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1002   24 May 2004  

Rowe Evans Rampant

No relation, you understand.  But a legal action in Sumatra which demonstrates the role of law, and of the Courts, in sustaining the very structure of modern  international capitalism. 

The three pillars of capitalist success (private property, contract law, and the manipulation of artificial personality) are all on parade, in the Rowe Evans case in Sumatra.  The case is poised to go to the Supreme Court of Appeal.

This is what happened.  Rowe Evans is an investment firm plying its capitalist trade throughout Asia.  And one year ago it bought an 80% controlling interest in a palm-oil plantation, owned by a company controlled by one Rahmat Shah.  A major investment programme was started, by Rowe Evans, to expand the operation.  But, one year later, the contract has been set aside by a Sumatran Court - simply because one of the Rowe Evans managers did not have a valid work permit at the time!

'Tis a simple tale of capitalist folk.  Just examine it.

Company law, the law of artificial personality, allows Rowe Evans easily to buy "80%" of the enterprise - that's because of the wheeze of allowing artificial personalities to be subdivided into shares, with the shares traded as privately-owned "investment chits", or "shares".  Without artificial personality and its infinite manipulability, such transactions would be impossible.  For plain Mr Evans and plain Mr Shah, the deal would have been infinitely more difficult to arrange...

Property law combines with company law, to permit the Rowe Evans company (artificial person) to tell the world that "it owns" four-fifths of the residual value of the palm-oil plantation.  Rowe Evans' confidence in its ownership induced the launch of a $6.5m mill investment programme, last year.  Certainty of ownership is the cornerstone of all capitalism: investment is profoundly hazardous, if you cannot be certain of collecting your winnings...

Contract law - finally, fundamental to all capitalist transactions is the enforceability of contract law - a deal is a deal.  For a major contract to be "set aside" (i.e. declared invalid, of no binding effect) for the infringement (even if true) of a minor personal technicality, is absurd.  The Sumatran Court has offended one of the most fundamental tenets of international capitalism.  If this verdict stands, Sumatra will sink very low, as a home for foreign capital.  Courts must uphold clear business deals, as actually concluded - that is crucial to operation of a flourishing capitalist system, at every level.

The key capitalist card is the right to play the trading game on a "virtual" basis.  You and I, as natural persons, hardly figure in the legal network.  The capitalist world is an arcane network of artificial persons, "companies" and "corporations".  And power accrues to those who have the skills to manipulate them, in cats cradles of increasing complexity...

  • That's capitalism, folks...!

Has your life taken you into the impenetrable thickets
of the capitalist world?  Drop me a line

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1003  3 June 2004  

"Go Nuclear!"
says Cobber Mike

writing from Australia, where the uranium comes from...

Dear Roger 

I agree with you. The adoption of nuclear power for electricity generation is inevitable. It overcomes the greenhouse problems.  It is dangerous, but it nevertheless represents the best solution. 

The principal opponents of nuclear power are the oil companies. They are stuck with billions and billions of dollars in facilities and unused hydrocarbons. They will not abandon these for any reason on earth.  The greenhouse crisis - the increasing problems of greenhouse gases, the instability of oil supply, the ferocious politics associated with oil supply - none of these will mean a fig to the owners of the oil industry. 

The solution requires that politicians simultaneously fight BP and The Greens. We need a Churchill, to wage such a war successfully, a Churchill – backed up by another American like Roosevelt… 

The only way forward is a public campaign by the Government to alert the people, followed by a referendum to move the UK to full nuclear power generation over a 30-year period. The oil companies would finance a counter campaign (and probably suborn a desperate Tory Party) to defeat such a referendum. The media would display all their well-known seriousness - and add to public confusion.  The example of the French in successfully raising nuclear power electricity to about 35% of the total is gratifying.  But didn't the Germans recently close a nuclear power station? Getting a sensible energy policy out of Europe will be fraught with difficulties. Europe seems fated to slowly destroy herself. 

As for the danger question, it will require that the countries which supply the raw uranium will also need to be willing to take back (at a price) the spent fuel. Australia is a major supplier of uranium and the only country that you could possibly trust with the spent fuel. However, we are as dopey as any German Green on this issue.   Therefore - stalemate. 

All told, I think that this issue will only be settled by the onset of such serious climatic/economic crises that the general public sweeps the Greens and the oil companies aside in a panic over jobs and heating costs.  Fortunately nuclear power stations can be built relatively quickly.

Yours sincerely, Mike Davis

P S Three Cheers for D-Day, and the current 60th Anniversary celebrations! And eternal thanks to the boys who died for our freedoms, which we now so  squander – in such a cavalier manner.

What do you think?  Have your say - drop me a line

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