Land of blue gold

In a region fraught with mutual distrust, anxieties over water supply are raising tensions between I

Almost anything the Dalai Lama does can trigger protests from Beijing. But his November 2009 visit to the disputed territory of Tawang, in the remote north-east Indian state of Arun­a­chal Pradesh, was felt with particular resonance in China's capital. Relations between India and China have been bad-tempered for months, with nationalists on both sides urging their respective governments to act tough.

The Dalai Lama's presence in Tawang - which China sees as southern Tibet, and which was the birthplace of his eccentric but talented predecessor, the sixth Dalai Lama - reminds Beijing that this was once Tibetan territory. The current Dalai Lama first came through these parts in 1959, as a young refugee fleeing Chinese rule. He never returned to Lhasa. India's open-hearted hospitality to exiled Tibet­ans has annoyed Beijing ever since.

Arunachal Pradesh, nearly 33,000 square miles of lightly populated mountain and valley, is claimed by both India and China. Its people, largely Buddhist and ethnically Monpa, speak a language similar to Tibetan and have suffered long years of neglect by both states: a condition they no doubt prefer to being fought over. During the Indo-Chinese border war of 1962, Chinese troops occupied Tawang for more than a month. Now, China is reasserting its claim. India, in turn, is claiming more than 14,700 square miles of Chinese-controlled Aksai Chin, near the Kashmir border. Talks between the two countries have been held repeatedly over the past four years without resolution.

Today, the line of actual control is heavily patrolled by both nations: on the Indian side by troops housed in ramshackle, temporary huts, and on the Chinese by soldiers in concrete barracks marching along well-paved roads. The contrast has not escaped the notice of local people and is taken as a signal of intent.

The Dalai Lama's presence in Arunachal Pradesh and the warm welcome he received from his devout Monpa following are symbolic of the antagonism. But Beijing also issued a strong protest when the Indian prime minister, Manmohan Singh, visited Arunachal Pradesh last October during an election campaign.

Historically, China is Pakistan's ally and many in India believe that China maintains pressure along the 2,500-mile border that the two countries share to keep Indian forces tied down. There have been alarming reports in the Indian press of repeated incursions across the line of control by Chinese troops. The Indian government plays these incidents down, pointing out that the boundary is not only disputed but also ill-defined, and that these incursions need not be taken as provocation.

Behind the immediate stresses, there is jockeying for regional and international influence by two large, utterly developing economies, built on radically different political philosophies and lying in a region with both live and frozen conflicts. After 1962, relations were hostile for decades: China and Pakistan became ­allies, and India turned for support to China's enemy, the USSR.

The end of the cold war brought new conflicts based on ethnicity and religion, in a region with four nuclear powers. Recently, India has been alarmed by China's increasing presence in Sri Lanka and Nepal, historically Indian spheres of influence. Now, there is another factor to complicate relations - the impact of climate change on states divided by political boundaries but united in their dependence on the rapidly melting Himalayan glaciers for water, essential both for security and life itself.

Just a few miles across the line that divides Arunachal Pradesh from Tibet, the powerful torrent of what becomes the Brahmaputra River enters one of the most dramatic passages of its 2,000-mile journey to the Bay of Bengal. Rising on the slopes of the holy mountain of Kailash in western Tibet, it flows east, along the northern flank of the Himalayas, then enters one of the deepest gorges in the world, executing a hairpin bend before roaring south into Arunachal Pradesh.

To the engineers dominating the upper echelons of Chinese politics, who have the twin concerns of meeting China's ever-growing demand for energy and its need for water, the great bend of the Brahmaputra seems to offer an irresistible temptation.

Dammed if they do

Damming the great bend of the Brahmaputra is an idea with a long pedigree. It was first suggested as one of a series of global "megaprojects" by the Japanese in the 1970s. More recently, the Chinese government has made occasional reference to the plan. Though it remains a drawing-board idea, India suspects it is moving up the Chinese list of priorities.

Anxieties about China's intentions were inflamed in 2005 by the publication of the provocatively titled Tibet's Water Will Save China. Though it was not an official statement of policy, it was written by a former officer of the Chinese People's Liberation Army, Li Ling, and its wide circulation gave it sufficient stature in Indian eyes to merit careful scrutiny. Ling's enthusiasm for diverting Tibet's rivers, including the Brahmaputra, to northern China to alleviate the acute water crisis there fitted enough of the facts to set alarm bells ringing.

In many ways, it is an implausible project, but China's engineering record and its demonstrated love of ambitious dam projects are troubling to its neighbours, so much so, that many in India's security establishment have said that if China were to dam the Brahmaputra, it would be tantamount to a declaration of war. Doubts about the feasibility of the project, including those expressed by the more sober Indian civil engineers, have not dampened wider fears. For India, concern about China's ambitions for the Himalayan region rivals - and is linked to - its long-standing enmity with Pakistan. In the heated atmosphere of mutual suspicion, water has taken its place as a critical national security concern.

At a meeting between the Indian and Chinese foreign ministers in Bangalore in October, India sought, and reportedly received, reassurances over the Brahmaputra. China, Indian officials were told, is a responsible country that would not harm the interests of its neighbours. But reports that remote sensing has detected the beginnings of construction on the river at Zangmu, Tibet, continue to circulate.

Both India and China suffer long-term anxieties over water, now rendered more acute by the rapid melting of the glaciers of the Himalayas (from which all of the great rivers of Asia derive to some degree). In a region fraught with mutual suspicion and reciprocal bad faith, there are no source-to-sink, trans-boundary water management agreements in place and, currently, little prospect of any being negotiated to manage the sharing of what threatens to be a rapidly diminishing supply.

The dispute works both ways. While India protests about Chinese infrastructure investments in Pakistan-controlled Kashmir, which include roads and a £7.8bn dam, India has its own plans to dam the Brahmaputra in Aruna­chal Pradesh, which China opposes. India has drawn up plans for 42 dams in Arunachal Pradesh, which have the potential to produce nearly 28,000 megawatts of hydropower, equivalent to the entire hydro capacity built by India in the past 60 years.

The dispute over the dams went international in June when China attempted to block an Asian Development Bank loan that included £37m for projects in Arunachal Pra­desh. The bank should not invest, China said, as the state was disputed territory. India responded by saying that it would finance the projects itself and stepped up its military presence in the region, deploying another 60,000 troops to the neighbouring state of Assam in addition to the 40,000 already stationed there. The shadow war games rapidly spread across the Himalayas, as China initiated military exercises. In September, India responded by stepping up the state of alert on the line of control in Kashmir.

The status of India's legal claim to Arunachal Pradesh is complicated and rests on the unresolved argument about the historic status of Tibet. It centres initially on an exchange of notes during the negotiation of the Simla Accord in 1914, under Henry McMahon, the then foreign secretary of British India. China, Tibet and Britain negotiated the accord, which resulted in the contentious McMahon Line that, for the British at least, defined the border between India and Tibet. The Tibetans conceded the territory that became Arunachal Pradesh to British India in return for a British promise, never honoured, to recognise Tibetan autonomy.

Chinese water torture

China rejected the Simla Accord and insists that Tibet did not have the status to sign any international agreement. If India were to rest its case on the accord, it would imply that Delhi recognised Tibet's authority to negotiate and conclude international agreements: a step that Beijing would take as severe provocation. The British, at the time, insisted on a distinction ­between China's acknowledged "suzerainty" over Tibet and full sovereignty, but the picture was further complicated last year when the Foreign Office abandoned the distinction, for current policy at least, as "anachronistic".

After Simla, neither side paid much attention to the disputed territory, and the Tawang monastery continued to pay taxes to Tibet until the 1950s. Shifting regional geopolitics have made this, and other Himalayan regions, the focus of potentially dangerous rivalries.

For the Tibetans in exile, these developments carry their own threat. Rising tension between their Indian hosts and Beijing is not good news. India has been a generous host to some 150,000 Tibetans who now live there, to the Dalai Lama and his government in exile, and to refugees who continue to arrive.

Yet there are voices in India which argue that, in the face of China's growing assertiveness, the cost to India of this spiritual and material solidarity is getting higher. It is not hard to find Indian analysts who believe that both India and China need a comprehensive agreement on the main points of contention between them - the border and the disputed territories, the fair management of declining water supplies, and the scientific and technical co-operation that such agreements would demand.

The question that many ask, but nobody has yet answered, is whether the price of a comprehensive agreement will be the special status and security that India's Tibetan exiles have enjoyed for more than half a century. Such a bargain would certainly please Beijing. For India, it is still a long way from official policy, but some argue it would be a price worth paying.

 

Isabel Hilton is editor of chinadialogue.net

 

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This article first appeared in the 18 January 2010 issue of the New Statesman, Palin Power

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The secret anti-capitalist history of McDonald’s

As a new film focuses on the real founder of McDonald’s, his grandson reveals the unlikely story behind his family’s long-lost restaurant.

One afternoon in about the year 1988, an 11-year-old boy was eating at McDonald’s with his family in the city of Manchester, New Hampshire. During the meal, he noticed a plaque on the wall bearing a man’s face and declaring him the founder of McDonald’s. These plaques were prevalent in McDonald’s restaurants across the US at the time. The face – gleaming with pride – belonged to Ray Kroc, a businessman and former travelling salesman long hailed as the creator of the fast food franchise.

Flickr/Phillip Pessar

But this wasn’t the man the young boy munching on fries expected to see. That man was in the restaurant alongside him. “I looked at my grandfather and said, ‘But I thought you were the founder?’” he recalls. “And that’s when, in the late Eighties, early Nineties, my grandfather went back on the [McDonald’s] Corporation to set the history straight.”

Jason McDonald French, now a 40-year-old registered nurse with four children, is the grandson of Dick McDonald – the real founder of McDonald’s. When he turned to his grandfather as a confused child all those years ago, he spurred him on to correct decades of misinformation about the mysterious McDonald’s history. A story now being brought to mainstream attention by a new film, The Founder.


Jason McDonald French

“They [McDonald’s Corporation] seemed to forget where the name actually did come from,” says McDonald French, speaking on the phone from his home just outside Springfield, Massachusetts.

His grandfather Dick was one half of the McDonald brothers, an entrepreneurial duo of restaurateurs who started out with a standard drive-in hotdog stand in California, 1937.

Dick's father, an Irish immigrant, worked in a shoe factory in New Hampshire. He and his brother made their success from scratch. They founded a unique burger restaurant in San Bernardino, around 50 miles east of where they had been flogging hotdogs. It would become the first McDonald’s restaurant.

Most takeout restaurants back then were drive-ins, where you would park, order food from your car, and wait for a “carhop” server to bring you your meal on a plate, with cutlery. The McDonald brothers noticed that this was a slow, disorganised process with pointless costly overheads.

So they invented fast food.

***

In 1948, they built what came to be known as the “speedy system” for a fast food kitchen from scratch. Dick was the inventor out of the two brothers - as well as the bespoke kitchen design, he came up with both the iconic giant yellow “M” and its nickname, the “Golden Arches”.

“My grandfather was an innovator, a man ahead of his time,” McDonald French tells me. “For someone who was [only] high school-educated to come up with the ideas and have the foresight to see where the food service business was going, is pretty remarkable.”


The McDonald brothers with a milkshake machine.

McDonald French is still amazed at his grandfather’s contraptions. “He was inventing machines to do this automated system, just off-the-cuff,” he recalls. “They were using heat lamps to keep food warm beforehand, before anyone had ever thought of such a thing. They customised their grills to whip the grease away to cook the burgers more efficiently. It was six-feet-long, which was just unheard of.”

Dick even custom-made ketchup and mustard dispensers – like metal fireplace bellows – to speed up the process of garnishing each burger. The brothers’ system, which also cut out waiting staff and the cost of buying and washing crockery and cutlery, brought customers hamburgers from grill to counter in 30 seconds.


The McDonald brothers as depicted in The Founder. Photo: The Founder

McDonald French recounts a story of the McDonald brothers working late into the night, drafting and redrafting a blueprint for the perfect speedy kitchen in chalk on their tennis court for hours. By 3am, when they finally had it all mapped out, they went to bed – deciding to put it all to paper the next day. The dry, desert climate of San Bernardino meant it hadn’t rained in months.

 “And, of course, it rained that night in San Bernardino – washed it all away. And they had to redo it all over again,” chuckles McDonald French.

In another hiccup when starting out, a swarm of flies attracted by the light descended on an evening event they put on to drum up interest in their restaurant, driving customers away.


An original McDonald's restaurant, as depicted in The Founder. Photo: The Founder

***

These turned out to be the least of their setbacks. As depicted in painful detail in John Lee Hancock’s film, Ray Kroc – then a milkshake machine salesman – took interest in their restaurant after they purchased six of his “multi-mixers”. It was then that the three men drew up a fateful contract. This signed Kroc as the franchising agent for McDonald’s, who was tasked with rolling out other McDonald’s restaurants (the McDonalds already had a handful of restaurants in their franchise). 

Kroc soon became frustrated at having little influence. He was bound by the McDonalds’ inflexibility and stubborn standards (they wouldn’t allow him to cut costs by purchasing powdered milkshake, for example). The film also suggests he was fed up with the lack of money he was making from the deal. In the end, he wriggled his way around the contract by setting up the property company “McDonald’s Corporation” and buying up the land on which the franchises were built.


Ray Kroc, as depicted in The Founder. Photo: The Founder

Kroc ended up buying McDonald’s in 1961, for $2.7m. He gave the brothers $1m each and agreeing to an annual royalty of half a per cent, which the McDonald family says they never received.

“My father told us about the handshake deal [for a stake in the company] and how Kroc had gone back on his word. That was very upsetting to my grandfather, and he never publicly spoke about it,” McDonald French says. “It’s probably billions of dollars. But if my grandfather was never upset about it enough to go after the Corporation, why would we?”

They lost the rights to their own name, and had to rebrand their original restaurant “The Big M”. It was soon put out of business by a McDonald’s that sprang up close by.


An original McDonald restaurant in Arizona. Photo: Flickr/George

Soon after that meal when the 11-year-old Jason saw Kroc smiling down from the plaque for the first time, he learned the true story of what had happened to his grandfather. “It’s upsetting to hear that your family member was kind of duped,” he says. “But my grandfather always had a great respect for the McDonald’s Corporation as a whole. He never badmouthed the Corporation publicly, because he just wasn’t that type of man.”

Today, McDonalds' corporate website acknowledges the McDonalds brothers as the founders of the original restaurant, and credits Kroc with expanding the franchise. The McDonald’s Corporation was not involved with the making of The Founder, which outlines this story. I have contacted it for a response to this story, but it does not wish to comment.

***

Dick McDonald’s principles jar with the modern connotations of McDonald’s – now a garish symbol of global capitalism. The film shows Dick’s attention to the quality of the food, and commitment to ethics. In one scene, he refuses a lucrative deal to advertise Coca Cola in stores. “It’s a concept that goes beyond our core beliefs,” he rants. “It’s distasteful . . . crass commercialism.”

Kroc, enraged, curses going into business with “a beatnik”.


Photo: The Founder

Dick’s grandson agrees that McDonald’s has strayed from his family’s values. He talks of his grandfather’s generosity and desire to share his wealth – the McDonald brothers gave their restaurant to its employees, and when Dick returned to New Hampshire after the sale, he used some of the money to buy new Cadillacs with air conditioning for his old friends back home.

“[McDonald’s] is definitely a symbol of capitalism, and it definitely sometimes has a negative connotation in society,” McDonald French says. “If it was still under what my grandfather had started, I imagine it would be more like In'N'Out Burger [a fast food chain in the US known for its ethical standards] is now, where they pay their employees very well, where they stick to the simple menu and the quality.”

He adds: “I don’t think it would’ve ever blossomed into this, doing salads and everything else. It would’ve stayed simple, had quality products that were great all the time.

“I believe that he [my grandfather] wasn’t too unhappy that he wasn’t involved with it anymore.”


The McDonald’s Museum, Ray Kroc’s first franchised restaurant in the chain. Photo: Wikimedia Commons

Despite his history, Dick still took his children and grandchildren to eat at McDonald’s together – “all the time” – as does Jason McDonald French with his own children now. He’s a cheeseburger enthusiast, while his seven-year-old youngest child loves the chicken nuggets. But there was always a supersize elephant in the room.

“My grandfather never really spoke of Ray Kroc,” he says. “That was always kind of a touchy subject. It wasn’t until years later that my father told us about how Kroc was not a very nice man. And it was the only one time I ever remember my grandfather talking about Kroc, when he said: ‘Boy, that guy really got me.’”

The Founder is in UK cinemas from today.

Anoosh Chakelian is senior writer at the New Statesman.