-Caveat Lector-

CITIZEN OF THE WORLD

Bad Company
Rupert Murdoch and his son genuflect before Chinese communists.

BY TUNKU VARADARAJAN
Monday, March 26, 2001 12:01 a.m. EST

Rupert Murdoch, a master practitioner of the corporate kowtow, has
instructed his son James perfectly in the craft of craven submission to the
communist regime in China. The young Murdoch--a college dropout, now
chairman and CEO of his father's Hong Kong-based Star TV company--gave an
impressive, almost balletic, performance of the genuflectory arts last week
in an address to the Milken Institute in Beverly Hills.

In words that astonished those gathered for the institute's annual business
conference, James Murdoch, all of 28 years, lit into the Falun Gong
religious resistance movement in China, describing it as a "dangerous" and
"apocalyptic cult," which "clearly does not have the success of China at
heart." He criticized the Western media and the Hong Kong press for their
negative coverage of human-rights issues in China, concluding with the
lament that "these destabilizing forces today are very, very dangerous for
the Chinese government." Young Mr. Murdoch, who described himself as
"apolitical," counseled Hong Kong's beleaguered democracy advocates to
resign themselves to the reality of life under an "absolutist" government.

The youthful CEO made no mention of the 150 Falun Gong members who have died
in Chinese police custody, nor of the approximately 10,000 who languish in
prison. Nor did he mention threats to Taiwan, slave labor, Tibet, arbitrary
executions or the removal for sale of organs from the bodies of those
executed. But let us not go there.

The Murdochs have obviously had considerable success in China with their
lapdog approach, and they must see no reason why this approach need change.
This is far from the first time a News Corp. executive has brown-nosed
Beijing since a gung-ho little speech, made by Rupert Murdoch in 1993. In
that speech Mr. Murdoch said satellite television was "an unambiguous threat
to totalitarian regimes everywhere." A month later the Chinese government
clamped down on the installation of satellite dishes, much to the chagrin of
Mr. Murdoch, who had purchased Star TV in the hope of capturing the
satellite market in China. The media magnate had never run up against real
totalitarians before, and was rather startled.

In a bid to undo the commercial damage caused by his speech, Mr. Murdoch
abased himself immediately, dropping the BBC's World Service Television from
the China beam of Star TV's satellite. This he did shamelessly, telling all
the world that he'd always believed that the folks at the BBC were pesky
liberals who were out to portray China in the worst possible light. No
wonder that Christopher Patten, the last British governor of Hong Kong,
called Mr. Murdoch's decision to pull the BBC from Star's menu "the most
seedy of betrayals." In an interview with Ken Auletta for a New Yorker
profile, Mr. Murdoch said: "The BBC was driving them"--the Chinese
regime--"nuts. It wasn't worth it."

Mr. Patten was later the victim of another seedy betrayal. His book, "East
and West," which was to be published by the Murdoch-owned HaperCollins, was
dumped after Mr. Murdoch decided it was too critical of Beijing. In a
pre-emptive smear, designed to ward off accusations that Mr. Murdoch was
prostrating himself before the Chinese communists, flacks at HarperCollins
put out the word that the Patten book was dropped for being "too boring."
This lie was nailed by the editor who commissioned the book, who lauded it
as "probably the best written and most compelling book I have read by a
politician since I came into publishing." Mr. Murdoch, let us remember,
suffered a huge moral defeat when he was compelled to apologize
"unreservedly" to Mr. Patten, as well as to pay him an undisclosed
out-of-court settlement.

There are other examples, some boorish, some insidious, of Mr. Murdoch's
willingness to sing Beijing's tune. He has described the Dalai Lama as "a
very political old monk shuffling around in Gucci shoes," and has spoken of
pre-1950 Tibet, before the illegal Chinese occupation, as being "a pretty
terrible old autocratic society out of the Middle Ages. . . . Maybe I'm
falling for propaganda, but it was an authoritarian medieval society without
any basic services." As Jonathan Mirsky, a peerless authority on China,
responded in the New Statesman of London, "Murdoch is not falling for
Chinese propaganda. He's repeating it word for word."
Mr. Mirsky has firsthand experience of how Murdoch-owned media have drawn in
their horns on the subject of China. In the last year of his five-year stint
as the East Asia editor of the London Times, Mr. Mirsky found that much of
his copy--invariably critical of the Beijing regime--failed to make it into
the paper. He felt compelled to resign. He had harsh things to say about Mr.
Murdoch then, and he has harsh things to say about him now. In an e-mail to
me over the weekend, in reaction to James Murdoch's remarks at the Milken
Institute he mused: "Nothing the Murdochs say about China surprises me. I
watched the influence at the [London] Times. There, in the last year,
reporting from Beijing has avoided all controversial subjects and all
analysis, unless they were of huge news importance like the Falun Gong
suicides."

He goes on: "The Times has avoided the implications of the Falun Gong
arrests, the defense of the Falun Gong to exist in Hong Kong by the Bishop
of Hong Kong and the United Nations representative there. The Times reported
the school explosion [in the town of Fanglin, in which 38 schoolchildren,
forced by their teachers to make firecrackers for sale, died] but not
Premier Zhu's apology. Whenever possible on days when other papers such as
The Wall Street Journal, Financial Times, New York Times, Washington Post
etc were analyzing events, the [London] Times printed old stories about
early discoveries about Christians--and others of that sort."

Mr. Mirsky concludes damningly: "At the school explosion ALL outside media
were excluded from the town except Phoenix TV, of which Murdoch owns a big
piece, which echoed the Beijing line and missed the Zhu apology."

What does one make of the Murdoch position on China? In my view, it is a
form of corporate prostitution, something quite different from ideological
blindness or agnosticism. After all, it's one thing to make anodyne remarks
about China's need for stability and the like, and quite another to weigh in
with specific censure against a religious movement, especially when that
movement lays claim to being the best-organized opposition to a repressive
and godless regime.
The younger Mr. Murdoch (clearly with his father's blessing) accuses China's
dissidents of not having the success of China at heart. It is touching to
see the Murdochs compensate for the unpatriotism of the Falun Gong, even
though they are guilty of confusing the interests of the small coterie of
people governing China with those of the Chinese people.

But the Murdoch method--demean yourself, for it's the pragmatic thing to
do--may, in fact, result in harm to News Corp.'s business interests. Willy
Lam, a Hong Kong-based China analyst, says the Murdochs should be more
careful, even as a cold-blooded business calculation: "Many businessmen seem
willing to do or say anything to get into the China market, including
through the backdoor. However, this is a tricky venture because Chinese
politics is going through unprecedented changes."

Mr. Lam continues: "Rules and regulations--and more importantly, the cadres
running the show--can change overnight. The millions of dollars spent, and
the flattering remarks and half-truths uttered, by Western businessmen to
curry the favor of a top cadre or his son could come to nought when the
wheel of political fortune in Beijing spins in an opposite direction."

>From a more philosophical perspective, the essence of James Murdoch's
position, like that of his father, is a contempt for the First Amendment
compact, or bargain: to wit, that news media are generally protected from
government interference on the understanding that they act as a check on
government. As a close Murdoch-watcher told me yesterday: "What the Murdochs
have specialized in is trading newspaper support to governments in return
for regulatory favors in nonprint media and business generally. While others
may do this from time to time, they do it all the time, and without
intermission."

American conservatives often regard Rupert Murdoch as an ally, but they are
quite wrong to do so. He has promoted social democratic governments in
Britain (Tony Blair) and Australia (Gough Whitlam, Bob Hawke and Paul
Keating) with as much alacrity as he has championed conservative politicians
like Margaret Thatcher. Now, and nakedly, Mr. Murdoch is an apologist for
the Chinese regime. The only qualification is that a government, or a
politician must be ready to go along with his business requirements.

But China is run by sophisticated tyrants. They see the use of people like
Messrs. Murdoch--p�re et fils--and will use them. They are not taken in by
the flattery, the unctuousness, the bowing of the corporate knee. They are
not unduly impressed by the Murdoch attempts to be more Catholic than the
pope when it comes to China. They know that he wants to make more money in
China and that he is willing to pay any price to do so.

They also know that the Murdochs become less useful to China by becoming
such obvious prostitutes. A little bit of discretion might have served James
Murdoch better at the Milken Institute, not just in terms of public dignity,
but eventually in terms of profit as well.

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