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Basil Zaharoff in 1928
|Born||Zacharias Basileios Zacharoff
October 6, 1849
Muğla, Ottoman Empire
|Died||November 27, 1936
Monte Carlo, Monaco
|Other names||Basileios Zacharias|
|Occupation||Arms dealer, industrialist and philanthropist|
Zaharoff's success was forged through his cunning, often aggressive and sharp business tactics. These included the sale of arms to opposing sides in conflicts, sometimes delivering fake or faulty machinery, and reportedly sabotaging trade demonstrations.
Basileios Zacharias was the only son and eldest of four children of a Greek merchant, born in the Turkish town of Muğla. The Russian-sounding surname Zaharoff was adopted by his family when they lived in Russia as exiles following the anti-Greek "Easter pogroms" of 1821. The family returned to Turkey in the 1840s and, by 1855, had returned to Istanbul living in the Greek neighbourhood of Tatavla.
Young Basileios' first job was as a tourist guide in the Galata. It is thought he then became an arsonist with the Istanbul firefighters: 19th-century firemen in Istanbul being less effective at extinguishing fires than the recovery or salvage of treasures from the rich for payment of a hefty commission.
Zaharoff was summoned to court in London over irregular commercial activities involving the export of goods from Istanbul to London. The London Greeks from Constantinople preferred such matters involving members of their community to be settled outside the English courts, and he was discharged on condition that he paid restitution to the claimant in the sum of £100, and remained within the court's jurisdiction. He immediately left for Athens, where the 24-year-old Zaharoff was befriended by a political journalist, Etienne Skouloudis. The eloquent Zaharoff succeeded in convincing Skouloudis of the rightness of his London court case.
By a stroke of good fortune, Skouloudis was a friend of a Swedish captain who was about to move on from his role as a representative of arms manufacturer Thorsten Nordenfelt to a more important position. Skouloudis, as a rising politician, used his influence to recommend Zaharoff to fill the vacancy. Zaharoff was hired on October 14, 1877, so beginning a spectacular career. At that time, the political and military instability in the Balkan States, Turkey and Russia provided an excellent opportunity for the talented young salesman. Each state was ready to spend to cope with the perceived aggressive intentions of its neighbours, even after the Treaty of Berlin of 1878.
Zaharoff sold munitions to many nations, including Great Britain, Germany, the Russian and Ottoman Empires, Greece, Spain, Japan and the United States. Despite his reputation for corruption, he was instrumental in marketing military equipment, including various famous weapons such as the Maxim gun (one of the first fully automatic machine guns) and the first working submarine.
Maxim's machine gun
The next person to enter Zaharoff's story was Hiram Maxim. Maxim's automatic machine gun was a significant improvement over the hand-cranked models in use prior to then. Maxim’s gun was certainly better than anything that Nordenfelt had on the shelf at the time. Zaharoff is believed to have had a hand in the events surrounding Maxim's attempts to demonstrate his invention between 1886 and 1888. In the first, Maxim's and Nordenfelt's machine guns were to be demonstrated at La Spezia, Italy before a distinguished audience which included the Duke of Genoa. Maxim's representatives did not show up; a person unknown had waylaid them with a tour of La Spezia's nocturnal establishments leaving them unfit for purpose the next morning.
Round 2 took place at Vienna, where the exhibitors were instructed to modify their weapons to comply with Austrian Infantry-standard size cartridges. After shooting a few hundred rounds Maxim's apparati became erratic before stopping altogether. When Maxim took one weapon apart to see what had happened, he discovered that they had been sabotaged, but it was too late to repair. A third demonstration also took place in Vienna, and here the gun worked perfectly. But again an unknown person went through the gathering of senior officers convincing them that the workmanship required to produce such a marvellous weapon could only be done by hand, one at a time, and that without the means for mass production Maxim could never produce machine guns in sufficient quantities to satisfy the needs of a modern army. Nordenfelt and Zaharoff had won. Maxim, who knew he had a good product, successfully sought a merger with Nordenfelt, engaging Zaharoff as their principal salesman on a huge commission.
Corrupt business tactics
From 1886 to 1889, at the same time that Zaharoff got the machine gun Maxim, he managed to appropriate Isaac Peral's submarine; although these facts are less well known. Zaharoff and Nordenfelt tried, at this time, to develop a submarine for their own business purposes.
One of the most notorious sales by Zaharoff was that of the Nordenfelt I, a faulty steam-driven submarine model based on a design by the English inventor and clergyman Rev George Garrett, which U. S. Navy intelligence characterized as capable of "dangerous and eccentric movements". Thorsten Nordenfelt had already demonstrated his vessel at an international gathering of the military elite, and whilst the major powers would have none of it, smaller nations attracted by the prestige were a different matter.
It was thus that, with a promise of generous payment terms, Zaharoff sold the first model to the Greeks. He then convinced the Turks that the Greek submarine posed a threat selling them two. After that, he persuaded the Russians that there was now a new and significant threat on the Black Sea, and they bought another two.
None of these submarines ever saw action. The mechanics, driven by steam propulsion, were completely inadequate for underwater navigation, and failed demonstratively when undergoing sea trials by the respective Navies. Besides the underlying problems of the faulty propulsion system, they were also chronically unstable. One of the Turkish Navy's submarines sank, capsizing during a torpedo firing test. The vessel reared in a vertical position, from which it sunk by the stern.
At this time Spanish inventor Isaac Peral designed and built the first submarine capable of navigating under water with good control and with the ability to launch torpedoes both, submerged and on the surface. This was the first proper submarine, solving the problems of propulsion, stability and armament all at once. Peral's submarine was driven by electric propulsion, and had a periscope, target practice apparatus, compensating compass needle, gyroscope, sliding electric torpedo tube launcher and servomotor (to maintain the stability and the trim of the ship in all circumstances).
Zaharoff found out within no time about this young Spanish Naval officer's invention. Previously in shipbuilding, he had already seen the plans and memorandum reports sent by Peral to the Spanish Navy's HQ at the Defence Ministry.
Later on and during Isaac Peral's visit to London, he tried meeting with him unsuccessfully, with the help of one of Peral's Spanish Navy fellow officers. Peral refused twice, but after several attempts, he had a meeting with Nordenfelt, the company owner, who offered him a deal to purchase the patent of the stability servomotor. Isaac Peral rejected both offers but signed his sentence in that same instant, without knowing it.
Zaharoff then got to work with his own machiavellian. The Spanish inventor, as Maxim, suffered four sabotages during the tests: the first of them, in the previous test, in presence of the Head of the Spanish State, but, Peral, more cautious than the North American inventor, proved successful in all of them.
Despite this, Zaharoff used underhand methods, which came to light later, and was able to cause a controversy between the inventor and his own government leading to the Spanish Government's disapproval of this submarine invention, although it would have been a formidable weapon in the conflict with the United States, several years after.
Zaharoff traveled to Spain several times between 1886 and 1890 with three objectives: boycott Peral's submarine, sell weapons to the Spanish Army and acquire a Spanish munitions factory. He was successful in all three objectives, mainly because his initiation of an amorous relationship with Pilar de Muguiro y Beruete opened many doors for him.
Pilar's father, influential banker Fermín Muguiro Count of Muguiro, was a close friend of the King and leader of Spanish Conservative Party. She was a personal friend and niece of Segismundo Moret, a leading Spanish progressive thinker and the Liberal Party Leader's right-hand man. Unhappily married to King Alfonso XII's cousin, the Spanish Grandee, Francisco de Borbón Duke of Marchena, she had unrestricted access to the Royal Palaces. During one trip, the presence of Zaharoff was spotted at the shipyard where the Spanish submarine was being built, but the Spanish authorities "covered up" the matter.
The acquisition of one of the best Spanish armament companies, Euskalduna, located in north Spain and renamed “Placencia de las Armas Co. Ltd” was in large part thanks to his love affair (later attributing his professional success to his sexual prowess) and through establishing a powerful network among Spanish politicians, journalists and military commanders, who served his business interests well. This influential group of people took his side against the development of Isaac Peral's submarine, and the Spanish Government, despite the astounding success in sea trials, finally pulled the rug from the project.
After “Placencia de Armas Co. Ltd” swindled the Spanish Government by selling useless arms during the 1898 War (also handing Maxim important and "sensitive" information which reached his government during the conflict), the Sociedad Española de Construcciones Navales in Spain, a branch of Vickers were awarded, by the Spanish Government, exclusive naval construction rights for the Spanish Navy.
In the aftermath of this scandal, accusations of bribery and manipulation flew in the direction of this dangerous trafficker of weapons. A Spanish Navy law officer denounced the Spanish Government for two alleged crimes of "prevarication". The Spanish Government acted expeditiously and especially cruelly against any navy officers who went public with their discontent. The Central Chief of Staff and the Boss of the Armada Juridic Service were fired and hundreds of officers were imprisoned and lost their jobs.
Zaharoff's power and influence in Spain lasted until his death in 1936, the year in which the Spanish Civil War began.
Also, the 1934 United States Senate Nye Committee Memorandum shows that Zaharoff was paid considerable sums for transactions made between foreign companies and the Spanish Government (for example, he got paid between a 5 and 7% commission for the price of American Submarines sold to Spain, throughout all these years).
Although very little could be proved, Zaharoff was viewed as a master of bribery and corruption, but the few incidents that did become public, such as the large bribes received by Japanese Admiral Fuji, indicated that a lot more was going on behind the scenes. In 1890, the Maxim-Nordenfelt association broke up and Zaharoff chose to go with Maxim. Out of his commissions, Zaharoff bought shares in Maxim’s company until he was in a position to tell Maxim that he was no longer an employee but an equal shareholder.
By 1897, the Maxim company had become important enough that it received a buyout offer from Vickers, one of the then giants of the armaments industry. This involved substantial settlements in both cash and shares for Maxim and Zaharoff. From then until 1911, while Maxim's business enthusiasm waned, Zaharoff's enthusiasm grew and he expanded his portfolio of Vickers shares. After Maxim's retirement, Zaharoff was appointed to Vickers' board of directors.
The 1900s (decade) was a time for many European armies to rebuild and modernize. Germany and the United Kingdom both sought improved naval capability and Vickers with Zaharoff were willing and able to service both sides. After its disastrous defeat by Japan in 1905, the Russian Navy also needed new equipment, but Russia was handcuffed by a wave of protectionism that required domestic industry for the rebuilding. Zaharoff’s response was to build a huge Russian arms production complex at Tsaritsyn as a subsidiary of Vickers.
The opening of Russian Tsarist archives after World War I led to some insights into the tactics of the arms industry. One 1907 letter, in particular, was written from the Paul von Gontard Factory (a secretly-controlled Vickers company in Germany) to a Vickers-associate in Paris recommending that press releases be sent out to the French press suggesting that the French improve their military to meet the threat posed by German rearmament. These French newspaper articles were recorded by the Reichstag and instigated a vote to increase military spending, all of which worked to the advantage of Zaharoff.
World War I
In the years immediately preceding World War I Zaharoff’s fortunes grew in other areas to support his arms business. By purchasing the L'Union Parisienne des Banques (Union Parisienne Bank), which was traditionally associated with heavy industry, he was better able to control his financing arrangements. By gaining control of Excelsior, a daily newspaper, he could guarantee favourable editorials for the arms industry. To gain public recognition and acclaim he founded a retirement home for ex-French Sailors, while a Chair in Aerodynamics at the University of Paris led to further honours.
In April 1914, Australian newspapers  published reports from London dated 25 April (exactly 12 months before the Gallipoli landings) that M. Zaharoff had donated ₤20,000 "in order to enable France to be worthily represented at the forthcoming Olympic Games in Berlin" in 1916. The 1916 Olympic Games were subsequently cancelled because of the war. Zaharoff's donation represented a substantial contribution. On May 10 the French Government announced it would donate ₤6,000 to its Olympic team and would distribute ₤12,000 of Zaharoff's donation among its Olympic teams and the remaining ₤8,000 to "the furtherance of the Olympic cause".
In March 1914, Vickers announced a new dawn of prosperity. During the course of the war Vickers would produce 4 ships of the line, 3 cruisers, 53 submarines, 3 auxiliary vessels, 62 light vessels, 2,328 cannon, 8,000,000 tonnes of steel ordnance, 90,000 mines, 22,000 torpedoes, 5,500 airplanes and 100,000 machine guns. By 1915, Zaharoff had close ties with both David Lloyd George and Aristide Briand. It is reported that, on the occasion of one visit with Briand, Zaharoff surruptiously left an envelope on Aristide Briand’s desk; the envelope contained a million francs for war widows.
One of Zaharoff’s tasks during the Great War was to ensure that Greece joined the war on the Allied side, helping to reinforce the eastern front. On the surface, this seemed impossible since King Constantine was a brother-in-law of the Kaiser. Setting up a press agency in Greece to spread news favourable to the Allies, led, within a few months, to Constantine’s deposal in favour of Prime Minister Eleftherios Venizelos.
By the end of World War I, The Times estimated that Zaharoff had laid out £50 million in the Allied cause.
In the years that followed, Zaharoff involved himself in the affairs of the lesser powers, which the Big Four involved in remaking Europe could happily ignore. In particular, he set out to ensure that Greece and Venizelos received a proper share from the spoils from the badly weakened Turkey. In 1920, he donated half a billion gold francs to the Greek State for the Greek cause (Megali Idea). Zaharoff convinced Venizelos to attack but, after some impressive initial success, the Greek Army was eventually driven back. In the elections that followed, Constantine’s loyalists managed to force Venizelos to flee, but Zaharoff stayed around and persuaded the same King that he had to attack Turkey again, but with Mustafa Kemal now in charge of Turkey, this venture was bound to fail. Zaharoff’s war adventures were not well received by the press in Paris and London.
Zaharoff was also involved in two more significant financial ventures in October 1920, becoming involved in the incorporation of a company that was a predecessor to oil giant, British Petroleum. He foresaw that there was a great future in the oil business.
His association with Prince Louis II of Monaco led to his purchase of the debt-ridden Société des Bains de Mer which ran Monte Carlo’s famous casino and principal source of revenue for the principality. He succeeded in returning the casino to profit again. At the same time, Zaharoff had prevailed upon Clemenceau to ensure that the Treaty of Versailles included protection of Monaco’s rights as established in 1641. Louis had noted their gradual erosion over the subsequent three centuries.
Zaharoff was a friend of both the actress Sarah Bernhardt and her Greek husband Jacques Damala (who was once described as the handsomest man in Europe). When Damala's mistress (who injected him with heroin between acts of plays he was appearing in) had an illegitimate daughter by him in 1889, she left the baby in a basket (with a note) on Sarah Bernhardt's doorstep. The baby (who was baptised Teresa) was given to the care of Zaharoff, who found a family to raise her in eastern Thrace (at Adrianopole). In 1920 she posed for Picasso, and she had affairs with the American novelist Ernest Hemingway and Gabriele d'Annunzio (an early Italian Fascist). The story of her life is told in the historical novel Terese by Fredy Germanos (1997).
Zaharoff was fascinated by aviation, and gave money and other support to pioneers in Great Britain, France and Russia. He encouraged Hiram Maxim in his attempt to build a flying machine, and later claimed that he and Maxim were the first men to be lifted off the earth, when Maxim tested his first "flying machine" at Bexley in 1894.
In September 1924 Zaharoff, almost 75 years old, remarried. (He married an English woman much earlier in life—it is believed as of mid-February 1911, primarily to obtain a British passport). He met María del Pilar Antonia Angela Patrocinio Simona de Muguiro y Beruete some three decades earlier on business travel in Spain, just after she married her husband (the unbalanced Prince Francisco de Bourbon, Duke de Villafranca de los Caballeros). Divorcing her husband (despite his documented insanity) was almost impossible given his close relationship with the Spanish Royal Family, so the Duchess and Zaharoff were made to wait until the Duke passed away. Some eighteen months after their marriage, Lady Zaharoff died of an infection.
Afterwards, Zaharoff began a liquidation of his business assets and undertook writing his memoirs. When the memoirs were completed they were stolen by a valet who had, perhaps, hoped to make his fortune by revealing embarrassing secrets about the greats of Europe. The police recovered the memoirs and returned them. On payment of the reward to the policemen who returned the manuscripts to Zaharoff, apparently he consigned them to the fireplace at his home.
Zaharoff was a major financial benefactor to various institutions:
- Chair of Aviation at the University of Paris (cost: FF 700,000)
- Chair of Aviation at Saint Petersburg State University
- Chair of Aviation at Imperial College, London
- Chair of French Literature at Oxford University
- Chair of English Literature at the University of Paris
- Donation of ₤20,000 to refurbish Paris Zoo's monkey house (initially treated as a hoax by Zoo staff who left the cheque in a drawer for two months)
- Financial contribution to studying aviation problems in England (cost: ₤125,000)
- The construction of a War Hospital at Biarritz (FF 200,000) 
- Donation towards building the Greek Embassy in Paris
- Help for the earthquake victims at Corinth, Greece
- Establishing the Institut Pasteur à Athènes in 1919
- Grand Cross, Legion of Honour
- Honorary Knight Grand Cross, Order of the Bath
- Honorary Knight Grand Cross, Order of the British Empire
- In The Adventures of Tintin comic The Broken Ear, Zaharoff is parodied as weapons trader Basil Bazarov, who sells to both parties of a single conflict that he helps provoke.
- Zaharoff was the model for the title character in the 1938 novel No Innocent Abroad (published in USA as Forever Ulysses) by Constantine P Rodocanachi, translated from the Greek into English by Sir Patrick Leigh-Fermor
- Zaharoff was portrayed by Leo McKern (of Rumpole of the Bailey fame) in the 1983 ITV series Reilly, Ace of Spies.
- Zaharoff was depicted in the "Lanny Budd" series by reformer Upton Sinclair.
- Zaharoff's adventures in the arms trade (particularly the machine gun sales) resemble those of the main character, Hector Sarek, in Gerald Kersh's short story "Comrade Death". Sarek also sells arms to two (fictitious) South American countries while inciting their leaders against each other.
- Rayt Marius in Knight Templar and The Misfortunes of Mr. Teal, featuring Leslie Charteris' the Saint, appears to be based on Zaharoff, with the last referring specifically to the theft of his explosive memoirs.
- Zaharoff's Machiavellian ethic as an arms dealer was a cultural influence on Church of Satan founder Anton LaVey. LaVey included Zaharoff on the dedication page to The Satanic Bible.
- In his novel A Coffin for Dimitrios, Eric Ambler is claimed to have patterned Dimitrios on Sir Basil Zaharoff, although Ambler denied having first-hand knowledge of him.
- Zaharoff appears in Thomas Pynchon novel Against the Day.
- In Ezra Pound's "Canto XVIII" and "Canto XXXVIII," Zaharoff makes numerous appearances under the name "Metevsky."
- Zaharoff was one of the inspirations for the unscrupulous arms manufacturer Andrew Undershaft in George Bernard Shaw's play Major Barbara.
- Zaharoff is a character in the novel The King's Commisar by Duncan Kyle.
- 'Zaroff' is an unscrupulous arms dealer in the Tom Mix serial The Miracle Rider (1935).
- Some aspects of Zaharoff's life were used as the basis for elements of Citizen Kane.
- In the manga Alpine Rose, the character Matilda Toulonchamp claims to be a descendant of Zaharoff. In-story, Mathilda's father Michel Toulonchamp succeeded Zaharoff himself as the leader of his arms and financing empire.
- Zaharoff, Basil (1849–1936) (accessed November 29, 2010). Richard Davenport-Hines, Oxford Dictionary of National Biography, Online ed., May 2009.
- "Olympic Games - A Munificent Gift". Sydney Morning Herald. 27 April 1914. Retrieved 20 April 2014.
- "Olympic Games - Particulars of French Donation". Sydney Morning Herald. 20 June 1914. Retrieved 20 April 2014.
- Hans Hallmann: Neugriechenlands Geschichte 1820-1948. H. Bouvier & Co., Bonn, 1949, page 132
- Obituary: Sir Basil Zaharoff An International Financier The Times 28 November 1936
- "GIFT TREATED AS A JOKE". The Advocate. 18 December 1920. Retrieved 20 April 2014.
- Otto Lehmann-Russbüldt: War for profits, 1930, S. 55
- Richard Lewinsohn: 'The man behind the scenes: the career of Sir Basil Zaharoff
- Flowers, Stephen E. "Satanic Bible Dedications", in Aquino, Michael A. The Church of Satan, pg 492.
- "The Mask of Dimitrios". Tcm.com. Retrieved 2014-06-02.
- "Eric Ambler". Kirjasto.sci.fi. 1998-10-22. Retrieved 2014-06-02.
- Davenport, Guy. Cities on Hills: A Study of I-XXX of Ezra Pound's Cantos, p. 202
- Carringer, Robert L. (1996). The Making of Citizen Kane. University of California Press. pp. 17–18. ISBN 0-520-20567-7.
- Bogdanovich, Peter (2004). "Interview with Orson Welles". In Naremore, James. Orson Welles's Citizen Kane: a Casebook. Oxford University Press. pp. 48–49. ISBN 0-19-515891-1.
- Robert Neumann, Zaharoff the Armaments King (1935, revised 1938) London: George Allen & Unwin
- Dimitri Kitsikis, Propagande et pressions en politique internationale. La Grèce et ses revendications à la Conférence de la Paix 1919-1920. (1963) Paris: Presses Universitaires de France. (Chapter on Sir Basil Zaharoff)
- Anthony Allfrey, Man of Arms: the Life and Legend of Sir Basil Zaharoff. (1989) London: Weidenfeld & Nicolson, ISBN 0-297-79532-5
- Donald McCormick, Peddler of Death: the Life and Times of Sir Basil Zaharoff. (1965) New York: Holt, Rinehart and Winston, ISBN 1-112-53688-4
- John T. Flynn extract from Men of Wealth The Merchant of Death: Basil Zaharoff pp 337–372
- Dr. Richard Lewinsohn The Man Behind the Scenes: The Career of Sir Basil Zaharoff, 'The Mystery Man of Europe' London, Gollancz (1929)
- Dominique Venner, Le plus grand marchand d'armes de l'Histoire: Sir Basil Zaharoff. Historia N° 368 - juillet 1977 (French periodical).
- Javier Sanmateo, El submarino Peral La gran conjura (2008) Cartagena: Divum & Mare, ISBN 978-84-936502-0-9
- Bohumír Polách, Muž v pozadí (Basil Zacharov) - (Man in the background - Basil Zaharoff). (1948) Prague: A. Neubert. Drama by Czech author.
- Paul De Mont : De Internationale der Wapenfabrikanten (1934).
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