After Napoleon and Nazi Germany, Russia Lives with Paranoia of Conflict

A 1953 Russian propaganda poster showing Karl Marx, Friedrich Engels, Vladimir Lenin and Joseph Stalin sold for $2,629 at a July 2016 Heritage auction.

By Jim O’Neal

Joseph Stalin died on March 5, 1953, after ruling the Soviet Union for 25 years and leading the country in its transformation into a major world power. Born Iosif Dzhugashvili in 1878, while in his 30s he took the name “Stalin” meaning “Man of Steel.” After studying at a theological seminary, he read the works of revolutionary socialist Karl Marx, which inspired him to join the 1917 Bolshevik Revolution.

He was a protégé of Vladimir Lenin and after Lenin’s death, Stalin earned a reputation as one of the most ruthless and brutal dictators in world history (“Ideas are more powerful than guns,” he once said. “We don’t let our people have guns. Why should we let them have ideas?”).

After an extended Cold War with the West, the Soviet Union started to unravel when its eighth and final leader, Mikhail Gorbachev, assumed control in 1988. He seemed eager to “destroy the apparat” – weaken the Stalinist structure of the Communist Party and the Soviet state. Only then could he take the bold economic steps to revamp a bankrupt system that was crumbling fast.

The West hailed Gorbachev as the tsar liberator, a political magician, or as Time magazine editorialized in January 1990: “The Copernicus, Darwin and Freud of communism all wrapped into one.” A year earlier, he was Time’s “Man of the Decade.” But in early 1990, Lithuania demanded outright independence and a crowd of 200,000 in the capital of Vilnius demonstrated to get the entire Lithuanian territory returned. This was quickly followed by an Azerbaijani Popular Front rally that escalated into a civil war along the Armenian-Azerbaijani border, with both sides clamoring for independence.

In August 1991, Latvia and Estonia declared restoration of full independence, followed by the Ukraine on Dec. 1. On Dec. 25, Christmas Day, Gorbachev resigned and the following day the Supreme Soviet voted itself and the Soviet Union out of existence.

I first met current Russian President Vladimir Putin in Saint Petersburg in 1992 when he was head of the Committee for External Relations, a group in the mayor’s office responsible for promoting international relations and foreign investment. We started shipping Lays potato chips from Warsaw and soon built a Frito-Lay plant near Moscow. I totally underestimated him and thought he was just another thug, a feeling that was reinforced when we started Pizza Hut in Moscow.

According to Henry Kissinger, Putin has always blamed Gorbachev for the dissolution of the Soviet Union due to his policies of glasnost (openness) and perestroika (reform). “The greatest geopolitical tragedy of the 20th century.” It has always been a mystery to me why they gave up so much when the United States and others were willing to negotiate a softer landing. I haven’t read Putin’s autobiography, but I suspect the Russians will never be satisfied until there is an east-west buffer zone along the Ukrainian border.

After Napoleon and then Nazi Germany, there is an inherent paranoia that will only be exacerbated if Poland ever joins NATO. As philosopher George Santayana so wisely observed, “Those who cannot remember the past are condemned to repeat it.”

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Germany Represents Vivid Contrast Between Capitalist, Communist Systems

Robert Indiana painted his famous “LOVE” graphic on one side of a chunk of the Berlin Wall, and the word “WALL” on the other. This piece realized $65,725 at an October 2009 Heritage auction.

By Jim O’Neal

After the end of World War II, the Allies divided Germany into four zones, one each for the British, French, Soviets and Americans. Berlin lay inside the zone belonging to the Soviets and it also was divided into four sectors.

In 1949, the three Western powers merged their zones into a single entity: West Germany. This resulted in Berlin becoming an “island” in the heart of the East German communist state. Everyone in Berlin had an identity card, which allowed them to travel between East and West.

However, at midnight on Aug. 12, 1961, trains that traveled between East and West suddenly stopped. Passengers were forced out and told to walk home. The much bigger issue was that those living in the East were never allowed to travel to the West again (legally).

Then the East-West border was sealed off with armored cars, troop carriers and Soviet tanks. By the next year, concrete poles were erected and strung with barbed wire to further restrict travel. The metaphor of an “Iron Curtain” had become a reality.

By 1960, West Berlin had built 100,000 new apartments, raised luxury hotels, and constructed museums and art galleries. Industrial plants resumed production, creating thousands of new jobs.

In East Berlin, the economy of the German Democratic Republic (GDR) was stagnant and food and clothing scarce. Burned-out buildings were a stark reminder of the war. Three and a half million East Germans fled to the West, including 1 million through East Berlin, where there were no barriers (by treaty).

Then the GDR decided to build a wall!

Eventually, there was a concrete slab wall – 13 feet high, 87 miles long – completely encircling West Berlin. There were nine border crossing points, including “Checkpoint Charlie,” where spies were exchanged and East-West met with steely tensions.

In June 1985, Soviet leader Mikhail Gorbachev introduced perestroika (restructuring), expansion of trade, loosening of borders and limited freedom in other eastern bloc countries. Erich Honecker, head of the East German Socialist party, decried the reforms and promised the East Berlin wall would “last 50-100 years.”

In the autumn of 1989, thousands of demonstrators marched the streets of East Berlin, Honecker resigned, and on Nov. 8 the East Germans began allowing unrestricted travel. German Reunification was officially declared on Oct. 3, 1990, but the citizens of Berlin knew the real uniting began on Nov. 9, 1989, when the hated wall was breached forever.

Today, Germany represents the most vivid contrast between the capitalist and communist systems of government.

Jim O'NielIntelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is President and CEO of Frito-Lay International [retired] and earlier served as Chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].