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Examining Britain’s Status as a Vassal State to the US

Throughout history, the United States has been admired for its ideals of civic responsibility and individual improvement, ideas that gained prominence from the early puritanical traditions in the nation. Alexis de Tocqueville, in his analysis of American society nearly two centuries ago, praised these values extensively. Today, however, these same traits coexist with a more troubling reality: the US has transitioned from a leader in democracy to an imperial power increasingly indifferent to democratic principles, and more focused on economic domination over its allies.

The United Kingdom, in particular, exemplifies this shift towards becoming a subservient entity or “vassal state” under US influence. This change is meticulously articulated in Vassal State: How America Runs Britain by Angus Hanton. As Donald Trump’s presidency loomed with threats surrounding tariffs and NATO commitments, western capitals have felt the tremors. However, Hanton argues that this issue is not new; the prioritization of American interests over Britain’s has been a trend for decades. Acknowledging this precarious position requires more than diplomatic appointments; it necessitates a robust recognition of the situation and a fervent commitment to prioritize British interests.

According to Hanton, a staggering 25% of British gross domestic product relies on the operations of 1,256 American multinational corporations based in the UK. These entities dominate various sectors, from basic consumer goods like breakfast cereals and soft drinks to high-tech industries, including data management and finance. The list of American firms—ranging from Kellogg’s, Coca-Cola, and Ford, to Google and Goldman Sachs—is extensive, showcasing the extent of American corporate influence over the British economy.

This influence, however, is not without negative repercussions. Many British officials continue to herald the increasing American presence in the economy as beneficial, ignoring its exploitative aspects. Over the past two decades, British technological assets have been increasingly acquired by US companies, often resulting in the loss of strategic control over these resources. Notable examples include DeepMind’s acquisition by Google and the recent purchases of Darktrace and Abcam by American firms. Such trends have raised alarms about an impending drain on British intellectual capital, with Oxford University fearing a similar fate under new initiatives funded by US interests.

While some research and decision-making operations remain in Britain post-acquisition, Hanton notes a troubling pattern: corporate headquarters frequently relocate to the US, leading to significant setbacks for the UK’s position in areas like space technology. This reallocation not only strips Britain of vital intellectual property but also boosts the economic status of American cities at the expense of British prosperity.

Hermann Hauser, a prominent tech entrepreneur and co-founder of the British firm Arm, underscores the dangers posed by the loss of control over crucial technologies. He identifies essential criteria that any ownership transfer must meet to avoid creating a “vassal state” scenario: maintaining technological control, ensuring access for other nations, and securing guaranteed access for UK sellers. If these guarantees are absent, Britain risks becoming subordinate to powerful international tech giants.

The issue is compounded by the tax strategies employed by these US multinationals, which often exploit loopholes to minimize tax liabilities in the UK. Hanton highlights that the marginal tax contribution from these companies could be significantly higher, providing the UK with substantial additional revenue. However, proposals for even minimal corrective measures, such as a digital services tax, have faced robust opposition from the US government, leading to their withdrawal.

The current state of affairs presents a dispiriting picture for Britain. With a concerted and determined approach, the UK possesses the potential to emerge as the leading technological hub in Europe, boasting renowned universities and substantial financial investment. Yet, the existing trend seems to perpetuate American growth rather than fostering British innovation.

Hanton argues that to combat this decline, Britain must first curtail the massive sell-offs of its technological firms and differentiate between constructive and detrimental US investments. Additionally, a renewed focus on research and development is crucial for nurturing homegrown tech enterprises. For Britain to reclaim its position, it must also seek to strengthen ties with European partners.

Despite these recommendations, current political dynamics pose challenges. Figures such as Nigel Farage promote a narrative that aligns with American interests, while significant government positions are filled by leaders from US corporations. This relationship reveals a lack of momentum toward strengthening European ties.

Nevertheless, the government’s industrial strategy offers a glimpse of hope for reinvigoration. The shifting landscape with Trump’s presidency could serve as an impetus for reevaluation of the UK-US relationship. A call to action is necessary: ensuring that every government official engages with Hanton’s Vassal State may be vital in fostering awareness and advocacy for a more equitable relationship. Acknowledging our autonomy and striving for self-sufficiency is essential—after all, true partnership does not come at the expense of one’s own interests.

Source
www.theguardian.com