Tag: empire

  • ‘Blood in the water’: where next for the Murdoch empire, and what about the succession?

    ‘Blood in the water’: where next for the Murdoch empire, and what about the succession?

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    “Rupert has shown a rare sign of weakness,” says one longtime Murdoch watcher. “There is something of the smell of blood in the water.”

    In the space of two weeks the 92-year-old’s media empire has taken a reputational hammering on both sides of the Atlantic, putting a renewed focus on the future shape of the global conglomerate’s businesses – and who will run them.

    Theories abound about what may happen when control of the empire moves to Rupert’s children – the Murdoch family trust owns 39% of the voting shares in News Corp and 42% in Fox Corporation – with Lachlan, James, Elisabeth and Prue holding equal power.

    Scenarios not out of place in HBO’s Murdoch family-esque hit drama Succession, which Lachlan reportedly believes his younger brother James leaks plot lines to, include James, Elisabeth and Prue eventually coming together to oust their sibling.

    Earlier this week, the Duke of Sussex, the “spare” royal on a mission to bring tabloid newspapers to account over phone hacking, presented a string of headline-grabbing allegations in a case against the Sun that threatens to put Murdoch favourite Rebekah Brooks back in the spotlight.

    Succession
    Lachlan Murdoch reportedly believes his younger brother James leaks plot lines to the HBO drama Succession. Photograph: HBO

    Since being found not guilty of phone hacking at a criminal trial almost a decade ago, Brooks, the former Sun editor who runs Murdoch’s UK business including the Times, TalkTV and Virgin Radio, has focused on rehabilitating her corporate image with a future eye on a global role in New York.

    “Rebekah is going to be spending a lot more time in New York,” says one source. “She has always been a significant adviser, very much a right-hand person, but every time there is a gap between wives she spends more time with Murdoch.”

    Earlier this month, Rupert called off his engagement to his would-be fifth wife, Ann Lesley Smith, just two weeks after proposing, having finalised his divorce from Jerry Hall less than a year ago.

    The 54-year-old Brooks started her career in the family publishing empire as a 20-year-old secretary at the News of the World, where she would work under Piers Morgan.

    From humble beginnings – her father was an odd-job man and she attended a comprehensive school near Warrington, between Liverpool and Manchester – Brooks would rise to become editor of the News of the World in the early noughties and the first female editor of the Sun from 2003 to 2009.

    Brooks is one of the most powerful women in media, having served two stints as chief executive of Murdoch’s British media empire. She was forced to resign in 2011 after the Milly Dowler phone-hacking scandal that resulted in the closure of the News of the World.

    Charlie and Rebekah Brooks
    Rebekah Brooks, pictured with her husband Charlie, is one of the most powerful women in media. Photograph: David M Benett/Dave Benett/Getty Images for Pragnell

    During her time outside the Murdoch empire she received more than £16m in compensation before returning as boss in 2015, a year after being cleared of any wrongdoing.

    Brooks is part of the “Chipping Norton set”, which includes former UK prime minister David Cameron and the former Top Gear presenter Jeremy Clarkson, who introduced her to the racehorse trainer Charlie Brooks, whom she married in 2009 while editor of the Sun. The couple had a daughter via a surrogate mother in 2012.

    She had divorced the former EastEnders actor Ross Kemp, with whom she had a fiery relationship, in 2002.

    Brooks’s ambition to rise further is unlikely to be thwarted by the prospect of executives including Murdoch being called to testify – more than $1.5bn (£1.2bn) has been spent keeping cases from going to trial to date. “They will make a big payout to Harry, that’s what they do,” says the source. “What difference is [Harry] going to make, ultimately?”

    It is the fallout from Murdoch’s almost $800m 11th-hour settlement to stop a public trial over Fox News’s role broadcasting false claims of election rigging during the 2020 US presidential election that has more bearing on dynastic succession and executive musical chairs.

    “Before this they only ever settled sexual harassment and phone-hacking lawsuits; this is a moment of weakness I’ve never seen,” says one former senior executive. “It is the right strategy, but it is still a stain on the company and there has been something of a cultural shift against Fox in the US, temporarily at least.”

    Fox, which is run by Murdoch and his eldest son Lachlan, is facing a shareholder legal action stating that bosses breached their governance duties by knowingly following a pro-Trump conspiracy line on-air.

    Fox Networks logo
    Fox is run by Rupert Murdoch and his eldest son Lachlan. Photograph: Andrew Harrer/Getty Images

    The company is also facing a $2.7bn defamation suit by Smartmatic, a voting machine company, although sources say that it is seeing off the much more dangerous Dominion case that matters most. If Murdoch chooses to settle out of court with Smartmatic – Fox has said it is ready to go to trial – a figure of less than $500m has been rumoured.

    Despite the embarrassing disclosures and reputational damage wrought by the Dominion case, which resulted in the shock firing of Fox News’s biggest star, Tucker Carlson, days after the settlement was reached, the fallout is viewed by some as cementing Lachlan’s position as Murdoch’s ultimate successor.

    “Shareholders may say there is one pickle after another,” says Claire Enders, a co-founder of Enders Analysis. “They are not through this crisis yet, there will be a further elements of a clean-up operation, but they have been here before. The fact is there is always a constant movement of pieces in Rupert’s conglomerate.”

    From this point on, Fox News, which was already swinging toward the new and less controversial Republican star Ron DeSantis, will have to show more careful editorial oversight of the content of its broadcast output – as will more extreme rivals such as Newsmax and One America News Network (OANN).

    Tucker Carlson on Fox News
    Tucker Carlson was fired from Fox News less than a week after it settled a lawsuit over the network’s 2020 election reporting. Photograph: Richard Drew/AP

    Seeing off lawsuits and a future with less chance of legal action at the immensely profitable Fox, which makes about $3bn in underlying profits each year, could ultimately strengthen Murdoch’s case to prove the merits of his desire to recombine his TV and newspaper empires to sceptical investors.

    After recently scrapping the planned merger of Fox and News Corp, which Murdoch was forced to split a decade ago after the phone-hacking scandal, a multibillion-dollar side deal to sell a lucrative property listings business in the US to a rival also fell through.

    The move into property listings in the US and Australia, championed and engineered by Lachlan, has proved a masterstroke, accounting for up to a third of News Corp’s profits. Despite the US deal falling through, the real estate business is expected to be the focus of future corporate activity when macroeconomic conditions improve.

    The performance of Murdoch’s newspaper operations is much more hit and miss. The Wall Street Journal remains a juggernaut with 3.78 million subscribers – 84% of whom are digital-only – with analysts ascribing a standalone value of $10bn to its parent company Dow Jones. Murdoch acquired the business for $5.6bn in 2007.

    In the UK, the Times and Sunday Times have also grasped the digital future transforming a £70m loss in 2009 into a £73m profit last year. However, the Sun continues to struggle, doubling pre-tax losses to £127m last year, mostly due to charges relating to phone hacking. Stripping this out, the Sun made £15m.

    Ever the arch-pragmatist, Murdoch has shown that he is willing to make tough decisions to ensure the long-term survival of his empire.

    In 2018, he sold 21st Century Fox, which ultimately also meant his crown jewel Sky, to Disney and Comcast respectively, after failing to engineer a takeover of Time Warner to give his entertainment business the global scale it needed to compete in the streaming era.

    However, a recent expose by Vanity Fair revealed a string of worrisome health problems in recent years – including breaking his back, seizures, two bouts of pneumonia, atrial fibrillation and a torn achilles tendon – and has once again raised questions over whether it is time to hand the reins to the next generation.

    “I don’t think the fallout in the US hurts Lachlan; he is still the heir apparent,” says the former executive. “Not least because James isn’t interested in the company with Fox part of it and Elisabeth and Prue certainly don’t want to do it.”

    Rupert and Lachlan Murdoch
    Lachlan Murdoch (right) is seen by many analysts as Rupert’s heir apparent. Photograph: Bloomberg/Getty Images

    The 51-year-old Lachlan, who still hankers after a life in Australia despite buying the most expensive home in Los Angeles, also has a good relationship with Brooks.

    News Corporation, which as well as the UK papers owns titles including the New York Post, the Australian, and the crown jewel Wall Street Journal, is run by Robert Thomson.

    The 62-year-old Thomson, who shares a birthday with Rupert, has been his right-hand man for decades.

    “Lachlan is ambivalent to Robert, which is not to say he hasn’t done a good job,” says the former executive. “But Lachlan gets ever more powerful, every day this is more Lachlan’s company. And that would mean that at some point it is Rebekah’s job.”

    But with the newly single nonagenarian once again energetically throwing himself into work, the time for plotting and scheming may still be some way off.

    “I felt Rupert was very impressive in terms of what we saw in documents released relating to the Dominion case,” says Enders. “His answers were sharp and he showed perfect recall, and didn’t get himself in a perjury situation. With Joe Biden running for president 80 is the new 60, and for Rupert 92 is the new 80. He doesn’t look as if he is going anywhere soon.”

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    #Blood #water #Murdoch #empire #succession
    ( With inputs from : www.theguardian.com )

  • Was there a secret deal between royal family and Murdoch’s media empire?

    Was there a secret deal between royal family and Murdoch’s media empire?

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    Among the many extraordinary claims in Prince Harry’s legal case against News UK, one stands out: the allegation that there was a secret deal between Rupert Murdoch’s newspaper group and the monarchy to stop members of the royal family suing over phone hacking.

    The prince suggests that this arrangement was known about by his late grandmother Queen Elizabeth II, Prince William and leading courtiers. Harry claims that under the terms of this supposed deal, royal victims of phone hacking would receive a settlement and an apology when all the other phone-hacking cases had concluded.

    The objective, he claims, was to ensure members of the royal family were kept out of the witness box and ensure there was no need for a public falling out with a powerful newspaper group that could write negative stories about the royal family.

    Harry says the existence of this deal is one of the reasons he waited until 2019 to file legal proceedings against News Group Newspapers, the parent company of the Sun and the News of the World.

    The problem is that Rupert Murdoch’s media company has denied such a deal exists and claims Harry simply missed a legal deadline to file his paperwork. It wants a judge to throw out the case before it goes to trial next year on the basis that the royal should have suspected he was potentially a victim at a much earlier time.

    Harry has not provided any evidence of the alleged agreement, although if such a sensitive arrangement was made then it is possible that it was verbal rather than on paper.

    Even Harry is unsure who told him about the supposed deal. According to legal filings, the royal was informed of the deal’s existence alongside his brother at some point in 2012. He says this was by the royal family’s solicitor Gerrard Tyrrell, of Harbottle & Lewis, or someone else from within the institution of the monarchy.

    According to his legal filings, the deal between the royal household and “senior executives” at Murdoch’s company would ensure members of the royal family could only bring phone-hacking claims at the conclusion of ongoing phone-hacking cases, and “at that stage the claims would be admitted or settled with an apology”.

    Harry’s barrister, David Sherborne, said in written submissions that “discussions and authorisation” from the royal family over the agreement included the late queen and two of her private secretaries, as well as private secretaries for William and Harry.

    Harry says he received the support of the queen and her aides when he attempted to push back on the supposed deal in 2017, only to struggle and be repeatedly frustrated by courtiers close to his father, Charles.

    Harry claims Murdoch’s company tried to avoid keeping to its part of the supposed deal and issuing a public apology. “I suspect [Murdoch’s newspaper group] was banking on the public becoming bored of phone hacking after so many years and therefore, when it came to the end of the litigation whenever that would be, any apologies that it was forced to give wouldn’t really be newsworthy,” he said in his statement.

    However, Anthony Hudson KC, for News Group Newspapers, told the court on Tuesday that there was no evidence of a secret deal and that Harry was asserting the existence of the supposed arrangement as a last-minute legal tactic.

    “This delay is matched by the extreme vagueness with which the circumstances of the secret agreement are described in the Duke of Sussex’s evidence,” he said.

    The barrister pointed out that Harry did not say in his evidence who had made the agreement, whom it applied to, when it was made, or a date when it was meant to expire. A list of lawyers who had worked in high-profile jobs at Murdoch’s company all insisted they had never heard of such a deal.

    Yet the court did hear that at least one member of the royal family had been able to strike a secret deal with Murdoch’s company.

    Harry revealed that Prince William had settled his own, not previously publicised phone-hacking claim against Murdoch’s company “for a huge sum of money” in 2020.

    Harry asks how his brother’s deal was reached “without any of the public being told”. He suggests William reached a “favourable deal in return for him going ‘quietly’, so to speak”.

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    #secret #deal #royal #family #Murdochs #media #empire
    ( With inputs from : www.theguardian.com )

  • Control of the House goes through the Empire State

    Control of the House goes through the Empire State

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    That includes the seats held by a diverse group of GOP freshmen across the state, from more well-known faces like Rep. Marc Molinaro in the Hudson Valley, who previously ran for governor against Andrew Cuomo, to first-time-winner-turned-ultra-beleaguered George Santos in Long Island.

    “Glass half empty, it’s disappointing,” Ryan said of Democrats’ performance in November. Speaking from his new district office along the Hudson River in Newburgh during the April recess, he said Democrats need a course correction. “I think many of [the New York seats] were and should have been winnable races, especially given the stakes.”

    The path to victory for either party is full of pitfalls, according to interviews with more than 15 local and state level party leaders, elected officials and consultants. New York Democrats are rebuilding at every level — and plagued by state party infighting. Republicans fear being lumped in with the more extreme members of their caucus and abortion politics may destroy the gains they’ve made in the Empire State. And Democrats are worried that their own party will cause them to face plant once more.

    “We don’t have a functioning state party,” said Michael Blake, a former Democratic assemblyman from the Bronx and vice chair for the Democratic National Committee. “I’ve seen what real parties do, real parties across the country have consistent elections, they have full time staff and compensated chairs because they make that a job. It’s not a hobby.”

    For both parties, the journey to victory in New York will be long, tough and expensive.

    “There’s no shortcut. There’s no easy button,” Ryan said.

    ‘If you listen to the critics, we did absolutely nothing.’

    Democrats not only need to protect Ryan’s seat, but also win back the ones Republicans flipped last cycle in the buoy of a presidential year. The House Majority PAC, the main Democratic super PAC in House campaigns, has already announced a $45 million investment into New York and is already hiring a war room.

    The Congressional Leadership Fund, the Republican side super PAC, has not yet released its budget for New York.

    “They’re going to have to come up with the money to fund these races because they’ve all gotten enormously expensive,” said Brent Bogardus, the Greene County Republican Party Chair.

    Local Democratic leaders are ready for the flood of resources likely to come to their districts, but are worried about execution. Local party chairs fear waste without proper coordination and that redder and more rural areas won’t see the benefits of New York’s new battleground status.

    “There’s going to be money coming from all sides. Well, why don’t we spend it efficiently? Why don’t we spend it effectively?” said Jennifer Colamonico, the Putnam County Democratic Party chair, and part of NY-17, where Rep. Mike Lawler (R-N.Y.) won by fewer than 2,000 votes. “I think that’s the most important thing the state party can do, especially going into next year because there’s a huge opportunity to waste money to be honest.”

    There was a coordinated effort last cycle between Gov. Kathy Hochul’s campaign and down ballot candidates but Democrats are already stressing the need to have stronger coordination across the ticket to share resources and free up candidates to focus on being in the district.

    “I joke it’s a fly-over county; it’s north of Westchester and everybody kind of zips right through it,” Colamonico said. “But I think Sean Maloney learned the hard way, you can’t write off any part of your district. Like the old Howard Dean 50-state strategy, we need a 62-county strategy in New York.” (Maloney, who was also the DCCC chair, lost his newly redrawn district to Lawler by 1.6 percent of the vote.)

    Much of the blame for the losses New York Democrats suffered has been heaped on state party chair Jay Jacobs, who survived calls for resignation after last cycle.

    “If you listen to the critics, we did absolutely nothing. Nothing,” Jacobs said in an interview with POLITICO. “Even though they knew about it and read about it in the papers.”

    A coalition of Hudson Valley Democratic county party chairs sent an open letter to the state party leaders to submit a list of proposals they’d like the state party to adopt to grow its operation and impact in the 2024 election cycle. The letter called for the state party executive committee to meet more frequently, provide an internal communication structure for organizing at all levels of Democratic Party membership and to develop an action plan for the next cycle among other suggestions.

    The chairs represent New York’s 17th, 18th and 19th congressional districts, represented today by Reps. Molinaro and Lawler and Ryan, all of whom are on party target lists.

    Ulster County Democratic Party chair Kelleigh McKenzie said some of their organizing has been hamstrung by lack of investment in basic infrastructure. Her county office uses Slack to communicate within the office, but she can’t afford a version of the software that keeps messages for more than 90 days or even for everyone on her team to use it — let alone a version that would include multiple county offices.

    “Some of us, like the Hudson Valley Chairs Coalition, we’re doing this ourselves. But we would like to see the state party put the infrastructure in place,” McKenzie said.

    Jacobs said he finds the Hudson Valley Chairs coalition to be helpful collaborators and agrees with the need to build a more robust party infrastructure. His action plan and the first stages of implementation are expected to be launched this summer. He dismisses the criticism directed his way as a part of the job.

    “We had all of this criticism but I, for one, felt it was unfair,” Jacobs said, referencing a December report that analyzed the Midterm results. “The problem was not what was alleged that the state Democratic Party failed to bring out the Democratic vote. A number of critics said we were absent, we did nothing. That was not the truth.”

    Jacobs has already released a post-election report analyzing voter turnout and is soliciting feedback from Democratic county leaders on a statewide strategy to prepare for next year, but stressed that changes are not in direct response to last year’s results (even if other party leaders see them this way).

    Colamonico, who is a member of the Hudson Valley Chairs coalition, is a convert. At first, she said she was in favor of Jacobs resigning in the aftermath of last year’s election, but is now cautiously optimistic after seeing how Jacobs is taking the post-election response.

    ‘We were driving the message.’

    As Republicans set about defending their seats next cycle, they (and many Democrats) credit gubernatorial candidate Lee Zeldin for his help at the top of the ticket.

    Zeldin had disciplined messaging focused on crime, policing and bail reform, and many of his campaign events featured down ballot candidates. He lost to Hochul by six points, but helped House candidates sweep the four seats in his native Long Island.

    “People starting their day or ending their day catching up on the news or what they might have missed, the top story would often be whatever it was our campaign was talking about in that press conference we hosted that day,” said Zeldin in an interview with POLITICO. “We were driving the message” in close races.

    Republicans hope they can replicate the success of last cycle by once more focusing on crime and cost of living. But with Trump and abortion already setting up as chief issues in 2024, they face strong headwinds.

    “There’s no doubt that New York State is a pro-choice state, every poll that I read indicates as such, but we’re really going to be focusing on public safety, and providing more economic opportunity and lowering the cost of living for folks,” said Benji Federman, Broome County Republican Party chair. “That message seems to resonate really well with Broome County voters and we’re going to continue talking about those things.”

    When asked about how Republican frontlines will respond to abortion in their campaigns, National Republican Congressional Committee Chair Richard Hudson (R-N.C.) said to POLITICO, “I’m not going to answer hypotheticals about all the different races.”

    For Hudson Valley Republicans, what they think might differentiate them even in a presidential election year is something not always emphasized by Republicans elsewhere: bipartisanship.

    “It’s very important,” Federman said. He highlighted that his county’s representative, Molinaro, is a member of the Problem Solvers caucus. “He’s crossed party lines when he feels like it’s in the best interest of the community. And the bottom line is he doesn’t get caught up in the politics of the day.”

    Ryan, defending a seat next cycle, also sees the value in bipartisanship. He spent the afternoon touring an affordable housing and cultural center with Orange County Executive Steve Neuhaus, a Republican. The two developed a close relationship during the pandemic when Ryan was also a county executive in neighboring Ulster County.

    Neuhaus described his relationship with Ryan akin to President Ronald Reagan and Speaker Tip O’Neill.

    But when asked about supporting Ryan’s reelection bid, Neuhaus demurred. “Last year, I didn’t get involved,” he said. “And as probably the top Republican in the area, for me, not getting involved is probably the most I could do for anybody.”

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    #Control #House #Empire #State
    ( With inputs from : www.politico.com )

  • Dining across the divide: ‘I think it’s an oversimplification to say the British empire was all wrong’

    Dining across the divide: ‘I think it’s an oversimplification to say the British empire was all wrong’

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    Oliver

    Oliver, 54, Birmingham

    Occupation Natural language processing engineer

    Voting record Oliver, who now has dual German/British nationality, has yet to vote in a general election in this country. He’s a member of the Green party and describes himself as: “Not a Corbynista, but left of Starmer.” In Germany, he voted for the Social Democratic party.

    Amuse bouche When visiting Madame Tussauds, Oliver was mistaken for a waxwork. “Someone came up to me and looked for a label, then got a bit of a shock when I moved.”

    Peter

    Peter, 58, Birmingham

    Occupation Software engineer; also runs an alternative clothing company

    Voting record Has voted for all three main parties, and the Monster Raving Loony party. In the next general election he’ll probably vote Labour, “on the basis that the Conservatives are inept”.

    Amuse bouche Peter has 11 children (three acquired by marriage), ranging in age from 19 to 42, and 11 grandchildren. “Names I can manage; birthdays, I have to keep a calendar.”

    For starters

    Peter We did a bit of small chat – what do you do, where are you from? He seemed quiet and reserved, but as soon as we started talking he relaxed. It was funny we were both in software.

    Oliver It was Indian street food, really nice. We shared starters – aubergine fritters and onion bhajis – then I had a dosa and he had grilled chicken.

    Peter and Oliver

    The big beef

    Peter The royal family was a clear area of disagreement. For me, it’s a positive. I like the tradition, the consistency, the fact that even though they don’t have direct executive power I’m sure they influence politicians. They are good diplomats and bring in tourist business.

    Oliver I’m a republican – the monarchy should be abolished. I don’t believe someone should be in a position of power by accident of birth. The Queen was very popular and probably did a reasonable job, but if you had someone totally unhinged as king or queen, there’s nothing you could do. Andrew is still eighth in the line of succession – if the others fell under a bus, would the royalists be happy with that?

    Peter I don’t think an elected head of state would work well – look at Trump.

    Oliver In Germany, the two chambers of parliament appoint a group to elect the president. You don’t get extremists because compromise is involved.

    Peter and Oliver

    Sharing plate

    Oliver He’s against Brexit, otherwise we would have had a screaming match. Leaving the EU has caused so many problems – it’s a no-brainer to be part of the biggest trade and political union.

    Peter I started with an open mind, but nobody could give me a reason for doing it that actually stood up to scrutiny. And it’s been an absolute car crash.

    Oliver My suspicion is that Russia had a hand in Brexit: splitting us off from the rest of Europe can only be of interest to someone like Putin. My parents don’t visit us any more because they don’t have passports.

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    Peter It was based on misleading populism. My clothing business was crashed by Brexit. I’m 100% against it.

    Peter (left) and Oliver

    For afters

    Oliver I feel that all ex-imperial countries – pretty much every country in Europe – have done horrendous things and they should apologise.

    Peter I would apologise if I – not my ancestors – had done something wrong. The idea that Britain should apologise for something that happened 200 or 300 years ago doesn’t compute.

    Oliver I feel strongly about this from a German perspective. I’m not responsible for the Holocaust – I was born 30 years after it happened. I am responsible for making sure it doesn’t happen again. I think Britain is very bad at dealing with its past. In Germany, some people say it’s going too far – digging out everything that went wrong and feeling guilty about it – but if you don’t, things will just get repeated.

    Peter I think it’s an oversimplification to say the empire was all wrong and we are all evil scum. Those countries benefited as well. We took our system of law into the world and the world is a better place for it.

    Peter (left) and Oliver

    Takeaways

    Oliver It was mostly details we disagreed on. It was interesting to talk about things you wouldn’t normally talk about with someone you don’t know. We got on well – we are both tolerant.

    Peter I get involved in online discussions, but they tend to be shouting: “You’re wrong.” So, I really enjoyed the chance to kick ideas around with someone who was intelligent and well read and prepared to argue his point.

    Peter (left) and Oliver

    Additional reporting: Kitty Drake

    Oliver and Peter ate at Zindiya in Birmingham.

    Want to meet someone from across the divide? Find out how to take part

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    #Dining #divide #oversimplification #British #empire #wrong
    ( With inputs from : www.theguardian.com )