Milner Group

(taken from The Anglo-American Establishment)

The Milner Group, a powerful secret society, significantly influenced British Imperial and foreign policy for over fifty years, from its inception in 1891 until approximately 1939. This organisation, known by various names throughout its history, operated through a deliberate policy of secrecy, its members often preferring the reality of power over public recognition.

Formation and Evolution 

The genesis of the Milner Group can be traced back to Oxford in the early 1870s, rooted in a group of political intellectuals formed around Arnold Toynbee and Alfred Milner. The formal establishment of the secret society occurred in February 1891 in London, organised by Cecil Rhodes, William T. Stead, and Reginald Baliol Brett. Rhodes served as its initial leader, with Stead, Brett, and Alfred Milner forming the "Junta," an inner circle responsible for exercising real power. Milner became Rhodes's chosen successor in leadership by 1901.

Over time, the organisation adopted several names reflecting its evolving phases and activities:

• From 1891 to 1902, it was known as the secret society of Cecil Rhodes or the dream of Cecil Rhodes.
• From 1901 to 1910, it was referred to as Milner's Kindergarten, and from 1910 to 1920, as the Round Table Group. These latter terms specifically referred to the "Association of Helpers," which constituted the Outer Circle of the society, while the "Society of the Elect" (the inner core) continued to exist and recruit.

After 1920, it was referred to by various names such as the Times crowd, the Rhodes crowd, the Chatham House crowd, the All Souls group, and the Cliveden set, though these terms were considered inadequate as they focused on only a part of the society or its activities. The broader organisation is best referred to as the Milner Group after 1901.

Structure and Membership 

The society was structured with an inner circle, the Society of the Elect, which held the true power, and an Outer Circle, the Association of Helpers. Membership was not always formal and varied in degree. Recruitment heavily relied on intellectual ability and social connections, drawing primarily from well-to-do, upper-class families, often with titles. Oxford University played a crucial role in recruitment, particularly the colleges of Balliol, New College, and All Souls, which served as chief recruiting agencies.

Individuals were admitted to All Souls, tested in public life, writing, or teaching for their abilities and loyalty to the group's ideals, and then gradually admitted to key "theifs" such as the Royal Institute of International Affairs, The Times, or positions in the Foreign or Colonial Offices. The inner circle remained largely composed of those who had been in South Africa before 1909.

Key figures and their roles included:

• Cecil Rhodes: Founder, immensely wealthy empire builder, and initial leader.
• Alfred Milner: Rhodes's chosen successor, central figure after 1902, instrumental in establishing the Rhodes Trust and its links with Oxford. Milner's leadership cemented the group's ideology and methods.
• Philip Kerr (Lord Lothian) and Lionel Curtis: Among the most important members after Milner, playing significant roles in the Round Table Group and international affairs. Curtis was the real founder of the Royal Institute of International Affairs.
• Robert Henry Brand (Lord Brand): Leader after Kerr's death in 1940, economic expert of the group, and key in financial policy.
• Vincount Astor: A later, but important, addition, whose money was extensively utilised by the group.
• Jeffrey Dawson: Editor of The Times for many years, a key figure in the group's media control.
• Sir Samuel Hoare (Lord Templewood) and Sir John Simon: Prominent in government, instrumental in shaping foreign policy, often acting in concert with the group's agenda.
• Lord Halifax: Moved to the group's centre after 1920, playing a decisive role in foreign policy, particularly appeasement.
• Leopold Amery: A close associate of Milner, active political lieutenant, and significant figure in Commonwealth affairs.
• Reginald Coupland: A key member of the inner circle, influential in imperial policy, especially concerning India and Palestine.
• Arnold J. Toynbee: Director of the research and intelligence department of the Foreign Office during World War II, a significant intellectual figure linked to the group.

Core Ideology and Goals 

The Milner Group was driven by a powerful ideology, derived from Toynbee and Balliol, with two primary convictions:

• Extension and Integration of the Empire: The British Empire was seen as a moral idea, a vehicle for unfolding freedom and the rule of law, essential for human civilisation. The unity of the Empire was to be preserved and extended, ultimately leading to a "Commonwealth of Nations."
• Social Welfare and Public Service: A strong sense of duty and obligation to serve the state was paramount, coupled with a commitment to social service, particularly educational work among the working classes.

The group displayed disdain for unrestricted party politics and the parliamentary system, instead favouring efficient administration by experts.

Their vision of governance reflected a managerial revolution, (Managerialism) where a group of unseen managers would effectively implement policies for the public good. Despite criticisms of democracy in its existing forms, members of the inner circle were not racially intolerant and advocated for the education and uplift of all groups within the Empire, believing that cultural outlook and educational background, rather than race or birth, justified temporary exclusions from political participation.

Mechanisms of Influence 

The Milner Group employed a sophisticated array of methods to exert its influence:

• Propaganda and Media Control:
  • The Round Table journal, founded in 1910, served as the group's primary mouthpiece, propagating its views, particularly on imperial federation and foreign policy. Articles were typically anonymous to allow contributors greater independence and freedom, and to conceal the limited number of writers and their political prominence. It aimed to influence "those who write for the average reader."
  • The Times newspaper was controlled indirectly from 1912 and directly from 1922, except for a three-year interval (1919-1922). Its influence derived from its close relationship with the Foreign Office, acting as a mutual reinforcement mechanism with other group-controlled entities.
  • Influence extended to other periodicals such as the Quarterly Review, 19th Century and After, The Economist, and The Spectator, and it also had editorial influence over the Home University Library series.
• Educational Dominance:
  • The group wielded considerable power over Oxford University, especially All Souls, New College, and Balliol colleges, effectively dominating their intellectual life in law, history, and public affairs.
  • It controlled the Rhodes Trust and the Beit Trust, ensuring their funds and academic appointments served the group's objectives. George Parkin was instrumental in setting up the Rhodes Scholar selection methods, ensuring the scholars were chosen to further the group's aims.
• Political and Administrative Penetration:
  • Members consistently held a significant proportion of cabinet posts and key administrative positions in government departments, notably the Foreign Office, Colonial Office, and Ministry of Information.
  • The group was involved in secret intrigues, such as influencing King George V's choice of Stanley Baldwin as Prime Minister in 1923 and playing a secret role in the formation of Ramsey MacDonald's national government in 1931.
• International Organisations:
  • The Royal Institute of International Affairs (Chatham House) was founded and consistently controlled by the Milner Group, serving as its widest public aspect to influence a broader audience.
  • The group exerted significant influence within the League of Nations, contributing to its formation and management, yet ultimately seeking to limit its power as a collective security instrument.
  • It controlled and initiated unofficial conferences on British Commonwealth relations and had strong connections with the Institute of Pacific Relations and the Council on Foreign Relations in the United States.

Impact on Major Historical Events

Boer War (1899-1902):

The group plotted the Jameson Raid of 1895 and was responsible for causing the Boer War. Figures like Flora Shaw, a journalist for The Times and a confidante of Rhodes and the Colonial Office, played a role in propagating information and facilitating secret communications leading up to the raid.

World War I and Peace Settlement:

The group gained power during the war, dominating Lloyd George's War Administration (1917-1919) and the British delegation to the Paris Peace Conference (1919) (Treaty of Versailles).

While initially part of drafting a severe treaty against Germany, they soon began a campaign to revise it, arguing it was too harsh and violated pre-armistice agreements. They sought to rebuild Germany against perceived threats from Bolshevism and French militarism, advocating for leniency and economic assistance.

League of Nations:

Although they contributed significantly to drafting the League's Covenant, their intention was for it to be a centre for international cooperation in non-political matters and consultation in political crises, not an instrument of collective security with military or economic sanctions. They actively sabotaged efforts to strengthen its coercive power, viewing such attempts as leading to a "world government" which they opposed.

Appeasement Policy (1920-1940):

The Milner Group consistently pursued a policy of appeasement towards Germany, aiming to build up Germany as a bulwark against France and Russia. This involved lightening reparations burdens, preventing France from enforcing treaty terms, and advocating for German arms equality.

They sought to liquidate countries between Germany and Russia—Austria, Czechoslovakia, and Poland—by peaceful means to avoid war, while maintaining British freedom of action and aligning with the dominions and the United States. This policy was supported until the German occupation of Bohemia and Moravia in March 1939 forced a reconsideration.

Creation of the Commonwealth:

The transformation of the British Empire into the Commonwealth of Nations was largely a result of their activities. While their ultimate goal was Imperial Federation, they pursued "Imperial Cooperation and Parallelism" as an interim step, propagating the term "Commonwealth of Nations" and its special meaning of a community based on freedom and the rule of law.

Indian Policy:

The group devoted considerable attention to India, shaping the Government of India Act of 1919 and advocating for self-government and communal representation, which ultimately contributed to partition in 1947. They aimed to transfer responsibility to Indians, believing it would moderate extremist demands.

Palestine Policy:

The Balfour Declaration of 1917, favouring a national home for Jews in Palestine, was drafted by Lord Milner, who was its chief supporter in the war cabinet.

In The Anglo-American Establishment, Quigley suggests that the group's general attitude was neither pro-Arab nor pro-Zionist, but their policies, motivated by idealistic intentions regarding minority rights and cultural assimilation, were criticised for alienating both sides and encouraging extremism. They supported the Peel Commission's recommendation for partition of Palestine in 1937.

Irish Affairs:

The group played a decisive role in the Irish Settlement of 1920-1923, advocating for home rule and eventual independence from Britain, contrary to the Cecil Bloc's opposition. They believed that granting freedom would prevent Ireland from aiding Britain's enemies and ensure its continued connection through "invisible ties."

Economic Philosophy 

The group's economic ideas evolved significantly. Initially, many members, notably Brand, adhered to orthodox late 19th-century international banking principles: sound money, balanced budgets, and the international gold standard.

However, Milner held a more unorthodox view, advocating for national capitalism, government spending, and tariffs to isolate the British economy and promote social welfare.

His insights into the technical and material nature of economic problems, contrasting with artificial financial limitations, proved accurate. After the banking crisis of 1931 and the abandonment of the gold standard, the group largely embraced Milner's vision of government encouragement and self-regulated monopoly capitalism. They were also involved in controlling drug networks and black markets during wartime.

Post-War Decline and Legacy 

After the Labour government came to power in 1945, the Milner Group experienced an eclipse. The older members retired, and newer recruits lacked the same experience, intellectual conviction, or social contacts.

The outcomes of their policies—the dissolution of the British Empire, the division of India, the race wars in South Africa, and their contribution to the outbreak of the Second World War—were disastrous, despite the group's stated good intentions and idealistic motivations.

Their policies, often based on utopian ideals, were ultimately found to be self-inconsistent and unrealistic for the complex realities of the world.