maintaining a low blink rate during conversations to appear stronger. He was a donor to the Tory party and was labelled the "unacceptable face of capitalism".

Anti-Soviet Operations

Goldsmith, despite being fundamentally a "creature of the banks," came to believe that his vast financial power, exceeding $2 billion, allowed him to exert influence over foreign policy. Residing in a grand, purpose-built house in Manhattan, which stood empty two years after his demise, he set his sights on undermining the Soviet Union.

He was convinced that the growing anti-nuclear movement in the West was orchestrated by the Soviet Union. Consequently, he collaborated with other right-wing tycoons, including Rupert Murdoch, to establish a private organisation aimed at subverting the peace movement. This initiative sought to privatise Western intelligence functions, specifically those related to subversion, thereby taking over roles traditionally held by entities such as MI5.

His primary target was the World Peace Council, which he viewed as a sinister Soviet front, dedicating millions of dollars to deep undercover operations to expose it, despite others characterising it as innocuous and ineffectual.

Setbacks and Retreat

Goldsmith encountered a significant setback during his bid for the American tyre company Goodyear. The ensuing revelations of corruption within the takeover movement allowed politicians to reassert their authority, leading to his summons before Congress to explain his actions. He asserted his role as an active investor, distinct from a manager, focusing on influencing a company's operations rather than direct management. The perception of his actions was less egregious in America compared to Britain, perhaps because the established American order he challenged was seen as fundamentally corrupt, whereas British institutions he disrupted had existed for centuries, making the situation appear more lamentable.

Following this, Goldsmith withdrew from business, retreating to a remote estate he constructed in the Mexican jungle. This vast property was conceived as a self-sufficient community under his absolute control, featuring an immense domed palace and residences for his wife, former wives, and mistress. The estate was fortified and guarded by an army of ex-Special Air Service (SAS) soldiers, organised by his associate Colonel David Sterling.

During this period, his worldview became increasingly apocalyptic; he attributed global issues such as AIDS and Mad Cow Disease to an out-of-control global economy. Despite his fears of economic collapse, the global economy resiliently recovered.

Later Career and Legacy

In 1989, Goldsmith emerged from retirement to launch a final, significant bid for the British American Tobacco (BAT) Corporation. His intention was to dismantle the conglomerate and sell off its various components, an action he termed "liberating the company". However, the anonymous managers of influential pension funds, whose support was critical, refused to endorse his bid, having accumulated sufficient power to operate independently of such figures.

This defeat by a corporation that prioritised pension fund concerns over his own designs led to his public condemnation of politicians. He accused them of having unleashed market forces that, driven by the relentless pursuit of higher share prices, destabilised society and fostered unemployment and poverty. He conveniently overlooked that his own career for three decades had been built upon similar economic practices. He posited that the economy ought to serve humanity, not the inverse.

Goldsmith's personal life intersected with political spheres; his daughter Jemima Goldsmith married Imran Khan, who later became Prime Minister of Pakistan, though they subsequently separated.

His ideological evolution was influenced by experiencing the system's drawbacks firsthand, leading him to challenge established financial powers. He was characterised as a "rooted Cosmopolitan". His career is often cited as an example of how established powers are challenged and subsequently reassert themselves. He and other "corporate raiders" were attempting to destroy the "technostructure" but were ultimately defeated, with the technostructure reasserting itself.